The Biggest Three Things that Happened in the Cannabis Space So Far This Month
1. M&A Activity
Canada’s Canopy Growth has announced its intent to acquire U.S. Acreage Holdings for $3.4 billion, but there’s a catch…
The merger would be the first major cross-border cannabis merger. Canopy Growth, which is the world’s largest cannabis company, has announced plans to buy New York-based Acreage Holdings, one of the largest U.S. based marijuana firms with operations in 19 states. However, the deal will not be finalized until cannabis becomes federally legal in the U.S. The acquisition must by delayed because the Toronto Stock Exchange (where Canopy Growth is listed) prohibits publicly listed companies from possessing any illegal holdings, which currently includes all marijuana businesses in the U.S. Though the deal is delayed, it shows a high level of confidence from top cannabis corporations that marijuana will be federally legalized in the near future.
Tomorrow, on the long-standing cannabis holiday of April 20, Carl’s Jr. plans to pilot the country’s first CBD-infused fast food burger.
The CBD-infused burger, fittingly named the ‘Rocky Mountain High,’ will be offered at a location in Denver. If the burger pilot is successful, then the company will consider expanding the product nationally. A 2019 National Restaurant Association survey found that 75% of chefs believe CBD and cannabis-infused foods will be this year’s hot industry trend.
With April 2
The US Senate is acting fast to approve legislature aimed at increasing marijuana businesses’ access to banks, recently reintroducing the STATES Act to address the problem.
CBD is quickly finding its way to storefronts across the country. Recently, Walgreens, CVS, and the Vitamin Shoppe announced plans to start carrying CBD, despite marijuana remaining a Schedule 1 drug under U.S. law. However, cannabis businesses are still prohibited from essential banking services, including loans, credit cards, and payroll services.
To address the problem, a House panel voted 45-15 last month to support the Marijuana Banking Bill, which would allow banks to provide services to Marijuana businesses. The bill still needs to pass the full Senate, but in the meantime, another bill has been introduced to solve the problem from a different angle. The STATES bill, which has gained significant bipartisan support, would amend the Controlled Substances Act (CSA) of 1970—which designated marijuana as a Schedule I substance—to restrict federal enforcement of the CSA against individuals and companies in states where cannabis is legal. Attorney General William Barr spoke to a Senate subcommittee last week endorsing the bill.
0thtomorrow, we found ourselves wondering how 4/20 became a cannabis holiday to begin with. Turns out there are a few possible explanations, including a myth that there are 420 active chemicals in marijuana. Read this Vox article for more history on the holiday.