Category: Our Perspectives

Stop Making Sense

SHARE THIS POST From time to time we look at companies trading across the cannabis sector and whether the current prices, valuation and general support for the stock (or lack thereof) makes sense. This morning, we looked at a California-based canna business trading on the pink sheets, Advantis Corp. (ADVT.OTCPK). The company’s business description sounds promising enough: Advantis Corporation (ADVT) is focused on helping people take control of their health and pain management needs. By creating strategic partnerships with innovative companies in the nutraceutical and alternative health care industries, Advantis is uniquely positioned to provide the guidance and support to assist in delivering products and services that address the needs of these individuals. Acquiring ownership in developing companies allows Advantis to provide consultation to improve product lines, expand distribution channels, and heighten brand value. With the healthcare and pain management sectors forecasting staggering growth, Advantis identifies and partners with those companies that possess the potential to capitalize on this trend. The news is positive. Jan 29, 2018 – “Advantis Corp. Expanding into Colorado, California Nears Packaging Capacity with New Machine; Pre Orders for New Sizes Escalate Quickly” Jan 16, 2018 – “California Legalization for Adult Use Leads to Record Month for Advantis Corp” Jan 10, 2018 – “Advantis Corp. Partners with Players Network’s Green Leaf Farms and Expands Its Product Line into Nevada” Dec 18, 2017 – “Advantis Corp...

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Week in Review – Week Ended January 12, 2018

SHARE THIS POST On January 4, 2018, Attorney General Jeff Session announced that the Trump Administration is rescinding the Cole Memo, which creates significant uncertainty about the regulatory environment at the state level. Early Responses Bridget Hill-Zayat, Esq., of Cannabis Law Firm, Hoban Law Group, said that “The status of the law remains unchanged. Cannabis was always federally illegal, and there was always a conflict of state and federal law. Replacing the Cole Memo is wildly unpopular with both Democrats and Republicans. This move by Sessions creates a hurdle for sure, but as long as there are veterans and patients, it will remain political suicide for federally elected leaders to support further prohibition. To that end, Governor Wolf of Pennsylvania today announced he plans to protect patients. Indeed, Colorado Senator Cory Gardner said he would hold up Trump’s DOJ nominations over this policy shift. The state will fight back and so will voters in the next election.” Justin Hobson, Co-Chair Cannabis Group, Lane Powell (Seattle & Portland), said that “This development, while anticipated for some time, could have a significant effect on cannabis markets, and especially on the financing of cannabis businesses. The action also provides the possibility for U.S. Attorneys to take aggressive actions against industry participants. It is too early to say what might happen with this rescission, but needless to say people in the industry should...

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Rep. Barbara Lee (D-California) this week introduced H.R. 4779: To protect States and individuals in states that have laws which permit the use of cannabis, and for other purposes

SHARE THIS POST January 12, 2018 – Rep. Barbara Lee (D-California) this week introduced H.R. 4779: To protect States and individuals in states that have laws which permit the use of cannabis, and for other purposes. The proposed legislation has 4 cosponsors: Rep. Ed. Blumenauer (D-Oregon), Rep. Jared Polis (D-Colorado), Rep. Dina Titus (D-Nevada) and Rep. Don Young (D-Alaska). It’s good to see legislative pressure keeping up, on the heels of AG Sessions’ announced intent to rescind the Cole Memo and safe harbor to Canna businesses, although H.R. 4779 is yet to pick up support across the aisle. We will keep this list and related actions updated on this blog. The List of Proposed Legislation Industrial Hemp Water Rights Act – H.R. 4164 (introduced October 27, 2017) would provide that the owner of a water right may use the water for the cultivation of industrial hemp, if otherwise authorized by State law. The proposed legislation’s primary sponsor is Rep. Jared Polis (D-CO). Cosponsors (8): Rep. Don Young (R-Arkansas), Rep. Collin Peterson (D-Minnesota), Rep. Tulsi Gabbard (D-Hawaii), Rep. Mark Pocan (D-Wisconsin), Rep. Steve Cohen (D-Tennessee), Rep. Earl Blumenauer (D-Oregon), Rep. Thomas A. Garrett (R-Virginia) and Rep. Diana DeGette (D-Colorado). Latest Action – House – 11/17/2017 Referred to the Subcommittee on Crime, Terrorism, Homeland Security, and Investigations.  (All Actions) Marijuana Effective Drug Study Act of 2017 (MEDS Act) – S. 1803 (introduced...

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H.R. 975 – An Answer to AG Sessions’ Move on Legal Cannabis – Picks up 9 Cosponsors

SHARE THIS POST Federal Cannabis Legislation – Pipeline H.R. 975, the Respect State Marijuana Laws Act of 2017, which would amend the Controlled Substances Act to provide for a new rule regarding the application of the Act to marijuana, and for other purposes, has added 9 new cosponsors this week (see below). The bill now has 35 cosponsors (23 Democrats and 12 Republicans). We will keep this list and related actions updated on this blog. The List of Proposed Legislation Industrial Hemp Water Rights Act – H.R. 4164 (introduced October 27, 2017) would provide that the owner of a water right may use the water for the cultivation of industrial hemp, if otherwise authorized by State law. The proposed legislation’s primary sponsor is Rep. Jared Polis (D-CO). Cosponsors (8): Rep. Don Young (R-Arkansas), Rep. Collin Peterson (D-Minnesota), Rep. Tulsi Gabbard (D-Hawaii), Rep. Mark Pocan (D-Wisconsin), Rep. Steve Cohen (D-Tennessee), Rep. Earl Blumenauer (D-Oregon), Rep. Thomas A. Garrett (R-Virginia) and Rep. Diana DeGette (D-Colorado). Latest Action – House – 11/17/2017 Referred to the Subcommittee on Crime, Terrorism, Homeland Security, and Investigations.  (All Actions) Marijuana Effective Drug Study Act of 2017 (MEDS Act) – S. 1803 (introduced September 13, 2017) would improve medical research on cannabis. The proposed legislation’s primary sponsor is Sen. Orrin Hatch (R-Utah). Cosponsors (6): Senator Brian Schatz (D-Hawaii), Senator Cory Gardner (R-Colorado), Senator Christopher Coons (D-Delaware), Senator Thom...

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Sessions Rescinds Cole Memo – Implications

SHARE THIS POST January 4, 2018 – AG Sessions has arguably moved in a direction many expected – escalating his campaign against legal cannabis by reversing the Cole Memo (see the entire memo here). Given the majority and ever-increasing number of Americans that believe, at the least, cannabis should be legal for medical purpose and increasing momentum support for recreational / adult-use cannabis is getting, the move doesn’t reconcile with the version of populism Trump espoused on the campaign trail (but then the Tax Bill didn’t either). But when it comes to the impulse to support public consensus or undo yet another Obama policy, there can’t be any surprise which wins out. Now, US attorneys will be freed up to prosecute cannabis business. Don’t count on Trump to be too concerned about the political consequences. No deliberative, forward-thinking or even practical political calculus can stand up to the emotional satisfaction of acting and reacting in real-time for this administration. While the move surely will not be the death knell to the cannabis industry, it will have chilling effect on mainstream investment into the market until the administration provides more clarity on just how it intends to allocate resources and support to AG Sessions efforts. It will also have a chilling effect on the banking system, which was starting to warm a bit to serving canna-businesses. In a recent report...

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