Get a quick update on today’s essential news! We’ve condensed the most important information about Cannabis, Psychedelics, Crypto, and AI into a brief format, saving you time and keeping you informed as you start your day.
Cannabis:
The Cannabist Company (NEO:CBST, OTC:CBSTF) has acquired Ciencia Labs, known for cannabis products like Dreamt, Luchador, and Quell. Ciencia Labs, established by Benjamin and Carolina Vazquez Mitchell in California, will now reach national outlets through The Cannabist Company. This acquisition aims to expand product diversity and market presence. With low valuations, we expect a lot of mergers, acquisitions, and joint ventures over the next few years in Cannabis.
Ascend Wellness Holdings (CSE: AAWH.U, OTC: AAWH) introduced ‘Ascend CO-LAB for Social Equity’ to support equity in the cannabis industry. The program includes a February event with special merchandise and a “Round-Up” funding mechanism. The CO-LAB focuses on correcting disparities from the war on drugs through mentorship, education, and expungement clinics. Ascend and its customers donated over $650,000 to social equity causes, including significant contributions to the Last Prisoner Project. Another example of Cannabis companies and their clients helping in our communities.
Auxly Cannabis Group (TSX:XLY, OTC:CBWTF) announced the amendment and extension of its credit facility with a syndicate of lenders, including the Bank of Montreal. Another example this year of a Cannabis or related Cannabis company obtaining traditional bank financing.
Cresco Labs Inc. (CSE:CL, OTC:CRLBF) promoted Greg Butler to President, acknowledging his impact since 2020 as Chief Commercial Officer. Butler will manage operations and strategic planning. CEO Charlie Bachtell praised Butler’s contribution to the company’s growth, while Butler expressed eagerness to drive Cresco’s development in the cannabis industry.
There has been significant change within C-Level positions at cannabis companies this year, which company will be next?
Body and Mind Inc. (CSE: BAMM, OTC: BMMJ) is progressing with dispensary openings in Illinois and New Jersey for early 2024 and has sold its Nevada operations for $2 million to Vegas Brazil LLC. The Lynwood, Illinois dispensary is nearing completion, and construction on the New Jersey dispensary is advancing. Additionally, the company plans to issue 2.7 million shares to Bengal Impact Partners, LLC for advisory services. Lots of updates, a full report at TDR will be coming soon!
Cannabis Policy:
Rep. Andy Harris (R-MD) criticized the FDA’s cannabis rescheduling recommendation, calling it flawed and in violation of international treaties. He questioned the FDA’s analysis on marijuana’s abuse potential and public health risks, advocating for the DEA to reject the proposal. Harris’s letter reflects his opposition to cannabis reform and emphasizes the importance of a careful DEA review in line with treaty obligations and health considerations. The US must opt out or revise existing global treaties that list cannabis as a Schedule 1 narcotic, as these agreements are outdated and involve other countries.
Florida’s HB 1269 sets THC limits for recreational marijuana, with 30% for flower and 60% for other products, pending voter approval of legalization. Sponsored by Rep. Ralph Massullo (R), it aims to regulate health and market concerns. Governor DeSantis anticipates the measure reaching the ballot despite legal opposition. Are THC limits going to be one more aspect the government tries to control?
A Jersey City police union aims to dismiss a lawsuit over New Jersey’s off-duty police cannabis use, calling it baseless and politically driven. They argue state cannabis laws don’t clash with federal firearm rules, citing a Supreme Court case to support that federal laws don’t override New Jersey’s. The union claims the city’s legal concerns about officers using cannabis and carrying firearms are unfounded. Normally it is the Federal and States disagreeing on policy, this situation has a City, State, Union and Feds fighting about Cannabis.
Psychedelics:
The Indiana Senate committee approved a bill to fund research on psilocybin for treating mental health issues in veterans and first responders. Sponsored by Sen. Ed Charbonneau (R), it aims to assess psilocybin against current therapies. The bill, moving to the Senate floor next, could be effective immediately, with a July 1 deadline to organize the funding process. Great to note Republican Support in Indiana for Psychedelics.
Numinus Wellness Inc. (TSX: NUMI), a company dedicated to psychedelic-assisted mental health therapies, has initiated a $6 million financing through a public offering of 50,000,000 units at $0.12 each, led by Eight Capital and Stifel GMP, set to conclude by February 7, 2024. The effort, bolstered by key investments from Integrated V.C. and the Multidisciplinary Association for Psychedelic Studies (MAPS), is directed at enhancing its mental health care solutions. The offering’s structure includes a share plus a 24-month warrant, exercisable at $0.18. At TDR we wrote on January 16th that Numinus would likely announce some type of major change. Read all the details on the TDR website.
Crypto:
The U.S. has charged Robert Powell, Carter Rohn, and Emily Hernandez for their roles in a $400 million theft from a crypto exchange, reported by Bloomberg to be FTX, as part of a phone hacking scheme. Watch your SIM Card so you keep your Crypto Safe!
Green Block Mining must pay $400,000 for running unauthorized cryptocurrency mines in Alberta, following a settlement with the Alberta Utilities Commission. Mining regulations are increasing and are expected to become more stringent in the future.
AI:
During a call with analysts following Apple’s fiscal first-quarter earnings report, CEO Tim Cook suggested a potential AI announcement later this year, underscoring the company’s ongoing investment in AI technology. Stay updated with TDR as the AI world rapidly evolves in the coming year.
A report from the Burning Glass Institute and SHRM shows that generative A.I. will mostly impact high-paying roles in banking and tech, highlighting the need for worker training. It will have less effect on low-wage sectors. For a summary of the report’s findings, visit the TDR website.
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