Oakland, Dec. 26, 2018 (GLOBE NEWSWIRE) -- In a historic landmark decision that will save Harborside and the legal cannabis industry millions of dollars, the U.S. Tax Court has ruled that the California dispensary is not liable for accuracy-related 280E penalties. 280E is a tax code provision that denies all standard business deductions to businesses whose operations “consist” of activities that violate the Controlled Substances Act.

According to the Opinion issued by the Court, Harborside acted “reasonably and in good faith” when taking its tax positions for the years at issue. The Court cited Harborside’s timely filing of its tax returns and its maintenance of accurate financial records as a key strength, along with a persuasive argument from Harborside co-founder and Chairman Emeritus, Steve DeAngelo, that he made good-faith efforts to comply with the law, despite a lack of clear legal authority to guide medical marijuana dispensary taxpayers.

The ruling comes just a few weeks after the same Court ruled that 280E itself does apply to Harborside — a ruling Harborside intends to appeal to the U.S. 9^th Circuit Court of Appeals.

READ MORE: Tax Court Reinforces 280E in Harborside Ruling

“We’re still working on knocking out 280E entirely, but at least for now we have established that cannabis businesses who operate in reasonable, good faith compliance with existing law will not suffer from additional unjust penalties,” said DeAngelo. “This ruling could save the legal cannabis industry tens of millions of dollars—dollars that ultimately come out of the pockets of cannabis consumers. What we are asking for is simple and fair: for the IRS to treat us like every other legal, tax paying business in the United States. Since the IRS has made it clear they are unwilling to do that on their own, Congress should step in and pass clear 280E reform legislation.”

In 2016, the U.S. Department of Justice gave up on a years-long attempt to seize the properties where Harborside does business, dismissing a pending civil forfeiture action initiated 2012, when California’s four U.S. Attorneys mounted a statewide campaign to shutter California’s medical cannabis industry. The campaign had succeeded in closing 600 dispensaries— one third of the dispensaries in the state—but ended after Harborside won multiple legal victories in both state and federal courts.

Thailand's parliament has voted to approve cannabis for medical use, with a key lawmaker calling it a "New Year's gift" to the Thai people.

Recreational use will remain illegal.

Marijuana was used in Thailand as a traditional medicine, until it was banned in the 1930s.

Southeast Asia has some of the world's toughest penalties for drug usage or possession, and Thailand is the first in the region to allow medicinal marijuana.

Read more

The Knesset, Israel's parliament, on Tuesday approved a reform that would allow the export of medical cannabis farmed and processed in the country. In total, 21 MKs voted for the law, which passed unopposed. The implementation of the reform, in the works since 2016, is still pending a final vote by ministers.

The reform is forecast to bring the country anywhere between $70 million and $1 billion a year.

Read more

NEW YORK, NY, Dec. 26, 2018 (GLOBE NEWSWIRE) -- Metrospaces, Inc. announces the execution with DLBCC Group to acquire LBCC Group's cannabis facility and operate under a JV Agreement.

Mr. Oscar Brito, Company Executive President, said: “Approximately in May2018, Metrospaces took a management decision to focus its resources and business plan towards the legalized cannabis industry. Our business plan is to leverage our extensive experience in real estate financing and development to establish JV partnerships to acquire and operate facility or real estate-based cannabis operations. We don’t have the industry expertise to operate a cannabis facility, but we do have extensive experience in construction, acquisition development, financing and repositioning of real estate assets. 

"We are very excited to establish this JV LOI agreement with LBCC Group to acquire, operate and grow this facility. LBCC Group has executed a Property Purchase Agreement with the seller and is set to close in approximately 90 days. A final JV agreement and Purchase Agreement is contingent on transfer of license and senior acquisition funding. Metrospaces would provide the equity portion of the acquisition, agreed at $20 million. Metrospaces would retain 75 percent of the business initially, but LBCC Group can gain an additional 10-percent equity stake based on achievement of certain financial goals.

“The facility is located in the city of Adelanto, California, and consists of a 12,000-sq.-ft. canopy facility licensed for cultivation, manufacture, and distribution of approximately 300 lbs. of monthly cannabis production. This production currently generates approximately $7.2 million in annual revenue with an operating profit of approximately $4.5 million per year.  Additionally, the site is set on a 6.5 acres site which allows to build another (already licensed) 8,000-sq.-ft. canopy. The acquisition also includes a non-operating retail operation.

“This acquisition would introduce us in the cannabis industry through the front door. It’s a very neatly run operation, with substantial upside potential. We think it’s the perfect operation for us to focus after our very positive experience in IQSTel.”

Metrospaces was originally founded by company President Oscar Brito.