Cannabis Musings - October 26, 2023
Cannabis Musings - October 26, 2023
Georgia did what now?
Friends, at this point, there’s few things in the cannabis industry that make me go “Hmmm.” So imagine my surprise when I read that the State of Georgia will now allow licensed pharmacies to sell low-dosage THC products. Under the new regulations, medical customers will now be able to go to participating state-licensed pharmacies to purchase doctor-prescribed THC oil products (such as tinctures and capsules, but not edibles) with not more than 5% THC by weight. Hmmm.
On the one hand, this makes complete sense – cannabis is a medical product, and so it’s only logical that it be sold in pharmacies alongside other pharmaceuticals. On the other hand, well, we’re talking about cannabis, right? The stuff that’s federally illegal? That states love to tightly regulate and control at every stage of the supply chain? It’s honestly a little shocking to see a state government open up access outside of the dispensary (putting aside the hemp-derived THC debate for the moment).
You may be wondering – how can a pharmacy sell a federally-illegal product? Well, generally, pharmacies are state-regulated and licensed, unless they’re also dispensing federally-controlled substances, which requires Drug Enforcement Agency registration (not legal advice). So, they wouldn’t be risking any federal licenses, the reason why you don’t see banks, alcohol companies, tobacco companies, investment firms, and the like doing business in the industry.
This is a logical and sensible expansion of access to cannabis. The demand is there, with one producer reportedly noting that 130 pharmacies in the state have agreed to sell its medical products, and MSO Trulieve also getting into the game. It will naturally create some competition with existing licensed dispensaries, but the very specific and narrow range of products and allowed medical conditions for prescription will likely mitigate that.
More importantly, it improves access to cannabis products to those who need it most, continuing to change the narrative of cannabis by normalizing it. It reminds me a little bit of the news last year that MSO GTI would be co-locating dispensaries with Circle K locations in Florida. Although that deal reportedly remains on hold, if it were to come to fruition, it would similarly signal that cannabis should be treated like any other adult product.
I, for one, am surprised, and es gefelt mir (“it pleases me”).
On a lighter note, while nothing in these Cannabis Musings is ever legal advice, I’m willing to go out on a limb and suggest that it’s a bad idea to try to bribe your way into securing a cannabis license. Oy vey.
Be seeing you!
Hauser Advisory provides advice and strategy on business lifecycle events and cannabis industry navigation, tapping into a deep, national network and twenty-five years of dealmaking and capital markets experience.
© 2023 Marc Hauser and Hauser Advisory. None of the foregoing is legal, investment, or any other sort of advice, and it may not be relied upon in any manner, shape, or form.