Tag Archives: marijuana

TSX Worried About Pot Companies with US Business Exposure

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A ripe & healthy cannabis plant. Photo courtesy of Cannabis Training University.

The struggle over the legalization of marijuana in the United States has created a bit of uncertainty in the Toronto Stock Exchange’s relationship to US companies that produce the mind-stimulating drug.

Aphria Inc, an Ontario-based producer of marijuana says it met with representatives of the TSX a week ago to talk about the company’s exposure to US markets and the risk that exposure subjects the company to.

Vic Neufeld, CEO of Aphria, said that the company re-committed to working with the TSX as it carefully studies the developments in the United States as they happen. Earlier in October the TSX warned companies that the US federal laws take precedence over the state laws, and, at least right now, federal US law holds marijuana to be an illegal substance. The potential for economic trouble exists for companies like Aphria which have investments in Florida and Arizona, where marijuana is legal for medicinal only and recreational use, respectively.

The TSX said that companies on their exchange that do not comply with US federal law are not in compliance with their requirements to be listed on their exchange.

Neufeld said that he would like to see his company remain on the TSX, and right now has no plans to move Aphria to the more pot-friendly Canadian Securities Exchange. However, if an agreement with the TSX can’t be reached Neufeld said there are other options, such as creating a spin-off for its US business which can be listed separately on the CSX.

Long Lines Expected at Colorado Marijuana Shops

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As of January 1st marijuana is legal in Colorado
As of January 1st marijuana is legal in Colorado

The day of legalized marijuana is finally arriving in Colorado this January 1st to the extreme delight of those on both sides of the business transaction.

Happy prospective purchasers of pot are expected to line up, and even camp out, outside shops which will be open for business as early as 8am selling their marijuana wares. Some shop owners, like Toni Fox, owner of 3D Cannibis Center in Denver, will be putting up canopy tents, heaters and a food truck with donuts and cakes to keep the waiting patrons warm and fed.

Fox has been selling medical marijuana since 2010, bringing in about $30,000 a month as a dispensary. Under the liberalized law she expects sales to explode to a minimum of $250,000 per month, giving her a natural high which smoking dope would be hard-pressed to match.

“We’ll have people out the door,” Fox, 42, a Salida resident, said. “It’s going to be a very festive atmosphere. We all feel like we’re walking on sunshine right now.”

Colorado is the first state in the nation to sell marijuana with no strings attached other than having the money to pay for the dope and being at least 21 years old. Washington will be joining Colorado as the second state to legalize marijuana use and sales, starting around June.

Analysts predict that Colorado will realize close to $580 million in combined wholesale and retail pot sales, yielding $67 million in tax revenues. Wholesale deals will be taxed at 15 percent, financing new school construction, and retail sales will tax at a 10 percent rate funding the marijuana industry’s bureaucratic needs.

Annie’s First US Shop Receives License to Sell Recreational Marijuana

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Marijuana about to become legal in Colorado
Marijuana about to become legal in Colorado

Colorado is gearing up to make the switch from merely allowing the use of marijuana for only medical applications to allowing the mild intoxicant for purchase for recreational use. As of January 1st stores will be able to legally sell marijuana to anyone older than 21. Only stores already selling medical marijuana and who are “in good standing” will be eligible to apply for a retail sale business license to sell marijuana.

The application process was initiated as of October 1, 2013, and Annie’s, a shop in the Colorado mountain town of Central City, has the honor of being the country’s first store awarded a retail license to sell cannabis.

To mark this special occasion Central City’s police chief personally delivered the license to Annie’s.

“This is a historic occasion, and at each milestone I am reminded of what we have achieved here,” said Major Neill Franklin.

Franklin is a former police officer and is now the head of Law Enforcement Against Prohibition. LEAP is an organization of law enforcement agents against the war on drugs.

“For the first time in history, those who sell marijuana are receiving licenses from the state instead of rap sheets,” said Mason Tvert, who co-lead the campaign to legalize pot in Colorado last year.

Erin Phillips, the dispensary representative at Annie’s, part of a local chain of eight stores called Strainwise, was excited to receive the new license.

“It’s the same old bureaucratic piece of paper,” said Phillips of the license. “But we might put it in a fancy frame.”

It should be a very happy New Year for Coloradoans.