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How Do Conservative Investors See Cannabis?

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Health benefits

Cannabis is an emerging industry and is vulnerable to treacherous schemes for investment. With uncertainty regarding laws and regulations at federal level, many conservative investors are getting reluctant to involve themselves in the game. However, the guarantee of profits has started an influx of money from many investors.

Regulatory change in cannabis production

The 2018 Farm Bill redefines the true definitions of hemp and marijuana. In addition, it also removes hemp from the list of substances that are controlled coming under the Controlled Substances Act (CSA). The 2018 Bill approved hemp on a federal level and preserved the regulation of substances that were derivatives of cannabis.

Many organizations have overlooked the FDA’s guidelines and carry on producing products containing cannabidiol. The Food and Drug Administration has seized its actions on delivering letters of warning to these companies. Furthermore, these include companies that specifically make irrelevant health claims.

Framework for cannabis investment

All cannabis investments do not have regulatory risk profiles in common. Investing in these companies that do not develop these products and do not do the business in the vicinity of the United States carry low risk. This intensity of risk is lower than investing in brands that produce cannabis in the US.

US companies working on a public scale having no concern with cannabis manifest more conservative investment in comparison to companies directly dealing in cannabis. Same goes for the Canadian companies that abide by the US Federal Law.

The organizations in the market are serving as a balancing scale between risk and reward. Furthermore, these are not directly a part of producing or selling cannabis.

On the other hand, private organizations are more flexible than public ones as they are willing to directly operate with the illegal cannabis business. the federal government can take any action against them. With the emergence of cannabis industry, companies are privately investing as a major source of gaining capital are not present due to illegality of the business.

Is the investment risky?

Investment in the cannabis company placements is risky. With no requirement of disclosure, private companies do not give enough information in relation to the functioning of the business. Furthermore, the capacity of private companies to produce cannabis is risky when its against the laws.

Private placements not relating to cannabis do not have much flexibility. They often depend on forward-looking statements an come with elevated tax risks that are exclusive for each investor. Private placements are usually only present for renowned investors.

Positive influence on investors

The federal legalization of hemp in the United States and further expansion of cannabis legalization in states is making positive influence on the investors. With the growth of industry, there will be more opportunities. However, risks are still there that cannabis would still stay under the list of controlled substances. Consequently, a better risk assessment would go a long way in the industry.

There is a need for a deeper understanding of the federal and state regulatory framework encompassing cannabis. This way, conservative investors can better analyze the risk of an investment.

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Cannabis

Marijuana Cultivation in Colombia by Flora Growth Becomes Public

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marijuana cultivation

Marijuana cultivation within any state has to be per the cannabis laws of that state. In Colombia, some cannabis cultivators can grow cannabis outside within a certain area.

There are chances of the introduction of new cannabis reforms at the federal level. Investors are making their moves while observing the situation closely as their profit or loss depends upon new regulations. Marijuana cultivation usually takes place in indoor greenhouses. In Canada, mostly cannabis companies cultivate marijuana through the controlled environment in greenhouses.

Some cannabis companies have their set up in Canada and different states of the United States. Production units can be found in Canada and the US, and the types of methods used for cannabis cultivation can vary.

Marijuana Cultivation Methods and Cultivation Preferences 

Cannabis cultivation can occur inside greenhouses and outside in an open environment if temperature and other growth factors are appropriate for its growth. Moreover, marijuana cultivation in the outside or open fields is cost-effective and requires traditional methods for this process of cultivation.

Indoor greenhouse cultivation of cannabis occurs in a controlled environment, and it yields the best marijuana product qualitatively and quantitatively. Latest technologies are used in this method of cultivation. The cost for marijuana cultivation using new technologies is much greater than the cost-spends at its growth using traditional methods.

Some growth tricks used to increase the yield of cannabis include topping, super cropping, flushing, low-stress training, and monster chopping. Other cutting methods can increase the growth of marijuana.

ALSO READ: Canopy Growth And Other Cannabis Company Stocks Rise

Flora Growth is a cannabis company in Colombia, USA, and has headquarters in Toronto, Canada. The company cultivates marijuana for producing its medicinal products via traditional methods.

In Colombia, cannabis companies do not quickly get a license to register and grow marijuana within companies’ premises. According to CEO Luis Merchan, Flora Growth has the approval of the Colombian government for legal marijuana cultivation, and cultivating a gram of marijuana dry flowers costs only 6 cents. The cost of indoor cultivation of cannabis in North America is about $1.25.

Despite being cost-effective, companies are not racing to get Colombian government approval as these companies prefer cultivating marijuana closer to home.

Alterations in Flora Growth Shares 

Investors are not interested in investing in Flora Growth, and company shares continue to fall up to four percent, reported CNN. Traditional marijuana cultivation costs remarkably low, and Flora Growth can generate high-quality cannabis-based foods. Flora Growth also formulates beauty products using cannabis.

The increase in share prices is slow, and the company is still small as compared to other companies involved in the cannabis business on an international level. Flora Growth has to make many efforts to improve its share price and grow to become a bigger cannabis company like Altria, Tilray, and Canopy.

Flora Growth has made a public offering to make mergers or sign contracts with other companies and investors. The CEO is confident that Flora Growth will successfully increase its share prices. The company can earn sufficient earnings by selling good quality products produced at low cost as it uses traditional marijuana cultivation methods.

ALSO READ: Marijuana Business Legislation Will Alter in New Jersey

The company has a partnership with Miss Universe of 2014, Paulina Vega. As a result of this partnership, the launch of Flora Growth cannabis-infused topical products has become easy and effective in increasing stock prices. The skincare cannabis product formulation occurs by extracting CBD and other non-psychoactive phytochemicals from the cannabis plant. The extraction of components occurs by utilizing plants grown through traditional marijuana cultivation methods.

According to Merchan, Flora Growth has remarkable cultivation facilities, infrastructure, marketing team, cooperative working team, and efficient sales team across the globe.

Changes in reforms to marijuana cultivation, sales, possession, and other marijuana activities will increase competition, and Flora Growth has the potential to flourish in a highly competing environment.

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What Cause Biden To Change his Policies For Cannabis?

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Ever since Biden took office as president, reforms have been under discussion for formulating new cannabis regulations and legislation at both the federal and state levels. After the election, people and investors were hopeful that the cannabis industry would flourish and progress in multiple markets as the government introduces new cannabis legislation.

Members of Biden’s political party have put forward bills recommending decriminalization and legalization of weed at activities at the state level, reports Forbes. Some states have already legalized and decriminalized marijuana business activities. Others are still discussing and making amendments to formulate effective cannabis regulations.

Democrats, of which Biden is a member, promised to decriminalize marijuana and introduce new cannabis regulations. Everyone had the impression that the Biden administration would legalize and decriminalize marijuana without any delay. However, more than five months of the New Year have passed, and there is no change in federal cannabis legislation. The drug is still under the controlled substance list and remains 100 percent illicit on the federal level.

People and investors are beginning to doubt the Biden administration’s approach towards cannabis regulations. Some are immensely disappointed with the philosophical approach of authorities towards marijuana legislation.

Five Members of Biden Administration Got Fired, People Have Their Concerns 

The reason for firing five of the members from the Biden administration is not clear. But it is likely to be associated with their past cannabis use. New cannabis regulations suggest allowing individuals to apply for various jobs or continue a job even if they have used marijuana at any time in their life. However, such legislation has not yet been passed on the federal level.

Firing employees because of their past cannabis habits is not fair. Everyone at least once in their life has used marijuana intentionally or unintentionally. Even president Joe Biden has admitted to using marijuana in his past life. There was a time when the FBI did not hire people with past cannabis use. But the FBI changed its cannabis regulations more than a decade ago and permitted people who no longer use marijuana to apply for jobs in the FBI.

ALSO READ: Legalizing Cannabis Generates Jobs In Various States, Says Survey Reports

The change in FBI cannabis regulations does not occur over a day. Changes occur over the years and deep debates on national and international levels. Eventually, permission to apply for a job in the FBI requires that as long as you pass the drug test and are not using drugs anymore. Moreover, the FBI has made amendments over the years. The White House shall also consider making new cannabis regulations.

People find this unacceptable and are disappointed in the authorities as they have forced five individuals to leave office because of their past marijuana usage.

The MORE Act

The MORE Act is not yet practiced but is under process. The Marijuana Opportunity Reinvestment and Expungement Act will introduce great cannabis regulations. According to the MORE Act, it is better to remove marijuana from the list of controlled drugs.

Furthermore, it suggests that people who have overcome their habit of cannabis use shall not suffer bullying in society. They shall be given equal rights as any other citizen has. The White House passed this bill. In August 2020, a bill suggesting allowing people to continue their lives without being charged for cannabis use in the past.

ALSO READ: Medical Marijuana Use is Now a Crime in Indonesia

Such a bill was in favor of legalizing and decriminalizing marijuana. Does Biden’s perspective on renewing cannabis regulations get affected because of his son’s condition relating to substance use? If so, the president and his administration shall reconsider the cannabis legislation for legalizing and decriminalizing marijuana.

The cannabis industry has great potential and a margin for enhancement or making progress. It will help to generate huge revenue and improve the economy. Biden favors state-level legalization of marijuana. He shall make new cannabis regulations for the federal level too.

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Mother Supports Young Irish Boy’s Cannabis Addiction, Spending $590 a Week

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An Irish judge is inspecting for punishing a 16-year-old boy for his cannabis habit. The cannabis addict boy had the full support of his mother, who was spending $590 per week to support her boy’s cannabis addiction. The boy got into weed when he was charged with forthcoming a drug search last year.

Teenagers Becoming Cannabis Addicts

Breaking News Ireland reports the teenager appeared this week along with his father in the court, lying in wait for a pre-sentence probation report. Judge Kelly was surprised to know that the young Irish boy’s mother was giving him money to buy weed, supporting his cannabis addiction rather than working on the boy’s rehabilitation.

During an incident in Dublin, the boy was guilty when caught red-handed with a suspected controlled substance in a private area of his underwear. This incident took place in April of 2020 when the boy aged 15.

Since then, Paul Kelly, judge at Dublin Children’s Court, kept an eye on the teenager who was being supervised. The Breaking News reports that the probation service was going well.

Although the probation service was going well, this couldn’t bring a decrease in the judge’s concern about the teenager. The boy was still consuming about $147 on cannabis per week, which has a potential influence on the mental health of the boy.

Judge Paul Kelly looks forward to continuing the probation service and keep the boy under supervision, irrespective of the Probation Service’s suggestion.

Ireland Bleeding in Cannabis

A commenter to Mary Jane’s Diary notes the consumption of cannabis in Ireland, which shows people paid $37 per gram of weed in 2017. A GrassCity message board reports that people were spending $15 per gram of cannabis in 2015. The Reddit post of 2018 suggests people should get about 3.2 to 3.5 grams of cannabis for $74.

ALSO READ: New Zealand’s Jacinda Arden Admits To Cannabis Use In Past

Breaking News states that the boy chose to remain silent when asked about his awareness regarding the impact of cannabis addiction on mental health. Judge Kelly still alerted the boy about the diverse implication of cannabis for the future.

This week, the College of Psychiatrists of Ireland has come up with the issuance of their caution. The psychiatrists from Ireland College state that cannabis addiction has a lethal impact on the mental health of young individuals.

Dr. Gerry McCarney in the college stated that the use of cannabis has a drastic impact on young people, altering their ability to learn, problem-solving, cognitive behavior, and general emotional intelligence. Dr. Gerry McCarney warns individuals that cannabis addiction at young age alters their social behavior.

Cannabis Addiction Skyrocketed Hospital Visits

The college statement shows an incline in the hospital admissions of young individuals with cannabis-related diagnoses and cannabis addiction. An increase of 300 percent of such hospital admissions has been reported between 2005 and 2017. The police impounded 16 percent THC levels in weed. If youngsters use weed weekly or more frequently, one in three young individuals is prone to cannabis addiction.

Breaking News reports that Judge Kelly stated in this week’s court about the teenage boy who had been searching for work that there is a need to address the boy’s cannabis use.

ALSO READ: Cannabis Makes its Way Into Education – New Cannabis Courses On The Offer

Judge Kelly emphasized spending money to fulfill other necessities of the 16-year-old boy rather than on cannabis that will potentially harm his social life and physical well-being. Cannabis addiction of young people gives birth to a boatload of complications. The judge states that an updated probation report would be awaited in six weeks to address the young boy’s cannabis use.

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