COVID-19 boosting legal over illegal cannabis
Mitch Baruchowitz, a managing partner at cannabis investment firm Merida Capital Partners, published a recent analysis that said COVID-19 is hurting illicit cannabis. One reason is safety, which was raised in profile by the vaping concerns last year. Another factor driving marijuana customers into the legal market is the relaxed regulations during COVID-19. Many markets are allowing delivery, which is a method of purchase that is common in the illegal market. The pandemic also disrupted the illegal market during the outdoor planting season.
ISRAEL CANNABIS UPDATE
Israel's two largest political parties said they would push for increased legalization of cannabis use. This follows the police minister backing easing enforcement of existing laws last week. Prime Minister Benjamin Netanyahu's Likud and Defense Minister Benny Gantz's Blue and White said in a joint statement that they would advance legislation "to resolve the issue of decriminalization and legalization [of recreational cannabis]." News reports expect the moves to take about four months. Currently, recreational use is illegal and medical use is restricted by the few dispensaries licensed to distribute cannabis.
The outlines for the reform are as follows: Cannabis use will only be permitted for those aged 21 and up, not including workers in security-related jobs; driving will be forbidden under cannabis influence; designated shops will sell the drug; there will be severe restrictions on advertising cannabis, as is the case with cigarettes; and an educational fund will be formed to explain the dangers and addictiveness of the drug to school students and others.
One of the most important international markets for Cannabis is Israel, and the only Canadian LP focused on that market is CRON. APHA has a 100% subsidiary, Nuuvera Israel Ltd, but the management of the company is incompetent and not focused. Also, TLRY has supplied medical cannabis products to Germany and Israel from its EU campus in Portugal. Organigram signed a multiyear supply agreement with Israeli cannabis firm Canndoc, pending receipt of regulatory approvals from Health Canada and the Israeli Ministry of Health.
NOW THE NBA
In early March, the NFL also made the decision to end suspensions for positive drug tests as well as limiting the testing window over positive tests for any drug—not just marijuana—under a collective bargaining agreement. Also, in early March, Major League Baseball clarified its stance on marijuana. Players can now consume cannabis without the risk of discipline. Still, they can't show up to work under the influence and—at least for now—are barred from entering into commercial arrangements with companies in the marijuana industry. Cresco Labs announced on Wednesday that, Michele Roberts, who has served as the executive director of the National Basketball Players Association (NBPA) since 2014, will be the first female board member. With the head of the NBA's players union joining the board of a major marijuana company, it's clear that NBA players will not be tested for cannabis and other recreational drugs when they meet in Orlando next month.
