The Bengal Bite | Shades of "Gray" | May 8, 2020
No one reaches for moonshine or bathtub gin to pour a cocktail. Both are relics of the past because no one is willing to risk blindness or death to save a couple of dollars on alcohol when safe, regulated, and consistent spirits are available.
Based on the same logic, legal operators will ultimately prove to be the cannabis industry's winners. At present however, the illicit, legacy market is putting up a fight and has been emboldened by a regulatory framework that has not yet figured out how to support the legal market. For the time being, legal operators are forced to adapt to an environment that is more "gray" ("we will get by"!) than black or white.
The Bengal Capital Team
Why the illicit cannabis market is alive and well in California
Robert Hunt, principal at boutique cannabis consultancy, Shingle Hill, details the shortfalls of legalization that have allowed the illicit market to flourish in California and contemplates how to support the legal market. Read his full blog post series on LinkedIn.
Lawsuit pushes DEA to explain delays as applications for marijuana research pile up
For years, the Drug Enforcement Administration (DEA) has delayed applications for the cultivation and research of marijuana without explanation. Now, a new lawsuit has pushed the DEA for clarification. Due to stringent federal regulations, many scientists are forced to operate in the "gray area" between sanctioned and forbidden areas of research. Read more on how scientists are fighting to study cannabis.
Massachusetts bill to give state coronavirus relief to marijuana businesses gets hearing
The recreational cannabis market in Massachusetts has been hit hard by COVID-19 due to the closure of all non-medical dispensaries by Governor Charlie Baker. These small businesses would, if not for their cannabis connections, qualify for essential federal Paycheck Protection Program (PPP) loans, but they are excluded because they operate in the "gray area" between state and federal law. Massachusetts lawmakers held a hearing to discuss the establishment of a state-level coronavirus relief program that would extend PPP benefits to the marijuana industry imminently. Read more about this legislative initiative.