Author: nate marcarelli

Cannabis-infused edibles may soon be legal in Hawaii after the state legislature passed a bill to allow the sale of edible products in dispensaries. The popularity of cannabis edibles among consumers could provide a significant boost to legal marijuana sales in Hawaii and create new opportunities for cannabis businesses with licenses to operate in the state.

Hawaii Legislators Pass HB 2097 and Allow for Sale of Marijuana Edibles

Hawaii currently has a total of eight (8) medical cannabis licensees, with those approved operators being licensed to sell medical marijuana at dispensaries that meet certain zoning and other legal requirements. Thanks to a new law, the operators may soon be allowed to sell cannabis edibles in addition to other medical cannabis products.

Hawaii created a Medical Marijuana Dispensary Program in 2015, established a dispensary system for the legal purchase of medical cannabis in 2016, and began selling medical cannabis at dispensaries in 2017. However, dispensaries were not permitted to sell cannabis edibles such as gummies, cookies, brownies, and chocolate bars. The reluctance of Hawaii lawmakers to allow edible products stemmed from a fear that marijuana-infused candies might appeal to young children and result in some kids accidentally consuming cannabis.

The Hawaii State Legislature recently reconsidered its stance on edible products and officially passed legislation to allow for the sale of cannabinoid-infused edibles at dispensaries in the state. Although the legalization of cannabis edibles for medical use had widespread support among legislators in Hawaii, it was not a foregone conclusion that the bill would pass in 2020. That’s because the COVID-19 pandemic shortened this year’s Hawaii legislative session and made it difficult for state lawmakers to convene and debate the proposed legislation.

HB 2097 Also Authorizes Remediation of Cannabis Products in Hawaii

HB 2097 does more than just legalize cannabis edibles in Hawaii. The bill begins with an introduction that states its three purposes:

1. Authorizing licensed medical marijuana dispensaries to manufacture and distribute edible cannabis products.
2. Authorizing the Hawaii Department of Health (DOH) to consider processes that may allow cannabis or manufactured cannabis products that fail testing to be remediated. This means that cannabis must meet certain decontamination standards before it can be sold on the consumer market in Hawaii.
3. Authorizing the Hawaii Department of Health (DOH) to allow licensed dispensaries to provide educational and scientific information and to sponsor events related to medical cannabis.

Edibles Offer Alternative Way to Consume Medical Cannabis

Randy Gonce, the Hawaii Cannabis Industry Association program director, commented on HB 2097 in a press release and called the law’s passage “a victory for the state’s 30,798 registered medical cannabis patients.” Gonce specifically addressed the introduction of edibles to the Hawaii cannabis market by observing that “coronavirus has prompted more patients to seek ingestible forms of cannabis to replace inhalation due to concerns about lung health.”

The hope among proponents of the new law is that patients who use medical cannabis to treat serious health conditions will benefit greatly from being able to consume edibles instead of smoking or inhaling medical marijuana. The Hawaii Cannabis Industry Association (HCIA), an advocacy group for the state’s legal cannabis industry, praised lawmakers for passing HB 2097 and noted that the law will provide medical cannabis patients with “alternative ways to take their medication other than inhalation.”

When Will Hawaii Consumers Be Able to Buy Cannabis Edibles?

The passage of the edible legislation is not the end of the story. The bill has been sent to the desk of Hawaii Governor David Ige, who will have to decide whether to sign the bill into law or reject it. There is still some question about whether Ige will ultimately approve the bill because he has resisted cannabis policy reform attempts in the past.

The new law is technically supposed to take effect on January 1, 2021, but the Hawaii government has not yet established a timeline for introducing cannabis edibles to dispensaries. If and when the governor signs the bill into law, the Hawaii Department of Health (DOH) will then need to create rules for how, when, and under what circumstances cannabis edibles can be sold in Hawaii. This must happen before medical marijuana dispensaries can start stocking shelves with edible and drinkable marijuana products because HB 2097 specifically stipulates that edibles can be only manufactured and distributed within the state “under certain conditions.”

What Effect Will Edibles Have on Hawaii’s Cannabis Market?

The legal cannabis market in Hawaii is expected to generate up to $20 million in total sales revenues in 2020. Edible cannabis products could help operators generate even greater revenues by giving consumers in Hawaii even more ways to consume cannabis. This could be especially helpful for medical marijuana patients who have concerns about smoke inhalation or who worry about the potentially harmful effects of vaping. Additionally, many people believe that ingesting cannabis through edibles can create a longer-lasting high for the user. As a result, many Hawaii cannabis operators believe that there will be a high demand for cannabis edibles the moment they are introduced to state-licensed dispensaries.

Contact Scythian Cannabis Real Estate Today

Scythian Real Estate is a full-service real estate partner that provides assistance to cannabis operators who are looking to expand into Hawaii or other thriving U.S. cannabis markets. Scythian already works with some of the country’s largest cannabis operators, including Curaleaf and The Green Solution.

For more information about how Scythian might be able to help your cannabis company, email Scythian Real Estate today.

PLEASE NOTE THAT THIS BLOG IS NEITHER AN OFFER TO SELL NOR A SOLICITATION OF AN OFFER TO BUY SECURITIES IN SCYTHIAN REAL ESTATE FUND.

The 2020 election results brought welcome news for the cannabis industry, with voters in five (5) states approving cannabis ballot measures to legalize the sale of cannabis. As a result, residents in Arizona, Mississippi, Montana, New Jersey, and South Dakota could soon have access to marijuana at state-licensed dispensaries. This is an extremely favorable outcome for sophisticated cannabis operators who are looking to expand their reach into new cannabis markets.

Cannabis Legalization Measures Approved in Arizona, Mississippi, Montana, New Jersey, and South Dakota

A total of five states had 2020 state ballot initiatives that addressed the legalization of cannabis. Those measures were a resounding success, with all five states voting “yes” and creating new cannabis markets. It will now be legal to purchase cannabis for recreational use in Arizona, Montana, New Jersey, and South Dakota. This brings the total number of states with legal adult-use cannabis to 15. In addition to legalizing recreational marijuana, voters in South Dakota also voted in favor of legalizing marijuana for medical use. This makes South Dakota the first-ever state to legalize both recreational and medical cannabis at the same time. Meanwhile, voters in Mississippi chose to legalize cannabis for medical use only.

Steve Hawkins, the executive director of the non-profit legal group Marijuana Policy Project (MPP), observed that the success of the cannabis ballot initiatives means that approximately one-third of the U.S. population now resides in states where cannabis is legal for recreational use. Hawkins also noted that the legalization of medical-use cannabis in Mississippi and South Dakota means that 70% of all states now allow for medical cannabis sales. Matthew Schweich, deputy director at the MPP, was optimistic that this number will grow in the future and possibly result in federal cannabis legalization: “If we can win in New Jersey, Mississippi, South Dakota, Montana, and Arizona, it’s going to send a really loud message to Congress that it’s time to fix this at the federal level in 2021.”

What Is the Economic Impact of Legal Cannabis in NJ, Arizona, Mississippi, Montana, and South Dakota?

It will now be up to the state legislatures in Arizona, Mississippi, Montana, New Jersey, and South Dakota to implement the voter-approved laws and create the regulatory structures for legal cannabis sales. Once this happens, experts project that the cannabis markets in these five states could generate more than $2.5 billion in annual revenues by 2024. From that total, New Jersey dispensaries may bring in almost $1 billion annually in recreational cannabis sales, while Arizona dispensaries could reach $760 million in yearly cannabis sales.

The regulated cannabis industry in the United States continues to pay huge returns on investment for cannabis operators, particularly during 2020 when the pandemic forced many other businesses to temporarily close their doors. While states across the country issued shutdown orders for most retail businesses, cannabis dispensaries were allowed to stay open as “essential businesses.” The success of dispensaries in states where cannabis is legal for either recreational or medical use has pumped a lot of money into state and local economies through tax revenues. The expectation among cannabis industry observers is that these trends will continue in municipalities throughout Arizona, Mississippi, Montana, New Jersey, and South Dakota now that cannabis can be legally purchased in those states.

What Does the Future Hold for Cannabis Legalization in the United States?

While most Americans currently have access to legal cannabis in the form of either medical marijuana or recreational marijuana, both the sale and use of cannabis still remain illegal at the federal level. The hope among cannabis legal reform advocates was that Democrats might take control of the U.S. Senate in the 2020 election, but it appears that Republicans could maintain a majority. Continued GOP control of the Senate likely means that it will be at least two (2) more years before there are any serious efforts to legalize cannabis federally.

Marijuana is currently classified as a Schedule I drug under the Controlled Substances Act (CSA). This federal law defines marijuana in the same category as other substances with “a high potential for abuse,” including heroin, LSD, and ecstasy. Although the reclassification of marijuana might not happen anytime soon, there is growing optimism that more and more states will legalize cannabis in the years ahead. For instance, the legalization of pot in New Jersey could prompt New York and Pennsylvania, New Jersey’s neighboring states in the Tri-State Area, to pursue cannabis legalization efforts of their own – particularly once lawmakers and residents in those states see the tax revenues that are generated by legal cannabis sales in the Garden State.

Contact Scythian Cannabis Real Estate

Scythian Real Estate is a full-service real estate partner to some of the largest and most successful cannabis operators in the country, including The Green Solution and Curaleaf. If you are a cannabis operator looking to expand into a new cannabis market, or if you are a cannabis operator in need of capital funding, Scythian may be able to help. Email us today.

PLEASE NOTE THAT THIS BLOG IS NEITHER AN OFFER TO SELL NOR A SOLICITATION OF AN OFFER TO BUY SECURITIES IN SCYTHIAN REAL ESTATE FUND.

An effort to get two cannabis legalization measures on the ballot in Montana has succeeded. As a result, Montana voters will have the opportunity to weigh in this November on whether to legalize recreational marijuana use within state borders. What could this mean for cannabis companies who already operate medical marijuana dispensaries in Montana? Read on to learn more.

Campaign Secures Signatures to Get Cannabis Legalization on Montana Ballot

Medical cannabis is already legal in Montana, but now it appears that recreational cannabis could soon be legal in Montana as well. That’s because organizers of an effort to get cannabis legalization measures on the ballot in November 2020 were able to submit more than 130,000 signatures before the deadline.

The attempts to secure the required signatures in support of the Montana recreational cannabis legalization measures were made more difficult than usual because of the COVID-19 pandemic. Due to social distancing guidelines, organizers had to work incredibly hard just to reach potential supporters. The difficulties posed by coronavirus-related social distancing requirements were magnified by a Montana court ruling in April that prevented the campaign from using electronic signatures.

Ultimately, despite the impediments, campaigners behind the effort to put the cannabis legalization measures on the Montana ballot succeeded. New Approach Montana submitted more than 130,000 signatures in July, but the group had to wait for state and local officials to verify the signatures. Now the signatures have been verified by county officials. Once the Montana Secretary of State’s Office officially certifies the signatures, Montana residents will be allowed to vote on the adult-use marijuana legalization measures in the upcoming election.

Montana Residents Will Vote on Recreational Marijuana Legalization

Two complementary cannabis legalization initiatives will appear on the 2020 ballot:

• Statutory Initiative 190 (I-190): This ballot measure would create a system for regulating and taxing recreational cannabis sales in Montana. The statutory measure specifically calls for a 20% sales tax on marijuana sold at dispensaries.
• Constitutional Initiative 118 (CI-118): This ballot measure would amend the Montana Constitution by setting the legal age for marijuana consumption in Montana at 21. In other words, cannabis operators in Montana would be prohibited from selling recreational marijuana to anyone under the age of 21.

After it was announced that the signatures had been verified and that Montana voters will get to cast votes on whether to legalize cannabis for recreational use, New Approach Montana issued a statement online. The group noted the incredible odds that they overcame and emphasized that their work was not yet done: “Now, we are focused on building support with voters from across the state.” In an email sent to supporters, New Approach Montana added that the group faces a fundraising problem because so much money needed to be spent on the signature drive due to the added difficulties of obtaining a massive number of signatures during a pandemic. Although it is unclear at this time if the Montana ballot measures will be successful, the popularity of recreational cannabis measures nationwide continues to grow: polls show that the overwhelming majority of Americans support the legalization of marijuana for recreational use.

Additional Tax Revenues Expected from Cannabis Legalization in Montana

Dave Lewis, a former Montana state legislator, noted that the legalization of marijuana for recreational use could provide a huge boost to the Montana state budget. This would be particularly helpful for the state after the economic shutdown caused by COVID-19. According to Lewis, legalizing adult-use cannabis would add almost $50 million annually to the Montana budget. Similarly, the Marijuana Policy Project (MPP) estimated that the new laws in Montana would generate nearly $130 million in tax revenues for the state in just the first five (5) years.

Lewis added that these additional revenues are “vital to the future budget” of the state because projected tax revenues for 2020 and 2021 are expected to be significantly reduced from previous years, with many important services likely struggling to survive without state funding. These services in need of funding include veterans’ services, substance abuse treatment programs, and healthcare.

Contact Scythian for Information on Cannabis Real Estate Opportunities

Scythian Real Estate is a full-service real estate partner of the largest cannabis operators in the United States. Scythian provides cannabis companies with access to capital, resources, and expertise. To learn more, email Scythian Real Estate.

PLEASE NOTE THAT THIS BLOG IS NEITHER AN OFFER TO SELL NOR A SOLICITATION OF AN OFFER TO BUY SECURITIES IN SCYTHIAN REAL ESTATE FUND.

There is growing expectation that Mexico will eventually legalize marijuana for recreational use, allowing the country to enter the legal weed market and start generating significant revenues. When this does finally happen, sophisticated cannabis operators will surely flock south of the border to open dispensaries and savvy investors may take a long, hard look at cannabis real estate investing options in Mexico. But recent developments indicate that it still might be a while before Mexico makes it legal for residents to purchase recreational cannabis.

Recreational Marijuana and Medical Marijuana Legal in Many Countries

Medical marijuana is currently legal in dozens of countries, but just two countries have legalized recreational marijuana: Uruguay in 2013 and Canada in 2018. A number of U.S. states and territories have legalized cannabis for recreational use, but the vast majority of states still prohibit recreational cannabis sales. While many countries have already legalized medical cannabis, the legalization of recreational cannabis in these countries has taken a bit more time. This is an important distinction because the need to wait for a physician’s prescription is still a major inhibitor on legal cannabis sales.

One of the driving forces behind the push to legalize cannabis for recreational use in Mexico and other nations around the globe is that recreational marijuana sales provide a huge boost to national economies. In the United States, the states that have legalized recreational marijuana have already seen the positive effects it can have on their local economies. For instance, Colorado recently set an all-time record for legal cannabis revenue in a single month, which means more tax dollars for the state.

Global Cannabis Market Is Booming

Global sales of marijuana have more than tripled since 2014, when several U.S. states first started to legalize cannabis for recreational use. In 2018, worldwide sales of cannabis totaled nearly $11 billion. This figure is expected to reach as high as $50 billion annually by 2030, with a large percentage of legal weed sales and the bulk of retail marijuana revenue coming from the United States and Canada.

One North American country that is not yet generating legal cannabis revenue is Mexico. That’s because Mexico has yet to legalize marijuana for recreational use. But there is a belief among many industry observers that Mexico will be the next country to legalize recreational cannabis.

How Long Before Mexico Legalizes Recreational Cannabis?

In 2018, the Mexico Supreme Court ruled that the government could not ban the possession or use of marijuana because doing so would be a violation of the Mexican constitution. This was actually the fifth time that the highest court in Mexico had issued such a ruling in favor of recreational cannabis. But this did not mean that retail dispensaries could start opening across the country and selling cannabis and cannabis-related products. First, Mexican lawmakers would have to pass legislation for the regulation of the cannabis industry within the country’s borders.

Unfortunately for cannabis operators looking to establish a presence south of the border, legislators have taken their time crafting the legislation required to create a legal cannabis market in Mexico. The Mexico Supreme Court sensed that the legal framework would not be finished before an October 2019 deadline, so the court extended the deadline to the end of April 2020. Now, once again, the Mexican Supreme Court has extended the deadline for legalizing recreational cannabis in the country: lawmakers now have until December 15, 2020 to officially end the prohibition of recreational cannabis in Mexico. This extension was deemed necessary because of delays caused by the coronavirus pandemic, which has shut down many businesses in Mexico and limited the ability of legislators to convene.

What Will the Mexican Cannabis Market Look Like After Legalization?

Cannabis retail operators will likely be very interested in exactly what shape the finalized legislative proposal looks like when Mexican lawmakers eventually get around to passing a law to legalize recreational marijuana. Some of the most important aspects of any cannabis law are likely to include:

• Possession of small amounts of marijuana will be decriminalized.
• Adults who are 18 years and older will be legally allowed to purchase cannabis for personal use.
• Adults will also be able to cultivate cannabis for personal use, with certain limitations on the number of registered marijuana plants and the weight of marijuana yield annually.
• Cannabis businesses will be able to apply for licenses to sell marijuana in retail dispensaries. These cannabis business licenses would be issued by the Mexican Institute of Regulation and Control of Cannabis.
• Cannabis sold at Mexican dispensaries would be subject to taxation at a rate of 12%.

Certain other aspects of cannabis legalization in Mexico remain unclear. For instance, it has not yet been determined whether marijuana edibles and marijuana-infused drinks will be legalized as well.

Contact Scythian Cannabis Real Estate

Although recreational marijuana is not yet legal in Mexico, it is legal in Colorado, Illinois, Michigan, and several other states in the U.S. Scythian Real Estate is a full-service real estate partner to some of the biggest cannabis operators in the United States. Scythian also manages a growing real estate portfolio focused primarily on retail marijuana dispensaries. For more information, email Scythian Real Estate today.

PLEASE NOTE THAT THIS BLOG IS NEITHER AN OFFER TO SELL NOR A SOLICITATION OF AN OFFER TO BUY SECURITIES IN SCYTHIAN REAL ESTATE FUND.

The overwhelming majority of Americans support nationwide legalization of cannabis. The results of a recent survey conducted by the Pew Research Center indicate that approximately 66% of U.S. residents believe that the use of marijuana should be legal for both recreational and medical purposes. The strong support for marijuana legalization in the United States bodes well for cannabis operators who are looking to expand to new geographical areas, as well as forward-thinking investors in the cannabis real estate market.

Increasing Support for Legalizing Cannabis in the United States

An increasing number of Americans have voiced support for legalizing cannabis over the last two decades. The recent survey results showing that two-thirds of Americans want the federal government to make cannabis use legal continues a trend: while nearly 66% of Americans opposed cannabis legalization in 2000 and roughly 50% opposed marijuana legalization in 2010, the number opposing legalization has fallen to just 32% today.

The most recent survey was conducted as part of Pew Research Center’s American Trends Panel, which is a nationally representative panel of randomly selected U.S. adults. The survey found that while one-third of U.S. residents still do not believe that cannabis should be legal for recreational purposes, more than 90% of Americans believe that cannabis should at least be legal for medical purposes. Moreover, the strong support for cannabis legalization efforts goes well beyond active users of cannabis: just 48% of American adults indicate ever having tried marijuana.

Impact of Politics on Federal Cannabis Legalization Efforts

As might be expected, there is a partisan divide when it comes to legalizing marijuana in the United States. The Pew survey found that 78% of self-identified Democrats think that cannabis should be legal, while just 55% of self-identified Republicans want cannabis to be made legal across the country. Interestingly, the partisan divide shrinks considerably when factoring in generational differences: 71% of Millennial Republicans support marijuana legalization, as compared to 78% of Millennial Democrats.

The differences and similarities between the country’s two main political parties when it comes to endorsing pot legalization efforts gives some indication of how important the upcoming 2020 presidential election could be for legalization measures in various states. Currently, 11 states and the District of Columbia (Washington, D.C.) have legalized cannabis for recreational use, while 33 states have legalized cannabis for medical use.

Under federal law, marijuana is still illegal. Depending on who is elected president in November – Donald Trump or Joe Biden – it is possible that more states could push to legalize cannabis for recreational and/or medical use in the next four years. This would likely have significant consequences for the cannabis industry as a whole. It would also be of particular importance to cannabis retail operators and cannabis investors who would no doubt look to take advantage of opportunities to enter new markets.

Contact Scythian for Information on Cannabis Real Estate Opportunities

Scythian Real Estate is a trusted real estate partner of cannabis operators in several states, including Colorado, North Dakota, and Pennsylvania. Scythian specializes in sale-leaseback opportunities with sophisticated operators and is continuing to build its acquisition pipeline across the country. These acquisitions are currently valued at around $40 million, with 19 assets under management. For additional information about cannabis real estate, email Scythian Real Estate.

PLEASE NOTE THAT THIS BLOG IS NEITHER AN OFFER TO SELL NOR A SOLICITATION OF AN OFFER TO BUY SECURITIES IN SCYTHIAN REAL ESTATE FUND.