WeedLife News Network

Luc Springinsfeld of leading investment bank Bryan, Garnier & Co explores the European medical cannabis market and the rise of medical cannabis investment in Europe.

Since the beginning of 2019, there have been a dozen mergers and acquisitions or private placement deals with values above €5m involving companies focused on medical cannabis in Europe. In total, north of €100m of new money has been invested in medical cannabis-focused companies across Europe over the past 18 months. While this represents a sharp increase compared with the period before 2019, we are still far from the levels experienced in North America, where more than $3bn was invested in the medical cannabis market through more than 450 deals in 2019.

In the early days of the industry, most investments were from high net worth individuals (HNWIs) and family offices, or from exclusively cannabis-focused funds. However, the past 12 months have seen increasing interest from traditional venture capital (VC) firms. While many remain barred from investing in cannabis-related companies by the constraints of their limited partnership agreements, we expect more dedicated funds and a wider base of investors to emerge, attracted by the high growth potential of the cannabis market.

A strong focus on Germany

In Europe, 80% of deals concerned Germany-based companies, all of which are active in the distribution of medical cannabis products within the country.

One notable example is the €20m fundraising by Sanity Group, which saw the US-based cannabis-focused VC firm Casa Verde invest in the company alongside more traditional VCs such as Holtzbrinck, Cherry and TQ Venture. This round had a first close announced in August 2019 and a second close in February 2020.

Pioneering medical product distributor Cannamedical also recently announced a capital increase of €12m, funded by US-based traditional healthcare investor Steve Wiggins, which brought the total amount invested in the company to EUR27m. The deal was closed in April 2020, in the midst of Germany’s government-imposed lockdown, demonstrating the continued appetite of investors for the space despite the Covid-19 crisis. CanPharma, another leading German medical cannabis supplier, is also currently raising a double-digit million-euro round. Other companies involved in the German cannabis sector and likely to raise additional funds in the coming months include Emmac Lifesciences, Foliumed and Wundr/iuvo.

Despite various efforts by numerous companies big and small in the U.S., education remains the biggest obstacle in the cannabis industry, a new survey conducted by Oasis Intelligence found.

The firm’s research showed that the majority of legal consumers still lack foundational knowledge about weed’s effects, risks and benefits. One explanation? The number one resource that customers use when seeking out information about cannabis and potential products is their friends.

The survey places stark contrast between the conversations occurring inside cannabis spaces and how people discuss weed at home.

“We inside the industry have a real advantage when it comes to understanding the plant from a scientific, regulation and usage perspective that is generally a requirement for those in the space,” Oasis Intelligence co-founder Laura Albers told The Fresh Toast. “However, when it comes to the average consumer, we see the needs for education are not about more advanced topics that the industry may prioritize — think terpenes, minor cannabinoids gaining popularity or even the endocannabinoid system.”

According to the Oasis study, over 70 per cent of people are unfamiliar with terms like the “entourage effect” and “endocannabinoid system.” Instead, Albers said, many are still grasping with the basics. Subjects that most interest consumers include different available products, CBD:THC ratios, and alternative consumption methods. A significant portion of consumers still seek more understanding around THC.

Like many EU countries, Croatia has been slowly changing its laws to allow for greater legal (or at least decriminalized) cannabis use. However, earlier this year, some in Croatia’s government got a bit impatient, attempting to jump steps in order to legalize recreational cannabis.

Two of the legal acts that govern drug law in Croatia are the Criminal Code and The Law on Combating Drugs Abuse. The manufacturing, trade, and possession of drugs are regulated by The Law on Combating Drugs Abuse which passed in 2001, and which has undergone updates since that time. It outlines preventative measures for curbing drug use and dealing with drug users, and specifically forbids growing, possessing or supplying drugs. The Criminal Code is used for the prosecution of more serious crimes.

In mid-December, 2012, the Croatian parliament voted in a bill to decriminalize personal use amounts of illicit substances, making possession of these amounts no longer a criminal offence (but rather a misdemeanor). Croatia does not establish what a personal use amount is, and leaves the designation to the courts in each particular case.

To be clear, whereas some personal use laws in other countries come with very few repercussions so long as the amount is within the legal requirement, Croatia’s decriminalization laws still leave an offender to pay a fine of possibly more than €2,000, ordered into a rehabilitation program, or required to do community service. Before the change in law, simple possession charges could result in up to three years in jail. The Criminal Code encourages courts to use alternatives to prison whenever possible, especially when the prison sentence would otherwise be six months or less.

The law, which went into effect on January 1st, 2013, did nothing to decriminalize personal cultivation of any drug for any reason. Cultivation, processing, and production of drugs, even without intent to sell, can result in 6 months – 5 years in prison. With intent to sell it can be anywhere from 1-12 years. It can go up to 15 years if the crimes involve children, and up to 20 years with the involvement of organized crime.

Medical cannabis in Croatia

In October, 2015, Croatia legalized the use of cannabis for medicinal purposes. Under the law, doctors can prescribe medications in different forms containing THC with regulations putting a cap at .75 grams of THC per month for a patient. One of the driving forces behind the change in legislation came about because of a case involving a multiple sclerosis sufferer who was caught growing and using cannabis personally to treat his symptoms. The man in question was caught with 44 pounds of cannabis with which he was using to make oil.

Data for recent years show a steady climb in the global cannabis market. More and more countries have decided to go green and legalize cannabis in order to weaken the illicit market strength and help the economy. To grow, sell, and distribute the best products, manufacturers use lots of modern technologies. It doesn’t only help them to stay competitive in today’s market, but it also helps to optimize the production process.

A lot of people grow marijuana at home for recreational or medical purposes, or perhaps they have a chance to drop by a 24-hour dispensary to purchase their cannabis of choice. In the countries where it is legal, companies have the same growing processes but just on a large scale with improved technology. Let’s take a look at a number of trends that have taken hold in the cannabis industry:

Led Fixtures 

Cannabis fans have been using light-emitting diodes for years. However, LED fixtures look much different these days. For example, programmable LED fixtures can give more control during the growing process than any other technology. 

Almost all fixtures have light-sensing equipment inside that helps to coordinate the output and maintain a set routine. Some of the best cannabis companies in the United States use this technology to improve the quality of their products as well as their revenues.

Also, programmable fixtures allow marijuana fans to create light recipes that can help the strains to grow. With the help of this technology, cultivators can mimic sunrise, sunset, and even midday lighting. Needless to say, it allows growers to take care of their products anywhere in the world. The best thing is that anyone can get this technology for personal use. 

Having been in the alcohol and tobacco permitting industries for decades, we’re often asked when cannabis will be federally legalized. Until now, it’s been hard to say, but things could finally be coming to a head. 

Cannabis is now legal in 33 states. In the last few years, federal legalization has become a political issue and the conversation around taxation and decriminalization has gotten more specific. With a number of bills working in Congress, and one which has passed committee, it appears that federal law may change soon to tax and regulate cannabis. 

Why Now?

After so much time, why could we finally be close to federal legalization? It’s a culmination of three “R’s”: regulation, revenue, and reform.  

Regulation

We’ve needed to bring cannabis out of the back alleys for years, standardizing production, labeling, permitting, and distribution. We believe that the cannabis industry needs to be legalized, regulated, and taxed for the safety of the general public and as an economic driver of the communities that cannabis businesses serve. The experiences of states which have legalized the product provide examples of how this may happen. 

Revenue

The impacts of COVID-19 have made state budgets a hot item. States need money and, if the federal government is going to bail them out, cannabis legalization would provide an excellent funding source. New Frontier Data estimates that the U.S. legal cannabis industry could be worth $29.7 billion by 2025. The industry saw a 32% growth in 2019 just over the previous year. The need for revenue will be a defining factor in legalization, driving the government’s decisions over the next few years.

Eczema is a condition that targets a large percentage of people across the U.S. Known for irritating the skin and leaving it patchy and red for stretches of time, eczema occurs because of a combination of genetics and environmental situations.

Among other things, flare-ups of the condition can result as a result of pollen in the air or the types of foods and drinks that one ingests.

Could CBD provide some relief for this type of skin inflammation?

Referring to a group of skin conditions that can manifest in different ways, eczema is traditionally treated by managing its most prevalent symptoms to prevent flare-ups. The condition is not contagious and can be very different from person to person, with the most prevalent symptom manifesting as patches of itchy skin.

There is no cure for eczema, which is why people experiencing this ailment have to be careful, moisturizing their skin often, while also looking for effective ways to avoid triggers. The ways in which people treat their eczema are varied and personal, ranging from warm baths and gentle soaps to wearing cotton clothes that won’t irritate the condition or cause they discomfort.

Since its rise in popularity, CBD has garnered some acclaim within the beauty and skincare industry. Although there’s as yet a lack of scientific research on CBD, many experts are hopeful regarding its promise on eczema.

The link between cannabis and a heightened risk of stroke has been studied multiple times as THC turns “on” the CB1 and CB2 receptors in the central nervous and cardiovascular systems.

“As these products become increasingly used across the country, getting clearer, scientifically rigorous data is going to be important as we try to understand the overall health effects of cannabis.” — Robert Harrington, M.D., president of the American Heart Association 

In late 2019, a report was published in the American Association for the Advancement of Science (AAAS) that found, “frequent cannabis (marijuana) use among young people was linked to an increased risk of stroke” as well as an increase on heart rhythm disturbances, or arrhythmias. Published by the American Heart Association, the study did not look into the direct connection between stroke and cannabis use, rather it discovered it as a potential link.  

The study found that younger cannabis users had a heightened risk of stroke, compared to individuals that didn’t use cannabis. Interestingly, the study also cited that, “The cannabis users were also more likely to be heavy drinkers, current cigarette users and e-cigarette users, which may have also influenced their risk, even though the researchers adjusted for those factors in their analysis.”

Study author Tarang Parekh, M.B.B.S., M.S., a health policy researcher at George Mason University in Fairfax, Virginia had this to say: “Young cannabis users, especially those who use tobacco and have other risk factors for strokes, such as high blood pressure, should understand that they may be raising their risk of having a stroke at a young age.”

According to a new study, Colorado users question the dangers of driving while high and desire more research about legal limit and self-assessment guidelines.

Cannabis consumers labeled Colorado policies about driving while under the influence of marijuana “out of touch,” although not in a way you might expect. A two-year study from the Colorado Department of Transportation (CDOT) found Colorado marijuana users considered driving while high was, more often than not, not that dangerous.

They were also skeptical about many laws and regulations involving cannabis use and getting behind the wheel. Many heavy users relied on a “gut check” to determine whether they could drive safely or not after using.

“The more often people consumed cannabis, the less dangerous they considered driving under the influence of cannabis to be,” the study’s authors wrote. “Respondents who use cannabis typically believed individual differences in consumption or tolerance were mitigating factors in someone’s ability to safely drive under the influence.

“Most users are critical of laws, policies, and enforcement surrounding driving under the influence of cannabis,” researchers continued. “Cannabis supporters saw government policies as out-of-touch.”

Less than a month after Governor Northam signed the bill to legalize medical marijuana, the Virginia Board of Pharmacy voted to deny MedMen's request for an extension and rescinded their conditional license to operate a medical marijuana dispensary in Staunton. 

The Board of Pharmacy voted to move forward with a Request For Applications with the timeframe to be announced, according to Virginia NORML's website. This means medical cannabis companies can once again apply for a license in the state.

But this also means the location for the facility can be anywhere in our health service area. Staunton is located in health service area one, which encompasses the Shenandoah Valley and Charlottesville. The Staunton location was tied to the facility that was awarded the conditional permit in 2018. Originally, this facility was PharmaCann. 

"As with the initial round of applications to the Board of Pharmacy, I hope Staunton is still a point of interest for other potential entities," said Billy Vaughn, Staunton's Community and Economic Development director. "Maybe the PharmaCann/MedMen site in Green Hills comes in to play."

In May 2019, PharmaCann Virginia purchased the land at 3 Industry Way in Green Hills Industry and Technology Center for $212,352, according to city records.

A group of Montana cannabis activists said on Friday that it had collected enough signatures for two proposed ballot measures that would legalize the recreational use of marijuana in the state to qualify for the November election. The group, New Approach Montana, submitted petitions for the two initiative proposals to government officials, who will begin the verification process.

The group submitted more than 80,000 signatures for Constitutional Initiative 118, an amendment that would set the legal age for purchasing cannabis in Montana at 21. Another 52,000 signatures accompanied a petition for Initiative 190, a separate statutory ballot measure that would permit recreational marijuana commerce in the state while setting a 20% tax on retail sales.

For the constitutional amendment initiative to qualify for the ballot, supporters must submit at least 50,936 valid signatures from registered voters and must meet a minimum threshold of signatures in at least 40 of the 100 Montana state House of Representatives legislative districts. For the statutory initiative to be certified for the November election, 25,468 verified signatures including a minimum from at least 34 districts must be turned in to government officials.

Broad Support For Legalization

Pepper Petersen, a spokesman for New Approach Montana, said that the campaign had taken precautions to help slow the spread of the COVID-19 coronavirus while collecting signatures. Those gathering signatures wore masks and supporters were given wrapped, single-use pens to sign the petitions. Despite the extra measures and the limited time to canvass following a mandated stay-at-home order, the campaign was able to gather signatures from every one of the state’s House districts.

“We think it represents what’s going to happen in November,” Petersen said. “There’s going to be an overwhelming support for this in every corner of the state. There’s not a legislative district that’s not represented in the signatures. We feel like the support out there is deep and wide, and it’s really exciting.”

These Two Pot Stocks Could Prove to be Important For The Last Week of June

The year 2020 may go down as the worst in memory, but not for cannabis beverage manufacturers.

According to a report by Prohibition Partners, the global cannabis drinks market will be worth $1.82 billion by the end of the year. That number is driven by consumers looking for cost-friendly relief from the current COVID-19 pandemic.

Why are so many obeying their thirst?

“When facing an economic crisis, consumers will be more willing to buy less costly luxury goods," says Stephen Murphy, Managing Director of Prohibition Partners. "Cannabis-infused drinks are an ideal example of this and Prohibition Partners has found that cannabis products are expected to benefit from this period of self-isolation."

The stockpile effect

Consumers are stockpiling cannabis products in a bid to ensure that their supplies are secured indefinitely. As part of the “home entertainment line-up” in regions where cannabis is legal, beverages can expect to benefit from this trend in hard times to watch more television and spend more on little extras for their in-home leisure. The current stressors of 2020 have already proven to be a boost to cannabis-based products. Despite the current inevitable economic downturn, cannabis is still set to record impressive growth as consumers look for products to help them relax and de-stress and as the most popular format, drinks will likely be the greatest beneficiary.

Dosage is very important for cannabis products. The accuracy of them allows people to understand how the drug and its compounds interact with their bodies, helping to prevent overdoses and providing a point of reference when trying new brands and strains.

A recent report found that 27 per cent of leading CBD brand products in the U.S. don’t contain the dosages they indicate in their labels. The percentage is worrisome, but is nonetheless one that has improved over the past couple of months.

While the city of Denver, and the state of Colorado as a whole, has been on the forefront of recreational and medical cannabis, Denver just issued the first official research and development license this past Tuesday. Med Pharm, the group granted the license, will be looking at how cannabis could potentially provide relief for Alzheimer’s patients. 

Although it has been approved on a local level, the group still needs to submit their study plan to the state. But the researchers at Med Pharm are feeling good about the venture. They have already decided that they will host a trial in which 150 Alzheimer’s patients will be administered either cannabis or a placebo. Those in the non-placebo group will take cannabis orally once daily. 

“It’s really exciting,” explains Dr. Tyrell Towle, Director of Chemistry and Research at Med Pharm. “We’re finally doing research that we should have been doing decades ago, quite frankly. “We’ll be giving caregivers surveys. The caregivers of these patients will be filling out “are they sleeping better, are they easier to deal with, are they experiencing less agitation, are they maybe forgetting fewer names”.”

“We really want to understand how these Cannabinoids and the compounds we put together can help people,” adds Albert Gutierrez, CEO of Med Pharm.  “We’ll be monitoring that throughout the study so that we can see if the symptoms that are improving, are correlating to an improvement of blood flow in certain areas of the brain.” 

“We are excited for the possibilities for this type of medical research to find effective research for a whole host of illnesses,” says Ashley Kilroy, director of Excise and Licenses and Office of Marijuana Policy for Denver. “Also, we really see this license-type in particular, a license that could attract some of the best and brightest to Denver to attract this type of work.”

Women tend to experienced the same acute effects of cannabis as men at a lower dose of THC, according to new research published in Psychopharmacology which sought to mimic real-world smoking practices.

“We know from population survey data that men are more likely to use cannabis than women, but it seems like women experience more severe cannabis-related harms,” said study author Justin Matheson, a PhD candidate at the University of Toronto.

“Research in animals suggests that this is because females are more sensitive to the effects of THC, the primary psychoactive compound in cannabis, and that this might be due to differences in the way THC is metabolized in females. However, there has been relatively little human laboratory evidence to suggest sex differences in the acute effects of THC.”

In the double-blind study, 91 healthy cannabis users smoked a single cannabis cigarette (12.5% THC or placebo) before completing subjective effect scales and cognitive tests. The researchers also monitored their vital signs, such as blood pressure and body temperature. The participants used cannabis about 1 to 4 times per week and were 19 to 25 years old.

The researchers found that female participants tended to smoke for just as long a duration as males. However, women tended to smoke less of the cannabis cigarette.

The hype surrounding the use of CBD all over the world has been attributed to the fact that it is very potent. Scientists have done a great job of enlightening people with every new finding that they discover. Additionally, CBD does not have side effects since it is free of THC, a cannabinoid responsible for intoxicating the brain and giving people a euphoric feeling.

CBD has a close connection with the health of the liver. It has been found to boost its health by preventing or mitigating various liver illnesses. When people consume the compound, it interacts with the endocannabinoid system, particularly the CB1 and CB2 receptors, which are connected with the functionality of the liver.

Apart from the liver, CBD is also used to manage other health conditions such as cancer, arthritis, epilepsy, anxiety, and schizophrenia, just to mention a few. However, we will focus on its benefits on the liver for now. Without further ado, let us dive deep into great insights that you should know on how CBD helps in dealing with liver diseases.

How the Liver Works

The liver is a very active organ in the body. First, it is involved in the detoxification of the body. A couple of biological metabolisms of the body also occur in the liver. That is why a lot of medications, supplements, steroids, and alcohol take a toll on the liver. Furthermore, the organ plays a role in the production of digestive enzymes in the body.

The liver is prone to a plethora of illnesses such as hepatitis, cancer, cirrhosis, and many others. Current research shows that CBD oil or extract is medically used by doctors in the management of some of these diseases.

Marijuana legalization in South Dakota could see daylight in 2020. The state passed measures to legalize both recreational and medical marijuana. Luckily, both of the measures collected the required signatures before the COVID-19 pandemic hit. The only issue was if the pandemic didn’t retreat by November, it would be hard for people to vote on the measures. Now that lockdown restrictions have been easing, voting should be possible. So, the fate of legalization in South Dakota lies in voters’ hands.

South Dakota voters will decide on marijuana legalization

The state’s marijuana legalization group “South Dakotans for Better Marijuana Laws” initiated two proposals. The good news amid the pandemic is that both of the measures gathered enough signatures. As a result, they qualified for the ballot. The voters will decide on both proposals in the upcoming November elections.

The support for marijuana legalization is huge in the state. Many members of the campaign group think that cannabis being illegal at the federal level prevents productive people from getting jobs. People have to deal with drug conviction charges related to marijuana even though it’s legal in most states. As reported by KELOLAND News, the group held a zoom conference recently. The group presented a case stating how “legalizing and regulating marijuana would free up prisons and jails” and additionally bring in “$30 million of tax revenue by 2024.”

However, some local law enforcement questioned approving the measure. The group said that there would be restrictions as well. Marijuana legalization will be in voters’ hands. They will decide whether or not to legalize recreational and medical marijuana in the state this year.

Legalization would boost cannabis companies

The soaring demand for cannabis amid the pandemic shows that it’s important in the US. More states have been focusing on legalization efforts despite the pandemic. They think that legalization could help states recover financial losses amid COVID-19. Notably, the states include Texas and New Mexico. The U.S. Virgin Islands’ governor also stressed that marijuana legalization could lead to economic recovery. To learn more, read U.S. Virgin Islands’ Governor Supports Marijuana Legalization.

An increased tax on flower has forced legally operating dispensaries to increase their prices, which makes it hard for them to compete with the black market.

Steeped in history, brimming with mythology, and home to beautiful beaches, rich Mediterranean food, and sights like the Parthenon, Greece is also a country fighting economic fallout, and trying to revive its wounded economy. Could the legal medical cannabis industry be Greece’s ticket back to economic security?