1Q21 Investor Update
FEDERAL LEGALIZATION OF CANNABIS
INCREASINGLY LIKELY
Federal Advancements
House passed SAFE Act for a second time, removing
limitations on cannabis banking activities
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Senate Majority Leader Chuck Schumer is pushing
the Senate toward lifting the federal prohibition on
marijuana with legislation that would represent the
biggest overhaul of federal drug policy in decades
Bipartisan State Attorneys General urged congress to
pass marijuana banking bill, protecting banks that
service state-legal marijuana markets from being
penalized by federal regulators
The Cannabis Freedom Alliance (CFA) was launched
to end the prohibition of cannabis while reducing
overregulation, including unreasonable tax rates, and
to promote innovation and entrepreneurship in the
space.
Source: Cowen Cigarette & Cannabis Circular, April 10, 2021
22nd Century Group, Inc.
State Advancements
New York: Governor Andrew Cuomo signed bill legalizing
adult use cannabis and expunging all convictions for
cannabis related charges that would become legal under
the bill
New Mexico: Legislation to allow adult use cannabis sales,
which would become effective on April 1, 2022, was passed
in a special session
Illinois: Department of Financial and Professional Regulation
reported adult use monthly sales for March of $109M,
~20% sequential growth (adjusted for selling days)
Montana: House Bill 701, which aims to legalize adult use
cannabis, will be reintroduced by Governor Greg Gianforte
(R) after failing to achieve necessary votes earlier this year.
LEGALIZATION WILL LIKELY INCREASE COMPETITION AND INCREASE THE NEED FOR HIGHLY DIFFERENTIATED
PRODUCTS GROWN AT COMMERCIAL SCALE - EXACTLY WHERE 22ND CENTURY IS UNIQUELY FOCUSED.
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