Cannabis CEOs Hope Feds Notice Essential Status
CEO’s for U.S. based producers Cresco Labs, Curaleaf, and Green Thumb Industries told CNBC that coronavirus could accelerate federal legalization efforts. Charlie Bachtell of Cresco Labs stated, “When we all start to be able to lift our heads from this Covid experience, we are going to be faced with a scenario where a lot of jobs have gone away, a lot of economic development impact has disappeared. How are we going to bring that back? I think cannabis has to be part of that discussion.”Eight states determined that adult-use, otherwise known as recreational marijuana, was essential for sustaining life. With most businesses shuttered, and regulations altered to expedite home delivery, many of these states saw an increase in sales, with California, Washington, Nevada and Colorado reporting a 17% increase over last year. The second half of March, after shelter in place orders were set, the average purchase dollar amount saw a 47% increase.
“You can just point to the fact that we have been deemed essential, why are we not legal?”, voiced Matt Hawkins, managing partner for Entourage Capital, a private equity firm with $200 million invested in Green Thumb Industries and other marijuana producers. Curaleaf, Cresco Labs and Green Thumb Industries shares have all lost 60% of their value or more over the past year. All the CEO’s agree that federal legalization would help bring capital into the industry.
Weedmaps Hit with Federal Subpoena
Ghost Management Group LLC, parent company for Weedmaps, was served with a grand jury subpoena earlier this year. In a MarketWatch article this March over 30 high profile Cannabis companies were also listed in the subpoena.
The investigation seems to be focused on licensed and unlicensed advertisers on Weedmaps online website, primarily in California. Recently the Weedmaps sight has been purging unlicensed facilities.
The U.S. Attorney for the Eastern District of California, McGregor Scott, is carrying out the federal government’s investigation, which is ongoing. Cannabis attorneys around the nation are recognizing that the federal authorities are preparing for national regulatory schemes.
Colorado Starts Delivery
Medical Marijuana delivery services started last month in Denver and Boulder. Colorado was slow to roll out cannabis delivery services. Recreational delivery won’t be available till 2021.
Colorado was the first state to legalize Adult Use of marijuana as well as the first State to license medical marijuana dispensaries. Colorado is a local option state, which means it is up to the local municipalities to approve of delivery services prior to receiving state authorization.
Weedmaps provides an online portal for accepting delivery orders, which is available in several states, including California, Colorado and Michigan. Covid-19 has spurred a surge in curbside and delivery sales.
Ghost Management Group LLC, parent company for Weedmaps, was served with a grand jury subpoena earlier this year. In a MarketWatch article this March over 30 high profile Cannabis companies were also listed in the subpoena.
The investigation seems to be focused on licensed and unlicensed advertisers on Weedmaps online website, primarily in California. Recently the Weedmaps sight has been purging unlicensed facilities.
The U.S. Attorney for the Eastern District of California, McGregor Scott, is carrying out the federal government’s investigation, which is ongoing. Cannabis attorneys around the nation are recognizing that the federal authorities are preparing for national regulatory schemes.
Colorado Starts Delivery
Medical Marijuana delivery services started last month in Denver and Boulder. Colorado was slow to roll out cannabis delivery services. Recreational delivery won’t be available till 2021. Colorado was the first state to legalize Adult Use of marijuana as well as the first State to license medical marijuana dispensaries. Colorado is a local option state, which means it is up to the local municipalities to approve of delivery services prior to receiving state authorization.
Weedmaps provides an online portal for accepting delivery orders, which is available in several states, including California, Colorado and Michigan. Covid-19 has spurred a surge in curbside and delivery sales.
