MjLink Cannabis Business News and Press

As South Dakotans have been preparing to pass an adult-use cannabis ballot measure a second time, state lawmakers advanced a bill Feb. 17 that may save voters from their ongoing battle to be heard.

The South Dakota Senate Commerce and Energy Committee voted, 5-3, on Thursday to approve legislation that aims to provide for the use and regulated sale of adult-use cannabis in the state. The proposal, Senate Bill 3, has bicameral and bipartisan sponsorship.

As amended, the bill would allow adults 21 and older to purchase and posses up to 2 ounces of cannabis from licensed retailers and reduce penalties for possessing greater amounts. Under current state laws and penalties, possessing 2 ounces or less is a misdemeanor punishable by up to one year of incarceration and a $2,000 fine, while possessing greater amounts is a felony, according to NORML.

Republican Sen. Michael Rohl, the bill’s primary sponsor, told committee members Thursday that the legislation aims to enact one of the more restrictive programs in the country, including a ban on home grows, The Associated Press reported.

When the bill goes to the Senate floor next week, Rohl told committee members he will tell the chamber that “the voters of South Dakota clearly expressed their will” when approving an adult-use measure by a 54.2% majority in the November 2020 election, and that upholding their will “is our complete responsibility. That’s why we’re here.”

Despite the 2020 election results, the South Dakota Supreme Court ruled the voter-approved initiative, Amendment A, unconstitutional in November 2021, pointing to a violation of the state’s single-subject rule.

Legislation that sought to increase social equity and diversity in Washington’s cannabis market died Feb. 15 after failing to clear the House, according to The Seattle Times.

House Bill 2022 aimed to incorporate policies recommended by Washington’s Social Equity in Cannabis Task Force, a group of lawmakers, government representatives and industry experts charged with making recommendations about issuing and reissuing cannabis dispensary licenses in ways that would promote business ownership among people of color.

RELATED: Washington State Lawmakers Consider Legislation to Increase Social Equity in Cannabis Market

The bill would have created new cannabis retail and producer/processor licenses every year through 2029 that could only be issued to social equity applicants through 2030. Then, beginning in 2031, the legislation mandated that half of the licenses were awarded to social equity applicants.

H.B. 2022 would have also set aside over $22 million annually to provide grants, low-interest loans and a mentorship program to social equity applicants, which the legislation defined as those who have lived in areas disproportionately impacted by prohibition, or those who plan to open a cannabis business owned by a racial group that has been disproportionately affected by arrests for cannabis possession.

WAKEFIELD,Mass., Feb. 18, 2022 – PRESS RELEASE – Curaleaf Holdings Inc., a leading international provider ofconsumer products in cannabis, announced the opening of its State Collegedispensary, located at 1248 S Atherton St, State College PA 16801. Oneadditional location, Curaleaf Erie, located at 7891 Peach St., is expected toopen in early March, pending final regulatory approvals. Curaleaf's latestlocations in State College and Erie will increase the company's footprint to 16dispensaries statewide and 127 across the country.

CuraleafState College is a beacon of education and advancement in patient carethroughout the state of Pennsylvania. Patients who walk through the doors ofthe company’s newest dispensary will have access to an array of Curaleafproducts such as vaporizers, concentrates and whole flower products, includingSelect Elite, Select Elite Live, Grassroots Full-Spectrum RSOs, RSO capsules, prepackagedflower and more. Patients can also safely access the store's full offerings byordering online at their convenience.

OnFeb. 21, the State College location will host a grand-opening celebration whichwill include an 8:45 a.m. ribbon cutting with Chamber of Business and Industryof Centre County, and will follow with vendor pop-ups from 12-2 p.m. In honorof the opening, Curaleaf donated $5,000 to Central Pennsylvania Food Bank. The companyalso celebrated grand openings in Wayne and Greensburg by allocating charitabledonations to local Pennsylvania-based nonprofits, including Urban AffairsCoalition and Balanced Veterans Network.

"Curaleafis excited to begin serving our newest patient communities in State College andErie through our premium medical products and inclusive retailexperiences," Curaleaf CEO Joe Bayern said. "Expanding our presencewithin Pennsylvania enables us to further support our patients by providingthem with quality products and service to make confident and informed decisionsabout their medical marijuana journeys."

Inaddition to Curaleaf's latest locations, the company also serves patients inAltoona, Bradford, Brookville, City Avenue, DuBois, Gettysburg, GreensburgHarrisburg, Horsham, King of Prussia, Lebanon, Morton, Philadelphia and Wayne.In the coming weeks, Curaleaf will offer grand-opening discounts to veterans,seniors, students and first-time patients at all Pennsylvania locations.

Formore information on store openings, along with product offerings and hours ofoperation, visit https://curaleaf.com/dispensary/pennsylvania.

In North Portland, Ore., Jesce Horton owns the property for his cannabis business, LOWD, and has been granted state licenses for cultivation, retail, and processing and extraction. Horton’s engineering expertise, devotion to continually improving pheno-hunting and cultivation practices, and commitment to diversity, equity, and inclusion, are some of his passions that have played into his success in connoisseur cannabis.

So, how have Horton and other people of color navigated the burgeoning cannabis industry as prohibition continues to disproportionately harm their communities, and what more does he believe must be done to ensure true equity?

“I've been called an eternal optimist by some people, and I am in a lot of ways, in that now, I think things are progressing in the right direction because it's very difficult to discuss legalization without having some social equity framework or having some focus on that,” Horton said. “So, I think that's a big win, and that’s an important step that we need to claim, and rightfully so.”

However, Horton said there still needs to be more diversity among business owners in the cannabis industry to further the industry’s betterment.

“I think you see the traditional hurdles of entrepreneurship for communities that don’t have access to capital, that do not have a history of entrepreneurship or entrepreneur success,” he said. “You see that in the cannabis industry. So, there are a lot of those typical hurdles that other people like me, black and brown people, who don't have those resources, experience. But in this industry, that's definitely compounded by the lack of … bank funding and things like that.”

Equity in Oregon

In Oregon, people of color who are working toward owning cannabis businesses face many of the same financial obstacles as others throughout the industry, Horton said, rattling off some of the main culprits: the banking issue, legal and compliance costs, high taxes, and legal payments.

Kentucky is one of 13 states remaining without medical or adult-use cannabis legalization.

And although no state has enacted an adult-use program without first installing a medical cannabis framework, a trio of Democratic state lawmakers in the Bluegrass State are hoping to go straight to the punch.

Rep. Rachel Roberts, Sen. David Yates and Senate Minority Leader Morgan McGarvey introduced LETT’s (Legalize, Expunge, Treat and Tax) Grow legislation, which they advertised as a comprehensive approach to adult-use legalization during a Feb. 17 press conference. They intend to file the bill in both legislative chambers.

The four components of the proposed legislation aim to:

The bill’s crafting has been more than a year in the works, Roberts said.

“Our legislation is the comprehensive plan that Kentuckians deserve, and it builds on what has worked in other states while avoiding their mistakes,” she said in the press conference. “This would be a boom for our economy and farmers alike, plus gives state and local governments a major new source of revenue.”

The New York Legislature has approved a proposal to allow hemp businesses in the state to grow and process adult-use cannabis to help get product on dispensary shelves when adult-use sales launch, according to a local WHEC report.

RELATED: New York Legislation Would Allow Hemp Businesses to Grow, Process Adult-Use Cannabis

The bill authorizes the New York Department of Agriculture to issue temporary and conditional licenses to industrial hemp growers who are in good standing and who have grown and harvested hemp for at least two of the last four years as of Dec. 31, 2021, the news outlet reported.

The legislation allows licensees to grow adult-use cannabis outdoors or in a greenhouse, according to WHEC.

Cultivators and processors with conditional licenses could then apply for a distributor license on June 1, 2023, and the licenses would expire on June 30, 2024, the news outlet reported.

The Alabama Senate Judiciary Committee approved a cannabis decriminalization bill Feb. 16 that would reduce penalties for possessing small amounts to a fine, according to a local WAAY report.

Senate Bill 160 would decriminalize up to 2 ounces of cannabis, although more than 2 ounces would still be considered unlawful possession, WAAY reported.

This is the second time that the bill’s sponsor, Sen. Bobby Singleton, has introduced a decriminalization measure in the state, according to the news outlet.

S.B. 160 now heads to the full Senate for consideration.

Introduced Feb. 15, Senate Bill 1074 suggests an end to the flat-rate cannabis cultivation tax in the state of California. If passed, the dry-weight tax on growers’ yields would fall off the books July 1. 

The current tax rate is $10.08 per dry-weight ounce for flower and $3 per dry-weight ounce for leaves. 

First enacted as part of the Medicinal and Adult Use of Cannabis Regulation and Safety Act (MAUCRSA) in the wake of 2016’s Prop. 64 vote, the cultivation tax has been the target of cannabis growers’ ire. It’s been seen by many as a hurdle for those growers interested in leaving the traditional market and finding a home in the newly regulated and licensed cannabis marketplace—one more financial burden.

State Sen. Mike McGuire, a North Coast Democrat, hopes to put an end to that tax.

However: “The bill would increase, from July 1, 2025, until July 1, 2026, the excise tax by an additional percentage that the Department of Finance estimates will generate half the amount of revenue that would have been collected pursuant to the cultivation tax, and would, beginning July 1, 2026, instead increase the excise tax by an additional percentage estimated by the department to generate the full amount of revenue that would have been collected pursuant to the cultivation tax.”

In other words, some of the financial losses the state will cede, in the event this bill passes, will be recouped by shifting the tax assessments over to the retail segment. As things stand now, the excise tax rate sits at 15%.

LEAMINGTON, Ontario, Feb.17, 2022 – PRESS RELEASE – TilrayBrands Inc., a leading global cannabis-lifestyle and consumer packagedgoods company focused on inspiring and empowering the worldwide community tolive its very best life, announced that its medical cannabis division, TilrayMedical, has completed its first sale of medical cannabis in Malta.Tilray’s EU-GMP medical cannabis products are now available in pharmaciesacross Malta,providing patients with safe and reliable access to high-quality medicalcannabis.

Denise Faltischek, Tilray’s chief strategy officerand head of International Business, said, “As demand for cannabis continues togrow across Europe,we’re incredibly proud to partner with established and reliable distributionpartners to supply new markets with high-quality medical cannabis whichpatients can rely on.”

In Malta,patients may obtain prescriptions for medical cannabis and a medical cannabiscard through family doctors. Medical cannabis cards are issued by Malta’s Officeof the Superintendence of Public Health.

Tilray has a pioneering track record as acompany committed to making EU GMP-certified, pharmaceutical-grade medicalcannabis products available to patients in need around the world and was thefirst to successfully export medical cannabis from NorthAmerica and import medical cannabis products into the EU in2016.

NEW YORK, Feb. 17, 2022 –PRESS RELEASE – Columbia Care Inc., one of the largest andmost experienced cultivators, manufacturers and providers of cannabis productsin the U.S., announced that its Brooklyn Heights location, located at 44 CourtStreet, is the first of its four dispensaries in New York to complete thetransition to Cannabist, the company’s new retail experience.

“We are thrilled to bring theindustry-leading Cannabist experience to New York, especially on the heels ofthe expanded patient access regulations announced by the Office of CannabisManagement,” Columbia Care CEO Nicholas Vita said. “We are proud to be able tooffer the highest quality cannabis products, the best customer service, and anapproachable dispensary experience featuring innovative technology solutions.New York is a transformational state for the cannabis industry, and we are wellprepared to serve both the growing medical community and potential adult-use marketas those conversations around the adult-use program implementation continue. Weare thankful to the OCM, local officials, and the borough of Brooklyn for theircontinued support in this important market and look forward to furthering ourCannabist footprint in New York and beyond in 2022.”

Cannabist Brooklyn features aproduct assortment that includes 41 whole and ground flower options, edibles,tinctures, topicals, vapes and a curated selection of hemp CBD products. Thedispensary will also carry the company’s own product brands, including Seed& Strain, Classix and Triple Seven, pending regulatory approval.

As one of 10 existing registered organizationsin the state, Columbia Care intends to add an additional four medicaldispensaries in New York, for a total of eight dispensaries in the state, threeof which will be co-located with adult-use, pending regulatory approval. The companyhas a cultivation facility in Rochester and had its first harvest in Decemberat its Riverhead greenhouse facility, one of the largest cultivation andproduction sites on the east coast.

Columbia Care was also thefirst operator to offer whole flower to the growing number of patients in NewYork in October 2021.The company also provides product through wholesale channels to other registeredorganizations across the state, with its product available on more than 85% ofretail shelves.

The store will hold a ceremonialribbon-cutting celebration at the dispensary Feb. 17.

Oregon’s cities and counties can currently levy a maximum local cannabis sales tax of 3%, but after some municipalities lobbied for higher taxes, the state Legislature is considering a bill that would allow local governments to raise the cannabis sales tax to 10%.

Senate Bill 1506, introduced Feb. 1 by Sen. Lynn Findley and Rep. Mark Owens, received a public hearing in the Senate Committee on Finance and Revenue Feb. 7.

If ultimately passed, the legislation would raise the total sales tax on cannabis from 20% to 27% when including the state tax rate.

The Oregon Retailers of Cannabis Association (ORCA) has come out in strong opposition of S.B. 1506, and the organization sent an email to its members Feb. 9 to urge them to contact their state leaders to express their concerns about the legislation.

“ORCA has submitted testimony in strong opposition to the bill—but we need as many of you as possible to contact leaders in state government to make sure they know that this bill would be extremely harmful to Oregonians,” the group wrote in the email.

A number of black-owned social equity licensees have banded together to support The Black Box Project in honor of Black History Month.

The Black Box Project was founded by Los Angeles-based dispensaries and brands to highlight the importance of social equity and inclusion in the cannabis industry while supporting black-owned cannabis businesses, according to a press release.

Dispensaries involved in The Black Box Project include Josephine & Billie's, Gorilla Wellness RX, Sixty Four & Hope, Mid-City, and Sixty Four & Hope, Melrose District. 

The collaboration between the companies introduces consumers to a range of black-owned cannabis businesses and brands, including: 3.5g of Daniel LaRusso (Ball Family Farms); 1g preroll of Laura Charles (Ball Family Farms); 3.5g of Clubber Lang (Ball Family Farms x Sixty Four & Hope); 5g preroll 2-pack (Wyllow); 1g Juseyo Wedding Cake preroll (Biko); 1g Cherry Gelato (Justice Tree); 510-thread rechargeable battery (House of Tyne); 3.5g 10-count preroll pack (Viola Brands); and 1g House Cured Resin Concentrate (Gorilla RX); and more. 

"It is absurd that we live in a world where black people are still the most likely to get arrested for cannabis, and the least represented in the legal market," says Whitney Beatty, CEO of Josephine & Billie's. "We need customers to stand with us and show the industry that an inclusive supply chain matters.

The list for pesticides that can be used on cannabis without being a violation of the Pesticide Applicators' Act has been updated. Please note the following products have been added:

To view the updated list, click here for a pdf or click here for an Excel form. For questions regarding this change, contact Jolynn Morris at (303) 869-9060 or email [email protected]. 

The Colorado Department of Agriculture (CDA) is currently reviewing pesticide labels upon request and maintaining a list of products whose label it has reviewed that it believes could be used on marijuana without violating 35-10-117(1)(i), as long as the applicator follows the label directions.

Please be sure to review the list; pesticide products may be removed from the allowed products list if the registrant has not renewed their pesticide product with the Department. Use of unregistered pesticides on cannabis would be a violation of the Pesticide Applicators' Act.

Stay Informed

AUSTIN, Texas (Feb. 16, 2022)—PRESS RELEASE—Fluence by OSRAM (Fluence), a global provider of energy-efficient LED lighting solutions for commercial cannabis and food production, launched its high-intensity fixture SPYDR 2h. The latest addition to Fluence’s SPYDR series, the high-output solution produces a photosynthetic photon flux (PPF) of 2,100 μmol/s, a 24% increase over previous fixtures.

Fluence designed the cutting-edge SPYDR 2h solution for indoor, multi-tier commercial cannabis cultivators aiming to optimize their growing environments, achieve greater crop yields and grow higher quality crops. The fixture offers high-intensity lighting, precise uniformity, increased efficiencies and features Fluence’s PhysioSpec BROAD R4 indoor white spectrum with efficacy of 2.6 μmol/J at 277V AC. In typical multi-tier rack systems, photosynthetic photon flux density (PPFD) levels of up to 1,500 μmol/m2/s can be achieved. The multi-tier luminaires are also easy to mount for a quick and flexible installation.

“High-intensity lighting is top-of-mind for commercial cannabis operations seeking to increase crop yields,” said Jordon Musser, chief product officer for Fluence. “We’re proud to provide growers the next generation in our SPYDR series—a higher-performing lighting solution—to boost their cultivation goals as they revolutionize operations through advanced cultivation strategies.”

Fluence’s fixtures are backed by science: The company’s multiyear global cannabis research trials demonstrate higher lighting intensities maximize crop yields. SYPDR 2h’s capability to increase PPF by more than 20% not only affords growers the opportunity to improve crop yield, but to also hone plant production to achieve specific traits such as higher THC percentages and more potent terpene profiles.

“Fluence is excited to introduce SPYDR 2h to cannabis cultivators throughout the world,” said David Cohen, CEO of Fluence. “As more states and countries introduce cannabis legislation—and the industry’s existing leaders evolve their cultivation environments—Fluence’s high-intensity LED technology offers cannabis customers uniformity and greater control within their facilities. We support cultivators every step of the way in implementing new solutions like SPYDR 2h to help them grow smarter, resulting in higher yields and better-quality cannabis crops.”

Missouri Rep. Ron Hicks (R-St. Charles) filed legislation Feb. 15 to legalize adult-use cannabis in the state, according to an Ozark Radio News report.

House Bill 2704, called the “Cannabis Freedom Act,” is an omnibus cannabis legalization bill that would allow hospitality operators, such as bars, restaurants and hotels, to offer cannabis consumption spaces, the news outlet reported.

The bill would also release all non-violent cannabis offenders from prison and create a system for individuals to expunge prior cannabis offenses from their records, according to Ozark Radio News.

The legislation includes additional provisions that would allow individuals on probation or parole to legally use cannabis.

H.B. 2704 would also create a tax deduction for applicants denied medical cannabis licenses in Missouri in the amount of application fees paid to the state. The bill creates an additional tax deduction for medical cannabis business operators who are unable to deduct business expenses from federal taxation, according to Ozark Radio News.

For the third year, we’re pleased to feature the Best Cannabis Companies To Work For in the cultivation segment of this fast-growing industry.

This is one of our favorite issues of the year, one in which we get to turn up the intensity of our spotlight on companies that are celebrating their employees and empowering a workforce in these trying times. As we noted in the print issue’s introduction, employee engagement has taken center stage as people search for work that brings a sense of satisfaction to their lives.

Between company benefits and more experiential perks, we picked out some of the best ideas guiding these businesses to their recognition this year. It’s one thing to work in the exciting cannabis space, but it’s another thing entirely to work for a company that values its employees and helps each individual meet goals along the way.

Each of these businesses provides more than a few lessons that we can all take back to our own workplaces.

And take note: The dispensary-focused Best Cannabis Companies To Work For feature will land in mailboxes as a special CBT supplement along with the March issue.

FRANKFURT, Germany, Feb. 16, 2022 /CNW/ - PRESS RELEASE - Cansativa Group announced today it has closed a $15M Series B investment. The funding round was led by Casa Verde with participation by Argonautic Ventures and Munich-based family office Alluti. This represents Casa Verde's largest investment in Germany and in Europe to date.

As one of Germany's largest cannabis businesses, Cansativa is building the 'Amazon' of cannabis for Europe, offering its customers a B2B platform to manage every stage of the value chain from importing goods to distributing them to thousands of pharmacies across the country. 

Given its exclusive relationship with German regulator, the Federal Institute for Drugs and Medical Devices (BfArM), Cansativa is the only company permitted to distribute domestically-grown medical cannabis.

The company will use the funding to expand its medical cannabis product portfolio and build out its recreational platform ahead of legalization in Germany.

"This investment from Casa Verde, one of the industry's preeminent cannabis venture firms, is a significant milestone for our company and sends a strong message to the European cannabis market," says Benedikt Sons, founder, managing director and CEO of Cansativa Group. "It will allow us to realize our ambitious vision to become the operating backbone for cannabis retail in Germany and to play a vital role in enabling simple and safe access to cannabis for everyone."

"Cansativa is strategically positioned to become one of the leading cannabis platforms in Europe," says Yoni Meyer. "The company combines crucial industry expertise with an ambitious vision and a rapidly growing success story. We firmly believe this team will play a central role in the expected legalization in Germany and have a decisive impact on the European market, projected to reach $3.6B by 2025."

DENVER,Feb. 16, 2022 – PRESS RELEASE – Schwazze announced that it hasclosed the transaction to acquire the assets of Denver-based Brow 2 LLC. Theplanned transaction includes a 37,000-square-foot building and equipmentdesigned for indoor cultivation. This transaction continues Schwazze'saggressive expansion in Colorado and will enhance the company's cultivationcapabilities, providing product directly to its dispensaries. Theconsideration for the acquisition was $6.7 million and was paid in cash atclosing.

"Thisis another step in building operational depth and capabilities in Colorado forSchwazze,” company CEO Justin Dye said. “This acquisition will add a talentedteam of growers, high-quality indoor flower cultivation capacity, new straingenetics, and another profitable asset to our platform. The new facility willsupply our growing network of dispensaries and customers with a broadassortment of high-quality indoor flower."

CorporateUpdate

Latein 2021, Schwazze announced a transformational $95-million raise withinstitutional investors and individuals, allowing the company to expedite itsaggressive expansion plans and become a regional MSO with operations inColorado and New Mexico. The company's differentiated strategy is to builda leadership position in retail and operational depth within its operatingareas.

SinceDecember 2021, Schwazze has completed five acquisitions adding a total of 15cannabis dispensaries, including Smoking Gun (December 2021); Drift (February2022); Emerald Fields (February 2022); and the 10 Greenleaf New Mexicodispensaries (February 2022).

SinceJuly 2021, the company has acquired a total of six cultivation facilities, twoin Colorado, including SCG Holding LLC (July 2021); and Brow 2 LLC (February2022)—and four licensed in New Mexico (February 2022). The Greenleaf NewMexico acquisition also added a manufacturing asset, Elemental Kitchen &Laboratories LLC, to the company’s Purplebee's manufacturing plant in Colorado.

TALLAHASSEE, Fla., Feb. 15, 2022 – PRESS RELEASE – Trulieve Cannabis Corp., a leading and top-performing cannabis company in the U.S., announced it has completed the acquisition of an operational 64,000-square-foot cultivation facility in Phoenix. Trulieve will pay $13.75 million cash at closing, with potential milestone payments subject to earn-out and escrow requirements.

"We are excited to close this acquisition which is in line with our strategic priorities," Trulieve CEO Kim Rivers said. "The facility strengthens Trulieve's presence in the cornerstone market of our Southwest hub, as well as expands our cultivation capacity. We look forward to serving more patients and customers throughout Arizona with our high-quality, proprietary brands."

The new cultivation facility immediately improves supply-chain capacity and becomes Trulieve's fifth cultivation facility in Arizona, supporting Trulieve's 17 dispensaries in the state with flower for medical patients and adult-use customers. Trulieve locations in Arizona include Avondale, Casa Grande, Chandler, Cottonwood, Glendale, Guadalupe, Lake Havasu, Mesa, Peoria, Phoenix, Scottsdale, Tempe and Tucson. 

I never intended to get into the cannabis industry.

I worked as an Urban Planner managing the Natural Resource Program for the County of Ventura, California, where I oversaw the surface mining and oil and gas programs. After moving back to the Inland Empire, where I grew up, I ended up consulting for a city that embraced the idea of commercial cannabis licenses. And before I knew it, I found myself looking at land-use issues around cannabis.

I quickly realized that cannabis would primarily be a land-use issue, a world I knew very well. I managed several dozen cannabis projects, including cultivation sites, extensive manufacturing facilities, distribution centers, and retail locations in California, and I consulted on projects in Washington, Oklahoma, and Nevada. Then I started working with policy and permitting and quickly found legacy operators who needed help with licensing and compliance.

The approach that I've always taken is bridging the gap between the regulatory body and operators. Because especially with cannabis, though I've seen it in oil and gas too, you are working with individuals who previously hid from the government. The harm that came from cannabis prohibition, particularly in the black community, and how police enforced it has been disproportionate. I don't think anyone would argue that, but what happens is it builds mistrust on both sides, rightfully so on one side.

So, we have operators who did not want to come forward because they didn't trust that the government would legitimately give them a license. The social equity process itself was long, daunting, and convoluted. Plus, don't forget that this transition requires legacy operators to go from having no regulations to having an oppressive number to keep up with. It's complicated.