Wildfires within the West have devastated a variety of marijuana farms in Oregon, Washington state and California, whereas an early freeze hit Colorado, threatening outside marijuana and hemp cultivation.
MJBizDaily takeaway: It’s too early to connect a greenback determine to the damages, however prices can be within the tens of millions. In Colorado, it’s doubtless the early chilly snap will disrupt the availability chain for THC and CBD extraction.
These extreme-weather occasions, which local weather scientists and meteorologists have been calling the “new regular” for a variety of years now, additionally must be heeded as an business wake-up name to the potential impacts of local weather change.
Outside hashish growers more and more should take inventory of climate dangers of their cultivation plans.
Illinois hashish licensing raises issues
Solely 21 candidates – who submitted greater than 300 functions mixed – certified for a closing lottery for 75 retail marijuana licenses in Illinois.
MJBizDaily takeaway: The scoring system favored candidates that certified with social fairness “standing” – and that’s who made the lower out of greater than 1,660 functions. Though some declare solely 13 of the 21 finalists are majority owned by minorities.
In a state lauded for its social fairness program, critics argue the licenses primarily will fall to a concentrated variety of huge companies.
Authorized challenges already are underway in regards to the transparency of the method – challenges that might delay the awarding of the permits in a brand new adult-use market that current medical hashish operators have managed since Jan. 1.
One federal lawsuit claims that the 75 retail licenses are value greater than $1 billion and that “many, if not most” of the businesses that can get them are owned by “politically related insiders.”
Legalization efforts face obstacles
Residents of Mississippi will take part in what is anticipated to be a shut vote for medical hashish legalization, whereas the Nebraska Supreme Court docket pulled the plug on a medical marijuana poll initiative in that state.
MJBizDaily takeaway: Each examples mirror the issue of legalizing medical marijuana in a few of the nation’s most conservative states.
In Mississippi, lawmakers have put forth a restrictive, competing measure that presents the next hurdle for the citizen measure to move. In Nebraska, legalization opponents have been capable of thwart an initiative on technical grounds.
Regardless of the obstacles, progress is being made, and the Mississippi citizen initiative, if it passes, could be business-friendly with a free-market strategy.
New CEOs sort out tough atmosphere
Canadian hashish operators Cronos Group and Aurora Hashish appointed new chief executives to assist navigate tough financial circumstances which have led to income pressures and big stock write-downs.
MJBizDaily takeaway: Toronto-based Cronos, like many hashish firms, went with a client packaged items veteran, Kurt Schmidt.
Schmidt, who has merger-and-acquisition expertise, will lead an organization that has a battle chest of money however should show it might execute its technique.
To this point, Cronos has failed to amass significant market share in Canada’s rising adult-use hashish business.
After failing to satisfy buyer and investor expectations, most Canadian hashish producers have changed their CEOs or chief monetary officers since legalization in late 2018.
Aurora isn’t any exception. The Alberta firm signaled to buyers that it expects to report declining quarterly income and write-downs of as much as 1.eight billion Canadian ($1.37 billion).
Germany faces doubtless harvest delays
Germany’s first home harvest of medical hashish flower is more likely to be delayed till no less than early 2021 due to the coronavirus pandemic.
MJBizDaily takeaway: The event will imply that firms rising medical hashish in Germany can be delayed in producing revenues from their operations, whereas the nation itself should proceed to depend on imports in the meanwhile.
Canadian-based Aphria and Germany’s Demecan each confirmed to Marijuana Enterprise Each day that harvests could be delayed till early 2021.
Canadian-based Aurora Hashish didn’t specify a timetable however mentioned it’s working towards cultivating medical hashish as quickly as potential.
Maryland nonetheless would possibly face range points
A six-month impartial investigation of Maryland’s 2019 medical hashish licensing spherical that was designed to spice up minority participation discovered no proof of bias or improper affect.
MJBizDaily takeaway: However the business nonetheless faces the notion of systemic limitations in a state with a big minority inhabitants. At the very least one unsuccessful minority applicant has an ongoing authorized problem in opposition to the state.
Lingering range points might make it tougher when lawmakers, together with the highly effective Black caucus, focus on adult-use legalization as anticipated within the subsequent yr or so.
Jeff Smith will be reached at [email protected]
Worldwide Editor Matt Lamers contributed to this report.