With Virginia becoming the first adult-use cannabis domino to fall in the South, the race is now on among neighboring states to follow suit and end prohibition. South Carolina gubernatorial candidate Joe Cunningham hopes his state is the next.

The former one-term Democratic congressman, who represented South Carolina’s coastal 1st District from 2019-2021 in the U.S. House, narrowly lost his re-election bid to Republican state representative Nancy Mace, 50.6% to 49.4%, in the November election.

During his two years in Washington, D.C., Cunningham joined bipartisan bills the second most often compared to other House Democrats, and was the fifth most politically right compared to House Democrats, according to GovTrack.us.

Cunningham, 39, is now seeking his party’s nomination to challenge South Carolina Republican Gov. Henry McMaster, 74, in the November 2022 election.

joeforsouthcarolina.com

While Cunningham announced his run for governor in April and has since announced his support of cannabis legalization, he formally released his plan to end cannabis prohibition in the state during a press conference July 12 in Charleston. That plan calls for the full legalization of medical and adult-use cannabis for adults 21 years and older, as well as for the expungement of cannabis-relation convictions.

“There are countless reasons to provide our citizens with a safe and legal marijuana option,” Cunningham said. “Legalizing marijuana would free up our law enforcement to focus on more serious crimes and more effectively tackle our state’s record-high murder rate. It would be a game-changer for people in South Carolina with debilitating health conditions. And it would generate tens of millions in tax revenue to finally provide critical funding for our state.” 

According to South Carolina State Law Enforcement Division data, murders in the state were up nearly 25%, from 457 in 2019 to 571 in 2020. The 571 murders represent the highest yearly total since the state began tracking the statistic in 1960, CBS-affiliate WLTX reported. 

In addition to legalization and expungement, Cunningham said his cannabis plan aims to raise revenue through responsible regulation and create jobs to give South Carolina farmers a boost.

Cunningham also claimed McMaster has failed to be honest about cannabis and its benefits.

“The people are no longer divided on this issue,” Cunningham said. “It’s the politicians that haven’t come around. Politicians like Henry McMaster who have spent their entire career perpetuating the myths about marijuana, scaring people into thinking it’s more dangerous than it is and, worst of all, keeping it out of the hands of the people who need it most. I think it’s time to tell the truth. Be honest. This governor might be stuck in the past, but I’m not.”

In response to the legalization proposal, South Carolina GOP Chairman Drew McKissick said Cunningham was playing stupid games.

“We’ve seen the problems legalizing marijuana has caused in other states, like Colorado,” McKissick said in a press release. “The rise in crime, the increase in health problems, especially suicidal thoughts and the negative effect on children’s development, all became worse when the state decided to legalize marijuana.”

McKissick did not provide data to support those claims. According to a study by the CATO Institute, a libertarian think tank founded by the Charles Koch Foundation, violent crime has “neither soared nor plummeted” in the wake of cannabis legalization. Koch is a known advocate of ending cannabis prohibition.

RELATED: New Coalition Launches to End Cannabis Prohibition, Bridge Across Ideological, Party Lines

“If you want to play stupid games, you win stupid prizes,” McKissick said. “And Democrats like Joe Cunningham keep wanting to play with fire.”

McKissick went on and said he and his fellow Republicans stand with state law enforcement that cannabis should not be legalized, and with doctors who believe medicine is something that should be approved and regulated by the U.S. Food and Drug Administration. At least one fellow South Carolina Republican did not agree with McKissick’s stance.

The SCGOP’s stance on medical cannabis is “an intellectually lazy position that doesn’t even try to present medical facts as they currently exist …” state Sen. Tom Davis said in a tweet.

As the incumbent governor, McMaster has previously expressed his opposition toward the legalization of adult-use cannabis, and also has failed to voice his support for medical cannabis legislation, according to the National Organization for the Reform of Marijuana Laws (NORML).

McMaster assumed governorship of South Carolina on Jan. 24, 2017, when former Gov. Nikki Haley resigned to serve as the U.S. Ambassador of the United Nations during the Trump administration. McMaster, an early Donald Trump supporter who delivered the nominating speech for Trump during the 2016 Republican National Convention, then won his 2018 election to serve his first four-year term as South Carolina’s governor.

Cunningham won South Carolina’s 1st District that same election, claiming suburban voter support by demonstrating his interest in local issues, especially his opposition to offshore drilling. The first bill he introduced sought to ban offshore drilling and seismic testing off the Atlantic and Pacific coasts—it passed the House but stalled in the Senate—The State reported.

While a Democrat hasn’t won South Carolina’s governorship since Jim Hodges’ occupancy from 1999-2003, Cunningham’s ability to reach across party lines was a driving factor in his 2018 U.S. House victory, when he became the first candidate to flip one of the state’s congressional seats from red to blue in more than a decade. Before that, that last Democrat to win the 1st District was Mendel Jackson Davis in 1978.

Should Cunningham unseat McMaster in 2022, legalizing cannabis would still be a tough task in South Carolina, where Republicans currently hold 65% majorities in both chambers of the state Legislature.

As more and more states crack down on the production and sale of delta-8 THC products, more and more questions arise. For one, where does a cannabinoid like delta-8 THC fit within the broader hemp and state-licensed cannabis markets? 

While the legal context is becoming more clear with legislative action around the U.S., it's still very important to understand the context around this cannabinoid. It won't be the last of its kind to surface on the commercial market.

In our July 27 webinar, we're going to address the research, the legal questions and the business opportunities behind delta-8.

Register today.

In this event, we will explore delta-8 THC from a scientific angle and a legal angle. As part of this panel discussion, we will get into a broader examination of other minor cannabinoids (CBG, CBN, THCA) and how they might figure into short- and long-term business plans, as well as the responsibility on the part of a licensed cannabis business to communicate effectively with customers on these complicated topics.

Joining us will be Greg Gerdeman, founder and CSO of NASHCX, and Justin Walsh, partner at Gleam Law.

You'll learn where delta-8 fits into the cannabis market right now (and, maybe, in the future) and you'll learn how to plan for adaptive business decisions in a rapidly changing environment. Delta-8 is just one part of a longer story: the legalization of cannabis.

Cannabis has now become easier to access with new delivery app, 'Eaze.'

On June 7, Apple released several changes to its App Store Review Guidelines, clearing up existing policies, adding new specifications for app makers, and altering rules about what available apps for download can do, according to Apple Insider (AI).

Included in the changes was a loosening of restrictions regarding in-app purchases from a cannabis dispensary and licensed and legal pharmacies, AI reported.

One month after Apple released its new policies, 'Eaze' launched in the App Store--the first app in the U.S where consumers can purchase and get cannabis delivered directly to them.

"Eaze has always been about using the latest developments in technology to make shopping for legal cannabis more accessible," said Eaze CEO Rogelio Choy. "It's hard to overstate how important this is to our company and the industry."

The app utilizes geofencing to locate where purchases are made to ensure it's in areas where cannabis is legal. According to AI, consumers must be 21 years and older to purchase from the app and should be prepared to show several forms of identification throughout the purchase and delivery process. 

The app currently only offers delivery services in California, with plans to expand to Michigan later this month, AI reported.

CALGARY, Alberta, July 6, 2021 – PRESS RELEASE – High Tide Inc., a retail-focused cannabis corporation enhanced by the manufacturing and distribution of consumption accessories, is pleased to announce that it has completed the acquisition of DHC Supply LLC operating as Daily High Club.

The acquisition was completed pursuant to the terms of the merger agreement previously announced by the company on June 25, 2021, pursuant to which High Tide USA Inc., a Nevada corporation and a wholly owned U.S. subsidiary of the company, has acquired 100% of the issued and outstanding shares of Daily High Club.

Pursuant to the terms of the acquisition, the total consideration to Daily High Club shareholders for all the issued and outstanding securities of Daily High Club is: 839,820 common shares of High Tide valued at U.S.$6.75 million on the basis of a deemed price per High Tide share of CAD$9.92, being equal to the volume weighted average price per High Tide share on the TSX Venture Exchange for the 10 consecutive trading days preceding the closing of the transaction; and U.S.$3.25 million in cash (collectively with the share consideration).

In connection with the closing, Daily High Club CEO Harrison Baum has joined the High Tide team as director of digital marketing to oversee all social media initiatives for High Tide globally.

The High Tide shares issued pursuant to the share consideration are subject to a statutory hold period of four months and one day. In addition, the High Tide shares having a value of 25% of the consideration will be held in escrow to insure certain indemnification obligations if claims arise.

Furthermore, High Tide granted 13,333 stock options to Baum, exercisable at CAD$9.39 per High Tide share for a period of three years.

Below are some details of the acquisition:

• High Tide adds another top e-commerce platform to its portfolio which will now include three out of the top five most popular e-commerce platforms for consumption accessories globally totaling 91 million site visits in 2020, including 23 million associated with Daily High Club alone.
• High Tide gains access to Daily High Club’s over 15,000 subscription box members who are ideal customers for High Tide to potentially launch cannabis subscription boxes in the event of U.S. federal legalization.
• High Tide bolsters its online presence, by gaining access to Daily High Club’s almost 800,000 followers on Instagram and over 75,000 followers on TikTok.
• With over 1 million accessories sold under the Daily High Club name, High Tide adds a company to its portfolio with proven brand equity.
• Transaction is immediately accretive as Daily High Club generated U.S.$9.4 million in net revenue and U.S.$1.2 million in EBITDA during the 12 months ended April 2021.
• Pro forma for the acquisition, High Tide’s revenue run rate in the U.S. exceeds CAD$50 million.