- Cultivated
- Posts
- Canada investigates cannabis consumer safety 🌿
Canada investigates cannabis consumer safety 🌿
Plus, High Tide pulls out of Germany deal
Good morning.
On Monday, we wrote about how new German Chancellor Friedrich Merz has said he wants to roll back legalization. That will be challenging, given Merz has to form a coalition, but the regulatory uncertainty might already have an effect on dealmaking.
Yesterday, Canadian cannabis firm High Tide pulled out of its planned acquisition of Purecan, a German medical cannabis firm. It’s a story we’re following as many Canadian cannabis firms like Aurora are growing through medical exports — with Germany’s consumer market as the biggest potential prize.
And we’ll have a special guest column from global cannabis industry expert Deepak Anand on what’s ahead for the German market later this week.
-JB & JR
This newsletter is 1,240 words or about a 10.5-minute read.
💡 What’s the big deal?
🇨🇦🍁🦫🏒
Health Canada investigates cannabis consumer safety
Driving the news: Consumer safety is one of the key promises of cannabis legalization.
With effective regulation, advocates say, consumers know exactly how much THC they’re ingesting when they buy legal — and that their product is free from dangerous contaminants like pesticides and heavy metals.
What happened: The legal industry in Canada still has a ways to go to clean up the supply chain.
According to a new report from Health Canada, a federal agency, roughly half of the samples they tested from legal stores had THC concentrations under 80% of the label claim.
Still, the results show that despite there being plenty of room for improvement, legal products are far safer than illicit products
Arsenic was present in 18% of legal products, and 44% of illegal products. And, 94% of illegal products contained multiple pesticides.
Go deeper: Read more from StratCann.
-JB
💬 Quotable
“We’re really excited now to not see residents of Pennsylvania crossing the border to buy cannabis and then coming back into our state. Now we can have that tax revenue right here in the state of Pennsylvania,” Ethos Cannabis CEO Gibran Washington said in a video posted by Gov. Josh Shapiro, advocating for legalization.
Watch it:
Legalizing adult-use cannabis will make Pennsylvania more competitive, bring in more money to help our communities, and create real opportunity for small businesses all across our Commonwealth.
Private sector leaders like Gibran know it’s time to finally legalize adult-use… x.com/i/web/status/1…
— Governor Josh Shapiro (@GovernorShapiro)
6:15 PM • Feb 24, 2025
⏩ Quick hits
Pennsylvania lawmakers advance cannabis legalization 🌿
Pennsylvania Sens. Dan Laughlin and Sharif Street said in a memo today they plan to introduce a bipartisan proposal to legalize adult-use marijuana to ensure consumer safety, boost the economy, and reduce crime. With neighboring states already benefiting from legalization, they say Pennsylvania must act to remain competitive and prevent the loss of tax revenue. Read it here.
California introduces new hemp bill 👀
California Senator Scott Wiener introduced bill SB 378 to combat the online sale of unregulated, unsafe hemp and cannabis products, which undermine California’s legal cannabis industry. The legislation would hold online platforms accountable for selling illicit products, require them to provide disclaimers, establish reporting mechanisms, and be liable for any harm caused to consumers.
Lawmakers want to stall California’s cannabis tax bill increase 🌁
A California lawmaker wants to cancel a scheduled increase in the state’s marijuana excise tax of nearly 25% that many operators say would be ruinous, reports MJBizDaily. Assembly Bill 564, written by Assembly Member Matt Haney, a San Francisco Democrat, would keep the state’s cannabis excise at 15% — with no adjustments allowed.
Hemp versus weed in North Carolina 🥊
Cannabis advocates in North Carolina filed a civil rights complaint to push lawmakers for clarity on the state’s inconsistent cannabis laws, particularly regarding hemp-derived products called THCA. The legal gray area has led to confusion among businesses and consumers, and some say minorities are targeted more for alleged violations. Read more.
Trulieve sued in Arizona 🧑⚖️
A payment processor has sued Florida cannabis firm Trulieve and several of its Arizona dispensaries, claiming the company orchestrated a scheme to disguise marijuana purchases as ATM withdrawals, triggering nearly $1 million in network penalties, reports Green Market Report. The suit could put the cashless ATM system many dispensaries in the US use to get around federal regulations in jeopardy.
Trump wants death penalty for drug dealers 🤔
President Donald Trump told state governors last week that he supports the death penalty for drug dealers, reports Marijuana Moment. “If you notice that every country that has the death penalty has no drug problem. They execute drug dealers,” he said. It’s a stance he’s had since the campaign trail.
🤝 Deals, launches, partnerships
High Tide pulls out of Germany deal 📉
Canadian cannabis firm High Tide said on Tuesday that it is pausing its planned acquisition of German medical cannabis company Purecan GmbH, days after new German Chancellor Friedrich Merz’s election. Merz has said he wants to roll back legalization, though that may prove an uphill battle. High Tide said “there is no certainty” that the deal will proceed after the pause, and plans to pursue alternative deals with Purecan and other pathways into the German market. The company did not mention Merz as a reason for pausing the deal.
Jushi sells tax credits 🇺🇸
The IRS owes Jushi, a cannabis company, $6 million in COVID-era Employee Retention Credit (ERC) tax credits. Jushi sold the claims to a third party for $5.1 million to raise money, reports MJBizDaily. It’s a novel way for cannabis firms to raise money.
Cannara Biotech extends credit facility with BMO 💰
Cannara Biotech has extended its credit agreement with BMO, restructuring its debt into a $34.8 million term loan, a $10 million revolving credit facility, and a $5.6 million letter of credit. The company also extended its $5.7 million convertible debenture with Olymbec Investments to 2028, with revised repayment terms and a new agreement with Javaa Private Equity.
Blum Holdings settles suit 🤝
Blum Holdings has reached a settlement with People’s California, resolving over two and a half years of litigation, including a $23 million breach of contract case and multiple derivative actions. The settlement, pending final court approval, includes mutual releases and dismissal of all related lawsuits, allowing Blum Holdings to move forward with its Chapter 11 reorganization.
🧪 Science & research
Industry study finds medical cannabis can help PTSD 🧠
A study by Leafwell found that medical cannabis, particularly edibles and pills, are a cost-effective complementary treatment for PTSD, offering significant health benefits even when not covered by insurance. While dried cannabis flower was less cost-effective, it still provided savings when insurance covered 50-75% of the costs. These findings suggest that insurance providers may want to consider covering medical cannabis, as it could lower overall healthcare costs while improving patient outcomes. Read it here.
THCV can aid weight loss ⚖️
THCV and CBD, compounds found in the cannabis plant, can aid in weight loss, according to a new study published in the journal Cannabis. The study found that THCV infused strips helped participants lose weight and lower their blood pressure, cholesterol, and waist size, especially at higher doses. While the results are promising, more research with a larger group of people is needed to fully confirm the effects. Read it here. THCV is similar to THC, but has different chemical properties that are thought to help with appetite suppression.
📰 What we’re reading
Finally solved: how the body's own marijuana spreads through the brain | Universiteit Leiden
N.J. medical cannabis patients feel betrayed as legal weed business booms | NJ Cannabis Insider
The Era Of Cashless ATMs At Dispensaries Is About To Come Crashing Down | Talking Joints Memo
A potential legal battle looms over New Jersey’s new proposed weed laws | Philadelphia Inquirer
What did you think of today's Cultivated Daily? |