On Feb. 26, Viola, a nationwide leader in the production and sale of premium quality cannabis products, founded by NBA veteran Al Harrington, announced the official launch of its social equity initiative, Viola Cares. Through education, equitable offerings, expungement, and incubation programs, the initiative will result in more than 10,000 jobs, hundreds of new business owners and expanded industry diversity by increasing representation, facilitating community building and providing employment opportunities.

Viola’s first strategic alliance within its Viola Cares program kicks-off with Root & Rebound. Root & Rebound is home to lawyers and advocates committed to restoring power and resources to the communities most harmed by mass incarceration and the War on Drugs. Their work combines direct legal services with systems-changing policy advocacy and public education, in an effort to move society toward greater racial and economic equity, justice, collective liberation and intergenerational healing. Their educational resources like the California Roadmap to Reentry, the Reentry Planning Toolkit, the National Fair Chance Housing Toolkit, and others have supported thousands of people as they work to navigate the collateral consequences of an arrest or conviction history.

Viola, in conjunction with Root & Rebound, will produce a first-of-its-kind toolkit designed specifically for people with cannabis-related convictions, to be entitled: “A New Leaf: A ‘How-To Guide’ for Successful Reentry After A Cannabis Conviction.”

“At Viola, we live and breathe the belief that a cannabis conviction should never be considered a life sentence,” said Al Harrington, founder, Viola. “In joining forces with Root & Rebound, we will look to help those communities of color who have historically been the victims of cannabis-related incarceration and who have fallen on hard times, and turn those struggles into opportunities for success within this rapidly growing industry.”    

Opportunity within the cannabis industry only continues to grow as legalization progresses and passes into law across the country, and Viola is breaking the barrier of entry for minorities to contribute to that growth through cultivation and entrepreneurship.

“We’re honored to be working side-by-side with Viola on such an important initiative--one that positively impacts thousands who have been unfairly stigmatized by their prior cannabis-related incarceration,” Katherine Katcher, founder and executive director of Root & Rebound. “Together we’re changing that conversation, leveling the playing field for minorities and creating opportunities for those deserving of a second chance.”

LAFAYETTE, Colo., Feb. 27, 2020 (GLOBE NEWSWIRE) -- PRESS RELEASE -- urban-gro, Inc., an engineering design services company that integrates complex equipment systems into high-performance indoor cannabis cultivation facilities around the world, has announced the closing and initial draw of its previously announced credit facility in the aggregate principal amount of US$6 million with an institutional lender.

“The closing of this financing and the receipt of funds allows us to remain laser focused on profitability and in delivering our best-in-class engineering design, services and complex systems to our customers,” said Bradley Nattrass, CEO and chairman of urban-gro. “We are pleased to be in such a strong position to continue serving the increasing demand we are seeing across North America and Europe.”

INFOR Financial Inc. acted as the exclusive financial advisor to the company in connection with this financing. For further details, please refer to the company’s news release dated Feb. 21, 2020.

Maine has announced plans to establish a new division within the state Drug Enforcement Agency to monitor cannabis regulatory compliance and illicit market activity, according to a local WGME report.

Maine Department of Public Safety Commissioner Michael Sauschuck said the division will be made up of four people and will be funded by cannabis tax and licensing revenue, the news outlet reported.

The announcement has sparked controversy among cannabis advocates, who say regulators should be trying to help businesses comply with state regulations instead of prosecuting them, according to WGME.

However, Maine Rep. Kent Ackley says the division’s threat of prosecution and fines will force the state’s illicit cannabis market to shut down, which will cut down on competition for the legal market, the news outlet reported.

Many moving parts are involved in cutting a deal in the cannabis sector—enough to make a dispensary or cultivation facility owner’s head spin. Processors and other industry stakeholders are also likely to have a long list of questions.

In part one of this Q&A, Claudio Miranda, co-founder of Guild Enterprises, breaks down the basics of what the industry needs to know about raising capital and consolidation trends. Check back for part two, on when to buy and sell your cannabis business and some specifics on the 2020 Cannabis Conference’s Deal-Making Summit, in which Miranda will provide detailed capital and M&A information for industry members.

Cannabis Dispensary: How should vertically integrated companies raise capital to further grow and expand?

Claudio Miranda: In general, I think a good theme for this whole event is going to be the fact that the capital markets are really dry right now. One way of answering that is more theoretically, like what are the theoretical ways one can raise money? The other side of that question is, what are the actual available ways that they can raise it today? Those lead to different answers because the capital is very hard to come by right now. It's very few and far between, and the hope is that once the capital markets free up again, we'll have a more diverse set of options for operators, let's put it that way.

Basically, I think the best way to do it right now, I would say, where we are seeing the most traction, is capital coming from multi-state operators. They tend to be ones that, at least on the face of it, seem to be most capitalized, and as multi-state operators, a lot of them are establishing more vertical infrastructure across multiple states. They have a team of people and the financial resources to help a vertically integrated company further develop that model, because again, it's a model that seems to be one that they're actively working on. That's a bit of a general statement. There are some MSOs that are just retail-only, but there certainly are some that are more vertically integrated in that regard. At least where we're seeing money coming from right now is from MSOs as one of the main sources.

Another option there is that we're just seeing a lot of private equity—more high net worth individuals or private equity groups that are coming together to get in the cannabis industry. The thing is there, for vertically integrated operation, they're very capital-intensive, as opposed to someone that just wants to, let's say, start a small mom-and-pop edibles brand. The capital requirements are very different. If you're vertically integrated, by definition, you're going to be spending a lot of money on CapEx for a grow, potentially for a retail space and, depending on how vertically integrated, for distribution infrastructure. It's very CapEx-heavy to undergo a vertically integrated plan like that. So, you can't be looking at small mom-and-pop investors, you can't be looking at angel investors that are singular because those types of investors tend to write small checks. What you're looking for, then, is you're going to have to have larger, more well-capitalized groups coming in that have an appetite for capital-intensive operations. And that, again, is why I went to the MSOs as kind of the best example of that -- or some of these private equity groups, or another example of that is like a SPAC, a special purpose acquisition company, that has raised $100 million-plus specifically for this purpose.

MSOs, SPACs tend to have kind of that larger capital structure and appetite … we're [also] seeing the group that's got behind Caliva ... [including] Joe Montana. [The industry is] bringing in a lot of NFL players, bringing in celebrities like P. Diddy, and between all of them you're aggregating tens of millions if not $100 million-plus. Again, that is the sufficient amount of capital to support a vertically integrated business in its growth.

President Trump’s 2021 federal budget proposal leaves out a long-running rider that has shielded state-legal medical cannabis businesses from interference on the part of the U.S. Department of Justice or the U.S. Drug Enforcement Administration. It’s an olive branch that’s been in place since 2014, a signal to businesses operating in the 33 states that have legalized medical cannabis that they’re safe from federal law.

Looking ahead to the next year, Trump’s actions on this budget proposal put those businesses at risk of federal prosecution. While the president has not come out as explicitly anti-cannabis, his rhetoric usually elides any real policy position.

“To those following this issue closely, the president’s latest move hardly comes as a surprise,” Justin Strekal, political director for NORML, wrote in a recent op-ed. “Despite Trump mentioning during his campaign that he supported medical marijuana and a general states-rights approach to cannabis policy, his presidency has consistently proven these words to ring hollow.”

The Congressional protection is an explicit mandate that the DOJ not spend any funds on the prosecution of medical cannabis businesses. Without that guarantee (and in the absence of the 2013 Cole Memo, which former Attorney General Jeff Sessions rescinded in 2018), there would be no accord between the state-legal cannabis industry and the federal government—not that there is anything particularly agreeable otherwise about that relationship.

The recent vaping-related health crisis prompted a crackdown at the FDA—at Trump’s behest—over flavored tobacco vape products. In the cannabis industry, there are concerns that this development might create an obstacle to any goodwill that Trump might previously have had for the state-legal market. He’d said in earlier news clips that he would be in favor of a states’-rights solution to the cannabis legalization question, going so far as to cut a tacit agreement with U.S. Sen. Cory Gardner (R-CO) over the matter. 

In a recent interview reported by Marijuana Moment, however, Marc Lotter, Trump’s reelection campaign communications director, told KLAS that the administration may take a harder stance against cannabis. “I think what the president is looking at is looking at this from a standpoint of a parent of a young person to make sure that we keep our kids away from drugs,” he said. “They need to be kept illegal, that is the federal policy. I think the president has been pretty clear on his views on marijuana at the federal level, I know many states have taken a different path.” 

The Vermont House of Representatives formally approved S. 54 on Thursday, advancing a bill that would set up a taxed-and-regulated marketplace for adult-use cannabis. The state bill now returns to the Senate, where an earlier version passed on a 23-5 vote.

Vermont legalized cannabis in 2018, but it has not yet formally developed the regulatory infrastructure needed for adult-use retail sales. According to a recent poll conducted by Public Policy Polling and commissioned by the Marijuana Policy Project, 76% of Vermont residents support a tax-and-regulate market structure for consumers who’d like to purchase cannabis.

Shayne Lynn is the founder and executive director of Champlain Valley Dispensary, a born-and-bred Vermont resident who’s been advocating for this sort of legislation going back at least 10 years. He cheered the state’s decision to legalize cannabis in 2018, but what he’s seen since then tells him that the time is now is move forward with more concrete reforms. Other states have gone on to kickstart adult-use sales (Massachusetts, Michigan, Illinois), and, in the fall of 2019, a vape-related health scare raised alarms over the untested cannabis marketplace.

“I think people really understand that the legacy market has some real challenges to it that can be deadly,” Lynn said. “So, how does Vermont get ahead of that and create a regulated program? The momentum is there.”

Both chambers have clearly expressed interest in getting this bill passed. Gov. Phil Scott, a Republican, has pushed back on previous conversations around legal cannabis, insisting that he needs guarantees to fund a state after-school program (via cannabis tax dollars), a provision that’s been added into the current bill. Scott’s other sticking point is roadside safety and law enforcement’s wish to perform saliva tests on drivers without a warrant (an amendment that was shot down during the Thursday hearing in the House).

READ MORE: The Marijuana Policy Project has published a detailed summary of the Vermont legislation 

Montpelier, VT — PRESS RELEASE — On Thursday, the Vermont House of Representatives completed its work on a bill that would legalize, regulate and tax cannabis sales for adults 21 and older. S. 54, which initially passed the House in a 90-54 vote yesterday, was approved in a voice vote on third reading. The bill now returns to the Senate, which has already passed it in a 23-5 vote. The Senate is expected to request a conference committee to work out differences with the House before sending a final version of the bill to Gov. Phil Scott’s desk.

This is the first time the Vermont House has passed a bill to legalize cannabis sales. A summary of the bill is available here.

Vermont legalized possession and cultivation of cannabis for adults 21 and over in 2018, marking the first time any state legislature legalized cannabis for adults’ use through the legislative process rather than through a voter initiative. However, Vermont remains one of only two U.S. jurisdictions where cannabis is legal but not regulated for adult use. If enacted, Vermont would join the 10 states that have laws regulating and taxing cannabis for adult use.

An overwhelming 76% of Vermont residents support allowing adults 21 and over to purchase cannabis from regulated, tax-paying small businesses according to a recent poll conducted by Public Policy Polling and commissioned by the Marijuana Policy Project. The complete results are available here.

The Marijuana Policy Project has been advocating for cannabis policy reforms in Vermont for more than 15 years. The state legislature passed a limited medical cannabis law in 2004, decriminalized possession in 2013, and has gradually improved its cannabis policies in the years since.

Virginia lawmakers have introduced new legislation to tweak the state’s medical program, including a bill that would allow nursing homes to administer medical cannabis, according to a local WTVR report.

Sen. Siobhan Dunnavant is sponsoring S.B. 185 to authorize caregivers at nursing homes, assisted living facilities and hospices to administer medical cannabis to patients who have been certified and enrolled in Virginia’s medical cannabis program, the news outlet reported.

Sen. David Marsden has also introduced a bill, S.B. 885, to eliminate criminal liabilities for analytical lab employees who transport and possess medical cannabis for work-related purposes, according to WTVR.

A similar bill introduced by Marsden, S.B. 1015, would eliminate cannabis possession charges for patients enrolled in Virginia’s medical cannabis program, the news outlet reported.

All three bills have advanced out of committee and will be considered on the House floor, according to WTVR.

Maine is still months away from launching adult-use cannabis sales, although regulators expect stores to start opening later this spring, once the state has an adult-use cannabis testing lab, according to a local WGME report.

The Office of Marijuana Policy has received 93 license applications for adult-use dispensaries, the news outlet reported, and roughly 80 of them are being considered for a conditional license.

However, cannabis must be tested before it is sold to the adult-use market, and although the state has six operational testing facilities for the medical cannabis market, it has not yet licensed any adult-use testing labs, WGME reported.

“At least four of [the medical testing labs] have expressed interest in moving into the adult use space,” David Heidrich, director of engagement and community outreach for the Office of Marijuana Policy, told the news outlet. “But today there are none.”

Regulators are currently processing one adult-use cannabis testing application, submitted by Kennebunk’s Nelson Analytical, but the application has not been officially approved, WGME reported.

PRESS RELEASE - Out of an abundance of caution, Deep Roots Medical LLC dba Deep Roots Harvest is initiating a voluntary recall of three lots of flower in response to a Nevada Department of Taxation Safety Notice Advisory 2020-05 issued on Feb. 21, 2020.

Kentucky lawmakers have introduced new legislation in the House that calls for more medical cannabis research, days after the full House approved legislation to legalize medical cannabis in the state.

The bill, backed by opponents of medical cannabis legalization, has cleared a Senate panel in a unanimous vote, according to a WKYT report.

The legislation says too many unknowns still exist regarding cannabis and its medical uses, and that more study is necessary before Kentucky launches a medical cannabis program, the news outlet reported.

The legislation now advances to the full Senate for consideration.

The medical cannabis legalization bill, H.B. 136, passed the Kentucky House Feb. 20 and will also proceed to the Senate for consideration.

Although federal prohibition complicates the ability for public research of cannabis, some researchers have reached potentially novel conclusions about the plant. Among the collective findings is an idea that, together, CBD, THC and other cannabinoids can produce an “entourage effect,” and the terms “indica” and “sativa” aren’t fail-safe in anticipating certain types of effects.

It’s in this climate that Wayne Schwind, founder of Periodic Edibles in Portland, Ore., and host of the Periodic Effects podcast, aims to gather knowledge and provide further education about cannabis.

We recently spoke with Schwind to see to get an update on cannabis science and how he and his brands are responding to the latest information.

Cannabis Dispensary: How can cannabinoid and terpene science help improve patient care and customer experiences?

Wayne Schwind: I think those two things are everything, honestly. If you know my background, I do have a business, but I also really focus on the science of cannabis. I think we're still a little ahead of the market. We do cannabinoids, terpenes on our label, but it's those two things—and there's some other compounds in cannabis—but to me, those two you've got to look at when you're selecting products for specific effects; everyone wants a certain effect when they consume cannabis. I think it's critical to get away from sativa, indica, those things that have no reliability, especially if you're talking about patients with some kind of ailment. [It’s] really important to know those different options, the different cannabinoids and terpenes, and customize your product or flower, whatever it might be, based on those.

CD: Periodic Edibles includes experiential surveys inside the wrappers of its caramels to engage customers and receive feedback on the effects from the terpenes and cannabinoids. What prompted that decision to include surveys?

WS: It’s hard to dial in [the effect]—especially when you start combining terpenes and cannabinoids and there's the entourage effect. Then on top of that, everybody's body is different, so myrcene might be relaxing to most people, but to some people, it may have a different effect. We label our products with a specific effect, and we keep it pretty simple, either “relaxing” or “uplifting.” Right now, there's no hard, black and white science that says this combination in an edible is going to affect you this way. We're trying to get an edible [to] say, “8% of people that consume our edible will feel this way.” We're playing with different strains, different combos. Just to take feedback directly from our customer is the best way we could figure out how to get some subjective insight into: Are people actually experiencing those effects or different ones? It's a really hard thing to figure out, and we just are constantly tweaking it to improve as we go.

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Montpelier, VT — PRESS RELEASE — On Wednesday, the House of Representatives voted in favor (90-54) of a bill that would legalize, regulate and tax cannabis sales for adults 21 and older. This is the first time the Vermont House has passed a bill to legalize cannabis sales.

S. 54 will now be scheduled for a final House vote, which is expected Feb. 27. If it passes there, it will return to the Senate, which has already approved a different version of the bill in a 23-5 vote. The House and Senate will have to agree on a final version of the bill before it can proceed to Gov. Phil Scott’s desk.

A summary of the bill can be found here.

Vermont legalized possession and cultivation of cannabis for adults 21 and over in 2018, marking the first time any state legislature legalized cannabis for adults’ use through the legislative process rather than through a voter initiative. If the bill is enacted, Vermont would join the 10 states that have laws regulating and taxing cannabis for adult use.

An overwhelming 76% of Vermont residents support allowing adults 21 and over to purchase cannabis from regulated, tax-paying small businesses according to a recent poll conducted by Public Policy Polling and commissioned by the Marijuana Policy Project. The complete results are available here.

When California launched its adult-use cannabis market, Ocean Cannabis Company set out to trade its clamshell-style plastic packaging for something more sustainable.

The company’s co-founders, husband-and-wife team Patrick and Mary Ersig, started their search at an industry trade show, only to find more plastic.

“Everything was so much plastic and so many layers, … and we hated everything,” Mary Ersig tells Cannabis Business Times. “Nothing stood out to us that was great. We’ve always been philanthropists at heart. We always wanted to do good for the community, so we were like, ‘Let’s find something else. Let’s do something else.’”

The Ersigs settled on a biodegradable paper packaging to house its pre-rolls and vape cartridges, but the search continued until they found Oceanworks.

“All the plastic that we use, they collect from floating on the shores of Haiti,” Ersig says. “They actually go out and collect the plastic and turn it into the pellets. … It’s so important because there’s so much plastic in the ocean. … I don’t want to contribute to that problem, especially in cannabis. We should be a green industry. We feel like we can do our part and we should all do our part to help save … the planet and our ocean.”

We're pleased to present a dynamite lineup of cannabis and hemp industry experts at Cannabis Conference 2020. You can see our full education schedule at cannabisconference.com and peruse our list of terrific speakers. 

We recommend acting fast: Registration rates increase after tomorrow. Feb. 28 will be the last day to get in at the lowest current prices ($400 off the walk-up rate).

We interviewed Janna Beckerman, professor and extension plant pathologist specializing in diseases of horticultural crops at Purdue University, to get a sense of what she's looking forward to presenting at Cannabis Conference 2020 and what she hopes attendees will take back to their businesses after the show. Here's what she had to say:

"Hopefully, they’ll become educated and not scared. I think this is one of these fields where people are very enthusiastic going in, and they can become quickly discouraged with some of the problems. I think the problems are to be expected, but they can be managed. You need to be patient and take the opportunity to learn, like this opportunity here. I hope they’ll come away feeling more confident in their ability to successfully grow their crop."

NEW YORK, Feb. 26, 2020 /PRNewswire/ -- PRESS RELEASE -- Surfside Solutions Inc., a provider of advertising and data solutions geared towards the cannabis industry, and Garden State Digital, LLC (dba "Good Harvest Co"), the data-led cannabis audience platform, have announced that they have completed an asset purchase agreement where Surfside has acquired all of the software, technology and other intellectual property related to the Good Harvest Co audience platform. As part of the agreement, Eric Meth will join Surfside as the Chief Strategy Officer.

Surfside works with customers across multiple industries, combining a single customer view with advanced audience modeling, media activation and cross-channel measurement. The company's proprietary technology unlocks new revenue streams for its partners by allowing them to monetize first party datasets to better understand and target their current and future customers.

Good Harvest Co allows brands and marketers to find and attract qualified segments of cannabis consumers through data-led shopper marketing. Through the Good Harvest Co platform, brands and dispensaries are connected to relevant consumers based on online and offline purchase data. With the acquisition by Surfside, these audiences will now be available immediately on the Surfside demand-side platform and within the Surfside data taxonomy for media activation. Further expanding Surfside's reach as it pertains to deterministic datasets and bridging the gap between the physical and digital worlds.

Eric Meth, CEO and founder of Good Harvest Co, notes, "As technology within the cannabis space continues to evolve and expand, customers are seeking solutions that not only solve current issues they're facing, but a trusted partner that will work with them to address future needs. Combining our expertise in the cannabis and shopper marketing verticals, with Surfside's established and leading technology in consumer intelligence, ensures that we're able to provide long term strategic value for our customers."

"This acquisition furthers our investment and commitment to the cannabis industry and unlocks new potential for companies to significantly increase profitability, gain a competitive edge, and utilize technology that has historically only been available in mainstream verticals," said Michael Blanche, co-founder of Surfside. "We know that companies in the industry are facing complex challenges when it comes to interacting with customers and we see compliance as a requirement, not a feature. We aim to provide businesses with technology that not only helps navigate this complex industry, but is cutting edge across multiple verticals, pioneering the next generation of consumer-centric solutions.

With three adult-use cannabis legalization bills pending in the legislature and strong support from the governor, lieutenant governor and the public, Pennsylvania should have no problem legalizing this year, but advocates say leadership in the legislature will likely block any proposals from advancing before the current two-year session ends in December.

Gov. Tom Wolf announced his support for adult-use cannabis legalization last fall alongside Lt. Gov. John Fetterman. Wolf then attended New York Gov. Andrew Cuomo’s Regional Cannabis Regulation and Vaping Summit in October, where the pair met with the governors of New Jersey and Connecticut in an effort to coordinate the states’ approach to cannabis policy reform.

Fetterman embarked on a recreational marijuana listening tour last year to get public input on the issue from all 67 Pennsylvania counties, and reported that he found strong public support for legalization.

Lawmakers took notice of the momentum.

Pennsylvania Rep. Jake Wheatley has announced plans to introduce the state’s newest legalization proposal in the form of House Bill 2050. The legislation aims to lower the initial application and licensing fees in an effort to make the market more accessible for businesses, and would impose a 10% wholesale tax on business-to-business transactions, although cannabis growers and processors that have partnered with an existing Pennsylvania farm would be exempt from the tax.

Michigan’s Lake Superior State University (LSSU) launched Cannabis Chemistry and Cannabis Business majors in the fall of 2019, and on Feb. 21, the university held a ribbon cutting for the opening of a new cannabis research center, which will provide hands-on training for students in the Cannabis Chemistry program, according to an MLive.com report.

The 2,600-square-foot Cannabis Center of Excellence will help train undergraduate students through “hands-on, innovative experience using state-of-the-art instrumentation and industry protocols,” the news outlet reported.

LSSU students can earn an associate’s or bachelor’s degree in the chemistry program, and a bachelor’s degree in the business program, according to MLive.com, and graduates from the chemistry program are expected to be in high demand for safety labs and quality assurance positions in the cannabis industry and beyond.

LSSU is not the only Michigan university with cannabis programs, MLive.com reported—Northern Michigan University launched a Medicinal Plant Chemistry program in 2017, and the University of Michigan in 2019 launched PharmSci 420, a course that covers cannabis biology, chemistry, pharmacology, toxicology, epidemiology and pharmacokinetics.

The Massachusetts Cannabis Control Commission has announced plans to hire additional staff in order to cut the average wait time for cannabis business licenses from 121 days to 60 days, according to a MassLive.com report.

The agency unveiled its plan at a Joint Ways and Means Committee budget hearing Feb. 24 to address one of the most common complaints from prospective cannabis entrepreneurs, the news outlet reported.

The commission plans to achieve its goal in its 2021 fiscal year and will take a total fiscal 2021 operations budget of $12.4 million, a $2.8-million increase from last year, MassLive.com reported. The total budget request is $16.3 million, which includes regulation of the medical cannabis program and a statewide public awareness campaign, according to the news outlet.

The commission launched in 2017 and to date, has licensed 246 cannabis businesses, MassLive.com reported.