Cannabis laws are very clear in Oklahoma. The state legalized medical cannabis in October 2018. Since then, the medical marijuana industry has boomed in Oklahoma. Notably, the industry has brought in more consumers, growers, dispensers, processors, tax revenues, and patients in the state. However, there are some challenges. A new medical marijuana law hit Oklahoma. Let’s discuss the changes.
New state law for medical cannabis in Oklahoma
There’s a new law for medical cannabis in Oklahoma. The new law aims to regulate product labeling and drug testing policies. The new law requires medical marijuana businesses to track every transaction electronically.
A recent Business Intelligence report discussed how banks aren’t sure about providing funding for the cannabis industry. Also, real estate owners and landlords are hesitant about doing business in Oklahoma.
Banks could expect some changes soon. Recently, CNN reported that the House will vote on the SAFE Banking Act soon.
Medical cannabis industry boomed in Oklahoma
The medical marijuana industry has been expanding in Oklahoma since legalization last October. In November 2018, the first month after legalization, Oklahoma collected $1,300 in sales tax from medical cannabis. Overall, more patient applications increased medical cannabis sales. According to the Oklahoma Tax Commission, the state collected more than $1.6 million in excise tax in May. Also, state and local sales taxes added another $2 million in May.
Challenges the medical marijuana industry
Currently, the medical cannabis industry in the US faces research challenges. Marijuana is still a Schedule 1 drug under federal law, which makes it challenging to research the plant and understand the benefits. Medical cannabis helps treat chronic pain, chemotherapy-induced nausea and vomiting, and multiple sclerosis. Studies have shown that CBD-based products also help treat epilepsy to some extent.
Recently, the vaping industry took a hit. Many cases have shown that vaping can cause lung-related diseases. As a result, the FDA and CDC are researching whether cannabis and vaping are related. Some of the patients reported vaping THC, CBD, or some combination. To know more, read Cannabis Industry Heats Up, Trump Might Ban Vaping.
Could federal legalization help?
There’s a lack of funding and resources due to federal restrictions on marijuana. According to a Vox article, the Department of Justice restricts research on marijuana use.
Many presidential candidates want to make marijuana legal at the federal level. The US needs more marijuana research to understand its advantages. Notably, better research requires funds and resources.
Cannabis players are benefiting
Cannabis players are attracted to the growing medical marijuana industry in the US. Innovative Industrial Properties (IIPR) provides real estate solutions to medical cannabis players. So far, the stock has gained 2.1% in September. The company mentioned in its second-quarter earnings that it made acquisitions to drive growth:
- In April, IIPR acquired a 51,000-square-foot industrial property in Pennsylvania for medical-use cannabis cultivation and processing.
- In May, the company acquired an 11,000-square-foot industrial property in Ohio for medical-use cannabis processing.
- IIPR owns three properties in Michigan.
Aurora Cannabis (ACB) reported disappointing fourth-quarter results. However, the company saw continued growth in its Canadian and international medical marijuana business in the fourth quarter. The kilograms of medical cannabis produced rose 86% sequentially. So far, the stock has fallen 0.9% in September.
Canopy Growth (CGC) (WEED) saw gross revenues of 23.6 million Canadian dollars from its Canadian and international medical channel in the first quarter of 2020. Therefore, the company expects its international medical revenues to grow in the coming quarters. Recently, Canopy Growth launched a medical marijuana training program in Montreal. So far, the stock has gained 17.7% in September.
We think that President Trump could use medical marijuana in his reelection campaign. Read Marijuana: Will Trump Have an Edge over Biden? to learn more.
Stay tuned with us for more insights into the cannabis industry.