Does Big Business Offer Better Insight into Cannabis Reform Than Capitol Hill?

By Andrew Ward

Cannabis operators and executives tell Benzinga that private and public company movement could serve as a better indicator of regulatory activity than the federal government. At least they say the industry has progressed so far without the efforts of Capitol Hill.

Poseidon Asset Management’s executive director Emily Paxhia recently mentioned that she and her company are tracking the moves of private companies, cannabis and others, and noted which prominent brands are supporting the cannabis industry.

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Paxhia highlighted Nike Inc(NYSE: NKE) recently endorsed track star Sha’Carri Richardson for her suspension from the Olympics for cannabis use.

Describing the measures as “signaling moments”, Paxhia said investors and operators should consider, “When they think of these larger companies and look at instructions from them, not always from regulators who seem to be behind.”

Operators in various cannabis sectors feel that the industry offers better insight into regulatory needs and movements than lawmakers.

RELATED: How to Do Your Part to Advance Cannabis Reform in Your State

Michael Sassano, CEO of Somai Pharma, believes that big business is doing well and is shaping the industry’s market without the federal government. He assumes that this trend will continue.

“All of this continues as the government continues fiddling with the ball,” said Sassano. He added, “At some point it should be clear that federal legalization is just an outdated political football.”

Roger Bloss, CEO of the holding company MJ Holdings, Inc. (OTC: MJNE) said lawmakers act when companies create a need for industry moves and policy reforms. “Big companies have led it and there has been very little government intervention,” he said of the industry’s progress to date.

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Dede Perkins, co-founder and CEO of the compliance technology company ProCanna, thinks Big Cannabis is also a worthwhile indicator of the market.

She noted that cannabis leaders “have a multi-jurisdictional lens and have hired lobbyists to be on the front lines and speak to state, federal and in some cases international lawmakers”.

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Perkins cited how corporate leaders have a pulse of public cannabis demand and insight into upcoming M&A (mergers and acquisitions) activity that could transform markets and potential laws.

“Some lawmakers have insight into upcoming market moves, but I would listen to big company executives who are at the cutting edge at all levels,” said Perkins.

Operators who use M&A as a measure of regulation

Cannabis companies see the writing on the wall through big M&A deals.

Sassano said watching the US market is the best indicator of possible reform. “When Canadian CEOs … claim that the US is like a lottery ticket and US companies continue at a rapid pace of mergers and acquisitions, you know the US is rising.” In May 2021, Epidiolex and the entirety of GW Pharmaceuticals plc‘s (NASDAQ: GWPH) neuroscientific portfolio was acquired by Jazz Pharmaceuticals plc (NASDAQ: JAZZ) for $ 6.7 billion.

Perkins referred to another pending deal between MSOs Trulieve Cannabis Corporation (OTC: TCNNF) and Harvest Health & Recreation Inc. (OTC: HRVSF). Trulieve is currently in the process of finalizing a $ 2.1 billion deal to acquire Harvest.

RELATED: Convincing Mitch McConnell to Endorse Legal Weed Is Still the Only Way It Happens

Perkins added that MSOs are banding together to claim their share before domestic distribution is allowed. She said those who do so would “be able to dominate a region, not just one or a few scattered states”.

Klee Irwin, founder and owner of the CBD brand Irwin Naturals said his company aims to become the first national herbal extract brand to also sell THC products.

Like many others in the industry, Irwin is whose company is at Costco Wholesale Corporation (NASDAQ: COSTS), Walmart Inc (NYSE: WMT), CVS Health Corp. (NYSE: CVS) and Whole Foods believes “federal marijuana legalization is just around the corner”.

This article originally appeared on Benzinga and was republished with permission.