MjLink Cannabis Business News and Press

There was no shortage of interest for participating in New Jersey’s forthcoming adult-use cannabis retail market when state regulators began accepting a second round of applications earlier this week.

The state’s Cannabis Regulatory Commission (CRC) opened the dispensary license application process for Class 5 retailers at 9 a.m. March 15. By 4 p.m. that day, the commission had received 172 applications, NJ.com reported.

According to CRC’s website, Class 5 license types authorize retailers to purchase adult-use cannabis from licensed cultivators, manufacturers or wholesalers, and to sell those items to consumers in a retail store.

The license applications for Class 5 retailers will be accepted and reviewed on a rolling basis until indicated otherwise, according to CRC.

“Social equity businesses, diversely-owned businesses, impact zone businesses, and applications that receive bonus points will be afforded priority review, scoring, and approval,” the website states.

In addition, CRC has not established a limit on the number of cannabis business licenses available statewide. However, under current law, the number of adult-use cultivator licenses is limited to 37 until Feb. 22, 2023.

Black and female workers are represented in Nevada’s legal cannabis industry but not nearly at the same rates as white males for higher-level positions, according to a recent study.

In the state’s cannabis workforce as a whole, 52% of workers identified as white, 22% as Hispanic, Latino or of Spanish origin, and 12% as Black, according to a demographic survey completed in January 2022 by Nevada’s Cannabis Compliance Board (CCB).

In addition, 55% identified as male, 39% identified as female and the remaining 6% preferred not to respond or did not identify with either gender.

The survey was sent to 15,936 agent registration card holders—those who legally work in the state cannabis industry—as of Jan. 1, 2022, with a 42% response rate of 6,690 surveys submitted, according to CCB.

While overall race and gender demographics didn’t steer too far from the state’s broader population, the survey results showed major gaps for workers holding executive-level positions.

Among six position categories in the survey—owner/manager, board of directors, executive board member, officer, employee, consultant—the largest gender and race gaps were associated with those who identified as members of a board of directors.

An Illinois judge has lifted an injunction that has barred state officials from issuing 60 craft grow licenses in the state’s adult-use cannabis program.

On March 14, Sangamon County Judge Gail Noll restored the applications of 11 unsuccessful applicants who had sued the state to challenge its decision to disqualify them, according to the Chicago Tribune.

The Illinois Department of Agriculture awarded the first round of craft grow licenses last summer, and state law required the department to issue the 60 additional craft grow licenses by Dec. 21, 2021.

The UK Department of Health and Social Care has announced that medical cannabis trials will begin “as soon as possible,” according to The Independent.

The government’s National Institute for Health Research will oversee the study, which will evaluate the effects of cannabis on patients with epilepsy, the news outlet reported.

Specialist doctors in the UK have been able to legally prescribe cannabis-derived medicinal products since 2018, but only as a last resort, according to The Independent.

RELATED:  Cannabis Advocates Encouraged by Policy Reform in the UK: Country Profile

Patients undergoing chemotherapy, as well as those suffering from epilepsy and multiple sclerosis, have argued that medical cannabis should be more easily accessible, the news outlet reported, while the National Institute for Health and Care Excellence (NICE), a commissioning body of the NHS, says there is “insufficient evidence” to recommend the full use of cannabis, although it may be considered by doctors if it is “clinically appropriate in an individual case.”

Pay a fine now or risk losing your cannabis license.

That’s the dilemma Oklahoma cannabis business recently faced when robbers masquerading as state regulators showed up at operations in Hughes and Seminole counties earlier this week.

Specifically, on March 13 at a Hughes County cultivation business, a group of six imposters arrived with one person claiming to be a state regulator with the “Oklahoma Marijuana Board,” which does not exist. That person demanded on-site payments for a code violation while others in the group posed as law enforcement agents, The Oklahoman reported.

The criminal party had a counterfeit search warrant on hand, donned fabricated badges and patches, and stole cell phones and medical cannabis from the property, the newspaper reported.

Mark Woodward, a spokesman for the Oklahoma Bureau of Narcotics and Dangerous Drugs Control, told the news outlet it’s not the first time an illegal raid involving regulator and law enforcement imposters has occurred.

“In the past they’ve showed up at either a grow or a dispensary and claimed to be with the state of Oklahoma, saying there were violations and demanded money on-site to pay the fine for the violation or be shut down,” said Woodward, who confirmed his agency wasn’t conducting any operation in the south central counties where businesses reported the cases.

Earlier this week, the team at Tyson 2.0 announced the launch of Mike Bites—ear-shaped gummies meant to evoke Mike Tyson’s infamous 1997 match against Evander Holyfield. Weighing in at 10 milligrams of THC each (with, naturally, a bite mark along the ear’s upper curve), the gummies took off as a viral headline that underscores the fast pace and grand aspirations of this new cannabis brand. 

“We took some preorders, and, prior to it even hitting the market, we sold out of product,” CEO Adam Wilks said of the new line. “We're blessed and thankful that the demand is beyond what we could have imagined. That’s the biggest issue: keeping up with demand.”

In cannabis, with its fragmented U.S. markets stitched together by social media hype and cultural touchstones, a viral hit is a powerful milestone for any team trying to break into the crowded business arena. Tyson 2.0 operates right now in California, Colorado, Nevada, Massachusetts and Michigan—with more states and consumer demand to come. The splashy appeal of Mike Bites paves the way for future launches.

The team works with Columbia Care on the cultivation and retail side of the business. What attracted the team to Columbia Care was not just that multistate corporation’s chief growth officer, Jesse Channon, a friend of the Tyson 2.0 crew, but also a commitment to brand-building as a pillar of expansion. It’s not just a matter of the land race to enter new markets, but rather Columbia Care has demonstrated to the Tyson 2.0 team an intentional desire to develop recognizable brands across state lines.

“We believe that this is a key to what a lot of brands have not yet done,” Tyson 2.0 board chairman and co-founder Chad Bronstein said. “When you look at celebrity brands and other brands, it's hard to get mass distribution. … A lot of the MSOs, they didn't really necessarily care about celebrities because they were selling out of product already. So, we had to really figure out how to get that multistate distribution and cultivation and get into retail.”

RELATED: Beyond the Show: Jesse Channon 

LEAMINGTON,Ontario, March 17, 2022 – PRESS RELEASE – Tilray Brands Inc., a leadingglobal cannabis-lifestyle and consumer packaged goods company focused oninspiring and empowering the worldwide community to live their very best life, announcedthat its medical cannabis division, Tilray Medical, has expanded its medicalcannabis offering and launched the first EU GMP-certified medical cannabis oilproducts in Malta. Tilray’s EU-GMP medical cannabis products are now availablein pharmacies across Malta, providing patients with safe and reliable access tohigh-quality medical cannabis.

DeniseFaltischek, Tilray’s chief strategy officer and head of international business,said, “Demand for medical cannabis in Malta is growing rapidly and we areincredibly proud to service patients with the high-quality medical cannabisproducts they rely on and in the formats they prefer.”

InMalta, patients may obtain prescriptions for medical cannabis and a medicalcannabis card through family doctors. Medical cannabis cards are issued byMalta’s superintendent of Public Health.

Tilrayhas a pioneering track record as a company committed to making EUGMP-certified, pharmaceutical-grade medical cannabis products available topatients in need around the world and was the first to successfully exportmedical cannabis from North America and import medical cannabis products intothe EU in 2016.

LAS VEGAS, NV – March 17, 2022 - Cannabis Business Times, the leading B2B publication dedicated to the cultivator/grower segment of the cannabis industry, and Cannabis Conference, the industry’s highest quality educational event and expo for professionals at plant-touching cannabis businesses, announced today that nominations for the 2022 Cannabis Leadership Awards are now open.  

With the support of FOHSE – Future of Horticultural Science + Engineering, the Cannabis Leadership Awards will recognize cannabis industry professionals who exemplify the leadership qualities needed to inspire and empower those around them and who work toward the betterment of the entire industry.

Cannabis Leadership Awards recipients will have made significant contributions to the cannabis industry, such as:

Cannabis Leadership Awards recipients will be recognized at a special awards reception at the Cannabis Conference 2022 (Aug. 23-25 at the Paris Las Vegas Hotel & Casino) and featured in Cannabis Business Times magazine.

“The cannabis industry is full of people who are passionate about the cannabis plant’s potential, and the Cannabis Leadership Awards is an opportunity to spotlight inspiring professionals working to make the world a better place through cannabis and their roles in the industry,” Noelle Skodzinski, editorial director for Cannabis Business Times and Cannabis Conference said. “The criteria we use to select the winners extend beyond corporate achievements. We’re searching for people who’ve truly made a significant and positive impact on their teams, the communities in which they operate, and the cannabis industry as a whole.”

James Bradley, Chief Marketing Officer, FOHSE – Future of Horticultural Science + Engineering, added, “As the cannabis industry solidifies its foothold in regions around the world, I believe it's crucial to laude those who are truly raising the bar. The industry continues to face an uphill battle with some of the cultural stigmas surrounding it, which is a big reason why FOHSE has partnered with Cannabis Business Times and their annual Cannabis Leadership Awards ceremony. This is a prime opportunity to elevate the best of the best as a beacon for all entrepreneurs, as well as to show the world how the industry is maturing.”

Illinois must license at least 50 new adult-use cannabis dispensaries by the end of this year, and after previous licensing blunders, regulators are working to simplify the cannabis retail licensing process.

The Illinois Department of Financial and Professional Regulation (IDFPR) is filing new rules to streamline the applications in an effort to remove barriers for social equity applicants and expand opportunities for the communities most impacted by prohibition, according to a local KHQA report.

The 50 additional adult-use retailers are required under Illinois’ Cannabis Regulation and Tax Act (CRTA), which passed in 2019 to legalize adult-use cannabis in the state. IDFPR plans to issue 55 conditional licenses across the existing 17 BLS regions detailed in the law, KHQA reported.

Under the IDFPR’s proposed rules, qualified social equity applicants can apply for the licenses online with certain basic information, such as the name of the organization, a list of principal officers and contact information, as well as a $250 fee, according to the news outlet.

The application window is expected to open during late summer or early fall of this year, KHQA reported, depending on when the rules are finalized.

TALLAHASSEE, Fla., March 16, 2022 – PRESS RELEASES – Trulieve Cannabis Corp., a leading and top-performing cannabis company in the United States, launched its nationwide Supplier Diversity Initiative. The initiative provides education and professional development resources, while creating mutually beneficial business relationships with a supplier base reflective of the customers and communities Trulieve serves.

Suppliers nationwide are encouraged to register with Trulieve's supplier database. Through the company's comprehensive Supplier Diversity Initiative, Trulieve will consider all varieties of products and services from marketing and software, to cleaning supplies, training, construction and other ancillary services that support Trulieve's day-to-day operations.

"Trulieve's Supplier Diversity Initiative showcases how cannabis leaders can positively impact local business communities while promoting diversity, equity, and inclusion throughout the cannabis industry," Trulieve CEO Kim Rivers said "As Trulieve broadens its services and operations, we look forward to establishing new professional relationships with diverse business owners who wish to be active participants in this rapidly growing sector."

As corporate members of the National Minority Supplier Development Council, Women's Business Enterprise National Council, Small Business Administration, Veterans in Business Network, National Gay & Lesbian Chamber of Commerce, and Disability Inclusion, Trulieve is actively seeking partnerships with diverse suppliers by participating with these certifying organizations and attending council events.

In November 2021, Trulieve published its inaugural Environment, Social, and Governance (ESG) Report establishing several long-term Diversity, Equity, and Inclusion (DEI) initiatives. The Supplier Diversity Initiative is the latest extension of Trulieve's commitment to creating a more inclusive and accessible cannabis industry aligned with the company's ethics and governance standards. Since entering Georgia, Trulieve has already allocated a significant portion of its supplier contracts to local minority, woman and veteran-owned companies—well above the state's recommended 20% diversity threshold. 

For more information on Trulieve's Supplier Diversity Program or to register as a supplier, please visit trulieve.quantumsds.com or email [email protected].

California’s Sonoma County is cutting taxes for local cannabis farmers in an effort to aid the industry, which is struggling to survive under county and state tax policies.

RELATED: ‘Surviving is Thriving’ in California’s Cannabis Market

The Board of Supervisors unanimously approved a measure March 15 to slash local cannabis growers’ taxes by 45%, retroactive to July 2021 and effective through June 2023, according to The Press Democrat.

During this time, county officials will study the benefits and costs of taxing cultivators by gross receipts rather than square footage, the news outlet reported.

“If we don’t take action, we are killing permitted businesses in this county,” James Gore, chair of the board, told The Press Democrat.

One of the largest cannabis companies in the world is appealing a nearly half-million-dollar fine stemming from a 2019 outdoor cultivation operation that allegedly preceded the proper licensure in Canada’s largest market.

Ontario-based Canopy Growth Corp. was fined CA$434,611 in 2020 by the Canada Revenue Agency (CRA), a penalty that the company is now appealing in Federal Court, the National Post reported.

After Canada legalized adult-use cannabis in late 2018, Canopy Growth set up a corporate subsidiary in early 2019 that applied for a cultivation license from Health Canada for an outdoor farm. The company is now arguing that it complied with federal regulations, according to court documents obtained by the daily newspaper.

Canopy Growth received a license from Health Canada in June 2019, and then additional licensure allegedly needed to begin cultivation came from CRA roughly a month later. About a year after that, CRA officials sent the company notice of the fine for allegedly beginning cultivation too early (between the two forms of licensure), implying that it violated Canada’s Excise Act.

“The receipt and cultivation of vegetative cannabis plants prior to obtaining a cannabis licence under the [Excise Act] is a contravention of the [Excise Act],” reads a CRA letter to Canopy Growth, as quoted in the obtained court document.

In its appeal, Canopy Growth’s defense argues it fully complied with the law because it believes nothing in the Excise Act prevents it from beginning cultivation while waiting for the follow-up licensure from CRA, the National Post reported.

New York has launched a web-based portal that will allow hemp farmers to apply for licenses to grow adult-use cannabis during the 2022 growing season, according to an announcement from Gov. Kathy Hochul’s office.

“New York is moving full speed ahead to create the most inclusive adult-use cannabis industry in the nation through our Seeding Opportunity Initiative," Hochul said in a public statement. "This initiative will create meaningful opportunities for economic empowerment for New York farmers and impacted communities. Now that our application portal is open, I encourage every eligible New York farmer to participate in the farm-to-sale pipeline that will create jobs and opportunity throughout the Empire State."

The portal, which went live March 15, allows eligible hemp farmers to apply for Conditional Adult-Use Cannabis Cultivator licenses, which were created through legislation that Hochul signed into law last month.

RELATED: Inside New York’s Legislation to Allow Hemp Farmers to Grow Cannabis for the State’s Adult-Use Market

To qualify for a license, an applicant must have been an authorized industrial hemp research partner for the New York Department of Agriculture and Markets, growing hemp for at least two of the last four years and in good standing as of Dec. 31, 2021, when the research program ended.

Oklahoma lawmakers advanced a bill that aims to create a payment tracking ecosystem, and they intend to test it out on their state’s medical cannabis industry.

House Bill 3279, the Oklahoma Distributed Ledger Technology Assets Offering Act, aims to authorize the state to develop and use “hack-resistant” technologies to open the door for convertible virtual currency transactions.  

The legislation, sponsored by Rep. Justin Humphrey, a Republican who chairs the Criminal Justice and Corrections Committee, drew bipartisan support with House members voting, 75-11, to pass it on March. 15.

The bill states, “This act shall first be implemented for the lawful regulation of the medical marijuana industry so long as the commodity is lawfully permitted for use in the state of Oklahoma.”

One of several anticipated benefits of a newly established payment tracking ecosystem listed in the bill includes “enhancing the stability” of any legal market by using a cashless, electronic fund transfer of digital assets for transactions to maximize “micropayment capabilities” for the business community.

Humphrey told CBS-affiliate News 9 that his bill would bring medical cannabis banking into the 21st century for legal Oklahoma operators.

Georgia lawmakers have been busy working on proposals to jumpstart the production and sale of low-THC cannabis oil in the state after licensing disputes delayed the rollout of the program.

Two different bills to revive the state’s medical cannabis program passed the House and Senate March 15, the Crossover Day deadline for legislation to pass at least one chamber of the Georgia Legislature to stay alive this year, The Atlanta Journal-Constitution reported.

RELATED: Georgia Lawmakers Consider Legislation to Redo Medical Cannabis Licensing Process

The state’s roughly 20,000 registered patients have suffered years of regulatory limbo that allowed them to possess—but not legally purchase—the medical cannabis oil, which can contain no more than 5% THC under state law.

Gov. Brian Kemp signed legislation in 2019 to legalize the production and sale of the oil, and a new regulatory body, the Georgia Access to Medical Cannabis Commission, licensed six companies last year to do the job.

Medical cannabis tax money that’s supposed to help support New Yorkers in need of addiction and criminal justice services has done nothing but gather dust since 2014.

New York’s Office of Addiction Services and Supports has accumulated roughly $1.6 million, while the state’s Division of Criminal Justice Services has accrued roughly $1.4 million in medical cannabis tax funds, as of Feb. 28, according to New York Cannabis Insider.

While the state mandated a portion of medical cannabis revenue be allocated to those two agencies eight years ago, neither has touched the funds since, NYCI reported.

“Why aren’t they drawing down this money, and why is it sitting there?” state Sen. Diane Savino questioned when contacted by the news outlet.

Savino, who announced last month she intend to retired after 18 years as a state senator, tackled legalization as the lead sponsor for New York’s medical cannabis legislation in 2014.

“It’s not like there isn’t a need [for the funds],” she said. “Just spend it—allocate it and send it out the door.” 

Editor's Note: David Holmes, CEO and founder of Clade9, is featured on the cover of the March 2022 issue of Cannabis Business Times. Read more about how he started his journey in the cannabis industry here. Details about his cultivation vision, priorities and post-harvest processes are below. 

Over the years, David Holmes, CEO and co-founder of Los Angeles-based Clade9, has grown plants in everything from deep water culture to rock wool.

Holmes was growing in deep water culture when he first met famed photographer and cannabis author Mel Frank, whose books Holmes had read when he was first learning to grow two decades ago. Frank had been looking for a grower with a precise setup to help one of his colleagues conduct an “experiment … on the effect of UVB ultraviolet on THC production, whether it enhanced it or did anything,” Frank recalls.

“Deep water is pretty sensitive,” Frank says. “A lot of things that can go wrong with it. Equipment failures, microbial problems, stuff like that, because basically you're just growing a plant in pure water. It needs oxygen being bubbled in. Temperature has to be monitored very closely.”

Frank recalls thinking immediately, “Well, this guy's got this together. If he's able to operate this and bring a crop through this, he knows what he is doing.”

Today Holmes grows in rockwool at Virtue's Las Vegas facility and at his L.A. operation.

The 2022 “Best Cannabis Companies to Work For - Dispensary” employee survey included questions about key areas related to employee satisfaction, including leadership and planning, corporate culture and communication, role satisfaction, relationships with supervisors, training and development, pay and benefits, and overall engagement. On average, the ranking “Best Cannabis Companies” posted an employee engagement rate (which measures job satisfaction and pride in working for the company) of 90% compared with 77% for employers that did not make the list.

Here is a closer look at how the employees of “Best Cannabis Companies” rate their employers in those key areas compared to the rest of the non-ranking participants. Employee feedback comprises 75% of each company’s total score.

The 2022 “Best Cannabis Companies to Work For – Dispensary” survey also asked employers about the benefits their companies offer, including health insurance, paid time off, retirement plans, profit sharing, tuition reimbursement, and efforts to create and foster a culture of diversity, among others.

Here is a deeper dive into various benefits ranking companies offer compared to non-ranking participants. It’s important to note that while many non-ranking companies offer more benefits in certain areas, employer-provided information comprises just 25% of each company’s score for this feature. Therefore, employees’ job happiness, satisfaction, and sense of pride in working for the company were bigger factors in making an organization a Best Cannabis Company to Work For.

Check out the 2022 Best Cannabis Companies To Work For – Dispensary

LASVEGAS, March 15, 2022 – PRESS RELEASE – GreenBrozInc., known as an industry-disruptive innovator of post-harvest processingtechnology for the cannabis industry, officially announced the release of its Model G Precision Grinder + Destemmer. Featuring afirst-of-its-kind continuous throughput system, the Model G is the firstcombination destemmer and grinder on the market.

Removingstems from milled flower efficiently while maintaining product quality andcontrolling particle size have been substantial obstacles for operators toovercome.

"Itis a significant milestone for us to be able to deliver this technology thatsolves the long-standing problem of creating uniform particulates for thepre-roll, concentrates and edibles segments while maintaining a high degree ofquality, efficiency and throughput," said Cullen Raichart, founder and CEOof GreenBroz. "Five years of concentrated work by our engineering team andcountless hours of testing has produced what we are confident is an enduringsolution."

TheR&D team's key innovation is the Model G's patent-pending triangular bladeassembly. When combined with the low torque, low-RPM motor it allows for a highdegree of control over particle size while its gentle actuation generates lessheat, maintaining the integrity of high-value terpenes and trichomes,maximizing THC content per pound.

"Unlikeother machines on the market today that pulverize buds, the Model G wasdesigned to gently deconstruct the bud to yield the uniform grind size of yourchoice," said GreenBroz engineer Dylan Cruz.

The ModelG comes with 1/8-inch, 5/32-inch or 3/16-inch mill size interchangeablescreens, giving customers control and flexibility. The unit can be completelycustomized by adding a stainless steel perforated metal sheet of any size.

DENVER,March 16, 2022 – PRESS RELEASE – Schwazze announced that it hassigned definitive documents to acquire all the assets of Urban Health &Wellness Inc. The proposed transaction includes the adult-use Urban Dispensary,located at West 38th Avenue and Clay Street in Denver's vibrant Highlandsneighborhood, as well as a 7,200-square-foot indoor cultivation facility (2,700square feet of canopy) located in Denver. This purchase continues Schwazze'saggressive expansion in Colorado and upon close will bring the company's totalnumber of Colorado dispensaries to 23 and grow facilities to four.

Theconsideration for the proposed acquisition is $3.2 million and will be paid as$1.3 million cash and $1.9 million stock at closing. The acquisition isexpected to close in the second quarter of 2022 after the Colorado MarijuanaEnforcement Division and local licensing approval.

“We lookforward to the addition of the Urban group, including the strategically locatedUrban Dispensary and its Denver grow facility to our expanding pipeline ofassets in Colorado. Delivering our brands and our excellent customer serviceinto new neighborhoods is a Schwazze hallmark as we continue to go deep in thestate. We also look forward to welcoming the Urban team to our growing Schwazzefamily," said Nirup Krishnamurthy, Schwazze's chief operatingofficer.    

SinceApril 2020, Schwazze has acquired or announced the planned acquisition of 33cannabis dispensaries as well as seven cultivation facilities and twomanufacturing assets in Colorado and New Mexico. In May 2021, Schwazzeannounced its BioSciences division, and in August 2021 it commenced homedelivery services in Colorado.