SALT LAKE CITY, UT / ACCESSWIRE / July 25, 2024 / KindlyMD, Inc. ("KindlyMD" or the "Company") (NASDAQ:KDLY), a patient-first healthcare and healthcare data company uniquely integrating traditional primary care and pain management strategies with integrated behavioral and alternative therapies, announced today that it has submitted a comment to the U.S. Department of Justice, following its recent proposed rule to reclassify cannabis from Schedule I to Schedule III of the Controlled Substances Act ("CSA"), consistent with the view of the Department of Health and Human Services ("HHS") that cannabis has a currently accepted medical use as well as HHS's views concerning cannabis abuse potential and the level of physical or psychological dependence.
For the past 54 years, cannabis has been categorized as a Schedule I controlled substance under the Controlled Substances Act. Schedule I drugs, substances or chemicals are defined as drugs with no currently accepted medical use and a high potential for abuse.
KindlyMD submitted its comment electronically ahead of the July 22, 2024 deadline via the Federal eRulemaking Portal using the reference: "Docket No. DEA-1362." The full text of the Company's comment is included below.
KindlyMD CEO and Corporate Statement on Cannabis Reclassification:
KindlyMD welcomes the proposed rule to reclassify cannabis from Schedule I to Schedule III of the Controlled Substances Act. This reclassification represents significant progress in aligning federal policy with the growing recognition of the medical benefits of cannabis and the validity of the model of healthcare delivered by KindlyMD. However, it is important to clarify what this potential change does and does not mean for our industry.
First and foremost, the reclassification does not make marijuana legal, as it remains an illegal substance under federal law. KindlyMD will continue to comply with all applicable federal laws relating to controlled substances, including the CSA, the Bank Secrecy Act (BSA), and the Anti-Money Laundering (AML) prohibitions.
The reclassification to Schedule III is expected to have several positive impacts on the medical cannabis industry. Most notably, it has the potential to reduce patient costs for medical cannabis products. Currently, plant-touching cannabis businesses cannot deduct many of their operating expenses, leading to inflated tax liabilities. The change to Schedule III will allow these businesses to deduct expenses more akin to standard business operations, potentially adding significant amounts to their balance sheets. Some of this savings is expected to pass through to patients in the form of lower cost for medicinal cannabis products. For example, some large operators could see more than $100 million added to their balance sheets, enabling them to reinvest in research and deliver consistent quality products across multiple states.
Overall, the rescheduling of cannabis will create a more favorable business environment for KindlyMD and the patients we serve - with the potential to enable us to expand our services, reduce operational risks, and capitalize on new opportunities to enhance patient care and research. While this does not change the illegality of cannabis or change compliance requirements under federal law, the move to Schedule III represents progress.
For KindlyMD, this reclassification underscores the continued relevance and importance of our integrated healthcare model. KindlyMD is among the leaders in providing medical evaluation and pain management services related to treatment recommendations within the medical cannabis program in Utah. KindlyMD healthcare professionals provide patients with medical cannabis education and information to help patients decide whether medical cannabis may be a beneficial alternative treatment option for them. The reclassification is likely to lead to increased access and utilization of medical cannabis among our patients, benefiting KindlyMD through improved patient outcomes, new educational opportunities, and enhanced financial stability.
As the regulatory landscape evolves, KindlyMD will remain a crucial partner for patients seeking alternative and integrative healthcare solutions, particularly in our ongoing battle against the opioid epidemic.
In conclusion, KindlyMD remains committed to supporting the regulated cannabis industry through these changes. Our innovative approach and deep industry expertise position us uniquely to continue providing essential healthcare services, ensuring the growth and success of our patients and the broader community.
About KindlyMD
KindlyMD™️ is a patient-first healthcare and healthcare data company uniquely integrating traditional primary care and pain management strategies with integrated behavioral and alternative therapies to offer patients comprehensive care and reduce the addiction and dependency of opioid use in the U.S. KindlyMD currently operates four centers including the largest alternative pain treatment center in Utah. With a focus on holistic pain management through its specialty outpatient clinical services, including, where appropriate, the recommendation of medical cannabis by KindlyMD healthcare providers, KindlyMD is providing better patient health outcomes.
This press release contains certain forward-looking statements that are based upon current expectations and involve certain risks and uncertainties within the meaning of the U.S. Private Securities Litigation Reform Act of 1995. Such forward-looking statements can be identified by the use of words such as "should," "may," "intends," "anticipates," "believes," "estimates," "projects," "forecasts," "expects," "plans," and "proposes." These forward-looking statements are not guarantees of future performance and are subject to risks, uncertainties, and other factors, some of which are beyond our control and difficult to predict and could cause actual results to differ materially from those expressed or forecasted in the forward-looking statements. You are urged to carefully review and consider any cautionary statements and other disclosures, including, but not limited to, the statements made under the heading "Risk Factors" in KindlyMD, Inc.'s Annual Report on Form 10-K for the fiscal year ended December 31, 2022. KindlyMD, Inc. does not undertake any duty to update any forward-looking statements except as may be required by law. The information which appears on our websites and our social media platforms, including, but not limited to, Instagram and Facebook, is not part of this press release.
Investor Relations Contact:
Valter Pinto, Managing Director KCSA Strategic Communications (212) 896-1254 kindlymd@kcsa.com
