CannTrust’s CEO didn’t just lose his job, he likely lost $8.2 million in stock options

Peter Aceto didn’t just lose his job as head of CannTrust Holdings Inc.: he likely lost out on about $8.2 million in stock options, among the highest pay packages in the pot sector. CannTrust fired Aceto, and chairman Eric Paul was asked to resign Thursday after a Globe and Mail report cited internal emails showing the executives were aware that pot was being grown in unlicensed rooms about seven months before Health Canada unearthed the breach. Aceto’s stock options will likely be canceled, as typically happens when an executive is fired with cause. Even if they’re not canceled, the options remain well under water following the recent stock plunge related to the licensing scandal.

New York Governor Signs Marijuana Decriminalization And Expungements Bill

New York Gov. Andrew Cuomo (D) signed a bill on Monday further decriminalizing marijuana possession and enabling those with prior cannabis convictions to have their records expunged. The law, which takes effect in 30 days, will make it so that possession of up to two ounces of marijuana is punishable by a $50-$200 fine with no jail time. Cuomo said the state’s existing cannabis policy has disproportionately impacted communities of color and, with the signing of the legislation, “we are ending this injustice once and for all.” “By providing individuals who have suffered the consequences of an unfair marijuana conviction with a path to have their records expunged and by reducing draconian penalties, we are taking a critical step forward in addressing a broken and discriminatory criminal justice process,” he said in a press release.

CannTrust Management Shakeup Likely, Jefferies Analyst Says

(Bloomberg) -- A Wall Street bank analyst is calling for a management shakeup at CannTrust Holdings Inc. after a report executives were aware the company violated pot rules before regulators unearthed the breach. The company’s shares plunged 22% to C$2.68 in Toronto on the Globe and Mail report which cited internal emails showing Chairman Eric Paul and Chief Executive Officer Peter Aceto were informed the company was growing pot in unlicensed rooms about seven months before Health Canada raised the issue.

CannTrust Jumps After Firing CEO Amid Breach at Cannabis Company

(Bloomberg) -- CannTrust Holdings Inc. shares climbed after the board of the Canadian cannabis company fired its chief executive officer and forced out its chairman amid a scandal over a regulatory breach. CEO Peter Aceto was fired “with cause” and chairman Eric Paul resigned at the request of the board, Vaughan, Ontario-based CannTrust said in a statement Thursday. CannTrust jumped 16% to $2.27 at 9:32 a.m. in New York trading on Friday, after the shares tumbled about 60% since the company received a compliance report from Health Canada in early July. But the future of the company looks increasingly uncertain with sales on hold amid a government investigation and mounting lawsuits.

Senate Schedules Second Cannabis Hearing For Next Week

A key Senate committee will hold a hearing next week to discuss hemp production, featuring witnesses from the U.S. Department of Agriculture (USDA), the Food and Drug Administration (FDA) and the Environmental Protection Agency (EPA). In the months since hemp and its derivatives were federally legalized under the 2018 Farm Bill, there’s been strong interest in developing USDA and FDA regulations for the crop and its compounds such as CBD, and lawmakers have repeatedly pressed the agencies to speed up the rulemaking process to unlock the industry’s potential.

More Than 100 Marijuana Businesses Urge Congress To Include Social Equity In Legalization

A coalition of more than 100 marijuana businesses and industry associations sent a letter to congressional leadership on Thursday, pressing them to ensure that any cannabis reform legislation include provisions promoting social equity in the industry. The letter describes the evolution in public opinion around marijuana policy, the mass incarceration implications of prohibition and the economic potential of legalizing and regulating cannabis. It makes the case that as Congress considers various proposals to change federal marijuana laws, the work won’t be complete with the mere end of prohibition.

Cannabis banking reform secures landmark US Senate panel hearing

A key U.S. Senate panel will meet next week to consider steps that could make it easier for marijuana companies to obtain banking services, a move that could pave the way for crucial MJ reform. The July 23 Senate Banking Committee hearing – which took industry officials by surprise – includes Sens. Jeff Merkley, an Oregon Democrat, and Cory Gardner, a Republican from Colorado. Both are backing the Secure and Fair Enforcement (SAFE) Banking Act. That bill would enable financial institutions to serve state-authorized marijuana businesses without fear of federal punishment. Lawmakers have become interested in the issue in part because of public-safety concerns of the largely cash-only cannabis industry.

FDA Says It Is Speeding Up The CBD Regulation Process

The Food and Drug Administration (FDA) said on Friday that it was “expediting” its efforts to develop rules for CBD and plans to issue a report on the department’s progress by early fall. FDA Acting Chief Information Officer Amy Abernethy tweeted that “FDA is expediting its work to address the many questions about cannabidiol (CBD),” describing it as “an important national issue with public health impact, & an important topic for American hemp farmers and many other stakeholders.” “We are enthusiastic about research into the therapeutic benefits of CBD products but also need to balance safety,” she said. “To understand the breadth of issues and gather data on safety we have conducted a public hearing, reviewed the medical literature, and have an open public docket.”

US growing largest crop of marijuana for research in 5 years

The U.S. government is growing the largest crop of research marijuana in five years, responding to interest in varieties with high levels of THC and CBD. The government is the only source of pot for nearly all research in the U.S., while it still considers it illegal and dangerous. Scientists have asked for weed that more closely matches what’s sold in states that have legalized medical or recreational marijuana, the National Institute on Drug Abuse said in an email Thursday to The Associated Press.

ACLU And Other Groups Form Coalition To Push Justice-Focused Marijuana Legalization Model

Ten leading civil rights and criminal justice reform groups announced on Tuesday the formation of a coalition to advocate that marijuana legalization legislation must be comprehensive and include wide-ranging social equity provisions. Members of the Marijuana Justice Coalition (MJC) include the ACLU, Center for American Progress, Center for Law and Social Policy, Drug Policy Alliance, Human Rights Watch, Immigrant Legal Resource Center, Lawyers’ Committee for Civil Rights Under Law, Leadership Conference on Civil & Human Rights, NORML and Students for Sensible Drug Policy.