Marijuana Business Magazine - April 2018

¬NDUSTRY DEVELOPMENTS National & ¬nternational News Developments What’s Happening: Judge Throws Out National Cannabis Legalization Lawsuit A lawsuit against the federal government on which several cannabis legalization advocates had pinned their hopes has officially lost – at least its first legal battle, anyway. Judge Alvin Hellerstein, of the U.S. District Court for the Southern District of New York, ruled that the plain- tiffs “failed to exhaust their administrative remedies” and granted a motion by the U.S. Justice Department to dismiss the case. The suit argued that the Controlled Substances Act of 1970 is unconstitutional and asked that marijuana be removed from the schedule of controlled narcotics. A victory would have effectively legalized marijuana on a national level by “de-scheduling” the plant. New Rules Open Door to Fresh Funding, M&A for Canadian Cannabis Companies in US The flow of financing and acquisitions involving cross- border marijuana companies is expected to pick up after new risk-disclosure rules were unveiled that provide greater clarity for Canadian companies with U.S. opera- tions, said analysts and executives. The updated requirements from the Canadian Securi- ties Administrators were anticipated after the regula- tory group said in January it would review whether its disclosure-based guidelines were appropriate following U.S. Attorney General Jeff Sessions’ decision to revoke the Cole Memo, a key marijuana safeguard. The CSA’s new rules more or less allow companies to continue operating as they had been, but with stricter disclosure standards. US Senator Gives Ground in Fight Over Sessions Memo, Marijuana Policy Colorado’s junior senator, Republican Cory Gardner, blinked first in a standoff with U.S. Attor- ney General Jeff Sessions. Gardner said he will stop blocking appointees from the Department of Justice in retali- ation for Sessions’ revocation last month of several nonbinding cannabis-related policy memos. But accord- ing to a press release from Gardner’s office, the senator will continue to block other DOJ nominees “as discussions continue.” After the Sessions Memo roiled the MJ industry, Gard- ner delayed confirmation votes on more than two dozen appointees for posts as U.S. marshals and U.S. attorneys. Gardner’s press secretary, Casey Contres, said in mid- February three nominees were still being blocked, and that number would likely increase as more appointments are made by Sessions. Cory Gardner 18 • Marijuana Business Magazine • April 2018