Guam's Gov. Lou Leon Guerrero (D) on Thursday signed a bill legalizing recreational marijuana in the territory into law.

The law allows people over 21 to have up to an ounce of marijuana in their possession, according to Pacific Daily News. Adults will also be permitted to grow six marijuana plants, but for the time being will not be permitted to buy or sell marijuana.

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"We must regulate this illicit drug that is the most widely used drug in our society," Leon Guerrero reportedly said at a press conference. "We have to take it and control it, monitor its use and effects, benefit from its medicinal efforts, allow our people to live in a safer environment."

"Keeping it illegal in my mind rejects the motion that it exists and that the underground market will continue to prey on us. We have to be ahead of this and we have to control it," she added.

The law also creates a Cannabis Control Board that will be tasked with the drug's testing, manufacturing, licensing, packaging and production. The board has a year to create marijuana regulations, which have to be approved by lawmakers.</s>All dollar figures herein are Canadian dollars.

The Canadian market continues to be in its infancy, as Canada's largest province only opened its first retail stores on April 1. In January, Canada sold only $53.4 million of recreational cannabis at retail at an annualized pace of $640 million/year. The Canadian recreational market is likely to grow 5x-10x this size over the next several years. It's very likely these market shares will change as the recreational cannabis market evolves, especially as Ontario and British Columbia become a larger proportion of national cannabis sales. However, early market share may show which companies are doing well in this emerging growth industry - and could lead to higher growth rates for these companies in the coming years.

Each major cannabis company has now released earnings reports which include recreational cannabis sales. We can now figure out the early winners and losers in the Canadian recreational cannabis market.

Canopy Growth (CGC) had a phenomenal December quarter. Prior to earnings, I had expected Canopy to miss analysts' C$85 million revenue target and had estimated that Canopy would earn 19% recreational cannabis market share in a January article on The Growth Operation.

Canopy blew both my expectations out of the water. Canopy earned a remarkable 30% market share in Canadian recreational cannabis, selling 8,288 kg equivalents in the recreational market and over ten tonnes of cannabis in total. Canopy benefits from operating its own stores and from selling cannabis in every province and territory in Canada as well as a market-leading production capacity.

Canopy's early recreational cannabis results are justifying Canopy's relatively premium pricing over its peers and Canopy has continued to be first among peers with their entry into the United States hemp market in January.

As with Canopy Growth, Aurora Cannabis (ACB) justified their second-place valuation in cannabis by turning in the second-best results in the Canadian recreational cannabis market.

Aurora came into earnings having to lower analyst expectations: Analysts had expected Aurora to report $67 million in net revenue in their December quarter. Aurora reset those expectations to a more realistic $50-$55 million in early January and then hit that target in February, generating $54 million in net revenue. In doing this, Aurora sold 3,807 kg equivalents of recreational cannabis, good for 14% market share in the Canadian recreational cannabis market. As with Canopy Growth, this market share exceeded my own expectations from January in an article on The Growth Operation, where I expected Aurora would earn 11% market share.

In addition to Aurora's recreational market share, they also produced more cannabis than Canopy Growth this quarter and sold more non-recreational cannabis than their larger competitor.

Perhaps surprising, Hexo (HEXO) pipped more valuable peers like Tilray (TLRY) and Cronos (CRON) to nab third place in recreational cannabis market share.

During Hexo's January quarter, the company sold 2,537 kg equivalents of cannabis to go alongside modest Canadian medical cannabis sales. Hexo achieved these third-place sales despite selling dry cannabis in only a single province: Quebec. Hexo also sold cannabis oils and sprays in British Columbia and Ontario, but the vast majority of their sales were in their home province of Quebec.

Even more surprisingly, Hexo achieved these results despite being supply constrained during the quarter. After the quarter ended, Hexo added more cultivation capacity and supply deals with its pending purchase of Newstrike Brands (OTCPK:NWKRF). Hexo's strong sales are the result of a supply deal with Quebec to supply more than 200,000 kilograms of cannabis to the province over five years, and do not include any contribution from Hexo's joint venture with Molson Coors (TAP).

Aphria (APHA) is the fifth most costly cannabis company but surpassed two of its more valuable peers (Tilray and Cronos) in both revenue and cannabis sales in its November quarter.

Despite having only one-and-a-half months of recreational cannabis legality during its quarter, Aphria sold 1,947 kilogram equivalents of cannabis into the recreational market and generated over $22 million in net revenue. Aphria will look to build on these already-strong results when they report results for their February quarter on April 15, 2019.

It has been a tumultuous winter for Aphria, after short-seller allegations led to Aphria's CEO stepping down. Aphria looks to start this quarter in the right direction after receiving a Health Canada license to expand cannabis production in its Aphria One expansion project.

As with Hexo, Organigram (OTCQX:OGRMF) is another potentially surprising entrant on this list. While Organigram is worth less than one fifth as much as Cronos and Tilray, it pipped both in recreational cannabis this quarter by selling 1,673 kilogram equivalents in their November quarter. These sales were good for 8% market share in the Canadian cannabis market.

In my coverage on The Growth Operation, I have been especially appreciative of Organigram's very detailed disclosures in their quarterly filings, including detailed breakdowns of Organigram's sales volume, unit revenue, and unit costs for both the medical and recreational market and by product categories. Organigram is a company with nothing to hide, since their results are phenomenal. While both Tilray and Cronos failed to even break out recreational cannabis sales.

Organigram continues building their Phase 4B expansion project with updates that include construction photos. Organigram has not announced when they will release their February quarter results, but last year's results were released on April 24, 2018.

This was a good quarter for all five of these companies. Each company has shown their ability to effectively operate in the Canadian recreational cannabis market by securing provincial supply deals, producing enough cannabis to supply those provinces, and attracting retail customers through a mix of marketing, pricing, availability, and quality.

Above is a comparison between each of these five companies based on their enterprise values and their annualized sales, recreational market share (in enterprise value per percentage point of market share, expressed in millions), and their cannabis sales (expressed in dollars of enterprise value per gram of cannabis sold last quarter). In each case, a lower value is better, although each of these three metrics are imperfect measurements of the value of a cannabis company.

Generally, the Canadian recreational cannabis market is expected to grow much more rapidly than the Canadian medical cannabis market. The latter market is relatively mature, since medical cannabis has been legal since 2001. Market growth will be driven by the opening of new retail stores and the legalization of edibles, beverages, and vapes, which may come in October 2019.

It's unlikely that these early market shares will be permanent. Well-funded companies like Cronos and Tilray are likely to continue to compete for Canadian recreational cannabis dollars despite relatively poor starts. Canadian cannabis sales have been disproportionately distributed between provinces as well, with Atlantic Canada selling an over-sized portion of recreational cannabis thanks to strong launches in Prince Edward Island and Nova Scotia. It's likely that these results have helped Organigram in particular, as they are based in Atlantic Canada. Over the next few years, the gap in per capita cannabis sales between provinces will narrow, benefiting companies that are strong in Ontario, Quebec, and British Columbia.

Disclosure: I am/we are long CGC, HEXO, OGRMF. I wrote this article myself, and it expresses my own opinions. I am not receiving compensation for it (other than from Seeking Alpha). I have no business relationship with any company whose stock is mentioned in this article.</s>The governor of Guam has signed into law recreational use of marijuana on the U.S. island territory.

Gov. Lou Leon Guerrero signed the bill Thursday — a week after the Legislature narrowly passed the legislation that allows people ages 21 and older to possess up to an ounce (28 grams), the Pacific Daily News reported .

"We must regulate this illicit drug that is the most widely used drug in our society," the governor said. "We have to take it and control it, monitor its use and effects, benefit from its medicinal efforts, allow our people to live in a safer environment."

People won't be able to legally purchase marijuana until regulations are developed by the new Cannabis Control Board and approved by the Legislature.

The board has up to year to form the rules. The law tasks the nine-member board with overseeing cannabis testing, manufacturing, licensing and packaging.

Guam also needs a cannabis testing facility before sales can begin, Sen. Clynt Ridgell said.

"This has been and continues to be a community issue, but the fight is not over yet," Ridgell said in a statement. "I invite the public to remain focused on continuing to provide input in the development of the rules and regulations by the Cannabis Control Board for safe, adult use cannabis."

The law allows growing as many as six plants for personal use. It prohibits people from using marijuana in public or driving under the influence.

Under the law, employers can still enforce drug-free workplaces.

"Nothing changes in the policies of our workplace as responsible businesses and agencies," the governor said. "We must continue to enforce zero-tolerance of substance abuse in the workplace."</s>ALBUQUERQUE, N.M., April 05, 2019 (GLOBE NEWSWIRE) -- Governor Michelle Lujan Grisham signed into law on Thursday, April 4, effectively overhauling the state’s medical cannabis law for the first time since the inception of the program 12 years ago.



The sweeping enhancements to the Lynn and Erin Compassionate Use Act support the New Mexico Legislature’s public policy effort to define the use of medical cannabis as the equivalent of any other medical treatment.

“For the purpose of medical care, including an organ transplant, a qualified patient’s use of cannabis pursuant to the Lynn and Erin Compassionate Use Act shall be considered the equivalent of the use of any other medication under the direction of a physician and shall not be considered to constitute the use of an illicit substance or otherwise disqualify a qualified patient from medical care,” the statute reads under Section 14, Item D.

The updated law allows school children to be administered medical cannabis while on school-grounds, adds workplace protections for patients, lays the framework for out-of-state medical patients to access the program, and extends the lifetime of patient registry cards to three years with no program fee.

Other new additions to the law include guidance for medical cannabis consumption areas, removal of potency caps, continued enrollment via telemedicine, patient eligibility for anatomical gifting, and access to medical cannabis for those who are under supervision or in custody of a state or local government.

The Senate passed the bill by 33 to 2, while the House passed it by 55 to 15.

“The historic passage and signing of an expanded medical cannabis law is truly something to celebrate,” said Duke Rodriguez, CEO and President of Ultra Health®. “While the expansion of the program will provide access to even more potential patients, we recognize producers will be expected to cultivate and manufacture a broader range of cannabis and cannabis products. Guaranteeing an uninterrupted supply of quality cannabis statewide to current and future patients at prices they can afford remains the top priority.”

As of February 28, 2019 there were qualified patients in the program. With the addition of these statutory improvements, total active participants in New Mexico’s Medical Cannabis Program are projected to swell to nearly 150,000 by June 30, 2020.

This number is in line with from May 2018, which found 16 percent of adults in New Mexico said they would likely apply for a cannabis card in the next two years. Given New Mexico’s adult population of roughly adults, this translates to an excess of 200,000 enrollees.</s>The governor of Guam has signed into law a bill that legalizes the recreational use of marijuana on the U.S. island territory.

The Pacific Daily News reports Gov. Lou Leon Guerrero signed the bill Thursday — a week after the Guam Legislature narrowly passed the legislation that allows people, age 21 and older, to possess up to an 1 ounce (28 grams).

The law also allows adults to grow up to six plants for personal use.

People won't be able to legally purchase marijuana until regulations are developed by the new Cannabis Control Board and approved by the Legislature.

The board has up to year to form the rules. The law tasks the nine-member board with overseeing cannabis testing, manufacturing and licensing.</s>Vincent Guerrero Leon Guerrero, also known as “Ben Guerrero,” of Toto, died March 28 at the age of 72.

Mass of Intentions is offered at 6 p.m. Monday through Friday followed by rosary, 5:30 p.m. on Saturday followed by rosary and 9:30 a.m. on Sunday followed by rosary at Immaculate Heart of Mary Catholic Church in Toto.

Last respects will be held from 9 a.m. to 12:15 p.m. April 12 at Immaculate Heart of Mary Catholic Church in Toto.

Mass of Christian Burial is offered at 1 p.m. Interment will follow at Guam Memorial Park in Leyang, Barrigada.</s>While some adult use of cannabis is now legal on island, government of Guam employees are still subject to drug testing and disciplinary actions, including termination from their jobs for marijuana use, according to Gov. Lou Leon Guerrero.

GovGuam drug testing will continue to include testing for marijuana use, the governor said. The law also allows private employers to maintain drug-free workplaces.

More: Recreational marijuana use by adults now legal on Guam, new law draws swift reactions

More: FAQ: What you need to know about recreational marijuana

Attorney General Leevin Camacho Friday afternoon held a press conference to discuss some of the issues related to the impact of the new marijuana law. He said his office is consulting with law enforcement officials in other jurisdictions with legalized recreational marijuana to learn from their experience.

“Just to be clear, we would say best practice would be to review your employment policies, but this law hasn’t changed it with respect to government employees. And the law’s also very specific that private employers can still do whatever they need to do,” Camacho said.

The governor said public safety personnel such as police, fire and corrections officers are still prohibited from consuming cannabis products.

The policy against marijuana use remains a part of GovGuam's Drug-Free Workplace Program, and the signing of the recreational marijuana use legalization law does not change that, the governor said.

However, the governor tasked the Department of Administration to review the program and make recommendations as it deems necessary, in light of the new law.

"It is the policy of the government of Guam to maintain a drug and alcohol-free workplace, and this policy includes refraining from otherwise legal substances, including cannabis and tobacco, while in government of Guam workplace facilities and while otherwise on duty," the governor said in her latest executive order.

Leon Guerrero on Thursday signed into law Sen. Clynt Ridgell's bill legalizing recreational marijuana use by adults.

"Government employees, while acting in their official capacities, may not possess, consume or otherwise be under the influence of any derivation of cannabis," the governor said in her April 4 transmittal letter to Speaker Tina Muña Barnes.

On the same day, the governor also issued an executive order and a circular to clarify that GovGuam remains a drug-free workplace.

Newly signed Public Law 35-5 specifically allows employers, such as GovGuam, to maintain drug- and alcohol-free workplaces. The governor said this may include the prohibition of use of marijuana.

"The government of Guam's employees, including those in the autonomous agencies, should be held to the highest degree of accountability because of the trusted nature of public service," the governor said.

The new law allows those at least 21 years old to possess up to an ounce of marijuana.

Adults can grow no more than six plants for their personal use, but people still won’t be able to legally buy or sell marijuana until rules are finalized by a board within the year and approved by the Legislature.

GovGuam's Drug-Free Workplace Program provides for procedures for testing, rehabilitation and discipline of its employees who use drugs in the workplace or while in their official capacities.

The governor's April 4 circular to all department and agency heads further clarifies that despite the new law, GovGuam's policy against cannabis use "remains unchanged."

"In short, employees of both line and autonomous agencies can be tested for cannabis and will still be subject to all of the potential disciplinary actions. This includes termination from employment," the governor wrote.

She said employees who are under the influence of drugs or alcohol "are less productive, inefficient and make poor work decisions."

More: Recreational marijuana may leave businesses in murky water

More: Vape shops may expand to offer marijuana, depending on the rules, business owners say

The governor ordered DOA, which maintains GovGuam's Drug-Free Workplace Program, to review the program in light of the recreational marijuana use law.

DOA is tasked to seek input from the Guam Behavioral Health and Wellness Center, the Department of Public Health and Social Services, the Department of Integrated Services for Individuals with Disabilities, and the Guam Veterans Affairs Office which conducting the review.

The governor said DOA may also request input from all other GovGuam agencies.

DOA is required to report its findings in written form no later than Oct. 1.

Since the 1970s, Guam has joined in the "war on drugs" in an effort to eradicate controlled substances from the community. But the method, the governor said, "has done little other than to drive the black market further underground."

The governor, who's about to mark her third month on the job, said legalizing some recreational marijuana use by adults provides a more productive approach.

"It allows the government to regulate and insert controls so that adults can consume cannabis product safely. More importantly, the law strengthens and finances our efforts to provide preventative education and effective treatments," she said.

The governor said the youth shall not and will not be allowed to access cannabis.

Anyone under the age of 21 and found to be in violation of the law or anyone caught providing access of cannabis to underage individuals will be penalized.

The governor said the courts will continue to restrict people on conditions of release, probation, and parole supervision from possession and use of cannabis.

"Only law-abiding adults – who already must make responsible decisions on whether or

 not to consume alcohol or tobacco products – will be afforded another choice: whether or not to consume cannabis products," the governor said in her letter to the speaker.

The governor said the new law is "far from the perfect piece of legislation," so her administration is committing to fulfilling the requirements to regulate the cannabis industry.

She said her administration will also actively work with the Legislature to ensure that the law on safe adult use of cannabis remains current and relevant for Guam.

Before making her decision to legalize recreational marijuana use, Leon Guerrero met with those who oppose and support the bill. Those who are against it continue to let their concerns be heard.

More: "Blue Island," a documentary about autism on Guam, premieres April 15

"The war on keeping drugs and substance abuse away from our children just lost major ground. And we are our own worst enemies," Archbishop Michael Jude Byrnes said in a statement hours after the law's signing.

He said the Archdiocese of Agaña stands by its position that the legalization of recreational marijuana will be very harmful to the island, especially the children.

"We are saddened by the decision of Governor Lou Leon Guerrero to approve Bill 32 and sign it into law. We urge as she said today, for all groups in our community to devote tremendous effort and attention to protecting our youth from this illicit drug, which we all agree many of them are already regularly ingesting," the archbishop wrote.

Reporter Haidee Eugenio covers Guam's Catholic church issues, government, business and more. Follow her on Twitter @haidee_eugenio. Follow Pacific Daily News on Facebook/GuamPDN and Instagram @guampdn.</s>Businessman Sedfrey M. Linsangan asked the federal court to declare Guam's recreational marijuana law null and void because it violates federal law.

Linsangan, a former legislative candidate, filed a lawsuit in the U.S. District Court of Guam on Thursday, the same day Gov. Lou Leon Guerrero signed the law legalizing recreational cannabis use by people at least 21 years old.

The lawsuit says the new Guam law violates the Federal Controlled Substances Act, which classifies marijuana as a Schedule I controlled substance, and that the Organic Act doesn't allow Guam to pass laws contrary to federal law.

More: Recreational marijuana use by adults now legal on Guam, new law draws swift reactions

Linsangan, who represents himself in his lawsuit, said defendants government of Guam and Gov. Lou Leon Guerrero in her official capacity committed illegal acts that will "destroy families, children, economy, businesses and the island of Guam" and put more strain on the medical system and public coffers.

In his lawsuit, Linsangan asked the federal court to declare Guam's legalization of recreational and medical marijuana null and void. He also asked the court to enjoin the defendants from engaging in policymaking regarding the sale and distribution of marijuana.

Linsangan also asked the court to declare GovGuam and the Legislature committed "official misconduct and violated the federal law."

As of 6 p.m. Friday, Adelup and Sen. Clynt Ridgell, the legalization bill's main author, had yet to comment on the lawsuit.

Linsangan, who wanted to run for governor in a previous election, is the same person who challenged the requirement that he identify a running mate in order to be eligible for the primary election. A federal judge dismissed that lawsuit in June 2018.

More: Byrnes: Apuron guilty of child sex abuse, a deep shame that shouldn't happen again

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Reporter Haidee Eugenio covers Guam's Catholic church issues, government, business and more. Follow her on Twitter @haidee_eugenio. Follow Pacific Daily News on Facebook/GuamPDN and Instagram @guampdn.</s>With Gov. Lou Leon Guerrero’s signature on Bill 32 Thursday, recreational use of marijuana by people at least 21 years old becomes legal on Guam, with limitations.

The law allows those at least 21 years old to possess up to an ounce of marijuana.

Adults can grow no more than six plants for their personal use, but people still won’t be able to legally buy or sell marijuana until rules are finalized by a board within the year and approved by the Legislature.

FAQ: What you need to know about recreational marijuana

Related: Groups lobby governor to either sign or veto recreational marijuana bill

Guam joins a dozen states and territories, including the CNMI, in legalizing marijuana use for medical and recreational use.

Unlike most states, Guam legalized adult use of marijuana through its 15-member Legislature rather than by putting the issue before voters.

The bipartisan bill, sponsored by Sen. Clynt Ridgell and five other senators, narrowly passed by a vote of 8-to-7.

While there are still questions that the government can’t answer about the legislation until after regulations are approved, there are some absolute do’s and don’ts based on how the law is written.

It’s illegal to drive under the influence of marijuana. It is also illegal to consume it in public.

Employers would still be able to maintain drug-free workplaces.

The governor signed the bill about a week after senators narrowly passed Bill 32, and after the governor met with groups of individuals who support or opposing legalization of recreational marijuana.

Guam voters approved medical marijuana in 2014, but the program has not been fully implemented because of a lack of a testing laboratory, among other things. While waiting for the program to fully get off the ground, Guam approved home cultivation in 2018.

Guam voters approved medical marijuana in 2014, but the program has not been fully implemented because of a lack of a testing laboratory, among other things. While waiting for the program to fully get off the ground, Guam approved home cultivation in 2018.

Related: Vape shops may expand to offer marijuana, depending on the rules, business owners say

The governor during the 2018 campaign said she supported the concept of recreational cannabis legalization. But in meeting with private citizens advocating for or against the bill, the governor said she and her team will do their due diligence in reviewing the bill and will take public comments into consideration.

The contentious bill to legalize recreational marijuana passed the Legislature, with a vote of 8-to-7, on March 27.

Bill 32 or the Guam Cannabis Industry Act of 2019, calls for the establishment of a Cannabis Control Board, which would oversee the testing, manufacturing, licensing, packaging and production of marijuana.

The board has up to a year to develop rules and regulations, which are also subject to the Legislature's approval.

Senators led by Sen. Clynt Ridgell said they sponsored Bill 32 to create a new industry, enhance individual freedom, and promote the efficient use of law enforcement resources. They want a regulated industry for public health, welfare, safety and taxation purposes.

Reporter Haidee Eugenio covers Guam's Catholic church issues, government, business and more. Follow her on Twitter @haidee_eugenio. Follow Pacific Daily News on Facebook/GuamPDN and Instagram @guampdn.
• None Jonathan Ross Pangelinan sentenced to 10 years in prison for Leebrick Manglona's death
• None Guam post-mortem examinations delayed, leaving families waiting to lay loved ones to rest</s>Vireo Health International (OTC:VREOF), a science-focused multistate cannabis operator, is expanding into Massachusetts through the acquisition of Mayflower Botanicals, one of the state’s registered marijuana dispensaries.

Vireo operates in nine states, but Massachusetts will be the company’s first foray into an adult-use recreational marijuana markets.

As a physician-led company, Vireo views Massachusetts and other adult-use states as an opportunity to position cannabis as a healthier, less-addictive alternative to alcohol and tobacco.

A 2013 Centers for Disease Control study showed that 18 percent of adult Americans participated in excessive alcohol consumption, commonly called binge drinking. That excessive consumption of alcohol is responsible for an estimated 88,000 deaths per year in the U.S.

While the number of Americans who smoke tobacco continues to fall, smoking is still considered one of the leading causes of preventable death, responsible for over 500,000 deaths per year according to a 2014 CDC study.

Vireo’s CEO and Founder Kyle Kingsley, M.D. told Benzinga he started the company as an emergency room physician who was tired of watching patients die of opioid overdoses.

"Medical cannabis is not only a good alternative for pain medications, but it can also help save lives by becoming an alternative for the recreational use of alcohol and tobacco, which are more addictive and create greater health concerns.”

Late last week, Vireo expanded into two new medical marijuana markets as well.

On Monday, the company announced the acquisition of Arizona Natural Remedies, a vertically integrated operator with a dispensary in Phoenix.

Vireo followed that announcement Thursday by disclosing a second acquisition in New Mexico. Vireo purchased Red Barn, a holder of one of New Mexico’s medical cannabis licenses and owner of dispensaries in Santa Fe and Gallup.

“Vireo is excited to expand our operations into the Southwest region. Arizona and New Mexico’s well-established medical cannabis markets present us with fantastic opportunities to help more patients,” Kingsley told Benzinga at the time.

“Both Arizona Natural Remedies and Red Barn are well-respected operators and we look forward to welcoming them into the Vireo Family and continuing to provide their patients with top-quality cannabis products and unrivaled patient experiences.”

Vireo OTC shares were trading up by 1.54 percent at $4.98 at the time of publication Thursday.

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Governor Lou Leon Guerrero signs a bill into law, legalizing the recreational use of cannabis.