FLASH CALL TOMORROW | CANNABIS | BIDEN'S REMARKS + IMPLICATIONS
CALL DETAILS:
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Today, October 7th, at 10 AM ET, we will be hosting a flash call with Hedgeye Macro Policy Expert JT Taylor to discuss the implications of President Biden's remarks about the Cannabis industry.
Yesterday, President Joe Biden announced his intent to "pardon of all prior Federal offenses of simple possession of marijuana." In his statement, he said: "I have directed the Attorney General to develop an administrative process for the issuance of certificates of pardon to eligible individuals. My action will help relieve the collateral consequences arising from these convictions." The President also announced that he was encouraging Governor's to facilitate similar actions on the state level. Getting the federal government to act is critical, but the President is just catching up to state-led initiatives. To date, nearly two dozen states have enacted legislation explicitly facilitating the process of having select marijuana convictions expunged, vacated, otherwise set aside, or sealed from public view.
The President announced he is "asking the Secretary of Health and Human Services and the Attorney General to initiate the administrative process to review expeditiously how marijuana is scheduled under federal law."
All these moves are critically important but merely the first step in what he has officially announced as his formal process for legalizing cannabis at the federal level. Now what? So many unanswered questions.
- HHS has still not ruled on the 2018 Farm bill and regulations on CBD.
- Did Biden give cover to Schumer/Booker to pass SAFE?
- A codified Cole memo has better than a 75% chance of being issued.
- What does a Codified Cole memo mean for Canadian cannabis companies entering the US or MSOs being listed in the USA?
More detail on the 10 AM call.
Germany Imports.
Germany imported a record amount of cannabis for medical sales and scientific use in the first half of this year, putting the European Union’s biggest market on pace to match or possibly surpass 2021’s total. In all of 2021, Germany imported 20,589 kilograms of cannabis for medical and scientific purposes, a substantial increase over its 13,346 kilograms in 2020. Separate data also shows Canada’s role as the country’s top supplier has waned as competition to supply the prized, if still small, German market intensifies. Last year, Canadian licensed producers shipped 6,493 kilograms of medical cannabis flower and extract to Germany, accounting for approximately one-third of the country’s imports. After Canada, the top suppliers to Germany in 2021 were Denmark (3,726 kilograms, or 18.1%), Netherlands (3,724 kilograms, or 18%), and Portugal (2,413 kilograms, or 11.7%). The Canadian cannabis market gets harder and harder every day to make a profit and now the country will continue to see increased competition around the world as more and more countries legalize cannabis and continue to build out their own production and export strategy. mjbizdaily.com
Costa Rica's President Taking Action.
President Rodrigo Chaves Robles announced yesterday that he is sending a reform bill to the Legislative Assembly in Costa Rica for the legalization of adult-use cannabis, which comes just 7-months after the country legalized medical cannabis. President Robles said at a briefing on Wednesday that the legislation “aims to legalize, control and regulate the consumption, cultivation, production, and marketing of cannabis for recreational purposes.” This will not be as easy as a vote as was that of legalized medical cannabis use, but President Robles has proven to be a champion in the cannabis space since he took office just a year ago.
