Cannabis Weekly Round-Up: SAFE Banking Act Back in Congress Again

US cannabis policy back on the docket

The SAFE Banking Act has been reintroduced after it ended up facing delays last year.

The bipartisan bill, which would ease banking restrictions for cannabis operators in the US, has always enjoyed great support in the House, which it has cleared seven times in the past.

However, SAFE has never garnered enough support in the Senate. In fact, last year the industry faced a depressing period as several attempts to pass the bill through the Senate were stumped.

“Let’s make 2023 the year that we get this bill signed into law so we can ensure that all legal cannabis businesses have access to the financial services they need to help keep their employees, their businesses, and their communities safe,” Senator Jeff Merkley said in a statement this past week. SAFE has been tweaked since the last Congress session.

According to CNBC, Matt Darin, CEO of Curaleaf Holdings (CSE:CURA,OTCQX:CURLF), said that if the bill passes this time it would “provide urgently needed relief to cannabis businesses of all sizes.”

Cannabis stocks are already off to the races — the AdvisorShares Pure US Cannabis ETF (ARCA:MSOS) rose by double digits on Thursday (April 27). Some Canadian operators also saw increases based on the news.

“We are optimistic this actually passes into law this year,” Jefferies analyst Owen Bennett said in a note.

Organigram disputes Health Canada’s ruling

New Brunswick-based operator Organigram Holdings (TSX:OGI,NASDAQ:OGI) is taking legal measures when it comes to the designation of its cannabis lozenges.

The issue started earlier this year, when Health Canada issued a warning on products it said were “incorrectly marketed and sold as cannabis extracts,” including Organigram’s brand of products, Edison Cannabis.

These products are sold in a package with 10 lozenges, each containing 10 milligrams of THC.

After an initial announcement, Health Canada proceeded to inform producers they had until March 31 of this year to stop the sale and distribution of the products in question.

Organigram filed its complaint the very same day sales were ordered to stop.

“We believe we have a compliant product. … We believe that the regulatory requirement for a product to be an edible is that it has to be consumed in the same manner as food,” Organigram CEO Beena Goldenberg told MJBizDaily.

The company is asking for a resolution in which the government sets aside the previous ruling by Health Canada and makes a “determination that the Lozenges are a cannabis extract and do not constitute edible cannabis under the regulations.”

Shares of Organigram jumped over the past trading week by nearly 5 percent.

Cannabis company news

• Delta 9 Cannabis (TSX:DN,OTCQX:DLTNF) received a purchase order for eight of its modular grow pods for a pre-licensed cultivation and processing facility in Alabama. The deal includes an agreement worth C$600,000 relating to “the development of the Customer’s cannabis production facility, training, and other services supporting the acquisition of a state integrated facility license.”

• TerrAscend (CSE:TER,OTCQX:TRSSF) confirmed a new five year agreement with Cookies for the cultivation and manufacturing of its products in Maryland, a state market eyeing the opening of its adult-use market in July.

• SNDL (NASDAQ:SNDL) issued its full-year and Q4 2022 financial results. The firm reported a net revenue line of C$712.2 million for the entire year, representing a gigantic 1,170 percent increase from the previous period. However, the company also reported a net loss of C$372.4 million for the whole year.

• Aurora Cannabis (NASDAQ:ACB,TSX:ACB) repurchased an aggregate of C$22.3 million worth of convertible senior notes. “In total, these transactions will save Aurora $2.6 million in annualized interest payments,” the company said.