🌿 Cann Group nightmares over sleeping pill

Good Morning. Welcome to The Greenfields, your twice weekly newsletter rolled and packed with cannabis industry news. No spin.

What’ve we got for you today?

• Little Green Pharma’s little green cap raise

• Cann Group having nightmares

• New York legalises cannabis, grows the black market instead

Little Green Pharma’s little green cap raise

Thanks to inflation $2 million doesn’t sound like a big goal these days, but it was too high (😉) for Little Green Pharma’s (ASX:LGP) little green cap raise.

They only raised $875k to help them in the race to Europe and grow their business in Australia. This is despite their December quarter results being pretty positive.

We think this is more of a reflection of the market in general than anything to do with LGP or the industry itself.

LGP had already raised $4m in December and they have a healthy deal pipeline, but this result might make them rethink some of their plans.

Cann Group having nightmares

Cann Group’s (ASX:CAN) new CEO could probably use an over-the-counter CBD treatment for poor sleep right now. Unfortunately for him Cann Group’s Satipharm isn’t any better than taking sugar pills.

Results from a study of their low-dose CBD capsules found that they weren’t better for treating sleep disturbances than a placebo.

This is going to delay submission to the Therapeutic Goods Association to make Satipharm available as an over-the-counter drug. Their COO resigned shortly after.

The TGA allowed low-dose CBD treatments to be sold without a prescription from a doctor, just a short consultation with a pharmacist. So far there are zero low-CBD treatments available as over-the-counter drugs.

New York legalises cannabis, grows the black market instead

New Yorks illegal cannabis market continues to thrive because they’ve only managed to license and open one legal cannabis store. Recreational use was legalised in 2021…

And how do we fix our problems with illegal cannabis? Yep, more law enforcement of course…

Learning basically nothing from the last 50 something years of cannabis prohibition the New York City council and NYPD will triple their efforts to crackdown on an estimated 1200 illegal cannabis stores.

Most of this shit-show has been caused by the fact that New York has only managed to license one recreational cannabis retailer since it was legalised.

And as it has always done the black market will fill the gaps and cities will waste their money on law enforcement instead of fixing their actual problems.

That’s your walk through The Greenfields of the cannabis industry today. If you enjoyed todays edition please share it with your friends.

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