House Democrats’ Latest COVID relief package includes the SAFE Banking Act (IIPR)
House Democrats have included provisions permitting licensed cannabis businesses to legally and explicitly partner with banks and other financial institutions in their latest COVID stimulus package. The updated version of The Heroes Act includes the Secure and Fair Enforcement Banking Act, which creates legal pathways so that state-licensed marijuana businesses may legally engage in relationships with banks and other financial services. Under federal prohibition, U.S. cannabis operators cannot legally utilize a bank to process credit cards, open a bank account, take business deductions on federal taxes, or access traditional financing options. If passed by the House, this will mark the third time that the full body has approved SAFE Banking legislation. House members initially passed the legislation as a stand-alone bill by a more than 3 to 1 margin in 2019. House members passed the language again in May in the initial HEROES Act.
The Valens Company launches a new cannabis-infused beverage containing 10mg of THC (VLNCF)
The Valens Company Inc., a global leader in the end-to-end development and manufacturing of cannabinoid-based products, launched a new a high potency cannabis beverage, Summit 10, under a white label agreement with A1 Cannabis Company. Summit 10, a lemonade iced tea containing 10mg of THC, is the third addition to The Valens Company and A1's line of cannabis-infused beverages. The drink comes in a 355ml bottle with a flavor profile of citrus and black tea and a potency of 10mg of THC. Summit 10 was developed using SōRSE by Valens emulsion technology and is designed for consumers seeking a higher dosage product with faster observed onset times and reduced offset times, housed in a resealable bottle for convenient and controlled consumption.
Summit 10 is expected to first launch in mid-October in Alberta online and at select retailers, with British Columbia and Ontario to follow shortly after. The Valens Company and A1 Cannabis also expect to release a zero sugar Summit 10 beverage this fall.
According to Headset data, cannabis beverage sales were approximately CA$1.7M for the month of July in Alberta, British Columbia, and Ontario combined. In Alberta, cannabis beverage sales as of August made up 1.6% of the market, a 140 bps increase from January. In British Columbia, July’s cannabis beverage sales had 1.4% of the market, a 130 bps increase from January. In Ontario, July’s cannabis beverage sales had 1.5% of the market, a 130 bps increase from January. For 1H20, edibles (including beverages) had 5.3% share in Alberta, 4.9% in British Columbia, and 4.5% in Ontario.
Ontario begins issuing 10 cannabis Retail Store Authorizations per week (CGC, HITIF/META, FFLWF)
At the beginning of this month, the Alcohol and Gaming Commission of Ontario (AGCO) announced that it planned to double the number of cannabis retail store authorizations (RSA) it licenses per month this fall – moving from issuing 20 RSAs per month to an implied 40 RSAs per month. To date, the AGCO has issued 194 RSAs and 173 authorized cannabis retail stores are currently open. As of September 28, the commission will move from issuing five to 10 RSAs each week. AGCO has been directly contacting all affected retail store applicants to advise them of the change to the timing of the issuance of their store authorizations.
The province has a population of 14.7M people or roughly 40% of the country’s population, however as of the most recent Health Canada date, Ontario made up just 26.0% of total legal sales. Meanwhile, Alberta has a population of 4.4M people or roughly 12% of Canada’s population – its sales made up 22.4% of the nation’s total legal sale. The unit growth in the province will provide operators with a retail presence there (CGC, HITIF/META, FFLWF) with an expansion opportunity and will hopefully help in narrowing the illicit market.
