15 Apr Corona-Cannabis Update #7: Delays and Extensions, CARES Act Relief?

Groundhog Year grinds on for most of the US as we continue to wake each day to stay-at-home orders. New York has begun to talk about how to reopen, but not yet when. Many questions remain about what will happen as we emerge from our Hunger Games District 13 lives. In the meantime, some good and challenging developments in the last week regarding the impact that the pandemic has had on the marijuana and hemp industries. What are you seeing?

• Maine launch delayed. Maine issued its first adult use sale license about a month ago, but has now announced that the planned opening of this market has been delayed indefinitely due to coronavirus. This is the latest delay in rolling out adult use in the Pine Tree State which approved back in 2016. Maine started accepting retail applications back in December.
• Medical card renewals extended. Late last week New Hampshire confirmed that any medical marijuana licenses expiring in April, May or June will be good through July 31. Other states, like Pennsylvania, have tried to make things a bit easier, such as permitting curbside sales and waiving the need for an in-person doctor visit before a card is issued.
• Industry fighting back on relief bill. Legislators and industry groups have petitioned Congressional leaders to clarify (or ideally reverse) the exclusion of direct and indirect marijuana businesses from loans in the $2 trillion CARES bill recently passed.
• CBD sales surging. A recent survey suggests that folks are stockpiling CBD and indicating they intend to increase their use of the product during the pandemic. Some claim it is helpful to them for anxiety and sleep. The survey warns that these surges can easily flow back and lead to a sales decline.
• Mass. sued for closing adult use stores. A group of adult use dispensaries in MA has sued the Governor over his decision to leave open medical but close adult use marijuana stores as non-essential. The Governor said he was concerned about out of state residents coming into MA. The case argues that the closure was illegal as these stores should be treated the same as liquor stores or medical cannabis outlets. Some are suggesting reopening but limiting sales to MA residents.

This once-in-a-lifetime experience has moved at breakneck pace, and much has changed since our last installment. Small glimmers of hope are emerging and that is positive for sure. In the end, Maine will get there, medical cards will be renewed, CBD sales will stabilize and adult use stores will reopen in the Bay State. I do not think cannabis companies will obtain much relief under the CARES Act unfortunately, though some dispensation may be provided for some ancillary businesses. Hopefully this gets clarified soon. The clock, however, is ticking on survival for quite a number of businesses in our space as cash reserves in many companies continue to dwindle. Stay safe all!