1. Financial Activity
BofA Merrill Lynch has initiated coverage of the medical marijuana industry.
After Bank of America financed the largest M&A transaction in the North American markets to date (Constellation Brands’ $3.8 billion investment in Canopy Growth), it has announced plans to begin regular analysis on the industry, another indication that major corporations are expecting explosive growth in cannabis.
2. Consumer Trends
Yet another Canadian brewery announces plans to start brewing cannabis-infused beverages.
The largest independent brewery in Canada is planning to sell nonalcoholic, cannabis-infused beverages.New Brunswick-based Moosehead Breweries has formed a joint venture with Sproutly Canada, in the latest of a number of partnerships between alcohol and cannabis companies. Major corporations, such as Constellation Brands and AB InBev (maker of Budweiser), have placed large investments into cannabis-infused beverage companies. Despite all the activity, the cannabis-infused beverage market isn’t projected to be in full swing until 2020 due to regulatory and logistical hurdles.
3. Legislation Update
Social use laws have made progress in both Colorado and Las Vegas.
In Colorado, lawmakers have given their final approval to allow businesses to apply for marijuana social-consumption areas. They also approved a measure to allow home delivery of marijuana. Governor Jared Polis is expecting to sign both bills into effect. Earlier this week, Las Vegas voted 4-1 that any current cannabis retail operation can open social-use cannabis establishments. After one year, anyone can apply for the license. Several other states are considering legalizing social use laws, including Connecticut, Illinois, New Hampshire, New Jersey, New York, Pennsylvania, and Rhode Island.