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Cannabis Briefs for January 7, 2020

January 7, 2020

•Cresco Labs subsidiary Origin House has entered into an exclusive distribution agreement with Kings Garden. The Coachella Valley, California-based Kings Garden produces a boutique cannabis line that includes flower, concentrates, and vape cartridges, and has proven popular in California. Pursuant to the agreement, Origin House will be the exclusive distributor of all Kings Garden products for an initial term of one year across California and will gain the exclusive rights to distribute any new branded products introduced. Kings Garden plans to expand into therapeutic topicals and tinctures in the future.

•Aurora Cannabis is selling one of its greenhouses amid a period of financial hardship. The 22-acre greenhouse on 70 acres of land in Exeter, Ontario is listed for C$17 million ($13.1m), with an additional 95 acres of land available for another C$2 million ($1.5m). Like its large Canadian competitors, Aurora continues to lose money each quarter and reported a 24% sequential decline in net revenue in its last earnings release in November. The company also lost two members of its senior leadership just before the holidays when chief corporate officer Cam Battley and chief global business development officer Neil Belot both departed in December.

•Cultivating small quantities of cannabis in one’s home is not a crime, Italy’s highest court recently decided. Cannabis remains outlawed in a general sense in Italy but courts have struggled to square exactly what that means in practice. In a short statement on the topic as part of an ongoing, undecided case, the court wrote, “at home, small-scale cultivation activities are to be considered excluded from the application of the penal code.” The decision marks the first legal acceptance of recreational cannabis in the country.

•After a legislative push stalled out in the state Senate last March, New Mexico lawmakers are gearing up for a new attempt to legalize cannabis in the Land of Enchantment. State Representative Javier Martinez, chief sponsor in the state House last year, will once again lead the charge as part of a task force created by Governor Michele Lujan Grisham, who has made legalization a priority. Under Martinez’s new proposal, the recreational market would be regulated similarly to how the state handles liquor stores. A recent state-sponsored poll found that 73% of likely voters support legalization.

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