It was a mixed week for cannabis news. There was important positive news – on global cannabis sales, cannabis biopharma, and cannabis finance. There was also more frustration, all coming from the U.S.: the FDA, more woes for U.S. hemp farmers, and yet more cannabis obstructionism from Republican politicians.
Monday, The Seed Investor exposed the FDA on CBD. The U.S. Food and Drug Administration claims (among things) that cannabidiol, better known as CBD, poses “real risks” of liver injury.
Nonsense. We showed how CBD is much less toxic than virtually any mineral supplement we consume on a regular basis to maintain human health. In absolute terms, it’s less toxic than common vitamins as well – even vitamin C.
Wednesday, we reported on news from cannabis biopharma company, InMed Pharmaceuticals (CAN:IN / US:IMLFF). InMed announced that it has become the first biopharma company to advance the (rare) cannabinoid, cannabinol (CBN) to clinical trials in a cannabis-based drug.
The cannabis plant contains roughly 100 known cannabinoids. However, most of them (like CBN) only occur in very low quantities. This has prevented research on most of these cannabinoids – let alone any commercialization. InMed has proprietary technology that can isolate and synthesize even rare cannabinoids like CBN.
Thursday, we analyzed some big numbers on global cannabis sales in 2019. Global sales soared by 48% last year – a year in which cannabis Chicken Littles were constantly shrieking that the sky was falling on the legal cannabis industry.
Last year was “a bad year” for the cannabis industry – and global sales soared by 48%. The Seed Investor explained why 2020 is looking like a good year for the cannabis industry. And we pointed out how and why the cannabis growth story is not a multi-year window, but rather a multi-decade opportunity. Cannabis bears can put that in their pipes and smoke it!
Also on Thursday, we attacked the laughable cannabis impaired-driving laws that exist in most jurisdictions. One such law has already been struck down. Most of these impaired driving laws will soon follow. We explained why there is absolutely zero scientific foundation for these laws.
The Seed Investor wrapped up Thursday coverage with big news on Cresco Labs (CAN:CL / US:CRLBF). One of the leading MSO’s has just secured non-dilutive debt financing of up to US$200 million. Cresco is expected to drawdown on US$100 million on or around the end of this month. It’s good for Cresco. It’s more liquidity for the entire U.S. cannabis industry.
Friday, The Seed Investor focused on some of the woes in the U.S. cannabis industry. First, we reported on some terrible news for Arizona hemp farmers: over 40% of crops are testing above the legal limit for THC – and will be destroyed. We surveyed the sorry state of the U.S. hemp industry today and pointed fingers at the current Republican administration.
We closed out our coverage with the week with a look at the state of Wisconsin. More than 80% of state voters want medicinal cannabis legalized in that state. Wisconsin’s governor is on board. But state Republicans in both the Assembly and the Senate are blocking any meaningful reform.
The Big Picture for the cannabis industry (as noted above) continues to look fantastic. Rapid growth is occurring – despite rather than because of the cooperation of politicians in most U.S. states and Canadian provinces.
But the genie is out of the bottle and the Cannabis Revolution is underway. Now is the time for investors to be positioning themselves for the opportunities that lie ahead.