The Daily Hit is a recap of cannabis business news for October 4, 2022.
ON THE SITE
Cantor Gives Irwin Naturals a $7 Target Price
Cantor Fitzgerald analyst Pablo Zuanic initiated coverage on supplement company Irwin Naturals Inc. (OTC: IWINF) with an overweight rating and a $7 price target. The stock currently trades at roughly $1.58 per share. The shares are listed on the Canadian Securities Exchange (CSE), and with limited free float, but a NASDAQ listing is possible in the future. Read more here.
GOP Tries To Tie Cannabis To Suicide, Violent Crime
Archconservative Republicans and their network of influence have recently taken a staunch stand against the legalization of marijuana. The largest Congressional GOP faction affirmed its national position on cannabis, saying that it should remain federally prohibited and suggested adolescent consumption could be tied to suicide and violent crime with more studies. Read more here. Read more here.
Psychedelics Law Being Prepped For Florida
While Florida digs out of the extensive damage caused by Hurricane Ian, the business of lawmaking and regulation for the medical psychedelics industry continues, with the hope of quickening access to psychedelics for the large veteran population in the state and for others needing access to legalized mental health treatment in the state. Read more here.
Medical Marijuana Inks Asset Purchase Deal To Expand Hemp Footprint
Medical Marijuana, Inc. (OTC: MJNA) — formerly known as GRN Holdings — has entered into an agreement to purchase assets from a hemp and natural wellness company for an undisclosed amount. Bill Andreoli, the president of seller MFINITY Global will become the president of Medical Marijuana, Inc. subsidiary, Kannaway, LLC. Read more here.
Not Everyone Is A Fan Of Fast-Tracked Psychedelics
While the psychedelic renaissance continues to gather steam, there is a growing uneasiness about the pace of the industry development. The excitement has been fueled specifically by three events: the report of MDMA going into Phase 3 clinical trial, the final phase of research on the road to FDA approval; the development of legalized psilocybin programs in Oregon (Measure 109) and elsewhere in the country; and the movements to decriminalize certain psychedelics that now includes 20 states (or a local government within the state) either already decriminalizing or looking into doing it soon. Read more here.
IN OTHER NEWS
Bright Green Corporation, Alterola Biotech Inc.
Bright Green Corporation (NASDAQ: BGXX), a company selected by the U.S. government to grow, manufacture, and sell cannabis and cannabis-related products for research, pharmaceutical applications and affiliated export, today announced that it has completed its previously announced strategic partnership and acquisition of 25% of the issued and outstanding common stock of Alterola Biotech Inc. (OTC PINK:ABTI), a U.K.-based pharmaceutical company focused on developing cannabinoid and cannabinoid-like medicines and products, for total consideration of $4 million. Read more here.
Biopharmaceutical Research Company
Biopharmaceutical Research Company, an active Drug Enforcement Administration (DEA) pharmaceutical cannabis license holder, announced the completion of a $20M Series A fundraise. This will enable the company to aggressively scale its operations and increase its product offering, conduct sponsored research, and execute on its go-to-market strategy. The round is being led by Intrinsic Capital Partners, with participation from Argonautic Ventures, Achari Ventures, AFI Capital Partners, Delta Emerald Ventures, Self Health America (SHAC) and a number of preeminent family offices. Read more here.
Decibel Cannabis Company Inc., Breath of Life International Ltd.
Decibel Cannabis Company Inc. (TSX-V: DB) (OTCQB: DBCCF), a cannabis producer, announced it has secured an on-going supply agreement with Breath of Life International Ltd. to launch Decibel’s Qwest brand and cannabis products in Israel. The supply agreement is for $4.8 million of premium cannabis product, with the first shipment expected in the fourth quarter. Read more here.
Sweet Leaf Madison Capital
Sweet Leaf Madison Capital, a nationwide provider of tailored debt financing solutions for the middle-market cannabis industry, today announced the closing of a loan for $207,000 to Koach Enterprises, a cannabis startup in California creating a high-end brand through vertical integration. The funds will be used to purchase energy-efficient, top-of-the-line LED grow lights from Spectrum King LED. Read more here.
Archconservative Republicans and their network of influence have recently taken a staunch stand against the legalization of marijuana.
The largest Congressional GOP faction affirmed its national position on cannabis, saying that it should remain federally prohibited and suggested adolescent consumption could be tied to suicide and violent crime with more studies.
The 156-member caucus named the Republican Study Committee (RSC), published a 12-page agenda piece with more than 80 policy recommendations and 10 ideological tenets meant to reiterate the latest update in archconservative doctrine.
The section that touches on the issue of cannabis, titled “Protecting Children from Dangers of Drugs,” states that cannabis’ federally illegal status “has not stopped more and more states and localities from legalizing it under their own laws,” the statement says.
“This has led to an explosion of marijuana use among children, which is having a hugely negative impact on their health. Congress should not legalize marijuana, while also taking steps to constrain this new industry’s ability to harm children.”
The write-up adds, “At the very least, Congress should direct the CDC to gather data and conduct studies on the health impacts of THC use during childhood and early adolescence with a special focus on deaths by suicide and those involved in violent crime to provide Congress and the public with further information about these dangers.”
The memo also says that Congress should pass RSC chairman Rep. Jim Banks’ (R-IN) bill — supported by more than one-fourth of the Senate, Marijuana Moment reported — called, “Protecting Kids from Candy-Flavored Drugs Act,” which would raise criminal penalties for those who manufacture or distributes drugs “that are disguised as candy,” such as edibles.
In a press release regarding the agenda, Banks said that the “Biden presidency has failed America’s families.”
“Over the past two years, families have lost savings, flexibility, and control over childrearing to increasingly hostile and far-left ideologues,” he added. “Republicans need to position themselves as the party of families. Next Congress we need to focus on reforming the tax code to create more families, passing pro-life legislation, protecting parents’ pocketbooks, and giving them back control over their kids’ education.
All these policies are popular and proven, and we’ve seen the difference parents can make on election day. If Republicans can contrast our efforts with Democrats’ record of intrusion and control then I think parents will play a pivotal role in 2022 and 2024.”
RSC released a policy agenda that empowers parents, protects children, and builds an economy that puts families first.
The consensus around the issue isn’t unanimous, though.
“There’s never going to be 100 percent agreement on any issue, in any party,” a spokesperson for Brian Mast (R-FL), who co-chairs the Congressional Cannabis Caucus, told Marijuana Moment. “Rep. Mast shares the Committee’s desire to protect kids from dangerous substances, but believes that, ultimately, marijuana legalization is an issue that should be left up to the states.”
“He would like to see Congress focus its efforts on national security issues including securing the border and keeping drugs—especially those laced with fentanyl and other deadly substances—from making their way into our communities,” the Mast staffer said.
A spokesperson for Rep. Tom McClintock (R-CA) — who, along with Mast, voted for a comprehensive, Democratic-led marijuana legalization bill in April — told the outlet that her boss “disagrees with that provision” of the RSC memo.
Also last week, GOP pundit and former top Trump advisor Kellyanne Conway appeared on Fox News to criticize openly pro-cannabis Pennsylvania Lt. Gov. John Fetterman’s decision to hang up a flag displaying a marijuana leaf on the balcony of the Pennsylvania state Capitol. Fetterman is a Democrat.
“He put the marijuana flag up — he thought that was funny,” Conway said. “He’s trolling his opponent — he thinks that’s funny.
Conway also appeared to falsely conflate deaths from fentanyl overdoses in Pennsylvania with marijuana consumption in the state.
She added, “Here’s what’s not funny: that there’s been a doubling of overdose deaths in Pennsylvania while he’s been in office from 2015 to 2021. Fentanyl is rankling every corner of this state.”
The claim that the state has seen a doubling of marijuana overdose deaths is not true. Additionally, Fetterman has only been in the state office since 2019.
Overdose deaths in the state rose 3% from 2020 to 2021, according to the Pennsylvania Office of Drug Surveillance and Misuse Prevention. Most occurred due to opioids, as the proliferation of deadly prescription drugs and their illicit spin-offs remain an actual crisis. No death occurred due to cannabis consumption.
Additionally, national data from Centers for Disease Control and Prevention on drug-involved overdose deaths from 1999 to 2020 does not even list cannabis in its metrics.
In response to Conway’s Sept. 26 commentary, former Washington Post correspondent David Weigel pointed out that CDC data on 2020 fatal drug overdoses numbers in the state has eclipsed any other where cannabis was legally allowed, lending to more commonly corroborated findings that cannabis has yet to reportedly kill someone.
“In Pennsylvania specifically, troubled areas are riddled with people struggling with opioid addiction, which was documented in the Kensington neighborhood of Philadelphia last month. But Salonreports that the majority of central Philadelphia is gentrified and the drug crisis is better off than it has been in the past. Focusing only on the state’s troubled areas doesn’t provide an accurate picture,” High Times wrote.
Fetterman is currently facing off against GOP celebrity doctor Mehmet Oz for a U.S. Senate seat this election season.
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