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A different green new deal: In 2020 state and local cannabis tax revenues brought in $3B. With New York, New Mexico, and Virginia poised to have recreational legalization come online in the coming months, that number is most likely going to soar even higher. We at Bengal believe that the increased need for tax revenue by governments will continue to drive increased recreational legalization of the plant. One day pot taxes could be used to fill potholes across the U.S., even if President Biden might disagree. (Institute on Taxation and Economic Policy)
Pot lounges ready for a comeback: While cannabis is legal in a wide array of states, it is still illegal to smoke or consume in public. For that reason, cannabis lounges are poised to make a comeback when pandemic restrictions relax more fully, especially in tourist-heavy markets like Nevada. New York, in a very cannabis-user friendly move, made it legal to smoke cannabis wherever it is legal to smoke tobacco. (Marijuana Business Daily | 8 News Now | Ganjapreneur)
- Harboring new opportunities: Harborside, a vertically integrated, California cannabis operator, announced that it had secured a $12M revolving loan facility. While access to any form of banking credit is a large step for cannabis companies, perhaps tellingly, the sponsor bank asked for its name to be withheld from the announcement. (SF Business Times | Newswire)
- Oui-d: Our cousins in democracy, France, have launched a 2-year medical cannabis experiment. Some 3,000 patients around the country will be given medical cannabis treatments and their health will be monitored by the central government’s national medicines watchdog. (SFGate)
- GreenCo? KushLane? GreenKush? Two of the largest cannabis accessory and packaging suppliers in the world, KushCo and Greenlane, announced their intent to merge via an all-stock deal. The new company, with its increased reach, diversified revenue streams, and pro forma revenues of $250M will be one of the largest packagers and distributors in both the cannabis and non-THC/hemp markets. (MarketWatch)
This Week's News : March 26, 2021
The city that never sleeps might get a little help thanks to a recent deal struck between embattled Gov. Cuomo and the legislature. The bill permits delivery and consumption lounges, and also directs the majority of tax revenues towards drug treatment, prevention, education, and investments in communities disproportionately affected by the war on drugs. While sales for legal cannabis products are still more than a year away, medical patients in the state will be allowed to start home growing cannabis in 6 months. After having announced that past usage of marijuana would not be a dealbreaker for employment, the Biden administration abruptly let go of five staffers. Over 30 Democrats sent a letter criticizing the Biden administration’s totally uncool actions.