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Clarence thomas, one of the most conservative Supreme Court justices, wrote a statement that raised eyebrows in the cannabis world this week.
After the court refused to hear a challenge to 280E – the Reagan-era IRS rule that prohibits cannabis companies from deducting regular business expenses – Thomas said the federal government ban on the marijuana “may no longer be needed,†given the number of states that have legalized it for medical and recreational use. He called the federal government’s enforcement of marijuana prohibition more “episodic than consistent.”
It’s fair to say that Thomas is unlikely to become an advocate for legalization – rather, he is a conservative judge pushing back the high tax burdens on small business and the federal excess in this specific case.
If you’re interested, you can read our in-depth analysis of the consequences of 280E for cannabis companies here.
What else?
In last week’s newsletter, I wrote about how we see the continuing conflict between federal and state cannabis laws unfolding every day here in the United States.
Another point: the 21-year-old star runner Sha’Carri Richardson was suspended after testing positive for marijuana. She will probably not be able to run the 100 meters at the upcoming Olympic Games in Tokyo, where she was favorite for the medals. In an interview with the Today Show, Savannah Guthriehighlighted that Richardson was in Oregon when she tested positive – a state where marijuana has been legal for almost six years.
It should also be noted that THC can show up in tests for up to a month after consumption. Additionally, there is no evidence that marijuana improves performance.
If you missed it: I went on the High Rise podcast with Cy scott of Helmet and Emilie Paxhia of Poseidon Asset Management to discuss our reporting for the Insider Newsroom “Cost of iniquity“- I encourage you all to read some of the excellent reports from our colleagues.
You can listen to it here.
I’m leaving next week, but you’ll be in good hands with Yeji.
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Here’s what we wrote this week:
Top Executives at Top 14 Cannabis Companies Overwhelmingly White Males, Insider Analysis Finds
Initiated asked the world’s largest cannabis companies that make up their C-suite. We found that white males make up 70% of senior executives. Black frames represent 7% of the C-suite of cannabis. This story is part of a larger newsroom-wide project: The Cost of Iniquity.
Hot CBD startup just raised $ 50 million in fees – and CEO said the company is considering an IPO as early as next year
CBD start Kadenwood just closed a $ 50 million Series B, giving the two-year-old company a valuation of over $ 350 million. The tour was led by Handicrafts, a venture capital fund that invests in growth-phase mainstream startups, and Arcadian Capital Management, a cannabis-focused venture capital fund.
Leading Wall Street Analyst Exposes 4 Reasons Cannabis Stock Under Ayr Radar Could Shatter 49%
Viridian Capital Advisors analyst Jonathan De Courcey said Ayr Well-being is his first choice of cannabis stocks and said the company’s stock is discounted given his track record.
Former Microsoft and Facebook Engineers Just Raised $ 23 Million To Dominate A Critical But Neglected Part of America’s Largest Cannabis Market
Nabis, one of the largest distributors in the cannabis industry in California, just closed a $ 23 million Series B round. We had an exclusive interview with the CEO of the company Vince ning who said he was focusing on doubling the company’s footprint in California.
A member of the Aurora Cannabis team works in the grow room at the Aurora Sky Cannabis Grow Greenhouse in Alberta, Canada, in this image from the 2018 handout.
Alberta Cannabis Inc / Document via REUTERS
Executive moves
Cannabis distribution company HERBL announced on Wednesday that the COO Smuck Art to retire. Former Director of Whole Foods Robert turner will take over.
Jushi Holdings said on Wednesday that the former executive of AB InBev Leonardo Garcia-Berg will join the company as COO, while Erich Mauff is stepping down as co-chairman and member of the board of directors
Cannabis law expert Rachel Gilette joined Holland & Hart to launch the practice cannabis practice.
Transactions, launches and IPOs
California Cannabis Society Tight started trading on the NEO Exchange the 5 of July. It became public thanks to a combination with Mercer Park, a SPAC.
Cannabis business Smart sheets announced Monday that it has launched “Project Change Lives”, a research initiative that will pledge $ 25 million worth of medical cannabis to US researchers.
Really said on Wednesday it had completed its $ 13.5 million cash and stock acquisition of a cannabis store in Massachusetts.
Hemp and CBD company Vertical well-being goes public on the CSE via a merger with CannaFarma Corp.
Tilray launches the Broken Coast BC Lager in the United States, via SweetWater Brewing Company. It’s a way to introduce their Broken Coast cannabis brand to US consumers before they can sell actual cannabis.
And in other Tilray news, the company said in a proxy statement that it is looking to increase the number of shares to pursue merger and acquisition opportunities.
Cannabis law firm Vicente Sederberg launches an ESG practice.
Policy movements
The legalization of marijuana came into effect in Virginia and Connecticut Thursday, as medical marijuana laws came into effect in South Dakota.
MexicoThe Supreme Court overturned the cannabis ban on Tuesday in an 8-3 decision, decriminalizing the recreational use of cannabis in the country.
Apple will now allow marijuana delivery services on the App Store, but only in jurisdictions where marijuana is legal.
Research and data
The Petrie-Flom Center in Harvard Law School announced Wednesday that it has launched a new research initiative on psychedelics. The program, called POPLAR, is funded by the Saisei Foundation and longtime psychedelics promoter Tim Ferriss, among others.
Graph of the week
OntarioCannabis Market Has Grown Steadily Throughout 2020, With Increasing Number Of Dispensaries, Market Research Company Says Brightfield Group. The province has more than tripled the number of its stores.
Ontario tripled the number of dispensaries in one year
Joanna Lin Su / Insider
What we read
Republicans watch their states reject weed – and they’re not sold (POLITICO)
American pot labs have a THC problem (FiveThirtyEight)
Regulators say multiple investor stakes in cannabis do not violate cap (Boston Business Journal)
Rick Steves: The pot is now used by mom and dad. And grandma rubs it on her elbows (CNN)
Republicans and Democrats are divided over marijuana. Companies are caught in the middle (WBUR)
Can LSD Treat Food Allergies? We don’t know, but it’s already patented (VICE)
