VP Pick Harris confirms Biden administration will pursue decriminalization – notably, not legalization
In a joint interview with Biden, Harris commented on drug reform under a Biden administration as a “policy that is going to be about decriminalizing marijuana.” Her language notably does not suggest federal legalization, which is line with Biden’s current stance opposing recreational legalization.
For MSOs, this confirmation of decriminalization, as opposed to federal legalization, may be a net positive, if a Biden/Harris ticket wins this November. The current regulatory environment makes for a high barrier to entry and will allow the top-tier MSOs, like Curaleaf (CURLF), Cresco Labs (CRLBF), Green Thumb Industries (GTBIF), and Trulieve (TCNNF), to continue consolidating their market leading positions.
In WA and CO, adolescent treatment admissions for cannabis use disorder fell post-legalization
Hitting on a sensitive issue in the legalization debate, researchers found that after adult-use legalization in Washington and Colorado, there was not an associated increase in adolescent treatment admissions for cannabis. The study, published to Drug and Alcohol Dependence, used data collected from the U.S. Substance Abuse and Mental Health Services Administration between 2008 and 2017, tracking admissions to publicly-funded substance use treatment facilities.
The study’s author, Professor Jeremy Mennis of Temple University, told news publication PsyPost, “Recreational marijuana legalization in Colorado and Washington was not associated with an increase in admissions to treatment for cannabis use disorder among adolescents. This may be because legalization did not increase adolescent marijuana use, or for a number other reasons. Interestingly, nationally, adolescent treatment admissions for cannabis use disorder have been declining recently, including in Colorado and Washington, even as national marijuana use among adolescents has remained relatively stable.”
Report alleges fraud against GrowGeneration (GRWG)
Last Friday, a company called Hindenburg Research published a short report on GrowGeneration (GRWG) alleging that GrowGen’s senior management have “extensive ties to alleged pump & dump schemes, organized crime and various acts of fraud.” The report comes after GrowGen published strong Q2 results. The stock plunged 17.3% yesterday.
CEO & co-founder Darren Lampert, President & co-founder Michael Salaman, and CFO Monty Lamirato sold shares last week.
GrowGen is an ancillary company to the cannabis industry and is the largest chain of specialty hydroponic and organic garden centers with 28 locations. In response to Hindenburg, GrowGen’s management pushed back saying in a press release, “published false and defamatory statements about certain Officers and Directors of the Company designed to provide a false impression to investors and to manipulate the market to benefit short sellers.” They further said that they plan to collaborate with law enforcement and regulators to ensure that any criminal activity is investigated and prosecuted.
