MISSOURI PASSES STRICT NEW LEGISLATION ON EDIBLES AND BACKGROUND CHECKS | TRICHOMES Morning Buzz
May 19, 2020
The Morning Buzz presented by TRICHOMES brings you late-breaking news that tells you what’s happening within the cannabis industry.
Sales soar as online shoppers say “I want my CBD”, Missouri is rolling out some strict new legislation, and over at High Times things might be feeling a little low. It’s Tuesday, May 19th, and this is your TRICHOMES Morning Buzz.
**CBD Companies have Reported a Spike in Online Sales as Coronavirus Shuts Down Retail Shops
According to Hemp Industry Daily, when COVID-19 spread and forced store closures, California-based Papa & Barkley lost about half of the 400 small CBD retail shops where the company was selling its products.
Then online sales exploded. In March alone, as the nation went on lockdown, Papa & Barkley’s online sales grew 240% over previous monthly averages, the company said. In April, online sales increased another 88%, according to the company, which sells both cannabis and CBD products.
It’s not just Papa & Barkley seeing a consumer shift to online purchases as brick-and-mortar retailers feel the financial pain of the pandemic. The U.S. Commerce Department reports that U.S. retail sales dropped 16.4% from March to April.
About a third of CBD consumers say they will shift from brick-and-mortar stores to online to buy their products during the pandemic, according to Bethany Gomez, managing director of the Brightfield Group, a consumer research firm.
** Medical Cannabis Gummies and Certain Edible Shapes are Being Banned in Missouri
Mj Biz Daily reports, Missouri lawmakers passed a bill that forbids the sale of medical cannabis edibles that could attract children and also tightens criminal background checks for those who work in the state’s medical cannabis industry. It’s unclear currently how much of an impact the measure will have.
Missouri’s medical cannabis sales were expected to start in the spring, but the coronavirus has delayed the launch. Sales now are expected to start around late summer.
The legislation, which still must be signed by Republican Gov. Mike Parson, includes several provisions, including a ban on cannabis edibles designed in the shape of a human, animal, or fruit. Gummies are also prohibited altogether. Each package containing 10 milligrams or more of THC must be labeled with the universal cannabis packaging symbol.
The legislation also includes a requirement that medical cannabis owners, managers, employees, and contractors submit fingerprints for a state and federal criminal background check.
** High Times Terminates Humboldt Heritage Deal & Extends Regulation A Fundraising
A recent SEC filing shows that Hightimes Holding Corporation has extended its Regulation A fundraising after a unanimous board decision for an 11-for-1 stock split beginning June 1st.
According to Ganjapreneur, a report filed last week with the SEC shows that Hightimes Holding Corporation will once again be extending its fundraising efforts and public listing until as late as June 30th, 2020. Additionally, in the same document, the company reported it will be terminating a recently announced deal to acquire Humboldt Heritage Inc. and its subsidiaries.
High Times first started selling Regulation A shares to an eager fanbase in July 2018 after multiple failed attempts at going public. Many fans have since started asking what happened to their investments, but no timeline for being listed has been released.
In late March 2020, the company signed a letter of intent to acquire Humboldt Heritage and subsidiaries Humboldt Sun Growers Guild and Grateful Eight LLC, which would have given the company access to cultivation, production, and manufacturing capabilities in California. That deal has apparently been terminated, however, as per the announcement in the recent SEC filing.
A few weeks prior to the latest Regulation A extension, High Times announced it had reached an agreement for the acquisition of 13 dispensaries owned by Harvest, a Tempe-based operation. Harvest currently operates dispensaries in California, Arizona, Pennsylvania, Arkansas, Florida, Maryland, and North Dakota.
Despite the announced acquisitions and High Times Holding Corp. having received its trading symbol from the Financial Industry Regulatory Authority, the company has not yet set a specific timeline for going public.
**That was today’s buzz! Have a response to any of the stories on today’s show? Share your comments when you join the conversation with the professionals of the cannabis community at trichomes.com – our beta is now open so be sure to sign up – it’s free!
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**and my name is Alyson Ben-Yehuda, take care.