Recapping The Global Cannabis Market in October

Thank you for joining me while I recap the month of October. Each month, I read through hundreds of articles and choose the most relevant topics, that in my view contribute to the development of the global cannabis market. The monthly newsletter brings you the most important developments, news, and informed commentary on the global cannabis industry.

In this month's recap of the global cannabis market - some of the topics covered are - the German Government proposed adult-use cannabis framework, the banning of CBD in Hong Kong, Import/GMP in Portugal, the benefits of mixing THC and CBD, and several other items. Let's begin....

Summary of Germany's proposed adult-use framework - key items:?Import: Importing cannabis for recreational purposes is not an option the government is considering. I suspect this is due to issues around the Singles Convention, that is the international trafficking of a scheduled good.?Production: German domestic production will be used to fulfill the supply of products to meet market demands. This could create challenges IF demand is larger than supply and could lead to consumers reverting to black market access.?Home-grow: consumers will be able to grow two?cannabis plants for personal use.?Implementation: A potential to have a roll-out plan ‘pilot trials’ may be used. The plan will limit the number of people allowed to access adult-use cannabis ‘under the auspices of a scientific study on the effects of legalisation’. It will be interesting to see how the roll-out plan impacts distribution - based on the stage of the roll-out, I would imagine only existing outlets like pharmacies will be in a position to distribute cannabis VS retail outlets and coffee shops. If the number of participants in the phase of the roll-out is too small, this may discourage new businesses in retail space to launch.?Legislation: cannabis would no longer be legally classified as a narcotic - that makes sense.?Distribution: changes would enable the sale of cannabis in both licensed shops and pharmacies, while ‘specialist shops with consumption options’ are also being examined. I’d love to see the birth of coffee shop culture in Germany - this could do fantastic things for the tourism industry.?Tax: a new ‘cannabis tax’ could be introduced which is applied automatically.?Purchase: the purchase and possession of up to 20 grams of cannabis would ‘in principle’ be exempt from punishment for anyone over the age of 18, regardless of its origin or THC content.?Potency limit: THC should not exceed 15%, while consumers aged 18–21 will not be allowed to purchase any products with a THC content greater than 10%. I think this would be a big mistake to limit THC potency to 10%. If consumers are unable to access high-potency products, they will revert to the black market.

The Cowboy Show Comes to an End?- I’m not surprised to read that Hong Kong will ban cannabidiol from February, adding the compound to a criminalized list of drugs including heroin and cocaine. I see this as a huge step backward due to the cowboys owning the industry. In recent years, CBD products have gained popularity in Hong Kong, with themed cafes and bars offering CBD-infused food and drinks. Physical shops and online stores have also popped up selling CBD oils, gummy bears, moisturizers, and other products. With little to no oversight over the products that are being sold in the market, I’m not surprised that a weighted crackdown has begun across the country. Whilst many businesses would have made a lot of money, to what cost now that the government will categorize CBD in the same listing as heroin and cocaine? Regulations are put in place for a reason, to ensure safe and effective products are provided to the consumer - when businesses do not respect this, massive consequences like this are inevitable.?Article reference.

Cannabis and IBS?- In a new study, medical cannabis was found to improve symptoms and reduce hospital visits in patients living with inflammatory bowel disease. A cross-sectional anonymous survey was conducted between October 2020-January 2021 among 236 patients accessing medical cannabis dispensaries in New York and Minnesota. Respondents reported fewer emergency room visits in the 12 months after versus before medical cannabis use and found that their symptoms had less impact on their daily life. Three-quarters of respondents reported euphoria from medical cannabis use, while other side effects were feeling drowsy and/or groggy with memory lapses (4.2%) dry mouth/eyes (3.4%), and anxiety/depression or paranoia (3.4%). The authors of the study have now called for further studies to confirm the findings and explore the effect of medical cannabis on disease activity.?Study reference.

A slightly technical post on Portugal and its GMP advantage?- In total, Portugal has exported more than 15 tons of cannabis (since 2016), with Israel, Germany, and Spain as the main destinations. In the first half of 2022, 4327 kg of cannabis produced in Portugal were exported, and this could exceed 6 tons by the end of the year. In 2021, the total volume of exports was 5694kg of cannabis, growing 17,4% compared to 2020 (the year in which 4850kg were exported). Portugal has become an unsuspecting cultivation and processing hub for cannabis products. As Portugal is a member of the EU, any facility with a GMP certification, licensed to process cannabis is strategically positioned to release products into the European Union - this is especially excellent for any companies in Germany as it means that products can be directly exported to wholesale outlets in Germany ready for immediate sale. If a company operates outside the EU, products would need to be sent to Germany (or another EU territory), tested, and released under GMP before being dispatched to wholesale and pharmacy outlets - this can take several weeks, thus eating into shelf life and creating storage costs. What a good outcome for companies operating in Portugal.?Article reference.

• Portugal: Cannabis exports continue to grow,?but Infarmed rectifies figures released in March
• Finding the right balance: the benefits of?mixing THC and CBD flower
• High-THC cannabis flower linked to?improvements in quality of life
• Morocco: Ten licenses awarded for medical,?industrial & cosmetic use of cannabis
• After 5 years of medical cannabis,?Germany continues to import massively

• Medicinal cannabis clinics'?quality of care can be pot luck
• Boom in unapproved medicinal cannabis?products worries Australian experts
• Wellnex Life raises ~$6 million,?sets sights on medicinal cannabis market
• The Greens 'relying on community support'?in new push to legalise cannabis
• Little Green Pharma strikes fourth deal to?send the product to Germany
• Authorised Prescriber numbers continue to rise as?NSW sees spike in SAS-B approvals
• Hemp Foods Australia secures?national distribution with Coles

• Sanity Group closed Europe’s largest ever?cannabis investment round worth €37.6m
• Flora Growth signs definitive?agreement to Franchise Global Health
• Medicane announces its first patient?enrolled in a phase 2a clinical trial
• Somaí opens medical?cannabis manufacturing facility in Portugal
• CannTrust used fake walls to hide?cannabis from regulators: ex-employee
• Panaxia and Neuraxpharm to enter new?medical cannabis markets in Europe

• Hong Kong to ban cannabis?compound CBD from Feb
• Former NY cannabis policy maker is FDA’s new?cannabis research and regulation advisor
• Argentina Ministry of Health announces tender for?3,000 units of cannabis oil
• Argentina enables first medical?cannabis production plant
• Competition in Korea’s medical?cannabis market heats up
• Canada’s cannabis?producers say they’re in crisis
• Japan urged to consider?medical cannabinoid imports