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Aurora Cannabis Inc T.ACB

Alternate Symbol(s):  T.ACB.WS.U | ACB

Aurora Cannabis Inc. is a Canada-based medical cannabis company. The Company's principal business lines are focused on the production, distribution, and sale of cannabis related products in Canada and internationally. The Company’s segments include Canadian Cannabis, European Cannabis and Plant Propagation. The Company's adult-use brand portfolio includes Aurora Drift, San Rafael '71, Daily Special, Whistler, Being and Greybeard, as well as CBD brands, Reliva and KG7. Its medical cannabis brands include MedReleaf, CanniMed, Aurora and Whistler Medical Marijuana Co, as well as international brands, Pedanios, Bidiol and CraftPlant. Its cannabis products are primarily cultivated and manufactured in the facilities in Edmonton, Alberta; Bradford Ontario; Pemberton, British Columbia, and Odense, Denmark. The Company is focused on offering its cannabis products to global medical cannabis market, recreational cannabis market and global hemp-derived cannabidiol (CBD) markets.


TSX:ACB - Post by User

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Post by cheiseng4on May 31, 2017 10:06pm
401 Views
Post# 26309203

Interesting read on bill c-45

Interesting read on bill c-45

Debate on second reading C-45 Cannabis Act has begun

Yesterday in Ottawa we saw yet another milestone on the road to the potential legalization of cannabis for recreational use in Canada. Parliamentary procedural geeks recognize that while this is entitled “Second Reading” of the bill, this is the first formal debate on legalization. The debate, which started yesterday, encompasses 24 pages of text so far. While this will be tiny compared to what we will see at the end of the process, it does provide us with a first glimpse into where the battle lines will be drawn. 

Context

The words, phases, and attacks employed by each of the three main parties in Ottawa gives us an idea on where this debate will be headed for the remainder of its time in the House of Commons and into committee hearings. Industry participants would be well advised to study these attacks now in order to properly respond to them as the debate ventures into the media, mainstream discussions with Canadians, and also in any committee hearings that they are asked to participate in. It is of the utmost importance that the cannabis industry understands their audiences as they move into the public debate. 

Liberal Party of Canada – Supports the Bill

Debate was started by the Minister of Justice, the Honourable Jody Wilson-Raybould, the government sponsor of Bill C-45 as is tradition. While the Minister’s speech is predictable in its support for the bill, the commentary she provided did give us some additional confirmation of how the government views the issue, and some of the concerns identified by the sector. 

First, at the risk of being repetitive, the Minister began her remarks by restating the intent of the bill. It is important to remember that this bill is not about a “wild west” of cannabis consumption. The government’s intent is to restrict access to cannabis, not enhance it. The Minister’s second sentence of her comments emphasized this when she said:

“The bill proposes a framework to restrict and strictly regulate access to cannabis in order to protect the health and safety of Canadians, to keep cannabis out of the hands of young people, and to keep the profits out of the hands of criminals.”

She follows that up closely by stating that “in many cases, it is easier for kids to buy cannabis than cigarettes or a bottle of beer”. I believe it is important for the sector to recognize that while producers and activists alike may cheer the legislation, the root intent is much different than what they may assume.

Industry participants, especially those with emerging consumer brands, will be happy to see some of the Minister’s comments on advertising and promotions. Many industry insiders were quite concerned to see the Task Force recommendations which called for plain packaging and a prohibition on marketing and promotions. Over the past number of months, I have been sharing my belief that this would be different when the program eventually rolled out with promotions and brands allowed in age of majority settings. 

The Minister has clearly agreed. She went so far as to state:

    “Bill C-45 would allow cannabis producers to promote their brands and provide information about their products, but only where young persons would not be exposed to it. These limits are reasonable. They would allow adult consumers to make informed decisions, but they respond to the greater risks cannabis poses for young people”

I believe that this is an indication that the government has heard the concerns of the industry and has agreed that customers need brands to differentiate from the black market, encourage customer education, and allow for easy differentiation between different companies with similar strains. In my opinion, this is a significant and positive comment on the record from the Minister. 

The Minister makes other commentary on:

  • Medical vs Recreational regimes – “initially maintain a separate medical access framework to support patients”
  • Products allowed for sale – “able to purchase dried or fresh cannabis or cannabis oil” and further that edibles would be allowed at a later date once a regulatory regime for their production is created.
  • Those aged 12-18 would face Youth Justice Act charges for possession for under five grams, which seems to be an attack for the Conservatives.

Conservative Party of Canada – Against the bill

Not surprisingly, the Conservative Party of Canada is against the legislation for a variety of reasons. First up for the Conservative Party was the former Minister of Justice (and other posts) Rob Nicholson. Mr. Nicholson focuses his attacks on the bill around a few key points including:

  • Age of consumption with his preference being 25 years of age
  • Home grow of 4 plants
  • Youth access up to 5 grams of dried cannabis
  • Impaired driving
  • Edibles

Sector participants would be wise to pay attention to the Conservative party’s attacks on the bill specifically around the four plant allotment for home growth, and the issue of those under 18 and the 5 gram limit as that is where the Conservative’s focused their discussion. 

Mr. Nicholson, and his colleague from the Conservative Party Ms. Gladu (Sarnia-Lambton) took particular aim at the 5 grams limit for those under 18. To be clear, the proposed legislation indicates that no one under 18 can have cannabis legally, but if an individual is found to have cannabis under 5 grams and they are under 18, they would face Youth Justice Act charges which would avoid them having a criminal record for life. The Conservatives seem to believe that this is the equivalent of allowing children as young as 12 to posses 5 grams which they say is akin to 10 joints. The Conservatives are forceful in their debate that this is a critical flaw of the legislation. In fact, Ms. Gladu went so far in her comment to suggest that this bill “would probably become the drug mules at the school” when coupled with the ability for people to grow four plants at home. 

The Conservatives are also attacking home grow with both Ms. Gladu and Mr. Nicholson both using the same phrases in their speeches saying that home grow will put cannabis in the hands of kids. Mr. Nicholson repeatedly asserted that these plants would be grown at home “in the kitchen” which gives kids access. The phrase here is important and it is repeated often. They believe that the four plants, up to a meter high, would grow in the kitchen and therefore put cannabis into the hands of kids rather than remove it:

“Unlike prescription pills, which people can put away, marijuana plants, by definition, have to be out in the open. I cannot imagine any easier way for children to get hold of marijuana than when their parents are starting to grow it in the kitchen.”

Mr. Nicholson closes one of his replies in the debate with a call to amend the legislation which would have the effect of killing the bill outright.

New Democratic Party of Canada – Supports the bill in principle

The NDP had Mr. Alistair MacGregor (Cowichan-Malahat-Langford) speak on the bill. The NDP focused most of their commentary on the need for decriminalization of cannabis now so that people do not have criminal records for life for the consumption of a soon to be legal product. 

The member spoke intelligently on the age restrictions and the effort to balance medical reports with real world consumption patterns and the fact that 18 affords people the vote, military service, and other adult decisions. The NDP does take issue with the heavy penalties for those selling to individuals under 18. He questions if 14 years is too heavy handed and he cites that this is the same penalty for producing child pornography and attempting to leave Canada to commit terrorism. Mr. MacGregor would prefer to leave this to the discretion of judges.

Interesting that Mr. Macgregor believes that the government is over emphasizing the role of  organized crime in marijuana production which could indicate their support for even less regulations on cannabis than what the government suggests.

Summary

While debate has just begun, with hours left to go, we now have an indication of where the battle lines will be drawn on this legislation. While support and objection have lined up in a predictable way, the words and phases used in those positions are valuable to understand for those interested in the industry as we move forward.

 

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