2022 IS THE MAGIC NUMBER
The new CEO of CGC is putting a stake in the ground by saying 2022 will see federal legalization of MJ. Medical MJ is a Trojan horse, in that as states continue to permit recreational use of marijuana gradually, Congress will have no choice but to act. My assumption is that 2022 is the magic number. I think as more states legalize, you'll bring in senators who will feel compelled to not make criminals out of the people who are doing what's legal in their state." -David Klein, CEO
Let's Go!
LOUISIANA EXPANSION
Louisiana Governor John Bel Edwards signed into law last week's new Cannabis legislation. The bill significantly expands beyond the 14 specific maladies that qualify patients for legal cannabis access under the state's current program. As of August 1, patients in Louisiana will be able to get medical marijuana for any debilitating condition their doctors see fit. The governor also signed legislation protecting banks and credit unions that service cannabis businesses from being penalized by state regulators, as well as another bill to provide legal protections for doctors who recommended medical marijuana and authorized medical facilities that have cannabis patients in their care. Those measures also take effect on August 1.
HAVE YOU EVER?
I have seen some crazy stuff in Cannabis over the past two years, but this takes the cake. Acreage Holdings (ACRGF) today announced it entered into a short-term definitive funding agreement with an institutional investor for a total of $15,000,000 in gross proceeds. The secured note has a maturity date of four months and bears interest at a per annum rate of 60%. It is secured by, among other items, the Company's cannabis operations in Illinois, New Jersey, and Florida, as well as the Company's U.S. intellectual property. In the event of default, the Company is further obligated to pay Lender an additional fee of $6,000,000. The Company may prepay the note without penalty or premium at any time following the 90th day following the closing.
