IIPR/4Front
IIPR's business model consists of partnering with experienced, regulated cannabis operators, buying their properties, and then leasing them back to the cannabis operator. This provides a source of capital for these cannabis companies when oftentimes it is challenging to find funding since being cut off from banking. IIPR partners with high-quality tenants who have a healthy balance sheet and a clean compliance record. IIPR said yesterday it partnered with 4Front Ventures on their Illinois facility. The property's purchase price was $6.5 Million, and 4Front is expected to construct a 250,000 sq. Ft. facility on the property. IIPR has agreed to reimburse 4Front for the cost of constructing this facility up to $43.75 Million. IIPR will then lease this property back to 4Front. In total, IIPR has invested $83.25 Million to 4Front totaling 431,000 Sq. Ft with all the other facilities they have bought and leased back to 4Front.
Senate Infrastructure Deal
You must be thinking, what does the infrastructure deal have anything to do with cannabis? But the bill actually has several marijuana-related stipulations. The new bill includes provisions to allow researchers to study the actual marijuana consumers are purchasing from state-legal dispensaries instead of only studying government-grown cannabis. Even if a scientist is from a state with no legislation, such as Alabama, they will still be able to research products coming from a legal state such as Illinois. Apart from the research portion, the bill encourages states to enact legalization laws to educate people about impaired driving. The bill states that the transportation secretary would need to work with the attorney general and secretary of health and human services to develop a public report that includes recommendations for marijuana's effects on driving. This bill will significantly strengthen marijuana research and move the federal government closer to full legalization in the coming years.
CO Taxes
A Colorado campaign has enough signatures to place a ballot initiative to raise marijuana taxes from 15% to 20%. These extra funds will be used to reduce the education gap for low-income students. The Colorado Learning Enrichment and Academic Progress (LEAP) measure would give low- and middle-income families a $1,500 stipend to have school-aged children participate in after-school programs, tutoring, and summer learning activities. “The learning loss that we’ve seen during the pandemic is so much higher than we’ve ever seen before, particularly for our low-income families and our students that don’t have access to the same resources,” said a LEAP campaign representative. This new initiative has been met with resistance from marijuana industry stakeholders and even some teachers' unions. A member of the trade group Black and Brown and Red Badged said the following: “Let’s just be perfectly clear this is a regressive tax—which always harms Black and Brown consumers the most. This is going to a voucher program—which always harms Black and Brown communities the most,” he said. “And it’s targeting the marijuana industry as a magical bottomless piggy bank—which will devastate the Black and Brown-owned cannabis businesses the most. Can we just let the black community breathe for a moment after this pandemic before we start taxing them to death?” If passed, this will be a controversial initiative that could hurt marijuana sales and help the community in Colorado.
