Debra Borchardt
The Justice Department issued a memo on Thursday rescinding the Cole Amendment and announcing a “return to the rule of law.” In the memorandum, Attorney General Jeff Sessions directs all U.S. Attorneys to enforce the laws enacted by Congress and to follow well-established principles when pursuing prosecutions related to marijuana activities.
While the Cole Memorandum was be rescinded, this doesn’t affect the Rohrabacher-Blumenauer amendment that denies funds for the Justice Department to enforce the law. However, it does remove an umbrella of protection from all the businesses that have begun operating in the industry.
California’s legal sales of adult use marijuana got off to a strong start on Monday. There were lines out the door of the dispensaries that were licensed to be open. Not every city authorized this business so the dispensaries were limited creating crowds. Sales were brisk, but the seed-to-sale system still isn’t in place. To the consumer, it looks like everything opened smoothly, but to those in the industry, it’s been a chaotic start.
Green Market Report issued its first report this week called the 2018 California Cannabis Forecast, check it out in the Report section. The report gives projections on the sales figures that are expected, as well as the jobs that will be created.
Also this week, the drama between Aurora Cannabis (ACBFF) and CanniMed Therapeutics (CMMDF) continues. Aurora called CanniMed’s supply agreement with Newstrike bizarre. Newstrike is the company CanniMed said it would acquire and Aurora wonders why it would sign a supply agreement with a company it will own? Good question.
Cronos Group (PRMCF) announced a $30 million bought deal and then later in the day supersized it to $40 million.
Emerald Health (EMHTF) bought out an investor to the tune of $10 million and then raised $15 million this week.
And finally, Australia approved the export of medical marijuana.
