Here are the top 5 stories from the previous week
Good morning MRR readers!
It was a wild week last week in the world of cannabis with groundbreaking news out of Asia as South Korea becomes the very first in the region to legalize medical marijuana. We are also seeing the recall in Canada extend to B.C. as “Mold-Gate” continues. We are also seeing a search in real estate distributions due to cannabis, but none more prevalent than the massive Green Street building which is set to open this month in Los Angeles. We are also seeing prices fall in Canada as investors start to realize what the real tangible value of some Canadian companies will have. Last but not least, with just a few short days before Michigan goes full legal, entrepreneurs are looking to the state to become a “go-to” state for cannabis companies to build from.
As always we’ll break down the top stories from around the industry, just remember to click the image following the snippet in order to read the full story.
South Korea Becomes First Country In East Asia To Legalize Medical Marijuana
South Korea became the first country in East Asia to legalize medical cannabis, marking a significant milestone in the global industry and a potential turning point in how the drug is perceived in traditionally conservative societies.
The country’s National Assembly voted to approve amending the Act on the Management of Narcotic Drugs to pave the way for non-hallucinogenic dosages of medical cannabis prescriptions.
Medical marijuana will still be tightly restricted, but the law’s approval by the central government is seen as a breakthrough in a country many believed would be last – not among the first – to approve any use of cannabis, even if it is just low-THC, or CBD, to start.
Are Cannabis Prices Already Falling In Canada?
The marijuana industry has taken the stock market by storm in 2018 — and for good reason. A little more than a month ago, Canada became the first industrialized country in the world to legalize recreational cannabis, which paves the way for Canadian pot stocks to grab their piece of what might be a $5-billion-plus pie. Mind you, this sales estimate from Wall Street doesn’t take into account the potential for Canadian-based marijuana stocks to find new overseas sales channels, so it’s likely conservative.
However, this major marijuana event also signals a transformation in the way investors view and analyze pot stocks. Before Oct. 17 (the day the Cannabis Act went into effect in our neighbor to the north), cannabis companies made pie-in-the-sky promises about production, product diversification, partnerships, and international expansion. And they were typically rewarded for those announcements. Now, with weed legal in Canada, investors will be looking for tangible results that they can wrap their hands around.
How Cannabis Could Become The Next Real Estate Disrupter
For a while it looked like the best thing to bring to a neighborhood was a new Whole Foods grocery store. One study showed that homes in these neighborhoods would appreciate at a much faster rate than if they were near a Trader Joe’s (and both were better than a Starbucks). Another sign a neighborhood is on the cusp of revitalization is when the yoga studios start vying for space with the arthouses. Usually it is not long after that the expensive coffee shops and cupcake stores start showing up at street level. But now that so many states have passed laws favorable to the marijuana movement, the next big thing to bring a neighborhood back from the brink just might be the increasing number of organizations that work in the industry.
Downtown Los Angeles could be the first case study to see this phenomenon in action. This month, a seven-story building in the heart of Los Angeles’ Jewelry District will open up, filled with tenants who all have cannabis somewhere in their job description. The 67,000-square-foot Green Street Building (the name is in reference to its anchor tenant, the Green St. Agency, which works solely with clients in the marijuana industry) will house everything from co-working spaces to an art gallery, restaurant, law firm, luxury spa and lounge. Real estate investment company Bow West Capital purchased the property last year for a reported $14 million. Once open it will be the largest real estate space dedicated to cannabis in the U.S.
Michigan May Become A Haven For Cannabis Entrepreneurs If It Learns From California’s Mistakes
Unless something drastic happens, it looks like adult-use recreational marijuana will become legal in Michigan on December 6. Adults over 21 will be able to legally possess and smoke marijuana on private property. But recreational marijuana won’t be going on sale until the Michigan Department of Licensing and Regulatory Affairs (DLRA) decides on the rules and issues licenses, which is going to take until early 2020.
When it rolls out, Michigan will be the first state in the Midwest to legalize adult recreational use marijuana. The state has had a medical marijuana program in place since voters passed the Michigan Medical Marihuana Act in 2008, which effectively legalized limited amounts of medical cannabis for patients and their primary caregivers.
But recreational marijuana introduces a level of business opportunities, innovation, and investment that far exceeds what a small medical market demands, and that has excited cannabis advocates in the region. The 2018 midterm election saw many pro-marijuana legislators and attorneys general come into power in Michigan, which bodes well for the 2020 rollout.
Moldy Ontario Cannabis Recall Extended To B.C.
A voluntary pot recall related to a batch of cannabis sold through the Ontario Cannabis Store (OCS) has now been extended to B.C.
B.C.’s Liquor Distribution Branch (LDB) says the cannabis comes from RedeCan Pharm, an Ontario cannabis producer that recalled more than 900 ounces of product from the OCS last Friday, following multiple customer complaints of mould and bugs in the product.
The allegations were detailed by angry consumers in a Reddit thread started last week.
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