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- DEA nominee calls cannabis rescheduling ‘one of my first priorities’
DEA nominee calls cannabis rescheduling ‘one of my first priorities’
Plus, the Kelce brothers talk cannabis 🌿
Some news from Cultivated!
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-JB, JR, and ZH
This newsletter is 1,173 words or about a 10-minute read.
💡What’s the big deal?
OH, DEA
DEA nominee Terrance Cole calls rescheduling ‘one of my first priorities’
Signs of life: Terrance Cole, President Trump’s nominee to lead the Drug Enforcement Administration, on Wednesday said restarting the hearings on whether to reclassify cannabis as a Schedule III drug would be “one of my first priorities,” if confirmed.
But Cole declined to specifically endorse the proposed rule change. When pressed by Sen. Alex Padilla (D-CA), Cole said he didn’t know if he was committed to the change.
“I’m leaving the door open to studying everything that’s been done so far, so I can make a determination,” Cole said. Cole answered questions during his confirmation hearing in front of the Senate Judiciary Committee.
What they’re saying: “We see this as a clear signal that the president is open to practical reforms that resonate with a broad swath of the American public. His campaign remarks on the issue last fall struck a chord with millions, and this latest development suggests a willingness to follow through,” The US Cannabis Roundtable, an industry trade group, said.
Back up for a second: Cannabis, as you all know, is considered a Schedule I drug with no approved medicinal use and a high potential for abuse by the federal government.
This classification obviously does not comport with reality, so former President Biden directed the Department of Health and Human Services to begin the process to reclassify cannabis to Schedule III.
While not a panacaea for the industry or advocates, it would be the biggest shift in federal drug policy since the Nixon Administration, and would do away with the 280E tax.
But the process, which was supposed to kick off with a hearing in January, has since stalled under the Trump Administration.
On the campaign trail, Trump spoke in favor of rescheduling but has yet to address the issue as President. His base is increasingly supportive of federal reform, however: Fifty-three percent of Republicans support legalization, according to a recent poll.
And more: Sen. Thom Tillis (R-NC) said during the hearing that, to him, it is “pretty clear” that most states are going to legalize cannabis at some level.
He asked Cole if he was open to forming a “working group” to study the state-federal disconnect on cannabis law. Cole said he was, and that “we need to stay ahead of it.”
-JB
📣 Quotable
“I just want everybody that drops in the draft for whatever character concerns, if it ever pans out, they should just do that exact same character concern,” Former NFL player Jason Kelce said on his podcast addressing his brother Travis’s past marijuana use. “Like, you should have just walked into signing your second deal with a blunt in your hand smoking it as a sign of the paper.”
“I'm not condoning smoking weed, but unless you sign a multimillion-year deal you wanna say ‘f--- you’ to all the people that doubted you because you did smoke weed.”
⏩ Quick hits
Oklahoma wants coordinated effort against intoxicated hemp 🔒
Governor Kevin Stitt called for a cross-agency effort to crack down on intoxicating hemp in Oklahoma. He set out a series of tasks toward that end, including tracking down and investigating product manufacturers and distribution networks, checking compliance for licensed medical dispensaries and identifying regulatory gaps that are allowing the products to remain available in stores. The governor made his plea in a letter sent to various public safety, law enforcement and cannabis regulators.
Ohio issues edibles product alert over glitter ✨
The Ohio Division of Cannabis Control ordered a product alert for Local Edibles brand gummies over the use of "edible glitter." The company insists that the glitter is not harmful to consumers, but the state says the company failed to list the glitter on its product label and failed to show that it was sourced for a licensed and regulated entity.
SBA reaffirms cannabis businesses are ineligible for federal loans 💸
The federal Small Business Association clarified that cannabis-related businesses are not eligible for the agency's two largest loan programs. The Biden administration previously removed similar language in the SBA's guidelines, but this time around, the non-plant touching businesses could be eligible.
Indiana bans cannabis cannabis billboards 🚫
Indiana's legislature passed a ban on cannabis advertising on billboards that was part of a larger Bureau of Motor Vehicles bill. Cannabis is still currently illegal in Indiana, but that hasn't stopped businesses in neighboring states such as Michigan and Ohio from placing ads on roadways to lead out of state.
🤝 Deals, launches, partnerships
Cresco Labs scores major cultivation license in Kentucky 📜
Cresco Labs signed a management services agreement with license winner KSKYAPP LLC, allowing the cannabis firm to enter Kentucky as its medical market is getting off the ground. Cresco was able to enter the market through smaller companies that submitted a total of 128 applications to the state's license lottery. The cannabis giant was able to land cultivation licenses, including one Tier 3 license, which features the largest canopy space allowed.
Wyld launches THC beverages 🍷
Popular gummies brand Wyld has launched a line of hemp-derived THC beverages. Because the drinks are hemp-derived, Wyld can expand into more states that don’t specifically allow regulated cannabis. “No lie, it's the best product we have ever made,” Wyld CEO Aaron Morris said on LinkedIn.
💰 Earnings roundup
Cannabis payment company POSaBIT posts a loss for 2024 📉
POSaBIT, which provides payment services for cannabis businesses, has about 30% less cash on hand at the end of 2024 than it did the previous year, according to its fourth-quarter earnings report. The company was also able to report a 19% increase in adjusted gross profit.
🏃♂️ People moves
MJBiz lays off reporter 👎
Reporter Chris Casacchia was laid off from MJBiz just days after reporting on 4/20, he said on LinkedIn. The layoff comes after Crain Communications shuttered Green Market Report, a cannabis industry news outlet. We at Cultivated believe this industry needs more quality reporting, not less — so we’re sad to see this.
Eli Lilly CMO joins Cardiol 🧪
Former Eli Lilly Chief Medical Officer Dr. Timothy Garnett has been named to the Cardiol Therapeutics board of directors. The company's lead drug, CardiolRx, uses CBD to treat inflammation.
📰 What we’re reading
Don't fear the reefer | Tennessee Lookout
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