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UN changes its tune on drug prohibition
Plus, Organigram buys Motif Labs in a $90 million deal
Good morning.
We hope you all had a good weekend, and to our many readers we saw at MJBizCon in Las Vegas: It was so great to see you all in person, and a heartfelt thanks for the kind words about our newsletter and what we’re building with Cultivated.
We’ll be sharing our MJBizCon conversations with you all over the coming days and weeks. Check out a sneak peek here on LinkedIn.
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Let’s get to it.
-JB & JR
This newsletter is 958 words or about a 7-minute read.
📣 Quotable
“The ‘War on Drugs’ destroyed lives and damaged communities. Criminalisation and prohibition have failed to reduce drug use and deter drug-related crimes. We need new approaches prioritising health, dignity and inclusion, guided by the International Guidelines on Human Rights & Drug Policy,” Volker Turk, The United Nations High Commissioner on Human Rights, said in a video posted on X.
Turk called on the UN to develop human-rights based approaches to drug policy that prioritizes health, dignity, and inclusion, instead of punitive measures. He added that decriminalization is a key aspect of humane drug policy, and called for interventions that treat the person, not punish them.
Decades-old UN Treaty agreements — which stipulate that member states must keep cannabis and other drugs illegal — are one of the key sticking points for federal cannabis reform in the US. It now seems the UN is slowly starting to change its tune.
🥊 Quick hits
SAFER Banking hopes slim 👀
Sen. Jeff Merkley (D-OR), one of the key Senate proponents of the SAFER Banking Act, a cannabis banking bill, told Politico that he "will keep trying until the last day to find a miracle" to get the bill passed during the lame-duck Congressional session, "but the size of the required miracle is growing."
Illinois Supreme Court rules raw cannabis odor warrants search 🌿
Illinois’ Supreme Court ruled that the odor of raw cannabis is enough to justify a warrantless vehicle search. Read more from Jurist.
Incoming Indiana governor backs medical legalization
Governor-elect Mike Braun, a Republican, said last week that it’s “probably time” to bring medical cannabis to Indiana. Braun’s comments come after a survey found that nearly 90% of Indiana residents back medical cannabis. Nebraska legalized medical cannabis in November.
Hochul fires back at social equity groups 🍿
New York Gov. Kathy Hochul fired back at a group of cannabis advocacy groups who last week said she’s handing the state’s market over to corporate interests. “These are the exact same groups who advocated for policy choices that led to the proliferation of illegal storefronts on nearly every corner and forced rule-following entrepreneurs to wait months on end for a license,” a spokesperson told The New York Post.
New York City pledges to help dispensary owners with loans 🤝
Dasheeda Dawson, the director of Cannabis NYC, a city agency that supports the industry, said at MJBizCon in Las Vegas last week that the city will offer low-interest loans to dispensary owners and help them find real estate. Many social equity dispensary owners are struggling under burdensome loans and expensive compliance.
🚀 Deals, launches, partnerships
Organigram acquires Motif in $90 million deal 🥊
Canadian cannabis producer Organigram said it will acquire Motif Labs for $90 million CAD, breaking down to $50 million cash and $40 million stock. The company says the merger will make Organigram the largest Canadian cannabis firm by market share. Read more.
Treez wins visa lawsuit 🇺🇸
Cannabis software firm Treez won a lawsuit after an employee was initially denied an H1-B or skilled worker visa because a judge initially ruled that Treez aided and abetted violation of the federal Controlled Substances Act, as cannabis is considered a Schedule I controlled substance. The judge ruled that the employee was wrongfully denied the visa, as his role as a software engineer is not directly related to cannabis sales.
📊 Earnings roundup
Cannabis research and the industry 👀
A new article published in the journal Social Science & Medicine outlines the risks researchers face when they’re funded by cannabis companies. “Researchers' financial relationships with industries may influence research agendas, outcomes, lead to conflicts of interest, and bias the evidence base,” the article says.
📈 Chart of the day
Six years into legalization, the vast majority of Canadian cannabis consumers purchase from legal sources, according to Health Canada’s 2024 Canadian Cannabis Survey. Seventy-two percent of Canadians bought from legal sources in 2024, compared to 37% in 2019.
It’s a sign that Canada’s legalization policy is working for its intended purpose. Among the other results: The proportion of people who smoke cannabis, versus use edibles or vape, is declining year-over-year. And teen use has remained relatively flat. Check out the key takeaways.
😜 One fun thing
Andrew Huberman, the famed neuroscience podcaster, has updated his knowledge on cannabis since his much-maligned episode a few years ago. He told Shawn Ryan that cannabis — while not benign — can be beneficial in many ways and encouraged those who rely on cannabis for sleep and anxiety relief to choose edibles over smoking to eliminate cancer risk. Watch it below.
Andrew Huberman on the impact of vaping cannabis.
"A small amount of cannabis vaped seems to help with sleep. It's probably robbing you of some slow-wave sleep and rapid eye movement sleep that would be beneficial, but I'll mention an alternative you could try. In the meantime,… x.com/i/web/status/1…
— Shawn Ryan (@ShawnRyan762)
8:00 PM • Dec 6, 2024
📰 What we’re reading
Smoked out: New York cannabis shop owners face financial stress | New York Daily News
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