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Post by dracon on Jan 5, 2017 9:34:22 GMT 4
In a major positive step for the cannabis industry, the New York Stock Exchange last month listed a new real estate investment trust called Innovative Industrial Properties (NYSE:IIPR), the first cannabis company to be listed on a US national exchange. The company plans to invest solely in real estate intended to be leased out to cannabis growers. In the IPO they raised $67 million, much less than expected. The price has not moved above the IPO price, but it has moved steadily up recently after an initial drop on its first few days of trading.
Other challenges analysts cite: the concentration of investment in one industry, management not experienced in cannabis, and the high uncertainty of the future of federal oversight under President-elect Trump. Trump has said he is fully behind medical marijuana, not a fan of recreational use but believes it should be up to the states, has been against the war on drugs for years and is certainly pro-jobs and pro-taxes coming in. But many are concerned about his nomination of Alabama Senator Jeff Sessions to be the next US Attorney General. As recently as this April, Sessions said, “Good people don’t smoke marijuana” and that it’s “not the kind of thing that ought to be legalized.”
Congress has kept the feds from using money to go after those properly complying with state cannabis laws. But those actions, in appropriation bills, have to be renewed each year, and recent parliamentary changes may make that more difficult. The key question will be whether Trump allows Sessions free rein on the issue. That’s the unknown. But this new listing is still very big for the industry, especially after Nasdaq’s very strong refusal to list MassRoots earlier this year.
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Post by ypsichick on Feb 28, 2017 4:52:19 GMT 4
Consider Industrial Hemp production: State legislatures have taken action to promote industrial hemp as an agricultural commodity in recent years. A wide range of products, including fibers, textiles, paper, construction and insulation materials, cosmetic products, animal feed, food, and beverages all may use hemp. The plant is estimated to be used in more than 25,000 products spanning nine markets: agriculture, textiles, recycling, automotive, furniture, food/nutrition/beverages, paper, construction materials and personal care.
While hemp and marijuana products both come from the cannabis plant, hemp is typically distinguished by its use, physical appearance and lower concentration of tetrahydrocannabinol (THC). Hemp farmers and producers often grow the plant for the seeds and stalk. The plant is cultivated to grow taller, denser and with a single stalk. Marijuana, grown for the budding flowers, tends to be grown shorter, bushier and well-spaced.
In 2015, a bipartisan group of U.S. senators introduced the Industrial Hemp Farming Act of 2015 that would allow American farmers to produce and cultivate industrial hemp. The bill would remove hemp from the controlled substances list as long as it contained no more than 0.3 percent THC. The U.S. Department of Agriculture, in consultation with the U.S. Drug Enforcement Agency (DEA) and the U.S. Food and Drug Administration, released a Statement of Principles on Industrial Hemp in the Federal Register on Aug 12, 2016, to inform the public on the applicable activities related to hemp in the 2014 Farm Bill.
At least 30 states passed legislation related to industrial hemp. Generally, states have taken three approaches: (1) establish industrial hemp research and/or pilot programs, (2) authorize studies of the industrial hemp industry, or (3) establish commercial industrial hemp programs. Some states establishing these programs require a change in federal laws or a waiver from the DEA prior to implementation.
At least 16 states have legalized industrial hemp production for commercial purposes and 20 states have passed laws allowing research and pilot programs. Seven states—Colorado, Kentucky, Maryland, Minnesota, North Dakota, Rhode Island and Virginia—have approved the creation of both pilot/research and commercial programs. Many of the states that have legalized hemp cultivation for commercial purposes specify that state law does not allow for violation of federal law. States including California, Indiana, Kentucky, Minnesota, Montana and Virginia have established a framework for regulating commercial hemp but still consider hemp illegal outside of research programs unless federal law changes.
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