Pressuring POTUS
Six senators sent a letter to President Joe Biden on Wednesday urging him to begin the process of removing cannabis from the Controlled Substances Act and to pardon additional nonviolent cannabis-related offenders.
"Much more has to be done to address the racist and harmful legacy of cannabis policies on Black and Brown communities," reads the letter, which was signed by Sens. Elizabeth Warren (D-Mass.), Bernie Sanders (I-Vt.), Kirsten Gillibrand (D-N.Y.), Ed Markey (D-Mass.), Cory Booker (D-N.J.), and Ron Wyden (D-Ore.). This isn't the first time Warren and Markey have made this request of the Biden administration; they sent a similar letter regarding clemencies in November 2021, which they say has still not received a response. The Biden administration granted clemency to 77 drug-related offenders earlier this year — at least eight of whom were convicted of cannabis-related offenses. Those clemencies represent a minuscule portion of people living with nonviolent, federal cannabis-related convictions, which estimates put in the thousands. During the 2020 presidential election, Biden said he did not think anyone should be in jail for nonviolent drug offenses. Still, the 77 clemencies he issued in April are the only step he has taken to put action to his words. As for descheduling, the DOJ told Warren and Booker in April that "cannabis has not been proven in scientific studies to be a safe and effective treatment for any disease or condition." The DOJ cannot simply remove cannabis from the CSA, but it can issue a request that HHS conduct research and recommend a new schedule or complete removal of cannabis. Past presidents have often waited until their second term to issue a majority of their pardons or other clemencies due to worries that they could be used against them or their party in an election. Even many of Biden's 78 clemencies do not take effect until 2023 or after the midterm election.
How this could unfold, according to Michael Auerbach:
- DOJ requests HHS rec. to deschedule
- Pardon non-violent Federal prisoners
- Prohibition ends immediately
- States and Congress will be forced to regulate
The Parent Company
GRAMF announced that it has entered into an exclusive brand licensing, cultivation, and production agreement with Curio Wellness to bring the Company's brands to the State of Maryland, with an anticipated market launch in late 2022. Initial brands to be introduced under the Licensing Agreement include Monogram, Caliva, Mirayo by Santana, Deli, and other TPCO-owned brands, in various product form factors, including jarred fresh flower, prerolls, premium vapes, and infused gummies and chocolates. Some of the products will feature signature strains of cannabis cultivated by Curio in collaboration with The Parent Company. The Parent Company brands are expected to initially be available at Curio's Far & Dotter dispensaries, with broad wholesale distribution to dispensaries across the State. Under the Licensing Agreement, Curio will exclusively manufacture, distribute, market, and sell the Company's branded products in the State of Maryland according to the highest product specifications and quality standards as established by The Parent Company. The Licensing Agreement has an initial term of four years with further renewal terms and anticipates a potential expanded partnership into additional states.
IL Adult-USe Sales.
Illinois adult-use sales continue to decelerate due to price deterioration. In June, adult-use sales in IL were ~$127M, with ~$87M coming from residents of the State and ~$40M coming from out-of-state customers. This represents an MoM decline of 2.3% and a YoY increase of 9.8%. In May, IL adult-use sales saw an MoM decline of 1.5% and a YoY increase of 11.5%. The average price per item sold in June saw a YoY decline of 8.7%.
Pricing continues to fall across the U.S.
Prices in the industry have fallen in many states like Illinois, Washington, Oregon, and Colorado (to name a few). In Arizona, oversupply is beginning to affect prices as well. "In the past several months, the price of flowers has gone down," said Ryan Hermansky, Arizona Dispensaries Association (ADA) board president, in a statement released to Phoenix New Times. "Flower is being sold at competitive prices, enabling well-run grows to function and be profitable." There is concerns in this market that if regulatory measures are made to cap production levels, the State will continue to see cannabis supply growth outpace consumer volume growth.
