Weed Week: Here’s when a legal medicinal cannabis subscription becomes illegal (sort of)
This week a local piece of cannabis news caught our eye, in the form of a unique legal case out of Adelaide.
The case involved a medicinal cannabis patient, Brendon Peters, who had legal prescription for medicinal cannabis to treat his multiple sclerosis.
Peters was pulled over by police for a saliva-based drug test, and was shown to have THC in his system — the psychoactive component of cannabis.
As a result he got hit with a drug-driving charge, which meant a fine and loss of licence.
Technically, Peters was subsequently found guilty of the offence in the Adelaide Magistrates Court.
But in a notable legal decision, Magistrate Susan O’Connor then dismissed the charge without a conviction. O’Connor factored in Peters’ circumstances as well as the fact he wasn’t materially impaired or a danger to other drivers at the time of the drug test.
It’s good news for Peters, but it raises interesting questions about where medicinal cannabis use fits Australia’s current regulatory framework around marijuana laws.
For their part, police have advised that medicinal cannabis users that consume products that contain THC should refrain from driving for a period of 48 hours after use.
And speaking of grey areas, the ACT’s new cannabis laws are set to come into effect this Friday. However, they remain in contradiction with federal legislation, amid continued speculation the Morrison government may look to overrule them.
Things were a little more black and white for ASX-listed cannabis stocks this week — although not necessarily in a good way.
Of the 32 cannabis-related stocks tracked by Stockhead, just two gained ground last week. Five were unchanged will 25 companies finished in the red. Not ideal.
The price action was evidence of a sector-wide cool-off, after cannabis investors’ fortunes showed signs of turning in recent weeks in the wake of a brutal 2019 bear market.
Below is Stockhead’s latest summary of weekly and annual price performance for ASX-listed cannabis stocks.
Scroll or swipe to reveal table. Click headings to sort.
In that context, the broader falls across the market could be due to some profit-taking from investors after a stronger start to the year.
In a market update yesterday, Cann Group (ASX:CAN) dialled back some of the optimistic growth projections for its Mildura production facility.
After flagging annual production capacity of 70,000kg of dry cannabis flower, the company said it will start by establishing a 12,500kg per annum facility that it aims to complete by the end of this year.