VAPE VICTIMS LUNGS: LIKE THEY INHALED MUSTARD GAS

Mayo Clinic researchers who studied the lungs of Vaping Associated Pulmonary Illness (VAPI) patients found the tissue looked like the chemical burns seen in industrial workers exposed to toxic fumes, or World War I soldiers who inhaled mustard gas.
New England Journal of Medicine, New York Times

N.Y. Times:

“Medical investigators have been unable to identify exactly what is causing the lung damage, or even how many harmful substances are involved. They do not know whether the source is the liquids being vaped, or a toxin released from the materials used to make vaping devices. It is also unclear whether some devices used in vaping may be defective.”

The Centers for Disease Control says more than 1,000 cases have been diagnosed and there have been 18 deaths.

With VAPI’s exact cause still unknown — the public health response continues to be muddled.

  • The FDA called on the public to stop using THC vapes as well as all street-bought vapes.
  • Oregon announced a six-month ban on sales of flavored vapes, including THC products, with the exact definition of “flavored” to be determined.
    MJBiz
  • Nationwide lawmakers have long sought a crackdown on flavored nicotine vapes for their appeal to children. However, it’s not clear the flavored vape bans which have taken effect in several states help address VAPI.
  • In Massachusetts, a four month ban on all THC and nicotine vapes is likely to survive a court challenge.
    MJBiz

In Leafly, Bruce Barcott writes the flavored vape ban in Washington state will only make things worse.

WSJ MEETS STONED GYM RATS

The Wall Street Journal is the latest publication to examine cannabis users’ affinity for going to the gym. Despite their assertions, there’s little evidence cannabis improves workouts and it has been known to cause exercise related injuries.

Former athletes argue “that many stoners have it wrong: Weed doesn’t provide a sporting edge…[it aides] pain relief and rest.”

It also mentions a Brazilian jiu jitsu tournament circuit called “High Rollerz BJJ.” “The organization requires opponents to smoke a joint together before the start of each match. The tournament prize is a brick of pot. The audience is encouraged to light up, too.”

RAPHAEL MECHOULAM IS BACK WITH A NEW DISCOVERY

Raphael Mechoulam, the Israeli organic chemist regarded as the father of cannabis science, announced a new discovery at the CannaMed conference in Pasadena.

NBC reports:

“They have developed a process for creating synthetic, stable acids that are found within the plant, and that the synthetic acids, which include acid versions of CBD and THC, are now available for licensing to companies for drug development.

“The discovery paves the way for drug companies to potentially develop new drugs based on the acids for a variety of health issues such as psoriasis, arthritis, anxiety and inflammatory bowel disease.”

The research was produced by a start up called EPM.

MEDMEN CEO TALKS WHERE HE WANTS TO BE

New Cannabis Ventures published an interview with MedMen co-founder and CEO Adam Bierman. While it doesn’t go into the company’s legal issues, or lackluster stock performance, there are some interesting nuggets about what’s perhaps the country’s best known cannabis brand, retail or otherwise.

  • “We have not been playing the game of chasing how many states we can brag about being in,” Bierman said. “Not all states are created equal.”

Separately, South Park mocked MedMen again.
The Growth Op

Also in New Cannabis Ventures, Alan Brochstein says get ready for a capital crunch. (It’s not just the vape crisis.)

But maybe not in Europe? There’s an interview with Roderick Stephan, partner at Altitude Investment Management which is raising a $150M fund with an eye on the continent. Altitude’s impressive U.S. portfolio includes upscale California brand Canndescent, Privateer Holdings and (WeedWeek advertiser) BDS Analytics.

CANNABIS MERGERS ARE BIG BUSINESS (FOR BANKS)

In 2018, there were 300 strategic acquisitions in cannabis worth a total of $8.4B, up from $54M in 2013, according to accounting and advisory firm MGO|Ello.

Many of those deals happened to recently to to judge on their outcome. But this week Business Insider looks at the Top 10 investment banks raking in fees for these mergers. The big winners tend to be boutique and midsize Canadian shops which have been involved in cannabis for a few years.

Quick Hit

N.Y., CT TO COORDINATE REC LEGALIZATION

In another step forward for the industry, three northeastern governors announced their intentions to move forward with REC legalization.
Cannabis Wire

  • New York Gov. Andrew Cuomo (D) and Connecticut Gov. Ned Lamont (D) said they would work together on a “regional approach” to REC legalization on a “timely basis,” perhaps in coordination with New Jersey, Rhode Island and other states.
  • “It makes no sense to pass one set of rules when they can just drive across the border to Connecticut to have a different set of rules and vice versa,” Cuomo said.
  • They announced a gubernatorial summit for October 17.
  • Also in the Cannabis Wire story, Pennsylvania Gov. Tom Wolf announced he supports legal REC.
  • As the industry does, he argued that the vape crisis is a reason to legalize since a legal market will be safer.

Also, Massachusetts regulators approved cannabis delivery, to begin next year.
Boston Globe

Quick Hit

  1. A Maryland judge blocked regulators from issuing more MED licenses over concerns about the application process.
    Baltimore Sun

BANKING BILL PASSES HOUSE

Despite the vape crisis, the Democrat-controlled House of Representatives easily passed the Safe Banking Act which would protect banks serving state-legal cannabis businesses. All but one Democrat voted for the bill, while 91 Republicans voted for and 102 voted against. Legalization supporters have been pushing for banking reform for six years.
MarketWatch, Marijuana Moment

  • President Trump reportedly supports the measure, but passing the Senate is not assured. Sen. Mike Crapo (R-Idaho), chair of the Senate Banking Committee has said he wants to hold a committee vote on cannabis banking by the end of the year but details remain vague. The bill which passed the House has been “sweetened for Republicans” but Senate Majority leader Mitch McConnell (R) appears to remain opposed.
    Politico
  • In support of the bill, Rep. Denny Heck (D-Wash.) spoke of a dispensary security guard who was killed on the job. “You can be agnostic on the underlying policy of whether or not cannabis should be legal for either adult recreational use or to treat seizures, but you cannot be agnostic on the need to improve safety in this area,” he said.

CANNABIZ PUSHES BACK ON STATE, REGIONAL VAPE BANS

Several large states and metropolitan areas are considering or have implemented bans on vape products, moves Cannabiz leaders say could devastate the industry.

In the toughest crackdown so far, Massachusetts Gov. Charlie Baker (R) announced a four-month ban on sales of all vape products.

A proposed yearlong-ban on cannabis vape sales in Los Angeles, “could quite possibly represent the death of the regulated industry,” Kenny Morrison, president of the California Cannabis Manufacturers Association told MJBiz Daily.

  • “It will represent such poor judgment that it’ll have a chilling effect that goes far beyond vape companies,” Morrison said.
  • It’s not clear if the bill, introduced by L.A. City Councilman Paul Krekorian (D), has the support to pass.

Elsewhere Washington state, Michigan and New York have moved to ban vapes in kid-friendly flavors and President Trump has suggested doing the same nationally.
ABC, NBC, Time