Allied Corp Secures US Footprint in Preparation for US Federal Legalization of Cannabis With Signing of Land Lease, Purchase of US License and Master Service Agreement - Seite 3

“This purchase and land lease signifies the beginning of Allied’s presence in the US as a strong multi-state operational approach to the US medical cannabis marketplace. We are confident that as legislation continues to move closer to US National Legalization, we will be ready. With our large scale production footprint and commercial export licenses in Colombia producing low-cost, high-quality product, along with this Research and Product Fulfillment Center now located in one of the busiest tourism cities within the United States, we are set for the national volume demand that is coming. Many agricultural commodities consumed in the US are not grown in the US but rather South America due to all of the production and cost advantages. It is just good logic to believe that the same will be the case for cannabis,” says Calum Hughes, CEO of Allied.

Moving towards US legalization – Allied is Ready.

H.R. 1595, the Secure and Fair Enforcement (SAFE) Banking Act of 2019, the S. 1689, the Marijuana Justice Act and The Marijuana Opportunity, Reinvestment, and Expungement (MORE) Act of 2020 (H.R. 3884) have all been presented to the US House. These, among additional outcomes, will remove cannabis from the Controlled Substances Act when passed. All of these are discussed briefly below. (SOURCE:https://www.congress.gov/bill/115th-congress/senate-bill/1689).

The SAFE Banking Act was passed in the US House in 2019 (SOURCE: https://www.congress.gov/bill/116th-congress/house-bill/1595 )
Currently, due to the lack of federal legalization, cannabis businesses face hurdles in gaining access to financial services from banks, even in states where marijuana use is legalized. By extension, such businesses are often forced to primarily rely on cash. The SAFE Banking Act, which passed in the House in 2019, proposes to “increase public safety by ensuring access to financial services to cannabis-related legitimate businesses and service providers and reducing the amount of cash at such businesses,” and would allow financial institutions like banks and insurers to provide financial services to cannabis-related legitimate businesses without facing penalties. The SAFE Banking Act also provides protections for ancillary businesses, stating that proceeds from transactions involving cannabis-related legitimate businesses are not unlawful on the basis of being cannabis-related.