Democrats within the U.S. House of Representatives determined this week to carry off on a ground vote for the Marijuana Opportunity Reinvestment and Expungement (MORE) Act till after the November election, basically caving to Republican political strain.
MJBizDaily takeaway: The ground vote, which might have been historic as the primary time Congress paid heed to a significant marijuana reform invoice, was all the time going to be a symbolic gesture anyway.
The Republican-led Senate by no means supposed to take the invoice up significantly this yr, which implies the loss right here is arguably being suffered by the Democratic Party, not the marijuana business. The Democrats might have taken management of the pro-legalization message, which has proved more and more fashionable with U.S. voters of all stripes in recent times.
Nonetheless, the delayed vote is a thumb within the eye to marijuana business stakeholders who’ve been spending lengthy hours and loads of cash lobbying members of Congress to get the federal authorities according to an MJ coverage that the majority Americans already help.
US states, Canada set more gross sales information
Both Canada and a number of U.S. state marijuana markets – together with Colorado, Illinois and Ohio – proceed to set marijuana gross sales information this summer season.
MJBizDaily takeaway: The gross sales spree that world cannabis markets have skilled the previous a number of months is an indicator the marijuana business would possibly, certainly, be recession-proof.
Sales have been bolstered by the coronavirus pandemic, which led to the cannabis business being largely exempted from mandated enterprise closures which have affected different sectors – corresponding to eating places and bars. As lengthy because the pandemic continues, it’s possible that gross sales figures will hold rising.
Brazil poised to legalize medical marijuana, industrial hemp
While U.S. lawmakers proceed to stall federal marijuana legalization, a titanic cannabis market in South America is on the verge of opening up.
Brazilian lawmakers have fast-tracked a bill to legalize each medical marijuana and industrial hemp, which might current world cannabis gamers with a variety of recent alternatives.
MJBizDaily takeaway: Brazil boasts the biggest financial system in South America, and if the legalization push is profitable, it’ll open one more import-export marketplace for cannabis companies in a shortly rising world business that features a number of continents and international locations.
It’s solely a matter of time earlier than the cannabis sector expands even additional as more nations repeal prohibitions on each marijuana and hemp. And international locations that wait will solely lose out.
Marijuana capital raises achieve steam
California-based MedMen and Holistic Industries in Maryland introduced eight-figure funding capital raises, each stable indications that investor curiosity within the cannabis house is starting to renew after a prolonged funding drought.
MJBizDaily takeaway: Both raises – $20 million for MedMen and $35 million for Holistic – are encouraging indicators for a cash-strapped business that’s been starved for funding cash.
But cannabis operators can’t exhale simply but, as a result of capital stays tight and each raises concerned a big quantity of debt – a less-than-ideal monetary state of affairs.
The solely factor that may really convey traders again to the desk is ongoing stable performances by publicly traded marijuana corporations to show to traders that their cash gained’t go to waste.
New Jersey dispensary enlargement
New Jersey is getting more medical marijuana dispensaries within the coming months, which is able to slowly however certainly broaden the business footprint within the state earlier than leisure cannabis is probably going legalized there in November.
MJBizDaily takeaway: The long-awaited enlargement of New Jersey’s MMJ business has been actually years within the making and serves as a reminder of simply how far many states nonetheless need to go by way of “normalizing” the cannabis business.
The truth is, many state-legal MMJ markets – suppose Minnesota, New York and most of New England – are nonetheless a lot smaller than many different packages across the nation and aren’t actually in a position to serve the total calls for of their customers.
New Jersey’s enlargement will likely be a step in the correct path in that respect.
German MMJ market going through turbulence
Germany’s medical cannabis business, which has steadily change into the biggest in Europe, hit some snags when this yr’s harvest was delayed till 2021 and now there’s a reported downturn in insurance coverage reimbursements for MMJ affected person purchases.
MJBizDaily takeaway: The delayed home grows imply Germany will proceed to be totally depending on imports for the close to future. And even when in-country manufacturing ramps up, the availability isn’t anticipated to be sufficient.
However, enthusiasm about exporting to Germany might cool off if gross sales cease rising. In the second quarter of 2020, gross sales in Germany decreased as a result of costs fell in a market that’s changing into more crowded with suppliers and the variety of medical prescriptions barely grew.
Sales information for the third quarter will likely be basic to a greater understanding of whether or not the decline in Germany was a one-time anomaly or a part of a more worrisome development.
John Schroyer will be reached at [email protected]
International analyst Alfredo Pascual contributed to this report.