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WEEK IN REVIEW: MedMen Sinking, Oklahoma Soars & Mass Reopens

Cannabis News You May Have Missed for the Week Ending May 30th
Cannabis News You May Have Missed for the Week Ending May 30th
Roman Kraft via Unsplash
Don Moore
By Don MooreMay 31, 2020
Don Moore
Don is the co-founder and President of The Bluntness. His focus is on the intersection of the modern marijuana movement with sports, politics and business.
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With the coronavirus pandemic continuing to dominate the news during Memorial Day Week, we put together a few cannabis news highlights you may have missed.

CANNABIS BUSINESS

MedMen Enterprises

For MedMen, the week could not end soon enough.

Last Sunday, POLITICO published a scathing investigation of how the self-proclaimed 'Apple of Pot' became the 'WeWork of Weed' collapsing under excessive spending, questionable management and over-inflated valuations. Then, following Tuesday's March-quarter earnings call, Barron's reported that MedMen continues to hemorrhage cash losing $40 million on $46 million of sales despite slashing overhead and laying off over 190 employees.

And last Wednesday, AP reported that the State of Nevada is reviewing MedMen for alleged illegal campaign donations to Governor Steve Sioslak's 2018 gubernatorial campaign.

As the one of the most well known and asset rich companies in the cannabis industry, as well as one of the most promising, let's hope that MedMen and their CEO Ryan Lissack can execute a true turnaround plan and move to profitability this year.

Massachusetts

Another rollercoaster week in Massachusetts as the state, which deemed adult-use dispensaries non-essential during the coronavirus outbreak and controversially halted sales on March 24th, finally opened their doors last Monday to curbside pick-up for recreational cannabis customers. Massachusetts had been the only legal marijuana state shutting down adult-use sales amid the pandemic, leaving many business owners facing millions of dollars in losses.

During the same time, medical marijuana dispensaries were allowed to remain open for curbside pickup and in-store cash transactions.

For more on Massachusetts, check out this story from The Bluntness.

United Nations Prepares for December Vote on Cannabis Rescheduling

Upcoming United Nations Vote Could Change the Status of Cannabis around the WorldUpcoming United Nations Vote Could Change the Status of Cannabis around the World

The United Nations Commission on Narcotic Drugs forwarded a plan targeting a December, 2020 vote on the World Health Organization's recommendation for cannabis rescheduling. While the vote's outcome cannot be predicted, one of the recommendations would recognize the medical value and downgrade the potential harm for the use of cannabis and cannabis extracts, including CBD.

If approved, the measure would make it easier for UN member countries to adopt medical cannabis programs.

CANNABIS LEGALIZATION

Oklahoma

To say that Oklahoma's medical marijuana program has been a success is an understatement as badly needed April state tax collections increased to $9.8 million, a 25% increase over the previous record set in March, per the Boston Globe.

That is why it was surprising that Republican Governor Kevin Stitt vetoed a bipartisan bill that would have provided enhancements to the state's medical marijuana program including delivery service and granting of temporary licenses. The Governor said the bill had not been truly vetted.

State lawmakers will not look to override the veto.

Pennsylvania

Pennsylvania's GOP May be Rethinking Adult Use CannabisPennsylvania's GOP May be Rethinking Adult Use CannabisKatherine McAdoo via Unsplash

Like all states, the pandemic has had a disastrous impact on Pennsylvania's economy leading some GOP lawmakers to potentially reverse course and look to recreational marijuana as a new source for for increasing tax revenue.


"Given the pandemic and the fiscal problems that the state is facing, people who may not have formerly considered recreational marijuana as a revenue generator may be brought to the table,” Republican State Senator Dan Laughlin told the The Philadelphia Inquirer.

“I fully believe that recreational marijuana is going to be one of the pieces of revenue that is certainly discussed in the budget cycle. It absolutely will be,” added Laughlin.

And so it begins.

West Virginia

More than three years after West Virginia lawmakers approved the state's Medical Cannabis Act, officials confirmed this week that medical cannabis will be available to the public in Spring, 2021, according to Metro News.


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