NEW YORK, March 2, 2021 /CNW/ - Canopy Growth Corporation, a diversified cannabis, hemp, and vaporization device company, has entered the high-potential U.S. CBD beverage category with the launch of Quatreau, a premium ready-to-drink CBD-infused sparkling water. The stateside launch follows the successful 2020 rollout of Canopy Growth's CBD-infused beverages in Canada, where Quatreau is now the top-selling ready-to-drink CBD beverage. 

Quatreau sparkling water contains 20 mg of premium, U.S. grown hemp-based CBD and one of four flavors. With a manufacturer suggested retail price of $3.99 per 12-ounce can, Quatreau is a functional zero-sugar drink that delivers a natural, low calorie beverage alternative.

Product SKUs available at launch will include:

Quatreau CBD-infused Sparkling Water in Cucumber + Mint Quatreau CBD-infused Sparkling Water in Passionfruit + Guava Quatreau CBD-infused Sparkling Water in Ginger + Lime Quatreau CBD-infused Sparkling Water in Blueberry + Acai

"We have proven our beverage strategy in Canada, where we are currently the market share leader in CBD-infused ready-to-drink beverages, said Canopy Growth President and Chief Product Officer Rade Kovacevic. "Beverages are fueling growth in the CBD category and we believe this product will resonate with U.S. consumers looking for a naturally flavored, zero sugar option."

The launch of Quatreau in America coincides with an astrological event known as the Age of Aquarius—the zodiac's water bearer, which brings us to the cusp of a brand-new age. To celebrate this serendipitous event, Quatreau has partnered with iconic celebrity astrologist Susan Miller of Astrology Zone on a digital and social campaign. 

"Astrology has made a major pop culture comeback as people turn to the stars for guidance during what has been an unsettling, uncertain, and stressful time for many," said Canopy Growth Vice President of Beverages Tara Rozalowsky. "With this campaign, we're highlighting the role functional ingredients like CBD can play in helping people manage their stress, find moments of calm and prioritize wellness during this once-in-a-lifetime transitional period."

BOULDER, Colo., March 2, 2021 – PRESS RELEASE – BDSA announced today the release of its 2020 cannabis sales data and forecast future sales by region. Global cannabis sales reached nearly $21.3 billion in 2020, an increase of 48% over 2019 sales of $14.4 billion. BDSA forecasts global cannabis sales will grow from $21.3 billion in 2020 to $55.9 billion in 2026, a compound annual growth rate (CAGR) of more than 17%. 

“The cannabis industry faced numerous challenges in the past few years, none so potentially disruptive as the coronavirus pandemic in 2020,” said Micah Tapman, Chief Executive Officer, BDSA. “Our previous forecast was conservative based on the expected economic fallout from the pandemic, but the industry not only survived, it thrived and legal cannabis gained considerable ground, exceeding our expectations in several markets.”

Many mature markets in the United States saw accelerated growth in 2020 – Colorado grew by 26%, double its 13% rise in 2019, and Oregon expanded by 39%, versus 21% in 2019. Canada, the largest national market, grew by 61% in 2020 to more than $2.6 billion, boosted by the late-2019 introduction of a host of new product options under the government’s new “Cannabis 2.0” rules, which authorized sales of derivative products such as edibles.

Even so, new markets are key to future growth. Medical and adult-use markets that launched in 2019 and 2020 contributed $1.6 billion in spending in 2020, $422 million in medical and nearly $1.2 billion in adult-use. Five new U.S. markets legalized medical or adult-use cannabis during the 2020 elections: Arizona, Mississippi, New Jersey, Montana and South Dakota. BDSA expects four new medical and five new adult-use markets to commence sales in 2021.

These data reflect legal cannabis market forecasts. CBD market forecasts are also available for sale from BDSA and include CBD-dominant products (derived from marijuana or hemp) sold in dispensaries, pharmaceuticals, and CBD products in general retail (derived from hemp).

United States

Last week, New Jersey Governor Phil Murphy ended a weeks-long legislative saga that saw cannabis legalization—supported by more than two in three voters in November—finally go into effect. On Feb. 22, Murphy signed a bill to legalize and another bill clarifying penalties for underage possession, a sticking point that had stalled the development of the legal industry. 

Stopping low-level cannabis arrests and moving forward on an initiative the state’s voters approved nearly four months ago is just the start. Those fighting for a fair industry in New Jersey say there’s still a long way to go to ensure the new state market helps correct the previous decades of biased law enforcement.

Racial disparity in New Jersey prohibition

Between 2010 and 2018, Black people were 3.5 times more likely to be arrested for cannabis across the state. In certain counties, that discrepancy shoots up to over 13. And according to the ACLU, the disparity has gotten worse over time—in 2000, Black people were arrested 2.2 times as often.

“New Jersey averaging 32,000 arrests a year for low-level, nonviolent, minor possession of cannabis—and 80% of those arrested were people who look like me—is not a fluke or happenstance,” said Leo Bridgewater, Director of Veterans Outreach for Minorities 4 Medical Marijuana (M4MM) and an advocate in the state’s effort for cannabis reform.

He and others involved in New Jersey’s legalization process, who spoke to Cannabis Business Times and Cannabis Dispensary via email, weighed in on how Garden State lawmakers should proceed from here on out to create an industry that can begin to compensate for many years of racially biased law enforcement.

On Feb. 23 the North Dakota House of Representatives approved three bills that revise its cannabis laws and introduce adult-use legalization: House Bill 1420, House Bill 1501 and House Bill 1201. 

House Bill 1420, which passed 56 to 38, would allow adults aged 21 and older to purchase or possess up to one ounce of cannabis every 14 days; however, cultivating cannabis for personal use would remain illegal.

The bill’s proposal also limits the allotted number of registered dispensaries to 18 and caps growers to seven, and calls for adult-use cannabis sales to begin on July 1, 2022.

The bill now heads to the Senate for the second round of votes. If approved, it will be sent to Gov. Doug Burgum for his final signature.

Lawmakers also approved House Bill 1501, which passed 73 to 21 and lays the foundation for a  tax structure for the adult-use cannabis market. 

As stated in the House Bill 1501’s proposal, the bill would impose a “tax of 15% upon the gross receipts of adult-use cannabis products,” and “an excise tax of 10% on the sale of usable marijuana and adult-use cannabis products by a manufacturing facility to a dispensary.”

NEW YORK, Feb. 22, 2021 – PRESS RELEASE – LeafLink, a technology-enabled wholesale marketplace for the cannabis industry, announced a partnership with Last Prisoner Project (LPP), a nonprofit organization dedicated to cannabis-related criminal justice reform. This collaboration is LPP’s largest partnership with a tech-company and will be fortified thanks to LeafLink’s ability to feature the nonprofit directly within its marketplace.

While LPP has partnered with individual cannabis brands and retailers in the past, the new partnership with LeafLink will allow the nonprofit to tap into a platform that powers over $3.3 billion in annual orders, or 35% of U.S. wholesale cannabis commerce. By leveraging its e-commerce platform, LeafLink is setting a new standard for marketplaces and business-to-business tech companies that are looking to give back.

Accessible directly in LeafLink’s marketplace, the give-back model has the potential to activate the entire network of cannabis businesses that use the B2B platform to streamline wholesale ordering. Now, retailers who use the marketplace to discover new brands and shop for products to restock their shelves will have the ability to donate to LPP directly through LeafLink’s order confirmation page. Brands and distributors, who use the platform to streamline order management, can donate straight through the seller homepage. Thanks to the tech-enabled integration, LPP will gain exposure to LeafLink’s growing community of 7,700-plus licensed cannabis businesses.

“It is our responsibility as industry leaders to build a more equitable future for the cannabis community,” said Ryan G. Smith, co-founder and CEO of LeafLink. “As an e-commerce marketplace, we thought about how we could best leverage our technology and our unique position in the industry for social good. We’re optimistic that this partnership will fuel conversation and action around criminal justice reform within the cannabis space, while also providing an example for how other tech and B2B companies can facilitate change by tapping into their own networks.”

As the sector expands and legalization ramps up across the country, organizations and leaders are being challenged to address the underlying social inequity that exists within the cannabis industry. With the partnership, LeafLink hopes to encourage direct support of LPP’s advocacy efforts, as well as spread awareness around the need for clemency, expungement and reentry programs for individuals with cannabis convictions. LeafLink joins a list of well-known organizations and activists who support LPP, including celebrity ambassadors Jim Belushi, Damien Marley, Montel Williams and Melissa Ethridge.

“Last Prisoner Project is incredibly grateful to LeafLink for their support of our mission to release cannabis prisoners. Everybody who has the privilege of profiting from the legal cannabis industry should feel a moral imperative to help free those who are still incarcerated for cannabis,” LPP Managing Director Mary Bailey said. “Last Prisoner Project commends LeafLink for being a part of the solution and doing their part to promote a more socially conscious industry.”

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Los Angeles, CA (March 1, 2021) – PRESS RELEASE – Today, Shawn ‘JAY-Z’ Carter and his cannabis brand, MONOGRAM, a part of The Parent Company (“TPCO Holding Corp.”) (NEO: GRAM.U, GRAM.WT.U) (OTCQX: GRAMF; OTC PINK: GRMWF) house of brands, launch a nationwide awareness campaign focused on cannabis law. The out-of-home and digital series draws attention to the hypocrisy of current regulations governing cannabis throughout the United States, with shockingly factual headlines set against the backdrop of eight striking portraits of individuals who have been charged for cannabis-related offenses. With 45 years having passed following the onset of the War on Drugs, MONOGRAM’s campaign highlights the lack of progress made since, along with the outsized consequences still facing those who have been victimized by its lasting effects across the U.S.

“Cannabis laws are out of date and disproportionately cruel and punishing when compared to the rest of the legal code. We still don’t have proper regulation for texting and driving in Missouri, but staying home and smoking weed will get you locked up,” shared Mr. Carter. “I created this campaign to amplify the voices of those who have been penalized for the very same thing that venture capitalists are now prospering from with the emerging legal cannabis market. Far too often we forget that these are real people whose everyday lives and futures have been affected by this outdated legislature - people like Bryan Rone, who can no longer pursue a career in sales because of a cannabis-related conviction in 2003.”

As demonstrated by the results of the 2020 election, more and more states are moving towards legalization as voters and lawmakers recognize the potential economic and wellness benefits the plant can provide. However, while some progress has been made, cannabis continues to be stigmatized by political agendas and arbitrary borders that still demarcate who can benefit from it, whether that’s through entrepreneurship or the positive effects of its use. MONOGRAM aims to shed light on just how antiquated these regulations are by juxtaposing them with far more divisive realities, depraved vices or dangerous transgressions - from cannibalism to flamethrowing - each of which is still permitted in the eyes of local lawmakers. These murals, billboards, mobile ads and wild-postings are currently on display across Los Angeles, San Francisco, New York, Chicago, Washington D.C. and Miami, with plans to expand to additional cities before the end of March.

While MONOGRAM endeavors towards a future through which cannabis can assume its rightful place in culture, the campaign’s depictions of real people negatively affected by the War on Drugs underscore that there is still significant work to be done to repair the injustices of its past. Beyond high-impact static visuals, the campaign will also introduce video testimonials from its eight featured individuals, offering each the chance to share their firsthand experience with inequitable punishment for cannabis offenses in the U.S. This footage, which will live on the MONOGRAM website, www.MONOGRAMCOMPANY.com, as well as the brand’s Instagram (@MONOGRAMCOMPANY), Twitter (@MONOGRAMCOMPANY) and YouTube (MONOGRAM) channels, takes viewers through the subjects’ personal dealings with the criminal justice system, speaking to issues like profiling and excessive charging. Each participant contributes details of how their life has been impacted by unjust policing practices, with irreversible consequences ranging from financial penalties to incarceration.

Through each and every initiative, MONOGRAM seeks to bring dignity to cannabis culture, which cannot be accomplished without righting the wrongs of the past. Steve Allan, CEO of The Parent Company, shared the following:

“One of the founding principles of The Parent Company was to foster social equity in cannabis. The disproportionate effects of the War on Drugs have been devastating, and we believe it is our responsibility to lay the stage to begin the process of righting the many wrongs against the Black and other minority communities.

When she worked in the fields of natural products and dietary supplements, policy attorney Amber Littlejohn started doing some work in the hemp and CBD space. And not only for that reason, the career change to serve as senior policy adviser for the Minority Cannabis Business Association (MCBA) in some ways placed her in a comparable atmosphere.

The cannabis and hemp markets are similar to the natural products and dietary supplement industries, Littlejohn said, because all of them are “heavily regulated,” “emerging” and “embattled.”

Amber Littlejohn

“Another really significant overlap [is that] while there are big players, innovation and culture around the products are really driven by small companies,” she said. “And I wanted to make sure that as we’re growing the cannabis industry that there are adequate opportunities for small and especially small minority businesses."

Littlejohn has now been with MCBA for almost two years, first working on its federal policy program as senior policy adviser, then taking the helm as executive director this past November.

“Our leadership has done an extraordinary job of creating policies and building the reputation of the organization,” Littlejohn said of MCBA’s work. “And so, now, we really want to leverage that to be a strong resource for our community, both in providing the resources that people need to enter and succeed in the industry, as well as driving policy around the country.”

In an interview with Cannabis Business Times, Cannabis Dispensary and Hemp Grower, Littlejohn expands on the importance of strengthening small businesses and businesses owned by people of color—and how it can be done.

Implementing an adult-use cannabis programs doesn’t happen overnight, but it’s officially on the to-do list for the Virginia state legislature. Pending Democratic Gov. Ralph Northam’s signature, Virginia would become the first southern state to legalize cannabis, but not until Jan. 1, 2024.

The state’s legislative chambers overcame differences to pass a compromise bill on Saturday—Senate Bill 1406 and House Bill 2312—to legalize cannabis possession, personal cultivation and retail sales for adults 21 and older.

RELATED: Virginia Is Moving Quickly on the Governor’s Cannabis Legalization Proposal. But What Happens Next?

The partisan bill drew three sponsors and two co-sponsors, all Democrats, in the 40-seat Senate, as well as five sponsors and 20 co-sponsors, all Democrats, in the 100-seat House. When Democrats flipped both chambers in 2019, they gained control of both the legislature and governor’s office for the first time in more than two decades.

“Equitable legalization of marijuana is an essential step towards racial justice in Virginia,” House Majority Leader Delegate Charniele Herring, primary sponsor of H.B. 2312, said in a prepared statement. “We have created a plan to start this important work, and we will continue to move forward and compromise to get this work done together.”

Northam, who supports adult-use legalization, unveiled a proposal in January that would have allowed cannabis sales to start Jan. 1, 2023—a year earlier than the legislature’s timeline. Northam has the option to approve the compromise bill, amend it or veto it.

This week, we’re spotlighting state cannabis markets in various states of flux: hung up in court, on the precipice of sales and somewhere in the early stages of the transition from medical to adult-use. It’s an exciting time in the industry. As 2021 opens, we can see new business landscapes taking shape in nearly every corner of the U.S.

Federal reform, while far from clear, is inching closer into our sightlines, too.

Here are some of the top headlines from this past week:

Despite the entire adult-use market being held up by a recent appeals court ruling (deemed unconstitutional, in fact), South Dakota legislators are moving forward with plans to license retail businesses. It’s new territory for the cannabis landscape, and it remains unclear how this tension will resolve. Read more 
Meanwhile, in West Virginia, dispensaries are getting ready to open their doors once product is in place later this year. Read more And in Pennsylvania, a bipartisan bill has emerged that would legalize adult-use cannabis. It’s a significant step forward in a state whose governor and lieutenant governor have championed the cause. Read more In Arizona, Verano Holdings announced its acquisition of Territory Dispensary, expanding the multi-state operator’s footprint in this newly legalized adult-use market. Read more Texas Original Compassionate Cultivation CEO Morris Denton provided a glimpse into his business’s response to severe winter weather this month. “Our team is a resilient bunch,” he said, “and very purpose-driven and passionate about doing our best to get our medicine safely and quickly into the hands of our patients whom we serve throughout the state of Texas.” Read more 

And elsewhere on the web, here are the stories we’ve been reading this week:

Virginia Mercury: As of Friday morning, Virginia lawmakers were scrambling to align an approach to adult-use cannabis legalization—resolving differences over regulatory language set up for 2021—and it wasn’t quite clear whether a Saturday deadline would be met. Read more 
NJ.com: New Jersey Gov. Phil Murphy has announced his picks for the Cannabis Regulatory Commission, which will oversee the recently legalize adult-use marketplace. Read more  
MLive.com: Cookies, which already had a retail site in Detroit (medical-only, for now) celebrated its grand opening in Kalamazoo, Mich., on Friday. Read more   
ABC15: While Arizona got off to a quick start with its adult-use licensing process, the medical cannabis market in rural areas of the state is suffering. Retailers have sued the state, insisting that the licensing procedure over the past few years has left an imbalanced landscape for patients to navigate. Read more  
Marketwatch: Soccer star David Beckham’s cannabis skin care company, Cellular Goods, is off to a hot start on the London Stock Exchange—only a few days after the trading platform began allowing cannabis businesses into the fold. Read more 

 

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Job growth in the cannabis sector doesn’t appear to be slowing down anytime soon.

The legal cannabis industry now supports 321,000 workers in the United States, with 77,000-plus jobs created in 2020, or roughly a 32% increase across the 37 states and the District of Columbia with medical or adult-use markets, according to a report by Leafly.

While cannabis companies were not immune to layoffs and furloughs during the onset of COVID-19, as job growth experienced a lull between March and August, hiring picked back up, and many operations thrived during the pandemic. The year-over-year growth showed that the cannabis sector created jobs at a faster rate than almost any other American industry, according to Leafly.

James Yagielo, the CEO of HempStaff, a recruiting and training company based in Miami that specializes in the cannabis and hemp industries, said the 32% increase reported by Leafly did not leave him open-mouthed. 

“It was not really that surprising because it was essential business, so that really narrowed down a lot of the different industries because a lot of industries are not essential,” he said. “So, I think that may have definitely skewed the numbers in cannabis’ favor. But, additionally, even though last year was a horrendous year for most people, our recruiting numbers pretty much matched 2019. We didn’t get the increase we expected, but we didn’t really get decrease either.”

When September 2020 hit, job growth picked back up in the sector, Yagielo said.

JENKINTOWN, Pa., Feb. 26, 2021 – PRESS RELEASE – TerraVida Holistic Center LLC, a premier, women-owned and operated medical cannabis company in Pennsylvania, is pleased to announce that it has entered into an agreement to merge with Verano Holdings Corp. (CSE: VRNO), a leading multistate cannabis operator with a portfolio that encompasses 14 U.S. states.

Verano plans to expand TerraVida’s retail footprint in Pennsylvania to six operating dispensaries, plus a license for three additional dispensaries. This includes TerraVida’s three current dispensaries—some of the state’s top performing dispensaries—located in the Philadelphia Metropolitan Area. This acquisition will escalate Verano’s access to Pennsylvania’s surging patient population—the fifth most populous state in the U.S., currently accounting for approximately 400,000 registered medical marijuana patients.

“The TerraVida team is thrilled to have the opportunity to increase our capabilities, expand the TerraVida brand and provide access to medical cannabis to patients in need throughout Pennsylvania,” said Chris Visco, co-founder and CEO of TerraVida Holistic Centers. “This new partnership with Verano will allow us to triple our dispensary footprint and give us the infrastructure to help as many people as possible while continuing to educate Pennsylvania on the benefits medical cannabis and break free of underlying stigmas—it is a very exciting time for us.”

RELATED: How TerraVida Holistic Centers opened three dispensaries in just three months to serve Pennsylvania’s new medical cannabis market.

Verano has entered into an agreement and plan of merger pursuant to which subsidiaries of Verano will merge with and into TerraVida Holistic Centers, LLC (“TerraVida”) and GVB Holding Group, LLC, which operate three of the state’s top performing medical dispensaries in Sellersville, Abington and Malvern, Pennsylvania. The merger consideration includes cash consideration of US$62,500,000, subject to adjustment, with US$15,000,000 being payable on the closing date, US$10,000,000 payable within 90 days after the closing date, and the remainder payable within 180 days after the closing date. In addition, the merger consideration includes Class A shares or Class B shares equivalent to 3,013,500 Class A shares on an as converted basis, including a minimum of 1,506,750 Class A shares.

TerraVida’s highly regarded management team will remain in place following the acquisition as Verano looks to build on the strong foundation the team members have established in Southeastern Pennsylvania.

The South Dakota Senate approved Senate Bill 187B Wednesday, which was sponsored by Sen. Brock Greenfield.

The measure, which passed 19-16, is designed to put a system of laws in place to regulate the sale, possession and consumption of adult-use cannabis per the voter-approved Amendment A in the general election, which was challenged by Gov. Kristi Noem and ruled unconstitutional by Circuit Judge Christina Klinger on Feb. 8.

RELATED: South Dakota Judge Strikes Down Adult-Use Amendment

The bill acknowledges that Klinger deemed Amendment A as unconstitutional, but "the legislature recognizes that a majority of voters approved the legalization of the sale, possession and consumption of adult-use retail marijuana."

The majority of state senators voted in favor of enacting the legislation to ensure there are regulated and enforceable laws in place regarding the sale, possession and consumption of adult-use cannabis, in case the South Dakota Supreme Court overrules Klinger’s ruling that Amendment A was unconstitutional.

The bill has been sent to the House of Representatives but has not yet been scheduled for action.

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In early February, the West Virginia Office of Medical Cannabis (OMC) announced the successful applicants to receive a medical cannabis dispensary permit.

RELATED: Medical Cannabis Dispensary Permits Announced in West Virginia

The OMC posted the full list of dispensary permit holders on its website, which consisted of Ohio-based medical cannabis dispensary Terrasana Cannabis Co. and West Virginia-based medical cannabis dispensary Harvest Care Medical.

Terrasana applied to receive six dispensary permits at the beginning of this year and was awarded all six. The dispensary business was also granted a cultivation and processing license, said William Kedia, Terrasana Cannabis founder and CEO. 

Both dispensaries are making changes and finalizing a game plan in preparation for the expansion.

"The hiring process will not start until we start construction, just because of the timeline," Kedia said. "I don't want people waiting on us to do the project for three to five months until it's finalized. So, as we get to those time points in our game plan, we will hire appropriately and train everyone so everyone is on the same page and ready to go the minute we get the dispensaries, growing and processing facilities all open at the same time."

SALINAS,Calif., Feb. 25, 2021 (GLOBE NEWSWIRE) -- PRESS RELEASE -- Indus Holdings, Inc., a vertically-integrated,California-focused cannabis company, announced the acquisition of substantiallyall of the assets of the Lowell Herb Co. and Lowell Smokes trademark brands,product portfolio, and production assets from The Hacienda Group effectiveimmediately. Lowell Herb Co. is a California cannabis brand thatmanufactures and distributes distinctive and highly regarded premium packagedflower, pre-roll, concentrates, and vape products.

Thetransaction is valued at approximately $39 million and is comprised of acash payment of $4.1 million and the issuance of 22,643,678 SubordinateVoting Shares of the Company (of which 5 million will be held in escrow tosecure certain indemnification obligations undertaken by the sellers in thetransaction). The share consideration was issued in a private placementtransaction and the Company has agreed to register such shares for resale inthe United States. Hacienda has agreed to continue to produce Lowell productsfor an interim period for the account of the Company pending completion of thetransfer of certain regulatory assets.

In connectionwith this acquisition, the Company intends to complete a change in itscorporate name to LowellFarms Inc.

It is currently anticipated that the Company’sSubordinate Voting Shares and Warrants will begin trading on the CanadianSecurities Exchange effective on March 5, 2021, under the ticker symbolsLOWL and LOWL.WT, and that the Subordinate Voting Shares will begin trading onthe OTCQX effective on March 5, 2021, under the ticker symbol LOWLF. No actionis required to be taken by existing securityholders of the Company with respectto the name change. Outstanding share and warrant certificates are not affectedby the name change and do not need to be exchanged.

"Thecombination of Indus and Lowell will create a leading producer of Californiacannabis and the next step for the first great American cannabis brand,"said Gregory Heyman, founder of Beehouse, Lowell’s largest investor. "TheIndus team’s commitment to growing excellent cannabis and the communities theyserve also realizes Lowell’s mission to normalize cannabis in America."

“The cannabisindustry is awash in brands competing for our attention, but Lowell has risento the top of the fray as a brand that simultaneously empowers a movement,welcomes the curious, and greets the reacquainted all with a grace and elegancethat other brands can only aspire to,'' said George Allen, Chairman of theBoard for Indus Holdings, Inc. “Every resource under our control will beemployed in unlocking Lowell’s full potential.”

CHICAGO, Feb. 24, 2021 (GLOBE NEWSWIRE) -- PRESS RELEASE -- Verano Holdings Corp., a leading multi-state cannabis company, today announced it has entered into an agreement to acquire three active dispensaries and one cultivation and production facility in Arizona. Upon completion, this transaction would increase Verano’s presence in the key state of Arizona and support the Company’s focus on becoming a market leader in this market. Closing of the transaction is subject to customary conditions, contingencies, and approvals, including regulatory approval.

“Pursuant to our recent go-public, we are strategically focused on expanding our presence in limited-license, high-growth markets,” said George Archos, Co-Founder and CEO of Verano. “Arizona recently added adult-use to its program, and we look forward to accelerating our proven, vertically integrated model to help meet rising demand.”

Transaction Highlights

Verano, Verano Arizona Holdings, LLC (a wholly-owned subsidiary of Verano, known here as “Verano Arizona”); NZCO LLC, an Arizona limited liability company; Murff & Company LLC, an Arizona limited liability company; JWC1 LLC, an Arizona limited liability company; Hu Commercial Properties LLC, an Arizona limited liability company; and COBISH LLC, an Arizona limited liability company; the board members of AZGM 3, Inc., an Arizona non-profit corporation; the members of Vending Logistics LLC, an Arizona limited liability company; the managers of Vending Logistics LLC; Best-in-Show Holdings L.L.C., an Arizona limited liability company; and the sole member of The Medicine Room LLC, an Arizona limited liability company; and the managers of Medicine Room LLC have entered into a reorganization and merger agreement pursuant to which the Target Companies will merge with and into Verano Arizona.

The merger consideration includes $7.25 million, payable in cash, subject to adjustment, and Class A Subordinate Voting Shares in the capital of Verano and/or Class B Proportionate Voting Shares in the capital of Verano equivalent to 3,989,875 SVS on an as-converted to SVS basis.

The transaction includes three premium, high-traffic and easily accessible dispensaries located in Mesa, Chandler, and Gilbert, Ariz., an 11,000-sq.-ft. indoor cultivation facility, an 8,100-sq.-ft. greenhouse in Winslow and two real estate locations, collectively known as Territory Dispensary.

Texas Original Compassionate Cultivation (TOCC), a vertically integrated medical cannabis company headquartered in Manchaca, Texas, just southwest of Austin, struggled to make deliveries to patients last week during the state’s winter storm that brought historically low temperatures, icy roads, and widespread power and water outages.

While TOCC’s facility kept its power, many of its employees did not. And while the facility continued to run, hazardous road conditions made it impossible to drive throughout the state to deliver cannabis medicine.

Contributing Editor Cassie Neiden Tomaselli caught up with TOCC CEO Morris Denton, who shares some of the grim details of last week and how he believes the Compassionate-Use Program could improve to make medicine more accessible should another weather event impact the state of Texas.

Editor’s note: This interview was conducted on Feb. 19. It has been edited for length and clarity.

 

Cassie Neiden Tomaselli: How is the team doing overall?

 Pennsylvania State Sen. Dan Laughlin is not a fan of cannabis. He doesn’t use the product. And he doesn’t think it’s great for others to use it either.

But the lawmaker from Erie County, in the northwest corner of the state, became the first Republican in the Pennsylvania legislature to sponsor an adult-use cannabis legalization bill, which he introduced with Democrat Sen. Sharif Street on Feb. 24.

During a press conference with the two sponsors Wednesday afternoon, Laughlin said he knows it seems odd that he’s not a proponent of cannabis, yet he’s a primary underwriter of the legalization bill. But since he started working on the legislation with Street, an African-American of Philadelphia, he realized some of the social damage that communities of color have experienced over minor offenses, he said.

“That really got my attention,” Laughlin said. “But I think the final straw was a conversation that I had with one of my kids. And I checked with him. He said it was OK to mention this in the hearing. He told me that he could have a bag of weed delivered to the house in under an hour, and that’s better service than Amazon. And I realized that anyone in Pennsylvania that wants to smoke marijuana is probably already doing it. So, we might as well take this and regulated it. I think [it] is the most responsible thing that we can do.”

The approach to the bill focuses on a safe and legal means for adults 21 years and older to purchase and use cannabis; social and economic equity that includes expunging non-violent cannabis convictions; agricultural arrangements in a safe and regulated manner; and new tax revenue and job creation.

According to a press release from Street, polling indicates that nearly two-thirds of Pennsylvanians support adult-use legalization. And according to testimony from the Pennsylvania Independent Fiscal Office, adult-use legalization can generate between $400 million to $1 billion of new tax revenue for the commonwealth of Pennsylvania.

VANCOUVER, British Columbia, Feb. 24, 2021 - PRESS RELEASE - Segra International Corp., an AgTech firm focused on cannabis tissue culture and BioAgronomics Group, an internationally recognized cannabis breeding and consulting company, are pleased to announce that they have entered into an agreement to distribute numerous premium cannabis cultivars within the Canadian Market. Through decades of genetic selection and intensive breeding efforts by world-renowned industry experts, including Robert Clarke and Mojave Richmond, BioAgronomics Group has developed a portfolio of proven classic and proprietary cannabis cultivars. Now, through Segra’s Plant Tissue Culture technology, this premium genetic catalog will be available to Canadian licensed producers and select international markets for the first time.

“BioAgronomics Group is thrilled to be joining forces with Segra International to advance the Canadian cannabis industry through providing high-quality, unique cultivars,” commented Robert Clarke, co-founder of BioAgronomics Group. “We expect this partnership will lead to increased access to popular and agronomically productive cannabis cultivars for licensed growers in Canada and internationally.”

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District Growers established itself in Washington, D.C., in 2012, part of a medical cannabis market that has grown steadily ever since. 

Founder and President Corey Barnette says that his extensive business background gave him a solid foundation for his entrance into the cannabis space. And now that he’s spent years here, navigating the cultivation side of the industry and monitoring broader trends in the U.S., he says that there are ways for business owners to challenge the working assumptions about social equity and market development.

While he may be in D.C., a smaller market than many of the larger states coming online, he points to the fragmentation of the U.S. cannabis space as a major problem.

“We have to build long-term relationships to build a stronger cannabis community among ourselves to be competitive and profitable for years to come,” he says.

Here, our recent conversation with Barnette helps illuminate that need.

Mila Marshall: You are one of the licensed industry’s few African American growers. How did you find yourself one of the few history makers in the cannabis industry?

SAN DIEGO, Feb. 23, 2021 — PRESS RELEASE — Agnetix, a pioneer in data-driven horticulture lighting technology, has been selected as primary lighting partner by BP Logistics, currently constructing several new cannabis greenhouses and indoor grows totaling over 110,000 square feet in the San Francisco area for a total of over 2,000 high-powered A3 luminaires. 

BP Logistics is a California-licensed cultivation group owned by Minh Mai, CEO, and Chauncey Man, chief operating officer. Along with their team of experienced cultivators, the high-energy pair is determined to bring Asian cultivators to the northern California cannabis market with a forward-thinking grow strategy. Selecting Agnetix A3, one of the world’s most energy-efficient and most powerful LED horticultural grow lights, will ensure they have a significant advantage. This partnership marks a pivotal step in the team’s plan to develop technology-forward and sustainable facilities powered by energy-efficient and intelligent systems including lighting, HVAC, water management, nutrient control and data capture. 

“Agnetix is by far the best grow lighting system on the market today,” Mai said. “The A3 water-cooled lighting system delivers a tremendous amount of high-quality light that benefits our plants while greatly reducing our carbon footprint.”

The team chose Agnetix as its primary lighting and cultivation management system for its high-energy efficiencies and data visibility. Agnetix provides a full suite of value-added benefits and a one-of-kind decision support system, employing energy-efficient LED lighting, canopy-level sensors, networking technology and data analytics.

“As we make this major shift in our model, having Agnetix as our partner will provide us with a sure path to exceeding our business goals,” Man said. “The superior level of customer service from the Agnetix team is unparalleled.”

Agnetix CEO Jordan Miles said, “We are thrilled to partner with this team and support their unique vision for sustainable growing facilities. Crop visibility, data-driven insights and remote control are just a few ways we endeavor to mitigate risks across all of their growing facilities and provide a greater peace of mind.”