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.
Edibles have gained a growing popularity in the states where THC-infused products are offered, representing a top-three cannabis market share in places like Michigan and Oregon.
In Pennsylvania, state Sen. Dan Laughlin, R-Erie, plans to introduce legislation that would legalize edibles as a product offering to the more than 400,000 patients registered in the state’s medical cannabis program, he announced April 8 in a press release.
A legalization advocate, Laughlin was the first Republican in the state Legislature to sponsor an adult-use cannabis bill, which he unveiled with Sen. Sharif Street, D-Philadelphia, in February 2021.
RELATED: Pennsylvania State Senators Team Up to Introduce Bipartisan Adult-Use Cannabis Legislation
Laughlin said his new legislation will help ensure Pennsylvanians have as many options as possible to find relief from their medical conditions.
“Pennsylvania’s patients should be able to buy edible medical cannabis that is safe, uniform and securely packaged and labeled, just as they do in 25 other states that have legalized medical cannabis,” he said. “For many patients, their medical conditions require gradual relief over an extended period of time. Consuming medical cannabis in edible form is among the best ways to achieve the time-release effect that these patients need.”
Kentucky Gov. Andy Bashear is ready to consider an executive order on medical cannabis if a legalization bill fails to reach his desk this year, according to theAssociated Press.
The Democratic governor told reporters April 7 that he is “going to explore” taking action himself if medical cannabis legislation that passed the House last month fails to clear the Senate, where the bill has been struggling to gain support.
“It’s something that we will look at,” Bashear said, according to AP. “Its time has certainly come.”
Rep. Jason Nemes’ House Bill 136, which cleared the House in a 59-34 vote March 17, would allow doctors to prescribe medical cannabis to patients for six qualifying conditions.
“You see people from every part of every spectrum that are in favor of this,” Beshear said, according to AP.
Massachusetts Senate Approves Legislation Aimed at Expanding, Diversifying State’s Cannabis Industry
The Massachusetts Senate approved legislation April 7 that aims to expand and diversify the state’s cannabis industry, according to a WBUR report.
The wide-ranging bill, S. 2801, is meant to address some of the industry’s biggest woes, as identified by cannabis activists, regulators, businesses and municipalities in the state, according to the news outlet.
The legislation, which lawmakers say is an economic development and racial justice bill, would, in part, implement tighter restrictions and increased oversight on the host community agreements that cannabis businesses are required to enter into with the municipalities they operate in, WBUR reported.
The bill would also create a pathway for municipalities to authorize on-site cannabis consumption establishments that have already been authorized by the Cannabis Control Commission’s (CCC) regulations, according to the news outlet.
S. 2801 would also create a new Cannabis Social Equity Trust Fund that would provide grants and loans to participants in the CCC’s social equity program or economic empowerment priority applicants, WBUR reported.
It’s been a year since the Ohio Board of Pharmacy voted to make 73 more medical cannabis dispensary licenses available to address patient complaints about the lack of retail access and high prices.
That retail expansion is still in the works after the board received more than 1,450 applications for the new dispensaries in November and conducted a lottery-style drawing to determine which companies would receive provisional licenses.
RELATED: Ohio Receives More Than 1,400 Applications for 73 New Medical Cannabis Dispensary Licenses
The Board of Pharmacy staff is continuing to review and evaluate the winners to ensure they’re compliant with state laws and regulations, Justin Sheridan, the board’s director of Medical Marijuana Operations, said April 7 during a cannabis discussion panel at Ohio State University, Cleveland.com reported.
Adding to the current 58 dispensaries, the license expansion will bring Ohio’s total to more than 130 retail facilities in an effort by the board to increase access and decrease the number of registered patients per dispensary to below 1,200 in each of 31 districts.
As of March 24, there were 133,101 patients with both an active medical cannabis registration and an active recommendation, according to the Ohio Medical Marijuana Control Program (MMCP). That’s an average of roughly 2,300 patients per dispensary in today’s retail environment.
Maryland Gov. Larry Hogan is allowing an adult-use cannabis legalization measure to go before voters this fall.
The Republican governor let the legislation, which cleared the Legislature earlier this month, become law without his signature, according to The Washington Post.
RELATED: Maryland Voters Will Have Say in Adult-Use Cannabis Legalization
The Maryland House voted, 94-39, on April 1 to approve House Bill 1, which will place a constitutional amendment on the November 2022 ballot asking voters if they favor the legalization of cannabis use by adults 21 and older by July 1, 2023.
The General Assembly also passed companion legislation, House Bill 837, which would allow adults 21 and older to purchase and possess up to 1.5 ounces of cannabis, 12 grams of concentrate, 750 milligrams of delta-9 THC or two plants for personal use. The bill would also decriminalize the possession of up to 2.5 ounces of cannabis by classifying it as a civil offense rather than a misdemeanor.
Mississippi Gov. Tate Reeves signed the state’s medical cannabis legislation into law in February, and the Mississippi Department of Health has since set to work on drafting the regulations that will govern the program.
Officials have released their first three proposed rules, guided by the details within the state’s medical cannabis legalization bill, according to a local WLBT report.
The rules, which are now available for public review and comment, outline specific guidelines for testing facilities on monitoring THC levels and detecting potential contaminants, the news outlet reported.
Regulators have also proposed advertising and marketing restrictions that will prohibit medical cannabis companies from advertising on television and billboards, WLBT reported.
A third proposal would outline work requirements for cannabis employees, such as requiring that workers are at least 21 years old with no felonies on their criminal records, according to the news outlet.
The California State Senate confirmed Nicole Elliott as Director of the Department of Cannabis Control (DCC) by a unanimous 34-0 vote.
Elliott was formally confirmed in a Senate Rules Committee hearing on March 30. She was appointed by California Governor Gavin Newsom on July 13, 2021, as the DCC’s first director.
RELATED: Gov. Newsom Calls For Cannabis Tax Reform, More Retail in Budget Proposal
According to a release from the DCC, Elliott has led cannabis policy development and implementation across California state and local government levels since 2017, just ahead of adult-use cannabis sales beginning in the state in 2018.
“From day one, Director Elliott hit the ground running, responsibly leading the newly created Department of Cannabis Control, building a strong organizational culture and team, and creating meaningful stakeholder engagement opportunities,” said Lourdes Castro Ramirez, secretary for California’s Business, Consumer Services and Housing Agency. “With Director Elliott at the helm, California will continue to be a national leader, forging new pathways for innovation and strengthening cannabis regulation.”
]]>Editor’s Note: Texas Original Compassionate Cultivation and CEO Morris Denton are featured on the April 2022 cover of Cannabis Business Times. Read the story about the company’s expansion plans in the state’s medical market here. More details about how Texas Original approaches cultivation in a state that does not allow flower are below.
The Texas government hasn’t given cannabis patients the green light to purchase or consume cannabis flower or concentrates, but the medicine produced by vertically integrated companies in the state is quite literally rooted in the plant and the practices of those who are growing it.
Every day, members of the cultivation team at Texas Original Compassionate Cultivation state three things they’re grateful for that they can dedicate their work to, and they write daily quotes on a board, says Jason Sanders, the company’s director of cultivation.
The quotes are sometimes well-known quotes and other times original quotes from within the Texas Original team. One of the cultivation technicians, Marco Gutierrez, once wrote on the board, “Cultivation is the Growth and Cult of Creation.” Sanders says a Hunter S. Thompson quote has also appeared on the board: “When the going gets weird, the weird turn pro.”
The team believes that having that positive approach carries through to the final product, Sanders says.
This mindset is an element of Texas Original’s broader cultivation procedures and will continue to be once the business moves from its roughly 7,200-square-feet vertically integrated facility with indoor grow spaces to a much larger 92,000-square-foot facility with greenhouse production and some indoor grow rooms. The move, from Manchaca, Texas, southwest of Austin, to Bastrop, southeast of Austin, will take place either late in the third quarter or early in the fourth quarter of 2022.
By now, the story of Charlotte Figi has been heard around the world.
The namesake for the company Charlotte’s Web, Charlotte was the first person to experience life-changing treatment for her seizures from CBD made by the Stanley brothers in 2012.
Perhaps lesser known are the stories of the other families who have been helped by Charlotte’s Web, like Heather Jackson and her son, Zaki, who were the second people to find success for seizures through CBD.
“Even though it was 10 years ago, I remember it like it was yesterday,” Jackson says about the day she first gave CBD to her son, who, like Charlotte, has a rare form of epilepsy.
Zaki had been having frequent, severe seizures every night when he took his first dose of Charlotte’s Web CBD in a makeshift bed in hospice care, Jackson says.
“He didn’t have a seizure that night. It was the first night in almost a decade,” Jackson says. Zaki, who was not expected to see adulthood, will turn 19 this year.
The Arizona Department of Health Services (ADHS) awarded the state’s 26 highly sought-after social equity cannabis licenses April 8 marking the beginning of each licensee’s journey to opening an adult-use dispensary, and, if they so choose cultivation and processing operations.
It’s been a long road for these social equity licensees, but perhaps an even longer road lies ahead as they work to launch their businesses.
Arizona voters approved adult-use cannabis legalization in the November 2020 election, and that measure, Proposition 207, allowed the state’s existing medical cannabis operators to seek licenses in the adult-use market starting in January 2021.
RELATED: Arizona Cannabis Retailers Reflect on First Week of Adult-Use Sales
Prop. 207 also created 12 new adult-use dispensary licenses in rural counties that have one or no medical cannabis retailers, as well as the 26 social equity licenses reserved for applicants impacted by the war on drugs.
Cleveland residents with certain cannabis possession convictions may soon have their records expunged. They would no longer have criminals record for the convictions, and would not have to report them on employment applications, according to News 5 Cleveland.
On April 6, Cleveland Mayor Justin Bibb, Chief Prosecutor Aqueelah Jordan, and Council President Blaine Griffin signed a motion calling for the expungement of more than 4,000 cannabis convictions, according to Cleveland news media.
“We are seeing progress in Washington on this issue, but it’s slow. There are immediate steps we can take right now in Cleveland to clear the names of over 4,000 residents who deserve a fresh start,” Bibb said in a statement. “This is just one way we can make progress on criminal justice reform to balance the scales and remove barriers to employment and re-entry.”
Cleveland Municipal Court Presiding Judge Michelle D. Early and the other judges of the court must sign to expunge the minor misdemeanor cases, according to News 5. The cases, dating back to 2017, are for possession of 200 grams or less.
In 2020, Cleveland City Council passed legislation to reduce misdemeanor possession penalties to include no prison time or fines. Since that legislation passed, 455 people were mistakenly charged, per the prosecutor’s office.
"This is a great day," Griffin said, according to the Cleveland Scene. "It has always been our intent to take the logical next step, after we decriminalized marijuana and made it zero jail time, to seal these misdemeanor cases in Cleveland. This is a natural progression of what we've been working on, and I'm happy that all of council can stand with the mayor today."
]]>Pennsylvania Sens. Judy Schwank and Sharif Street announced April 6 that they will soon introduce legislation that would ban the sale of delta-8 THC products.
In co-sponsor memorandum, they noted the lack of regulation surrounding delta-8 is problematic, as these products are sold at neighborhood gas stations and corner stores.
“What we are seeing right now is a completely unregulated market for these products, and they are becoming more popular with each passing day,” Schwank said. “I’m particularly concerned about underage teens using these products because we have no clue how they are manufactured. I’ve already heard about high school-age children in my district getting sick after using delta-8 THC, so they are finding ways to access it.”
She also noted that these products come in flavors that may be appealing to teenagers, the PA Senate reported.
Street also noted that consumers need to be aware of products they are purchasing that can cause ‘psychotropic effects,’ adding that it’s the government’s responsibility “to ensure safety and consumer protection.”
“This legislation fixes this problem and reminds us of the importance of a well-regulated and secure market for cannabis,” he says.
]]>BOCA RATON, Florida, April 8, 2022 - PRESS RELEASE - Jushi Holdings Inc., a vertically integrated, multi-state cannabis operator, announced that it has closed its previously announced agreement to acquire NuLeaf, Inc., a Nevada-based vertically integrated operator, for $53.6 million. NuLeaf operates two adult-use and medical retail dispensaries in Las Vegas and Lake Tahoe, in addition to a 27,000 square foot cultivation facility in Sparks and a 13,000 square foot processing facility in Reno. NuLeaf also owns a third licensed retail dispensary located directly on Las Vegas Boulevard, which is expected to become operational in Q2 2022, subject to regulatory approval and other conditions.
RELATED: Jushi Closes Acquisition of Apothecarium Dispensary in Las Vegas
The acquisition of NuLeaf, along with the recently closed Apothecarium Nevada acquisition, expands Jushi's retail footprint to four dispensaries in the Nevada cannabis market, three of which are located in the Las Vegas area. In addition, NuLeaf's facilities strengthen Jushi's cultivation and processing capabilities in the state, providing a strategic opportunity to expand Jushi's ability to supply its best-in-class suite of branded products across its newly acquired Nevada stores and into the wholesale market.
"We are excited to announce the closing of our third acquisition in Nevada, a milestone accomplishment for our team," said Jim Cacioppo, Jushi CEO, chairman, and founder. "The acquisition of NuLeaf sets the tone for our growth plans in the state as we continue to scale and strengthen our operations in this limited license market. With our newly established vertically integrated footprint in the state, we look to gain market share of our brands and further capitalize on the significant opportunity in this market, aided by NuLeaf's premier retail, cultivation and manufacturing assets. We look forward to the immediate revenue and EBITDA contribution this acquisition will bring as we fully integrate NuLeaf into our business."
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New Zealand’s government is providing a $13-million grant to Puro, one of the country’s largest organic medical cannabis cultivators, to help accelerate the nascent industry.
The funding will help Puro develop production systems, support skills and training, explore contract growing and identify pathways to market, according to a company press release.
Puro Managing Director Tim Aldridge said in the release that “the grant is a gamechanger that will provide New Zealand patients with greater access to locally grown and manufactured medicine and pave the way for international export success.”
“Being one of New Zealand’s first medicinal cannabis companies has meant we’ve had to overcome some major challenges—it hasn’t been easy,” Aldridge said. “This program will see us create an organic production handbook that will be invaluable for Puro and our industry. The grant will also support Puro in developing post-harvesting processing technology and build the IP required to produce premium organic cannabis flower to meet increasing domestic and global demand.”
Puro was founded in 2018 and harvested its first medical cannabis crop last year, according to a government press release.
Montana’s adult-use cannabis sales neared $16 million for the month of March, the highest month of sales since they launched in January.
The state’s retailers sold $14,141,896.98 worth of adult-use cannabis products in January, $13,533,697.08 in February and $15,861,516.86 in March, according to data from the Montana Department of Revenue.
Montana has raked in an estimated $8,707,422.18 in tax revenue from adult-use sales to date.
A bill to legalize medical cannabis is headed to the South Carolina House floor after receiving committee approval April 7.
The House Medical, Military, Public and Municipal Affairs Committee, known as the 3M Committee, made minor changes to S. 150, the SC Compassionate Care Act, before advancing it in a 16-3 vote, according to The Herald Sun.
The legislation, sponsored by Sen. Tom Davis, R-Beaufort County, would allow patients with one of 12 qualifying conditions to access a two-week supply of medical cannabis in the form of oils, vaporizers, salves, topicals and patches with a recommendation from their doctor.
The South Carolina Senate passed the bill in early February after three weeks of debate, advancing it to the 3M committee, which has since held a hearing and heard hours of public testimony on the legislation.
The 3M Committee’s approval Thursday marks the farthest a medical cannabis legalization proposal has come during the eight years supporters have been pushing for policy reform, The Herald Sun reported.
The desire for cannabis consumption lounges in legal cannabis markets is rising.
For example, some Michigan cities are moving toward the consumption lounge trend. In Lansing, city officials recently granted conditional approvals for four businesses to open consumption lounges—many of which could come online this year.
And one of the state's first licensed cannabis consumption lounges, Hot Box Social, opened in Hazel Park about two weeks ago.
So, what do these consumption lounges look like? Cannabis Business Times caught up with Nowfal Akash, the chief information officer at Troy-based Trucenta, a vertically integrated cannabis business, which owns and operates Hot Box Social, to get the inside scoop.
Located at 23619 John R. Road in Hazel Park, Mich. (just outside Detroit), Hot Box Social hosts private events such as fundraisers and product launches where vendors can come in, rent the space, and invite people to try their cannabis products on-site, Akash tells Cannabis Business Times.
The venue has already hosted two fundraising events: one for a Warren councilwoman and another for a Hazel Park councilman, Akash says, adding that one was running for state representative, while the other was running for Congress.
As high taxes and plummeting wholesale prices threaten California’s licensed cannabis industry, cultivators must maximize efficiency and keep costs low to weather the storm.
Adelanto-based Yellow Dream Farm is doing just that using LED lighting, vertical farming and water recirculation.
The family-owned cultivation operation, located in Southern California near the Victor Valley area of the Mojave Desert, grows boutique-quality cannabis at scale with the goal of bringing luxury products to market at an affordable cost, a goal that CEO Jeffrey Garber hopes to achieve through efficient grow practices, despite California’s volatile market.
“From a legislation standpoint, there are definitely a variety of challenges that we’re facing,” he tells Cannabis Business Times. “There’s been a plea for tax reductions in the state and somehow that plea turned into raising taxes. The market is saturated with flower, and everyone agrees that this is probably one of the lowest prices per pound that California has ever seen. This goes back to the state issuing more cultivation licenses than the retailers can support, which drives the prices of product down, obviously, based on supply and demand.”
RELATED: California’s Cannabis Market: ‘A Recipe for Disaster’
It's no secret that cannabis dispensaries are cash-run operations, making them an attractive target for criminals.
And in recent months, there has seemingly been an increase in crimes targeting dispensaries across the U.S. For example, in February, there were 14 reported crimes at dispensaries in Los Angeles, Cali.--the highest reported number since 2018, Xtown.la reported.
And a recent crime at a Washington dispensary turned fatal when a male worker at the World of Weed in Tacoma was shot during an attempted robbery March 19, Cannabis Business Times reported.
RELATED: Two Teens Wanted in Fatal Washington Dispensary Shooting
"From the reporting that I've been seeing, there definitely appears to be an uptick in crime, in particular theft involving dispensaries, or at least there certainly appears to be more publicity of those that are occurring," says Michael Sampson, partner with Pittsburgh-based law firm Leech Tishman and member of the firm’s litigation practice group.
"This is a reminder to other dispensaries and others in the industry to take security and crime prevention and insurance coverage very seriously because it shows us and reminds us of the very real risks out there for the industry," he adds.
As city officials continue to weigh their options for participating in Mississippi’s forthcoming medical cannabis program, the state has struck a five-year deal with Tyler Technologies Inc. for its licensing process.
A Plano, Texas-based company, Tyler’s NIC Licensing Solution (NLS) is a government licensing platform designed specifically for the cannabis industry, according to the company’s press release announcing the deal.
That NLS platform features:
It also provides a single unified platform for all cannabis licensing needs within the state.
“We are excited to work with the Mississippi Department of Health and the Mississippi Department of Revenue to license Mississippi’s statewide medical cannabis program,” said Lee Tompkins, vice president of licensing for Tyler’s NIC Division. “Our licensing and cannabis-industry expertise, combined with our equally immense understanding of Mississippi state government, makes Tyler’s NIC team the most uniquely qualified provider for Mississippi’s cannabis licensing needs.”
Specifically, the Mississippi Department of Revenue is responsible for licensing medical cannabis dispensaries in the state. The department has until the first week of July (150 days from Gov. Tate Reeves’ signing of the Mississippi Medical Cannabis Act) to begin that licensing process.