You’re reading this week’s edition of the New Cannabis Ventures weekly newsletter, which we have been publishing since October 2015. The newsletter includes unique insight to help our readers stay ahead of the curve as well as links to the week’s most important news. We post this and all of the newsletters on our website here.

Friends,

Canada legalized cannabis for adult-use in 2018, and a lot of investors thought they saw the future for the United States. It wasn’t so easy for the country to get the job done. Recall that Canada already had a federally legal medical cannabis program and that Justin Trudeau, the prime minister since 2015, had included adult-use legalization on his platform when he had run. The process was moving forward, but it almost failed on its “second reading” in the Senate in March 2018. The Cannabis Act passed in June 2018, and the industry has grown dramatically since the first legal adult-use sales in October 2018.

Legalization in the U.S. will be more challenging than it was in Canada. Unlike Canada, America has no federally legal medicinal program. Instead, it is legal under state law in the majority of states. Many of these programs are very different from one another. Of course, about half of the states have legal cannabis for adult-use, though these programs are not similar either. To legalize in the U.S. will create the challenge of coming up with a federal program, which will likely take a lot of time.

The federal illegality of cannabis in the U.S. has created a burden on the state-legal operators. After voters approved the first programs in the 2012 elections (Colorado and Washington), it took almost a year for the Obama Administration to react with the Cole Memorandum. Issued by the Deputy Attorney General, it conveyed that the companies that did not violate 8 specific rules would not be prosecuted by the federal government. That move in August 2013 encouraged me to open 420 Investor, and it excited investors.

Here we are, more than 10 years later, and our situation has improved a lot. Many Americans have access to state-regulated cannabis, which is a good thing! Still, though, the laws have not changed at the federal level, and this has left the industry at risk of the federal government moving away from its being okay with cannabis legalized on a state-by-state basis. When former Attorney General Jeff Sessions rescinded the Cole Memorandum in early 2018, cannabis investors and operators panicked. We have a presidential election this year, and this creates some uncertainty.

For cannabis to become legal in the U.S., Congress will need to legalize it. It has been very quiet on cannabis issues so far, though there are efforts on several fronts. One area of activity has been the SAFER Banking Act, which is in both the House of Representatives and the Senate. If this passes, it would be great for the consumers, as cash use would likely decrease. It could make things easier for cannabis operators, but it may not pass. Even if it were to become law, the largest publicly-traded companies would not benefit greatly, as they already have banking.

In addition to no federal medical cannabis program yet that could provide a basis for a full legalization, the political support is very mixed. Sure, several politicians in both Houses support legalization, but there aren’t any signs yet that this will happen. For cannabis to be legalized, 60 Senators would need to approve it as well as the majority of the House of Representatives. Unlike Canada’s election in 2015, the upcoming presidential election does not have any candidates making cannabis legalization a top issue.

For the cannabis industry to do better, full federal legalization is not necessary. As we pointed out more than a year ago, getting rid of the onerous 280E taxation for cannabis operators would be a very positive move. In late August, the Department of Health & Human Services recommended that the Drug Enforcement Agency move cannabis from Schedule 1 to Schedule 3, which would wipe out 280E. There is no timetable, and it’s not yet clear that the DEA will make this move.

The New Cannabis Ventures Global Cannabis Stock Index reflects the optimism of investors, and we think that they are being too aggressive. It is up 25.4% to 10.17 so far in 2024. Here is the past year, which includes the all-time low of 6.91 set in late October:

If 280E goes away, it will help the financially challenged industry. If it doesn’t, though, the American cannabis companies have cash flow and debt problems. The very largest MSO, Curaleaf, has $496 million in net debt and a tangible book value of -$748 million.

We discussed two weeks ago that the cannabis sector is not in a new bull market yet. The index has declined 0.5% since then. The chart now looks like a double-top, and we warn our readers again to not get overly excited by cannabis stocks. They are cheap, but things may not work out as well as investors hope or as quickly.

New Cannabis Ventures publishes curated articles as well as exclusive news. Here is some of the most important content from this week:

Financial Reports

To get real-time updates download our free mobile app for Android or Apple devices, like our Facebook page, or follow Alan on Twitter. Share and discover industry news with like-minded people on the largest cannabis investor and entrepreneur group on LinkedIn.

Use the suite of professionally managed NCV Cannabis Stock Indices to monitor the performance of publicly-traded cannabis companies within the day or over longer time-frames. In addition to the comprehensive Global Cannabis Stock Index, we offer the Canadian Cannabis LP Index, the American Cannabis Operator Index and the Ancillary Cannabis Index.

View the Public Cannabis Company Revenue & Income Tracker, which ranks the top revenue producing cannabis stocks.

Stay on top of some of the most important communications from public companies by viewing upcoming cannabis investor earnings conference calls.

Discover upcoming new listings with the curated Cannabis Stock IPOs and New Issues Tracker.

Sincerely,

Alan

Based in Houston, Alan leverages his experience as founder of online community 420 Investor, the first and still largest due diligence platform focused on the publicly-traded stocks in the cannabis industry. With his extensive network in the cannabis community, Alan continues to find new ways to connect the industry and facilitate its sustainable growth. At New Cannabis Ventures, he is responsible for content development and strategic alliances. Before shifting his focus to the cannabis industry in early 2013, Alan, who began his career on Wall Street in 1986, worked as an independent research analyst following over two decades in research and portfolio management. A prolific writer, with over 650 articles published since 2007 at Seeking Alpha, where he has 70,000 followers, Alan is a frequent speaker at industry conferences and a frequent source to the media, including the NY Times, the Wall Street Journal, Fox Business, and Bloomberg TV. Contact Alan: Twitter | Facebook | LinkedIn | Email

A new decision of an appeal in a trademark dispute, initiated by the RAW Rolling Papers manufacturer, has widespread implications for the rolling paper industry that dismiss the claim that rolling papers are “drug paraphernalia.” It’s also good news for non-cannabis-touching companies that want to protect trademarks.

BBK, manufacturer of RAW rolling papers, announced on April 9 that it won an appeal in its trademark dispute with Delaware-based Central Coast Agriculture, Inc. (CCA) as the Court sided with the popular rolling paper brand on its counterclaim.

According to the lawsuit, CCA’s employment of the “RAW GARDEN” name for its cannabis products, was an infringement of BBK’s “RAW”  trademark. In the past, several other brands have allegedly attempted to rip off the likeness of the RAW trademark in one way or another. RAW GARDEN applied for a trademark at the United States Patent and Trademark Office (USPTO), beginning in 2017 with subsequent applications.

The U.S. Ninth Circuit Court of Appeals issued rulings in two decisions on April 1 that could reshape the landscape of trademark law within the cannabis industry: The district court dismissed BBK’s false advertising claim and ruled in favor of CCA on BBK’s trademark claims. But the district court also ruled in favor of BBK on its counterclaim to invalidate several of CCA’s trademark applications and on CCA’s counterclaim to cancel BBK’s trademark applications for unlawful use.

“BBK is very pleased with the outcome of this appeal. Setting a precedent for the rolling paper industry, the appeals court rejected the suggestion that rolling papers are ‘drug paraphernalia’ and reaffirmed the trial court’s decision that BBK’s RAW^® rolling papers and other RAW^® smoking products are not prohibited by the Controlled Substances Act,” a spokesman for BBK said in an April 9 press release.

“It is equally important that the appeals court confirmed the trial court correctly invalidated the trademark applications improperly filed by CCA,” the spokesman continued. “After years of pursuing efforts in and out of court to protect consumers from being confused and misled by CCA’s unauthorized use of the RAW^® name for CCA’s cannabis products, BBK looks forward to a final resolution after a trial to a jury.”

RAW Black rolling papers were voted the best by the Daily High Club, as well as upvoted to the top in the comments on a Reddit thread, “What papers do y’all generally consider the best?”

Benzinga reports that the rulings could “reshape the landscape of trademark law within the cannabis industry.” Read the appeal ruling in its full text here.

The appellate court’s rulings sent BBK’s trademark infringement claim against CCA back to the district court for a full trial.

BBK representatives say the ruling protects consumers from confusion and misleading practices associated with the unauthorized use of the “RAW” name on rolling paper and other cannabis-adjacent products.

BBK’s team is preparing to present its case to a jury for a final resolution, however this ruling has widespread implications on how lawsuits in the industry will play out.

Not RAW Rolling Paper’s First Rodeo

There are other legal precedents for alleged trademark infringements regarding RAW Rolling Papers. RAW also won a game-changing lawsuit in 2023 when a rolling paper brand Republic Tobacco appeared to rip off RAW’s signature logo design with similarities in color, shape, and so forth.

RAW (BBK/HBI) issued a statement about the final resolution of the seven-year court battle with Republic Tobacco which had brought a series of lawsuits against HBI International, the company that owns the RAW brand.

The ruling on June 5, 2023 finalizes that jury’s decisions after a weeks-long trial, ruling that Republic Tobacco willfully infringed on RAW’s copyright and trade dress, and awarded to HBI damages of more than $1 million. 

When it includes a prejudgment interest award, the Court ordered Republic to pay RAW nearly $1.5 million in total compensation. Today’s conclusion came after both sides agreed on legal fees that RAW will pay to Republic based on only one of Republic’s multitude of claims.

In that case, the judge ruled that “Republic requests the disgorgement of every cent of profit from HBI’s RAW brand during that time period… This extraordinary request, however, is not supported by adequate evidence, nor is it appropriate considering the other factors of the case.”

RAW has also been involved in advocacy efforts. For instance in August 2023, the brand  announced a donation of $100,000 to The JUSTÜS Foundation, a 501c3 non-profit organization that is dedicated to facilitating the entry of legacy cannabis operators to the legal cannabis market. The RAW Seeds Fellowships aim to provide opportunities to legacy cannabis operators to navigate the legal cannabis market.

The new ruling adds another dimension to the protections that RAW Rolling Papers and BBK are entitled to, pending the appeal’s final ruling.

The ritzy, upscale Los Angeles neighborhood Bel Air will welcome a new arrival: a cannabis store, run by rapper Xzibit, who proudly represents the West Coast. It’s the rapper’s latest foray into the cannabis sector after launching a cannabis-themed podcast and a cannabis brand Napalm.

Xzibit’s West Coast Cannabis (XWCC) opened its doors last month but operators want to kick off with a bang and some opening ceremonies. The store is located off the 405 freeway on Sepulveda Blvd., on the second floor of a building. The store will celebrate the launch on April 28 with a grand opening and a 4:20 p.m. ribbon-cutting ceremony, followed by a block party.

The store opening gives Xzibit the distinction of being the sole adult-use cannabis retail licensee in Bel Air, Benzinga reports.

“The West Coast is more than just a term that describes where we live, it stands for the culture of everything that represents us. From entertainment to our beloved sports teams, our car culture, our neighborhoods, and beaches, we are proud citizens of this community and XWCC is a celebration of all of the above,” Xzibit stated. ‘We are honored to be able to open our doors in such a special location and invite everyone to come celebrate the West Coast along with us.”

The University of California, Los Angeles (UCLA) is not far from Bel Air, and Xzibit’s new store has a unique approach. In a press release, XWCC announced that UCLA students are invited to try out the new cannabis store, with the promise of a 60% discount on premium cannabis products, which demonstrates XWCC’s commitment to directly helping the local community.

If anyone needs a discount, it’s students with the burden of tuition and living expenses—especially students in California.

“Nestled in the iconic neighborhood of Bel Air, Los Angeles, XWCC is more than a premium cannabis dispensary—it’s a culmination of a journey marked by passion, commitment, and excellence,” the website reads. “Founded by renowned artist and entrepreneur, Xzibit, XWCC is a reflection of his life’s story—from his humble beginnings to his rise as a West Coast legend in music, entertainment, and cannabis. Xzibit’s career, marked by groundbreaking music and creative ventures, has always been driven by a deep commitment to authenticity and innovation. His journey is infused into the ethos of XWCC.”

XWCC represents the best of the West when it comes to quality herb.

Recently the rapper also launched Lasagna Ganja, a weekly podcast about the cannabis sector. He co-hosts the podcast, supported by DCP Entertainment, with cannabis advocate and influencer Tammy The Cannabis Cutie.

Last year, Flora Arbor LLC, a licensed craft grow based in Elgin, Illinois, announced an exclusive licensing and distribution agreement with Napalm, a premium cannabis brand founded by hip-hop artist, actor, and entertainer Xzibit. (Some people didn’t like the name because it was named after a weapon of war with a dark past.)

Xzibit and Cannabis

In the most recent High Times interview with Xzibit, he explained how cannabis can help replace things like liquor. It’s a testament that the rapper’s wilder, earlier days are now balanced with a healthier substitute like cannabis.

“I don’t get as shit-faced as I used to,” Xzibit told High Times in 2019. “I don’t bounce back like I used to, so I had to slow that shit down. It gets in the way of your productivity.” The rapper grew up in New Mexico before moving on to the coast in Los Angeles, where he blew up. He was proud to announce the store opening on 

“Get ready to elevate your experience! XWCC is opening its doors on March 17th!” Xzibit posted on Instagram last month. “Whether you’re a seasoned connoisseur or new to the scene, we’ve got something special just for you. Swing by and discover a curated selection of premium products. Mention @935kday and receive a special treat!”

As a rapper, Xzibit joined Dr. Dre and others on the “Up in Smoke Tour” and he hosted MTV’s popular Pimp My Ride. It was more or less an all-star lineup of mostly West Coast icons.

“It was the first time that my music had been broadcast and pushed on a national or on a global level, alongside iconic acts such as Dr. Dre, Ice Cube, Eminem and Snoop Dogg, and you know, all of us coming up under that 2001 [Dr. Dre’s 1999 solo album] umbrella,” Xzibit said. “I was exposed to millions and millions of people, and now you have the opportunity to showcase your talent at the highest point of the pendulum.”

Xzibit’s new foray with his cannabis store in Bel Air shows that he’s not going anywhere and will remain a fixture in the cannabis market.

A 73-year-old American man was arrested in Colombia this week for leading “cannabis tours” in his home.

Per CBS News, citing Colombian law enforcement, the unidentified man “advertised on social media and a website for foreigners to visit his house in Sabaneta, a town south of the city of Medellín in the northwestern part of the country.”

CBS said that the man “distributed flyers advertising ‘Cannabis Farm Tours’ given by ‘Cannabis Jimmy.’” 

“The materials said ‘free samples’ would be distributed during the tours. Approximately 2-8 people were on each tour, and reservations were required. The tours lasted 2-3 hours during which the man taught visitors ‘the process of planting, caring for, harvesting, and maintaining this plant,’ police said. He also sold tour-takers marijuana for $20 a gram,” the outlet reported. 

“Police said they confiscated 1,380 grams of marijuana during the arrest. They did not identify the man, only saying he is an American.”

Medical cannabis and industrial hemp are both legal in Colombia, but the country continues to impose a ban on recreational marijuana. 

But as CBS notes, the country has “long struggled to control the trafficking, manufacturing and/or possession of narcotics within its borders.”

“Late last year, the Colombian Navy intercepted a shipwrecked boat carrying 33 kilograms of cocaine and 744 kilograms of marijuana,” the network said. “The South American nation is the world’s largest exporter of cocaine – almost 90% of the cocaine sold in the United States each year arrives from Colombia.”

Lawmakers in Colombia considered a proposal last year to legalize adult-use marijuana and commercial sales. 

But in December, members of the Colombian senate “rejected the proposed legislation aimed to legalize adult-use cannabis in the country,” according to Forbes.

“The proposed legislation faced a setback in the Senate on December 12 during the plenary session in its attempt to regulate the adult use and commercialization of cannabis. During the plenary session, a proposal to archive the bill submitted by Senator Karina Espinosa from the Liberal Party right before the formal debate began received 45 positive votes,” Forbes reported at the time.

“Following the vote, Senator María José Pizarro, who spearheaded the project, spoke before the plenary session. She vehemently criticized the senators who supported archiving the project, attributing blame to the Senate for enabling organized groups to profit and condemning youth and consumers to the influence of illicit traders and drug traffickers.”

A different legalization proposal met the same fate in June, when the Colombian Senate voted down a proposal to allow the sale of weed.

Colombian President Gustavo Petro, who was elected in 2022, has spoken in favor of legalizing and commercializing marijuana in the country. 

In October, Petro recounted a visit to New York City, where he smelled marijuana burning wherever he went.

“Marijuana is sold today in Times Square,” Petro said, as quoted by Marijuana Moment. “It smelled on all the streets, all the way around the corner, and they sold it…like any other product. I suppose they charge taxes and that New York City or the state of New York lives partially from them.”

Petro, Colombia’s first leftist president, went on to criticize the United States for its role in the drug war.

“That’s where the war on drugs began,” Petro said, according to Marijuana Moment. “How many people have been imprisoned? How many people have died? Because undoubtedly illegality brought violence.”

As one of the world’s leading producers of the coca bush, Colombia has long been associated with cocaine trafficking.

According to the United Nations Office on Drugs and Crime, an estimated “63,660 of the country’s households were involved in the cultivation of that illicit crop.”

“This has led the Government and the international community to design an innovative programme that also addresses security issues. In 2012, the area under coca crop cultivation in Colombia fell by a quarter to 48,000 hectares (ha), down from 64,000 ha in 2011,” the UN said. 

“Experience has shown that it is not enough to eradicate illicit drug crops to bring about a lasting solution to the problem. This is why UNODC supports the Government’s efforts to assist farmers who give up cultivating coca bush through alternative development initiatives such as the Forest Warden Families Programme and the Productive Projects Programme. These initiatives ensure that former coca bush farmers have legal and adequate incomes. These rural activities are integrated into broader socio-economic development strategies and benefit rural, indigenous and Afro-Colombian populations.”

The United Nations estimates that “the area under coca bush cultivation in Colombia has declined by 15 per cent from 73,000 hectares in 2009 to 62,000 hectares in 2010.” 

“During the last decade (2000 to 2010), cultivation levels have been reduced significantly by 62 %. These declines signal an advance of sustainable livelihood programmes and are due mainly to a combination of alternative development and law enforcement measures,” the report said.

Researchers in the United Kingdom have detected the presence of the powerful sedative xylazine in cannabis vapes and illicit pills taken to treat pain, insomnia and anxiety, putting people who use the tainted drugs at risk of overdose or other serious health consequences. The prevalence of xylazine has been growing since 2022, according to researchers at Kings College London, when the first overdose death from the drug in the U.K. was identified.

 Xylazine, a powerful non-opioid sedative commonly used as a veterinary tranquilizer, has been found in the drug supply in the United States for years. It is frequently mixed with heroin or fentanyl and has been implicated in thousands of overdose deaths nationwide, according to data from the Centers for Disease Control and Prevention. Although it is commonly found in the illicit drug supply, xylazine has not been approved for use in humans by the U.S. Food and Drug Administration.

The drug is a powerful sedative that can cause overdose and death, often when mixed with other drugs. Additionally, injecting the drug can cause skin ulcers and resulting complications including infections that sometimes necessitate amputation.

Xylazine Found in Vapes and Illicit Pills

In the U.K., researchers have found xylazine in THC vapes and counterfeit prescription drugs including codeine, alprazolam (Xanax) and diazepam (Valium) tablets, according to a study published on Wednesday. The research identified xylazine in samples collected from 16 people in the U.K., including 11 who had died.

“Xylazine has already penetrated the U.K. illicit drug market and is not limited to heroin supplies. Urgent action is needed to protect both people who use heroin and the wider population of people who use drugs from its acute and chronic health harms,” the researchers wrote.

In nine of the 11 confirmed deaths, xylazine was found in combination with an opioid such as heroin or fentanyl. Researchers say the lack of such a combination in the remaining two deaths suggests that xylazine may have been part of an illicit tablet or vape.

“This is cause for alarm as a much wider population of people who use drugs beyond heroin users will be exposed to its harms,” said Dr. Caroline Copeland, senior author of the study, told The Guardian.

“We also know that most people who buy heroin will not intend to buy xylazine and this combination increases the risk of overdose,” Copeland added. “Xylazine was designated an ‘emerging threat’ to the United States and this public health threat is a growing concern for the U.K.”

Copeland added that the total number of deaths in the U.K. is probably even higher because xylazine stays in the body for only a short time. Since August 2023, the last death covered by the research, “we’ve had several more deaths so it is only continuing and increasing,” the researcher said.

Dr. Benjamin Caplan, M.D., the chief medical officer at cannabis consultations provider CED Clinic and the author of The Doctor-Approved Cannabis Handbook, says that the “discovery of xylazine in counterfeit codeine, diazepam (Valium) tablets, and recently within THC vapes — particularly those sourced from home-grown suppliers — is particularly troubling.”

“These counterfeit products, often look like products sold from reputable sources, and so they may appear safe, but in fact may pose a grave threat to unsuspecting consumers,” Caplan, who was not involved in the U.K. study, wrote in an email to High Times. “My professional experience includes dealing with the aftermath of such substances, including patients who have suffered or even lost loved ones to adulterated products that they purchased outside of regulated dispensaries, which are closely monitored to avoid any such contamination.”

A U.K. government spokesperson said that officials “are aware of the threat from xylazine and are determined to protect people from the threat posed by this drug and other illicit synthetic drugs.”

“We will not hesitate to act to keep the public safe,” the spokesperson said. “Following advice from the Advisory Council on the Misuse of Drugs, we intend to make xylazine a class C drug meaning anyone supplying this substance will face up to 14 years in prison, a fine or both.”

But study co-author Dr. Adam Holland, a co-chair of the drugs special interest group at the University of Bristol, said the increase in drug contamination and overdose deaths is a clear sign that punitive drug laws are not working.

“We need to expand the range of harm reduction interventions available for people who use drugs, including drug checking and overdose prevention centers, to give them the opportunities they need to stay safe,” Holland said.

The Alabama Senate Agriculture, Conservation, and Forestry Committee (SACFC) recently passed a bill to finally get the state’s medical cannabis program rolling.

Sen. Tim Melson is the legislator who sponsored Senate Bill 46 three years ago, which eventually was passed into law as the Medical Cannabis Act 2021-450 after Gov. Kay Ivey signed it in May 2021.

Most recently, Melson introduced Senate Bill 306 on April 9 to push the program forward after years of delays. “We got this done in three years,” Melson said of his legislation. “It’s taken this long to get this to the patients who are out there that need it, and it’s just time to correct this course and get them something to help them in their illness.”

According to Alabama Daily News, Melson believes that the program needs to restart in order to correct various issues. “We tried to find a solution to getting a product to market, but this goes back to the old joke: you got one job, and you blew it,” said Melson. “The commission had one mission, and they have not executed it. I think in the best interest of this program, we need to start from scratch, we need to throw [out] every license applicant that received [a license]. This bill just wipes the slate clean.”

Currently, the Alabama Medical Cannabis Commission (AMCC) can only license five “integrated facility licenses” to cultivate, process, and sell medical cannabis. According to The Birmingham News, more than 30 companies have applied for a license.

If SB-306 is passed, it would create a three-step process to approving licenses. First, a five-member panel (appointed by the Alabama Securities Commission) will decide if an applicant is eligible for a license. This includes basic information such as residency verification, background checks, business plan, and proof of capital.

Second, the review panel will determine if the applicant can get cultivation and dispensing operations going within 60 days of receiving a license, and also must be able to dispense cannabis products to five sites within six months of receiving a license. All cannabis must be grown “using artificial light exclusively or as a supplement to natural sunlight,” and cannot be grown outdoors or directly in the ground. Other criteria such as a structure plan and security detail. 

And finally, the AMCC will provide scores to rank which applicants are most eligible for a license.

Additionally, only applicants that applied for an integrated license prior to December 2022 would be eligible under SB-306.

So far within the past 10 months, the AMCC has only awarded three licenses. Part of the reason for this includes procedural problems, as well as ongoing lawsuits that have prevented licenses from being granted.

Even still, some cannabis business owners aren’t supportive of Melson’s bill. Specialty Medical Products CEO Ray French told The Birmingham News that SB-306 is a setback. “Once the commission took the time to get to know the candidates and actually vet them, see them and understand who they are, they made a decision based on all of the information given to them and picked who they thought were the best candidates to move this needle forward,” French said.

French’s company applied and failed to receive a license during the first two rounds of license awards in June and August 2023, but was approved in December 2023. However, none of the chosen applicants have actually received a license due to the ongoing lawsuits, which have placed license approval on hold. “They picked what they felt like were the most qualified candidates,” said French. “And to start over to favor other candidates for whatever reasons and to take away all the control from the commission members themselves is only a setback. It is an unnecessary do-over and a setback and is going to delay the program to the point where it may never take off.”

Attorney Will Somerville, representing Alabama Always, which has not yet been approved for a license, said that his client is more supportive of the idea. “Senator Melson did a remarkable job in 2021 helping Alabamians get access to cannabis for their medical needs,” said Somerville. “The Cannabis Commission has had three years to get this program going and it’s still dead in the water. The Commission did not follow the law and the Courts halted the process. Senator Melson has stepped up again this Session with a Bill that will break the logjam and get this medicine to folks that need it.”

Aside from the SACFC approving SB-306, it also approved Senate Bill 276 (introduced by Sen. David Sessions) as well. If passed, it would address various AMCC licensing issues, such as increasing the number of integrated licenses to up to 10. However, The Birmingham News reported that those who spoke at the recent meeting opposed SB-276.

In response to Melson’s bill, Sessions explained that they both have similar goals. “I know where your heart is and I think we’re aligned,” Sessions commented. “Our main goal is to try and get this out of court and get it up and running.”

Senate Majority Whip Dick Durbin introduced Senate Resolution 629 on April 8 which condemns the “arbitrary arrest” of U.S. citizens in Russia, and calls for detained or imprisoned U.S. citizens to be released.

The introduction of SR-629 was timed with the one-year anniversary of Evan Gershkovich, a Wall Street Journal correspondent who was imprisoned in Russia for one year. He was arrested in March 2023 on allegations of espionage.

“It is outrageous that Russia, a permanent member of the United Nations Security Council, is holding hostage American citizens. It is the act of a desperate rogue regime, similar to the criminal actions of countries like Iran, North Korea, and Venezuela,” Durbin wrote in the resolution. “Today, I am introducing a resolution condemning Russia’s hostage-taking, calling for the immediate release of these hostages and urging the administration to consider ‘wrongfully detained’ status. And, to those detained and their families, I want you to know you are not forgotten. We will continue to advocate for your release.”

In a separate press release, Durbin criticized both Russia and Vladimir Putin. “Putin’s cruelty and cynicism were on full display when he decided that he would invade Ukraine and bring it back into the Soviet orbit,” Durbin stated. “He tried to silence anyone in Russia who might dissent from his strategy, including reporting on any Russians who might have the audacity to suggest there should be democracy or freedom in their country, which is why Wall Street Journal reporter Evan Gershkovich is in jail.”

Through SR-269, Durbin and 20 other cosponsors are calling for immediate action. “By introducing this resolution, we’re yet again bringing to light the cruelty of the Russian government.,” Durbin said. “As fellow Americans, we demand the release of all American citizens who face arbitrary arrests by the Russian government.”

Virginia Sen. Tim Kaine is one of the primary cosponsors speaking out for all detained citizens, but especially one who is a resident in his own state. “Russia’s arrests of journalists, many of which are U.S. citizens, are disturbing reminders of the lengths Vladimir Putin will go to in order to suppress peoples’ most basic freedoms,” Kaine said. “I urge the State Department to utilize every tool at our disposal to bring our fellow Americans home, including Virginian Vladimir Kara-Murza.”

Vladimir Kara-Murza was detained in Russia in October 2023, and later sentenced to 25 years in a Russian penal colony in April 2024. Durbin worked with Evgenia Kara-Murza, Vladimir’s wife, to showcase the unjust motives of the Russian government. “It was my honor to join Evgenia Kara-Murza to speak out against the detention of her husband Vladimir, a Putin critic who was poisoned twice, and reflect on his fight for democracy,” Durbin wrote on X.

Pennsylvania Sen. John Fetterman is another main cosponsor who provided a statement about Marc Fogel, who was arrested in August 2021 for possessing half an ounce of medical cannabis in his bag. “I’m proud to stand with my colleagues today and again call for the immediate release of all Americans arbitrarily detained in Russia, including Marc Fogel, a Pennsylvanian,” Fetterman explained. “Marc is a history teacher who dedicated the last 35 years of his life to teaching young people. When he returned for his 10th and final year teaching in Russia, Marc was detained for carrying a small amount of medical marijuana, which was prescribed by his doctor.”

Fetterman calls Fogel’s 14-year large-scale drug trafficking sentence “bogus.” “A fourteen-year sentence is absurd—even by Russian standards,” Fetterman said. “The bottom line is that Marc’s punishment simply does not match the crime. We must bring Marc, and all other unjustly detained Americans, home.”

SR-269 also cites many other examples of Russian imprisonment for citizens including Paul Whelan, journalist Alsu Kurmasheva, and Ksenia Khavana. Durbin also criticized the death of Alexei Navalny in February. Navalny had politically opposed Putin for over 10 years, but his recent death is being listed as “sudden death syndrome.”

Many of these cases echo that of WNBA athlete Brittney Griner, whose harrowing experience being detained in Russia for being in possession of cannabis vape charges in March 2022 captured nationwide attention. She was later released in December 2022 in a prisoner exchange that freed Russian arms dealer Viktor Bout.

One year after Griner’s release, she announced that she made a deal with ESPN Films and Disney to create a documentary about her story. “The last two years have been the most harrowing, transformative and illuminating period of my life, and I am grateful to be in a place now to share my story with the world,” said Griner in December 2023. “I’m proud to partner with ESPN and Disney to share this very personal story because of its incredible potential to inspire hope around the world and their proven ability to do just that.”

Griner was supported by other famous athletes such as LeBron James and Dennis Rodman, in addition to many legislators and President Joe Biden as well.

A handful of CBD and cannabis companies turned out to be figments of the imagination as a con artist successfully duped investor after investor, but his conning spree has come to an end.

A California man pleaded guilty April 5 to a slew of federal criminal charges for swindling investors out of $18.4 million. He conned several investors—all as he was already completing a sentence for prior criminal charges—by inventing companies that he claimed invested in hemp farms and cannabis-infused retail products. He also claimed to run a sham bottling business for CBD-infused products. The bogus businesses turned out to quickly fall apart.

People magazine reports that Mark Roy Anderson, 69, pleaded guilty to two counts of wire fraud, according to an announcement from the U.S. Attorney’s Office, Central District of California.

Anderson took the plea agreement, and admitted to engaging in two separate schemes that swindled investors. His scheme kicked off right after he was released from federal prison while he was on home confinement and supervised release. Police say Anderson has been conning people since the 1990s but moved into the cannabis sector where there was a lot of loot to be gained.

From June 2020 to April 2021, Anderson convinced investors to fund his company Harvest Farm Group, to harvest and process hemp grown on his farm into medical-grade CBD isolate. 

“Anderson convinced investors to invest in Harvest Farm Group by falsely representing that, through the company, he owned and operated a hemp farm in Kern County,” the report reads. “He also lied that had already completed successful and profitable harvests of hemp from the farm. He also falsely said he was using his own machinery and equipment to convert the hemp into CBD isolate and Delta 8, a psychoactive substance that, like CBD isolate, could be used in consumer products ranging from olive oil to body cream.”

Anderson weaseled his way out of skeptical investors and claimed that past fraud convictions were not in fact him. When investors demanded money, Anderson falsely told them that sales of products derived from hemp grown at the farm had been delayed because of the COVID-19 pandemic.

In another scheme, which ran from April 2021 to May 2023, Anderson duped investors by soliciting money for Bio Pharma and Verta Bottling—two more sham companies—by claiming that these businesses successfully manufactured, bottled, and packaged commercial products.

Specifically, he claimed Bio Pharma manufactured and sold infused products such as CBD-infused avocado oil, olive oil, pain cream, gummies, tequila, and chili oil. Anderson also claimed that Verta Bottling manufactured and sold beverages and a variety of food products.

“Anderson falsely stated that his bottling companies owned and possessed millions of dollars’ worth of assets, including—in Bio Pharma’s case—hemp biomass, CBD isolate, CBD oil, and—in Verta Bottling’s case—manufacturing equipment and an assignable lease for a warehouse to manufacture and sell its products,” the announcement reads.

How did he do this? Anderson carefully fabricated fake legal and business documents, which included fake purchase order contracts that he claimed showed agreements with third-party companies to purchase tens of millions of dollars’ worth of products manufactured by his bottling companies. Anderson also provided victims with fake samples of products he claimed that he manufactured by his bottling companies.

Investors have been warned about bogus cannabis companies before.

In 2019, Massachusetts Secretary of the Commonwealth William Galvin issued a warning to potential cannabis industry investors to be wary of scams and unscrupulous operators after filing fraud charges against two entrepreneurs in the state. In an alert released by Galvin’s office, the secretary urged investors to approach offers for unregistered securities from unlicensed sellers with caution, noting that the cannabis industry is not monitored by federal regulators or state-chartered banks.

“No one regulator can police this marketplace,” Galvin said in the statement. “My Securities Division intends to scrutinize these offerings to proactively prevent investor harm.”

Celebrities like Tom Hanks and Sacha Baron Cohen have been targets of fake CBD or cannabis companies, sometimes in the form of fake endorsements or misuse of their likenesses. Sacha Baron Cohen’s massive $9 million lawsuit was filed against a dispensary that ran a billboard ad with his image without permission, but the actor and plaintiff have reached an agreement to drop the lawsuit.

According to court documents filed on July 12, 2021, Sacha Baron Cohen filed a $9 million lawsuit against Somerset, Massachusetts-based Solar Therapeutics, a dispensary, for running a billboard ad with his image without his permission.

Solar Therapeutics erected a billboard on an interstate highway in Massachusetts that features a picture of Baron Cohen as Borat, with his thumbs up and the words “It’s Nice!,” one of Borat’s catchphrases.

Weed is finally legal in Germany, but it may still be verboten at one of the country’s signature events. According to Forbes, the “German federal state of Bavaria is considering the possibility of restricting cannabis use at the famous Oktoberfest following the legalization of cannabis for personal use.”

“Bavaria government aims to restrict public spaces for consuming cannabis at events like Oktoberfest by establishing cannabis-free zones, as first reported by DPA (German Press Agency),” Forbes reported. “Oktoberfest in Munich is the world’s largest beer festival, featuring traditional Bavarian music, food, and the consumption of about 6 million litres of beer. The festival spans a two-week period, culminating on the first Sunday in October.”

Earlier this month, on the first day of April, German citizens celebrated the end of pot prohibition, which made it the largest country in Europe to pass legalization. It is the third country in the European Union to legalize weed, following Malta and Luxembourg.

Under the law, Germans aged 18 and older are legally permitted to have up to 25 grams of weed and public and up to 50 grams at home.

The law also permits so-called “cannabis clubs,” which will open for business on July 1. Those clubs will allow up to 500 members to personally grow cannabis, but the law does not permit commercial weed sales.

The Associated Press has more background on the new cannabis law:

“Individuals would be allowed to buy up to 25 grams per day, or a maximum 50 grams per month — a figure limited to 30 grams for under-21s. Membership in multiple clubs would not be allowed. The clubs’ costs would be covered by membership fees, which would be staggered according to how much marijuana members use. The government plans a ban on advertising or sponsoring cannabis, and the clubs and consumption won’t be allowed in the immediate vicinity of schools, playgrounds and sports facilities. An evaluation of the legislation’s effect on protection of children and youths is to be carried out within 18 months of the legislation taking effect…The plan falls significantly short of the government’s original ambitions, which foresaw allowing the sale of cannabis to adults across the country at licensed outlets. The project was scaled back following talks with the European Union’s executive commission. Parliament’s upper house, which represents Germany’s 16 state governments, could in principle delay the legislation, though it doesn’t formally require the chamber’s approval. Bavaria’s conservative state government has said it would examine whether legal action against the liberalization plan is possible. The legislation is one of several that Scholz’s coalition, which has since become highly unpopular as a result of economic weakness and persistent infighting, pledged when it took office in 2021. It has eased rules on gaining citizenship and ended restrictions on holding dual citizenship. Among other policies, it also plans to make it easier for transgender, intersex and nonbinary people to change their gender and name in official registers.”

Lawmakers in Germany approved the measure in February.

“We have two goals: to crack down on the black market and improved protection of children and young people,” Health Minister Karl Lauterbach said at the time.

As Forbes reported, following the launch of legalization on April 1, “states like Bavaria are attempting to restrict consumption in public spaces despite the new legislation allowing consumers to use cannabis following specific rules.”

“Although no final decision was made at the cabinet meeting on Tuesday, as specified by the Head of Chancellery and State Minister of Bavaria Florian Herrmann, Bavaria’s ministries are currently exploring additional ‘restriction options’ for cannabis. The aim is to make cannabis consumption less appealing, with a decision likely to be made next week,” the outlet said. 

“On March 25, one week before cannabis officially became legal for personal use, Bavaria released a catalog of fines related to cannabis consumption in public spaces, as the authorities in the federal states are now responsible for imposing fines for violations of the law, establishing fines of up to €1,000 ($1,085) for consuming cannabis in unauthorized public spaces or in the presence of children or young people, and up to €30,000 ($32,564) for activities related to advertising and distributing cannabis,” the outlet continued. “In addition to Oktoberfest, where beer gardens and outdoor areas of restaurants might be off-limits for cannabis, local authorities are also evaluating implementing this restriction in Englischer Garten (English Garden), one of Germany’s most renowned and largest public parks.”

In a post on X on Tuesday, Markus Söder, Minister-President of Bavaria and Leader of the Christian Social Union in Bavaria (CSU), said that Bavaria would not become a “stoner’s paradise.” Söder opposed cannabis legalization, a view that was shared by conservatives in Germany’s parliament. 

“You’re asserting here in all seriousness as health minister … that we will curb consumption among children and young people with the legalization of further drugs,” conservative lawmaker Tino Sorge said to Lauterbach during the debate in parliament earlier this year. “That’s the biggest nonsense I’ve ever heard.”

The government of the United Kingdom has approved changes to the rules governing industrial hemp licenses designed to make it easier for farmers to grow the crop. The new regulations will support regulated farmers who grow hemp and encourage new investment in the industry while continuing to discourage illegal drug uses of the plant, government officials said this week.

In the U.K., industrial hemp (cannabis with less than 0.2% THC) can be legally grown outdoors by licensed farmers for the production of fiber and seed. Under the current rules, initial hemp cultivation licenses are issued for three growing seasons for a fee of £580 (about $727). License renewals cost £326 (approximately $409) and are also good for three years.

Under the new rules, which are slated to go into effect for the 2025 growing season, the length of time a hemp license is valid will be extended to six years. The amended regulations also allow farmers to apply for a hemp cultivation license with a deferred start date of up to one year, giving new growers more time to prepare for the new crop.

The new rules, which were developed in collaboration with experienced hemp growers, will also allow farmers to grow hemp anywhere on a licensed farm instead of limiting production to specific parcels of land. The change will give growers more flexibility in managing their operations and allow them to implement hemp into a crop rotation plan for their farms.

A Sustainable Crop for U.K. Farmers

The number of licensed hemp growers in the U.K. has increased significantly over the past 10 years, from only six in 2013 to 136 in 2023. Farming Minister Mark Spencer said in a statement that the new rules will give British farmers more opportunities to succeed by growing hemp.

“Industrial hemp has huge potential across the UK to unlock new revenue streams, expand our bioeconomy without permanently removing land from food production, and bring wider environmental benefits,” said Spencer, according to a report from FarmingUK.

“The licensing changes recognize industrial hemp as a field-grown agricultural crop and will enable more farmers to add hemp to their crop rotations,” he added.

Industrial hemp licenses do not allow farmers to utilize hemp flowers or leaves. Growers who wish to do so can obtain cannabis cultivation licenses, which allow for the indoor production of the plant for medicinal purposes. The dual licensing scheme is designed to allow for the cultivation of cannabis and hemp for permitted purposes while preventing drug misuse and protecting public safety.

“This government will always seek to reduce unnecessary regulatory burdens placed on businesses so that they can flourish and grow,” said Chris Philp, minister for crime and policing, the Farmers Guide reported on Wednesday. “The changes outlined today will help farmers and manufacturers in the UK to fully realize the economic potential offered through the safe and legal cultivation of hemp.”

The adoption of the new rules was supported by groups including the National Farmers Union (NFU). Jamie Burrows, chair of the NFU Combinable Crops Board, said in a statement that hemp agriculture can benefit farmers and the environment.

“It is one of the most sustainable crops farmers can grow, is a really good crop for capturing carbon from the atmosphere, has little to no input requirements and also has the ability to diversify farming businesses and crop rotations, especially when other break crops like oilseed rape are becoming more difficult for British farmers to grow due to increased pest pressure,” Burrows said this week.

The U.K. government has also requested that the Advisory Council on the Misuse of Drugs provide guidance on whether the permissible amount of THC in industrial hemp can be raised from 0.2% to 0.3%, the standard in the United States, Canada, China and the European Union. 

The government also noted that it expects the nation’s police to continue to take a zero-tolerance approach to cannabis possession. Under U.K. drug laws, possession of cannabis can be punished by a fine and jail sentence of up to five years, with harsher sentences of up to 14 years behind bars for cannabis distribution convictions.