Cannabis has been decriminalized in New York State after Governor Andrew Cuomo signed off on the new legislation last month.

The new law has converted the possession of under two ounces of cannabis from a misdemeanor into a violation. As a result,  offenders will receive a ticket to appear in court, followed by a $50 fine if convicted of possession of less than one ounce, and a $200 fine if convicted of possessing less than two ounces.

Although the drug is still considered an illegal substance per New York state law, if caught, individuals will have their stash confiscated and marked as evidence. Unlike before, the charge will no longer create or show up on a criminal record.

Governor Cuomo released a statement about the new legislation:

“For too long communities of color have been disproportionately impacted by laws governing marijuana and have suffered the life-long consequences of an unfair marijuana conviction. Today is the start of a new chapter in the criminal justice system. By providing individuals a path to have their records expunged, including those who have been unjustly impacted based on their race or ethnicity, and reducing the penalty for unlawful possession of marijuana to a fine, we are giving many New Yorkers the opportunity to live better and more productive, successful and healthier lives.”

What about New Yorkers convicted before the new law took effect? They can rest a little easier — especially the ones who had minor pot convictions before August 29.

“Being that this new legislation decriminalizes marijuana and changes it from a misdemeanor offense to a violation level offense, it would not appear on your criminal history,” Captain Kate Newcomb with the Broome County Sheriff’s Office told WBNG.

The changes come on the heels of the state’s failed attempts earlier this year to legalize the drug. “This law is long overdue, and it is a significant step forward in our efforts to end this repressive cycle and ultimately mend our discriminatory criminal justice process once and for all,” stated Cuomo.

Despite sweeping cannabis law reforms at the state level, cannabis remains prohibited under federal law and continues to be classified as a Schedule I drug by the DEA.

The future looks bright for the Danish medical cannabis industry, but speaking to Rikke Jakobsen, CEO of Cannabis Denmark, there is still work to be done.

The Danish medical cannabis industry is a dynamically evolving world, with this in mind, Health Europa spoke with Rikke Jakobsen, CEO of Cannabis Denmark in late 2018 to discuss the pioneering medical cannabis pilot and development programmes the country had recently launched, along with the impact this was set to have on patients, growers and healthcare professionals.

The Danish medical cannabis pilot programme was developed with a view to allowing doctors to prescribe cannabis products to vulnerable patients who have failed to respond to traditional therapies. The information and evidence collected during the trial will form the basis of more permanent legislation, which will be implemented at the end of the 4-year pilot scheme based on the findings.

Here Jakobsen updates us on the progress of the trial, along with how this will impact the economy, increase the availability of products and what the rest of Europe can learn from Denmark’s example.

Now that the medical cannabis trial is underway how will the research carried out within Denmark be affected by the results? Do they pose any new challenges?

Cannabis Denmark are not currently conducting any new research as we are fundraising to try and facilitate this. We do have around 15 studies in progress of which 4 or 5 are clinical trials. Unfortunately, none of the clinical trials are being conducted on the products being prescribed as part of the trial so we don’t yet have any results on the individual cannabinoids – only CBD and THC in combination.

We do hope to see more research in medical cannabis cultivated in Denmark within a year or two, but it does depend on the researchers. I’m sure that funding won’t be a problem because of the industries willingness to invest in research.

Prescriptions for cannabis increased over the course of 2018 with domestically cultivated cannabis expected to reach the market and be exported this year. What impact is this anticipated to have on pricing and the Danish economy as a whole?

Yes, we did see a dramatic rise in prescribed medical cannabis in the last quarter of 2018 after the introduction of oils, as before only dried cannabis was available. The most up to date figures from late April 2019 shows 429 prescribing doctors and over 2000 patients have been prescribed medical cannabis. With the introduction of Danish cultivated cannabis in September and October 2019 we expect to see another dramatic rise once again which should hopefully drive prices down.

In the next 2 years we expect that the all Danish patients will be swimming in medical cannabis products because a stipulation is that suppliers must ensure that the Danish market is fully equipped before they are permitted to begin exporting. Of course, this will have a huge impact on our economy and medical cannabis patients both within Denmark and across Europe.

As a not for profit organisation we care about all patients having access to medical cannabis as a treatment, and clearly there are problems and barriers to access all across Europe. This is why we hope that Denmark can set the highest standards for medical cannabis within the EU. At the same time, we hope that the EU will find a way to harmonise medical cannabis legislation across the Member States and acknowledge the compounds such as THC as having medicinal properties, so it becomes easier for counties to trade across borders within the EU. This way patients will benefit from easier access, low prices and the highest quality.

How will the results of the trial drive innovation and influence the variety of products available in Denmark, and by extension the medical conditions which cannabis can be treated with?

The trial itself won’t facilitate much innovation, but the framework has been designed to be liberal enough that it can promote research, innovation and development. Cannabis Denmark also plays a key role in pushing innovation forwards so that eventually patients will have access to a variety of high-quality cannabinoid-based products of with multiple delivery systems which are affordable. We know that medical cannabis has the potential to treat and alleviate symptoms and help solve many different medical problems in the future, and we remain devoted to push medical cannabis in the direction of being a recognised medical tool.

You have talked before about your ambition to establish a cannabinoid and terpene research institute, how close is this to becoming a reality and what would you like to see this achieve?

Establishing a cannabinoid institute is really the only way to keep up with the demand for medical cannabis. Research into its use is very far behind where it would usually be in terms of developing medicine. Furthermore, we know that we have a variety of cannabinoids and terpenes which can be used to manage symptoms in all kinds of medical conditions.

It is much easier to do the ground research in one unit and on that basis different companies can develop many kinds of medicines. I am very aware of the cost to create the facilities required, and it will require public funding and co-operation between all involved in the industry. Conversely, it is the only path to consider if you are completely serious about developing medical cannabis operations. I’m also aware that Denmark probably cannot do it alone and would need assistance and co-operation from other counties.

The beauty of it is that I think there is a strong desire for countries to work together between researchers, politicians and private companies. Nobody can walk alone when medical cannabis is still in its infancy and very much a private affair of the pharma industry. We are trying to work with and co-operate with all of the different sectors in Denmark, but we must also broaden this approach and do the same across the whole European Union.

What lessons can the rest of Europe learn from Denmark’s example? How do you anticipate the industry across Europe will develop over the next 5 years?

The best example other countries can learn from Denmark’s approach is our willingness to simply take the leap and act on this. I also think that every country needs a not for profit organisation like ours which keeps fighting for everyone to work together.

This is Cannabis Denmark’s task – to help the march of progress, push on, and facilitate co-operation until we reach our goals. Imagine that medical cannabis is Denmark is the way to illuminate the best path to healthy and successful life sciences and pharmaceutical industries.

As for the future of the industry we will most likely see it mature and different companies will find a way to develop medicine tailored to treat different conditions with a more personalised approach. Medical cannabis is not necessarily a suitable treatment for all conditions, but we can investigate further and develop certain strains and compounds to combat symptoms and conditions more specifically.

Colombia is synonymous with cannabis farming, but are there more challenges creating cannabis regulation than it would appear?

For Canada’s leading cannabis producers, Colombia has emerged as the choice location for outsourced production. With an equatorial climate and mountainous topography, the country provides a steady 12 hours of sunlight per day as well as a wide range of growing altitudes. An inexpensive and plentiful labour force – many with experience in a world-leading flowers-for-export industry – means that companies estimate future Colombian production costs of $0.50 (~€0.45) to $0.80 per gram of dry cannabis flower, compared to over $2 in Canada. So, where does cannabis regulation come in to play?

What do you know about cannabis regulation in Canada?

Canada’s three largest pot firms – Canopy Growth Corp, Aurora and Aphria – have all acquired licensed producer (LP) companies in Colombia and many mid-tier international players are following suit. Colombian owned companies including PharmaCielo and Khiron Life Sciences have tapped Canadian stock markets to super-charge their own growth and marketing strategies whilst hundreds of smaller LPs seek international finance and expertise.

In May 2016, Law 1767 – allowing for the cultivation, processing and export of medicinal marijuana – passed Colombian congress by a wide margin. To prevent the diversion of product into the recreational market the law prohibits the commercialisation of flower; all cultivated cannabis must be processed and an end client must be established early in the licensing process, usually by a letter of intent (LOI) for purchase.

By opening the door to exports – a recognition of the commercial potential of the industry – Colombia’s regulation has been deemed amongst the most attractive in medicinal cannabis world and has become a reference point for other Latin American countries developing their own legal marijuana framework.

The challenges

However, Colombian cannabis entrepreneurs are coming to discover what oil and mining investors have known for some time: that laws are subject to frequent change and the country lacks the institutions to implement and enforce regulations. By making licences relatively cheap to apply for, the government gave the impression that the barriers to entry, in general, were low. Licence requests were filed well in excess of the government’s capacity to process them. The lucky first-movers sold out their projects for tens of millions of dollars, the licensing rush increased, the line grew longer. By mid 2019 there were over 1000 applications awaiting approval.

The Colombian cannabis industry is like an assault course in which the next obstacle is harder than the last. In addition to applying for licences Colombian firms had to register their existing, supposedly endemic, cannabis strains in the Colombian seed bank before the end of 2018. It’s an open secret that many of those strains were North American in origin and brought into the country. Now the regulatory body responsible for registering new seeds and strains faces an unprecedented wave of work, with thousands of strains needing to be checked and catalogued.

In addition, while climactic conditions might be prime, soil conditions in Colombia could be a looming challenge for the country’s growers. Anecdotal evidence suggests that north American strains have struggled to adapt to soils tainted by previously unencountered pesticides and tropical pests. The country’s most skilled geneticists are working hard to breed more resistant strains that lose none of their potency. At the same time master growers have to ensure that their facilities – from greenhouses, security systems, processing facilities and transportation – are up to local and international quality standards.

The regulatory framework

LPs also have to navigate various strata of political and regulatory risks. At the local level, new guidelines require companies to conduct prior consultation activities with local communities prior to establishing the project and 10% of the total flower processed in fabrication facilities must be sourced from small growers. Establishing long-lasting relationships with such growers and ensuring the quality of product will be key to successful projects.

At the national level, last year’s election of a right-wing government with a more stringent anti-recreational drugs stance makes it difficult to promote the medicinal industry without being accused of double standards. Meanwhile a resurgence of guerrilla violence and organised crime in certain rural areas is a reminder that the country’s 2016 peace deal still has a rocky road ahead.

These challenges should be borne in mind when one reads press releases relating to Colombian cannabis companies. While those projects backed by ‘big weed’ firms now have the finances and expertise required to plan and develop expandable low-cost production centres designed for their own medicinal products, a second tier of companies is clamouring for investor attention. Some, such as Khiron Life Sciences, have invested heavily in marketing across the region, boosting brand recognition through the release of CBD infused cosmetic products. Others, such as Clever Leaves, have exported limited quantities of product abroad for scientific research, while others have focussed on the B2B market, with the goal of producing reliable extracts for various medicinal customers, such is the case with Plena Global.

The future of the Colombian cannabis industry

However, none of the projects are currently in commercial production – that will have to wait until production quotas are doled out by the government in the coming month – and only around 30 strains have currently been approved by agricultural authorities. The coming year will be the litmus test for Colombian cannabis companies. If the first-mover companies can navigate the regulatory and technical challenges and successfully export product at their forecast production costs, investment in the industry could boom. With the country’s oil production stagnating and coffee prices at record lows, cannabis could provide a vital source of jobs and tax revenues. The country has vast tracts of underutilised agricultural land. Already the country’s palm oil producers and sugar cane farmers are rumoured to be investigating the possibility of switching over to a more profitable crop.

That would provide a powerful political impetus for the industry. As the country’s powerful business families recognise the potential of cannabis and hemp production they are likely to lobby hard for further pro-business reform. Already in Antioquia, one of the country’s more socially conservative areas where marijuana still suffers from a negative reputation, the local university and regional development office has established its own LP.

For small and mid size growers, however, the outlook appears more murky. Adjustments to the regulatory code proposed in June 2019 increase barriers to entry and many fear that they will be unable to source the finance necessary to bring their projects to fruition under the necessary international standards for export.

It could take upwards of $100m to build a competitive cannabis project capable of exporting to the EU or Canadian for medicinal production. Some may try to wait for congress to save them. In June an opposition senator proposed a bill to legalise adult recreational use of cannabis.

While the bill is unlikely to pass the right-leaning congress, a future change of government, continued shortages in Canada and a powerful domestic lobbying group could mean that legal exports of Colombia’s famous marijuana could be a less distant prospect than many currently think.

One of the main roadblocks to the growth of the global cannabis trade is the fear of prosecution hanging over banks, claims a new report.

The Cannabis Legal Report published by London-based Prohibition Partners, finds that medical cannabis now legal in 43 countries with an ever-increasing number of countries also allowing access to CBD products 

It says this  ‘significant’ shift in attitudes to cannabis has been driven by ‘a kaleidoscope of forces including widespread political upheaval, technological innovation and new societal norms’.

The report analyzes the current global status of cannabis legal and regulatory regimes with its major finding being the inability of banks to do business, particularly trade, with cannabis firms, without fear of prosecution. With cannabis federally outlawed multi-nationals are reluctant to enter the U.S. market, as they cannot carry out cross-state trade, it says. 

“Federally insured banks are forbidden from dealing with cannabis businesses, leading to problems all over the world where firms rely on either U.S. capital, allow U.S. dollars as a currency, or use the services of a lender based in the U.S.,” It says. 

The report highlights how a smooth passage into law for the SAFE Banking Act could open the global markets to the larger U.S. players. It says global regulation is failing to keep pace with legalization, and ‘international agreements are needed to give clarity to businesses and patients’. 

Daragh Anglim, Prohibition Partners‘ Managing Director, said: “Regulatory shifts and advances came thick and fast over the last 12 months, such as Thailand’s reform of previously conservative cannabis policies, Canada’s legalisation of adult-use cannabis and the UK’s implementation of a medical cannabis programme. 

“We feel that international regulatory bodies and institutions need to keep pace with global legislative change to offer the clarity that businesses and patients need.” Highlighting how a regulated environment can help business progress it cites Canada as the most active global merger and acquisition player with Canadian firms buying up ‘local’ producers.

It says: “The support and experience gleaned from working in a fully regulated adult market have enabled Canadian firms to penetrate strategically important foreign jurisdictions such as Germany, the largest European Union state.” 

It highlights how Germany’s medicinal market alone promises to be larger than Canada’s medicinal and recreational markets combined, ‘making it an essential outpost for ambitious firms’. 

The report also singles out countries such as the such as the Philippines and Thailand, with strict anti-drug laws, who are launching or advancing medicinal cannabis programmes, while liberal Western jurisdictions are inching toward adult recreational markets. It adds.