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.
A medical cannabis task force has delivered its promised recommendations to Maine’s Office of Marijuana Policy: recommendations that are meant to assess the market’s current framework and suggest a helpful, accessible path forward.
One major target of the task force’s work over the past few months? Seed-to-sale tracking. And, long story short, the task force has come out against the mandate of such a system.
According to the Portland Press Herald, “the group soundly rejected the policy office’s previously proposed requirement that the medical market adopt a ‘track-and-trace’ product tracking system.” This has been a point of contention between Maine’s caregiver-led medical cannabis space and the policymakers charged with developing robust regulations to match the broader U.S. cannabis industry’s evolution.
The task force—which includes cannabis business stakeholders and patients—concluded that the state’s tracking system should be required solely for licensed dispensaries. Caregivers, of whom the state counts around 3,000, would be given voluntary standing with the system, according to the task force’s proposal.
Right now, the track-and-trace system is in place for the state’s relatively new adult-use market.
The concern on the medical side of the marketplace is that track-and-trace compliance would be a significant financial hurdle, particularly for the state’s caregiver population.
DENVER, Jan. 26, 2022 /CNW/ - PRESS RELEASE - Schwazze has announced that it has closed the transaction to acquire the assets of BG3 Investments, LLC dba Drift which consists of two cannabis dispensaries located in Boulder, Colo. This purchase continues Schwazze's expansion plan in Colorado, adding to the company's current dispensary footprint, and bringing the total number of dispensaries to 20. As part of the purchase, Schwazze will also acquire the assets of Black Box Licensing, LLC, which contains certain intellectual property.
"We look forward to adding these dispensaries to our portfolio. The company remains focused on bringing excellent shopping experiences to all areas of Colorado by providing a wide assortment of quality products along with great service that our customers have come to expect from our brands. We are excited to bring that experience to our customers in Boulder," said Nirup Krishnamurthy, Schwazze's COO.
The consideration for the acquisition was $3.5 million and was paid as $1.9 million in cash, and $1.6 million in common stock.
Corporate Update
Since April 2020, Schwazze has announced and/or acquired a total of 32 cannabis dispensaries, including the ten R. Greenleaf New Mexico dispensaries. The company has also announced and/or acquired in 2021 a total of seven cultivation facilities, three in Colorado - SCG Holding LLC, Brow 2 LLC and Star Buds - and four licensed by Medzen and RGO in New Mexico. The R. Greenleaf acquisition will add a New Mexico manufacturing asset, Elemental Kitchen & Laboratories, LLC, to the company's manufacturing plant, Purplebee's in Colorado.
In May 2021, Schwazze announced its BioSciences division and in August 2021 it commenced home delivery services in Colorado.
]]>Amazon might not be in the cannabis business, but that’s not stopping the company from using its clout to advocate for federal reform.
The second-largest employer in the U.S., Amazon endorsed U.S. Rep. Nancy Mace’s States Reform Act (SRA), legislation introduced in November that aims to end federal cannabis prohibition.
RELATED: GOP Congresswoman Mace Spices Up Federal Cannabis Legalization
Amazon announced the endorsement Jan. 25.
“Most recently, we endorsed the States Reform Act, a Republican-led bill offering comprehensive reform that speaks to the emergence of a bipartisan consensus that it is time to end the federal prohibition of cannabis,” wrote Beth Galetti, senior vice president of human resources at Amazon.
The endorsement backs up Amazon’s advocacy of equitable workplaces. In June 2021, the company announced it would exclude cannabis from its comprehensive pre-employment drug screening program for positions not regulated by the Department of Transportation or other government entities.
Adrienne Scales-Williams made history Jan. 21 when she opened Luxury Leaf, Missouri’s first Black-owned medical cannabis dispensary.
That’s just the beginning of the story, as Scales-Williams and her team plan to let patients’ needs guide the St. Louis-based business as it looks toward adult-use legalization, which could become a reality later this year as grassroots organizations work to send the issue to Missouri’s 2022 ballot.
Scales-Williams entered the cannabis space in 2018, when she applied for a business license in Michigan. Shortly thereafter, Missouri voters legalized medical cannabis in the 2018 election, and Scales-Williams moved back to her home state, where she ultimately won a cannabis retail license.
“It’s close … to home, so it seems like it would be a perfect scenario for me to work in the community I’m more comfortable with, knowing I can make a difference in the community and offer some alternatives to medicine,” she says. “We’re looking to give [patients] different alternatives in the healing process that they can get from the plant.”
Jamila Owens-Todd, Luxury Leaf’s general manager, says the dispensary’s first day of operations last week was “a great success” with the local community—and also those from farther corners of the state—turning out on opening day.
Thailand took a giant step Jan. 25 toward becoming the first country in Asia to decriminalize cannabis, potentially opening the door for home grows and adult use.
Public Health Minister Anutin Charnvirakul announced Tuesday that Thailand’s Narcotics Control Board approved dropping cannabis from the ministry’s list of controlled drugs, setting up the de facto decriminalization of cannabis in the country, The Associated Press reported.
Charnvirakul would need to formally sign the delisting by the ministry’s Food and Drug Administration, and then the signed delisting would need to be published in the Royal Thai Government Gazette—the public newspaper of record of Thailand—for 120 days before taking effect, according to the AP.
The decriminalization effort comes on the heels of the Thailand government amending it drugs laws last year to reduce the number of people in prison.
Southeast Asia has some of the world’s toughest penalties for drug usage and possession, and Thailand has the largest prison population among the 10 member states in the Association of Southeast Asian Nations (ASEAN), with more than 80% of people in prison held for drug offenses, according to the International Drug Policy Consortium (IDPC).
Nonetheless, it remains unclear whether those who possess cannabis in Thailand would still be subject to arrest under the current decriminalization push.
An Oklahoma lawmaker has introduced a bill that would allow regulators to pause medical cannabis business licensing, according to a Tulsa World report.
Rep. Rusty Cornwell (R-Vinita) has filed House Bill 3208 to give the Oklahoma Medical Marijuana Authority (OMMA) the power to implement a moratorium on licenses as the agency deems necessary.
“Since 2018, Oklahoma has seen a huge number of commercial medical marijuana grows and facilities flooding into our communities,” Cornwell told Tulsa World. “In the initial rush to roll out a system for granting commercial licenses, we’ve failed to enforce their compliance with state law. House Bill 3208 would temporarily pause the issuance of commercial licenses so that we can confirm current operations are complying with the law.”
The legislation would also prohibit the transfer of cannabis business licenses or the sale of facilities if the existing license or facility has a current violation, according to the news outlet.
Oklahoma’s 2022 legislation session kicks off Feb. 7.
New York doctors can now recommend medical cannabis for any condition after the state’s Office of Cannabis Management (OCM) launched a new certification and registration system that expands patient access and eligibility, according to the New York Daily News.
The state’s adult-use cannabis law, which passed last year, included provisions to expand New York’s medical cannabis program, which launched in 2016 and was only accessible to patients with one of several qualifying conditions.
Patients can now access whole cannabis flower under the expanded law, the New York Daily News reported, and dentists, podiatrists and midwives can now certify patients for the medical cannabis program under the new rules.
The latest rule change also increases the amount of cannabis a patient or caregiver can purchase from a 30-day supply to a 60-day supply, as well as eliminates the registration fee for patients and caregivers, according to the news outlet.
New rules also shift regulatory oversight of New York’s medical cannabis program from the Department of Health to the OCM, although OCM executive director Chris Alexander told New York Daily News that patient access will not be disrupted during the transition.
GATINEAU, Québec., Jan. 25, 2022 (GLOBE NEWSWIRE) -- PRESS RELEASE -- HEXO Corp., a producer of cannabis products, today provided an update on its previously announced strategic plan, "The Path Forward," designed to solidify HEXO’s position as the number one cannabis company in Canada by recreational market share, with the goal of becoming the first amongst its peers to be cash flow positive from operations.
“The Path Forward is made up of both expense and growth initiatives. Today’s announcement of new product launches supports our strategy to accelerate growth through organic market share gains and speaks to our commercial capabilities and strong innovation pipeline,” said Scott Cooper, CEO of HEXO. “To that end, HEXO is seeing significant demand for its products and brands across multiple categories and geographies and we continue to remain focused on our growth objectives.”
HEXO is committed to providing its shareholders with updates as the company executes the strategic plan. Today’s announcement provides updates to one of the five strategic pillars: “Accelerate growth through organic market share gains.”
Accelerate Growth Through Organic Market Share Gains
Redecan announces expansion into the low-cost, high-margin edible cannabis market with RedeblesToday, HEXO’s subsidiary, Redecan, announced that it had entered the cannabis edibles category in Canada with a new gummy confection called Redebles.
The news can be overwhelming these days, especially amid the ongoing COVID-19 pandemic, but when Jerry Millen happened to catch a report about the American Red Cross declaring a national blood shortage, it grabbed his attention and inspired him to act.
“These people need blood,” he said. “I saw that [news report] and I thought about it for a minute, and then it started sinking in more over the next week.”
Millen, the owner of The Greenhouse, a medical and adult-use dispensary in Walled Lake, Mich., launched a “Pot for Plasma” campaign to offer free pre-rolls to blood donors to help raise awareness.
The promotion started Jan. 18 and will run for six weeks. While state regulations prohibit dispensaries from giving products away for free, The Greenhouse sells the pre-rolls for a penny, which Millen covers for the dispensary’s customers.
NEWYORK and SYDNEY, Jan. 25, 2022 – PRESS RELEASE – Tilray Brands Inc.,a leading global cannabis-lifestyle and consumer packaged goods companyinspiring and empowering the worldwide community to live its very best life, announcedthe expansion of its medical cannabis product offering in Australia and a newmedical cannabis e-learning platform for health care providers.
DeniseFaltischek, head of international and chief strategy officer, said, “Tilray istransforming the industry globally with our highly scalable footprint andportfolio of diverse cannabis products. As medical cannabis demand increasesworldwide, we remain committed to providing health care professionals andpatients with safe and reliable access to the highest-quality medical cannabisproducts.”
Faltischekadded, “After listening to patient feedback and leveraging learnings from ouroperations in Germany, we are excited to be introducing new products inAustralia that meet consumer needs.”
Tilray's productoffering in Australia approved under the Therapeutic GoodsAdministration (TGA) Special Access and Authorized Prescriber Scheme iscentered around its whole flower options ranging from balanced 1:1 whole flower(THC 10, CBD 10), including mid-range (17), and high-THC (25) varieties of 15gbag GMP-certified medical cannabis whole flower.
GeorgePolimenakos, general manager, Tilray Australia and New Zealand, said, "Weare committed to providing reliable access to patients in need withpharmaceutical-grade medical cannabis products and are pleased to be expandingour medical cannabis offerings in Australia."
Polimenakosadded, “On a related note, cannabis education is paramount to everything we do,and [we] are therefore excited to offer health care professionals with thetools they need to learn about cannabis through our new e-learning platform.”
Preliminary Studies Show Cannabinoids Could Ward Off COVID-19. Will They Live Up to Their Potential?
A study from Oregon State University (OSU) made waves this month when it demonstrated three cannabis-derived compounds–cannabigerolic acid (CBGA), cannabidiolic acid (CBDA), and tetrahydrocannabinolic acid (THCA)–have the potential to prevent the coronavirus from entering human cells.
Other recent research has shown promise for cannabinoids’ potential in fighting off infection, including research from Canadian-based Waterloo University and Michigan State University, the latter in collaboration with GB Sciences.
The recent attention regarding cannabinoids’ medicinal potential has incited excitement among the hemp and cannabis industries and even caught fire in the mainstream.
But some researchers are urging the public to take caution amid these findings–the research still has a long way to go to prove what, if any, effects can play out in humans. “You go into these things hopeful that they’re going to pan out to match the hype,” says Dr. Ethan Russo, M.D., a board-certified neurologist and founder of CReDO Science, “a biopharma holding company that exists to solve problems of the human/animal [endocannabinoid systems] including developing optimized formulations from the cannabis plant for better living,” according to the company’s website. “But something everyone has to realize straight out of the shoot is there’s this tremendous gulf between lab results and what may be achieved clinically.”
The Oregon Research
The OSU study has shown exciting preliminary results for Richard van Breemen, a researcher with Oregon State’s Global Hemp Innovation Center, College of Pharmacy, and Linus Pauling Institute.
Last year, the team at Gb Sciences and a cohort of researchers at Michigan State University announced positive results from ongoing study into cannabinoid-based treatments for cytokine release syndrome (CRS). The work continues into 2022, with a paper awaiting publication, but the good news arrived at the onset of the omicron variant of COVID-19 sweeping across the globe.
CRS is a symptom of viral diseases like COVID-19, one that puts the body’s immune response to inflammatory infection into hyperdrive.
The joint study is analyzing the ability of cannabinoids (and certain cannabinoid combinations) to dampen viral hyperinflammatory responses—much like the cellular response to COVID-19, which gives this cannabis-related research a particular urgency. Cytokines are released by the body to draw immune attention to a viral infection, but, to put it simply, too many cytokines is not good.
“When the cytokine systems get out of whack, you end up bringing too much of the immune system to bear on a particular region, and then you have problems,” Dr. Andrea Small-Howard, president and chief science officer of Gb Sciences, says.
Targeting CRS, then, is seen in this study as one way of treating COVID-19.
A Maine lawmaker has introduced legislation to legalize cannabis delivery in the state.
State Rep. Joseph Perry’s bill would allow certain dispensaries to deliver adult-use cannabis to customers’ homes, a service that as only been allowed in the medical market, according a local WGME report.
“Rather than have people drive very long distances to go to an adult-use store or turn to the illegal market, I think it makes sense to allow them to purchase it legally and have it delivered to their homes,” Perry told the news outlet.
Perry’s legislation would allow adult-use retailers to deliver to customers regardless of whether their local municipalities have approved adult-use stores, WGME reported.
Lawmakers could hold a workshop on the bill in the coming days, according to the news outlet.
South Dakota lawmakers are divided on allowing home cultivation in the state’s medical cannabis program, with some moving to ban it and others voting to allow qualified patients to grow up to three plants, according to a South Dakota Public Broadcasting report.
The state’s voter-approved medical cannabis initiative, which passed in November 2020, includes provisions that allow patients to grow a minimum of three plants at home, the news outlet reported.
However, the South Dakota Legislature’s Medical Marijuana Subcommittee recommended in September that the state should ban home cultivation.
Rep. Fred Deutsch (R-Florence) has introduced legislation to prohibit patients from growing cannabis at home, and his bill has cleared the House State Affairs Committee in a 10-3 vote, South Dakota Public Broadcasting reported.
Deutsch’s bill may hit opposition in the South Dakota Senate, however, as that chamber’s Health and Human Services Committee has approved legislation that would allow patients to grow up to three plants at home.
Jan. 22 marked one year since Arizona launched its first adult-use cannabis sales, and data from the state’s Department of Revenue shows that adult-use sales topped $520 million in 2021.
While the department has not yet finished tallying December’s sales figures, the Arizona dispensaries racked up $528,001,278 in adult-use sales last year, and the state brought in $44,533,436 in tax revenue.
“I believe that the level of sales is close to where we expected,” Demitri Downing, founder of the Arizona Marijuana Industry Trade Association, told KJZZ. “I think there’s individuals who would like them to be higher. Compared to other states, ... it’s about consistent with what other states show.”
The tax revenue generated by Arizona’s adult-use cannabis sales will be used to support state programs like community colleges, transportation and law enforcement, according to the news outlet.
When December’s sales figures are finalized, Arizona will have a combined total of over $1.3 billion in medical and adult-use cannabis sales for 2021.
DENVER, Colo. - January 24, 2022 - PRESS RELEASE - The Colorado Marijuana Enforcement Division (MED) released licensee demographic data for January 2022. The Division is committed to reporting information that allows the state and members of the public to understand the diversity landscape of Colorado’s Regulated Marijuana industry and measure progress on statewide social equity-related initiatives. The following tables provide additional insights into the demographics of Colorado’s commercial marijuana industry.
Regulated Marijuana License Demographic Information - January 1, 2022
Cannabis Cabinet Wildly Important Goal (WIG) FY 21-22: Promote equity, diversity, and inclusion in the marijuana industry, measured by an increase in minority-ownership of marijuana businesses from 15.2% to 16.8% by June 30, 2022.
| Regulated Marijuana Business Owners | |||
|---|---|---|---|
| Licensee Measure | Baseline Data | As of January 1, 2022 | GOAL By June 30, 2022 |
| Percentage of Minority Owners | 15.2% | 16.9% | 16.8% |
As of Jan. 1, 2022, there are 50 approved Social Equity licensees (4 issued in December).
NEWYORK, Jan. 24, 2022 – PRESS RELEASE – Sugarmade Inc., an emerging leader in the licensed cannabissector, announced the signing of a binding letter of intent (the “LOI”) withGenCann Inc., the exclusive licensor for a set of cannabis chemovarsparticularly rich in the cannabinoid Tetrahydrocannabivarin (THC-V) (the“GenCann chemovars”).
Underthe terms outlined in the LOI, Sugarmade and its licensed cannabis cultivatorpartners will be granted a five-year license to cultivate what the companybelieves to be some of the highest THC-V-containing strains in existence.Sugarmade and GenCann plan to begin clone production immediately upon thesigning of the final agreement with a cultivation program beginning this springin Lake County, Calif..
“WhileTHC-V is sometimes referred to as a ‘rare cannabinoid,’ we believe the term nolonger applies relative to our planned cultivation effort using GenCann’s chemovars,”Sugarmade CEO Jimmy Chan said. “The test results from certified Californialaboratories of these chemovars are certainly impressive, with THC-V yields inflower of up to 8 percent. We think the GenCann chemovars are a game-changer inthe cannabinoid space. Sugarmade plans to make a substantial commitment to bringproducts based on THC-V to the California market and perhaps to other states inthe future.”
TheGenCann chemovars are covered by multiple issued U.S. patents, including patentnumbers PP33212 for the plant called “V1,” patent number PP33211 for the plantcalled “V2” and patent number PP33210 for the plant called “V3.” All three ofthese chemovars contain abundant THC-V, with the V1 variety being especiallydistinguished by producing more THC-V than THC by percent weight. The V3strain, also known as Skelator, will be the predominant strain utilized forspring cultivation due to its early finishing characteristics and its higherTHC-V content, although the V1 and V2 varieties are also planned for Sugarmade’scultivation effort.
Sugarmadeplans to utilize the THC-V-rich biomass in a series of products it plans tointroduce to the licensed California marketplace. The first of these will beTHC-V-rich smokeable flower and THC-V-rich gummy candies. In the future,Sugarmade plans to also produce distillate and isolate products based on itscultivated biomass.
“TheTHC-V smoking and edibles consumption experience is very different compared totraditional cannabis,” Chan said. “Where legacy cannabis strains often producea sedating effect, consumption of THC-V-rich products produces a pleasant anduplifting effect. It’s a remarkable experience, and we believe consumers willgravitate to it.”
Veritas Fine Cannabis is always looking for new ways to engage with the end consumer, and this past year, the Colorado-based company has found success in a variety of limited-edition product drops.
The Veritas team likes to curate experiences, according to the company’s marketing director, Jordan Plunkett.
“That’s the thought process behind our new product lines and our new product drops,” Plunkett says. “We want to do something that goes above and beyond just giving someone a new product to try out. We want to tie that into an experience somehow, and we’ve done this in the past with previous product lines, such as our Pheno Hunts.”
While “pheno hunting,” or determining a cannabis cultivar’s best traits, is usually reserved for a company’s internal product development team, Veritas has given its customers the chance to try and vote for their favorite phenotype. The one with the most votes then becomes a permanent cultivar in Veritas’ genetic library.
“That [idea] derived from our gardeners coming to us and basically saying, ‘We have all these phenos and these incredible strains, and we don’t even … know where to choose from,’” Plunkett says. “We then came up with an idea to actually … get consumers engaged somehow.”
South Dakota has issued its first three medical cannabis dispensary licenses to retailers in Wagner, Watertown and Keystone, according to a South Dakota Public Broadcasting report.
The licenses went to Custom Touch in Wagner, Dakota Dispensaries in Watertown and Puffy’s in Keystone, according to the state’s website.
South Dakota must still license medical cannabis cultivators, manufacturers and testing facilities, and the Department of Health is continuing to process applications, South Dakota Public Broadcasting reported.
The state’s voters approved medical and adult-use cannabis legalization measures in the November 2020 election, although the South Dakota Supreme Court has since overturned the adult-use initiative, ruling that it violated the state’s single-subject rule.
South Dakota lawmakers are currently considering several proposed bills on medical and adult-use cannabis during the 2022 legislative session, which kicked off Jan. 11.
SOUTH SAN FRANCISCO, California, January 21, 2022 - PRESS RELEASE - Dama Financial (Dama), a provider of access to banking and payment solutions for the cannabis industry, has entered into an agreement to acquire GrowFlow Corp. (GrowFlow), whose business management and compliance tools have processed more than $3.3 billion for cannabis retailers, cultivators, processors, and distributors.
Dama Financial has entered an agreement to acquire GrowFlow, creating a comprehensive solution for cannabis companies.
Combining Dama's fintech and payment solutions and GrowFlow's software platform will create a sophisticated, comprehensive solution for cannabis companies, integrating product, operations, compliance, and financial data in a more usable and flexible solution. The highly scalable platform will fulfill the business needs and regulatory obligations of any licensed cannabis business—dispensary or wholesale—everywhere cannabis is legal in the United States.
"With this acquisition, we are creating the leading platform for cannabis operators, essentially a one-stop-shop for the business tools they need to thrive," said Anh Hatzopoulos, Dama's co-founder and chief executive officer. "We created Dama to solve real problems for the industry through innovation, and integrating GrowFlow's software into our fintech is a huge step forward in that mission. To be successful in the long term, cannabis operators need legal, compliant, forward-looking solutions like Dama's that don't skirt restrictions through workarounds, and this sets us up to keep innovating to champion our customers and propel a booming market."
Cannabis is currently legal in 37 U.S. states and four U.S. territories. The U.S. market is expected to reach $43 billion by 2025, according to New Frontier Data. Dama is one of the only solutions available in every state where cannabis is legal.
"I could not be more excited about this merging of minds and technologies," said Travis Steffen, GrowFlow chief executive officer. "Our leadership teams have nearly identical views of the industry and how it is evolving. Bringing our solutions together will allow us to serve customers in many unique ways and compete on much more than price."