MjLink Cannabis Business News and Press
Organic crop cultivation has gained popularity over the years as consumers seek out more natural products grown with fewer pesticides. With the prices of pesticides and fertilizers increasing and potential shortages, organic management techniques may start to become even more popular among farmers.
With organic production, cultivators do not use synthetic fertilizers or pesticides, and they grow on land that has not had any prohibited substances applied for a minimum of 36 months. To produce crops following the National Organic Program (NOP) standards, a grower must understand the rules and regulations to be officially considered USDA Organic. Approval from a certifying agent allows growers to use the USDA Organic label. If a crop has to go through additional processing to get made into a final product, that processing needs to use approved substances in the manufacturing to be considered organic as well.
Going through certification may not be for everybody. Certification comes with a cost, which includes yearly inspections to maintain organic status. Additionally, the cost of managing a crop organically is higher than doing so conventionally, while yields have typically been lower in organic systems. The higher cost of organic production comes from higher costs for organic seeds or plants, certification, labor, equipment and fuel.
Some producers instead opt for a hybrid production system, drawing from both conventional and organic management practices. With few pesticides available (most of which are approved for use in organic production), many hemp producers are already following management practices that align with organic farming practices. Hemp certainly is a good option to transition land into organic production.
Still, there is a value-added benefit for producers willing to go through the certification process to become fully organic. Organically grown crops have higher gross returns to farmers compared to conventionally grown crops.
Whether a grower wants to seek organic certification or simply integrate certain practices, they can start by using the following management techniques in the field this season.
California’s coastal “King of Cannabis,” Helios Dayspring, owner of a San Luis Obispo cannabis cultivation site, supplier to many licensed California dispensaries, and founder of Central California’s Natural Healing Center dispensary, was sentenced to a 22-month prison sentence, in a downtown Los Angeles federal courtroom May 27.
Dayspring was also ordered to pay almost $3.5 million in back taxes to the IRS from years of unreported cannabis business income.
Dayspring, over a three-year period starting in 2016, bribed a San Luis Obispo county supervisor with money, free cannabis, and fancy meals, so that the local government official would vote in favor of policies which favored Dayspring’s San Luis Obispo cannabis farm and his Grover Beach, California retail outlet.
RELATED: Q: What’s a Cannabis Operator to Do to Get Ahead Without Getting Indicted?
Dayspring’s cannabis corruption machinations were discovered after federal authorities began a multi-year investigation into local government corruption up the California coast.
Why did the feds in this vast Central District, home to 19 million inhabitants and covering 40,000 square miles, single out Dayspring? They were investigating corruption, not cannabis.
Cannabis sales have hit a three-month plateau in Illinois.
Adult-use retailers reported $129.8 million in cannabis sales in May, according to monthly data released June 3 by the Illinois Department of Financial and Professional Regulation (IDFPR). That’s a slight dip from April ($131.8 million) and March ($131 million), representing maturity in a market that has experienced regular growth since commercial sales first launched in January 2020.
Since that launch, Illinois has sold nearly $2.7 billion in adult-use cannabis and remains on pace for another record year. Through the first five months of 2022, adult-use sales are up 22.3% from the same timeframe a year ago.
While overall sales for May 2022 fell slightly compared to the previous two months, out-of-state resident sales grew slightly to nearly $41 million, representing 31.6% of the state’s retail market. However, out-of-state resident sales have represented a constant share of the retail market—between 31% and 32%—throughout 2021 and 2022.
In regard to transactional volume, Illinois’ 110 licensed dispensaries sold more than 3 million items in May. But that retail footprint will soon expand.
On May 27, a judge ended a court order that was preventing IDFPR officials from issuing 185 new adult-use dispensary licenses that were awarded during a three-part lottery last July and August. The majority of those licenses are reserved for social equity applicants.
]]>New Mexico’s adult-use cannabis sales surpassed $21 million in May, the second month since the market launched April 1.
The state’s dispensaries racked up $21,1000,803.88 in adult-use sales and $17,431,953.58 in medical sales for a grand total of $38,532,757.46 in cannabis sales for the month, according to a press release from the New Mexico Regulation and Licensing Department.
“These sales figures depict a steady pace that we expected when adult-use cannabis was legalized,” said Cannabis Control Division Director Kristen Thomson in a public statement. “Our staff continues to work diligently to ensure applicants move through our licensing process efficiently, and ensure licensees operate within a safe, accessible, and effective regulated market.”
The cities of Albuquerque, Santa Fe, Las Cruces, Rio Rancho and Hobbs saw the highest sales numbers, according to the release.
Despite the heavy lift associated with losing major donors and challenging a constitutional signature gathering statute, a group of medical cannabis legalization advocates indicated major strides this week in Nebraska.
Proponents of Nebraskans for Medical Marijuana (NMM), a grassroots effort to place two medical cannabis legalization initiatives on the state’s November ballot, announced June 2 they doubled their signature count—to roughly 40,000 for each measure—in just the past two weeks.
RELATED: Nebraska Group Files Two Medical Cannabis Initiatives with Secretary of State
State Sen. Anna Wishart, D-Lincoln, a co-sponsor of the petitions, also announced Thursday that the group raised $50,000, recruited more than 100 paid volunteer circulators to help collect signatures and qualified 15 of Nebraska’s 93 counties also in just the past two weeks.
The group has until July 7 to gather roughly 87,000 valid signatures from registered voters for each measure to qualify for the ballot. Wishart told the Lincoln Journal Star the group is on track to hit that deadline.
“We are really pulling together a campaign,” she said, “and we’ve got a ton of people who have gotten out of the house to come grab a petition and collect signatures.”
The Hemp Alliance of Tennessee (HAT) is partnering with the state Department of Agriculture (TDA) to conduct a research study to assess the feasibility of hemp fiber production for the automotive industry and other sectors of the economy.
According to an HAT press release, the University of Tennessee will conduct the study, which is expected to take place now through the end of next year.
"We are an agricultural state, and we are proud to be a hemp-producing state," Agriculture Commissioner Charlie Hatcher said. "This plant has numerous applications, and we believe fiber has [the] potential to grow Tennessee's industrial economy. We support this work led by the Hemp Alliance of Tennessee and look forward to reviewing the research conducted by the University of Tennessee to assess the potential scale of that growth."
The feasibility analysis will include creating a budget for Tennessee farmers regarding the state's costs, revenue, and profits of processing hemp fiber. The budget will also include transportation and supply chain logistics.
A portion of the study will also evaluate the "likelihood for successful Tennessee-based production and processing for the various major uses of hemp fiber," the release states.
Frederick Cawthon, president of HAT, said he thinks Tennessee could become a leader in the hemp industry if "we engage our innovators and the industries that can benefit from the plant— and our Legislature continues to help make the right investments in the plant's myriad applications."
]]>Medical cannabis legalization is on the table again this year in North Carolina, and the issue took a major step forward June 2 when it received the Senate’s blessing.
Senate Bill 711, called the Compassionate Care Act, passed the Senate in a 35-10 vote Thursday, with both bipartisan support and opposition, according to The Charlotte Observer.
RELATED: North Carolina to Consider Medical Cannabis Legalization Bill, Again
The legislation will likely face more opposition in the North Carolina House, the news outlet reported, but Sen. Bill Rabon, the bill’s main sponsor, has said that he his proposal would create one of the strictest medical cannabis programs in the country if it becomes law in an effort to rally support in the statehouse.
“We have looked at other states, the good and the bad,” Rabon told his colleagues before Thursday’s vote, according to The Charlotte Observer. “And we have, if not perfected, we have done a better job than anyone so far.”
For more than two years, dispensary owners in Sacramento were barred from engaging in business transfers or sales. That’s changing, now that city council members voted to overturn the policy.
As the Sacramento Bee reports, moving forward, dispensary owners may sell off a majority of their business.
Furthermore, dispensary owners may pick up ownership stakes in other dispensaries, too. Those minority stakes are limited to 5%. The goal, according to city officials, was to broaden the playing field and allow new entrants into the local marketplace.
“What we put forth today is a symbol that we are serious about a good business environment,” said Sacramento Mayor Darrell Steinberg.
City council originally clamped down on ownership transfers after Ukrainian businessman Andrey Kukushkin quickly acquired nearly one-third of all Sacramento retail licenses in the earlier years of the local market. Kukushkin, in 2019, was caught up in a federal investigation into campaign finance crimes. A probe of Kukushkin’s business interests at the time brought about greater scrutiny from Sacramento law enforcement—and a review of licensing rules.
As of now, the city of Sacramento has 30 dispensaries within its borders.
CHICAGO, June 3, 2022 – PRESS RELEASE – Verano Holdings Corp., a multi-state cannabis company, today announced its 100th affiliated dispensary in the nation, Zen Leaf Wynnewood, will open on Friday, June 3 at 9 a.m. through permitee NSE Pennsylvania, LLC. Located at 257 Lancaster Avenue, Zen Leaf Wynnewood is open Monday through Saturday from 9 a.m. to 7 p.m. and Sunday from 10 a.m. to 6 p.m., local time.
Zen Leaf Wynnewood is located just outside of Philadelphia in Montgomery County, the third most populous county in Pennsylvania. Montgomery County experienced a population increase of 7% from 2010 to 2020.
“Reaching the milestone of operating 100 dispensaries nationwide is a result of the incredible dedication of our Verano team and the enduring loyalty of our valued customers,” said George Archos, Verano founder and chief executive officer. “We’re forever grateful to all our guests and team members for their support throughout this exciting journey, and look forward to celebrating this historic day in the great state of Pennsylvania by serving medical patients at our brand new Zen Leaf dispensary in Wynnewood.”
Zen Leaf Wynnewood will offer a suite of cannabis therapeutics, including flower, topicals, and vapes. For additional convenience and accessibility, patients can choose to order ahead at zenleaf.com for express in-store or curbside pickup. For more information about Zen Leaf medical cannabis dispensary, visit zenleaf.com.
One of the nation’s youngest adult-use cannabis retail markets, Montana banked $16.6 million in adult-use sales and $8.3 million in medical sales in May, according to the state’s Department of Revenue (DOR).
Combined adult-use and medical sales dipped slightly, from $25.4 million in April to $24.9 million May, which in part was a factor of medical sales decreasing at a greater rate (8.9%) than adult-use sales increased (1.9%) for the month.
Other factors may include the absence of a 4/20 sales boost in May, and the fact that April had five Fridays and five Saturdays, while May had four each.
Since Montana became the 12th state to launch commercial adult-use cannabis sales on Jan. 1, 2022, retailers have recorded $76.5 million in adult-use sales and $46.7 million in medical sales—for more than $123 million combined.
Much like other maturing markets, adult-use sales have continued to grab a larger market share during that time, representing about 58% of overall sales in January and nearly 67% of overall sales in May.
In Colorado, for example, which launched adult-use sales in January 2014, adult-use sales represented nearly 82% of the licensed retail market in 2021. In Oregon, which launched adult-use sales in October 2015, adult-use sales represented more than 91% of its licensed retail market in 2021.
The California Department of Cannabis Control (DCC) encourages cannabis licensees, including cultivators, impacted by the water drought to request disaster relief.
Climate change has caused severe water droughts in California communities. Since California Gov. Gavin Newsom issued his third state of emergency July 8, 2021—following one in April and another in May—extremely high temperatures have sustained and “increased water loss from reservoirs and streams, increased demands by communities and agriculture, and further depleted California’s water supplies,” the state of emergency states.
According to a press release from the DCC, state and local agencies throughout California are working to find ways to support water conservation efforts, which includes launching programs in certain jurisdictions where cultivators can converse water by fallowing their crops.
“If relief from DCC licensing requirements would make it economically feasible to participate in local fallowing programs, or would otherwise support California’s water conservation efforts, DCC encourages licensees to request disaster relief,” the DCC wrote in the release.
Licensees who cannot comply with the DCC’s licensing requirements due to disasters, such as the water drought crisis, may be eligible for disaster relief. Licensees must identify which DCC regulations they are requesting relief for and explain why the relief is needed.
“Long-term weather forecasts for the winter rainy season, dire storage conditions of California’s largest reservoirs, low moisture content in native vegetation and parched soils, magnify the likelihood that drought impacts will continue in 2022 and beyond,” the state of emergency states.
]]>Calvin Johnson used the highest stage reserved only for athletes at the pinnacle of his sport to share his passion for cannabis.
At his induction ceremony into the NFL Hall of Fame last April, the former Detroit Lions wide receiver—widely regarded as one of the best players ever at his position—spoke of a “primitive” and “healing” plant that helped him survive nine years of grueling physical punishment from some of the world’s hardest-hitting cornerbacks and linebackers.
He was talking, openly, about cannabis.
It was a stunning moment for the NFL community. The world’s most lucrative and popular sports league has long held a hardline anti-cannabis stance. Even now, testing positive for THC during the season lands players an automatic suspension.
“I’m a firm believer that the Lord put everything on this earth that we need to heal our body,” Johnson said in an interview with Cannabis Business Times. “I apply that to my food, my supplements and now my medicine.”
Inspired by his passion for the plant and personal need for physical healing, Johnson and former Detroit Lions teammate Rob Sims opened a cultivation facility in the nearby town of Webberville, Mich., back in 2019. After COVID-19 stalled the duo’s plans for a retail store, Primitiv dispensary finally launched earlier this year in the small city of Niles, 150 miles southwest of Webberville on Michigan’s border with Indiana.
EDMONTON, AB, June 3, 2022 /CNW/ --PRESS RELEASE-- Aurora Cannabis Inc. (NASDAQ: ACB) (TSX: ACB), the Canadian company cannabinoids worldwide, today announced that it has repurchased an aggregate of approximately $25.3 million (US$20 million) principal amount of its convertible senior notes at a total cost, including accrued interest, of $24.3 million (US$19.2 million) in cash.
The purpose of the transaction, which represents a repurchase of a portion of the Notes at a 5.25% discount to par value, was to reduce the company's debt and annual cash interest costs. Annual cash interest savings from the repurchases of Notes made from Q3 2022 onwards now total $9.5 million (US$7.5 million).
Aurora's balance sheet is among the strongest in the industry with approximately $455 million in cash inclusive of the transaction announced today, and the company reiterates its expectation of achieving a positive Adjusted EBITDA run rate by the first half of fiscal 2023.
This announcement does not constitute an offer to sell, or a solicitation of an offer to buy, any security and shall not constitute an offer, solicitation or sale in any jurisdiction in which such offering would be unlawful.
]]>South Dakota voters will once again decide on adult-use cannabis legalization this year after state officials approved a legalization measure for the state’s 2022 ballot.
Secretary of State Steve Barnett validated South Dakotans for Better Marijuana Laws’ (SDBML) measure May 25, according to a local Dakota News Now report.
The measure will be titled Initiated Measure 27 and appear on South Dakota’s General Election ballot on Nov. 8, the news outlet reported.
RELATED: Voters in These 9 States Could Decide Cannabis Fate in 2022
SDBML had to gather roughly 17,000 valid signatures to get its measure before voters, and the group submitted those signatures to the Secretary of State’s office May 3.
Illinois has awarded 48 long-awaited craft grow cannabis licenses that had been delayed due to litigation brought by unsuccessful applicants.
The Illinois Department of Agriculture (IDOA) announced June 1 that it issued the licenses, completing the licensing round that launched in December 2021.
The full list of licensees is available here.
Of the newly issued licenses, 20 (42%) went to Black-owned businesses, 17 (36%) went to white-owned operations and four (8%) went to Hispanic-owned companies, according to the IDOA’s press release. Eight percent of the licensees are owned by a partnership group, while 6% did not provide that information.
All of the licenses were awarded to entities that Illinois defines as Social Equity Applicants, according to the IDOA’s announcement.
For Q1 2022, there were 70 capital raises totaling $1.2 billion. Compare that with Q1 2021, which saw 163 capital raise transactions totaling $4.6 billion. That’s a decline in transactions of 57% and a decline in total capital raised by ~74%.
So, what’s happening here?
To be fair, Q1 2022 followed a strong first quarter when the number of capital raise transactions and total invested capital reached historic levels.
Nonetheless, the quarter reflected a sharp falloff in investor interest in the cannabis sector due to:
1) any legislative progress re cannabis legalization;
2) declines in the market valuation of public cannabis companies, which made equity issuances dilutive and expensive;
As New York cannabis regulators steady the ship for the launch of adult-use sales by the end of the year, the state’s Cannabis Control Board (CCB) members approved June 1 their first regulations for the broader market.
Those regulations establish specific parameters for packaging and labeling, marketing and advertising, and laboratory testing in the forthcoming industry.
The board members’ unanimous approvals on Wednesday came after nearly three months of work by Office of Cannabis Management (OCM) officials to carry out the state’s Seeding Opportunity Initiative, which aims to position individuals with prior cannabis-related criminal offenses to make the first adult-use cannabis sales with products grown by New York farmers.
Specifically, through OCM recommendations, CCB members have approved 162 existing hemp farmers for conditional adult-use cannabis cultivation licenses for the 2022 growing season, including their latest batch of 16 approved applicants on Wednesday.
While the Seeding Opportunity Initiative guides initial steps toward developing a “strong” adult-use market, CCB Chairwoman Tremaine Wright said she and her colleagues recognize that “there is so much more to do in order to establish a robust adult-use cannabis market” in New York.
“So today, we’re going to consider two sections of regulations that will be a part of the broader and much-anticipated adult-use regulations,” she said during Wednesday’s regular meeting.
Tilt Holdings and Highsman agreed to a manufacturing and distribution partnership in Massachusetts and Pennsylvania.
Tilt will offer Highsman products across retail stores in both states starting in September to mark the start of the 2022 football season.
“Authenticity and unique brand architecture are two of the most important considerations for Tilt when evaluating potential brand partnerships. You would be hard-pressed to find a group more equipped to meet those criteria than Ricky and the team he has assembled at Highsman,” said Gary Santo, CEO of Tilt Holdings. “As the stigma around cannabis continues to fade within the general population, most athletes are still playing in organizations slow to slow the use of cannabis for wellness and recovery. Tilt is committed to delivering a broad selection of the highest quality cannabis brands to the markets we serve, while helping independent brands expand and scale. We are thrilled to bring our unique and distinctive level of partnership to the table for Highsman and introduce this exciting brand to the East Coast.”
RELATED: From Heisman Winner to Highsman Owner
The partnership with Tilt marks the introduction of Highsman products to the East Coast, expanding the company’s reach since launching operations in November 2021. Highsman’s product line includes three cultivars: Pregame, Halftime, and Postgame.
“2022 marks a year of considerable growth for Highsman, and we are proud to partner with Tilt as we enter our first East Coast markets,” said Eric Hammond, CEO of Highsman. “Tilt has a proven track record of significantly expanding the footprint of the cannabis brands they work with, and I am confident that our strategic partnership will further establish Highsman as a leading national brand.
WASHINGTON, D.C., June 2, 20211 - PRESS RELEASE – Advocacy organizations Marijuana Matters, Minority Cannabis Business Association (MCBA), Minorities for Medical Marijuana (M4MM) and Women Grow to launch #SAFE4Equity, a campaign to inform cannabis operators, industry stakeholders, congressional leaders, and the general public about the crucial need for the Secure and Fair Enforcement Act (SAFE Banking Act). SAFE Banking is included in the House-passed version of the America Creating Opportunities for Manufacturing, Pre-Eminence in Technology, and Economic Strength Act of 2022 (COMPETES Act). #SAFE4Equity supports the inclusion of the SAFE Act in the final package currently being negotiated by the Senate to provide relief for small minority-owned cannabis businesses.
The campaign kicks off on June 2, 2022, with the re-launch of safe4equity.org website and the SAFE4Equity social media channels that will provide timely information relating to the SAFE Act, updates on its movement through the Senate, as well as testimonials from minority cannabis entrepreneurs currently impaired by the limited access to banking services.
The campaign’s mission is to bring light to the fact that equitable access to capital and banking services is critical on the path to social and economic justice through cannabis reform. Without it, small, minority- and women-owned cannabis businesses fail to have the resources necessary to operate safely and effectively but moreover compete at a higher scale to run their enterprises. The SAFE Act is the essential piece of legislation that will begin to alleviate the burdens many of these smaller operators face and offer a solution to support their business growth.
SAFE Banking Act lead sponsor, Congressman Ed Perlmutter, has been a staunch advocate for equitable cannabis banking and has worked to pass the bill in the U.S. House of Representatives six times while continuing to garner bipartisan support. Perlmutter joins #SAFE4Equity in the call for the Senate to pass the SAFE Banking Act this year either through the America COMPETES conference committee negotiations or as a standalone bill.
“I appreciate SAFE4Equity’s support of the SAFE Banking Act and their ongoing advocacy for federal cannabis reform. SAFE Banking is only one piece of the puzzle, but it is a critical piece of reform that underserved communities and small businesses need now,” Perlmutter said. “It is imperative that the conference committee solve this problem as soon as possible to begin to alleviate the threat of public safety and inequity which threatens communities and emerging small businesses across the country.”
CO2Meter Inc., a leader in gas detection, monitoring, and analytical devices, released its new RAD-0502 - dual sensor CO2 controller for grow rooms that can monitor and control carbon dioxide concentrations at two locations from 0 to 3,000ppm. The dual sensor CO2 grow controller will now provide both indoor growers and mushroom farmers the ability to control consistent CO2 levels throughout their grow space all from a central display panel.
“Our original RAD-0501 Controller is considered the gold standard for home growers and mushroom farmers. When we studied the market, we clearly saw a gap between our original RAD-0501 and the larger commercial controllers in the market. The RAD-0502 now provides indoor growers around the globe with a simple and affordable way to understand and adjust CO2 levels to optimize their growing processes.”, noted Melyssia Santiago, CO2Meter’s VP of Sales.
“Now our customers in two agricultural segments will get the added benefits of the CO2 control: growers can now control a single larger space or two different room simultaneously, and mushroom farmers now have a quality device to control ventilation.” added Santiago.
While monitoring up to two grow room locations is a significant benefit for indoor agriculture monitoring, it is not the only new feature that can be found in the RAD-0502. Customers will be able to control and monitor not only CO2 levels, but also control light, temperature, and humidity, for a full-scale optimized grow room approach. In turn, achieving unprecedented quality and yields.
Additionally, each sensor triggers individual relays allowing the end-user to control each sensor's precise location in the facility. Whether you are looking to control grow room lighting, HVAC systems, exhaust fans, CO2 generators, or CO2 cylinders the RAD-0502 can control and monitor multiple locations at any given time. The RAD-0502 settings are user configurable, enabling the customer to apply their preferred settings for their application. And, for those looking to use the device globally, it also features a universal power supply allowing our international customers ease of use without having to use adapters.
RAD-0502 CO2 Controller for Grow Rooms
