Representatives Troy Carter and Guy Reschenthaler have introduced the Capital Lending and Investment for Marijuana Businesses Act (CLIMB Act) to help improve access to services for legitimate cannabis-related businesses.
This legislation would give US cannabis companies access to lending and grant opportunities from both financial institutions and government agencies.
The US cannabis industry has been growing at a rapid rate, but due to the federal prohibition of cannabis, cannabis businesses in the US are currently struggling to access capital through traditional routes.
Federal prohibition also prevents US cannabis businesses from listing on US exchanges. However, global companies are currently permitted to list, giving them an unfair advantage over US cannabis businesses to secure critical capital.
The CLIMB Act aims to permit access to community development, small businesses, minority development and financial institution capital for investment and financing of cannabis-related businesses.
This includes business assistance, such as access to financial services, insurance/surety products, debt or equity capital, accounting services and more, as well as safe harbour for businesses to list on stock exchanges.
If passed, the bill could generate an estimated $22.7bn in tax revenue through increased investment.
Congressman Troy Carter stated: “The bipartisan CLIMB Act is a huge opportunity to bring equity and equal opportunity into our nation’s burgeoning cannabis industry.
“From my work on the Small Business Committee and by working directly with small, minority, and veteran-owned cannabis businesses, it’s clear that access to capital remains one of the biggest barriers to entry and to success in the industry.
“By bringing symmetry into the business ecosystem with the CLIMB Act, we can help communities that have long been harmed by the criminalisation of marijuana move to now be leaders in the business sphere – and that’s what the American Dream is all about.”
It has been estimated that the CLIMB Act would bring in an expected $47.3bn in investments to support the growth and stability of US cannabis operators and ancillary businesses within the first year, and it is also projected to create 600,000 jobs by giving these businesses access to capital.
Reschenthaler also stated: “American cannabis companies are currently restricted from receiving traditional lending and financing, making it difficult to compete with larger, global competitors.
“The CLIMB Act will eliminate these barriers to entry, and provide state legal American cannabis companies, including small, minority, and veteran-owned businesses, with access to the financial tools necessary for success.
“This bipartisan legislation will boost the economy, create jobs, and level the playing field for American businesses.”
First vice chair of the National Cannabis Roundtable and CEO of Ilera Holistic, Dr Chanda Macias, stated: “The CLIMB Act will unleash the full potential of the American cannabis industry. This legislation will ensure that American cannabis businesses can access the lending and grant opportunities that other domestic industries currently enjoy, and it will make it easier for veteran, minority and women-owned businesses to compete by giving them access to a broad range of economic opportunities.
“I want to thank Congressmen Troy Carter and Guy Reschenthaler for introducing this important legislation.”
National Cannabis Industry Association CEO Aaron Smith, commented: “Small cannabis businesses cannot effectively compete in the highly regulated and complex cannabis industry without access to capital and lending services.
“This bill is a much-needed reform that will help level the playing field for main street cannabis businesses across the country.”
The bill could help to transform the US cannabis industry if it passes alongside the SAFE Banking Act, which has been designed to allow cannabis businesses access to traditional banking services, the HOPE Act, which aims to expunge past cannabis-related convictions, and the MORE Act, under which cannabis would be removed from the Controlled Substances Act’s list of scheduled substances and would remove criminal penalties for individuals manufacturing, distributing, or possessing the plant.
The SAFE Banking Act, however, which was last year included in the National Defense Authorization Act (NDAA) and then subsequently removed, has now been stalled in the Senate for sixth time.
Cross-party group established for recreational cannabis in Europe
#LegaliseitEP is focusing on human rights-based cannabis policy – “it is a matter of freedom”.
The group, made up of MEPs from five different parties, has formed to facilitate discussions around amending policy for the personal use of cannabis in Europe.
As countries such as Malta, Germany and Luxembourg have announced progressive amendments to cannabis policy, the informal interest group is supporting human rights-based policies for the personal use of cannabis.
The group is made up of the MEPs Luke Flanagan of Ireland, The Left; Mikuláš Peksa of the Czech Republic, Greens; Monica Semedo of Luxembourg, Renew; Cyrus Engerer of Malta, S&D; and, Dorian Rookmaker of The Netherlands, ECR.
In an open letter to 705 members of the European Parliament, the group states that Member States should have the autonomy to create cannabis policy that reflects the needs and specificities of their society.
As well as encouraging the MEPs to join the group, the open letter also calls for more information sharing between Member States regarding recreational cannabis and for fact-based discussion on cannabis, which the group says has been subject to misinformation for a long time.
The letter states: “Due to outdated and unpredictable patchwork of legislation, citizens across the EU are often finding themselves being forced to turn to the black market or even worse, imprisoned for being in possession of small amounts of cannabis for personal use. This does not reflect the level of freedom we have come to expect from living in Europe.
“We cannot deny that with new legislation coming forward within EU Member States, we are likely to find ourselves facing repercussions at an EU level. As MEPs, we want to build on this momentum and create a cross-party interest group within the European Parliament, where we will share best practices, talk to experts, organise hearings and conferences, as well as debate the situation of personal use of cannabis within the Union.”
Monica Semendo, of Luxembourg’s Renew, stated: “I am in favour of the legalisation of cannabis and cannabis products because it is a matter of freedom.
“It’s a matter of one’s own choice. And if someone decides to consume cannabis, they should have access to a safe product.
“We have to focus on transparent information, education programmes and risk reduction, especially for young adults.”
Cyrus Engerer of Malta’s S&D, stated: “People should have the right to take autonomous informed decisions about their lives, including whether or not they use cannabis.
“Let’s talk basics. No one should go to jail over a joint. And now for some real talk – many people still are.
“Where I come from – Malta – we are the first European country to fully legalise cannabis use Germany, and Luxembourg will soon follow it. It’s time that we talk about cannabis and our personal freedoms and rights.”
Hear what the founding members of #LegaliseitEP have to say about why they’ve decided to launch a cross party @Europarl_EN interest group on #Cannabis & #CannabisLegalisation @lukeming @RookmakerDorien @MonicaSemedoLux @vonpecka @engerer pic.twitter.com/b20NDFOAmg
— Legalise It EP (@LegaliseIt_EP) July 14, 2022
Greenrise welcomes cannabis policy developments in Germany
The company is preparing for the potential legalisation of adult-use cannabis in Germany.
Greenrise Global Brands has welcomed recent developments in Germany as it awaits guidelines from the German Government in the coming months.
Germany’s “traffic light” coalition made plans to legalise recreational cannabis official in November 2021 with the publication of its agreement.
The coalition, which includes the Social Democratic Party of Germany (SPD), the Free Democratic Party (FDP) and The Greens, agreed to legalise the controlled distribution of cannabis to adults for “pleasure purposes”. With a focus on health-oriented cannabis policy, the development aims to move consumers away from the black market, control quality of products and ensure the protection of minors.
This year, five hearings are planned throughout to discuss the legislative process on the controlled supply of cannabis to adults for recreational purposes, with the first meeting being held in June, at the Federal Ministry of Health.
The Federal Government is anticipated to submit a draft law to Parliament (Bundestag) by the end of 2022.
Greenrise Global, which has a wholly-owned medical cannabis subsidiary, AMP Alternative Medical Products GmbH that imports EU-GMP medical cannabis from within the European Union and elsewhere and has well-established relationships with pharmacies and clinics across Germany, has welcomed the development.
Supporter of the health benefits of cannabis and a keystone shareholder and director of Greenrise, as well as co-founder of CannaCare Health, Frank Otto, commented: “The consultation process shows that Germany is no longer talking about whether to legalise adult-use, but how.
“We also believe that there will be a domino effect as European countries are watching very closely as Europe’s largest economy joins Canada and California in legalising cannabis for adult use.”
AMP Alternative Medical Products has reported that preliminary unaudited sales for first half year 2022 increased 14 per cent to €268,479 compared to sales of €236,399 during the first half year of 2021.
Greenrise acquired 51 per cent of CannaCare, which sells CBD wellness products through traditional retail channels in Germany and German-speaking markets in Europe, at the beginning of Q2. The company has reported that preliminary Q2 unaudited sales for CannaCare increased 187 per cent to €474,000 compared to Q1 2022 sales of €165,000.
Managing director of AMP and director of Greenrise, Dr Stefan Feuerstein, said: “The exceptional sales growth from CannaCare during the second quarter confirms our strategy of investing in CBD in addition to medical cannabis as we prepare for the potential legalisation of adult-use in Germany.
“We look forward to the government providing guidelines in the coming months, which will provide certainty on how and when to position our businesses.
“We expect pharmacies to play a significant role and are preparing our pharmacy customers for the possibility of selling adult-use products as well as soon as legislation is in effect. We also realigned our medical cannabis business by streamlining our medical sales team, offering more pharmaceutical cannabis products to doctors to prescribe and are preparing to import high-THC flowers from several European cultivators.”
CFO of CannaCare, Dr Tilman Spangenberg, commented: “Greenrise’s investment allowed CannaCare to launch its CBD products in three leading German drugstore chains, which dramatically increased sales in a very short period of time.
“We expect the full impact of this sales channel to unfold in the third as well as fourth quarter. Our priorities for the remainder of this year are to grow CannaCare’s sales and operating cash flow positive by introducing new sales channels and adding additional drugstore chains.”
Switzerland’s amendment on medical cannabis comes into force
The Swiss government announced in June that rules for medical cannabis will be simplified.
Today, 1 August 2022, Switzerland’s amendments to its Narcotics Act come into force, which will allow patients in the country easier access to medical cannabis.
Switzerland has now joined a number of countries across Europe that are enabling patient access to cannabis by removing its ban on the medicine.
Previously, Switzerland’s Federal Office of Public Health (FOPH) required exceptional approval for use of medical cannabis. This reduced patient access to cannabis as administrative processing was unable to keep up with the demand from potential patients.
The use of medical cannabis will now be subject to regular control measures. The defined limit of at least 1.0% total THC content remains unchanged.
Under the new amendments, medical prescriptions will no longer require an exceptional permit from the FOPH. Cannabis will be reallocated from Switzerland’s Narcotics List Ordinance list from List d, which is prohibited narcotics, to List a, which is all substances subject to control measures), along with preparations such as extracts, resins, oils and tinctures.
Dronabinol and THC will now also be included List a “provided there is an intended medical purpose”.
The new amendment enables doctors to make the decision on whether a patient requires a medical cannabis prescription, speeding up the process of accessing the medicine for patients.
The medicine will now enter Switzerland’s pharmaceutical system and controlled by the health authority SwissMedic, which will be taking over the role of the country’s Cannabis Agency for the cultivation of medical cannabis.
Under the amendments, there will be a two-stage authorisation procedure, which will require an establishment licence and an individual licence for the cultivation of medical cannabis.
SwissMedic has stated that the handling of cannabis for non-medical purposes continues to be generally prohibited and will continue to require an exemption from the FOPH.
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