MjLink Cannabis Business News and Press
CBT focuses strictly on the business of legal cannabis for medical and recreational use and aims to provide timely information—through its website, e-newsletter, mobile app, print magazine and annual conference—to help the reader make timely, informed decisions to help them run their businesses better and more profitably. In 2018, Cannabis Business Times was named Magazine of the Year by the American Society of Business Publication Editors.
LEAMINGTON, Ontario, Nov. 18, 2022 – PRESS RELEASE – Tilray Brands Inc., a leading global cannabis company focused on inspiring and empowering the worldwide community to live its very best life, announced that its medical cannabis division, Tilray Medical, has launched Take Back Control, a new platform developed to connect women with free resources on medical cannabis and to help destigmatize the use of medical cannabis in women’s health care practices. The Take Back Control platform connects people with free consultations with health care practitioners focused on women’s health providing expert advice on medical cannabis.
Take Back Control is designed to help women make informed decisions about medical cannabis and assists them along their path to discovering how medical cannabis can play a part in their daily health care practices. Available now in Canada, Take Back Control simplifies the steps to meet with a health care practitioner to help women through their needs and challenges, providing professional guidance to help kick-start their medical cannabis health care journey.
Tilray Medical is the recognized global leader in medical cannabis and is committed to helping people take back control of their health care choices and treatment. Unlike some other alternatives, medical cannabis lets people become an active participant in their health care journey.
For more information on Take Back Control visit www.takebackcontrolnow.ca.
]]>The German government must submit its cannabis legalization plans to the European Commission for approval before formal legislation can be introduced in the Bundestag, or German Parliament, but a senior opposition official has lobbied the European Union executive branch to block legalization efforts.
Klaus Holetschek, the health minister in Bavaria’s conservative-led state government, met the EU’s director-general for migration and home affairs in Brussels Nov. 16, according to the Associated Press. He urged the EU to veto Germany’s legalization proposal, telling EU official Monique Pariat that “the German government’s planned cannabis legalization doesn’t just endanger health, but I am convinced that it also violates European law,” AP reported.
Holetschek argued that two EU agreements force Germany and other member countries to criminalize cannabis, according to the news outlet.
German Health Minister Karl Lauterbach presented a cornerstone paper on planned legislation to federally legalize cannabis to Chancellor Olaf Scholz’s cabinet last month, after the legalization plans leaked to the media the week before.
Results from a Gallup Poll released Nov. 15 reaffirm that more than two-thirds of Americans favor full legalization of cannabis.
For the third straight year, a record-high 68% of U.S. adults support ending the federal prohibition of the plant, Gallup pollsters concluded from a survey conducted Oct. 3-20. The survey included a random sample of 1,009 adults aged 18 and older living in all 50 states and Washington, D.C.
When Gallup pollsters first asked Americans in 1969 “Do you think the use of marijuana should be legal, or not?” support was at 12%. It wasn’t until 2013 that a majority of Americans (58%) supported reform—the year after voters in Colorado and Washington passed adult-use cannabis ballot measures.
More recently, support for legalizing cannabis had majorities in 33 of 35 subgroups—with the exception of conservatives (49%) and those who attend church weekly (46%)—according to combined Gallup data from 2018-2022.
“An overwhelming majority of Americans have consistently opposed our failed prohibition of marijuana for years now, and it defies common sense that our elected officials at the federal level have yet to take any meaningful action,” NORML’s Executive Director Erik Altieri said in a public statement. “Voters of every age and in virtually every region of the country agree that marijuana should be legal. It is well past time that Congress finally takes action to reform our nation’s laws to reflect the people’s will and relegate our disastrous prohibition policies to the trash bin of history.”
The Gallup Poll comes at a time when 21 states have legalized adult-use cannabis following Maryland and Missouri voters passing ballot measures earlier this month.
NEW YORK, Nov. 17, 2022 – PRESS RELEASE – Ascend Wellness Holdings Inc. (AWH), a multistate, vertically integrated cannabis operator focused on better living through cannabis, announced that Ascend Fort Lee, located at 461 West St., in New Jersey will begin selling adult-use cannabis beginning Nov. 17.
Strategically situated near New York City in a densely populated area of northern New Jersey, Ascend Fort Lee is the company’s flagship location in the state. Ascend Fort Lee is the company's third dispensary to open for adult-use sales in New Jersey following the Rochelle Park and Montclair locations earlier this year. The location features 45 parking spots and over 4,000 square feet of retail space. Ascend Fort Lee will open for adult use on an appointment-only basis, which can be made at letsascend.com.
As with other Ascend locations that sell both recreational and medical cannabis, medical patients at the Fort Lee location can enjoy special services to accommodate their needs amid heightened customer demand. Patient services include a dedicated medical express lane, direct access to the front entrance, private consultation rooms, designated parking spots and medical cannabis shopping hours.
"We are thrilled to open our doors to a wider audience as we commence adult-use sales at Ascend Fort Lee," said Frank Perullo, interim co-CEO, president, and co-founder of Ascend Wellness Holdings. "Ascend Fort Lee is a uniquely positioned flagship location, only a 9-iron away from the George Washington Bridge, which will greet existing medical patients and incoming recreational consumers with exceptional product and service."
]]>A standalone cannabis bill is heading to the U.S. president’s desk.
That’s right: The U.S. Congress passed the bipartisan Medical Marijuana Cannabidiol Research Expansion Act with the Senate’s voice vote Nov. 16 after the House passed the bill via a 325-95 vote in July.
The Senate passed H.R. 8454 (Medical Marijuana and Cannabidiol Research Expansion Act) by voice vote.
— Senate Periodicals (@SenatePPG) November 16, 2022RELATED: US House Passes Cannabis Research Bill
Pending President Biden’s signature, the legislation will be the first piece of standalone federal cannabis reform enacted since the Controlled Substances Act of 1971 notoriously designated a plant as a Schedule I drug, according to U.S. Rep. Earl Blumenauer, D-Ore., who sponsored the research bill with Andy Harris, R-Md., in the lower chamber.
“After working on the issue of cannabis reform for decades, finally the dam is starting to break,” Blumenauer said in a press release Wednesday. “The passage of my Medical Marijuana and Cannabidiol Research Expansion Act in the House and Senate represents a historic breakthrough in addressing the federal government’s failed and misguided prohibition of cannabis.”
“Mr. chairman, just briefly before I answer the congresswoman’s question—words matter—and while I’m on record, I just would like to say to you directly, and your committee members, that putting cannabis and slavery in the same category is patently offensive and flagrant. So, I wanted to state that.” – Birmingham, Ala., Mayor Randall Woodfin
The U.S. House’s Civil Rights and Civil Liberties Subcommittee on Nov. 15 hosted a rare opportunity in the political and cannabis reform realms: a bipartisan congressional hearing calling for an end to federal prohibition.
With subcommittee Chair Jamie Raskin, D-Md., and Ranking Member Nancy Mace, R-S.C., working across the aisle for a common cause—to reverse course from a plant’s listing on the Controlled Substances Act for more than half a century—the legislative body welcomed seven expert witnesses to help shed light on the effects of criminalization, incarceration and discrimination, among other consequences of the federal government’s refusal to recognize the medicinal values and recreational purposes of cannabis.
“Descheduling is necessary in order to close the growing and untenable divide between state and federal cannabis laws,” said Paul Armentano, executive director at NORML, one of the witnesses who has worked professionally on cannabis policy reform for nearly 30 years.
Various subcommittee members used their time to ask the witnesses about myriad issues in state-legal markets, such as barriers to entry, why equity provisions are important, why banks are reluctant to take on cannabis clients, how veterans currently get their cannabis, packaging and marketing standards, and so on, and how conflicting federal law has fallen behind.
The Colorado Department of Agriculture (CDA) is currently seeking nominations for an Agriculture Worker member on its 15-person Pesticide Advisory Committee (PAC), which is tasked with advising the department in developing pesticide regulations.
The state’s Pesticide Act and Pesticide Applicators’ Act authorize the State Agricultural Commission to appoint members to the advisory committee, which is currently made up of the following members:
Tina Booton, representing registered public applicatorsJuan Navarro, representing registered public applicatorsRand Merchant, representing pesticide formulatorsLisa Blecker, representing Colorado State University, PSEPDavid Warsh, representing the general publicKent Carlson, representing the Colorado Department of Public Health & Environment (CDPHE)Kristina R. Williams, representing the state/national Beekeeper AssociationWilliam Woodhouse, representing commercial applicators, structuralTerry Moreland, representing commercial applicators, agriculturalJennifer Grimes, representing commercial applicators, turf and ornamentalJoyce Marie Van Horn, representing qualified supervisory - registered limited commercial applicatorsDuncan Cameron, representing the general public - urban agriculturalPAC members must serve three-year terms from the date of appointment, according to a news release, and they must attend quarterly meetings and assist the commissioner in the promulgation of rules.
The CDA maintains a list of approved pesticides that can be used on cannabis under the state’s Pesticide Applicators’ Act.
RELATED: How Colorado Maintains Its List of Approved Pesticides for Cannabis Crops
A medical and adult-use cannabis dispensary in Flint, Mich., was shut down by state regulators Nov. 15 for allegedly selling untagged products with unacceptable levels of a banned pesticide, heavy metal, mold and/or bacteria.
Cannabis Regulatory Agency (CRA) officials issued formal complaints and summarily suspended the medical and adult-use licenses for GC Flint LLC, which does business as Green Culture. A “prompt post-suspension hearing” must be held to determine whether the suspensions should remain in effect, according to CRA.
In addition, CRA officials issued a health and safety bulletin Nov. 15 to alert consumers to the allegedly unregulated and contaminated cannabis products sold by Green Culture between Feb. 10 and Sept. 30, including prerolls labeled as “MoonRock blunt” that did not have identifying Metrc (statewide seed-to-sale tracking system) tags.
“This conduct is a risk to public health and safety and is completely unacceptable,” CRA Acting Executive Director Brian Hanna said in a news release. “Today we issued a suspension of their licenses, and it is my intention to pursue revocation of these licenses. Other marijuana licensees should take note—we will not stop investigating until we clear the regulated market of this type of activity.”
The disciplinary action comes after CRA officials received an Aug. 27 complaint alleging Green Culture sold caregiver product that did not have test results or Metrc tagging.
During a Sept. 28 visit, the Green Culture team told CRA investigators that the MoonRock preroll products in question were 100% hemp-extracted CBD containing less than 0.3% THC, according to the CRA release. Investigators also observed packages of flower and “several other” ACF Labs products without Metrc tags on the sales floor during the visit, according to CRA.
Tallahassee, FL – November 16, 2022 – PRESS RELEASE – Insa, Inc., an independent, Massachusetts-based medical and adult-use cannabis company, has announced its third medical cannabis dispensary in the Florida market. Following the store opening schedule announced in late summer, Insa is adding the new, state of the art, medical dispensary in Tallahassee, Fla.
Committed to offering the broadest selection of crafted, premium cannabis products, Insa is uncompromising about the quality of its products and dedicated to best-in-the-industry staff training. Insa first entered the Florida market with the Tampa location. Shortly after, Clearwater followed and now Tallahassee – all part of the company’s plan to open ten stores in Florida by early 2023. Insa’s newest locations at 640 W Tennessee St. in Tallahassee and 28540 US-19 in Clearwater, welcome Florida medical cannabis patients to further their education about cannabis and help them have better days more often. All locations are open to patients from 8 a.m. to 9 p.m. seven days a week.
“We are thrilled to announce the openings of our Tallahassee and Clearwater locations; we look forward to continuing to bring the highest quality flower and cannabis products to medical patients in Florida,” said Pete Gallagher, Insa co-founder and CEO. “Our team is intent on leading the cannabis industry by advancing all aspects of the patient experience using cutting-edge science and technology to develop innovative new products. Cannabis has become a competitive industry and we’re determined to compete with any large corporate cannabis producer.”
In celebration of the Tallahassee and Clearwater store openings, both locations will be hosting grand opening events where patients can experience the stores, have an opportunity to learn about the Insa brand, its commitment to the craft and quality of its flower and products, and its focus on customer service. The Tallahassee Grand Opening Event will take place on Friday, Nov.18 and the Clearwater Grand Opening Event will take place on Saturday, Nov. 19 – both from 11:00 a.m. – 3 p.m.
"Insa’s unique approach to educating and providing a tailored experience for every customer is what sets us apart from any other dispensary,” said Sara Sullivan, Director of Retail Development & Experience. “Shopping at a dispensary can feel intimidating, no matter the level of cannabis experience. Insa associates take pride in forming relationships with customers and are focused on providing an educational and welcoming in-store experience that is easy for patients to navigate, explore and learn.
Kentucky Gov. Andy Beshear signed two executive orders Nov. 15: one to allow Kentuckians who meet specific requirements to possess and consume small amounts of legally purchased cannabis to treat qualifying medical conditions and another to regulate the sale of delta-8 THC.
“The executive orders come after Gov. Beshear formed the Team Kentucky Medical Cannabis Advisory Committee in June to travel the state and listen to Kentuckians’ views on the topic after the state legislature failed to pass legislation earlier this year,” according to a press release.
The committee found that 90% of Kentucky adults support legalizing medical cannabis.
“Our committee met good people all across the commonwealth who are suffering from terrible chronic conditions that are relieved by medical cannabis,” said Kerry Harvey, co-chair of the committee and secretary of the Justice and Public Safety Cabinet. “This is real-world experience, not conjecture. The Governor’s action will improve the quality of life for these Kentuckians, but more should be done in the coming legislative session.”
Beshear also signed the executive order to help the opioid epidemic within Kentucky.
“For more than two decades, the opioid epidemic has plagued the Commonwealth of Kentucky, wreaking havoc on Kentuckians and their families. The epidemic arose in part from Kentuckians suffering from chronic pain turning to highly addictive opioids, from opioid medications to fentanyl, methamphetamine and heroin,” Beshear wrote in the executive order.
FORT LAUDERDALE, Florida., Nov. 16, 2022 - PRESS RELEASE - Green Sentry Holdings, LLC., a Florida-based private cannabis operator, announced that it has rebranded three of its retail locations across Florida as Sunburn Cannabis (Sunburn), where it will exclusively offer Sunburn products.
Sunburn is a premium cannabis brand and retail experience authentically grounded in Florida's distinct cannabis culture and brings an unyielding commitment to growing and selling only the highest quality cannabis flower, concentrates, edibles and related products. Starting Nov. 16, the company's first three rebranded locations in Fort Lauderdale, West Palm Beach and Jacksonville Beach will offer Sunburn products, including an initial eight new strains of hand-trimmed flower, edible gummies, solventless rosin, broad-spectrum cannabis-derived terpene vapes and pre-rolls. In addition to the initial three stores, the company's Tallahassee location will be opening as Sunburn on Nov. 25, and the Sarasota location is expected to open on or before Dec. 15. Green Sentry's eight additional retail locations are expected to open as Sunburn stores before the end of Q2 2023. Dispensary openings remain subject to the receipt of all required governmental approvals from the Florida Office of Medical Marijuana Use.
Sunburn Cannabis was created by the teams that built and sold Bluma Wellness and One Plant Florida. After bringing premium flower and concentrates to Florida in 2018, the team has reunited with Sunburn, and plans to harness its collective experience to continue providing Floridians with the most high-quality premium cannabis. In response to the arrival of significant California operators in the Florida market, Sunburn celebrates Florida's distinct cannabis culture and history.
"I'm thrilled to launch Sunburn and re-introduce my family's passion for, and knowledge of the plant to cannabis patients and consumers in Florida," said Brady Cobb, CEO and founder of Sunburn Cannabis. "Sunburn is a brand for Floridians by Floridians, and we've proven that a Florida-centric company can produce top-tier quality flower and concentrates. Now, we're excited to offer Sunburn's premium products paired with our authentic Sunburn retail experience to consumers across the state at several of Florida's elite retail locations.
"Our team's commitment starts and ends with our farm. During cultivation, we focus on ensuring that each strain we curate brings out the truest expression of each plant. Passion for cannabis and an unrelenting desire to cultivate and dispense the highest quality product runs deep in our team. We embrace all of cannabis' unique history and are committed to honoring and celebrating the plant along with Florida's culture."
To celebrate the launch of Sunburn, grand opening events will be held at Sunburn retail locations across Florida starting Nov. 17 and continue through Nov. 26. The company will also host and facilitate various after-parties:
APOPKA, Florida, Nov. 16, 2022 - PRESS RELEASE - Building off the momentum from opening its first Jacksonville dispensary in mid-October, Sanctuary Medicinals is pleased to announce the opening of its second Jacksonville location in the Murray Hill neighborhood. Continuing the company's push northward as the second Sanctuary dispensary in Duval County, the opening brings the statewide total to 15 locations.
Located on Edgewood Ave S between I-10 and Highway 17, the second Sanctuary Jacksonville location will host its grand opening celebration on Nov. 16. The location will be keeping its usual hours of operation from 9 a.m. to 8 p.m. All registered and first-time patients will be eligible for a 50% discount, and Sanctuary will provide food and entertainment at various points throughout the day.
"Sanctuary is excited about our rapid growth plans across the state of Florida," said Jason Sidman, CEO of Sanctuary Medicinals. "We are looking forward to expanding into new areas and helping as many patients as we can in the near future."
Sanctuary Jacksonville - Edgewood sits just to the west of the St. Johns River and in the center of Murray Hill. As the number of certified medical cardholders continues to rise steadily, so too do Sanctuary's menu offerings, headlined by crafted concentrates and live-cured strains of flower.
"We are excited to be shifting expansion into different areas of the state while our product offerings continue to grow," said Bill Dewar, Sanctuary Medicinals chief operating officer. "Duval County is a vibrant, large community, and we're eager to continue getting to know the area's patients and, in turn, introduce them to our outstanding range of medical cannabis offerings."
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During witness testimony during a U.S. House hearing Nov. 15, cannabis advocates shared that a wide majority of Americans support cannabis legalization of some form.
Of U.S. adults, 60% support medical and recreational use, while 31% support medical use only and 8% believe cannabis should not be legal, according to a 2021 Pew Research Center survey. And a Gallup Poll conducted in October and released Nov. 15 shows 68% of Americans favor legalization.
These are statistics that wide swaths of the U.S. Congress have flouted when it comes to reforming cannabis laws so patients, consumers and industry members can move past a storied history of criminalization, incarceration, discrimination, banking and employment issues and more.
The U.S. House Committee on Oversight and Reform’s Subcommittee on Civil Rights and Civil Liberties held the hearing Nov. 15 titled, “Developments in State Cannabis Laws and Bipartisan Cannabis Reforms at the Federal Level.”
Witness testimonies came from Amber Littlejohn, senior policy adviser for the Global Alliance for Cannabis Commerce (GACC); Randall Woodfin, mayor of Birmingham, Ala.; Paul Armentano, deputy director of the National Organization for the Reform of Marijuana Laws (NORML); Andrew Freedman, executive director of the Coalition for Cannabis Policy, Education, and Regulation (CPEAR); Eric Goepel, founder and CEO of the Veterans Cannabis Coalition; Keeda Haynes, senior legal adviser at Free Hearts; and Jillian Snider, policy director of criminal justice and civil liberties at the R Street Institute.
Following the passage of Amendment 3 in Missouri, which legalized adult-use cannabis in the state, one university is already adding specialized programs in cannabis.
The university is offering four six-month non-credit programs at $2,950 each: Cannabis Healthcare and Medicine; Compliance & Risk Management; The Business of Cannabis; and Cannabis Agriculture and Horticulture. Students will receive a certificate upon course completion.
Jay Johnson, Northwest associate provost, told KQTV 2 that the goal of the programs is to educate students about the industry, support cannabis career pathways and meet industry needs.
“If this is going to be legal—and now it’s going to be legal recreationally—we really need to have people out there that are serious about the profession,” Johnson said. “I was a little hesitant that Northwest would want to do something like this, just because it is such a new thing, and in a field that’s, you know, been illegal for years.”
According to the news outlet, the university is also partnering with cannabis training platform Green Flower.
“Having that opportunity for people in Missouri to go to Northwest Missouri State and take a program that’s really going to prepare them for a career is really perfect timing and a perfect complement to what’s happening,” said Daniel Kalef, Green Flower vice president of higher education.
]]>PRESS RELEASE -- With its regenerative farm in California and licensing deals in Oklahoma, Massachusetts and now Michigan, Stone Road plans to continue its expansion into other legal markets.
Stone Road, a California-based line of premium, sustainably-grown cannabis products, has announced a partnership with Gamut Cannabis to bring Stone Road’s line of products to Michigan in early 2023. This marks the rapidly-growing brand’s fourth market launch, as it continues to expand into legal states across the U.S.
RELATED: How Stone Road Farms’ Lex Corwin and Blake Kelley Work: Cannabis Workspace
A California favorite, Stone Road was founded by NYC native, Lex Corwin, in 2016 at the age of 23 and is a queer-led, family run cannabis brand that is focused on harvesting and distributing the highest quality yet affordable cannabis products. The brand is known for offering its customers access to a lifestyle inspired by the organic farming practices and natural beauty of its California-based farm. Michigan-based Gamut Cannabis works with established brands from California and Colorado as the go-to supply-chain partner for the rapidly expanding Michigan market.
"As we continue to expand Stone Road across the U.S we seek out partners who share in our belief of quality over everything. Brian, RJ, and the rest of the Gamut team share in our commitment to high-quality and affordable products and we can't wait to bring our 100% natural products to consumers all across Michigan,” said Stone Road founder and CEO Lex Corwin.
Stone Road, an established and avant-garde cannabis brand that is currently in three other legal markets, grows small-batch, craft flower using the most sustainable cultivation methods possible. Utilizing only solar power and regenerative water practices at its Northern California farm, the brand has partnered with other family-owned cultivators who adhere to the same stringent sustainability practices to bring Stone Road prerolls to the Michigan market.
Arkansas is on track to set a new medical cannabis sales record this year.
The state’s dispensaries sold $23.4 million worth of products in October, according to a local KARK report, which also noted that October’s sales numbers lagged behind September’s $23.9 million in sales but fell in line with the state’s usual $23 million-plus in monthly sales.
RELATED: Arkansas Medical Cannabis Sales Hit $200 Million This Year
Arkansas has 90,148 patients enrolled in its medical cannabis program, KARK reported. Patients purchased 4,558 pounds of medical cannabis last month, according to the news outlet.
“Through the first ten months of 2022, patients have spent $228.4 million to obtain 41,188 pounds of medical marijuana,” Scott Hardin, a spokesperson for the Arkansas Department of Finance and Administration, told KARK. “State tax collection on medical marijuana was $2.77 million in October, bringing the total for the year to $26.75 million. Since the state’s medical marijuana industry launched in 2019, the largest year for sales was 2021 at $264.9 million. Sales for 2022 should ultimately reach $275 million if sales remain consistent in November and December."
Kentucky Gov. Andy Beshear is expected to provide an update on medical cannabis at 1 p.m. CT Nov. 15 at the Kentucky State Capitol.
Justice and Public Safety Cabinet Secretary Kerry Harvey, Public Protection Cabinet Secretary Ray Perry, addiction specialist Linda McClain, Ph.D., and veteran and advocate Jared Bonvell will join Beshear for the announcement, WPSD reported.
Medical cannabis is not legal in Kentucky but has received broad support from the public and Beshear.
In September, Beshear released feedback from the state’s Medical Cannabis Advisory Committee after the group traveled the state to gather Kentuckians’ views on medical cannabis legalization. The polling showed Kentuckians overwhelmingly support the issue, with 90% in favor, Cannabis Business Times reported.
Moreover, in March, the Kentucky House approved legislation to legalize medical cannabis by a 59-34 vote, but the measure stalled in the Senate for the third year.
Beshear also signed legislation in April to allow the University of Kentucky to have a cannabis research center.
]]>Following the announcement of a Nov. 15 U.S. Congressional hearing titled “Developments in State Cannabis Laws and Bipartisan Cannabis Reforms at the Federal Level,” a U.S. House subcommittee has issued a joint memorandum on cannabis.
The memo, from the U.S. House Committee on Oversight and Reform’s Subcommittee on Civil Rights and Civil Liberties, proposes decriminalization, various policy reforms, and the removal of cannabis from the Controlled Substances Act.
Positions on Decriminalization
The report states there are multiple benefits to federal cannabis decriminalization.
Drawing from the American Civil Liberties Union’s 2020 report, “A Tale of Two Countries: Racially Targeted Arrests in the Era of Marijuana Reform,” the memo states that Black people are nearly four times more likely to be arrested for cannabis possession than white people, despite similar consumption rates between Black and white people.
“In many states, marijuana arrests can have life-altering consequences—parents may lose their children in court proceedings, disabled and low-income recipients of public assistance may lose healthcare, immigrants can face deportation, families can be evicted from public housing, and finding a job can be difficult or outright impossible in some cases. Black and Brown people disproportionately face these repercussions,” the memo shares.
CHICAGO, Nov. 14, 2022 – PRESS RELEASE – Verano Holdings Corp., a leading multistate cannabis company, announced its financial results for the third quarter ended Sept. 30, 2022 (Q3 2022), which were prepared in accordance with U.S. Generally Accepted Accounting Principles (GAAP). Comparable numbers for the third quarter ended Sept. 30, 2021, were also prepared in accordance with U.S. GAAP.
2022 Third Quarter Financial Highlights
Q3 2022 revenue increased 2% versus the prior quarter and 10% year-over-year to $228 million.Revenue growth versus the year-ago period was driven by strength from adult-use sales in New Jersey.Q3 2022 gross profit was $123 million or 54% of revenue, compared to $98 million or 44% of revenue in the prior quarter, and $98 million or 48% of revenue in the third quarter 2021.Gross profit growth versus the year-ago period was driven by top-line growth and a lower comparative impact related to the inventory step-up from acquisitions.Q3 2022 SG&A was $86 million or 38% of revenue, compared to $100 million or 45% of revenue in the prior quarter, and $76 million or 37% of revenue in the third quarter 2021.SG&A growth versus the year-ago period was primarily driven by an increase in retail locations.Q3 2022 net loss was $(43) million, compared to a loss of $(10) million in the prior quarter, and $(13) million in the year-ago period.Adjusted EBITDA was $82 million or 36% of revenue, compared to Adjusted EBITDA of $76 million or 34% of revenue in the prior quarter.Cash flow from operations for the nine months ended Sept. 30, 2022, was $65 million.2022 Third Quarter Operational Highlights
Furthered Florida retail expansion by opening 11 new MÜV dispensaries across the state throughout the quarter.Opened new Zen Leaf dispensaries in Wheeling and Clarksburg, W.Va., and New Kensington, Pa.; relocated Zen Leaf Jessup to Elkridge in Maryland to optimized location and retail space; maximized New Jersey footprint with the commencement of adult-use sales at Zen Leaf Neptune on the Jersey Shore.Launched Verano signature flower branded products in four new core markets—Arizona, Florida, Massachusetts and Pennsylvania; Verano signature flower branded products are now distributed to more than 500 dispensaries across nine states, including more than 100 of the company’s retail locations.Introduced Savvy, a new flower and extract brand featuring larger-format cannabis products that caters to more value-oriented patients and consumers, across seven core markets.Inked licensing agreement with Mike Tyson's Tyson 2.0 cannabis company to launch legendary wrestler Ric Flair's new cannabis line, Ric Flair Drip Cannabis, across 11 markets.Welcomed Lawrence Hirsh as a new member of the board of directors and chair of the Audit Committee.Completed acquisition of Sierra Well, bolstering Nevada footprint with addition of two operating dispensaries and an active cultivation facility.Initiated second annual Breast Cancer Awareness Month donation effort benefiting the Lynn Sage Breast Cancer Foundation.Subsequent Operational Highlights
Refinanced $350-million credit facility with enhanced flexibility to reduce capital costs.Opened two new MÜV dispensary locations in Panama City Beach and Port Orange, Florida, raising the company's Florida retail footprint to 61 locations.Launched BITS, a new brand and product line consisting of five unique flavors of low-dose, high-function edibles that blend THC, cannabinoids and adaptogens, appealing to cannabis enthusiasts of all experience levels.Active operations span 13 states, comprised of 119 dispensaries and 14 cultivation and processing facilities with more than 1 million square feet of cultivation capacity.Management Commentary
“I am very pleased with our performance in the third quarter and how our team demonstrated focus and adaptability in driving our business forward in an increasingly challenging environment,” Verano founder, Chairman and CEO George Archos said. “In the face of economic headwinds, industry dynamics and legislative uncertainty, we delivered revenue growth and strong Adjusted EBITDA margins, underscoring our focus on superior operations and efficiency. We significantly bolstered our growing product portfolio by scaling our signature Verano brand across core markets, introducing our value flower and extract brand Savvy, launching Ric Flair’s Ric Flair Drip Cannabis line in partnership with Tyson 2.0, and most recently, releasing a low-dose, high-function edibles line, BITS, which combine tailored adaptogens with cannabinoids and 5 mg of THC to appeal to a broad base of cannabis consumers. We also continue to see positive results in New Jersey, where we’ve further cemented our position as a market leader, evidenced by our strong retail performance and growing wholesale business. Finally, we are also pleased to have completed the refinancing of our $350 million credit facility, which gives us flexibility in our capital structure and the ability to reduce our cost of capital. I remain optimistic and confident in our business as we continue to maintain focus on driving operational quality and efficiency as we further position Verano for future growth.”
Pennsylvania State Attorney General Josh Shapiro (D) declared victory in the Pennsylvania gubernatiorial race Nov. 8, defeating State Senator Doug Mastriano (R), 56.3% to 41.9%, according to The Associated Press.
Shapiro has been outspoken about his support for adult-use cannabis legalization and righting the wrongs caused by unjust policies and the war on drugs. In March, he tweeted, “We can cut costs, legalize recreational marijuana, and raise the minimum wage in Pennsylvania. We just have to win in November.”
Now that Shapiro has won the 2022 gubernatorial race, what does this mean for the state’s cannabis industry?
RELATED: Where Candidates Stand on Cannabis in All 36 Gubernatorial Races
Former Pennsylvania Gov. Tom Wolf legalized cannabis for medical use in 2016 and has also been a longtime supporter of legalizing cannabis for adult-use, as well. He included adult-use legalization in his 2021 state budget proposal; however, the issue has failed to gain support from the General Assembly, Cannabis Business Times reported.
CBT spoke with Trent Woloveck, chief commercial director of Jushi Holdings, a multistate vertically integrated cannabis company with 18 retail locations in Pennsylvania, to discuss what Shapiro’s election means for the state’s cannabis industry and how Shapiro’s administration could help progress the industry.