Schumer: The U.S. Senate Will Soon Act on Cannabis Legalization

May 03, 2021 - By: Baystreet Staff

Cannabis legalization is about to get a major shot in the arm. Not only are more states legalizing cannabis, but we could soon see a federal legalization bill from Senate Majority Leader Chuck Schumer. In fact, according to Marijuana Moment, “Schumer for months has signaled that he and Democratic colleagues Sens. Cory Booker (D-NJ) and Ron Wyden (D-OR) intend to bring legislation this session to legalize cannabis nationwide, though the group has not yet revealed their proposal.” Progress could send related cannabis stocks to higher highs, including Pure Extracts Technologies Corp. (CSE:PULL)(OTC:PRXTF)(XFRA:A2QJAJ), Aleafia Health Inc. (TSX:AH)(OTC:ALEAF), Canopy Growth Corporation (NASDAQ:CGC)(TSX:WEED), Tilray Inc. (NASDAQ:TLRY), and Charlotte’s Web Holdings Inc. (TSX:CWEB)(OTC:CWBHF).

In addition, far more Americans believe cannabis should be legal. According to Pew Research, 91% of Americans now say cannabis should be legal, adding, “As more states, including Virginia and New York, continue to legalize marijuana, an overwhelming share of U.S. adults (91%) say either that marijuana should be legal for medical and recreational use (60%) or that it should be legal for medical use only (31%). Fewer than one-in-ten (8%) say marijuana should not be legal for use by adults.” With a good deal of positive catalysts, it may only be a matter of time before we see full legalization all over the country, and perhaps, the world.

One of the Those Top Beneficiaries is Pure Extracts Technologies

Pure Extracts Technologies Corp. (CSE:PULL)(OTC:PRXTF)(XFRA:A2QJAJ) provide the following corporate update. “We are extremely pleased to report that even though the Covid-19 pandemic continues to impact numerous business operations and even society itself, our enterprise has not only survived, but we are also thriving and growing.

With the early adoption of workplace anti-viral protocols in-place, we are proud to report that there have been no cases of Covid-19 at our facility despite our proximity to Whistler Village which has been hard hit by the pandemic. We sincerely offer our best wishes and thanks to our frontline workers across the nation and our thoughts are with all who have felt the impact of this awful disease. We are grateful to be working in an industry deemed ‘essential’ by the Canadian government and to be operating a safe and productive environment for our employees. As we head into the Spring, and hope for an end to the pandemic builds, we decided to offer a few points of interest regarding the state of our growing business.

Cannabis business

Our Pemberton, BC facility is fully operational and in daily production and readily able to meet the increasing demand for gummies, vapes and white label products. We are concurrently working towards scalable entry into the US market via a Michigan-based joint venture which proposes to include strategically located equipment and processing operations within the state. To achieve this, we have signed a Letter of Intent with an Oregon based multi-state operator (MSO) and the definitive agreement is being drafted by Canadian and Michigan lawyers at this time. In addition to our branded products, we plan to produce white label products for both our MSO partner and for some of the smaller companies in the area as well as license other established, out-of-state, brands for the Michigan market.

Michigan is a massive green-field market that Pure Extracts can readily launch into, both from establishing our Pure Pulls and Pure Chews brands, and also in an attempt to achieve a dominant position as a leading regional extractor as well as serve as our beachhead for expansion into other cannabis approved states. Michigan is growing at 800 percent year-over-year and we believe we are ideally positioned to capture a meaningful share of the region’s growing edible and vape market. Also, as deregulation continues to advance under President Biden’s administration, we aim to carve out a strong foothold poised to capitalize upon the northern states’ demand for oil-based products throughout the ongoing cannabis legislation evolution.

Here at home, a hugely important success is underway as we ramp-up production in preparation for delivery of our first orders to the provincial distribution networks. We are very excited to see Pure Pulls and Pure Chews re-enter the market and we have an excellent informational/educational program in place which is specifically designed to familiarize the retail bud tenders with the benefits and features of our historically popular product lineup.

Additionally, our gummie product proprietary packaging has been a big hit with the provincial distribution networks. This product is considered ideal for the retail outlets as the blister-packaging is more shelf stable than traditional pouch designs.  We believe this will be a differentiating factor for Pure Chews and should help us to obtain additional listings in all major markets in Canada where we expect it will be as successful as it has been for Taste-T, LLC, the US manufacturer of the famous Fireball Cinnamon and Margarita Chill gummie lines in Nevada,
Massachusetts, Michigan and Oklahoma. 

Another important element of our revenue model which we identified early on has turned into reality as we commenced our first tolling contract with a high-quality hemp grower. We are now in receipt of the first 500 kg of high potency CBD biomass in a relationship designed to instill customer loyalty with an ability to grow together towards mutual success. 

White labeling has also begun to build momentum and gain sales traction for us. We are in the final stages of bringing on 2 large Licensed Producers as customers in order to manufacture their cannabis 2.0 products in the vape and tincture sectors. Although the sales cycle has been longer with Covid-19, we are now regularly engaging with potential customer leads who are sending us a growing number of requests for information. 

Functional mushrooms 

Our involvement in the functional and psychoactive mushrooms space is also gaining momentum. We have successfully launched our functional wellness line of products through our Pure Mushrooms branded Amazon direct-to-consumer sales channels in the US and Canada. To service demand, we have initially launched with 2 important products; Reishi and Maitake and are developing an additional Lion’s Mane product for launch later this quarter. 

We believe Pure Mushrooms can be a meaningful revenue generator in 2022 and that by entering the functional part of the mushrooms sector this will give us greater ability to develop meaningful psilocybin-based psychedelic formulations in future. 

Psilocybin line

Regarding our outlook for psychoactive mushroom compounds, we continue to actively move forward with R&D efforts in this area. We are not alone in finding it hard to obtain psychedelic biomass as it is highly regulated by Health Canada with many people reporting that there is little or no product available for R&D purposes. Fortunately, we have entered an agreement with ShroomBloom, a BC-based psychedelic mushroom cultivator, to assist in providing us with ample product for our R&D efforts upon final receipt of their Health Canada approvals.

We are also excited to be working with Psyence Group (CSE: PSYG) who offer very strong R&D and production capabilities.  They currently have clinical trial opportunities in two major Canadian universities for the use of psilocybin in palliative care, and through our JV we will have access to Psyence’s team of doctors and researchers in Toronto, South Africa and Jamaica. This additional effort will prove invaluable as we work to formulate a psilocybin compound that will be fast-acting and effective in dealing with PTSD, anxiety and other mental illnesses.

In conclusion, although Covid-19 has lengthened our sales cycle somewhat, we are now enjoying renewed interest from producers and brands looking for new opportunities and partnerships. We are all extremely excited to be working together to unlock the potential value of what could soon be a continent-wide industry and an opportunity totally unique to our lifetime.

Other related developments from around the markets include:

Aleafia Health Inc. will announce its 2021 first quarter results on May 11, 2021 prior to market open. The Company will also host its earnings conference call the same day at 8:30 a.m. EDT. The call will be hosted by CEO Geoffrey Benic and CFO Benjamin Ferdinand.

Canopy Growth Corporation, a world-leading diversified cannabis, CBD and vaporization device company, announced Southern Glazer’s Wine & Spirits, the world’s pre-eminent distributor of beverage alcohol, as the distribution partner for its U.S. portfolio of CBD-infused beverages. This partnership announcement follows the recent launch of Quatreau – Canopy’s first line of CBD-infused beverages sold in the U.S. market.

Tilray Inc., a global pioneer in cannabis research, cultivation, production, and distribution, today announced that the company has been included in the inaugural list of TIME’s 100 Most Influential Companies. The new list — an expansion of the annual TIME100 franchise — highlights 100 businesses making an extraordinary impact around the world. Brendan Kennedy, Tilray's Chief Executive Officer, said, “On behalf of every Tilray employee, we feel extremely honored by TIME’s recognition as it provides validation for the myriad accomplishments and milestones that have marked Tilray’s status as a pioneer in the global cannabis industry. Now, as we finalize our merger with Aphria, the ‘new’ Tilray will leverage our combined strengths in geographic scale, product range, and brand expertise to meet our consumers' and patients' needs with attendant benefits for all of our stakeholders over the long term. We feel proud of all we’ve accomplished, grateful to our employees for their indispensable contributions, and passionate in our belief that the best is yet to come.”

Charlotte’s Web Holdings Inc., the market leader in hemp-derived cannabidiol wellness products and a Certified B Corporation, will report its first quarter results on May 11, 2021 before the open of trading on the Toronto Stock Exchange. A conference call to discuss the results is scheduled for the same day at 8:30 a.m. Eastern Time.

Legal Disclaimer / Except for the historical information presented herein, matters discussed in this article contains forward-looking statements that are subject to certain risks and uncertainties that could cause actual results to differ materially from any future results, performance or achievements expressed or implied by such statements. Winning Media is not registered with any financial or securities regulatory authority and does not provide nor claims to provide investment advice or recommendations to readers of this release. For making specific investment decisions, readers should seek their own advice. Winning Media is only compensated for its services in the form of cash-based compensation. Pursuant to an agreement Winning Media has been paid three thousand five hundred dollars for advertising and marketing services for Pure Extracts Technologies Corp. by a third party. We own ZERO shares of Pure Extracts Technologies Corp. Please click here for full disclaimer.

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