Voters in today’s US midterm elections will decide the future role of cannabis in key states through a number of ballot initiatives and one gubernatorial race.
Measures for legalized recreational and medical cannabis are up for grabs on these ballot initiatives throughout the US, signalling changing attitudes and potentially opening the door for further expansion by US-based cannabis companies.
Michigan and North Dakota voters were given the option of voting for legalized recreational cannabis today. Michigan’s initiative would also permit the cultivation of industrial hemp.
Missouri and Utah residents are voting on the legalization of medical cannabis, though the wording in Utah’s Proposition 2 would prohibit medical cannabis users from smoking or eating cannabis products.
— CROP CORP (@CROP_cse) November 6, 2018
Keturah Nathe, VP of corporate development for C21 Investments (CXXI.C), said “regardless of what happens with the midterm elections, it’s going to be a positive for us.”
Though C21 Investments won’t be expanding into Florida regardless of the election’s outcome, Nathe said she believes American sentiment towards cannabis is changing.
“Cannabis is going to be in a good place in 2019. I think the general sentiment out there is ‘by 2020 we should have legislation which allows a legal framework in the US’ but I think now the general consensus is that it’s probably going to move up even faster than anticipated,” Nathe said.
US Attorney General Jeff Sessions has loudly vocalized his opposition to cannabis legalization of any kind, but his increasingly strained relationship with President Donald Trump has led some pundits to anticipate his departure after the midterms, easing the road to descheduling.
“There have been reports that Donald Trump is actually going to sanction the legalization of medical marijuana across the board and then allowing each state to govern the retail side of it,” Nathe said.
Nathe said her company was keeping an eye on states like Michigan which have a large enough population to support expansion, though the company’s primary focus is the development of its CBD assets.
C21 Investments has develop an easily exported, non-hemp derived CBD product. Conversely, since CBD from hemp is considered a marijuana extract by organizations like the Drug Enforcement Agency, transportation across state lines can open companies up to prosecution.
“The focus of C21 is steering towards highlighting CBD. It’s something a lot of people are more receptive to. I would say for the older generation, CBD is going to have the biggest impact,” Nathe said.
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Equity Guru’s Chris Parry published an exhaustive examination of CBD’s role in the ever-shifting cannabis landscape last week.
To summarize, companies like Canopy (WEED.T) and Aurora (ACB.T) are heavily investing in hemp for all the reasons Nathe laid out above.
Everyone and their grandmother is onboard the CBD train. Europe is, Canada is and the US is getting there. You should be too.
Full Disclaimer: C21 Investments is an Equity Guru marketing client.