Welcome to Senior Cannabis Digest. This week we look at investing in companies that service the cannabis sector, the early results of Montana’s new adult-use cannabis program, Carlos Santana’s relationship with cannabis and more. Enjoy.
Investor News and Notes
Here’s a tip for investors who want to get involved in the cannabis sector but find investing in individual cannabis companies too risky. One way to help manage that risk is to invest in companies that produce goods and services used by both cannabis companies and others.
An example of how to do that comes from The Hawthorne Gardening Co., a subsidiary of Scotts Miracle-Gro. Hawthorne recently acquired two companies that serve both commercial cannabis growers and individuals: Luxx Lighting and True Liberty Bags.
Hawthorne Gardening Co. paid $215 million to acquire Lux Lighting and $10 million for True Liberty Bags.
According to MJBizDaily, Luxx is a leading provider of lighting systems for indoor growers of all types, while True Liberty provides liners and other storage solutions for dry and cure cannabis plants. The bags are also used by commercial organic farmers, food storage experts and hobby growers to keep their foods fresh.
Hawthorne division president Chris Hagedorn told MJBizDaily the acquisitions “reinforce the company’s commitment to provide additional products and solutions to cannabis cultivators in state-legal markets.”
Scotts expects Luxx to add $100 million in sales on an annualized basis. It said it plans to market and distribute the brand’s products in emerging cannabis markets such as the East Coast.
A wholly-owned subsidiary of Scotts Miracle-Gro, The Hawthorne Gardening Company is described as a leading provider of nutrients, lighting and other materials used in the indoor and hydroponic growing segment. A second wholly-owned subsidiary, The Hawthorne Collective, was created by Scotts to invest in emerging areas of the cannabis industry.
To learn more, we suggest you read the article that appeared in the January 4, 2022 issue of MJBizDaily. Simply click on the link that follows.
mjbizdaily.com/scotts-miracle-gro-expands-cannabis-holdings-expects-sales-decline/?
Stats of the Week
Several numbers caught our eye this week. The first two—380 and $1,566,980—are examples of what can happen when you give the people what they want.
Graham Abbott, writing for Ganjapreneur, reports that Montana, the latest state to launch an adult-use cannabis program, posted $1,566,980 in sales of cannabis products in the first two days of operation, according to the state’s Department of Revenue. Those sales took place at the 380 dispensaries now operating in the state and are taxed at a rate of 20 percent.
According to Abbott, customers can purchase up to one ounce of cannabis at a time from dispensaries, or the THC equivalent via other products including up to 800 milligrams of edibles or eight grams of concentrate.
For a little context, according to the most recent census the State of Montana ranks 44th in population with 1,085,004 residents. Given those sales figures, one suspects a significant segment of the population welcomed the new program with open arms.
Montana now joins 17 other states and the District of Columbia that allow the adult use and possession of cannabis products.
And if you are still wondering if this cannabis thing is just a “flash in the pan,” here are two more figures of note. TJ Branfalt, also writing for Ganjapreneur, reports Missouri’s medical cannabis sales have exceeded $200 million during the program’s first 14 months.
While that sales figure may not seem as impressive as Montana’s first two days, it represents purchases made by 160,000 registered patients at the state’s 180 dispensaries.
While adult use customers can just walk into a retailer to purchase a product, medical marijuana patients must have a condition that qualifies them to be admitted to a state program. This restricts the number of individuals who can access cannabis products.
In addition, Javier Hasse, reporting for Benzinga, writes that Headset, a provider of data and analytics focused on the cannabis industry, expects the U.S. cannabis market to reach $45.8 billion in sales by 2025.
So, yeah, as we have said before, we think this cannabis thing is real. Perhaps one day we will even talk about the cannabis sector as being too big to fail.
You can learn much more by reading Graham Abbott’s article in the January 5, 2022 issue of Ganjapreneur, TG Branfelt’s article in the January 3, 2022 issue of Ganjapreneur and Javier Hasse’s article in the January 5, 2022 issue of Benzinga.
www.ganjapreneur.com/montana-sells-1-5m-of-cannabis-during-programs-opening-weekend/?
www.ganjapreneur.com/missouri-medical-cannabis-sales-reach-200m-in-14-months/?
Cannabis Research
There is good news for anyone who believes there needs to be more research on cannabis, both its potential benefits and dangers.
According to Kyle Jaeger, writing for Marijuana Moment, two companies have harvested cannabis to be used in research projects with the blessing of the Drug Enforcement Administration (DEA).
Jaeger points out that for more than 50 years, only a single facility at the University of Mississippi has been permitted under a federal agreement to grow marijuana for study purposes. That is no longer the case. Several companies received conditional approvals for their applications to grow cannabis for research in May.
Some in the industry believe this step means that not only will there be more cannabis produced for research but what is produced will more closely resemble the cannabis already available to consumers in the legal market, which will make research more meaningful.
The two companies—Groff North America Hemplex and the Biopharmaceutical Research Company (BRC)—say they have started growing and harvesting plants after officially receiving registrations from the DEA.
Said George Hodgin, CEO of BRC,“These steps are taking place because of the loud drumbeat of the advocates of the cannabis community over the past decades.”
Jaeger notes that advocates, lawmakers and health officials alike have pushed for expanded cannabis research, with many complaining that the current supply of government-grown marijuana for studies is insufficient and that its products are chemically dissimilar from what’s available at dispensaries in state-legal markets.
National Institute on Drug Abuse (NIDA) Director Nora Volkow told Jaeger that it would be “valuable” for researchers to access cannabis from such retailers to better understand “the risks and benefits of what consumers are taking in states across the country.”
If you wish to learn more, we urge you to read Kyle Jaeger’s article in the January 4, 2022 issue of Marijuana Moment.
Senior Celebrity Spotlight
Grammy Award-winning guitarist Carlos Santana, long known for his pioneering blend of Latin-influenced rock, is also an advocate for the use of cannabis and has even started his own cannabis company. In fact, it’s not uncommon for Santana to pause during a concert to speak on the “spiritual use of cannabis.”
Santana recently told WeedMaps News that he views cannabis as less of a product-based commodity and more as a medicine. He said that as a young child growing up in Tijuana, his first experiences with cannabis were in his mother’s garden.
Said Santana, “When I was a child my mom used to have this plant for medicine. She would put it in alcohol and let it sit there. Then, you were able to take care of your knees for rheumatism or arthritis, any number of things.”
Santana’s own product line, Mirayo by Santana, which is available in California, features sungrown cannabis in a few different forms—5-packs of half-gram pre-rolls and 7-gram jars of flower. Products are available in three different strains, or what he calls “categories of consciousness”—Centered (indica), Radiance (sativa), and Symmetry (hybrid).
However, Santana still likes to explore other cannabis products in addition to those produced by his company. For example, he says he is a fan of Ice Cream strains, such as Ice Cream and Ice Cream Cake which are award-winning hybrids with a balanced high that’s described as being both alert and relaxing, which he believes makes them “perfect for creating.”
He also is a fan of Sativa strains because they allow him to be productive and creative. In addition, while he still likes to consume cannabis by smoking it, he told WeedMaps News he is starting to experiment with gummies.
Said Santana, “For me, it’s still always about consciousness. Finding something to stimulate your creativity, and dive into different kinds of consciousness that can collectively awaken people to create more peace, unity and harmony. That’s what it’s all about.”
You can learn more about Carlos Santana’s relationship with cannabis by reading the article “3 Weed Products Carlos Santana Can’t Live Without.” While the article was produced by WeedMaps News, it recently appeared in the December 31, 2021 issue of Benzinga.
www.benzinga.com/markets/cannabis/21/12/18584457/3-weed-products-carlos-santana-cant-live-without?
Medical Cannabis and HR Policies
A new study suggests Human Resource professionals may need to take a fresh look at the use of medical marijuana by employees and adjust corporate policies to accommodate it.
That’s the word from Wendy N. Buice and Steven V. Cates who conducted a literature review and produced a survey questionnaire that was completed by 57 working adults. The purpose of the study was to determine if medical marijuana should be protected in the workplace and under what conditions.
Buice and Cates contend that the results of their study indicate that the use of medical marijuana is seen by employees as a viable medical treatment and companies should recognize and support this form of treatment.
They also believe the results indicated the employment status of employees who use medical marijuana should be protected under the Family and Medical Leave Act or FMLA. Further, they say those who use medical marijuana for treating long-term and permanent illnesses may qualify for protection under the Americans With Disabilities Act or ADA.
According to Buice and Cates, the main takeaways from their study are that employees see marijuana in a positive light, consider it a viable medical treatment, and expect human resource management to support policies that allow for the use of medical marijuana.
The article by Buice and Cates, High Times for U.S. Employees: Human Resource Management Considerations in Addressing Marijuana Legalization in U.S. Organizations, appeared in Volume 8, issue 6, 2021 of the journal Applied Economics and Finance.
If you wish to read an abstract of the article, simply click on the link that follows.
econpapers.repec.org/article/rfaaefjnl/v_3a8_3ay_3a2021_3ai_3a6_3ap_3a34-46.htm
Senior Cannabis Digest is compiled and edited by Joe Kohut and John Kohut. You can reach them at joe.kohut@gmail.com and at 347-528-8753.
