Tag: Steve Hawkins

Keeping Up with Canada? California Moves Towards State Cannabis Banking.

Written by Anthony Johnson on May 23, 2019. Posted in Business, ICBC San Francisco, Politics.

As most folks know by now, a lack of banking services have forced cannabis businesses, including those legal under state law, to deal predominantly in cash due to continued U.S. banking laws that make it nearly impossible to do business with federally chartered financial institutions. There are a few reasons why Canada, the first G7 nation to end cannabis prohibition, gives a leg up to its cannabis entrepreneurs, and normal access to banking services is one of them. Thankfully, the California Senate has moved forward with some sensible legislation that can help its state-regulated businesses and should add pressure on Congress to recognize the will of the people and legalize banking for state-licensed cannabis businesses. CNBC reports:

Under the state legislation, which was approved by a vote of 35 to 1, private banks or credit unions can apply for a limited-purpose state charter so they can provide depository services to licensed cannabis businesses. The measure, Senate Bill 51, still requires approval of the Assembly and California Gov. Gavin Newsom to become law.

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“It’s hard to imagine an industry that at this point is as large as, like, craft beer that does not have banking as we have come to know it,” said Steve Hawkins, executive director of the Marijuana Policy Project, a national marijuana reform organization. He said the legal marijuana industry lacks access to commercial banking services available to other industries, including payroll, loans and deposit needs.

“As policymakers, we have a duty to further the will of the voters while protecting the public safety of our constituents,” California Senate Majority Leader Robert Hertzberg said last month when introducing SB 51. “This measure is by no means the ultimate solution, but it’s just one small step in the right direction to get some of this money off the streets and into bank accounts.”

Hopefully, this sensible banking legislation will have smooth sailing through the California General Assembly. Governor Newsom, who spoke at an International Cannabis Business Conference reception a few years ago, is certainly expected to sign the bill that should be supported by everyone, including those that oppose legalization as forcing cannabis businesses to use only cash encourages tax evasion and endangers our neighborhoods.

To stay up-to-date on the latest cannabis industry news, and to network with top investors and entrepreneurs, the International Cannabis Business Conference is THE event for you. Next up: Vancouver, Canada, in September and then back to San Francisco, California, next February. Get your early-bird tickets and save!

Trump AG Pick Vows to Respect State Cannabis Laws

Written by Anthony Johnson on January 16, 2019. Posted in ICBC San Francisco, Politics.

William Barr, Donald Trump’s nominee to be the next Attorney General of the United States, has already faced a barrage of questions regarding some very controversial topics. Barr’s past support for draconian criminal justice policies is now out-of-step with a majority of Democrats and Republicans while Democrats are pressing Barr on his positions regarding the Robert Mueller investigation and his opinions on executive power.

One issue that has proven to be non-controversial, is Barr’s position that he wouldn’t interfere with states’ cannabis laws. This stance would have been unheard of for a Republican AG not that long ago (remember Barr has been tabbed to replace “Mr. Reefer Madness” Jeff Sessions). NORML responded to Barr’s testimony in a press release:

In Senate testimony today, nominee for Attorney General William Barr committed to not use the limited resources of the Department of Justice to prosecute state-regulated and compliant marijuana businesses. His statements came response to questions from Senators Cory Booker (D-NJ) and Kamala Harris (D-CA) — each of whom represent states where marijuana is legally regulated for either medical or recreational purposes.

“It is encouraging that William Barr pledged not to enforce federal marijuana prohibition against the majority of US states that have reformed their laws. With this commitment, Congress has a clear mandate to take action and end the underlying policy of federal criminalization,” said NORML Political Director Justin Strekal. “In an era when 47 states have laws on the books that defy the Schedule 1 status of cannabis, it makes no sense from a political, fiscal, or cultural perspective to try to put this genie back in the bottle.”

Steve Hawkins, executive director of the Marijuana Policy Project had this to say about Barr:

“We are pleased to hear Mr. Barr intends to respect state marijuana laws if he is confirmed as our next attorney general. His reference to the Cole memo suggests that he will maintain the policy of non-interference that has existed since August 2013. This is not only a sensible decision, but is one supported by a vast majority of Americans.

“We are also sympathetic to Mr. Barr’s call for a more consistent federal approach, provided it is one that respects the will of the people. To that end, it is time for Congress to pass a law that either removes marijuana from the federal Controlled Substances Act or formally exempts state-legal cannabis activity from its provisions.”

William Barr’s pledge to refrain from meddling with states’ cannabis laws if he becomes U.S. Attorney General is just the latest evidence that cannabis legalization has moved into the mainstream position in our political discourse. It isn’t surprising that an issue that enjoys over 60% support would become so dominant, but it is remarkable how far the cannabis community has come over the years.

While we have made great progress, there is still a lot left to do on both the industry and activist side. We still need to fix banking and tax laws while ensuring that patients get the medicine they need and we keep the cannabis community out of jail. One of the best ways to stay involved in important cannabis business and political discussions is to attend the International Cannabis Business Conference, an event that provides the latest information, organizes fruitful networking opportunities, and always keeps activism at the forefront. The next ICBC is in San Francisco on February 7-8, with discounted early-bird ticket pricing ending this January 18th. After San Francisco, the ICBC will be heading to Barcelona, Berlin, Zurich, and Vancouver throughout the year.

Canadian Cannabis Exchange-Traded Fund Hits $1 Billion

Written by Anthony Johnson on September 7, 2018. Posted in Business, ICBC Portland.

Cannabis stocks, while still carrying volatile risks, have been booming recently as mainstream investors have started flocking to the sector particularly after Canada passed the Cannabis Act and with the establishment of October 17th as the first G7 nation to end marijuana prohibition. Individual stocks like Canopy Growth and Tilray (full disclosure: I own a few shares of each) have dramatically increased in value over the last month. In addition to individual stocks, investors have seen cannabis exchange-traded funds (ETFs) increase in value as well.

ETFs are similar to mutual funds, but they are traded like common stocks on financial markets. One Canadian cannabis ETF became the first such fund to hit C$1 billion in assets, as Bloomberg reported:

The Horizons Marijuana Life Sciences Index ETF’s total assets have grown to more than C$1 billion as shares rallied 124 percent since its April 2017 debut on the Toronto Stock Exchange. It’s the first cannabis-focused fund to break the billion-dollar mark. Known by its ticker HMMJ, the ETF has benefited from burgeoning investor demand for pot stocks.

“HMMJ’s growth has far exceeded our expectations as investors have strongly supported the sector in anticipation of Canada’s upcoming recreational marijuana legalization,” Horizons Chief Executive Officer Steve Hawkins said in a statement. Canada will legalize recreational use on Oct. 17.

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Pot stocks have been surging since mid-August, when Corona beer maker Constellation Brands Inc. invested C$5 billion in Canopy Growth Corp., a signal that mainstream companies are beginning to see the potential in cannabis. Canopy, the second-largest holding in HMMJ, has seen its stock price more than double since the deal was announced. HMMJ has gained 54 percent over the same period.

As I’ve disclosed, I own some stock in cannabis companies, but am no means a big or wise investor, however, it doesn’t take a financial wizard to see that the cannabis industry has the potential to be a huge market. It is tough telling which businesses or funds are going to flourish, so due diligence must be conducted, but with Canada legalizing commerce this October, more states poised to improve laws this November, and positive momentum around the globe, there certainly appears that there are financial opportunities to be seized.

Learn the latest about the cannabis industry and network with top investors and entrepreneurs at the International Cannabis Business Conference this September 27th-28th, in Portland, Oregon. Get your tickets by September 12th to save $200!