More layoffs at Canopy Growth and Hexo

Canopy Growth announced more layoffs describing it as strategic adjustments notes a company press release. This also comes off the back of the recent announcement by Hexo that they will be closing their Belleville facility in order to streamline operations.

The Breakdown

• Canopy expects the changes will generate savings of 100 – 150 million within 12 – 18 months
• According to CEO David Klein “to realize profitability and power growth, we are taking critical actions to further evolve Canopy Growth into an agile organization with a clear focus on the areas where we have the greatest potential of success,”
• Hexo is looking to become cash flow positive, it is worth noting that the Truss Beverage Co. operations are not impacted by the change and will continue to operate out of the facility.

Our Perspective

Cannabis can be a volatile industry, and this is particularly true for employees working at companies that have undergone mass layoffs over the last several years. As large producer’s clamor for profitable growth and streamline operations, the real-world impact that this has on the effected employees cannot be forgotten.

Lawsuit Filed Against MAPS Board Member

George Sarlo, a notable philanthropist and psychedelic advocate has filed a lawsuit against a board member at the Multidisciplinary Association for Psychedelic Studies (MAPS) with STAT releasing an in-depth investigative report by Olivia Goldhill.

The Breakdown

• Sarlo is well-known in the psychedelic community for being an early proponent of the potential mental health benefits of psychedelic and has donated considerably to psychedelic research.
• The lawsuit filed in May 2021 alleges that Dulai exploited her relationship with Sarlo, leading to her receiving upwards of $4 million.
• According to the lawsuit, Dulai gradually gained more influence over Sarlo’s life, working as his personal assistant, health care provider, and caregiver and had access to Sarlo’s bank accounts, email, and medical documents.
• Dulai remains on the board, and MAPS has taken no public steps to distance itself from her alleged actions claiming that they did not investigate the accusations against Dulai stating no credible claims have been made.

Our Perspective

Despite the conflicting accounts, this investigation by STAT highlights the clear need for strong regulations and formal licensing process and oversight for people supervising patients. The potential increased vulnerability of elderly people taking mind-altering drugs cannot be taken lightly and this investigation highlights the intricacies of a complicated client-therapist relationship. As the report states, “any medical or caregiving relationship has the potential to be taken advantage of, and psychedelics elevate that risk, highlighting the need for strong regulations to protect patients”.

Health Canada Releases Guidance Document on Personal Production

Health Canada has provided guidance on the access to cannabis for medical purposes program, primarily outlining its ability to provide the authority to refuse to issue, renew, amend, or revoke a registration for personal or designated production.

The Breakdown

• The guidance document outlines factors that may be considered in assessing public health and public safety concerns.
• These factors include history of non-compliance, criminal activity, and daily authorized amount.

Our Perspective

This guidance outlines the basic requirements patients need to follow when growing cannabis, as well as which circumstances Health Canada will evaluate to determine if a personal production license is issued, refused, or revoked. It does appear that this is an attempt by Health Canada to minimize the diversion of cannabis being grown for medical purposes to the illicit market by monitoring the daily authorized amount which can exceed 90 grams a day in some cases. Some argue that these daily amounts far exceed what a typical patient requires. However, it is also important to remember the large amount of cannabis it can take to produce other products like topicals, tinctures and edibles. The main takeaways though appears to be that if you are authorized for an “unusual” daily dosage of cannabis by a health care practitioner, there is potential it will be scrutinized.