Trumps Stance on Cannabis Legalization, 420 $11 Million lawsuit and Mexico in Cannabis

RIVERSIDE, Calif. - Sept. 19, 2019 - PRLog -- On the domestic front, where does President Trump stand on cannabis legalization? He recently said he believes it should be left up to individual states, and has indicated support for legislation that would protect states with legal cannabis programs from federal intervention. However, he also donated 100,000 dollars of his salary to fund the publication of a surgeon general's advisory warning of the risks of marijuana use, which some have called misleading in its claims of legalization endangering adolescents.

In California, a lawsuit is filed by investors against a conglomeration of business entities known as 420 Companies that own and run a prominent marijuana shop in Santa Ana. They allege, among other things, that the defendants turned down a 75 million dollar buyout offer from Acreage Holdings without consulting investors, and seek the dissolution of the company as well as 11 million dollars in damages.

In Illinois, regulators issue the first five recreational cannabis retailer licenses, all to MMJ stores owned by Chicago-based Green Thumb Industries. Although existing medical marijuana dispensaries are receiving first consideration for permits, a controversial rule excludes those who relocate, despite the ability of individual jurisdictions to opt out of the program. More shops are expected to be licensed over the coming weeks.

In Michigan, almost forty percent of jurisdictions that approved a recreational cannabis ballot proposal last year have introduced bans on local retail sales. Experts speculate that, as has been the case in California, the restrictions could hamper the legal industry and bolster the state's considerable illicit market when legalization goes into effect next year.

In finance, Tilray announces the acquisition of Calgary-based marijuana retailer 420 Investments, through its wholly-owned subsidiary High Park Holdings. Upon the completion of certain performance milestones, 420, which operates 6 adult use stores throughout the country with 16 more on the way, will receive 110 million Canadian dollars worth of stock, and is expected to close Q-1 of 2020.

Also in Canada, producer Canveda, a wholly-owned subsidiary of MPX International, receives Good Manufacturing Practice Certification for its 12,000 square foot manufacturing facility in Peterborough, Ontario. MPX intends to use its Canadian assets as a base for its exportation to international markets, including Australia, and plans to go after EU GMP Certification next.

In Mexico, marijuana legalization efforts are well underway. Senator Julio Menchaca Salazar, of the government's ruling MORENA party, filed legislation to allow for the possession, cultivation, and consumption of cannabis by adults. This comes a month before the Supreme Court's deadline to end prohibition, after a 2018 ruling stated that the ban on personal use and cultivation is unconstitutional.

Written by Jacqui Verdura

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