Welcome to today’s Marijuana Minute, where we share the news that will help you profit from the end of cannabis prohibition, as well as keep you in the loop on the latest developments in the fight against the war on drugs.
ABCann Global (TSX-V: ABCN) Loves Big Pharma
ABcann Global Corporation (TSX-V: ABCN) has announced that former President and CEO of GlaxoSmithKline Canada, Paul Lucas, is taking over the role of Chair of the Board for the company.
As I’ve mentioned in the past, we’re going to see more and more former Big Pharma execs entering into these positions in the cannabis space. This should come as no surprise to investors that have been following the development of the cannabis industry over the past few years.
While there’s no doubt that Big Pharma has played a role in blocking the legalization of cannabis, the reality is that the end of cannabis prohibition is coming, and the “smartest guys in the room” know it.
It’s really all about strategy, and only a fool would ignore the profit potential of the legal cannabis industry going forward.
ABcann, by the way, is just one of many cannabis companies that have former Big Pharma representation at these levels. Another, and one that’s listed in my top 7 cannabis companies to own for 2018, is Emblem Corp. (TSX-V: EMC), which lists John H. Stewart as one of its most valuable contributors to its management team. Stewart, who not only ponied up $1 million as an early investor in the company, is a former president and CEO of Purdue Pharma. Purdue Pharma is the the maker of OxyContin.
Make no mistake, Big Pharma is not hesitating to get an early piece of the legal cannabis market. And we’re not hesitating either.
Rhode Island’s Governor is a Proud Prohibitionist
The Providence Journal recently did an interview with Rhode Island Governor Gina Raimondo where she was asked about her thoughts on the legalization of cannabis.
Here’s what she had to say …
I am not opposed on some principle. I think we’ll probably get there. It seems to be the way the country is going.
But I am not in a rush. … This issue, I do think, needs to be studied. … It’s complicated. It’s expensive.
Everyone seems to think there’s a ton of money in this. That is not the case. … Talk to the governor of Colorado. He says, the revenue is a drop in the bucket. … It costs money to regulate it.
What a bullshit answer!
Perhaps she’s not in a rush, but there are a lot of folks in the Ocean State that do see ending the war on drugs as a priority, and something that needs to be addressed immediately. These are the folks, mostly people of color, who are being victimized by it.
Raimondo also noted that the revenue generated from cannabis sales in Colorado is merely a drop in the bucket. Indeed, Colorado Governor John Hickenlooper did say that the state has a a $28 billion state budget overall, and $200 million is just a drop in the bucket there.
$200 million is what the state took in last year from tax revenue from cannabis sales. And while $200 million isn’t much when you put it up against $28 million, but make no mistake, that extra $200 million has not gone to waste. Here’s where some of the money is being spent …
- Construction projects to renovate or replace deteriorating public schools
- Substance abuse prevention programs
- Early literacy programs
- Programs designed to reduce the number of school dropouts
These are not trivial programs, and during a time when it’s becoming harder and harder to find funding for these types of things, to dismiss these funds as just a “drop in the bucket,” is irresponsible.
Raimondo also uses the famous prohibitionist stall tactic of “it needs to be studied. It’s complicated”
No, it’s not complicated at all. And there have been plenty of studies from which she can reference. She has just chosen not to.
While I will give the Governor a very small pass for supporting an increase in medical cannabis dispensaries, this is simply not enough. Anything but full-scale legalization is nothing more than a continuance of the war on drugs, which was launched as a war against minorities and has continued in an effort to placate the special interests that benefit from prohibition.