Trump to Legalize Cannabis and Protect States Rights on Medical Marijuana.
What does this breaking news mean, or what are the first reactions…
1. The devil will be in the details, but yes this is BIG NEWS. With the new hemp bill introduced by Sen. McConnell (very powerful Senator from Kentucky), former Senator John Boehner joining a marijuana company this week (after being “Mr. I Hate Weed” for many years), and now this breaking news, the end is near for prohibition.
2. Trump won’t do it because Jeff Sessions hates weed. Nope, just the opposite, Trump HATES Jeff Sessions more and more as the Mueller investigation continues, and will cut a deal on legal cannabis just to piss Sessions off (and increase tax revenue and create jobs). Trump has been on ramage again about Sessions after the Mueller investigation and FBI agents stormed Trump’s lawyer’s office and collected records just this week. Since Sessions recused himself from the Russia probe, he cannot help Trump out and end the investigation. This irritates Trump to no end.
3. Depending on the details, massive, massive, and massive margin compression could be coming to cannabis. If there is a complete descheduling, or even a schedule 3 (ie the penalty for growing and shipping it will be minimal) then look out below! I am not saying there will be online stores shipping cannabis Monday morning, but that is certainly the direction we are headed. That means an order and lead online can be had for pennies, while dispensaries area paying easily over $ 50 a lead through services like Weedmaps and such.
4. Dispensaries are in big trouble. It will all be in the details, but you better be able to get your cost per customer down to internet type numbers because pretty soon there will be many players selling online if things keep going at this rate. Will you need a license, probably, but the sites with cannabis traffic that collect orders and build emails list will be the “Golden Goose” of the cannabis industry just based on the fact they can convert orders at much lower costs.
5. If the drug is descheduled or goes to class 3 or 4, in can go in the US mail with much less risk and penalty. That will end almost every business model built today around physical stores. Click your app, select Blue Dream, pick FEDEX, done. Be there in 36 hours or less.
6. This should lead to the release of any convicted felons or people in jail for just cannabis offenses, hence increaseing the workforce that is being decimated by opioids and other fiscal policy. People in the prision system for marijuana offenses will be released.
7. Massive international domino effect will happen if the USA reschedules or removes cannabis from the drug schedule list. This will open the door to every country on the planet to do the same. As the US goes, so does the world.
Stay tuned as details emerge next week…