Bringing Weed Back to Vancouver’s Downtown East Side

Vancouver city councillor Rebecca Bligh called for the city to reconsider a pre-legalization zoning decision banning REC stores from the city’s Downtown East Side, an area of intense and concentrated poverty and opioid use.
Straight Cannabis

 

Finally, Improved Sales

Cannabis sales were up in March, after two declines in January and February. For the first month since legalization, REC sales barely cracked $60M, beating December’s previous high of $57.3M.
Motley Fool

Quick Hits

  1. A majority of the venture and private equity investment in cannabis since 2013 has been in US companies, with Canadian companies involved in fewer than 25% of deals. And because Canada’s market is both smaller and far more regulated than the US, the trend of funds shifting from Canada to the U.S. is likely to accelerate, some analysts say.
    Bloomberg, MJ Biz Daily
  2. Health Canada reported the number of companies in the queue for federal license applications has been cut in half since the beginning of 2019.
    MJ Biz Daily
  3. Vindica Cannabis Corporation reported via Twitter that Health Canada may accept security-clearance approvals before license-application submissions, which is one of the issues insiders raised after Health Canada changed its application process several weeks ago. Security clearances are arduous and time-consuming, and, Vindica reported, “Many have reached out not wanting to spend time and money on [an application] with personnel who may not pass security clearance.”
  4. Grow Tech Labs’ CEO Barinder Rasode noted, “The most questions or concerns I hear from those who are considering using cannabis is dosing.” She was responding to an article about the demand for precision-dosed REC.
    Twitter
 

Still No Opioid Contaminated REC

Last week, two stories hit the news suggesting illicit cannabis tainted with dangerous opioids might be sold on the illicit market. In response, the Ontario Harm Reduction Network reminded the media that there has not been a single case of cannabis contaminated with opioids.
CBC Thunder Bay

  • Thunder Bay Drug Strategy coordinator Cynthia Olsen elaborated on last week’s story about a green powder which contained carfentanil but not cannabis. She said the substance “had no resemblance to cannabis […by…] weight[,] scent[,] or by its texture. There was no indication that that substance was being marketed or sold as cannabis.” The substance was crystalline, not leafy. Its only similarity to cannabis was that it was green.
    CBC Windsor, Ontario Harm Reduction Network
  • Olsen added the profit margins on opioids are significantly higher than on cannabis, so it is unlikely that a seller would deliberately lace a cheap drug with a more expensive one.

Quick Hits

  1. Canopy announced an expanded partnership with Parent Action on Drugs as well as harm-reduction organization Canadian Students for Sensible Drug Policy. Together, they will develop online tools like the “Weed Like to Know” chatbot and the “What’s With Weed” SMS tool. Both will deliver evidence-based facts about cannabis, along with means to encourage consumers to reflect upon their use, and support for those who’d like to consume less.
    NewsWire

Amended Pardons Bill Moving Forward

Bill C-93, which offers free record suspension but not expungement of cannabis possession convictions, passed through the House of Commons public safety committee, whose MPs attached 11 amendments. Canadian Lawyer, iPolitics

  • Liberal MP Julie Dabrusin introduced an amendment allowing even those who have not yet paid off fines from their cannabis convictions to apply for record suspensions.
  • Amendments advanced by NDP and Green Party members will guarantee cannabis pardons are not revoked if the person in question is later convicted of another possession offence under the Cannabis Act.
  • A Conservative amendment that held will guarantee those seeking pardons may receive them even if their records have been lost.
  • It remains uncertain whether the Liberal government will be able to pass C-93 before they retire for the summer—and the campaign for the October general election, after which polls suggest the Conservative party may win power. But the Bill might reach the Senate floor next week, and if so might be passed before the summer recess.
    iPolitics

Quick Hit

  1. More than 150 professional athletes signed a petition calling on the World Anti-Doping Agency to end their prohibition on cannabis and THC in competitive sport, saying the substance does not meet the criteria of either enhancing performance, harming the health of athletes, or violating “the spirit of sport.” A number of Canadian NHL players are among the 150, notably retired Penguins enforcer Eric “The Hand of God” Godard, and former Habs enforcer George Laraque.
    Canadian Running Magazine

Did RCMP Give Tweed Special Treatment in 2014 Bust?

Through an Access to Information request, the National Post discovered the RCMP killed a media release following a massive 2014 bust of illicit cannabis destined for Ontario LPs, in part due to concern the news bust might reflect poorly on Canopy Growth (then called Tweed).

  • The 1,500 lbs of harvested and packaged bud (at the time the MMPR only allowed transfer of seeds or live plants) was found in 55 hockey bags and 40 boxes destined for Tweed and Mettrum (later acquired by Canopy and rebranded as Spectrum).
    Twitter–Douglas Quan
  • The RCMP did not publicise the seizure for more than a week even as Tweed preemptively made statements the RCMP considered “brutally misleading.”
  • Tweed had become the first LP to go public on the TSE the week of the bust, and documents show the RCMP considered how news of the bust might affect stock prices.
  • They also worried the news would make Health Canada look bad as it rolled out new MMPR regs that week.
    Twitter—Douglas Quan
  • RCMP spokeswoman Sgt. Janelle Shoihet would not comment in detail, but told the Post, “Decisions with regards to communications will always consider impact on prosecution, timing and whether (or) not a company is publicly traded. These factors have been considered in the past and were not unique to this investigation. Impacts on partners, disclosure, potential or active prosecutions and privacy legislation must all be considered when determining what, if any, information can be made public.”
  • Retired RCMP superintendent Garry Clement disagreed, saying, ““When you see something like that, how can you say the RCMP is being objective? They’re playing in the hands of the company. Investors may have made a decision differently had they known the facts.”
  • A Canopy spokesman said it believed then and now that it acted in compliance with regulations.
  • Grower Travis Lane said, “So many people are in prison for a fraction of this amount. How can anyone have faith in the equity of the system when shit like this (and Bonify) happens? Worried about stock price? Fuck that corrupt bullshit.” Twitter

Quick Hits

  1. Hexo CEO Sébastien St-Louis said his company acquired Newstrike Brands primarily for its manufacturing space. The hope is to relieve some of the processing bottlenecks Hexo has previously reported.
    Bloomberg, Globe and Mail—Paywall
  2. Law firm Dentons published a review of the proposed Health Canada regs on edibles, extracts, and topicals. However, the regulations are not settled, and no one knows exactly what they’ll look like.
    CTV News
  3. Diageo CEO Ivan Menezes says legalization has not affected the liquor giant’s Canadian sales, and for that reason he’s in no hurry to enter the cannabis sector.
    Grizzle

Alberta Lifts Retail Moratorium

Alberta joined Quebec, which last week indicated its supplies were strong, in confirming it has enough cannabis to lift the REC retail license moratorium that has been in place since November.

EDIBLES COUNTDOWN IN FULL SWING

With edibles legalization approaching, many entrepreneurs are hoping they’ll hit it rich in the field. Organigram invested $15M in an infused-chocolates production line to be delivered in the fall. They’re also working with Acadienne chocolatier Ginette Ahier of New Brunswick’s Adorable Chocolate.
Canada.com, NewsWire, Ici Radio-Canada—In French

  • When I visited Montreal’s Chronique 420 café on 4/20, the owners said they hoped edibles legalization would allow them to sell infused items. Until then they’re selling regular coffee and baked goods.
  • In Quebec City, the restaurant Sinsemilla opened last month, offering a variety of dishes that contain hemp in a cannabis-oriented environment—presumably, like Chronique 420, they hope to add THC after it’s legal.
    Ici Radio-Canada—In French
  • Health Canada’s Andrea Budgell told a convention discussion her agency is paying attention to feedback about determining whether edibles were appealing to kids.
  • She also noted 7,000 submissions on the draft edibles, extracts, and topicals regulations, chiefly pertaining to the proposed 10mg THC cap, the demand for dedicated manufacturing buildings for infused products, and packaging regs.
    Twitter—Trina Fraser
  • Like other cities, Calgary has seen an increase of ER visits related to illicit edibles. But physician Dr. Eddy Lang, a health researcher specializing in emergency medicine, said the numbers aren’t large and in US states that legalized, cannabis-related ER visits declined as mainstream use stabilized.
    Calgary Herald
  • Brad “PancakeNap” Martin published a series of infographs exploring the varieties of cannabis available across North American legal markets (broken down by state and province).
    PancakeNap

OTTAWA HAS MILLIONS FOR CANNABIS RESEARCH

The federal government, through the Canadian Institute of Health Research, earmarked $24.5M for cannabis research projects across Canada. CTV News

Quick Hits

  1. Researcher Nick Jikomes argued we’re “entering a golden age of cannabis research.” He shared a graph of the number of studies containing the word “cannabis” in their title or abstract, which have been increasing since the 1990s and have more than doubled in the past eight years.
    Twitter
  2. A Vernon, BC MED dispensary is being shut down after a series of $1,000 fines and the threat of jail.
    Global News
  3. Time is running out for the Liberal government to pass its cannabis-convictions records-suspension Bill C-93.
    Global News

REC USE COSTS MAN A JOB OFFER

Patrick Whalen, who says he uses no illicit drugs and only uses REC occasionally, saw a job offer for a Halifax water-treatment plant pulled when he tested positive for cannabis.

  • Erin Gratton, founder of cannabis-HR organization High Values, said on Twitter, “No medical condition, no Code protection.” She explained to WeedWeek, “Until there’s a reliable test for cannabis impairment, safety-sensitive workers need to be aware of possible implications of consuming recreational cannabis outside work hours.”
  • The Supreme Court of Newfoundland and Labrador’s decision in a landmark case on MED at work,writes Torkin Manes Barristers & Solicitors partner Peter Straszynski, found the “possibility” of impairment up to 24 hours after cannabis consumption represented “undue hardship” to an employer, allowing them the right to terminate a MED user’s employment.
    Torkin Manes

Quick Hits

  1. Police in Ontario’s Waterloo Region warned of the discovery of counterfeit cannabis containing the extremely powerful opioid carfentanil, but no cannabis at all. Based on photos circulated, it appears to be a ground dry-leaf product laced with chemicals. This was likely not the culprit in last week’s reports of teens overdosing after smoking what bystanders said smelled like cannabis.
    CTV News, Globe and Mail
  2. The owner of an evicted illicit CBD store in Windsor, ON, says his landlord told police “untrue” things about him in a letter to police accusing him of “selling cannabis related products.” Police searched the store and left without pressing charges. His landlord accuses police of forcing him “to do their dirty work” by evicting the store when they did not charge the owner.
    CBC Windsor