Case Studies
70
CALIFORNIA
With Nevada recording record revenues, many are banking on California being next.
Considered by some as the test of the current Federal Administration’s resolve and particularly in light of the January 3rd policy decision. This will be the story of untold rights and wealth or the story of unprecedented disregard for state supremacy and the rights of the individual. Time will tell but one would hope progress and common sense win out.
However, as my article last month emphasized, using the raids against a facility owned and operated by Lifestyle Delivery Systems as an example, any deviation from the law (even if innocent and unintentional) will be met with law enforcement. On the surface, that may seem unfair but in fact is exactly what any legal regulated market requires. There must be protection for those in compliance and consequences for those that are not. That is a statement of motherhood and not a suggestion of any wrongdoing on the part of LDS.
The true downside of that event is how the unscrupulous took to bulletin boards and social media to help perpetuate a myth of alleged intentional wrong doing that, in turn, contributed to an unwarranted decline in share price. It did not take long for the share price to more than double but
their work was done – they either benefited from shorting shares or from pushing the share price as low as possible before investing or perhaps both of these. I would suggest reading our coverage of this incident in our last issue for an unbiased account. Although the investigation is ongoin
what we do know is that subsequent to the raid that LDS
was issued a “temporary Category M Type 7
Manufacturing with Volatile Solvents License
which will be effective January 1, 2018 through
April 30, 2018” (source). Please note the
word “temporary” because this is not an
admission that an error was made in
the decision to raid the premises but