Regulatory and Political News
As everyone knows, the legalization of cannabis in Canada has proven to be one of the biggest boosts to the industry; however, efforts continue to be made in order to get such a regulatory break in the United States. Hence, the political developments in the United States with regards to the sector should be followed closely by all investors.
California Seizes $30 Million in Black Market
The black market for marijuana is one of the biggest threats to the mainstream cannabis industry and hence, it is an issue that is important to the growth of the sector. The efforts have intensified in California during the last 12 months and so far as much as $30 million worth of cannabis has been seized by the authorities. In the first six months of 2019, as many as 19 unlicensed pot sellers have been slapped with search warrants and 2500 kilos of the product has been seized. The market value of the products seized stands at $16.5 million.
Curaleaf Faces False CBD Health Claims
The CBD market has grown considerably over the past months and Curaleaf remains one of the more important players in the market. In July, the company had been sent a warning letter by the United States Food and Drugs Administration for having claimed that its CBD products could cure certain health conditions. It was naturally an unwelcome development for the company and its investors. The FDA stated that many of the products that had been on sale on its website were unapproved and asked the company to desist from making such claims.
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