LOS ANGELES, January 16, 2018 /PRNewswire/ --
USA News Group - U.S. Attorney General Jeff Sessions may be looking to crack down on pot sales in states where they are legal, but Arizona medical-marijuana users likely don't need to worry.
A provision buried in the federal budget, plus a safety valve in what Arizona voters enacted in 2010, are expected protect individual medical-marijuana users in the State unless the Drug Enforcement Administration starts targeting individual users, which is considered highly unlikely.
Leading cannabis companies have seen positive feedback from support such as Arizona's and other lawmakers across the country. The companies are experiencing positive momentum as a result including Aurora Cannabis (TSX: ACB) (OTC: ACBFF), MedReleaf Corp. (OTC: MEDFF), GW Pharmaceuticals (NASDAQ: GWPH), and MYM Nutraceuticals Inc. (CSE: MYM) (OTC: MYMMF).
In what is equivalent to an about face, Attorney General Sessions announced that he is rescinding a memo that directed the federal prosecutors under his jurisdiction not to target businesses or individuals who are in compliance with state marijuana laws despite the fact the drug remains illegal under federal law.
It's evident that the tide has turned with regard to public perception of marijuana use, but Sessions is apparently determined to follow the contentious ruling.
Still, markets are rebounding on actions by the states and the positive news out of Canada where medical-marijuana is already legal. Several prominent companies are continuing their initiatives to expand capacity including Aurora Cannabis (TSXV: ACB) (OTC: ACBFF), and others focusing on medicinal applications and therapies using cannabis, such as MedReleaf Corp. (OTC: MEDFF), and GW Pharmaceuticals (NASDAQ: GWPH).
There are also a few specialized companies looking to support their efforts in developing formulations, extracts and supplying marijuana based on their Licensed Producer status. Among these, MYM Nutraceuticals Inc. (CSE: MYM) (OTCQB: MYMMF) is leading the charge. The company has announced it is developing some of the world's largest cannabis greenhouses, as well as diversified interests in cannabis derivatives, formulations and most recently, producing cannabis in Australia for that growing market.
WHAT ARE THE FEDS TO DO?
For the moment, AG Sessions and his prosecutors really can't do anything about Arizona.
A provision in the federal budget adopted in 2014 prevents his agency from using any resources to target patients. It also prevents actions against providers in states where medical-marijuana is legal. That provision has been continuously renewed every year since, and shows no signs of being rescinded.
It's important to note though that this protection expires Jan. 19th unless Congress includes it in the new spending bill. Then again, they could adopt another "continuing resolution" to keep the government operating while a budget deal is being negotiated.
"If it is not included, or if there is a government shutdown, the Department of Justice will no longer be prevented from targeting state-legal medical-marijuana," said Morgan Fox, spokesman for the Marijuana Policy.
Again, that's not likely under the current climate.
Despite the Federal Government's actions, the demand for quality cannabis continues.
According to a recently released report from Marijuana Business Daily titled "Marijuana Business Factbook 2017," the U.S. legal cannabis industry is expected to grow by about 30% in 2017, 45% the following year, and an aggregate of 300% between 2016 and 2021.
The numbers look even better in neighbouring Canada: the annual retail marijuana market there could be at least $4.9 billion, but possibly as high as $8.7 billion considering ancillary markets.
This has given rise to a race to create more products right away.
Companies like MYM Nutraceuticals are aggressively pursuing the next stage without regard for the enforcement issues by the US Government. Their strategy is based on superior growing technology, well-crafted branding and innovative distribution opportunities.
Last year MYM signed an exclusive deal with the Quebec municipality of Weedon to build a 1.5 million square foot facility. At completion, Weedon will be one of the largest greenhouse facilities dedicated to marijuana growth in the world, expected to produce over 150,000 kg of cannabis per year.
MYM has also announced two more production facilities; a smaller facility in Laval, Quebec which is due to come online shortly, and the other in Australia that's a co-venture with local government. That facility in New South Wales will house a 1 million square foot growing space slated to start in 2018.
THE WHAT IF SCENARIO
Even if the DOJ takes an enforcement stance, there are some protections built into the Arizona law.
The first is designed to protect medical-marijuana users against any state administration that decides to use the illegality of marijuana under federal law to shut down Arizona's program.
The 2010 law approved by voters allows people with certain specified medical conditions to be certified by the state to obtain up to 2ƒ ounces of marijuana every two weeks. They make purchases through state-licensed dispensaries.
Accordingly, if the Arizona Department of Health Services fails to issue a medical-marijuana-user identification card within 45 days of getting a valid application or renewal, the card is considered to be deemed "issued" and the applicants copy then qualifies as a valid ID card.
A separate section says if the health department is not accepting applications, people can effectively self-certify by providing the same required information in a notarized statement along with the written certification of a physician that the patient needs the drug.
These possibilities are not out of the question, even with the voter approval of the 2010 law.
Arizona's Governor Doug Ducey supports the Session sentiment saying, "I've always thought we should enforce federal law, just like we should enforce state law,".
So while the Feds and States wrestle over the reality of the laws, the prospect of added demand coupled with solid news of governmental support has fortified the positions of cannabis producers and medical companies.
Several states and Canada appear to be willing to take the initiative to legalize marijuana. And legal cannabis companies are moving to meet future demand.
Aurora Cannabis (TSXV: ACB) (OTC: ACBFF)
Through its wholly-owned subsidiary, Aurora Cannabis Enterprises Inc., Aurora Cannabis is a major LP, operating a 55,200 square foot, state-of-the-art production facility in Mountain View County, Alberta. Aurora made waves when it announced the construction of its 800,000 square foot "Aurora Sky" facility second 800,000 square foot production facility at the Edmonton International Airport. Aurora's also involved in Quebec, with its third 40,000 square foot production facility set to be completed in Pointe-Claire, Quebec, on Montreal's West Island. Aurora also holds a minority stake in leading extraction technology company Radient Technologies Inc., based in Edmonton, and a minority stake in Australian company Cann Group Limited, which was the first in Australia to conduct research on and cultivate medical cannabis. Aurora also owns German wholesale importer, exporter, and EU medical cannabis distributor Pedanios.
MedReleaf Corp. (OTC: MEDFF)
MedReleaf sets The Medical Grade Standard for cannabis in Canada and around the world. The first and only ISO 9001 certified cannabis producer in North America, MedReleaf is a R&D-driven company dedicated to patient care, scientific innovation, research and advancing the understanding of the therapeutic benefits of cannabis. Sourced from around the world and perfected in one of two state of the art facilities in Ontario, MedReleaf delivers a variety of premium products to patients seeking safe, consistent and effective medical cannabis.
GW Pharmaceuticals (NASDAQ: GWPH)
GW has established a world leading position in the development of plant-derived cannabinoid therapeutics through its proven drug discovery and development processes, intellectual property portfolio and regulatory and manufacturing expertise. Their lead product candidate is Epidiolex® (cannabidiol) for certain rare and severe early-onset, drug-resistant epilepsy syndromes. GW successfully developed the world's first prescription medicine derived from the cannabis plant, Sativex®, now approved in over 29 countries outside of the United States for the treatment of spasticity due to Multiple Sclerosis. The company has a deep pipeline of additional clinical stage cannabinoid product candidates for both orphan and non-orphan indications with a particular focus on neurological conditions.
For a more in-depth look into MYM you can view the in-depth report at USA News Group: http://usanewsgroup.com/2017/12/04/like-it-or-not-the-cannabis-sector-is-unstoppable-and-its-just-getting-bigger/
USA News Group
Legal Disclaimer/Disclosure: This piece is an advertorial and has been paid for. This document is not and should not be construed as an offer to sell or the solicitation of an offer to purchase or subscribe for any investment. No information in this Report should be construed as individualized investment advice. A licensed financial advisor should be consulted prior to making any investment decision. We make no guarantee, representation or warranty and accept no responsibility or liability as to its accuracy or completeness. Expressions of opinion are those of USA News Group only and are subject to change without notice. USA News Group assumes no warranty, liability or guarantee for the current relevance, correctness or completeness of any information provided within this Report and will not be held liable for the consequence of reliance upon any opinion or statement contained herein or any omission. Furthermore, we assume no liability for any direct or indirect loss or damage or, in particular, for lost profit, which you may incur as a result of the use and existence of the information, provided within this Report.
DISCLAIMER: USA News Group is Source of all content listed above. FN Media Group, LLC (FNM), is a third party publisher and news dissemination service provider, which disseminates electronic information through multiple online media channels. FNM is NOT affiliated in any manner with USA News Group or any company mentioned herein. The commentary, views and opinions expressed in this release by USA News Group are solely those of USA News Group and are not shared by and do not reflect in any manner the views or opinions of FNM. FNM is not liable for any investment decisions by its readers or subscribers. FNM and its affiliated companies are a news dissemination and financial marketing solutions provider and are NOT a registered broker/dealer/analyst/adviser, holds no investment licenses and may NOT sell, offer to sell or offer to buy any security. FNM was not compensated by any public company mentioned herein to disseminate this press release.
FNM HOLDS NO SHARES OF ANY COMPANY NAMED IN THIS RELEASE.
This release contains "forward-looking statements" within the meaning of Section 27A of the Securities Act of 1933, as amended, and Section 21E the Securities Exchange Act of 1934, as amended and such forward-looking statements are made pursuant to the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. "Forward-looking statements" describe future expectations, plans, results, or strategies and are generally preceded by words such as "may", "future", "plan" or "planned", "will" or "should", "expected," "anticipates", "draft", "eventually" or "projected". You are cautioned that such statements are subject to a multitude of risks and uncertainties that could cause future circumstances, events, or results to differ materially from those projected in the forward-looking statements, including the risks that actual results may differ materially from those projected in the forward-looking statements as a result of various factors, and other risks identified in a company's annual report on Form 10-K or 10-KSB and other filings made by such company with the Securities and Exchange Commission. You should consider these factors in evaluating the forward-looking statements included herein, and not place undue reliance on such statements. The forward-looking statements in this release are made as of the date hereof and FNM undertakes no obligation to update such statements.
Media Contact Information:
FN Media Group, LLC
Media Contact e-mail:
U.S. Phone: +1(954)345-0611
SOURCE USA News Group