USDA problems hemp guidelines, Mexican recreational cannabis vote delayed, spring rollout for Michigan’s rec industry & much more.

[ad_1]

The U.S. Division of Agriculture (USDA) unveils its hotly anticipated hemp regulations, Mexico’s bid to legalize recreational marijuana is delayed, sales of adult-use MJ in Michigan will not start till March or April at the earliest – and much more of the week’s prime cannabis business enterprise news.

USDA rolls out hemp guidelines

The USDA released 160 pages of rules for developing hemp. The regulations establish THC testing and sampling procedures and let hemp producers to prevent criminal charges for slightly exceeding the legal .three% THC limit.

MJBizDaily takeaway: The regulations, which come in the nick of time for 2020 producers, do not appear almost as restrictive as some feared, with no regulations requiring certified seeds or limiting exports of hemp merchandise.

But hemp farmers are currently complaining the guidelines set unreasonable thresholds for THC variance and do not give cultivators an chance to challenge lab tests that show their hemp is out of compliance.

The USDA guidelines give marijuana producers an early glimpse at how the agency may one particular day method the MJ business. Marijuana producers hoping to go national as quickly as the U.S. Congress alterations the drug law will want to watch how the USDA responds to the issues of hemp growers.

Mexico legalization plans are delayed 

Mexico’s Senate delayed a vote scheduled for this week to fully legalize marijuana, which includes adult use. The Senate also asked for an extension to the Supreme Court’s deadline to legalize cannabis.

The Senate’s Political Coordination Board (Jucopo) took an active function in the method, “shielding” legislators from intense external stress from lobbyists.

MJBizDaily takeaway: Uncertainty surrounds the method to legalize cannabis in Mexico. Quite a few attainable scenarios with potentially extremely distinct outcomes stay attainable.

Legislators have recognized considering the fact that February they had till October to legalize marijuana, and they promised to achieve that even though also making a regulated industry. Now that the deadline has passed, the Supreme Court is in a position exactly where it could merely do away with from Mexican law specific articles regarded as unconstitutional. November now appears to be the new decisive month.

Rec applications open in Michigan, but sales will not start off till spring 2020

Michigan is now accepting recreational marijuana applications, but the industry is not anticipated to launch for at least a couple of months.

MJBizDaily takeaway: Business enterprise possibilities will be restricted initially. Much more than 1,000 municipalities reportedly have either banned marijuana or restricted MJ enterprises.

In addition, health-related marijuana enterprises initially will not be permitted to transfer inventory to the recreational industry since of issues about low MMJ supplies. It indicates all recreational licensees will have to start off from scratch in terms of developing, harvesting and processing their merchandise – a improvement that will take a number of months right after licensing approvals.

L.A. cannabis industry encounters (a further) obstacle

The slow rollout of Los Angeles’ adult-use cannabis business hit a further speed bump. City Council President Herb Wesson asked that the newest licensing round – involving 100 retail permits – be redone, saying the method was “compromised.”

It is unclear when licensing may perhaps get back on track – days, weeks or even months. Significantly will rely on irrespective of whether Wesson’s request for an audit is accepted, and how lengthy it would take.

MJBizDaily takeaway: Wesson’s move will most likely discourage much more firms from getting into the L.A. industry. Some business officials, which includes California Minority Alliance co-founder Donnie Anderson, told Marijuana Business enterprise Daily they intend to quit L.A. fully and concentrate on much more business enterprise-friendly markets such as Illinois, New Jersey and other Eastern states.

Massachusetts keeps vape ban … for now

Massachusetts is keeping its statewide ban on the sale of vaping merchandise, but a neighborhood judge is enabling health-related cannabis individuals to use crushed flower in vaporizers.

In a associated improvement, cannabis retailers in neighboring Maine are seeing a spike in sales of vape cartridges as individuals trek north to obtain vaporizer merchandise across the border.

MJBizDaily takeaway: Flower sales may rise now that health-related marijuana buyers can use it in vaporizers, a thing that individuals had pushed for. Meanwhile, buyers who favor vaping to smoking or edibles will switch to flower more than oil or continue to drive to Maine to acquire cartridges that are unavailable in Massachusetts.

Major cannabis acquisition gets a makeover

Curaleaf, a Massachusetts-primarily based multistate operator, is revising the terms of its planned acquisition of Oregon-primarily based Cura Partners. Blame it on falling cannabis stock costs.

Curaleaf unveiled the deal in Could, when the value tag was almost $1 billion. Due to the fact of the revisions, the quantity of shares in the all-stock deal has been practically halved. But there is an alternative to maintain to the original share supplying primarily based on specific income targets getting met.

MJBizDaily takeaway: Quite a few proposed acquisitions are anticipated to be renegotiated or abandoned offered the distinction in industry circumstances – believe a poor funding atmosphere and low stock costs. The Curaleaf/Cura makeover follows the scrapping of MedMen’s planned acquisition of PharmaCann and Cresco Labs’ disclosure that its obtain of Origin Residence will be closed on “mutually agreeable” terms.

For much more of Marijuana Business enterprise Daily’s ongoing coverage of the vaping crisis, click right here.

[ad_2]

Latest posts