Cannabis News

Cannabis Weekly Round-Up: Cresco Labs CEO Wants Bank Reform

Cannabis Investing News

Charlie Bachtell, CEO of US MSO Cresco Labs, has thrown his support behind the banking reforms included in a new cannabis legislation draft.

In a new interview, the CEO of a leading US cannabis company said the industry would receive a huge banking boost if new proposed legislation ends up being passed.

Additionally, a cannabis beverage maker in Canada went public with his criticism of Health Canada’s set of rules for cannabis drinks.

Keep reading to find out more cannabis highlights from the past five days.

Cresco CEO calls for banking reform as part of policy changes

Charlie Bachtell is eager to see cannabis reform in the US. The CEO of Cresco Labs (CSE:CL,OTCQX:CRLBF) told BNN Bloomberg this past week that the changes proposed in Chuck Schumer’s new draft bill would mean the US-based industry could see what he described as “Big B banking” services.

“‘Big B banking’ is where you have access to capital, you have access to leverage, where you could get credit facilities that allow you to smooth out cash flow and really create scale in a way that you would think from a traditional industry can,” the executive expanded.

Due to the federal illegality of cannabis in the US, publicly traded companies working in state-sanctioned markets haven’t been able to engage with traditional banking services.

Similarly, the policy could open the doors to a broader range of institutional investors, Bachtell said.

“I can tell you, for the most part, your traditional institutional investor is absolutely intrigued and is finding out and learning as much as they can about the U.S. (cannabis) operators today, waiting for the opportunity to deploy that capital into this industry,” the CEO told BNN Bloomberg.

Canadian beverage maker complains about regulations

Brad Stewart, co-founder of Canadian cannabis beverage maker Molecule, told CBC he thinks the current set of rules for cannabis drinks in Canada seem like a mistake.

“For anyone specifically focused only on cannabis beverages, it’s particularly challenging,” he said. Stewart directly singled out the calculation Health Canada does when it comes to the allotted quantity of THC per package. As CBC’s article explains:

Using Health Canada’s calculations, a 355 ml drink is considered to have the equivalent of slightly more than five grams of cannabis, even though one beverage can only contain a maximum of 10 mg of THC, the psychoactive chemical in the marijuana plant.

And because Canadians can also only carry 30 grams of cannabis out of a store, it’s illegal to sell more than five 350 ml drinks at a time — frustratingly shy, Stewart said, of the six-pack many consumers are accustomed to buying.

Stewart joins a growing number of voices who believe in the potential of Canada’s cannabis drink market and want to see changes that will help it flourish.

Cannabis company news

  • Halo Collective (NEO:HALO,OTCQX:HCANF) earned a white-label manufacturing contract with California brand Papa’s Herb. According to the company, its first order will be for 45,000 finished 1 gram, 510 thread vape cartridges fully packaged.
  • 4Front Ventures (CSE:FFNT,OTCQX:FFNTF) confirmed the launch of its distinct cannabis brand Terp Stix in the Illinois state market. “With more than 20 recreational cannabis brands and 2,000 products, we believe our future success lies in our ability to bring first-rate, reasonably priced finished goods to market in a timely manner,” Gabe Mendoza, executive vice president of retail operations with 4Front, said.
  • High Tide (NASDAQ:HITI,TSXV:HITI)announced its US subsidiary will acquire cannabis ecommerce platform DankStop in a deal worth nearly US$4 million. “Along with this transaction, our last two acquisitions have increased High Tide’s social media reach by leaps and bounds, giving us access to an invaluable potential customer base,” President and CEO Raj Grover said.
  • Sundial Growers (NASDAQ:SNDL)told investors it has been able to officially close its acquisition of cannabis retailer Inner Spirit Holdings (CSE:ISH,OTCQB:INSHF). “The acquisition of the Spiritleaf cannabis retail network makes Sundial a stronger and more diverse cannabis company,” Zach George, CEO of Sundial, said.

Don’t forget to follow us @INN_Cannabis for real-time updates!

Securities Disclosure: I, Bryan Mc Govern, hold no direct investment interest in any company mentioned in this article.

Editorial Disclosure: 4Front Ventures is a client of the Investing News Network. This article is not paid-for content.

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