Erin Gorman Kirk, Connecticut's cannabis ombudsman, spoke Wednesday at Benzinga's Cannabis Capital Conference about the importance of protecting medical marijuana patients as the state moves toward recreational use.
Kirk noted that many patients are abandoning medical marijuana programs and transitioning to adult use.
“Currently, there are very few products for patients,” she said, because the original producers and seeds are no longer in the ground. “We have a very well-developed healthcare system that started in 2012, and everything is available to us. We could even buy tea from Bigelow Tea, which is very conservative. It's a great company, but they've made a great tea that veterans love.”
Now, the three main complaints Kirk has been receiving are lack of stable drugs, high prices, and poor quality.
“We're trying to get new producers online, but we don't want to do another lottery because we don't want to be Oklahoma.”
Matt Hawkins, founder and managing partner of Entourage Effect Capital, a venture capital firm that invests exclusively in the cannabis industry, said this scenario is common across the country in states transitioning to recreational use. said. In literally every state with a strong medical marijuana program, once adult-use products are available, the first product is blocked.
“This is a business decision,” he said, adding that it was not correct. Hawkins said he would like to know what happens if Florida allows adult use.
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As a patient advocate, Kirk visits Green Thumb Industries, Inc. GTBIF, Verano Holdings, Inc. VRNOF, and other major companies to find out how they can continue to make robust products for patients in a capitalist society. Can we be made to do so? Their answer was – we are not.' I'll do it. ”
To address this issue, Kirk proposed a bill he plans to introduce last Friday that would propose universality of the product so that adult patients can use the same products as medical patients. “I think everyone is a patient. I didn't even know I was a patient until I realized I couldn't study in school without cannabis. I graduated with honors because of cannabis use. I was able to get into law school.”
Mr. Hawkins shared insights into how different licensing models impact investment opportunities. He said states typically use three types of licensing models: lottery-based, merit-based, or a hybrid of the two. Lotteries may seem fairer, but they can lead to legal problems, as we saw in New York. However, merit-based systems are more attractive to investors because they are more predictable and the investment path is clearer.
He said Missouri, Ohio and Maryland are states with investment opportunities.
Discussing Connecticut's licensing model, Kirk talked about how it requires applicants for cultivation licenses to meet strict social equity standards, including proof of low income and past incarceration for cannabis-related crimes. I explained what I was requesting. However, this system often leaves small businesses dependent on financial support from large capital companies, resulting in predatory deals at high interest rates, sometimes as high as 30% to 40%, and undermines social equity. The goal was to be undermined.
Kirk and Hawkins participated in the conference panel “Complexity of the Licensing Process: Implications for Consumers and Businesses.”
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Photo: Benzinga Cannabis Capital Conference, Erin Gorman Kirk, Matt Hawkins, October 9th, Photo by Wendy Davis
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