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Weedmaps Is Getting Stiffed By Over 500 Non-Paying Clients – What Does That Mean for the Marijuana Industry?

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Weedmaps collection services may be a canary in the coalmine for the marijuana industry!

If Cannabis Is a $50 Billion Industry, Why Is Weedmaps Is Getting Stiffed by over 500 Clients?

Interesting article on Seeking Alpha that caught my eye and ties into the “the marijuana industry is dead” theme we are seeing around the cannabis space right now.  While the world got excited by President Biden’s recent marijuana pardoning announcement, the devil is in the details as we pointed out in our instant analysis of the presidential action.

Donovan Jones of IPO Edge points out in Weedmaps’ latest public fillings that over 500 clients are now listed as “non-paying” or delinquent. While we at Cannabis.net pointed out the marijuana industry has a very serious problem because Delta-8 and 9 from hemp now get you seriously high, especially in liquid form, we were blasted by some people for that article.  The criticism, was that how can the marijuana industry be dead when top line estimates for sales around the world have gone from $50 billion, to $60 billion to $84 billion by one analyst group?  How can weed be dead already when the industry isn’t even legal in 80% of the world?

The difference we are talking about is revenue and profit, two very different numbers on a balance sheet.  While top lines sales of the product may be going to the moon, or Mars if you are an Elon Musk fan, profit margins are collapsing at record pace for legal cannabis companies.  Supply from the illicit, gray, black, and legal market is vastly out-stripping demand.  (See Canada, California, and Colorado).

While you may see big headline numbers like $84 billion in sales or “what the marijuana industry is worth”, it does not mean there is $84 million in profits for everyone in the cannabis industry.  Profit margins the different between what you charge and what your costs are, are shrinking fast.  The state of the economy and inflation are also forcing consumers to pull back on their cannabis purchases as part of an overall austerity plan.  If gas, meat, and consumer staples are all up by 20%, that may leave less money for discretionary things like movies, alcohol, and cannabis.

his leads me to the latest “canary in a coalmine” that proves our theory, Weedmaps, the most important websites in the world for the cannabis industry as it probably drives 75% of the customers a dispensary gets in month to their front door, is getting stiffed by over 500 clients.  You could argue that Weedmaps is the absolute last vendor you want to stiff if you are a dispensary or delivery service, as they are your lifeline to new customers and sales.  So, what does it mean now that over 500 clients are no paying for the service anymore?  It means we have many, many cannabis businesses on their last breath and running on fumes.

If you don’t pay your main source of new leads and revenue, how bad is your business right now?  You might as well throw in the towel if you can’t pay for listings that lead to new customers and return customers. 

If you think things will get better with legalization, you are very wrong.  Interstate commerce, a move to efficient markets, will crush margins for most states.  High supply states like California, Colorado, and Oregon can flood low-supply states with products and flower.  And that is just the beginning.  When the US legalizes at the Federal level that will give the UN the okay to change the drug treaties that 163 counties are supposed to be abiding by when it comes to cannabis.  We will then enter a new phase called a “global market” with future’s contracts trading and low-cost provider like Colombia, Brazil, Mexico, Thailand, Vietnam, Bangladesh, Pakistan flooding world markets with high-quality, low-cost cannabis.  What happens when Colombia sends their $0.06 a gram production costs out to the open world market?  We wrote there will be a time in 10 years where all the weed in edibles and vape cartridges in America won’t actually be grown in America.

So, yes, revenues are soaring, but profits are shrinking, and that trend shows no way of turning around with the current catalyst in the market.

Source: https://cannabis.net/blog/opinion/weedmaps-is-getting-stiffed-by-over-500-nonpaying-clients-what-does-that-mean-for-the-marijuana

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Alabama to make another attempt Dec. 1 to award medical cannabis licenses

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Alabama regulators are targeting Dec. 1 to award the first batch of medical cannabis business licenses after the agency’s first two attempts were scrapped because of scoring errors and litigation.

The first licenses will be awarded to individual cultivators, delivery providers, processors, dispensaries and state testing labs, according to the Alabama Medical Cannabis Commission (AMCC).

Then, on Dec. 12, the AMCC will award licenses for vertically integrated operations, a designation set primarily for multistate operators.

Licenses are expected to be handed out 28 days after they have been awarded, so MMJ production could begin in early January, according to the Alabama Daily News.

That means MMJ products could be available for patients around early March, an AMCC spokesperson told the media outlet.

Regulators initially awarded 21 business licenses in June, only to void them after applicants alleged inconsistencies with how the applications were scored.

Then, in August, the state awarded 24 different licenses – 19 went to June recipients – only to reverse themselves again and scratch those licenses after spurned applicants filed lawsuits.

A state judge dismissed a lawsuit filed by Chicago-based MSO Verano Holdings Corp., but another lawsuit is pending.

Source: https://mjbizdaily.com/alabama-plans-to-award-medical-cannabis-licenses-dec-1/

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Pot Odor Does Not Justify Probable Cause for Vehicle Searches, Minnesota Court Affirms

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The Minnesota Supreme Court affirmed that cannabis odor does not constitute probable cause to search a vehicle.

If Minnesota police search a vehicle solely based upon the smell of pot, they can’t justify searching a vehicle, even if there is evidence found of other alleged crimes. Even after appealing a lower court decision to suppress the evidence—twice—the Minnesota Supreme Court agreed, and the dismissal of his charges stands.

In a ruling filed regarding a case the State of Minnesota Court of Appeals on Sept. 13, the Minnesota Supreme Court affirmed that cannabis odor does not constitute probable cause to search a vehicle.

The case has been ongoing for two years. On July 5, 2021, just before 10 p.m., a Litchfield police officer stopped a car for an obscure local law: the light bar mounted on the vehicle’s grill had more auxiliary driving lights than are permitted under Minnesota law. The officer asked the driver, Adam Lloyd Torgerson, for his license and registration. Torgerson, his wife, and his child were present in the vehicle. The officer stated that he smelled pot and asked Torgerson if there was any reason for the odor, which he initially denied. But cops found a lot more than just pot.

A backup officer was called in. The couple denied possessing any pot, but Torgerson admitted to smoking weed in the past. The second officer stated that the weed odor gave them probable cause to search the vehicle and ordered them to exit the vehicle. The first officer searched the vehicle and found a film canister, three pipes, and a small plastic bag in the center console. The plastic bag contained a white powder and the film canister contained meth, which was confirmed in a field test.

Torgenson was charged with possession of meth pipe in the presence of a minor and fifth-degree possession of a controlled substance after the unwarranted search of Torgerson’s vehicle. 

Police Aren’t Allowed to Do That, Multiple Courts Rule

But the search had one major problem—cops weren’t searching for a meth pipe. They only searched his car because they could smell pot, and the meth and paraphernalia were a surprise for everyone. Still, they had no grounds to search the vehicle. The man’s charges were later dismissed after the district court determined the odor of cannabis alone was insufficient basis for probable cause to search the vehicle, regardless of whatever other drug paraphernalia they found. 

The state appealed the case, but the Minnesota Court of Appeals affirmed the district court’s decision. The case was appealed a second time, this time to the Minnesota Supreme Court, which agreed with the lower court’s ruling. 

 “This search was justified only by the odor of marijuana emanating from the vehicle,” the Minnesota Supreme Court decision reads. “Torgerson moved to suppress the evidence found during the search, arguing that the odor of marijuana, alone, is insufficient to create the requisite probable cause to search a vehicle under the automobile exception to the warrant requirement. The district court granted Torgerson’s motion, suppressed the evidence, and dismissed the complaint. The State appealed. The court of appeals affirmed the district court’s suppression order. Because we conclude that the odor of marijuana emanating from a vehicle, alone, is insufficient to create the requisite probable cause to search a vehicle under the automobile exception to the warrant requirement, we affirm.”

It amounts to basic human rights that apply—regardless of whether or not a person is addicted to drugs.

Other States do Precisely the Same Regarding Pot Odor as Probably Cause

An Illinois judge ruled in 2021 that the odor of cannabis is not sufficient grounds for police to search a vehicle without a warrant during a traffic stop.

Daniel J. Dalton, Associate Judge of the 14th Judicial Circuit, issued a ruling in response to a motion to suppress evidence in the case of Vincent Molina, a medical cannabis patient arrested for cannabis possession last year.

In that case, Molina was arrested despite the decriminalization of small amounts of cannabis in Illinois in 2019 with the passage of the Illinois Cannabis Regulation and Tax Act. 

In some states, the issue of probable cause and cannabis was defined through bills.

Last April, the Maryland House of Delegates approved a bill that reduces the penalties for public cannabis consumption and bars police from using the odor of cannabis as the basis for the search of an individual or auto. Under Maryland’s House Bill 1071, law enforcement officers would be prohibited from using the odor of raw or burnt cannabis as probable cause to search a person or vehicle. 

The rulings represent the rights of citizens when they are pulled over by police, even if there are hard drugs involved.

Source: https://hightimes.com/news/pot-odor-does-not-justify-probable-cause-for-vehicle-searches-minnesota-court-affirms/

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Can Cannabis Help Seasonal Depression

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Ultimately, seasonal affective disorder can set in as quickly and seamlessly as the fall foliage on the trees outside.  

The weather and foliage on the trees aren’t the only things that are changing around this time of year. As the sun starts to set earlier and earlier, peoples moods can be affected by the decrease in sunlight. This is often known as seasonal affective disorder (SAD), and it can make the winter months miserable for lots of people. Can cannabis help seasonal depression?

Fortunately for those that do suffer from SAD, there are numerous remedies that can make this time of year more bearable. Exercise, vitamin supplements and even marijuana can have an enormous impact on fighting against the disorder. While there are resources for offsetting the disorder, getting a full understanding of the problem is paramount in being able to overcome it. 

5 Signs You Might Have Seasonal Depression
Photo by Dmitry Schemelev via Unsplash

Seasonal Affective Disorder Symptoms

One of the most crucial steps in combating SAD is properly identifying its symptoms. Some of those symptoms include:

  • Anxiety
  • Social withdrawal
  • Sleepiness and fatigue
  • Weight gain
  • Suicidal thoughts
  • And several others

Those who are suffering from any of these symptoms should refrain from self-diagnosis and seek professional assistance. That professional assistance could lead to more resources to fight the disorder such as an antidepressant prescription.

How Common is Seasonal Affective Disorder?

In recent years, more and more people who suffer from seasonal affective disorder have begun opening up about their struggles. An estimated 10 million Americans are said to be currently dealing from SAD. Additional research shows women are four times more likely to be diagnosed with the disorder than men. SAD also appears to be more prevalent among people with pre-existing mental health conditions like bipolar disorder.

The number of people across the globe who suffer from seasonal depression is slightly lower than that of the United States. Only about 1-2% of the global population is said to suffer from seasonal depression while about 5% of the U.S population suffers from SAD. 

man wearing knit cap on grey background

How to Fight Seasonal Affective Disorder

There are a number of proven ways to offset some of the sadness that comes with the changing of the seasons. For example, cannabis contains cannabinoids that can have a positive impact on mood, while potentially increasing serotonin levels. When it comes to decreasing anxiety levels, that’s where CBD comes into play. By working with our body’s endocannabinoid system, CBD has been seen as instrumental in boosting dopamine levels.

Aside from cannabis, there are a handful of other at-home methods that can help alleviate the symptoms of seasonal affective disorder. Spending more time with friends, family and loved ones can be highly effective in offsetting some SAD symptoms. The same can be said for making an effort to get lots of sunlight and getting regular exercise.

Ultimately, seasonal affective disorder can set in as quickly and seamlessly as the fall foliage on the trees outside. Knowing that you aren’t alone, and having the best practices for fighting it, can make the fall and winter months better than you could have ever imagined.

Source: https://thefreshtoast.com/medical-marijuana/can-cannabis-help-seasonal-depression/

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