MjLink Cannabis Business News and Press

As reform advocates remain waiting for President Joe Biden to fulfill campaign pledges to decriminalize cannabis, pardon nonviolent offenders and reschedule the plant, a new White House policy has emerged.

Under the Biden administration’s new employee conduct guidelines, individuals who have invested in cannabis companies can be denied security clearance, POLITICO reported March 2.

The news sheds continued light on anti-cannabis stances by the president as it pertains to employment. Last year, Biden’s employment policies came under the scope following alleged reports that dozens of young White House staffers were suspended or asked to resign due to past cannabis use.

Discouraging potential White House job seekers from investing in cannabis companies is the latest.

“Eligibility may be negatively impacted if an individual knowingly and directly invests in stocks or business ventures that specifically pertain to marijuana growers and retailers,” according to a government document obtained by POLITICO. “Decisions to willfully invest in such activity could reflect questionable judgment and an unwillingness to comply with laws, rules, and regulations.” 

The document didn’t explicitly clarify which cannabis stocks or companies—American or non-domestic—the White House was referring to.

Ontario cannabis businesses that became accustomed to providing delivery and curbside pickup services during 2020 government shutdowns associated with COVID-19 can now utilize those supply avenues for the foreseeable future.

The Alcohol and Gaming Commission of Ontario (AGCO) announced March 1 that the temporary provisions that authorized cannabis delivery and curbside pickup—through the Reopening Ontario Act of 2020—will become permanent March 15.

The announcement comes after Ontario, Canada’s largest adult-use market, had a record year of $1.47 billion in retail sales for 2021, representing a 106% year-over-year increase for the province.

RELATED: Canada Eclipses CA$3.9 Billion in Cannabis Sales for 2021

“Please note that the new rules for delivery still will not permit cannabis retail stores to operate entirely or predominantly as delivery businesses,” AGCO’s announcement stated. “The new rules will allow cannabis retailers to continue to safely offer consumers greater choice, convenience and access to legal recreational cannabis.”

AGCO’s new requirements for delivery include:

Medical cannabis dispensaries in Hawaii have a new set of rules to adhere to.

The Hawaii State Department of Health (DOH) revised its interim administrative rules for the state’s medical cannabis licensing program, with the new rules taking effect Feb. 24.

The original interim rules centered on implementing Hawaii’s medical cannabis program and getting dispensaries up and running to serve patients, according to a press release announcing the revised rules.

The new rules focus on six specific areas, according to the release, including:

The revised interim rules can be found on the DOH website, which also offers and executive summary and a frequently asked questions page.

Pass Christian and Ridgeland became the first two cities in Mississippi to opt out of the state’s medical cannabis program this week.

City leaders decided March 1 that they will not host cannabis cultivators, processors and dispensaries, according to a SuperTalk Mississippi Media report.

The Board of Alderman in Pass Christian said it is too early to opt-in, the news outlet reported, and expressed interest in seeing how other municipalities deal with Mississippi’s medical cannabis program before they welcome the industry.

RELATED: Mississippi Will Start Accepting Medical Cannabis Applications by June

The state’s medical cannabis law, signed Feb. 2 by a reluctant Gov. Tate Reeves, allows counties and municipalities to opt out within three months of the bill being signed into law. Residents can then petition for a local election to overturn their city’s decision, SuperTalk Mississippi Media reported.

TORONTO, March 3, 2022 – PRESS RELEASE – TerrAscend Corp., a leading North American cannabis operator, announced the appointment of Kara DioGuardi to its board of directors. A Grammy-nominated songwriter, producer, record executive, music publisher, Broadway actress and former American Idol judge, DioGuardi's credits include 320 songs released by major labels, 11 of which have earned Grammy nominations, 23 BMI Awards and more than 50 charting singles, cumulatively surpassing 1 billion streams. DioGuardi co-founded Arthouse Entertainment, a music publishing company that holds past and present copyrights of many of the industry's most popular Grammy-winning artists.

"I am thrilled to add Kara to our board and look forward to leveraging the knowledge and insights she gained as a trailblazer in the music publishing industry," said Jason Wild, executive chairman of TerrAscend. "In particular, her deep brand building expertise and eye for talent and product appeal will be beneficial as we integrate our business with Gage Cannabis and focus on increasing brand equity across our core markets." 

In addition to her extensive music industry career, DioGuardi co-founded Inspired Nation in 2016, a nonprofit that aims to provide young aspiring artists with a platform to tell their stories. All proceeds from Inspired Nation's singing competitions benefit youth-focused charities.

Prior to founding Arthouse and Inspired Nation, DioGuardi held several roles in the music industry throughout her career, including music producer and label executive for Billboard Magazine.

DioGuardi graduated from Duke University in 1992 with a Bachelor of Political Science and Government, and presently serves on five boards, including the MLC and NMPA S.O.N.G.S. boards.

GATINEAU, Quebec, March 03, 2022 (GLOBE NEWSWIRE) -- PRESS RELEASE -- HEXO Corp., a producer of cannabis products, today announced that the company has taken a significant step in executing on its strategic plan, The Path Forward, by finalizing a strategic partnership with Tilray Brands, Inc., which includes a new debt financing agreement.

Under the new agreement, Tilray Brands will acquire US$211 million of senior secured convertible notes that were originally issued by HEXO to HT Investments MA LLC. The new terms of the notes are significantly more favorable to HEXO and will enable the company to strengthen its balance sheet and accelerate its transformation into a cash flow positive business within the next four quarters. The new partnership also brings together Canada’s top two cannabis market share leaders and is expected to create efficiencies of up to C$50 million within two years which will be shared equally between HEXO and Tilray Brands.

“My top priority since I joined in November has been to fix a very challenged balance sheet as a result of the notes that were previously put in place, and today, after an exhaustive search for alternatives, we are announcing the most optimal agreement to strengthen our balance sheet, preserve value for shareholders and provide HEXO with the capital to execute on our The Path Forward plan,” said Scott Cooper, HEXO president and CEO. “This strategic alliance will help lower our costs, preserves our stand-alone optionality and we look forward to reaching a definitive agreement shortly.”

Irwin D. Simon, Tilray Brands’ chairman and CEO, said, “We believe the proposed transaction is a win-win for Tilray Brands and HEXO as it would launch a strategic partnership between two leading Canadian cannabis producers with complementary brand portfolios. For us, it provides a path for meaningful future equity ownership of HEXO and enables us to participate in HEXO’s share price appreciation as it continues to execute on its growth initiatives. We also expect to realize further commercial and production efficiency savings of up to C$50 million within two years, which would be shared equally and would allow us to continue being the leading, low-cost Canadian producer. I look forward to working with HEXO’s management team and Board to create additional brand awareness and shareholder value.”

“Restructuring HEXO’s debt is a critical first step in allowing the company to move forward with its Path Forward strategy and to begin to unlock significant shareholder value,” said Mark Attanasio, chair of the Board of Directors of HEXO. “The company has endured a crippling overhang for the past 12 months, due to punitive redemptions and discounted dilutive financings, and we needed to solve this issue in order to make positive progress. This new deal accomplishes this and places HEXO solidly on a path to growth.”

Wisconsin is one of 13 states remaining without medical or adult-use cannabis legalization, but a pair of indications this week point toward growing support for reform.

In Green Bay, the state’s third-largest city, officials approved changes to an ordinance relating to cannabis possession. The city’s Common Council members voted unanimously March 1 to lower fines to $0 for possession of 28 grams or less of cannabis in public or private spaces for those 21 and older. Offenders would only be responsible for $61 in court costs under the changes.

The current ordinance sets a maximum penalty at $500 for possession of 28 grams or less of cannabis with no distinction in penalties for minors.

Also this week, Marquette Law School pollsters revealed the results from a recent survey that shows 61% of Wisconsinites support cannabis legalization, the highest percentage since the survey began in 2013, while 31% oppose it.

In addition, 51% of Republicans in the state now support cannabis legalization, opposed to 43% who supported it when the question was first asked in 2013. Democrats who support legalization jumped from 53% to 75% in that same timeframe.

Reflecting that growing support for reform in Green Bay, the city’s proposal faces a second vote at the next council meeting before the revised ordinance takes effect, the Green Bay Press Gazette reported.

LAS VEGAS, NV (March 3, 2022) – Cannabis Conference, produced by the award-winning trade publications Cannabis Business Times, Cannabis Dispensary, and Hemp Grower and taking place Aug. 23-25 at Paris Las Vegas Hotel & Casino—today announces its 2022 education program.

The Cannabis Conference 2022 education program includes 45+ sessions that will provide actionable takeaways about the most pressing issues plant-touching businesses face in the cannabis industry.

Some of the most highly anticipated sessions from the four education tracks of this year’s program include:

Click here to view the full agenda.

“Cannabis Conference is the go-to industry event for plant-touching professionals—whether you are new to the industry or taking your established cannabis business to the next level,” Conference Programming Director Cassie Tomaselli said. “The sessions at Cannabis Conference will be full of takeaways specifically for cannabis cultivators, dispensary operators, extraction professionals, and hemp growers. In curating our program, we leaned heavily on the expertise of our 20 advisory board members, who are leaders in some of the most prominent and successful companies in the industry.”

In addition to dozens of sessions on everything from cultivation to facility buildout, operations, and retail and cultivation business strategies, as well as invaluable networking opportunities, Cannabis Conference will also feature 230+ exhibitors on its trade show floor, including experts in horticultural lighting, nutrients, growing media, pest control, structures, drying and storage, IT services, marketing solutions, accounting and finance, POS software, packaging and labeling, and much more.

CHICAGO, March 1, 2022 – PRESS RELEASE – Verano Holdings Corp., a leading multistate cannabis company, announced it has drawn an additional $100 million under its existing credit agreement pursuant to a fourth amendment to such credit agreement, to fund expansion and strategic growth initiatives, per its previous announcement on Feb. 1, 2022, at a non-dilutive interest rate of 8.5%.

As part of such amendment to its credit agreement, funding for up to an additional $175 million at a future date was added, which lending commitment is subject to final agreement and conditions with the company’s lenders. Chicago Atlantic Advisors LLC is the lead administrative agent and collateral agent, with participation from AFC Gamma Inc.

LOUISVILLE,Colo., March 2, 2022 – PRESS RELEASE – Global cannabis sales for 2022 will reachjust over $35 billion, a jump of approximately 22% over 2021 sales of $29billion, according to BDSA’s most recent five-year rolling market forecastupdate. BDSA forecasts global cannabis sales will surpass $61 billion in 2026,a compound annual growth rate (CAGR) of more than 16%.

“Thoughmost legal cannabis markets saw sales soften in the second half of 2021, theglobal cannabis market is expected to see brisk growth in 2022, driven bystrong sales in new and emerging markets in the U.S., steady growth in Canadaand international markets lead by Mexico and Germany,” said Jessica Lukas,chief commercial officer at BDSA.

Lookingback at 2021, new markets in the U.S. experienced some of the strongest growth,especially in the Midwest. Illinois sales grew approximately 70% in 2021,totaling $1.8 billion, while Missouri’s medical-only market reached anunexpected high of $210 million.

Emergingmarkets are also expected to be a major driver of sales through 2026, as thenumber of non-legal states is rapidly dwindling. The pace of legalization couldeven increase as the latest wave of medical and adult-use bills are seeingunprecedented bipartisan support at the state level.

United States
Legal cannabis sales in the U.S. will surpass $28 billion in 2022, growth ofapproximately 20% over 2021’s $24 billion. BDSA forecasts U.S. sales to reach$46 billion in 2026, a CAGR of approximately 14% from 2021.

California,which launched its adult-use market in 2018, will remain the largestcontributor to overall U.S. sales growth. Several other markets are expected tobe major contributors to total U.S. legal sales by 2026, with the next top fourcontributors to growth being New York, New Jersey, Florida and Michigan.

New York is now allowing hemp farmers and processors to apply for conditional licenses to cultivate, manufacture, and distribute cannabis for the state’s adult-use market.

Former Gov. Andrew Cuomo signed New York’s adult-use cannabis legalization bill into law in March 2021, but throughout the rest of his time in office, he made little headway to help shape the state’s adult-use market.

In August 2021, New York elected Kathy Hochul as governor. When Hochul was appointed, she noted that getting the state’s cannabis program up and running was a main priority, Cannabis Business Times reported. And she’s been actively working toward that goal.

To help jumpstart New York’s adult-use cannabis market, Hochul signed Senate Bill S8084 into law Feb. 22.

RELATED: New York Governor Signs Bill to Allow Hemp Businesses to Grow Cannabis for Adult-Use Market

The legislation allows hemp farmers to apply for a conditional adult-use cannabis cultivator license to grow cannabis this year to help supply the state’s adult-use market. As previously reported by Hemp Grower, “the conditional licenses will allow hemp farmers to grow cannabis outdoors, or in a greenhouse, for up to two years from the date the license is issued.”

The number of jurisdictions that are willing to house adult-use cannabis dispensaries nearly doubled overnight in Vermont.

More than 40 communities voted on whether to allow the state’s forthcoming retail industry to operate within their borders during “Town Meeting Day” on March 1, and 25 of those towns and cities approved their measures, VT Digger reported.

Those communities join more than 33 Vermont municipalities that have already approved retail cannabis operations before this week, according to the Vermont League of Cities and Towns (VLCT).

“It’s a very important moment for Vermont,” James Pepper, chair of the Vermont Cannabis Control Board, told VT Digger. “We want Vermonters to be able to access this product close to their home as opposed to having these cannabis deserts around Vermont.” 

Essex, the second-largest community in Vermont and the biggest to hold a cannabis-related vote Tuesday, approved the sale of adult-use cannabis, 3,589-2,473, on Tuesday, the news outlet reported.

Also among the larger localities to approve measures Tuesday were Barre, Bristol, Hartford, Manchester, Milton and Springfield.

Name: Chad McCoy

Rhode Island lawmakers will again take up adult-use cannabis legalization this year, but this time around, they are including a key detail in their proposal to help the legislation cross the finish line.

RELATED: Rhode Island’s Top Lawmakers Say Adult-Use Cannabis Legalization Bill Will Pass in 2022

Legislators in the House and Senate introduced identical legislation March 2 that defines who will regulate the new industry, a detail that held up last year’s legalization proposal, according to The Providence Journal.

The bill establishes an independent three-member cannabis control commission to oversee the adult-use cannabis market, the news outlet reported. Oversight of Rhode Island’s medical cannabis industry, which is currently regulated by the Department of Business Regulation (DBR), would also eventually transition to the new commission under the legislation.

Last year, the Rhode Island Senate approved an adult-use cannabis legalization bill that called for a similar commission, but the House’s version of the legislation charged the DBR with regulating the new industry, The Providence Journal reported.

The Georgia House Regulated Industries Committee unanimously approved legislation March 1 that would revive the rollout of the state’s medical cannabis program, according to the Atlanta Journal-Constitution.

State Rep. Alan Powell’s (R-Hartwell) House Bill 1400 would allow the state to license 16 companies that protested Georgia’s licensing process and have since held up the rollout of a regulated program to provide low-THC oil to registered patients.

After years of regulatory limbo that allowed registered patients in Georgia to legally possess—but not purchase—the oil (which must contain no more than 5% THC), the Legislature passed legislation in the spring of 2019 to legalize the production and sale of the oil in the state.

RELATED: Georgia Will Now Allow the Production and Sale of Low-THC Medical Cannabis Oil

The Georgia Access to Medical Cannabis Commission then licensed six companies in July 2021 to produce and sell the oil to the state’s patients, but 16 unsuccessful applicants challenged the licensing process, which has since delayed the rollout of the program.

Legislation being considered by the Ohio House would add autism spectrum disorder (ASD) as a qualifying medical condition for the state’s Medical Marijuana Control Program.

House Bill 60 has bipartisan support, including primary sponsorship from Democratic Rep. Juanita Brent and Republican Rep. William Seitz, as well as 16 cosponsors.

During an unsuccessful effort to add ASD to the list of qualifying conditions last year in Ohio, proponents said allowing legal access to cannabis would help those with autism alleviate certain symptoms of ASD that other forms of medicine prescribed by doctors have fallen short on.

“I am the mother of a 15-year-old with severe autism who has been using medical cannabis successfully in [Pennsylvania] for four years,” Erica Daniels said in a March 2021 testimony to the Ohio House Health Committee. Daniels is an autism advocate and founder of Hope Grows for Autism.

“There is a body of research to support this in addition to empirical data and testimony of thousands of parents and self-advocates,” she said. “Without medical cannabis, my son would be in an institution right now.”

Focusing on three clinical trials from 2016 that examined the effects of medical cannabis on individuals with ASD, an October 2019 article published by peer-reviewed journal BMC Psychiatry stated, “Results from these groundbreaking clinical trials have the potential to help build support for evidence-based recommendations regarding medical cannabis use amongst patients with ASD.”

Adult-use cannabis sales are scheduled to launch April 1 in New Mexico, and that’s no joke. 

Albuquerque, the state’s largest city with more than a half a million people, has already approved 25 retail locations among 36 businesses that have submitted applications so far, according to the city’s Planning Department.

The department requires businesses seeking to operate within the city to first obtain a state-issued cannabis license. There are currently no fees involved with the online application process for retail locations to be approved by the city.

Applications for another five locations are under review, four are awaiting review and two have been denied. A map of those locations and names of businesses is available here.

So far, Urban Wellness has secured five locations in the city, while Canvas Organics Enterprises LLC, Enchanted Botanicals LLC and FCI of New Mexico have been approved for two locations apiece.

Albuquerque’s Integrated Development Ordinance provides that a cannabis retail establishment shall not be located within 300 feet of a school or child care facility, or within 60 feet of another cannabis retail establishment. However, state-licensed cannabis microbusinesses can be located within 600 feet of another retail business.

Costa Ricans may soon have access to medical cannabis after the nation’s Congress approved legislation that would authorize not only a medical cannabis program, but also the cultivation of industrial hemp.

Costa Rica’s Congress passed the bill March 1 after years of discussion and a presidential veto on an earlier version of the proposal, according to a Reuters report.

President Carlos Alvarado said the legislation is “of great benefit to Costa Rica” after legislators from Costa Rica’s ruling party and several opposition groups signed off on it in an effort to boost the country’s economy and reduce the illicit market, the news outlet reported.

The bill requires medical cannabis producers to register with health institutions and submit to reviews by the Costa Rican Drug Institute (ICD), according to Reuters.

Alvarado is expected to sign the legislation into law as early as this week, the news outlet reported.

It’s no secret that California’s legal cannabis industry has struggled to thrive since the commercial adult-use market launched in January 2018.

For Graham Farrar, co-founder and president of Glass House Brands, a Santa Barbara-based cannabis operator with more than half a million square feet of cultivation space, high taxes and a shortage of retail outlets are straining the world’s largest cannabis market.

“Right now in California, surviving is thriving, but I think the opportunity on the other end makes it more than worthwhile,” he says.

California’s two-tiered licensing system has, from the outset, created challenges for the market, Farrar says. The state has not set a cap on the number of cannabis licenses it will issue, but businesses cannot get a state license without first securing a municipal license—and more than 60% of California’s municipalities still ban cannabis operations in their jurisdictions.

Local bans on cannabis have created a shortage of dispensaries for the state’s cultivators to supply with product. Farrar says that before California voters passed Proposition 64 to legalize adult-use cannabis, there were 3,500 to 5,000 dispensaries operating under Proposition 215, the state’s medical cannabis law. Now, he says, there are roughly 1,000 retailers.

Two proposed bills–one in Utah and another in California–would give veteranarians greater freedom to discuss hemp- and cannabis-based medicines with animals’ owners.

Senate Bill 209 in Utah would clarify that licensed veterinarians are “not prohibited from discussing the effect of cannabis on an animal with the animal’s owner,” according to the bill text. This includes treatments with THC or other cannabinoids from industrial hemp or medical cannabis.

Meanwhile, Assembly Bill 1885 would give veterinarians the right to discuss and recommend cannabis and cannabis products as medicine or supplements for pets. The bill would protect veterinarians from disciplinary or financial penalty for discussing cannabis-based treatments with pet owners. It also proposes veterinarian board-certified guidelines and cannabis industry quality control standards and guidelines to be developed and followed.

Both bills are currently moving through their state legislatures.

The bills fall in line with a growing trend of consumers looking to try pet CBD products for their animals. A recent survey from Brightfield Group showed discussions with professionals are key to helping them feel comfortable enough to purchase and use pet CBD products.