U.S. State initiatives.
There has been some initial movement when it comes to states looking to get involved in the cannabis space. A bill to legalize cannabis in New Hampshire is going back to the House floor after a second committee passed the legislation with amendments on Monday. North Dakota’s governor has signed a bill allowing patients admitted to hospice care to self-certify as medical cannabis patients. In Idaho, A new bill designed to provide for a “tightly regulated system” of medical cannabis was introduced Friday morning in the state's House of Representatives. Montana's Senate Business, Labor and Economic Affairs Committee voted down—and then tabled—a bill to ban most marijuana advertising in the state last week. South Dakota Gov. Kristi Noem (R) vetoed a bill Thursday that would increase the amount of THC that industrial hemp processors can have in their products. The bill that was vetoed would have increased the legal THC level to 5% for 1%. And finally, Texas lawmakers approved a bill that would allow doctors to recommend medical marijuana to patients if they have a condition causing chronic pain that would otherwise be treated with prescription opioids. This comes weeks after the state decriminalized cannabis possession. The industry continues to see small wins within state regulations, but the industry won't get a truly meaningful favorable tailwind until progress is made at the federal level.
AYR Exits Arizona.
AYR announced this morning that it has closed under the definitive agreement to sell Blue Camo, which comprises the Company’s Arizona assets, to AZ Goat. AZ Goat is a group consisting primarily of the former owners of Blue Camo, who sold the business to AYR in 1Q21. The sale includes two licensed entities operating three Oasis-branded dispensaries in the greater Phoenix area, a 10,000 sq. ft. cultivation and processing facility in Chandler, and an 80,000 sq. ft. cultivation facility in Phoenix, and AYR’s majority interest in Willcox OC, LLC, a joint venture developing an outdoor cultivation facility. AYR received consideration of $20 million in cash, with additional cash proceeds from net working capital to be received in the next six months. In addition, the Buyer has assumed lease obligations that resulted in the elimination of approximately $15 million in long-term lease liabilities for AYR. “I am pleased to announce the swift closing of the sale of our Arizona assets,” said David Goubert, President & CEO of AYR. “This transaction strengthens our balance sheet by adding cash and reducing net debt and long-term operating leases by approximately$55million while improving our working capital position. Finalizing this transaction is the latest step in our optimization plan as we look to streamline our business and prioritize investment into our most profitable assets.”
the Father of cannabis research
Raphael Mechoulam (92) was reported to have passed away last week. The Israeli researcher was the first to discover the isolation of the psychoactive compound of the cannabis plant — tetrahydrocannabinol, or THC. "Most of the human and scientific knowledge about cannabis was accumulated thanks to Prof. Mechoulam. He paved the way for groundbreaking studies and initiated scientific cooperation between researchers around the world," said Asher Cohen, the president of the Hebrew University of Jerusalem. "This is a sad day for the academic community and for the university."
