A marijuana bill in New York offers social relief, but misses on legalization revenue goals.
The cannabis market saw a win on Monday (July 29) as New York Governor Andrew Cuomo (D) signed a bill decriminalizing marijuana use and possession. This new law also creates a system for convictions related to cannabis to be expunged.
In a tweet, Cuomo said the bill will offer relief to minority communities that have been impacted by marijuana laws.
The bill is set to come into effect 30 days after becoming law in the state.
I just signed legislation decriminalizing marijuana use in New York & creating a process for expunging past convictions.
Communities of color have been disproportionately impacted by laws governing marijuana for far too long, and today we are ending this injustice. pic.twitter.com/PBSXWbQtiW
— Andrew Cuomo (@NYGovCuomo) July 29, 2019
However, the bill fails to introduce tax revenue sharing for cannabis sales as part of a larger legalization process for the state. NBC New York reported that state lawmakers hope a vote on legalization will be on the horizon, with the option to open the market in 2019.
“It’s not legalization,” Cuomo said, according to NBC New York. “But it is decriminalization and it’s a major, major accomplishment.”
According to a report from Marijuana Moment, the full legalization bill was stalled in New York due to a disagreement in sales revenue tax allocation and the option for singular communities to opt out from letting marijuana businesses operate.
In January, Cuomo projected that tax revenue from recreational marijuana sales could result in US$300 million for the first three years.
Two Canada-based marijuana exchange-traded funds focused on the US cannabis market saw a marginal market reaction from the announcement on Monday.
The Evolve US Marijuana ETF (NEO:USMJ) closed at a price of C$15.57, representing a drop in value of 0.7 percent, while its counterpart, the Horizons US Marijuana Index ETF (NEO:HMUS), finished the trading day up 0.15 percent up for a price of C$6.83.
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Securities Disclosure: I, Bryan Mc Govern, hold no direct investment interest in any company mentioned in this article.
American cannabis sales hit US$17.5 billion in 2020, a research group’s new study shows.
Meanwhile, a Canadian cannabis producer began offering CBD beverages in the US, another move that shows how interested Canadians are in the overall US cannabis market at the moment.
Some pretty important news out of health and wellness; beverage and natural products company BevCanna Enterprises Inc. (CSE:BEV, Q:BVNNF, FSE:7BC) this week. For those of you following the Company with us, stay tuned.
As investors continue to prioritize cannabis opportunities in the US, market watchers expect mergers and acquisitions (M&A) to play a role in the future for Canadian companies.
A consolidation trend has been expected in the Canadian cannabis space for some time now based on the size of the market compared to the number of operations in the country.
BioHarvest Sciences Inc. Unveils the Unique Polyphenolic Content of Its Upcoming Olive-Based Nutraceutical
The product will include polyphenols known to have significant health benefits.
BioHarvest Sciences Inc. (CSE: BHSC) (“BioHarvest” or the “Company”) has reached an important milestone in its development program of additional Nutraceuticals. The olive-based Nutraceutical product scheduled for market availability in the second half of 2022 will contain the following unique matrix of polyphenols: hydroxytyrosol, trosol, and verbascoside. These compounds are the major polyphenols in naturally grown olives and are responsible for the high antioxidant activity of olives and olive oil. Importantly, the BioHarvest olive-based Nutraceutical product will provide all the benefits of olives and olive oil with a low calorie count per serving.
Cresco Labs (CSE:CL) (OTCQX:CRLBF) (“Cresco” or the “Company”), one of the largest vertically integrated multistate cannabis operators in the United States, announced today that it will report financial results for the fourth quarter and full year ended December 31 st , 2020 on Thursday March 25 th , 2021 before the market opens.
The Company will host a conference call and webcast to discuss its financial results and provide investors with key business highlights on Thursday March 25 th , 2021 at 8:30am Eastern Time (7:30am Central Time).