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The video footage was shot on Sunday 14 July and shows two people in balaclavas erecting a pop-up banner on Piccadilly Gardens, right at the heart of the city centre.
The banner said 'free bud' on it and immediately drew a crowd, who gathered around the two people. The activists then took out a bag and started to give out smaller bags of cannabis from within.
This video has emerged as it was announced today that a cross party group of MPs predicted today that cannabis - currently a Class B drug - will be completely legalised in the UK within the next five years.
Conservative MP Jonathan Djanogly, Liberal Democrat Sir Norman Lamb, and Labour's David Lammy recently went on a fact-finding mission to Canada to see what the potential effects of legalisation would be.
Lammy and Norman believed that legalisation will take place in five years, whilst Djanogly thought it would be more like '10 to 15 years'.
The two balaclava-clad people continued to hand out what appears to be cannabis to the increasingly excited crowd.
However, one of the men - both of whom had 'OUTLAW' written on their balaclavas and jackets - was then collared by police as he tried to leave the square via a side street.
This whole thing was masterminded by a person known only as outlaw. The masked man and his friend were on a mission to challenge whether there was a 'legitimate reason' for cannabis to remain illegal.
In an anonymous statement, he said: "There's no harm or loss to anyone because a few guys are handing out weed.
"We question UK laws and legislation and like to test the authority.
"Until somebody can convince us that there's a legitimate reason for cannabis to be illegal, we'll keep doing what we're doing and keep pushing the barrier, regardless of the law.
"You can see in the video that the people of Manchester were absolutely loving it, not so much the police of Manchester!"
When asked if he was arrested afterwards, he continued: "You can't arrest a character with a made up name and no face. Outlaw's lawyers are right on top of the game.'
"This is literally just the start and it's gone mad! Giving out £800.00 worth of weed is nothing.
"We've got a few pop-ups soon and the album is out in August, all the updates will be on my Insta."
Greater Manchester Police have not yet commented on the video.
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