MjLink Cannabis Business News and Press

Nevada’s cannabis sales took a minor dip in fiscal 2022, but the state’s licensed industry still generated more than $152 million in wholesale and retail excise taxes, most of which will go into the State Education Fund (SEF).

Overall, adult-use and medical cannabis dispensaries combined to ring in more than $965 million in taxable sales for the 12-month period ending June 30, the Nevada Cannabis Compliance Board (CCB) and state Department of Taxation announced Sept. 30. That statewide total represents a 3.8% decrease from the $1-plus billion in sales from fiscal 2021.

In large thanks to the tourism appeal in Las Vegas, Clark County accounted for $754 million in cannabis sales for fiscal 2022, representing more than 78% of the total sales for the state. The city’s forthcoming cannabis lounge industry will only grow that appeal, with CCB officials set to open a two-week licensing window for lounges on Oct. 14.

RELATED: Cannabis Lounges Likely to Broaden Las Vegas Tourism Appeal

Of fiscal 2022 tax revenue, the entirety of the $89.3 million generated from the 10% cannabis excise tax on adult-use retail sales will go into the SEF school funding, a directive that came from Senate Bill 545, which Gov. Steve Sisolak signed into law in 2019. Previously, that revenue went toward the state’s rainy day fund.

Another roughly $58 million of industry revenue from fiscal 2022 also will go into the school funding. That revenue is from the $63 million generated from the state’s 15% cannabis excise tax on wholesale (both adult-use and medical), along with civil penalties, licensing and other fees collected through the regulated industry. The remaining $5-plus million went toward operating costs for the CCB.

October 4, 2022 – PRESS RELEASE – Canapa by Paxiom is proud to announce that its Pre-CheQ Analyzer from WeighPack Systems has been awarded the NTEP Certificate of Conformance from the National Conference on Weights and Measures.

After rigorous, repetitive testing of the Pre-CheQ and its electro-magnetic force restoration (EMFR) weigh cell technology, the NCWM issued this prestigious certificate within their Accuracy Class II, used for laboratory weighing of products ranging from cannabis to precious metals.

Engineered to accurately weigh product to 0.001g, the Pre-CheQ weighs product after the weigh filling stage to ensure weight accuracy just prior to product packaging. If the products falls above or below the target weight, it is sent to an accumulation bin for reuse. This type of precise measurement closer to the final container is preferred over other systems that use less accurate strain gauge load cells to weigh individual weigh buckets prior to product dispensing.

Designed to check weigh products directly above the package prior to filling, the Pre-CheQ Analyzer, and its ultra-precise EMFR weigh cell technology, is perfectly suited to weigh cannabis flower, gummies, capsules and other products with seamless integration into bagging and container filling systems.

This compact, modular check weigher also features stainless-steel frame construction, toolless removable re-accumulation and real-time reporting with data export to both USB and seed-to-sale software.

In many ways, this year has been a favorable one for hemp harvests in Holtwood, Penn., says Steve Groff, owner of Cedar Meadow Farm.

He hasn’t run into any issues with weather, which can not only delay harvest, but also damage crops and breed disease. But inevitably, harvesting hemp for three different end uses comes with its challenges.

Groff is a third-generation farmer who has grown a variety of crops, from tomatoes to row crops. He uses regenerative techniques on his farm, including cover crops and no-till practices (which led to him writing a book, “The Future-Proof Farm”). This year, Groff planted less than an acre of hemp for CBD, 5 acres for fiber and, for his first time growing the hemp trio, 2 acres for grain.

With decades of experience farming, Groff has learned how to get creative with his processes while using equipment that’s easily available to him. When it comes to harvesting hemp, “I don’t have any special formula–I just do what works for me,” Groff says.

Harvesting CBD

Since he began growing hemp for CBD in 2019, Groff has pivoted his focus from growing many plants–at one point, 20 acres’ worth–to scaling down and creating and honing his Cedar Meadow Farm CBD brand instead, which includes CBD topicals, tinctures (for both humans and pets) and more.

Highsman and Ball Family Farms have partnered for an exclusive cultivar release, Ricky Baker.

The cultivar name, like all of Ball Family Farms’ cultivars, stems from a movie character – this reference being 1991 film “Boyz N The Hood.” Ricky Baker was pheno-hunted by Highsman founder and president Ricky Williams and features limonene and linalool as part of its terpene profile.

The collaborative cultivar will be available in retail stores across California beginning Saturday, Oct. 8.

“We are thrilled to be one of the few brands that Ball Family Farms has joined forces with,” Williams said. “Chris [Ball] is a pioneer in the cannabis space, overcoming obstacles and transitioning to a truly grassroots legal operation. We are proud to collaborate on a product that gives back to those persecuted for cannabis-related offenses and leads the next generation of Black cannabis entrepreneurs.”

RELATED: From Heisman Winner to Highsman Owner

The majority of those who offered their perspectives on medical cannabis in Kentucky support legalization, according to a summary of feedback gathered by the state’s Medical Cannabis Advisory Committee.

Gov. Andy Beshear released the summary Sept. 30 after committee members traveled the state and heard Kentuckians’ views on the issue.

“Polling suggests 90% of Kentucky adults support legalizing medical cannabis,” Beshear said in a public statement. “Our team traveled the state to talk directly to Kentuckians, and they found our people do indeed overwhelmingly support it. I appreciate the work of those who participated, and I am taking this information into consideration as I analyze what steps I can take to legalize medical cannabis for those suffering from chronic, debilitating medical conditions.”

The Kentucky House approved legislation in March to allow doctors to prescribe medical cannabis by Jan. 1, 2023, for a specified list of qualifying conditions. The proposal, Republican Rep. Jason Nemes’ House Bill 136, ultimately stalled in the Senate, prompting Beshear to consider an executive order to legalize medical cannabis.

RELATED: Kentucky Governor Takes Issue With Senate Inaction on Medical Cannabis

CHICAGO, Sept. 30, 2022 –PRESS RELEASE – Verano Holdings Corp., aleading multistate cannabis company, announced the launch of its second annualcampaign supporting the Lynn Sage Breast Cancer Foundation for Breast CancerAwareness Month. Starting Oct. 1, Verano began a fundraising campaign acrossthe company’s flagship retail brands, Zen Leaf and MÜV dispensaries, located inConnecticut, Illinois, Florida, Maryland, Michigan and New Jersey. The campaignwill continue through the end of October.

As part of the dispensary-led punchcard campaign, cannabis customers will have the opportunity to both enjoy theirfavorite medical and adult-use cannabis products and support the fundraisingcampaign. The company will facilitate a donation to Lynn Sage Breast CancerFoundation upon each customer’s punch card being completed, and customers willreceive exclusive rewards with each purchase.

“We are thrilled to once againpartner with Verano during October and Breast Cancer Awareness Month,” saidMeredith Soren Freese, chair of Lynn Sage Breast Cancer Foundation. “We arelucky to call Verano a partner and friend as we work together as part of ourPurchase 4 Pink campaign to advance research and education because hours in thelab and the brightest minds mean longer, healthier lives.”

“We are proud to partner with LynnSage Breast Cancer Foundation for the second year in a row and continuehighlighting their important work in research, education and prevention,” Veranofounder and CEO George Archos said. “Our team members, patients and customerswere proud to unite in support of a successful campaign in 2021, and lookforward to joining together once again to advance the fight against breastcancer throughout October.”

Verano’s partnership with Lynn SageBreast Cancer Foundation began in October 2021 with the inaugural launch of itsdispensary punch card program in support of Breast Cancer Awareness Month. Theresults exceeded expectations, with 7,000 dispensary visitors participating. Tolearn more about the Lynn Sage Breast Cancer Foundation, visit www.lynnsage.org.

Git Skoglund, a Swedish textile researcher, journalist and Cannabis Business Times columnist, has published a new book exploring hemp weaving and textiles.

“Cannabis Textiles: In Hemp Garden Cultures” explores both traditional and manually manufactured hemp textiles production from seed to shelf. The book also shares ways to distinguish hemp fibers and fabrics from textiles made of similar plants, such as hop, flax and cotton.

RELATED: Hemp Denim Jeans Are Making a Comeback in France

Skoglund pulled from extensive historical research, lab studies, as well as her travels to Europe and Asia to author the book.

Robert C. Clarke, an ethnobotanist, plant breeder, textile collector, co-founder of BioAgronomics Group and CBT columnist, edited “Cannabis Textiles.”   

Missouri prosecutors have come out against Amendment 3, an adult-use cannabis legalization measure that will go before voters in the November election.

The Missouri Association of Prosecuting Attorneys have issued a position paper on the proposed constitutional amendment, calling it “nothing more than thirty pages of mischief,” according to the St. Louis Post-Dispatch.

The prosecutors claim in the position paper that if someone were charged or convicted of killing someone while driving under the influence of cannabis, “Amendment 3 attempts to prohibit our courts from stopping that driver’s continuing use of marijuana,” the news outlet reported.

The association went on to say that legalization should not be enshrined in the Missouri Constitution, according to the St. Louis Post-Dispatch, and that it is “bad government.”

“Think how often you have heard about a law that had a problem and had to be fixed or changed—it happens all the time,” the prosecutors said, according to the news outlet. “If any part of the law is invalid or does not do what it was supposed to do, our Legislature is powerless to fix it except to send the amendment back for an expensive statewide election.”

Cannabis businesses operating in unincorporated areas of San Luis Obispo County, Calif., will soon have to adhere to a new tax compliance program.

The county’s Board of Supervisors approved changes to the program Sept. 13, according to a press release, including a new required fee that will take effect Oct. 14.

The changes require every county cannabis business licensee to pay a Cannabis Tax Compliance fee of $3,918 upon license issuance, and each year when the license is renewed, according to the release.

The new fee is in addition to the required annual business license fee, which is currently $44 per new license and $34 per license renewal.

The Board of Supervisors also voted Sept. 13 to eliminate the California Cannabis Authority (CCA) fee, according to the press release, and cost recovery for the CCA is now included in the Cannabis Tax Compliance fee.

Michigan regulators are warning the state’s cannabis licensees of an increased number of scams targeting their businesses.

The Cannabis Regulatory Agency (CRA) issued a Sept. 30 advisory bulletin notifying businesses that fraudulent activity against licensees increased in August and September.

The incidents have the following similarities, according to the CRA’s announcement:

Regulators advise licensees to have their staff verify the validity of calls and texts with a manager or owner before processing the order, as well as verify the address for delivery.

The bulletin also reminds licensees that regulations require cannabis businesses to notify the CRA and local law enforcement within 24 hours of becoming aware of the theft or loss of any product or criminal activity.

Former Ascend Wellness Holdings’ (AWH) CEO Abner Kurtin released a statement saying charges have been dropped against him after he was arrested Sept. 6 on a misdemeanor battery charge in Southern Florida.

RELATED: Ascend Wellness CEO Arrested, Charged With Domestic Battery

Abner released a public statement Sept. 30 regarding the charges: “Today, the charges against me were dismissed by the City of Miami Beach. My partner and I were involved in a verbal argument that was never physical at any point. I have apologized to her privately for my verbal actions, and we both moved on with our relationship in a positive manner.”

According to Miami Dade’s Clerk of Courts, a hearing was scheduled at 9:45 a.m. Sept. 30. Cannabis Business Times was not able to verify the information with the Miami Dade Clerk of Courts, as results of the hearing were not immediately available.

"I want to thank the Miami Beach police who acted appropriately at the time and did their job as police officers. Domestic violence is a problem in our society and should not be tolerated. Florida has put in place among the strictest mandatory arrest laws in the country to allow time to protect victims and diligence the circumstances. I thank the police officers again for their unwavering commitment to upholding the law and protecting the lives of many.

Advocates behind Florida’s 2024 adult-use cannabis ballot initiative are hoping to avoid the same fate as a pair of 2022 measures: rejection from the state’s Supreme Court.

In both cases, the state’s justices ruled in 5-2 decisions that the attempts to legalize adult-use cannabis were misleading to voters and were not sufficient to appear on this November’s ballot.

On the heels of those judicial hiccups, Tallahassee-based multistate operator Trulieve and country music duo The Bellamy Brothers have teamed up to back the 2024 “Adult Personal Use of Marijuana” petition via the Smart & Safe Florida political committee. David Bellamy chairs the committee, and Trulieve is driving it financially through $10 million in contributions so far.

RELATED: Trulieve Deposits Another $5 Million Into Florida 2024 Initiative

But what’s stopping the Florida Supreme Court from shutting down the pipeline to the ballot yet again? The secret is in simplicity, Jonathan Robbins, chair of Akerman LLP’s national cannabis practice, told Cannabis Business Times.

“I think they kept it very simple for that reason,” said Robbins, whose Florida-based firm represents Trulieve and many other of the state’s 22 Medical Marijuana Treatment Centers (MMTCs), as well as other companies hoping to gain access to the state’s medical program. MMTC is the overarching term for a vertically integrated business in Florida.

Northampton, Massachusetts – Sept. 29, 2022 – PRESS RELEASE – The Source+, an award-winning cannabis company with five dispensaries across Nevada and Northampton, Mass., has announced Brett Sprau as its director of Massachusetts. In this role, Sprau brings nearly a decade of cannabis industry experience to bring the company’s first East Coast dispensary to life.

“We are very fortunate to welcome Brett as our director and for his leadership in expanding our footprint to Massachusetts,” said CEO of The Source+, Steve Haffer. “His dedication to innovative ideas in the cannabis industry is unprecedented and we are confident that he will be a driving force in the company’s future.”

Sprau joined The Source+ in 2018, having established himself as an entrepreneur and leader in cannabis throughout Colorado, Pennsylvania and Massachusetts. Sprau founded the first wholesale cannabis cultivation center in Southern Colorado, Colorado Leaf, in 2014; and designed one of the most popular turn-key cannabis greenhouse models in the world, now sold as the Nexus 420 hybrid greenhouse. Sprau has been recognized by numerous cannabis publications, including Marijuana Venture Magazine, for his knowledge and experience with greenhouse growing and LED fixtures.

“I am thankful to join this incredible team at The Source+, helping the company to further expand its East Coast footprint,” said Sprau. “The Source+ is committed to providing top-quality cannabis products in an inclusive atmosphere for its customers and I’m thrilled to help bring these to the Western Massachusetts market at accessible prices.”

In addition to overseeing operations and his vital insights in bringing the company’s first East Coast dispensary to life, Sprau is responsible for executing marketing plans, placing orders, setting prices and monitoring sales analytics. He also oversees all legal and compliance components for The Source+ in Massachusetts, as well as supporting community outreach initiatives. Sprau holds a bachelor’s degree in marketing and management from Pennsylvania State University and a juris doctorate from the Widener University School of Law, with a certificate of focus in business. He is committed to making The Source+ a market leader with brand recognition throughout the East Coast.

A new study has revealed that adult-use cannabis legalization could give Arkansas’ economy a major boost as voters prepare to make their voices heard on a legalization measure that will appear on the state’s November ballot.

The study, prepared by the Arkansas Economic Development Institute for Responsible Growth Arkansas, the group behind the ballot measure, projects annual adult-use sales averaging as high as $681.7 million.

Total cannabis sales in the state, including medical sales, could reach $984 million by 2027, according to the report, with state and local tax revenue increasing by $460 million within the same timeframe.

RELATED: Arkansas Medical Cannabis Sales Top $23 Million in August

“That includes both the indirect effects that are based on the business buying from suppliers, paying employees … and then the induced effects where the employees who are now earning income spend money in the rest of the markets," Michael Pakko, the chief economist for the Arkansas Economic Development Institute, said during a Sept. 28 news conference, according to a KUAR report. "So, it has a ripple effect throughout the economy.”

Japan may soon allow the import and use of medicinal cannabis products.

A Japanese health ministry panel on Thursday recommended amending the country’s drug laws in an effort to meet both citizens’ medical needs as well as evolving international standards, the committee said in a report. Under the recommended revision, medical cannabis products would be subject to the same safety and efficacy laws governing medical and pharmaceutical standards.

While cultivating, importing, selling, and possessing cannabis are all currently criminal offenses in Japan, consumption is legal. CBD products produced from stalk or seeds, specifically, are also legal.

The panel also noted in its report that only 1.4% of Japanese citizens had ever consumed cannabis, compared to 20-40% in Western countries. A Gallup Poll published in August indicated nearly half (48%) of U.S. adults report ever having tried cannabis.

RELATED: With 209 Million Cannabis Users Worldwide, UN Drug Report Delves Into Legalization Impacts

While Japan may consider medical cannabis legislation, its stance towards adult-use cannabis remains strict. Japanese authorities made 5,482 cannabis-related arrests in 2021, more than triple the amount of cannabis arrests made in 2014, according to Statista.

SALINAS, Calif., Sept. 29, 2022 (GLOBE NEWSWIRE) -- PRESS RELEASE -- Lowell Farms Inc., a California-born innovator in cannabis cultivation and maker of the iconic Lowell Smokes brand, is announcing the commercial availability of its much anticipated: Lowell 35’s, available at select dispensaries across California.

“We see the 35’s as putting an end to the compromise between convenience and quality within cannabis,” said George Allen, Chairman. “The 35’s are made for people who love to smoke. These new prerolls rival the taste and flavor of raw flower while also matching the convenience of a vape pen.”

The packaging for Lowell’s new 35’s is innovative and responsible–paper based–small, lightweight, and is easy to fit into a pocket.

Lowell 35’s preroll will hit retailers throughout California beginning at 5 p.m. on Thursday, Sept. 29. To celebrate the launch, participating dispensaries will be selling 35’s for just $1 to the first 100 customers at each location. A full list of locations can be found here.

More information about Lowell Farms Inc. brands can be found at lowellfarms.com.

The possibilities of being one of New York’s first adult-use cannabis retail operators attracted the likes of 903 applicants seeking to enter the forthcoming market, the state’s Office of Cannabis Management (OCM) announced Sept. 28.

The conditional adult-use retail dispensary (CAURD) licenses will “create countless opportunities for our communities and future,” OCM posted on social media Wednesday.

The 903 applications were submitted during a one-time, one-month window that closed Sept. 26, with OCM officials planning to approve up to 150 CAURD licenses they plan to distribute to 14 regions throughout the state. The number of licenses in each region is based on population.

RELATED: New York Announces Number of Conditional Adult-Use Dispensary Licenses, Separated by Region

The CAURD licenses are reserved for businesses owned by justice-involved individuals “at the bedrock of New York’s adult-use cannabis market,” according to OCM. Specifically, applications were limited to those criminalized under prohibition or those who have a direct family member convicted of a cannabis-related offense prior to March 31, 2021 (the date former Gov. Andrew Cuomo signed the Marijuana Regulation and Taxation Act into law).

OCM officials are also limiting CAURD licenses to those who have experience owning and operating a successful business in the state.

In the weeks following her appointment as chair of the Massachusetts Cannabis Control Commission (CCC), Shannon O’Brien’s personal and financial stake in a state-licensed cannabis business has come to light.

As the Boston Herald reported Sept. 28, O’Brien is listed as “owner/partner” of Greenfield Greenery in that company’s 2020 application for a cultivation license. Greenfield, a city in western Massachusetts, held a zoning board meeting in June 2021, at which O’Brien represented herself as CEO of the business. 

Greenfield Greenery holds a provisional license from the state. But the decision to award Greenfield Greenery with a final license rests on an upcoming inspection of the operations, and a vote by the CCC, the very regulatory body now helmed by O’Brien.

Furthermore, O’Brien is listed as an “adviser” on Charlemont FarmWorks’ cultivation business license application. That company, too, holds a provisional license as of September 2022.

O’Brien arrives as the chair of the CCC following her tenure as former state treasurer (1999-2003), former state senator (1993-1995) and former state representative (1987-1993). She lost the 2002 gubernatorial election to Mitt Romney.

As chair of the CCC, O’Brien’s salary is listed at $181,722.

STONEHAM, Mass., Sept. 29, 2022 – PRESS RELEASE – Theory Wellness announced plans to enter the Vermont adult-use cannabis market with a retail location in Brattleboro. The announcement comes on the eve of adult-use cannabis sales, expected to begin as early as Oct. 1. Vermont will soon become the fourth East Coast state to offer adult-use cannabis sales, joining the likes of Massachusetts, Maine and New Jersey.

RELATED: 3 Vermont Dispensaries to Begin Adult-Use Sales at Their Discretion

Theory is no stranger to emerging adult-use cannabis markets, being one of the first in Massachusetts and opening on day one of adult-use cannabis sales in Maine. However, unlike in the other states, the company intends to focus on retail, a pivot from its vertically integrated models in surrounding markets. 

"Vermont is one of the most interesting regulatory models on the East Coast for cannabis. The emphasis on streamlined licensing for craft farmers will allow for a terrific mix of top-quality products in our dispensary,” Theory CEO Brandon Pollock said. “By focusing on retail, we look forward to showcasing to our customers this unique network of local cultivators, many of which have been producing high-quality flower for years.”

As of today, the Vermont Cannabis Control Board has approved over 200 licenses for cultivation sites across the State. Theory looks forward to serving customers with its location at 768 Putney Road, currently under construction. The location will add new jobs to the town in addition to contributions relating to the 14% in excise taxes on sales.

While there is no official opening date for their Brattleboro dispensary, the company expects to be operational this fall. Its progress and status of the retail location can be found on the company’s website. 

A Las Vegas-based cannabis testing facility with a history of allegedly inflating THC potencies and manipulating microbial and heavy metal test results is now facing a $62,500 fine and a nearly 10-year ban from the industry for violations dating back to 2019. 

Nevada Cannabis Compliance Board (CCB) members unanimously voted during their regular meeting Sept. 27 to deny two motions by Cannex Nevada LLC (now doing business as LettuceTest LCC) to dismiss disciplinary action against the company.

In a 44-page complaint CCB filed in January 2021, state regulators claimed that Cannex failed to fix “systemic issues cited over multiple years of inspections, several of them repeat offenses.”

Specifically, regulators detailed 22 violations found during a December 2019 investigation and the continued review of laboratory records. Among those violations, Cannex was allegedly engaging in practices designed to inflate THC potency for select clients—a “repeat violation” from December 2017, when Cannex had its license suspended. Cannex last renewed its state license in July 2020 as both a medical cannabis and adult-use cannabis testing facility in Nevada.

On behalf of LettuceTest/Cannex, attorney Kimberly Maxson-Rushton, a partner at Cooper Levenson, argued during a CCB special meeting Sept. 15 that every one of the testing facility’s alleged violations in question occurred in 2019, when the Marijuana Enforcement Division (MED) was the state’s regulatory body for the industry (before the CCB’s formation).

Maxson-Rushton said the testing facility demonstrated compliance and met a statutory standard via a corrective action plan with MED officials, and therefore the CCB members should dismiss their current complaints—made in 2021—because they mirror what was already corrected.