MjLink Cannabis Business News and Press
MIAMI and HARTFORD, Conn., Sept. 08, 2022 (GLOBE NEWSWIRE) -- PRESS RELEASE -- Ayr Wellness Inc., a vertically integrated U.S. multi-state cannabis operator, announced that Connecticut Cultivation Solutions, an entity co-owned by Tiana Hercules Esq., a Hartford City Councilwoman, and Ayr, has been awarded a provisional Disproportionately Impacted Area (DIA) cultivator license in Connecticut.
Ayr has partnered with Hercules to bring its cultivation experience, knowledge and access to capital. The Company owns a minority stake in Connecticut Cultivation Solutions.
Connecticut Cultivation Solutions aims to serve Connecticut communities at large, particularly those negatively impacted by cannabis prohibition. Ayr and Attorney Hercules have already partnered on a handful of social justice and social equity projects throughout the state. The initiatives include support of the Bridge to Morehouse Program which creates a pathway for Hartford based community colleges to transfer seamlessly to the prestigious Atlanta HBCU, Morehouse College, and a partnership with UConn School of Law, NAACP, and Capital Community College to host a free expungement clinic.
“Ayr’s commitment to social justice and social equity initiatives and commitment to the areas where they operate made them the ideal partner to work with,” said Hercules. “While I previously explored other social equity license opportunities, it became clear once I met Ayr that this partnership would enable me to accomplish my social equity goals. The experience they bring to the table in cultivation and access to capital are crucial to operating in a competitive landscape. I look forward to working with Ayr to build out our cultivation operations and subsequent retail locations in conjunction with this license.”
“Having the opportunity to partner with someone like Tiana is one of the most rewarding parts of working in the cannabis space,” said Jonathan Sandelman, founder and CEO of Ayr. “We’re grateful to be in a position to support her dream, while also expanding into a new state that seamlessly fits into our operating footprint. We look forward to working with Tiana as we build out the Connecticut footprint together.”
Massachusetts Treasurer Deborah Goldberg announced last week that former state Treasurer Shannon O’Brien has been appointed as the new chair of the Cannabis Control Commission (CCC), according to CommonWealth Magazine.
O’Brien was sworn in Sept. 1, on the fifth anniversary of the commission’s founding, the news outlet reported.
“I am confident that her financial background, experience in corporate governance, executive management, and business development, combined with outstanding leadership skills and an acute knowledge of the legislative process, will help the Massachusetts cannabis industry be fairly regulated, equitable, and successful,” Goldberg told CommonWealth Magazine.
The CCC announced in May that former Chairman Steve Hoffman had resigned in late April and that Deputy Treasurer Sarah Kim had been appointed as the interim chairwoman.
An extreme heat wave in California has led the Department of Cannabis Control (DCC) to request that those who hold cannabis licenses consider engaging in energy conservation efforts.
California Gov. Gavin Newsom issued a state of emergency Aug. 31, stating that temperatures throughout the state are expected to exceed 110 degrees in some areas. The National Weather Service also issued excessive heat warnings and watches beginning Aug. 31 and ending Sept. 6.
The state of emergency states that the heat wave is and will “continue to put significant demand and strain on California’s energy grid.”
In addition, the heat wave is expected to be a “West-wide event, meaning that energy demand will be high across the region, and California will have limited ability to import energy from out-of-state,” the document states.
In response to the state of emergency, the DCC issued an alert to cannabis license holders Sept. 6, requesting for them to think about reducing their energy loads by:
Between Aug. 30 and Sept. 6, the California Independent System Operator issued several emergency alerts regarding energy conservation efforts and expects that “future emergency alerts may follow,” the state of emergency states.
An appeals court has sided with the state of Nebraska in medical cannabis advocates’ legal battle to ease the state’s ballot requirements.
The 8th U.S. Circuit Court of Appeals rejected a request Aug. 31 to temporarily block part of Nebraska’s ballot initiative petition process that requires petitioners to gather signatures of 7% of registered voters—and at least 5% of voters in at least 38 of the state’s 93 counties—in order to enact a statute, according to the Associated Press.
The lawsuit, filed in May by Nebraskans for Medical Marijuana, sought to overturn the 5% requirement, which some have argued gives disproportionate power to the state’s smallest counties.
RELATED: Nebraskans for Medical Marijuana Sues State to Ease Ballot Requirements
A federal judge granted a preliminary injunction in the case in June to block the Nebraska Secretary of State from enforcing the 5% rule, but state officials immediately responded with plans to appeal the decision.
As Michigan’s cannabis industry rapidly matures, the state’s education and labor markets are meeting the needs of the burgeoning new industry.
Western Michigan University, located in Kalamazoo, Michigan, is offering a new cannabis marketing course starting in spring 2023. The course will be offered through WMU’s Haworth College of Business and is intended to equip students with the necessary skills to enter the cannabis industry, according to a release.
“The industry growth and accelerated national legalization are creating new jobs in a robust fashion,” said Dr. Kelly O’Reilly, chair of WMU’s department of marketing. “In cannabis marketing, it is essential to have complete knowledge of the supply chain, cultivation, cannabinoids, history, trends in consumers usage, health benefits, how food and cannabis cultures intersect, and the importance of state tax revenue. This knowledge will help differentiate our students from those from other universities. We expect cannabis marketing to help us continue to solidify our place in the industry for retailer and producer collaboration research.”
The course will be taught by Dr. Russell Zwanka, director of WMU’s food marketing program and associate professor of marketing, and will focus on several key areas of interest in cannabis, including history of the plant, consumer traits, ethical and responsible marketing, retail channels, and more. Zwanka has done extensive research in the cannabis market, including working on three books about THC and CBD, three published academic papers, two student-led research projects and more, according to the release.
Both undergraduate and graduate students will be able to register for the cannabis marketing class, with flex options for either in-person or online attendance one night per week.
“This is a rising business that is changing on a daily basis. It’s an exciting place for consumer goods and retailing where we can show thought leadership and training,” Zwanka said. “This is extremely important to food marketing, as well as supply chain management and sales and business marketing majors, in addition to MBA students in these fields.”
]]>September 6, 2022 – PRESS RELEASE – Canapa by Paxiom has added to its lineup of automated preroll solutions by introducing the first preroll tube loading and tray loading systems available on the market.
Fully customizable to meet the exact needs of their preroll clients, both systems integrate seamlessly with the JuanaRoll preroll machine as well as other brands of semiautomatic machines and manual joint filling processes.
When paired with the fully automatic JuanaRoll, the tube loading system uses their intelligent elevating conveyor to automatically convey prerolls up to their inspection conveyor to be inspected and check-weighed prior to being robotically or manually loaded into tubes, capped and sealed. For those operations using semiautomatic or manual preroll filling processes, Canapa has designed this system to be manually fed or partnered with a SCARA robotic preroll loader.
Their preroll tray filling solutions apply the same principle as the tube loading system. Prerolls are conveyed, weighed and inspected prior to being delicately placed into the client’s tray by a customized SCARA robot. This system is driven by their Vision camera system to ensure precise preroll placement into the designated tray packing pattern.
With additional system options available for labeling, bagging, cartoning, case packing and robotic palletizing, Canapa by Paxiom can provide complete A-to-Z automation options that will improve efficiency, increase production and decrease product waste for any preroll producer.
Ascend Wellness Holdings CEO and Chairman Abner Kurtin was arrested Sept. 6 on a misdemeanor battery charge in Southern Florida, according to the Miami-Dade County Clerk of the Courts.
Kurtin, 55, who founded the New York-based multistate operator, was released on a $1,500 bond and issued a stay-away order with pretrial conditional victim contact allowed, according to the Miami-Dade Clerk.
Ascend issued a public statement Tuesday evening acknowledging the incident.
“The company is aware of allegations against CEO, Chairman, and Founder Abner Kurtin regarding a domestic-related misdemeanor,” Ascend officials said in the release. “The independent members of the company’s Board of Directors, through its Compensation and Corporate Governance Committee, are conducting an investigation of the matter with the assistance of independent legal counsel, Goodwin Procter, LLP.”
Abner’s arraignment hearing is scheduled for Sept. 30, according to the Miami-Dade Clerk.
“While the company cannot comment on an active investigation, it is treating this matter with the utmost seriousness and will continue to evaluate appropriate steps as more information becomes available,” Ascend officials said. “The independent members of the board are keenly attuned to the company, its shareholders, and employees, and the management team is focused on ensuring AWH continues to operate effectively during this time.”
HEXO Corp. is partnering with Tyson 2.0 to become its exclusive producer in the Canadian market.
Under the partnership agreement between the two companies, HEXO will produce Tyson 2.0’s range of products in Canada, including flower, prerolls, vapes and edibles.
RELATED: Organic Remedies MO, Inc. Announced Strategic Partnership with Tyson 2.0
“We’re delighted that HEXO has been chosen as the exclusive Canadian producer for Tyson 2.0 brands,” said Charlie Bowman, CEO of HEXO. “Our boutique cultivation capabilities and product offerings enable HEXO to elevate the consumer’s cannabis experience. With their broad product range from flower to straight edge prerolls to edibles, the Tyson 2.0 brand fits perfectly into HEXO’s market-leading portfolio.”
Tyson 2.0’s HEXO-produced lines will launch in Canada this fall, according to a company release.
“Our partnership with HEXO allows us to deliver Tyson 2.0’s vision of a premier cannabis experience to Canadians,” said Chad Bronstein, co-founder, president and chairman of Tyson 2.0. “Tyson 2.0 is dedicated to bringing innovative cannabis products to market and HEXO’s strong reputation as the leader in quality standards made them the obvious choice in Canada.”
CHICAGO--(BUSINESS WIRE)--PRESS RELEASE--Cresco Labs, a vertically integrated multistate operator and a U.S. wholesaler of branded cannabis products, today announced that it has completed and closed on an agreement to sell its Brookville, Penn. property to Aventine Property Group for total additional non-dilutive funding of $45 million. The Brookville, Penn. property includes approximately 135,000 square feet of existing cultivation, manufacturing and production capacity. This sale marks Cresco Labs’ first sale-leaseback transaction with Aventine.
Concurrent with the closing of the sale, Cresco Yeltrah, LLC, a subsidiary of Cresco Labs, entered into a long-term, triple-net lease agreement with Aventine regarding the property and Cresco Yeltrah will continue to operate the facility as the permitted cannabis cultivation and processing facility, as it has since 2017.
Cresco Labs CEO and co-founder Charles Bachtell said, “This transaction further strengthens our company, unlocking valuable capital from our balance sheet. The scale and quality of our operations ensures access to capital at reasonable rates with strong financing partners like Aventine, even in volatile markets. Our current capital position, combined with the expected cash proceeds from the sale of divested assets related to the pending closing of the Columbia Care acquisition, will put us in a strong position to continue to invest in the high-return opportunities available to us in both the short, medium, and long term to drive returns for shareholders.”
Aventine CEO Raymond Lewis added, “We are extremely pleased to enter into this important new relationship with Cresco Labs through its highly productive Brookville asset. Charlie and his team have built a world-class company in the cannabis space, and we look forward to supporting their strategic efforts in Pennsylvania and elsewhere.”
This press release has been submitted to the Pennsylvania Office of Medical Marijuana for review.
WINNIPEG, Manitoba, Sept. 07, 2022 (GLOBE NEWSWIRE) -- PRESS RELEASE -- Delta 9 Cannabis Inc. has announced that on Sept. 6, 2022, it completed a previously announced transaction with 10552763 Canada Corp. whereby, pursuant to the asset purchase agreement between the company and the vendor dated Aug.12, 2022, the company acquired all or substantially all of the vendor’s assets relating to the operation of three Garden Variety branded retail cannabis stores located in Manitoba, two in Winnipeg and one in Brandon.
“We are pleased to announce the closing of another strategic retail acquisition to grow our market share across the Canadian prairies,” said John Arbuthnot, CEO of Delta 9. “Delta 9 now operates 38 cannabis retail stores, positioning us as one of Canada’s largest vertically integrated cannabis retailers.”
The purchase price paid by the company relating to the transaction was $3,250,000, subject to customary adjustments. $2,925,000 of the purchase price was satisfied through the issuance of 17,944,785 common shares in the capital stock of the company (each a "Common Share") at a deemed price of $0.163 per Common Share, representing the ten (10) day volume weighted average price of the Common Shares on the Toronto Stock Exchange (the TSX) on Sept. 2, 2022 (the “Common Share Price”). $325,000 of the purchase price will be satisfied through the issuance of 1,993,865 Common Shares at a deemed price of the Common Share Price per Common Share, which will be issued in approximately six months.
The closing of the transaction remains subject to the final approval of the TSX.
SANTA CRUZ, Calif., Sept. 07, 2022 (GLOBE NEWSWIRE) -- SC Labs, one of the industry’s largest cannabis and hemp testing labs, has named Hirsh Jain to its board of directors. Jain is the founder of Ananda Strategy, a consultancy that serves cannabis brands and retailers across the country, guiding their expansion strategy and competitive licensing efforts. Jain also serves as the chair of the Los Angeles Cannabis Chamber of Commerce, vice chair of the California Cannabis Chamber of Commerce, and is on the board of California NORML (National Organization for the Reform of Marijuana Laws) which has been at the forefront of cannabis reform efforts in California for the past half century.
“Hirsh’s experience with cannabis policy and regulatory issues creates the perfect complement to our board,” said Jeff Journey, CEO of SC Labs. “The testing industry has a number of policy hurdles and opportunities facing us as we expand our national footprint to better serve MSOs and international hemp brands. Hirsh’s depth of knowledge and experience in these areas will be a tremendous asset as we navigate this evolving market.”
Previously, Jain worked as the director of government affairs at Caliva and as the West Coast director of government affairs for MedMen. “I hope to use my cannabis policy experience to support the testing space’s evolution away from a focus on potency, and towards testing standards and methodologies that capture the diverse properties of the cannabis plant,” said Jain.
Lcensed and accredited in California, Oregon, Colorado and Michigan, SC Labs is recognized for its work helping consumers better understand terpenes and the role they play in the cannabis experience, while reducing the emphasis on THC levels. “I’m thrilled to have the opportunity to help advance SC Lab’s mission of educating cannabis consumers about the full spectrum of the cannabis plant,” said Jain. “Empowering consumers to use cannabis with more intention is one of the key tasks the industry now has before it and will be critical in helping cannabis gain greater credibility and more widespread consumer adoption.”
]]>TORONTO, Sept. 7, 2022 - PRESS RELEASE - The Green Organic Dutchman Holdings Ltd., a sustainable global cannabis company, is pleased to announce that it has closed the sale of its Polish subsidiary, HemPoland. Under the terms of a share purchase agreement, TGOD sold its full interest in HemPoland to RAMM Pharma Corporation for $1.2 million on closing after customary closing adjustments, in addition to a $0.15 million non-refundable deposit provided in July that was used for operating expenses in HemPoland. In conjunction with closing, the loan payable to HemPoland by TGOD, of $4 million plus accrued interest, was forgiven.
"We are happy to have concluded the sale process and can now focus on continuing to grow our core cannabis business in Canada. The proceeds from the sale will provide additional working capital to support this aim," said Sean Bovingdon, CEO of TGOD.
]]>Do Arkansans know what they’ll be voting on this November?
Advocates from Responsible Growth Arkansas, a ballot petitioners group in favor of legalizing adult-use cannabis, are hoping to sway the answer to that question in their favor amidst a legal battle before the state’s Supreme Court.
On Sept. 2, Wright, Lindsey & Jennings LLC attorneys representing Responsible Growth filed a reply brief with the Arkansas Supreme Court arguing that the ballot title for the group’s initiated constitutional amendment properly informs voters and is sufficient for inclusion on the Nov. 8 ballot.
RELATED: 6 States That Could Legalize Cannabis Through 2022 Ballot Measures
The legal battle, in part, stems from the referendum’s aim to repeal the THC dosage limit—specifically in food and beverage products containing cannabis—under Arkansas Amendment 98, the medical cannabis ballot measure that voters passed with a 53.2% majority in the 2016 election.
“The [2022] ballot title exceeds what the Court has previously required by telling voters the specific provisions of Amendment 98 that will be amended, including the specific change at issue here,” Responsible Growth attorneys wrote in the Sept. 2 brief.
Updated figures from the Arkansas Department of Health show that the state’s medical cannabis sales surpassed $23 million in August.
The state’s 38 licensed dispensaries sold $23.3 million worth of products last month, according to a local 5NEWS report.
"August was the largest month for pounds sold in 2022 as patients purchased more than 4,245 pounds of medical marijuana," Scott Hardin, a spokesperson for the Arkansas Department of Finance and Administration, said, according to the news outlet. "Since Jan. 1, 2022, patients have spent $181 million to obtain 32,027 pounds. With $2.7 million in state tax revenue collected from medical marijuana in August, a total of $78.68 million has been collected since the industry launched in mid-2019."
Natural Relief Dispensary in Sherwood sold the most cannabis last month, with patients purchasing 423 pounds total from that location, 5NEWS reported.
Currently, 89,983 patients are enrolled in Arkansas’ medical cannabis program, according to the news outlet.
In recent weeks, California Department of Cannabis Control (DCC), California Department of Fish and Wildlife (CDFW) and State Water Resources Control Board (State Water Board) agents have traveled in unmarked vehicles to licensed cannabis farms in southern Humboldt County to conduct armed inspections, according to agency officials and cannabis cultivators interviewed by Cannabis Business Times.
Many Humboldt County farmers and industry members are shaken. They are calling the inspections traumatizing for compliant cultivators and their families, reminiscent of prohibitionist raids through the project Campaign Against Marijuana Planting (CAMP), which began in the 1980s, and Operation Green Sweep raids in the 1990s, KMUD News reported Aug. 26.
The DCC conducted inspections with agents from the State Water Board and an armed CDFW official Aug. 24 and 25 in the Redwood Creek watershed, said DCC Spokeswoman Maria Luisa Cesar, who emailed responses to CBT (which include input from CDFW unless otherwise noted).
During those inspections, she said, “A total of six environmental scientists took part in these routine inspections. DCC compliance staff were unarmed and one armed CDFW wildlife officer accompanied environmental scientists to ensure safety, as CDFW staff have been shot at it in the past while working in remote areas.”
Michelle Bushnell is supervisor of Humboldt County’s District 2, which includes part of the Redwood Creek watershed, where farmers have been visited by armed CDFW officials. “Outdoor cultivation in the Redwood Creek area—almost all of that is outdoor cultivation and small mom-and-pop farms. Those folks have been here for years and years,” Bushnell told CBT, adding of the recent armed inspections: “It feels very invasive to them, and like they’re outlaws again and they're not trusted.”
Cesar told CBT these were not enforcement operations but rather compliance checks to make sure cannabis farmers are not breaking laws, such as illegally diverting water from watersheds during a time of severe drought.
California Gov. Gavin Newsom signed legislation last week to ban medical discrimination against patients who use cannabis.
Assembly Bill 1954, introduced by Assemblymember Bill Quirk, D-Hayward, protects the right of patients to medical treatment if they use cannabis, as well as the right of physicians and clinics to treat them, according to a KRON4 report.
The legislation, sponsored by California NORML and Americans for Safe Access, cleared the Legislature with bipartisan support before Newsom signed it into law Sept. 2, the news outlet reported.
The new law clarifies that physicians cannot be penalized for treating patients who test positive for cannabis, even though cannabis remains federally illegal, according to KRON4. It also specifies that a positive drug test for cannabis cannot be the sole basis for denying medical treatment in order to ban the automatic elimination patients who use cannabis from pain management programs.
A dozen lawsuits have been filed to challenge Connecticut’s adult-use cannabis licensing process, and all but one have now been consolidated to be heard as a single case, according to an SFGATE report.
The one not included, a lawsuit filed by Farmington-based Core Cult LLC, was excluded because the plaintiff “has not responded to requests” regarding the motion, the news outlet reported.
When Connecticut legalized adult-use cannabis last year, half the licenses were earmarked for social equity applicants who must meet income, residency and ownership requirements, and social equity license holders must own and control at least 65% of the business.
The now-consolidated lawsuits claim that Connecticut’s Social Equity Council, which is tasked with selecting the state’s first batch of adult-use cannabis cultivation and dispensary licensees, denied applications based on “incorrect information and arbitrary interpretations of the law,” according to SFGATE.
Missouri voters will make their voices heard on a proposed constitutional amendment to legalize adult-use cannabis in the November election, but a group of lawmakers hopes the state can enact cannabis policy reform in a different way.
RELATED: More Than Half of Missouri Voters Support Adult-Use Cannabis Legalization
A bipartisan group of Missouri lawmakers, in collaboration with activists, is calling for Gov. Mike Parsons to include cannabis legalization on the agenda for the Legislature’s upcoming special session, which kicks off Sept. 14 to allow legislators to debate Parson’s proposed a $700 million tax cut plan, the News Tribune reported.
Lawmakers and activists have also announced a campaign to defeat Amendment 3, the cannabis legalization measure that will appear on Missouri’s November ballot, according to the news outlet.
"Rather than settle for an ill-suited and monopolistic program shoehorned into our [state] constitution, the Missouri General Assembly has a unique opportunity to consider legislation that would legalize cannabis in a truly free market fashion," State Rep. Tony Lovasco, R-O'Fallon, said, according to the News Tribune.
Irina Dashevsky, partnerat GreenspoonMarder LLP in Illinois andco-chair of their cannabis practice group, anticipates that the federallegalization of cannabis could be a decade away, and if the industry wants tosee change at the federal level, it's going to take a joint effort.
"State after state islegalizing [medical cannabis] and then legalizing adult-use. So, there'sconsensus. And yet at the federal level, that hasn't caught up," Dashevskysays. "That's probably because cannabis isn't a bread-and-butter issue.It's not, 'Oh, my gas prices went up, and I really need the government to dealwith that immediately.' There are a lot of other important issues: wars,inflation, unemployment … that have the attention of our electedofficials."
Dashevsky says federal changewill take a concentrated effort, adding that the industry as a whole shouldcommit more time, focus and lobbying dollars to strategies that have helpedencourage legalization at state and local levels.
Connect With ElectedOfficials
To get more involved at thefederal level and engage in legalization efforts, Dashevsky suggests connectingwith elected officials. This could start with a congressman or Senator, butalso even a state representative, an attorney general or the Governor.
Dashevsky also suggestsconnecting with officials who already focus on cannabis or those who supportlegalization. For example, she referenced Rep. La Shawn Ford in Illinois, whoseprimary focus is increasing equity and justice in the cannabis industry."[He] is the go-to person for when you have a cannabis concern [inIllinois]," she says.
Dashevsky added thatgovernors and attorney generals typically already have connections at thefederal level.
Last year, Illinois adult-use cannabis retailers didn’t eclipse the $1-billion benchmark until October. This year, they surpassed that sales total in August.
Recording more than $129 million last month, licensed dispensary operators have sold $1,015,700,115.70 worth of adult-use cannabis so far this year, according to the state’s Department of Financial and Professional Regulation (IDFPR). That 2022 figure represents a 16% increase from the $875 million Illinois retailers sold through August of last year.
RELATED: These 8 States Sold $12.8 Billion of Adult-Use Cannabis in 2021
While the state industry is experiencing year-over-year growth, the retail market has leveled off during the past six months, peaking at $135.7 million in July, before experiencing a 4.6% decrease in August.
But that July-to-August decrease was expected based on previous year trends as well as the calendar makeup for July 2022, which included five Fridays and five Saturdays—the two biggest sales days of the week for cannabis retail.
Out-of-state sales, which accounted for more than $41 million in August, held steady at roughly 32% of the state’s retail market last month.
