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Credit Suisse stops custodian service for some U.S. cannabis stocks-sources

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“(When) Credit Suisse pulled custodian (services) on cannabis stocks, a number of large investors in the space lost their ability to custodian the stocks.”

Abner Kurtin, Chief Executive Officer of newly-floated marijuana grower Ascend Wellness Holdings Inc

The Swiss lender was among a handful of banks that had been willing to buy and sell marijuana-related stocks for clients in the United States and hold those shares as a custodian, report Reuters.*

The Swiss lender was among a handful of banks that had been willing to buy and sell marijuana-related stocks for clients in the United States and hold those shares as a custodian.*

Credit Suisse declined to comment.*

Cannabis remains illegal under U.S. federal law, even though many states have legalized its use. This represents a legal risk for investment banks working for companies that produce or trade the drug.*

Credit Suisse’s compliance and risk management procedures have come under scrutiny from investors and analysts after it lost at least $4.7 billion from the collapse of Archegos, an investment firm dedicated to managing the fortune of hedge fund veteran Bill Hwang, as well as the suspension of funds linked to insolvent supply chain finance company Greensill.*

The MSOS exchange-traded fund , which tracks U.S. marijuana stocks, has fallen by more than a fifth since early February. Several market players said they believed Credit Suisse’s actions played a role in the selloff.*

“(When) Credit Suisse pulled custodian (services) on cannabis stocks, a number of large investors in the space lost their ability to custodian the stocks,” said Abner Kurtin, Chief Executive Officer of newly-floated marijuana grower Ascend Wellness Holdings Inc (AAWHu.CD).*

“That led to a significant selloff.”*

A custodian bank holds customers’ securities for safekeeping, to prevent them from being stolen or lost, while also collecting dividends and handling other corporate actions. It plays an important role in helping many investors to hold shares in companies.*

The weed industry has boomed over the last three years, as Canada and a succession of U.S. states, including most recently New York and New Jersey, legalized recreational use.*

Credit Suisse shares are down over 20% so far this year, and the bank has said it is cutting its prime brokerage business, which caters to hedge fund clients, by about a third.*

* original article

** image

*** ndlr. : –.

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Cannabinoids for the treatment of spasticity

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Sativex® as Add-on therapy Vs. further optimized first-line ANTispastics (SAVANT) in resistant multiple sclerosis spasticity: a double-blind, placebo-controlled randomised clinical trial

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“Introduction to cannabis therapeutic properties”

Screenshot Intro propriétés thérapeutiques cannabis, close-up
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Effects of THC/CBD oromucosal spray on spasticity-related symptoms in people with multiple sclerosis: results from a retrospective multicenter study

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Real world experience of patients with amyotrophic lateral sclerosis (ALS) in the treatment of spasticity using tetrahydrocannabinol:cannabidiol (THC:CBD)

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Virginia governor signs bill legalising marijuana possession from July 1

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“We are moving forward in a way that promotes equity, provides a clean slate to those with prior convictions, and reinvests in the communities harmed by over-criminalization”

Virginia Governor Ralph Northam

Virginia Governor Ralph Northam signed a bill that legalises the simple possession of marijuana, making the state the first in the U.S. south to allow the drug’s recreational use, the governor said, report Reuters.*

In a bid to tackle racial disparities in the prosecution of marijuana-related crimes, the state accelerated to July 1 its timetable to pass the legislation, rather than waiting until 2024.*

“Seventy-one days from now, Virginia will no longer police adults possessing small amounts of marijuana,” Northam said at Wednesday’s ceremonial signing of the bill.*

Northam cited a report by the Joint Legislative Audit and Review Commission that showed Black residents were more than three times as likely to be arrested for possessing small amounts of the drug.*

“We are moving forward in a way that promotes equity, provides a clean slate to those with prior convictions, and reinvests in the communities harmed by over-criminalization,” he said on Twitter.*

The legislation, signed a day after the informal April 20 pot holiday, also known as 4/20, allows anyone aged 21 or more to possess up to one ounce (28.4 grams) of marijuana.*

People in the state can cultivate up to four cannabis plants per home for personal use.*

NORML, a pro-marijuana group, celebrated the decision as an “extraordinary victory for cannabis justice” in the state.*

The timeline for the state to adopt provisions licensing commercial cannabis production and sales is July 1, 2024.*

On Monday, the U.S. House of Representatives passed legislation that lets banks provide services to cannabis companies in states where it is legal, a step towards levelling what analysts call a barrier to the development of a national industry.*

* original article

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EU allows Lesotho’s MG Health to export cannabis flower for medicinal use

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“What this means is that we have authorisation to export our products as an API into Germany and the wider European market. We expect to start in June.”

MG Health chief executive Andre Bothma

Lesotho start-up MG Health has become the first African cannabis-grower to win European Union permission to export cannabis flower for medicinal use – which can range from relieving chronic pain to treating spasms caused by multiple sclerosis, report Reuters.*

Lesotho has helped pioneer the nascent legal cannabis sector in Africa which could be worth more than $7.1 billion annually by 2023 if new laws are introduced, the African Cannabis Report said two years ago.

Launched in 2017, MG Health has its cultivation and modern processing facilities at a secluded location some 2,000 metres above sea-level in mountainous Lesotho, which is completely surrounded by South Africa.

MG Health chief executive Andre Bothma said the firm had received certification to export cannabis flower as an active pharmaceutical ingredient (API) under the EU’s Good Manufacturing Practices (GMP) protocol.

“What this means is that we have authorisation to export our products as an API into Germany and the wider European market. We expect to start in June,” he said on the sidelines of a media event with his Munich-based import partner, Drapalin Pharmaceuticals.

Besides the EU and Germany, Bothma said they also planned to enter the UK and Australian markets.

A growing number of countries around the world are either legalising or relaxing laws on cannabis as attitudes towards the drug change. They include several in Africa, such as South Africa, Rwanda, Morocco and Malawi. read more

MG Health currently produces around 250kg of packed cannabis flower a month on a pilot-scale production footprint of 5000 square meters. As soon as exports start, another 10,000 m2 of greenhouse space will be added, officials said.

“Our contract is for a minimum of two tonnes for the first year,” Bothma said.

* original article

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Daily Practice Managing Resistant Multiple Sclerosis Spasticity With Delta-9-Tetrahydrocannabinol: Cannabidiol Oromucosal Spray: A Systematic Review of Observational Studies

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Safety and efficacy of nabiximols on spasticity symptoms in patients with motor neuron disease (CANALS): a multicentre, double-blind, randomized, placebo-controlled, phase 2 trial

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