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.
Kentucky lawmakers are projected to adjourn from their 2022 legislative session April 14 with medical cannabis legalization falling by the wayside for the third straight year.
House Bill 136, which aims to allow doctors to prescribe medical cannabis to patients for six qualifying conditions, cruised to passage, 59-34, in the House on March 17. Sponsored by Rep. Jason Nemes, an earlier version of the bill also passed the House via a 65-30 vote in 2020.
RELATED: Kentucky Medical Cannabis Reform Inches Closer With House Passage
But that same level of support has yet to be replicated in the Senate.
A week after the most recent House passage, Senate Majority Floor Leader Damon Thayer said the legislation appears to be dead for yet another session, the Lexington Herald-Leader reported.
“I have said all along I wouldn’t stand in its way if we had the votes, but we do not have the votes in the Senate,” Thayer said.
Some of the roughly 400 municipalities in New Jersey that opted out of hosting the adult-use cannabis industry ahead of an August 2021 deadline to do so have since changed their minds.
RELATED: More Than 70% of New Jersey Municipalities Ban Adult-Use Cannabis Businesses
Roughly 29% of the state’s municipalities now allow some form of adult-use business to operate within their jurisdictions after 35 towns that had previously banned all types of cannabis businesses have since approved ordinances that allow at least one type of adult-use operation to set up shop, according to an app.com report.
Twenty-two municipalities that had previously opted out of hosting any form of adult-use cannabis business now allow dispensaries, the news outlet reported, while three other towns that had initially allowed other types of businesses—but not retailers—have since passed ordinances to allow adult-use cannabis retail.
In addition, 10 municipalities that previously banned all types of adult-use cannabis operations have since decided to host other forms of cannabis businesses, but not dispensaries, app.com reported.
A bill that cleared the U.S. Senate March 24 would expand scientific and medical research on cannabis and its compounds, including CBD.
S. 253, titled the Cannabidiol and Marihuana Research Expansion Act, is sponsored by Sens. Dianne Feinstein (D-Calif.), Chuck Grassley (R-Iowa) and Brian Schatz (D-Hawaii) and cosponsored by Sens. Dick Durbin (D-Ill.), Amy Klobuchar (D-Minn.), Thom Tillis (R-N.C.), Tim Kaine (D-Va.), Joni Ernst (R-Iowa), Kevin Cramer (R-N.D.), Jon Tester (D-Mont.) and Lisa Murkowski (R-Alaska).
The bill aims “to ensure that research on CBD and other potentially beneficial marijuana-derived substances is based on sound science while simultaneously reducing the regulatory barriers associated with conducting research on marijuana,” according to an announcement from Feinstein’s office.
Because cannabis containing more than 0.3% THC remains classified as a Schedule I drug under federal law, strict regulations continue to govern medical cannabis research and few cannabis-derived products have received approval from the U.S. Food and Drug Administration (FDA).
“Current rules and regulations make it hard for researchers to study how marijuana and marijuana-derived medications can best be used to treat various conditions,” Feinstein said in a public statement. “This important legislation will cut the red tape around the research process, helping get FDA-approved, marijuana-derived medications safely to patients.”
Washington law enforcement officials issued warrants for a pair of teenagers in connection with a string of cannabis retail robberies, including one involving a fatal shooting at the World of Weed dispensary March 19 in Tacoma.
RELATED: Washington Dispensary Worker Fatally Shot During Robbery
The Tacoma Police Department identified 16-year-old and 15-year-old boys who are wanted in at least 10 armed robberies in Pierce and King counties, according to The News Tribune. As of March 26, neither teenager was in custody.
Specifically, Pierce County prosecutors charged one of the suspects with first-degree murder and second-degree unlawful possession of a firearm, according to the news outlet. The former charge is in connection to the March 19 fatal shooting of 29-year-old dispensary worker Jordan Brown, from Gig Harbor.
That was the third fatal incident involving a dispensary robbery in less than a week in the western part of the state. The other two involved the deaths of suspected robbers—one killed by police, and the other by an armed dispensary ID checker.
Prosecutors expect to file additional charges against the two teenagers for four additional dispensary robberies in Tacoma and one in Pierce County. The boys are also suspected in five robberies in King County, according to The News Tribune.
TWINSBURG, Ohio, March 28, 2022 /PRNewswire/ -- PRESS RELEASE -- The HC Companies – a North American manufacturer of horticultural containers – has seen unprecedented demand for its products over the last few growing seasons. This is a direct result of the home-gardening revival, which surged in popularity during the spring of 2020.
"From our suburban neighborhoods to urban metropolises, more and more individuals realize the countless benefits gardening provides," says Bob Mayer, president and CEO of The HC Companies. "Beyond contributing to the overall health of our planet, gardening has united families and communities, improved people's mental and physical well-being, and provided freshly grown foods full of nutrition. These benefits and more are why gardening continues to remain popular today."
As interest in home gardening continues to thrive across North America, seasonal demand for plants and products is outpacing the available supply, compounded by challenges with overburdened shipping schedules and material sourcing. While horticulture is not the only industry plagued with supply chain issues due to extraordinary consumer demand, growers often have a narrow window for cultivation and rely on containers to increase their inventory.
"Like so many other organizations, we feel it is our responsibility to our customers to invest in solutions to help improve our manufacturing, and ultimately our supply chain, to get growing containers into the hands of growers and gardeners as quickly as possible," says Mayer. "This includes not only an investment in equipment and technologies but our team members as well."
Some of the ways HC is helping the horticulture industry satisfy the increased demands of gardeners include:
Tori Cole, vice president of marketing at Cookies, knows the power of a good story. That sense of narrative connection between a brand and a customer is at the very heart of what Cookies has been building in California and across the U.S. cannabis market.
The success of a brand like Cookies, however, does not happen overnight. Nor does it happen without a willingness to listen to the marketplace.
Cole grew up in Hawaii in a traditional Japanese household. Her siblings got into the tech industry as adults, and she followed soon after—landing in the Bay Area scene and working at several companies like Intuit and Mesh Brands before cannabis called out to her.
While working as the Go-To-Market Leader at Mesh Brands, Cole met Cookies founder and CEO Berner, who was busy launching Lemonnade. A connection was forged, and Cole joined Cookies in April 2019.
RELATED: Sharing Knowledge and Empowering People In The Cannabis Industry: Q&A with Berner
“At the heart of everything we do, it's all about the quality genetics, and Berner is super actively involved,” she says. “He selects every cultivar and really sets our brand strategy. He’s even the creative director when it comes to our strain illustrations, which are like our own billboards on packaging. Everything that we do centers not only on the customer and their experience—but really on staying true to our roots.”
(Brewer, ME) March 28, 2022 – PRESS RELEASE – Cann Drying Systems, an industry leading provider of commercial-scale turnkey drying & curing systems for the cannabis and hemp industries, announced today a new distribution partnership with Omega Equipment & Supply, the leading full-service nationwide supply chain solution provider for the cannabis industry – serving cultivators, processors, manufacturers, dispensaries, distributors, and testing facilities. Omega also offers custom design build fabrication in addition to a full range of equipment and supplies for the cannabis industry. The partnership between cannabis industry leaders looks to bring a greater level of automation and efficiency to the industry’s post-harvest process.
The new partnership looks to bring Cann Systems’ CDS line of turnkey cannabis drying & curing chambers to a broader audience of cannabis operators, while adding another quality supplier to Omega’s offering as they look to greater expand their custom design build fabrication portion of their business.
“We have been seeking a partnership with an industry-specific equipment provider that shares our vision for advancing the overall efficiency of the cannabis industry,” said Ton Mathissen, CEO at Cann Drying Systems. “Omega shares the same dedication to innovation and further advancement of the industry that we do.”
“Our goal is to help our customers run their businesses more efficiently and profitably,” said Eric G. Myers, COO for Omega Equipment & Supply. “The Cann Drying Systems’ solution(s) effectively help to support this goal through automation and efficiency gains.”
The partnership between Omega Equipment & Supply and Cann Drying Systems comes as no surprise. As the cannabis industry continues to mature so does the need for process efficiencies and further automation throughout the post-harvest supply chain. With more cultivators increasing plant counts to capture greater market share, the need for scalable drying & curing solutions continues to be a challenge for operations of all sizes. This new partnership will give greater visibility and reach to the innovations Cann Systems is bringing to the industry as well as help Omega further establish themselves as the industry leading equipment supplier.
“Our equipment is designed to function at peak levels whether drying small amounts of flower for boutique cannabis operators or at scale for large MSOs,” Mathissen said. “Being able to perform consistently at scale is an industry problem we believe we’ve solved.”
The Pennsylvania Liquor Control Board has had second thoughts about allowing beer and wine licensees to sell CBD edibles.
The board announced March 23 that it would reverse a decision from last year that authorized the licensees to sell edible products containing the cannabinoid, according to the Associated Press.
Board members voted in June 2021 to allow all retail licensees, such as convenience stores, to sell edible CBD products, including gummies, non-alcoholic beverages and tinctures, in order for them to compete with a convenience store chain that had received permission to sell the items earlier that month, AP reported.
The Liquor Control Board then expanded the rule to allow beer distributors to also sell CBD edibles, according to the news outlet.
The Pennsylvania Department of Agriculture requested that the rule be reversed, AP reported, citing concerns that the sale of consumable CBD products is illegal under state law.
New Mexico will become the 13th state to launch commercial adult-use cannabis sales in the U.S. with an April 1 opening day for licensed retailers, but one operator isn’t so sure the timing it right.
Citing concerns over a possible supply shortage, Ultra Health CEO Duke Rodriguez said he anticipates challenges in meeting the state’s forthcoming demand, with those challenging lasting for perhaps as long as 18 months before market conditions stabilize, dual CBS/Fox-affiliate KRQE reported.
One of the state’s larger operators, Ultra Health has 28 medical cannabis dispensaries in New Mexico. As of Feb. 28, New Mexico had 131,931 patients actively enrolled in its medical cannabis program, according to the state’s Health Department.
“What we have today is what we’re going to serve the market with,” Rodriguez told KRQE. “Is it going to be enough to serve the complete market? The answer is no. On day one, it’s going to be a challenge, and it’s going to be a challenge for maybe as long as nine to 12, 18 months.”
The planned retail launch comes nearly a year after Gov. Michelle Lujan Grisham signed adult-use legislation, House Bill 2, into law on April 12, 2021, following two days of a special legislative session.
Since several provisions of the law became effective on June 29, 2021, regulators and lawmakers have eyed certain changes to the program, such as an emergency rule that was enacted Jan. 13 to temporarily allow licensed producers to double their plant count to 20,000 mature plants in anticipation of launching adult-use sales.
More than 160 municipalities participating in Michigan’s adult-use cannabis program will be the beneficiaries of $42.2 million set aside in a fund under the state’s Regulation and Taxation of Marihuana Act (MRTMA).
That list includes 62 cities, 15 villages, 33 townships and 53 counties that will receive $56,453.44 for each retail store or microbusiness licensed within their jurisdictions, based on revenues collected in fiscal 2021, according to the Michigan Department of Treasury.
Overall, those municipalities had 748 licensees combined (with each license counting both toward a city, village or township, as well as a county). For example, Ann Arbor, which had 25 licensees for the year, will receive more than $1.4 million from the shared revenue fund, while Washtenaw County as a whole had 32 licensees (including Ann Arbor’s 25) and therefore will receive more than $1.8 million.
“The Michigan Department of Treasury will distribute these dollars as soon as practical to eligible local units of government,” state Treasurer Rachael Eubanks said in a statement. “The doubling of this year’s payment amounts will have a larger impact on local government budgets.”
The fiscal 2021 shared revenue amount is more than double the $28,000 municipalities received per license in fiscal 2020.
As part of the state’s revenue sharing program under 2018’s passage of MRTMA, tax revenue generated from the Michigan’s adult-use program are distributed as follows:
New Jersey’s cannabis regulators took one step forward and one step back at their March 24 meeting.
The Cannabis Regulatory Commission (CRC) approved 68 conditional adult-use cannabis cultivation and manufacturing licenses Thursday but delayed the approval of eight medical cannabis dispensaries that want to expand to serve the broader adult-use market, according to an NJ.com report.
Allowing the medical cannabis retailers to sell to adult-use consumers would allow New Jersey to launch its commercial adult-use market next month, whereas the conditional licensees—50 growers and 18 manufacturers—are not expected to launch operations until this fall.
CRC Executive Director Jeff Brown said that the decision to allow the medical dispensaries to expand was put on hold because commissioners want to see plans for how the retailers can accommodate both medical patients and adult-use customers at their locations, according to NJ.com.
Brown estimated that the medical cannabis dispensaries may be short by 100,000 pounds of product to meet both medical and adult-use demand.
Hawaii’s medical cannabis industry recently expanded with a new dispensary opening and two companies launching the sale of edible products.
The Hawaii State Department of Health (DOH) has approved Maui Grown Therapies’ third retail location in Pukalani, according to the Honolulu Star-Advertiser.
The new dispensary will open March 25, the news outlet reported, after it passed its final DOH inspection.
Maui Grown Therapies operates two other medical cannabis dispensaries in Lahaina and Kahului, according to the Honolulu Star-Advertiser.
Hawaii’s medical cannabis market is also expanding to include the sale of edible products such as chocolates, beverages, brownies and cookies.
LANSING, Mich. — PRESS RELEASE — LIV Cannabis Co., which is committed to connecting people through safe, high-quality cannabis products, today announced the grand opening of its Lansing location to serve patients and adult-use customers in Greater Lansing and beyond. The new location at 6283 S. Martin Luther King Blvd. is part of the company’s statewide expansion and commitment to serving the unique, individual needs of cannabis consumers.
The store’s grand opening celebration continues through April 7, and includes discounts on several brands including Common Citizen, MKX, Kiva Confections, Dixie Brands, Mary’s Medicinals and High Life Farms.
“At LIV, we are proud to be a Michigan-based, community forward cannabis company, and we are excited to provide our safe, high-quality cannabis products to patients and adult-use customers in Lansing,” said Dennis Zoma, LIV Cannabis co-founder. “Lansing has welcomed us with open arms, and we look forward to creating job opportunities, helping grow the local economy and giving back to this vibrant community in the months and years ahead.”
The Lansing LIV Cannabis location is open 9 a.m. to 9 p.m. every day. LIV Cannabis plans to open a cannabis consumption lounge on the property adjacent to the Lansing store next fall. The company also has locations in Ferndale and Battle Creek, and will soon be expanding into Lake Orion, Detroit, Pontiac and Westland as part of the company’s statewide expansion.
While offering quality products at competitive prices, LIV Cannabis also takes great pride in promoting inclusivity, proven accessibility, continued education and building a culture of care.
Among three high-profile bills aimed at broad federal cannabis reform introduced this Congress, the Marijuana Opportunity Reinvestment and Expungement (MORE) Act is on course to be the first to receive a floor vote.
Sponsored by U.S. House Judiciary Committee Chairman Jerry Nadler, D-N.Y., the bill, which aims to remove cannabis from the U.S. Controlled Substance Act, was first introduced in July 2019 and was passed by the full lower chamber via a 228-164 vote in December 2020. That marked the first time a full body of Congress voted on a broad cannabis decriminalization measure.
RELATED: U.S. House Passes MORE Act
But the previous version of the bill ultimately made it nowhere in the Senate with then-Majority Leader Mitch McConnell, R-Ky., in the driver’s seat.
Now, the House Rules Committee announced March 24 that it will hold a hearing on the current version of the MORE Act, House Bill 3617, at 2 p.m. March 28. In addition, the legislation was also placed on the House calendar of bills expected to be considered by the full chamber next week.
The announcements come after more than 20 chief executives from top cannabis companies and various state and advocacy group leaders met with 60 congressional leaders last week in Washington, D.C., urging them for immediate action on reform. U.S. Cannabis Council CEO Steven Hawkins was among the executives leading the charge on Capitol Hill.
LOS ALAMOS, NM and SAULT STE. MARIE, ON, March 21 /PRNewswire/ PRESS RELEASE -- UbiQD, Inc., a deep tech company specializing in nanomaterials innovation, and Heliene Inc., a customer-first provider of North American made solar modules, today announced the initiation of a joint development agreement to embed UbiGro® sunlight optimizing technology in Heliene’s photovoltaic modules.
“As energy costs continue to rise, the controlled environment agriculture industry will have to utilize energy sources more efficiently,” said Martin Pochtaruk, CEO of Heliene. “Greenhouses and photovoltaics generate hundreds of billions of dollars of value from sunlight, and our plan is that with our agrivoltaic modules, the whole will be greater than the sum of the parts.”
While WNBA all-star center and Olympic gold medalist Brittney Griner remains in Russian custody for allegedly carrying cannabis vape cartridges in her airport luggage last month near Moscow, her current condition is now known.
RELATED: Top US Basketball Player Detained in Russia for Cannabis
U.S. State Department spokesman Ned Price confirmed March 23 that an official from the U.S. Embassy in Moscow had visited Griner Wednesday morning (Eastern Time) to check on her condition.
“The consular officer who visited with Brittney Griner was able to verify that she is doing as well as can be expected under these very difficult circumstances,” Price said in a press conference. “We’ll continue to work very closely with her legal team, with her broader network to see to it that she is treated fairly and that her rights are respected.”
He added that it’s the State Department’s expectation that Wednesday’s checkup is not a one-off visit.
Griner, 31, who plays basketball overseas during the WNBA offseason, was detained after an airport screening in February near Moscow, but her detention by Russian authorities did not come to light until March 5, after she was identified by Russian state-owned news agency TASS.
In an effort to recoup lost revenues, the California Department of Tax and Fee Administration (CDTFA) auctioned off a commercial property March 23 that was seized in connection with illicit cannabis retail operations.
The property, in Whittier, a city southeast of Los Angles, was part of an investigation into illegal cannabis sales, which uncovered that operators at the site owed more than $850,000 in unpaid taxes, according to a CDTFA news release.
The March 23 auction marked the second time this month that CDTFA officials used seized property to partially reclaim unpaid taxes from illicit cannabis sales. On March 2, the department sold a property in Compton for $256,000 in conjunction with the Los Angeles County Sheriff’s Department.
While CDTFA officials hoped the March 23 auction would provide $220,000 in revenue from the Whittier property, that sale exceeded expectations at $330,000, the Whittier Daily News reported.
“Unlicensed cannabis operators not only undercut legitimate businesses, but they also cheat California communities out of revenue for vital programs,” CDTFA Director Nick Maduros said in the news release. “These businesses are not licensed under the laws approved by California voters, and many of their products are unregulated.”
Taxable sales of cannabis, cannabis products and tangible personable property at licensed adult-use dispensaries netted nearly $1.3 billion in total tax revenue in 2021 in California.
How would interstate cannabis commerce impact California’s cannabis industry?
State Sen. Anna Caballero (D-Merced) believes the ability to import and export California’s state-legal cannabis products to other states would benefit California’s economy and give the state a competitive edge.
Caballero introduced Senate Bill 1326 Feb. 18 to authorize cannabis imports and exports, as well as allow the governor to enter into trade agreements with other U.S. states.
“S.B. 1326 is an essential step to ensure that California can fully capitalize on, and remain a leader in, the national cannabis market,” Caballero said in a public statement. “California can and should lay the groundwork for a multi-state legal cannabis market which will benefit our rural economy and our workers. This strategy can be replicated on a national scale and it’s my hope that S.B. 1326 will give California a competitive advantage.”
The legislation requires trade agreements between California and other states to include public health, safety and labeling standards; a system to regulate and track cannabis products; and the collection of applicable taxes. It would also require any products imported from out of state to be tested, packaged and labeled in compliance with California law.
PITTSBURGH,March 24, 2022 – PRESS RELEASE – The National Cannabis Risk ManagementAssociation (NCRMA) announces the launch of a new health insuranceprogram for cannabis companies—Health ReLeaf.
Over thepast decade, premiums and deductibles have risen faster than workers' wages,and as a result, NCRMA and My Benefit Advisor have partnered on a solution. Throughthe launch of Health ReLeaf, they're helping cannabis companies takecontrol. By knowing the health plan's data and spending, Health ReLeaf can helpcannabis businesses make decisions in the best interest of their company andemployees. The health plans put businesses in control of the outcomes and giveemployees the relief they've been looking for.
"Employersare aware of the challenges associated with controlling health carespending," said Brian McLaughlin, market leader for My Benefit Advisor."My Benefit Advisor is excited about the opportunity to partner with theNCRMA to give their members the chance to take control of their health carespending. The ReLeaf program gives employers the data and tools to manage costswhile providing the employees the benefits they deserve."
"Oneof the most significant risks faced by cannabis companies is talentoptimization," said Rocco Petrilli, NCRMA chairman, "locating andplacing 'the right people in the right places' is the challenge of the moment.Once this is accomplished, retaining these employees takes center stage. HealthReLeaf benefits will provide employees with the security of solid medicalcoverage and will work to keep this valuable workforce in place andproductive."
The newprogram offered to NCRMA company members leverages a different approach byfunding the known risks and insuring the unknown. Health ReLeaf's process integratesemployee health assessment to identify known risks. The offering is madespecifically for companies working in the cannabis industry. It offers fullprotection from all volatile claims. By identifying these known risks, HealthReLeaf can save businesses up to 20% within the first year.
TheHealth ReLeaf brokers are ready to dually work as risk managers to identifyreductions in claims, high-cost specialty drugs, fraud, and waste.Additionally, the program helps cannabis companies implement measures to reduceknown risks through abuse prevention, promotion of general wellness, andprimary care utilization.
]]>A trio of investors in Georgia-based multistate cannabis operator Parallel are not pleased with how their investment dollars were spent.
In a complaint filed March 8 in Florida federal court, TradeInvest Asset Management Company (BVI) Ltd., First Ocean Enterprises SA and Techview Investments Ltd. take aim at the company, formerly known as Surterra Wellness, and its former CEO, William “Beau” Wrigley Jr., heir of the Wrigley chewing gum fortune.
The trio of investors have leveraged allegations of securities fraud, claiming that Wrigley convinced them to invest in a simple agreement for future equity (SAFE) issued by Parallel during a go-public combination with a special purpose acquisition company (SPAC) affiliated with music industry mogul Scott “Scooter” Braun, which ultimately failed.
“Wrigley, the Chairman of the Company and its CEO during the relevant period, along with the other Securities Defendants, fraudulently induced the SAFE Plaintiffs, by means of myriad misrepresentations and omissions about the Company’s true financial condition, to invest in a so-called ‘SAFE’—a Simple Agreement for Future Equity—issued by the Company,” the plaintiffs allege in the complaint. “Wrigley and the Securities Defendants initially portrayed the SAFE as a way to maintain planned investments in operating and capital expenditures pending consummation of an announced public merger through a SPAC. … Thereafter, once the merger talks terminated, the Securities Defendants sold the SAFE as a way to ‘bridge’ the Company’s operating and capital expenditures through the second quarter of 2022, by which time an alternative sale could be consummated.”
The complaint describes a SAFE as a relatively new type of security that converts investors’ cash investments to equity in the issuing company under specified conditions.