September/ 3/ 2019
The talk about Cannabis legalization has been a hot topic. This is connected to the unexpected cannabis industry boom, which makes its national level legalization an interesting idea. President Trump might have left a clue on cannabis legalization last week. Marijuana Moment on 30th August reported that President Trump aired out his views. Steven Nelson, who is the DC Examiner reporter, asked the president about legalizing cannabis federally and the head of state replied that the federal government would see how it goes. He further said that the subject is robust and at the moment, states have the choice to decide on the issue. Many states have taken their stand on cannabis, and all we are doing is to allow the states to have their choices, he further said.
At the moment, 10 states have legalized recreational marijuana while medical marijuana is legal in 33 states. Marijuana is illegal in 14 states. The legalization of cannabis on a federal level is very important for the cannabis industry. The most recent scandal can work as a perfect example. A huge cannabis player CannTrust (CTST) (TRST) suffered a major setback due to violations of the regulation. CannaTrust, a major player, had not complied with the Health Canada marijuana laws. The company planted marijuana plants in rooms that were not licensed. The outcome, the company’s cannabis ranging to five metric tons, was confiscated by Health Canada. KPMG, the company’s auditor also withdrew the audit report.
The company’s predicaments did not end there as the CEO was also fired after the accusation rendered by Health Canada. These sideshows led to a significant drop in the stock price in the months of July and August by 25.9% in August and 64% year-to-date.
Hexo is the other company that has faced similar pressure in the stock market as it lost 5.6% in August after scandal news.
Two drug officials from the white house last week discussed cannabis legalization on a federal level. They said that before it is federally legalized, there should be adequate research on the state level. It is important for the U.S to have significant information on the cons and pros of cannabis before the talk on legalization starts.
However, there have been significant benefits from marijuana, especially on epilepsy. Real estate industry has not also been left behind as the plant could also provide building materials. The most important thing about marijuana connection with the economy is that even recession does not affect it. Therefore, the industry can give the state new avenues for tax collection, which can in turn help in boosting the economy of any given country.
However, there have been downsides due to the health effects associated with marijuana. The FDA is concerned that it could cause liver damage. A report from Marijuana Moment suggests that marijuana advisory will be funded partially by $10,000 president Trump’s donation from his salary.