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Report Finds Legal Cannabis Could Bring Texas $500M In Annual Tax Revenue

A new report found that Texas could bring in significant revenue if they legalized cannabis.

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Legalizing cannabis in Texas could bring the state more than half a billion dollars in new tax revenue each year, according to a report released last week by a leading cannabis policy and law firm. The economic analysis from Vicente Sederberg LLP also found that legal pot would result in more than $300 million in savings from reduced law enforcement costs annually and could create up to 40,000 jobs.

“A regulated cannabis market would be an economic boon for the Lonestar State,” Shawn Hauser, a partner at Vicente Sederberg who heads the firm’s Austin office, said in a press release. “Hundreds of millions of dollars in new tax revenue and tens of thousands of new jobs would be especially helpful in overcoming the losses stemming from the COVID-19 pandemic. Texas is leaving an enormous amount of money on the table by keeping cannabis illegal.”

According to the report, there are more than 1.5 million adults 21 or older in Texas who use cannabis on a monthly basis, a market that could generate up to $2.7 billion in regulated sales if marijuana is legalized for adult use. If those legal sales were taxed at a rate similar to Colorado’s, more than $1.1 billion in new revenue could be raised every two years. Another $10 million to help offset the regulatory costs of the program could be raised with the implementation of modest business licensing fees.

A legal cannabis industry in Texas would also create hundreds of new businesses and as many as 40,000 new jobs, plus tens of thousands of additional positions in ancillary industries. The tourism industry in Texas would also see a boost. Ending misdemeanor arrests and prosecutions for minor possession offenses could save as much as $311 million each year, the report found.

Big State, Big Stakes

Dwight Clark, a senior policy analyst at Vicente Sederberg who previously worked in the state legislature, said that the stakes were particularly high in Texas because of its large population, the second-largest in the nation.

“There are well over a million adults in the state who regularly consume cannabis, so enforcement costs are substantial, to say the least,” Clark said. “If cannabis were regulated, the revenue from license fees and taxes would easily cover the costs of administering the system and enforcing regulations. Criminal justice resources could then be redirected toward other, more pressing matters. Plus there would be significant revenue left over that could be used to fund other programs and services.”

Earlier this month, Vermont became the eleventh state to regulate sales of cannabis for use by adults. If Texas were added to the list, the size of its legal recreational market would be second only to California’s.

“States across the country are seeing the benefits of legalizing and regulating cannabis,” said Hauser. “It is inspiring lawmakers in prohibition states to reexamine the efficacy and costs of their current policies and take a closer look at the alternatives.”

Despite the economic benefits, legalizing recreational cannabis in Texas will be a hard sell. Although hemp has been legalized in the state, sales of smokable hemp flower were banned earlier this year, while the state’s medical cannabis program only permits CBD extracts low in THC.

Source: https://hightimes.com/news/legal-cannabis-bring-texas-500m-annual-tax-revenue/

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Decibel Announces Net Revenue Increases of 29% from Prior Quarter, First Period of Positive Adjusted EBITDA and Results of Annual Meeting

Decibel Cannabis Company Inc. (the “Company” or “Decibel”) (TSXV: DB) (OTCQB: DBCCF), a premium cannabis producer and retailer, is pleased to announce its third quarter financial results for the three-month and nine-month periods ending September 30, 2020. “We are beginning to demonstrate the positive results of our collective efforts to reposition Decibel for success, as […]

The post Decibel Announces Net Revenue Increases of 29% from Prior Quarter, First Period of Positive Adjusted EBITDA and Results of Annual Meeting appeared first on CannabisFN.

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Ryan Allway

November 27th, 2020


Decibel Cannabis Company Inc. (the “Company” or “Decibel”) (TSXV: DB) (OTCQB: DBCCF), a premium cannabis producer and retailer, is pleased to announce its third quarter financial results for the three-month and nine-month periods ending September 30, 2020.

“We are beginning to demonstrate the positive results of our collective efforts to reposition Decibel for success, as we remain focused on executing our strategic plan” said Benjamin Sze , CEO of Decibel. “We continue to execute as a producer of premium cannabis, with strong demand for our latest cultivars. The early success of our cannabis 2.0 product categories validates Decibel’s approach to product innovation while maintaining our commitment to quality.”

In the third quarter of 2020, the Company achieved net revenue growth of 29% and, for the first time, positive adjusted EBITDA, by delivering net revenue growth in all business verticals. The Company executed on its strategic plan, delivering high end cannabis products and consumer experiences through its Qwest Family of Brands and Prairie Records retail business, realizing cost reductions, and launching vape and concentrate products within the third quarter.

Q3 2020 Financial and Operational Highlights

  • Net Revenue Growth: Total net revenue grew by 29% over the second quarter to $7.6 million , driven by strong sales growth from retail and cultivation operations, and only includes one month of derivative product sales in September. Net revenue grew by 163% over the comparative 2019 period.
  • First Period of Positive Adj. EBITDA: The third quarter marks an inflection point in the business, as the Company achieved $860 thousand of adjusted EBITDA, an improvement of $886 thousand from the prior quarter.
  • Increased Qwest Sales : 272 kilograms sold in the third quarter, with an average wholesale flower net price per gram of $8.68 for the period, a 9% increase over the second quarter of 2020. The Company launched new trendsetting cultivars that deliver high THC and strong terpene profiles at the start of the quarter, including Kush Mints, Point Break, and Ex-Wife.
  • First Month of Derivative Sales: In September, Decibel achieved a key milestone with its extraction and manufacturing facility, The Plant, shipping its first orders to Saskatchewan andAlberta . This initiative contributed $785 thousand of net revenue for the period. Initial product launches have been well received with reorders being received shortly after initial sales.
  • Strong Prairie Records Results: Increased revenue for the period to $3.9 million , reflecting sales growth of 2% over the second quarter of 2020. Decibel opened two new Alberta retail stores in July, one near the University of Alberta campus in Edmonton and one beside the Palace Theatre in downtown Calgary on Stephen Ave.
  • Cost Reduction Initiatives: Decibel completed the majority of its corporate cost cutting initiatives in the third quarter, and remains laser focused on managing costs and driving profitable operations. Had Westleaf and We Grow been combined for the entire 2019 year, a 32% reduction in SG&A year to date would have been realized, despite commencing commercial operations at the Plant and new retail store openings in Q3 2020.
  • Substantial Completion of Construction of Thunderchild Cultivation: Decibel substantially completed construction of its large scale, indoor cultivation facility, Thunderchild Cultivation, in July. The Company has submitted a complete site evidence package to Health Canada for licensing of the Thunderchild Cultivation facility.

Quarterly Highlights

Three months ended

Nine months ended

September 30,

September 30,

September 30,

September 30,

2020

2019

2020

2019

Net wholesale revenue of flower

$2,361

$2,880

$6,578

$4,702

Kilograms of flower sold

272

369

782

563

Average wholesale flower gross pricing per gram

$10.18

$9.07

$10.15

$9.81

Average wholesale flower net pricing per gram

$8.68

$7.80

$8.41

$8.35

Kilograms of cannabis harvested

311

345

936

1,080

Net wholesale revenue of extracts

$785

$785

Other wholesale revenue

$500

$565

Number of retail stores

6

nil

6

nil

Retail revenue

$3,932

nil

$10,578

nil

Total

Net revenue

$7,578

$2,880

$18,505

$4,702

Gross profit before fair value adjustments

$2,898

$1,126

$7,164

$1,804

Adjusted EBITDA (a)

$860

$875

$425

$0

(a)

Adjusted EBITDA is a non-GAAP performance measure. Refer to ” Cautionary Statements – Non-GAAP Measures” for further details.

Decibel’s financial statements for the three-month period ending September 30, 2020(“Financial Statements”) and related Management’s Discussion & Analysis (“MD&A”) for the reporting period are available under the Company’s profile at www.sedar.com .  As of September 30, 2020 , Decibel was in compliance with all of its financial covenants and expects to remain in compliance for the remainder of its twelve-month forecast period.  The Company’s ability to meet the conditions of these ratio covenants over the next twelve months is subject to the Company’s ability to operationalize capital projects that are either recently completed or are subject to Health Canada licensing and operationalizing, and all other applicable regulatory approvals in order to generate revenues.

Leave of Absence

Due to personal reasons, Benjamin Sze , Chief Executive Officer, is taking a leave of absence from his role as Chief Executive Officer of the Company as of the close of business today for an indefinite period of time. Cody Church , the Company’s current Chairman of the Board, has been appointed Interim Chief Executive Officer, effective as of the close of business on November 25, 2020 .

Results of Annual Meeting

Decibel is also pleased to announce that its shareholders approved all matters submitted by the Company for consideration at its annual and special meeting of shareholders held yesterday, November 24, 2020 (the “Meeting”).

Due to the special circumstances arising from the global COVID-19 pandemic, and following guidance of local health authorities for social distancing, Decibel encouraged shareholders to vote in advance of the Meeting using the instructions provided in the Notice of Meeting and Management Informational Circular and Proxy Statement. The Company also provided remote access to the Meeting via an audio webinar, and will make a recording of the Meeting available on its website in the coming days.

At the Meeting, Decibel’s shareholders:

(i)

Fixed the number of directors of the Corporation to be elected at the Meeting at six directors;

(ii)

Elected each of Cody Church, Paul Wilson, Michael Kelly, Ivan Casselman, Benjamin Sze and Billy Yellowhead as directors of the Company;

(iii)

Appointed KPMG LLP, Chartered Professional Accountants, as the Company’s auditors;

(iv)

Re-approved the Company’s stock option plan; and

(v)

Re-approved the Company’s restricted share unit award plan.

About Decibel

Decibel is uncompromising in the process and craftsmanship needed to deliver the highest quality cannabis products and retail experiences. Decibel has three production houses operating or under development along with its wholly owned retail business, Prairie Records. The Qwest Estate in Creston, BC is a licensed and operating 26,000 square foot cultivation space which produces the widely championed, rare cultivar-focused brands Qwest and Qwest Reserve, which are sold in six provinces across Canada . Thunderchild Cultivation, an 80,000 square foot indoor cultivation facility in Battleford, SK is scheduled to be completed and licensed in 2020. The Plant, Decibel’s extraction facility, in Calgary, AB has 15,000 square feet of Health Canada licensed extraction and product development space. This production house will fuel the growth of our brands Qwest, Qwest Reserve, and Blendcraft, into new and innovative product formats like concentrates, vapes, edibles and beyond.

Neither TSX Venture Exchange nor its Regulation Services Provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.

This article was published by CFN Enterprises Inc. (OTCQB: CNFN), owner and operator of CFN Media, the industry’s leading agency and digital financial media network dedicated to the burgeoning CBD and legal cannabis industries. Call +1 (833) 420-CNFN for more information.

Ryan Allway

About Ryan Allway

Mr. Allway has over a decade of experience in the financial markets as both a private investor and financial journalist. He has been actively involved in the cannabis industry since its inception, covering public and private companies.


Source: https://www.cannabisfn.com/decibel-announces-net-revenue-increases-of-29-from-prior-quarter-first-period-of-positive-adjusted-ebitda-and-results-of-annual-meeting/

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California: 27% of menopausal women use Cannabis to Manage Menopause Symptoms

  Every year, more than 2 million women reach menopause, while 27 million go through the throes of menopause. Defined as the…

The post California: 27% of menopausal women use Cannabis to Manage Menopause Symptoms first appeared on CBD.CI CBD Living.

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Every year, more than 2 million women reach menopause, while 27 million go through the throes of menopause. Defined as the end of a woman’s menstrual cycle, menopausal women experience a natural decline in reproductive function with common symptoms such as hot flashes, night sweats, and mood disorders. Cannabis appears to be a natural solution available to relieve these symptoms.

How cannabis affects menopause 

Researchers associated with the San Francisco VA Medical Center interviewed 232 women (average age 56) living in Northern California and participated in the Midlife Veterans Health Survey, focusing on their management of menopause. This study is available by clicking here.

More than half of them reported embarrassing symptoms such as hot flashes and night sweats (54%), insomnia (27%), and genitourinary symptoms (69%).

  • Approximately 27% of those sampled reported using or currently using cannabis to manage their symptoms.
  • Another 10% of participants expressed interest in trying cannabis to manage menopausal symptoms in the future. More surprisingly, the survey found that women were more likely to use cannabis than traditional menopause therapy such as hormone treatment:
  • Only 19% reported using a more traditional type of menopausal symptom management such as hormone therapy.

Results that prove the place of cannabis in natural alternatives 

These results suggest that using cannabis to manage menopausal symptoms may be relatively common,” said Carolyn Gibson, lead author of the study.

However, we don’t know whether cannabis use is safe or effective for the management of menopausal symptoms or whether women discuss these decisions with their health care providers – particularly in IL, where cannabis is considered an illegal substance under federal guidelines”.

Cannabis use was most often reported by women with hot flashes and night sweats, who represented more than half of those surveyed. About one-quarter of women reported insomnia, while 69% had frequent genitourinary symptoms.

Given the relatively high rate of cannabis use among women in this cohort, scientists and others would be well advised to further explore its safety, efficacy, and prevalence in postmenopausal women.

The researchers agreed with this sentiment, concluding that, while promising, the results of the small sample size required further investigation.

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Source: https://www.cbd.ci/health/california-27-of-menopausal-women-use-cannabis-to-manage-menopause-symptoms/

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Zoro celebrates three years of continuous growth

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Zoro celebrates three years of continuous growth

Zoro, UK supplier of fasteners, tools, and equipment to businesses within the engineering sector, is celebrating its third year of continuous growth with a team twice the size and an increased product range to that it started with.

Since 2017, Zoro has gone from strength to strength, with plans to increase staff by another quarter within the next year. The number of products Zoro has sold has also doubled to 300,000 items of PPE, tools, fasteners and equipment, including big name brands. Since January 2020 alone, the company has launched over 97,000 new products.

Zoro UK is daughter company to Fortune 500 company Grainger Global, which was founded in 1927, and has more than 3.2 million businesses and institutions that purchase maintenance, repair and operations (MRO) products. Zoro supplies PPE and equipment to more than 126,000 companies in the engineering, automotive, aerospace, rail, marine and construction markets across the UK.

Chris Matenaers, marketing director at Zoro UK, said: “With around 19% of the UK’s workforce employed in the engineering sector, it is essential that companies have a reliable source of quality equipment, tools and, most importantly, PPE.”

Throughout 2020, despite being a challenging year for many businesses, the Zoro Category Management Team have been able to increase the number of suppliers by ten percent to overcome supply chain issues.

Matenaers believes one of the key reasons for strong and steady growth, apart from competitive pricing and a strong product range, is the flexible trade accounts.

“With office-based teams currently working from home, our multi-user accounts allow for easy collaboration for teams to order the supplies they need. We understand how important next-day delivery and reliable customer service is and we are striving to keep up with demand.”

Zoro’s Business Accounts offers multi-user access, a feature developed for home working. All purchases made by users on the business account will contribute towards the company’s tiered pricing discounts scheme. Other features also include order subscription, introduced to reduce admin, easy-share quotations and multi-user accounts with capped spending.

https://www.zoro.co.uk

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Source: https://www.aero-mag.com/zoro-celebrates-three-years-of-continuous-growth/

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