The Families First and CARES acts each provide credits that can reach $5,000-plus per employee.
Relief appears to be available for cannabis companies
The cannabis industry rarely looks to the federal government for support. Yet the raft of fiscal relief addressing COVID-19 has caused some in the industry to wonder what options, if any, might be available for them.
Pot priced to compete with the illicit market stole the show as HEXO (HEXO.TO)(HEXO) reported its latest quarter.
The Quebec-based company credited its Original Stash line for driving recreational sales net of excise tax up 28.8 per cent to $21 million in Q3. HEXO said its thriftiest offering accounted for half of the 9,338 kilograms sold to non-medical buyers in the three months ended April 30.
The NBA confirmed it would no longer drug test players for cannabis or any recreational drugs when the league resumes play in late July.
Despite all that's gone on in 2020, it's important not to lose sight of the fact that we're now less than five months away from Election Day. We'll see voters choose who'll be president of the United States for the next four years, and could even witness the current political makeup of Congress shift.
But one of the more interesting stories for 2020 is going to be which states "go green."
On Wednesday, OrganiGram Holdings (NASDAQ:OGI) announced that its subsidiary OrganiGram signed a supply agreement with Canndoc, which is a subsidiary of InterCure. The multiyear agreement requires OrganiGram to supply 3,000 kilograms of dried flower products by the end of next year. The products should be of high quality and grown indoors.
The cannabis industry is set to reach new heights, beyond the pandemic.
Cannabis stocks in general stumbled in the latter half of last year. Wall Street expects profits, and none of these companies is anywhere near profitability. In the United States, high state and local taxes took a toll on sales, as did the lack of federal legalization of marijuana for either medical or recreational use.
While a fair number of these companies are based outside the United States, many of them trade on U.S. indexes. With Canada legalizing weed back in October of 2018, many hope that the United States will follow in the near future.
US states continue to work on marijuana legalization. They have been looking at strategies to gather signatures and qualify for the 2020 ballot. The pandemic made gathering signatures a challenge. People stayed home due to lockdowns. While signature collection failed in many states, some are still working hard. Arkansas faced the same issue. However, a federal judge allowed the state to look at strategies for signature gathering to qualify for the November ballot.
