Weed Week: Illinois legalises recreational pot use… and now, the US Feds can’t interfere
Link copied to
This week Illinois became the first US state to legalise retail sales of recreational marijuana through its legislature — rather than by a voter-led initiative.
From the start of 2020, anyone over the age of 21 will be allowed to possess up to 30 grams of cannabis, and adult visitors will be allowed to possess up to 15 grams, Rolling Stone reported on Tuesday.
On top of that, the bill allows medical marijuana patients to grow up to five plants at home – but it must be strictly for medical not recreational purposes.
According to Marijuana Business Daily, the move could generate up to $2.5 billion a year.
But Bloomberg reported a more conservative figure of $1 billion. Either way it’s still a fair bit of cash for pot sellers — and the government via taxes.
Meanwhile, Forbes says the new legislation is historic, but Illinois is going to run out of cannabis.
An opportunity for Aussie pot growers perhaps?
Also good news for US states making big cannabis legislation moves – the Federal US Department of Justice is not allowed to meddle.
According to the Cannabis Law Report, the US House of Representatives has passed an amendment that prohibits the Justice Department from using funds to prevent states, Washington DC and US territories from implementing their adult-use and medical marijuana programs.
Another interesting move this month has been the decision by an influential UK church to start investing in medical marijuana.
Apparently, the Church of England is lifting its “self-imposed” ban and is now allowed to invest some of its £12.6 billion ($23 billion) kitty in the lucrative market – so long as it’s legal and only if it’s medical marijuana.
Medicinal cannabis company Althea (ASX:AGH) told investors earlier this week it has been chosen to supply the first UK National Medical Cannabis Pilot.
The pilot is aiming to enrol 20,000 patients before the end of 2021.
Last week, the company revealed that for the first time, a UK patient had been prescribed Althea products by a doctor from within the company’s network of UK medical professionals.
Althea is up 293 per cent since the start of this year.
Impression Healthcare (ASX:IHL) has started a phase 2a randomised controlled clinical trial to investigate the effect of cannabidiol (CBD) mouthwash and toothpaste on gum disease versus a placebo.
The trial will include 40 participants using the toothpaste and mouthwash three times daily over 30 days.
Impression has rallied 125 per cent since the start of 2019.
CropLogic (ASX:CLI), which provides technology able to help increase yields of a range of agricultural products, this week revealed it had started planting at its trial hemp farm in Central Oregon.
The company will crop about 500 acres of CBD producing hemp over five sites using two different irrigation methods: aerial spraying circular pivot methodology and drip tape and mulch plastic methodology.
CropLogic says the drip tape and mulch plastic methodology is a common irrigation method used for hemp on small scale farm.
Although it is a more “intricate” process than other methods it is said to have a positive impact on yield in both plant volume and CBD percentage.
Shares moved over 14 per cent on the news on Tuesday, but retraced their gains and slipped lower on Wednesday.
CropLogic is however up 236 per cent since the start of the year and has gained 17 per cent in the past fortnight.
Suda Pharmaceuticals (ASX:SUD) has successfully raised $3.4m in an oversubscribed rights issue.
The company recently signed a binding term sheet with Cann Pharmaceutical Australia, a subsidiary of Israeli group Better Holdings, to develop and supply a cannabis mouth spray.
Suda’s capital raising received such interest the company said it will issue more shares to raise an extra $455,038.
Shares are down 30 per cent year-to-date and 11 per cent over the past fortnight.
Bod Australia (ASX:BOD) has secured an agreement with Burleigh Heads Cannabis to distribute its medicinal cannabis product, MediCabilis.
As part of the deal, Bod “will gain access to BHC’s wholesale network and partner company Cannabis Doctors Australia”, which provides education and distribution services to the Australian medical industry.
Bod shares are down 23 per cent since January and 4 per cent over the past fortnight.
European-based MGC Pharmaceuticals (ASX:MXC) last week signed a deal with a Germany-based company to distribute its phytocannabinoid products in Germany, Austria and Switzerland.
MGC shares are up 30 per cent since the start of the year, but remain unchanged over the past fortnight.
Roots Sustainable Agricultural Technologies (ASX: ROO) shares got a jolt last Friday after announcing another sale of its Root Zone Temperature Optimisation (RZTO) cooling and heating technology, this time to an organic farm in California.
It marks the fourth sale of the company’s RZTO in the North American market.
Roots couldn’t sustain the rally unfortunately, with the price now down 30 per cent since January and down 3 per cent in the past fortnight.