NJ #13
The governor of New Jersey signed legislation on Monday that paves the way for the state to become the 13th state to legalize the recreational use of marijuana to proceed. The long-delayed action came moments after lawmakers sent to his desk a new proposal concerning penalties for underage cannabis possession—the absence of which in separate legalization implementation legislation caused Gov. Phil Murphy (D) to refuse to approve the program’s launch. The latest compromise bill that the Senate and Assembly approved on Monday makes it so youth would be subject to a written warning if caught with cannabis. That was the final step needed in a tumultuous legislative path for Murphy to sign the implementation bill, as well as a separate piece of legislation concerning the decriminalization of possession.
NEW COLE MEMO COMING?
Cannabis reform will happen in stages and yesterday appears to get the movement one step closer to a Phase one outcome. Merrick Garland said on Monday that it is not “a useful use of limited resources” to go after people who are complying with state marijuana laws. He also cited cannabis enforcement as an example of the racially discriminatory impact of the criminal justice system. To date, his views on marijuana policy have been largely unclear, said that the issue is “a question of prioritization about resources and discretion,” and he signaled that the Justice Department would adopt a hands-off policy for most cannabis cases, similar to what was implemented under President Barack Obama if he was confirmed. “It does not seem to me useful the use of limited resources that we have to be pursuing prosecutions in states that have legalized and are regulating the use of marijuana, either medically or otherwise,” he said when asked by Sen. Cory Booker (D-NJ) during his confirmation hearing before the Senate Judiciary Committee. “I don’t think that’s a useful use.” “I do think we need to be sure that there are no end runs around the state laws that criminal enterprises are doing. That kind of enforcement should be continued,” he said. “But I don’t think it’s a good use of our resources where states have already authorized, and it only confuses people obviously within the state.” That view is consistent with policies put into place under Obama—known as the Cole memorandum—and then rescinded Jeff Sessions.
His commentary is consistent with the notion that an updated Cole Memo can be part of the new DOJ.
MORE $ FOR GTBIF
Green Thumb Industries (GTBIF) today announced that it raised approximately $56,000,000 from the Form S-1 registration statement relating to the potential sale of up to 10,000,000 of its subordinate voting shares, that was declared effective by the U.S. Securities and Exchange Commission (the “SEC”) as of February 8, 2021. Green Thumb received and accepted offers from investors to purchase 1.6 million registered subordinate voting shares at US$35.50 per share for a total of approximately $56,000,000. The sale will close on February 23, 2021, and follows the previous sale of shares under the Registration Statement that closed on February 9, 2021, for $100,000,000.
Quotes from the PR from Ben Kovler:
"The strength of investor demand suggests growing confidence within the U.S. capital markets for cannabis.”
“The Green Thumb team is excited by the momentum and is proactively advocating for U.S. cannabis companies to receive access to U.S. exchanges like our Canadian peers. This access is a key step to unlock greater job creation, significantly more tax revenue, and a more robust effort to right some of the wrongs caused by the war on drugs.”
