In the latest indication of how tough business is up north, Canadian giant Canopy Growth closed two indoor grows in British Columbia and laid off 500 workers.
MarketWatch

• Many of those laid off were Guatemalans in Canada on a temporary workers program.
  Vancouver Sun

In other Canadian woes:

• Canadian pot stocks fell for the 11th straight month.
  New Cannabis Ventures
• Former Wall Street darling Tilray released disappointing Q4 earnings.

If the Canadian market matters to you, you need to be reading WW Canada.

Here are a few intriguing nuggets to get you thinking:

• A study found CBD “promotes neuroprotection through different signal transduction pathways mediated indirectly by cannabinoid receptors.” In short, it may be useful in staving off Alzheimer’s.
  Science Direct
• An early study suggests microdosing psychedelics may have benefits.
• Canna Law Blog looks at the “Ketamine Clinic Craze: Legalities and Possibilities.”
• The first crop of ‘shroom stocks have skyrocketed on Canadian exchanges. None trades for more than a dollar, however.
  Equity Guru

In D.C., the city that blunts the cutting edge, the FDA released a long-awaited report on regulating CBD. It didn’t clarify much.
Stat News

Welcome to a new feature: The question of the week. It’s pretty straightforward. Each week we’ll ask a question and you can respond. We’ll post some of the most interesting answers on the web site and in next week’s newsletter.

And the inaugural question:

• What common industry practice do you consider most self-defeating and why?

Send responses to: hello@weedweek.net Please include your name, location and affiliation. We’ll honor requests for anonymity.

Quick Hit

1. Comedian Sarah Silverman hosted a benefit at Los Angeles club Largo for The Initiative, an accelerator for female-owned pot businesses.

In a precedent setting case for California, an Alameda County (East Bay) court ruled that the marijuana odor emanating from a car wasn’t sufficient to justify a vehicle search. WW California has more.
Southern California Public Radio

A Federal judge on the Fourth Circuit Court of Appeals (Richmond, Va.) ruled that the smell of marijuana coming from inside a house, is sufficient evidence “to search the entire house…including any safes and locked boxes” even if officers have already identified the source of the smell.

@BradHeath– Twitter

The Boston Globe profiles Pure Oasis, the first pot shop to open in Boston and the first economic empowerment license business in Massachusetts. It’s been a long road for co-owners Kobie Evans and Kevin Hart.

Meanwhile in Utah: The state’s first MED “pharmacy” opened. MED cards can be obtained from 60 health care professionals in the state.
AP

Quick Hit

1. Federal prosecutors subpoenaed documents on approximately 30 California companies from dispensary locator app Weedmaps. It’s not clear who’s under investigation or for what. Weedmaps is cooperating.
   MarketWatch

Canna Law Blog suggests companies aren’t prepared for the embarrassing revelations which can accompany litigation:

“What makes the risk of publicity all the more problematic is the potential for rule violations to come to light. Given the fact that all state-level cannabis regulations are murky and complicated, it is understandable that some companies may not have strictly complied with the rules. That may come out in discovery. What also may come out in discovery are the internal conversations about those rule violations. Imagine an email chain where the owners of a company talked about, acknowledged, and agreed to sweep under the rug a severe rule violation. That could be part of the record in litigation.”

While not all the details emerged from litigation, in October WeedWeek documented Colorado start-up Ebbu’s promotion of an investment structure that may have violated state law. Colorado authorities have repeatedly declined to comment. Canopy Growth, which acquired Ebbu’s intellectual property, has also declined to comment.  

Meanwhile, huge law firms like Reed Smith, Locke Lord and Dorsey & Whitney are moving to build out their cannabis groups.
Business Insider

WeedWeek readers are familiar with the systemic difficulties associated with running cannabis companies. But a couple of interesting posts this week highlighted some of the industry’s unforced errors.

• Beard Bros Pharms posits a theory: “Massive cannabis brands are crumbling…The reasons for their failures are many, but we contend that at the root of many of these predictable outcomes was some misguided attempt to build the brand to appeal to these supposed saviors of legal weed – the phantom ‘new cannabis consumer’ – while neglecting to provide anything for the longtime connoisseurs to connect to.”
• Max Simon, CEO of video content company Green Flower Media, wrote about five ways to end the toxic work culture at cannabis companies. Across the industry, he writes, “There are serious workplace safety concerns and harassment, unjust firings and layoffs, and a lack of any training or career development.”
  Green Entrepreneur

Quick Hit

1. Michigan brand Narvona became the first cannabis company to win a Global Packaging Award from the PAC Packaging Consortium.
   Forbes

Lawmakers in several states have expressed interest in THC potency caps, a development the industry finds worrisome.
MJBiz

• The Florida House passed a bill which would limit THC content at 10% in products for MED patients under 21.
  Tampa Bay Times
• A proposal in Washington state would limit concentrates to 10% THC.
• There’s talk of a potency cap bill in Colorado this year, though insiders say it’s unlikely to be filed.
  Westword
• A proposal in Arizona, subsequently withdrawn, would have limited MED potency to 2% THC.
  Phoenix New Times

Quick Hit

1. U.S. Treasury Secretary Steven Mnuchin acknowledged the cash only nature of the cannabis business is causing problems for the IRS. He seems to think the onus is on Congress to remedy the situation.
   The Hill

Canadian site The Growth Op talks to some store owners trying to move past the “Apple Store of weed” paradigm.

• “One of the biggest decisions we made from the get-go was to not have technology be the interface for customers,” [CEO Mimi Lam of upscale Toronto store Superette] says. She says screens aren’t the best way for many people to learn about which product will suit their needs.
• The piece also visits Canvas, another luxury Toronto dispensary.

A new study found the non-psychoactive cannabinoid cannabigerol (CBG) holds potentially valuable antibiotic properties.
IFLScience

• Scientists at McMaster University in Canada found CBG to be effective against drug-resistant “superbug” infections in mice. It appeared to work as well as a powerful anti-biotic.
• However, scientists found CBG had toxic effects on the “good” host cells which could complicate its use as an anti-biotic.