What Could Be Bigger Than CBD? The Godfather Knows…
Plus: SAFE meets Senate, charting a course for legal, and Pennsylvania gets greedy?
This article was originally published in October 12, 2019 Cannablurbs newsletter.
The Godfather, Pt. II: Dr. Raphael Mechoulam, the “godfather” of cannabis chemistry, announced a process for creating synthetic, stable cannabis acids. These precursor compounds (like THCA and CBDA) are found in the raw cannabis plant, but are hard to work with, as they naturally convert through heat and time into more familiar stable, neutral cannabinoids (like THC and CBD). The research was conducted through a startup called EPM, in partnership with Mechoulam, six universities across Israel, the U.K. and Canada, and other partners.
Why It Matters: Oh man, a lot to unpack here. For starters, Mechoulam is a legend within cannabis — he’s responsible for originally isolating THC and CBD, identifying the endocannabinoid system, and a host of other discoveries. His association alone means it’s likely worth paying attention to. Secondly, cannabis acids are potentially game-changing for medical purposes, with the potential for different indications and dramatically higher drug potency without adverse side effects (like getting high). Third, it’s another highlight on how U.S. federal drug policies are leaving us even further behind the eight ball on research.
Hello Senators: The Secure and Fair Enforcement (SAFE) Act passed through the House with strong support, as 321 representatives voted Yes vs. only 103 No’s. Notably, 91 Republicans joined 229 Democrats in supporting the bill, as GOP leadership declined to try and fight the bill, and many representatives recognized that legalization’s momentum had tremendous financial implications that can’t be waved away.
Why It Matters: The Senate is going to be a tough putt in terms of getting the SAFE Banking Act through. Proponents are hopeful, however, based (a) on the success in wooing Republicans in the House by framing the issue as a banking one, not a cannabis advocacy one, (b) late adjustments adding hemp protections and other banking regulation changes, and © positive statements from Senate Banking Committee Chairman Mike Crapo. Game on…
Paths to Legal: In our first Guest Article, cannabis investors KEY Investment Partners dissect the different major efforts to legalize (or normalize) cannabis nationally. From a comprehensive amendment to deschedule marijuana to the basic banking reforms needed to allow legalized markets to function, a host of legalization efforts are in play, with substantially different implications and odds of success.
Why It Matters: The SAFE Banking Act could be a huge positive development for the industry, but it’s really only a first step in fixing the somewhat crazy status of cannabis at the national level. Until cannabis is nationally legal or the federal government punts the ball to states, the norm is still legally messy and capital constrained.
Art of the State (Run): Pennsylvania saw a bill introduced to legalize and sell recreational cannabis through state-run stores run by the state’s Liquor Control Board. This follows Governor Tom Wolf’s recent calls for recreational legalization, as well as other top state officials. The bill, which contains expungement and other social equity provisions, is expected to be resisted by Republicans, who hold a slight majority..
Why It Matters: Pennsylvania is trying to bring its stringent, “control state” alcohol approach to recreational cannabis. Legislators say a move would keep profits out of large corporations’ hands. I can personally tell you, I’m not sure a state-run monopoly is better — it’s an approach that’s a pain to consumers, subject to a lot of criticism, and only recently experienced a little reform. Some legalizing jurisdictions like Mexico are considering various state-run elements, while others are ditching theirs, like Utah and Ontario.
SMOKING HOT PRODUCT OF THE WEEK: Potli
Pantry Raiders: Move past the munchies — why can’t cannabis hit your pantry, too? Potli is enhancing your kitchen with both marijuana and hemp infused basics. From honey to olive oil to apple cider vinegar, you can integrate cannabis naturally into your daily routine. Plus, we dig female co-founders in a male-dominated industry.
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