Debt financing eclipses equity in US marijuana cultivation and retail funding:
Capital raises in the U.S. marijuana cultivation and industry are down nearly 65% this year versus 2021. But lower stock prices and more creditworthy cannabis companies. This means debt financing is now the preferred method to raise funds for the first time in years.
President Joe Biden is taking his first major steps toward decriminalizing marijuana. Fulfilling a campaign pledge to erase prior all federal offenses and possession. Convictions and beginning the process of loosening federal classification of the drug.
This week, Politico published an article that looks at cannabis legislation efforts across multiple states in the US. Thus far, 19 states have embraced full-scale cannabis Legislation with enacted recreational cannabis laws. While another 19 states have moved forward with medical cannabis platforms. With most state legislative sessions coming to a close this week, November’s ballot initiatives remain the key vehicle to push cannabis reform in potentially transitioning states. Below we highlight reform efforts undertaken in states through 2022:
In January, the state passed medical marijuana reform after seeing efforts fail during the 2020 referendum. The state is now amidst its application process for patients and businesses, with sales potentially starting later this year.
Rhode Island. This past May, Rhode Island became the 19th state (and only state in 2022) to pass adult-use referendums through its legislature. As structured, the bill allows for 33 dispensaries in six regions, with sales expected to kick-off on December 1st.
Maryland voters are set to vote on a ballot initiative calling for adult-use reform in the state later this year. The measure would require the legislature to pass a framework for the proposed recreational market, likely resulting in first sales in 2024, if enacted.
In 2020, South Dakota voters approved legislation to enact both medical and recreational markets through the state ballot measures. However, the state supreme court later struck down the referendum as unconstitutional, leaving South Dakota residents with only a formalized medical cannabis market.
Following up on this, South Dakota residents have re-submitted an initiative to certify adult-use cannabis in the state. Cannabis legislation with a proposed program that allows up to 1 ounce of possession and the ability to grow up to three plants if no dispensaries reside in their county/city.
Licensed operators in the Arkansas medical cannabis program submitted. A ballot initiative that will see state residents vote on adult-use reform as part of the November Ballot initiatives. The proposed cannabis legislation would allow Arkansas’s existing medical shops to add recreational sales at their stores on March 8, 2023, and the option to open another recreational-only location. Further, a lottery would be held to allocate another 40 additional retail licenses to serve adult-use customers.
After efforts to push adult-use legalization through the state legislature failed earlier this year. An effort has been made to put adult-use legalization on the November ballot. Signatures were submitted this past May. However, it remains unclear if the initiative will pass the state’s requirement to collect signatures. From all six of the state’s congressional districts.
State voters will likely see adult-use legalization as a question on the state ballot later this year. After advocates submitted twice the required number of signatures for consideration last month.
After adult-use cannabis legislation failed to pass the state senate in 2021, last month saw advocates submit ~25,700 signatures. (~10,000 signatures above the required amount) to place the initiative on the November ballot.
Nebraska remains one of three states without any form of medical cannabis access in the US today. Earlier this year, advocates submitted ~90,000 signatures to have the initiative placed on the November ballot. However, disputes are currently ongoing regarding the state’s geographic requirements (which call for at least 5% of voters in at least 38 of the state’s 93 counties).
The Cannabis Administration and Opportunity Act, sponsored by Senate Majority Leader Chuck Schumer, would decriminalise marijuana at the federal level and provide states the freedom to enact their own marijuana regulations without fear of interference from Washington.
Senate leaders are introducing sweeping legislation Thursday meant to lift federal prohibitions. On marijuana more than 50 years after Congress made the drug illegal.
US senators raise heat on President Biden, demand marijuana reform:
A group of U.S. senators is trying to increase pressure on the Biden administration to remove marijuana from the federal Controlled Substances. Act, citing earlier promises of marijuana reform.
Six senators, including New Jersey’s Cory Booker, Vermont’s Bernie Sanders, and Massachusetts’ Elizabeth Warren. Asked the Biden administration in a letter on Wednesday to utilise its authority to decriminalise marijuana.
Connecticut: Cannabis industry news, State marijuana regulators were inundated with more than 15,000 applications for retail recreational dispensaries before the May 4 deadline.
Florida: Miami, the state’s second-largest city, with a population of 450,000, will finally allow its first medical cannabis dispensary.
Illinois: A state judge lifted an August 2021 court order that stood in the way of 185 new business licenses being issued for recreational cannabis stores.
Louisiana: State legislators passed a bill to expand the number of medical marijuana dispensaries from nine to 30.
Lawmakers in the Massachusetts House of Representatives joined their state. Senate colleagues in approving legislation to promote greater diversity in the state’s licensed cannabis industry.
Michigan: The city of Detroit issued its first recreational marijuana business license.
Missouri: Cannabis industry news, A campaign working to legalize adult-use marijuana in Missouri. Has submitted almost 400,000 voter signatures to the state in support of a November ballot measure.
New Jersey: In the first month of recreational cannabis, New Jersey retailers sold $24 million worth of adult-use products in the 13 state-licensed dispensaries.
New York: The state Cannabis Control Board signed off on 16 conditional adult-use marijuana cultivation licenses. Along with a slew of proposed industry rules.
Ohio: The state’s pharmacy board approved 70 provisional licenses, which could more than double the 58 dispensaries previously licensed.
South Dakota: A group advocating to legalize adult-use cannabis, South Dakotans for Better Marijuana Laws. Turned in roughly 25,000 signatures to the office of the Secretary of State, which could be enough to get the issue on the November ballot.
Vermont: Seven additional cannabis grow licenses were approved as the state increases suppliers for the recreational cannabis market that is expected to launch in October.
Contact Us today to discuss how we can support your business growth in this exciting industry