Attorney General nominee William Barr sheds light on his approach to state-legal cannabis businesses, Ohio launches medical marijuana sales, Arkansas sees its first cannabis plants go in the ground – plus more important news from around the MJ industry.
Attorney General nominee William Barr said this week he would “not go after” state-legal cannabis businesses. But he also said the “current system is untenable” and that he supports a federal marijuana prohibition.
MJBizDaily takeaway: “While failing to demonstrate that he would be a friend to our industry in the present climate, Mr. Barr’s nomination has minimal material impact on either deal flow or operation of licensees,” cannabis attorney Steve Schain said.
Ohio’s kickoff day for medical cannabis sales went smoothly, with some dispensaries reporting brisk sales and no product shortages.
CY+, a Wintersville dispensary owned by Chicago-based Cresco Labs, saw 120 patients purchase cannabis and had supply on hand at the end of the day, said Jason Erkes, a spokesman for Cresco Labs.
MJBizDaily takeaway: Now that the long-delayed market is off to a steady start, sales are likely to increase rapidly.
More cultivation facilities are expected to come online soon, which likely will drive prices down and entice more patients to visit licensed dispensaries.
One licensed medical marijuana grower in Arkansas put plants in the ground, which is good news for a market that’s been delayed since voters approved it in 2016.
Arkansas patients have become so eager to buy MMJ that recently there was talk of them traveling to neighboring Oklahoma, which offers reciprocity to out-of-state MMJ cardholders to purchase medical cannabis.
MJBizDaily takeaway: Arkansas attorney David Couch, who wrote the legislation to legalize MMJ, said the launch of an in-state grower could curb the number of residents going to Oklahoma – but not completely. “I still think there may be a substantial number of people who will take advantage of the reciprocity,” he said.
The Cannabis Trade Federation (CTF), an upstart marijuana trade group, is gearing up to push for cannabis reform at the federal level.
CTF hired 15 lobbyists to work in Washington DC and push for movement on the States Act, which would shield state-legal marijuana programs from federal interference as well as resolve banking and taxation issues.
MJBizDaily takeaway: CTF’s 20-member board includes heavyweights from several high-profile cannabis companies. If the trade group’s aggressive play can get the attention of federal lawmakers and move the needle on the States Act, the association will have succeeded in reforming two key areas – taxes and banking – that have undercut cannabis company profits.
A $4.3 million verdict reached by a Los Angeles jury against a longtime marijuana businessman could be the first of many, given the increase in recent years of lawsuits filed by former MJ business partners against each other.
James Shaw, the defendant, was found guilty of fraud, breach of contract and more – all related to an L.A. dispensary he arranged to have built with investor money. He also faces a second suit, which was filed in June 2017. No trial date has been set.
MJBizDaily takeaway: Industry experts note that as the marijuana industry moves further into mainstream legitimacy, litigation will become increasingly common.
