MjLink Cannabis Business News and Press

DENVER, Colo. - February 10, 2021 - PRESS RELEASE - The Colorado Department of Revenue (CDOR) released December 2021 cannabis sales figures and January 2022 cannabis tax and fee revenue figures, and reports a new record for cannabis sales in a single year. In 2021, Colorado reports over $2.22 billion from marijuana sales (compared to the previous record of over $2.19 billion in 2020). Here is the summary:

The Marijuana Sales Reports summarize total sales made by medicaland retail cannabis stores monthly by county. The Marijuana Tax Reports showstate tax and fee revenue collected monthly as posted in the Colorado stateaccounting system. Tax revenue comes from the state sales tax (2.9%) oncannabis sold in stores, the state retail cannabis sales tax (15%) on retailcannabis sold in stores, and the state retail cannabis excise tax (15%) onwholesale sales/transfers of retail cannabis. Fee revenue comes from cannabis license and application fees.

To view the full reports, please visit the following CDOR Office of Research and Analysis (ORA)’s webpages:

As the legalization of adult-use cannabis sweeps Europe, stakeholders and emerging investors on both sides of the Atlantic are attempting to read the tea leaves to discern what the future holds. One emerging theme is the use of social clubs as a means for distribution. 

Social clubs are nothing new to Europe, as coffee shops in the Netherlands function as the primary distribution channel in that market. Similar establishments operate all over Barcelona, as well. Legal social clubs seem to be a popular proposition for adult-use markets by new European governments. 

So, will U.S.-style dispensaries emerge supreme, or will social clubs be the dominant adult-use retail model?

North American Dispensary Models Can Crush Diverse Market Activity

If you have been watching U.S. and Canadian markets, the somewhat oligopolistic dispensary system is the currently accepted framework for retail business development. 

In the U.S., some state licensing systems have faced allegations of underhanded dealings and nepotistic hiring practices, with lawsuits in Illinois and Massachusetts bringing infamy to the same state markets with some of the most progressive social equity licensing programs in the country. U.S. social clubs (often referred to as on-site consumption lounge in some early-adopting states) have yet to take off, and rules currently in development in states like Nevada will need to be carefully crafted so as not to exclusively benefit only a few currently licensed dispensary owners. 

The Canadian market is mostly dominated by the largest corporations. Compare this to Europe, wherein the Netherlands owners of mom-and-pop coffee shops make a modest living creating a warm and safe consumption environment. Barcelona follows a similar path with local club members having a safe environment to consume cannabis, albeit in the regulatorily ambiguous environment of Spain. 

Three weeks of debating medical cannabis legalization culminated in the South Carolina Senate voting to approve a bill the author has dubbed as the most conservative in the nation.

The Senate voted, 28-15, on Feb. 9 to approve the SC Compassion Care Act on a second reading (passing it for all intents and purposes), before the legislation officially cleared the chamber via a third reading Feb. 10. It now heads to the House for consideration.

Debate on the legislation began Jan.  26 on the Senate floor, more than seven years after Sen. Tom Davis, a Beaufort Republican, started crafting legislation and advocating for a medical cannabis program.

“What I’m trying to do is let doctors do what they think is in their patient’s best interest. What is so radical about that?” Davis said on Jan. 26, before the debate extended to several more floor sessions. “What’s radical is, is that we’re letting law enforcement and politicians tell doctors what’s in their patient’s best interest. That’s what’s ludicrous!”

Through the past three weeks, Davis has continually advertised the legislation as one that would legalize the most conservative medical cannabis program in the country.

Specifically, the bill includes 13 qualifying conditions, with tight definitions of those conditions, and would require doctors to have in-person relationships with patients, run background checks for a history of substance abuse, and create written treatment plans. In addition, smoking cannabis as a method for use would be banned under the legislation.

DENVER, Feb. 10, 2022 /CNW/ - PRESS RELEASE - Schwazze, has announced that it has closed the transaction to acquire MCG, LLC (Emerald Fields). Emerald Fields is the owner and operator of two retail cannabis dispensaries, located in Manitou Springs and Glendale, Colo. This successful acquisition is part of the company's ongoing retail expansion plan in Colorado and New Mexico, bringing the total number of dispensaries the company operates to 32.

Editor’s Note: Los Angeles-based Sixty Four & Hope represents one of the earliest operating social equity cannabis businesses. What follows is a reflective discussion between Aja Allen, owner-operator of Sixty Four & Hope’s Mid-City location, and Rhavin L, owner-operator of Sixty Four & Hope’s Melrose District location.

Aja Allen: We started our social equity journey three years ago. When I first heard about social equity, I thought it was just about money—righting the wrongs of the war on drugs, pseudo reparations. But when I dug deeper, I realized it was about more than money.

Along with roughly 700 other people from South LA, Rhavin and I attended an information session hosted by our now parent company, 4thMVMT. The company's CEO, Karim Webb, explained the program to us and laid out the opportunity social equity provided and what it could mean for our community.

Not only was this an opportunity for us to become entrepreneurs, but it was fair. It was moral. It was integrity. The potential income of owning our own business could change the trajectory of our lives and the lives of our family and community. But it's so much more than just money. I had heard of Karim through his work with the California Community Foundation and his Buffalo Wild Wings. It was the first sports bar we've ever had at Crenshaw and MLK Blvd., which was a big deal for our community. So instantly, I was comfortable; it felt right. Social equity, for me, is fairness. It's equality; it's all of it. And I knew this was something I wanted to be involved in.

Rhavin L: Yeah, I felt the same way. I didn't know Aja at the time, but I knew a few other people who attended the information session. I have always been a smoker, but it was about starting a business for me. It was about being able to support my family, and to help my community and relatives locked up for something as small as an eighth. It's ridiculous, especially when you have large multi-state operators making millions while people remain in jail. I've always wanted to live that saying, “be the change you want to see in the world,” and this is one way I can do that. It's important that I am contributing to the hope this industry provides.

In 2019, the U.S. Department of Justice (DOJ), led by former Attorney General William Barr, launched 10 Antitrust Division probes that involved cannabis companies, accounting for 29% of the total merger investigations that year.

In 2020, a DOJ whistleblower testified before the U.S. House Committee on the Judiciary that these investigations were not bona fide antitrust investigations, as they did not meet the standard internal requirements for proceeding with a Second Request subpoena, which the DOJ must file to formally object to a merger.

Instead, John Elias, a career employee at the DOJ, alleged that Barr was motivated by his personal dislike of the cannabis industry when he launched the antitrust investigations.

RELATED: Whistleblower Alleges that U.S. Attorney General William Barr Launched Unfounded Antitrust Investigations into Cannabis Mergers

Now, as reports surface that President Joe Biden’s administration will pay more attention to antitrust concerns, particularly in the tech and media spaces, some cannabis industry stakeholders may be wondering whether the increased scrutiny will again land on their operations.

LAS VEGAS – Feb. 9, 2022 – PRESS RELEASE – Nevada’s oldest and largest cannabis trade association, the Nevada Cannabis Association (NCA), previously the Nevada Dispensary Association, has named Brandon Wiegand as its new president. 

Wiegand, chief commercial officer for the Nevada-based cannabis operator The Source+, has been a member of the NCA since 2015 and has served as a board member since 2019. Established in 2015, The Source+ is a vertically integrated business with four dispensaries across Nevada, in addition to manufacturing, cultivation and production operations. Born and raised in Las Vegas, Wiegand has extensive leadership experience in the state’s cannabis industry. Wiegand assumes the role of president after the NCA’s previous president, Tisha Black, stepped down to run for Nevada attorney general. 

“We are grateful for Tisha’s service to the NCA and her leadership in the cannabis industry,” said Wiegand. “I am looking forward to building on the NCA’s current momentum. We are adding new members and voices to the association, increasing educational and compliance resources for the industry, and advancing policies at the federal, state, and local level to help cannabis businesses stabilize and grow."

Created in 2014, the NCA recently expanded its membership beyond dispensaries to include cultivation, production and distribution licensees, independent testing laboratories, and affiliated cannabis businesses across Nevada. The NCA supports cannabis companies through four channels: government affairs and lobbying, education and compliance resources, networking events, and exclusive business partnerships.

The cannabinoid craze continues as HHC, chemically known as hexahydrocannabinol, has hit the scene as one of the latest hemp-derived newcomers.

Like delta-8 THC, delta-10 THC, and other related cannabinoids, many questions revolve around what HHC is, its legal status, where it comes from, and more.

While HHC seems to be emerging into the spotlight recently, it’s not exactly new.

The semi-synthetic compound was first discovered in the 1940s by a chemist named Roger Adams through a process called hydrogenation. Adams added two hydrogen molecules to delta-9 THC, the primary psychoactive compound found in cannabis, to convert THC to HHC, Way of Leaf reports.

While Adams synthesized HHC from cannabis-derived THC, today, it can also be converted from hemp-derived cannabinoids such as delta-8, according to Roger Brown, the president and founder of ACS Laboratory, a cannabis, hemp, and CBD testing laboratory in Florida.

How is HHC Made? Hydrogenation Explained.

Studies have found HHC is naturally occurring in cannabis, but only in trace amounts. Therefore, all HHC on the market is currently derived through THC conversion.

Colorado legalized medical cannabis in 2000 and adult-use in 2012, but employers can still deny employment to or fire workers due to their off-the-clock cannabis use.

New legislation in the statehouse aims to remedy this, according to The Colorado Sun.

House Bill 1152, sponsored by Reps. Edie Hooton and Brianna Titone, would bar employers from firing employees for cannabis use, as well as require employers to let their workers consume medical cannabis on the job.

Workers whose jobs are in dangerous fields or require the use of heavy machinery would be exempted from the law, The Colorado Sun reported.

“Marijuana is legal in Colorado,” Titone told the news outlet. “And what people do in their spare time that doesn’t impact their work shouldn’t really be a problem for them. They should be able to enjoy the legal things that we have here in Colorado and not be penalized for it.”

The Utah Cannabinoid Product Board has taken a stance against delta-8 THC after patient advocates and some of the state’s pharmacists have been raising awareness about the potential health effects of medical cannabis products that contain the compound, according to a local KUER report.

“They still say it today that the delta-8 will help treat your symptoms without getting you high,” Mindy Madeo, a pharmacist at Beehive Farmacy in Brigham City, told the news outlet. “So, if you don't want to get high, you should use delta-8. But to me, that's a very dangerous statement for something that is psychoactive.”

The Utah Cannabinoid Product Board has heard from researchers and reviewed literature on delta-8, and board members voted unanimously Feb. 8 to take a stance against the compound, as well as other “analog cannabinoids,” according to KUER.

“At this time, there is no evidence of therapeutic benefit of the analog derived synthesized cannabinoids, [including] delta-8 THC,” Dr. Perry Fine, chair of the Utah Cannabinoid Product Board, told the news outlet. “Risks have been described by federal regulatory bodies and peer reviewed publications regarding delta-8 THC. At this time, we do not support any therapeutic uses of analog cannabis products.”

RELATED: Delta-8 THC Has ‘Serious Health Risks’ Warns Two Federal Agencies

Those hoping to get an early start as players in New York’s forthcoming adult-use cannabis market may have shot themselves in the foot for future licenses. 

The state’s Office of Cannabis Management (OCM) sent out letters Tuesday ordering businesses suspected of illegally selling or gifting cannabis to cease and desist those activities. Failure to do so would threaten their ability to legally participate the state’s adult-use market under the Marijuana Regulation and Taxation Act (MRTA), enacted in March 2021, the letter states.

“You are hereby directed to cease any, and all, illegal activity immediately,” the letter states. “Failure to cease this activity puts your ability to obtain a license in the legal cannabis market at substantial risk. The unlicensed sale of cannabis is illegal and subjects you to substantial fines and possible criminal penalties.”

While former New York Gov. Andrew Cuomo signed MRTA into law March 31, 2021, it wasn’t until September 2021 that the state’s regulatory authority got off and running through current Gov. Kathy Hochul’s nominations of Chris Alexander, for the executive director role at OCM, and Tremaine Wright for chair of the office’s Cannabis Control Board.

Under MRTA, legal, licensed and taxed sales of adult-use cannabis can begin only after the state approves regulations set forth by the five-member control board.

“We have an obligation to protect New Yorkers from known risks and to strengthen the foundation of the legal, regulated market we are building,” Wright said in a statement.  “We will meet the goals of the MRTA to build an inclusive, equitable and safe industry. Therefore, these violators must stop their activity immediately, or face the consequences.”

U.S. Senate Majority Leader Chuck Schumer says he will formally introduce his much-anticipated Cannabis Administration and Opportunity Act (CAOA) in April after releasing a draft of the proposal last summer.

Schumer announced the news at a Feb. 4 press conference, according to a NORML report.

The legislation, which was initially announced in July 2021, would decriminalize cannabis at the federal level by removing it from the Controlled Substances Act.

RELATED: Industry Experts, Stakeholders Offer Their Takes on Cannabis Administration and Opportunity Act

“In the coming weeks, we’re ramping up our outreach and we expect to introduce final legislation,” Schumer said at the press conference. “Our goal is to do it in April. Then we begin the nationwide push, spearheaded by New York, to get the federal law done. As the majority leader, I can set priorities. This is a priority for me.”

New legislation on Capitol Hill aims to advance the U.S. hemp industry by addressing unresolved issues stemming from the implementation of the 2018 Farm Bill.

The Hemp Advancement Act of 2022, introduced Feb. 8 by Rep. Chellie Pingree (ME-01), is meant “to improve the 2018 Farm Bill’s hemp provisions and provide greater clarity and flexibility to hemp growers and processors,” according to a press release from Pingree’s office.

“The 2018 Farm Bill laid a legal pathway for hemp production but created overly complicated regulations and hardship for farmers and small businesses in the process,” Pingree said in a public statement. “I am introducing The Hemp Advancement Act of 2022 to eliminate unworkable testing requirements, set reasonable THC thresholds for producers and processors while protecting consumers, and end the discriminatory policy that bans people with drug convictions from growing legal hemp. My bill takes a commonsense, straightforward approach to correct these unintended implementation problems and works to make the hemp industry more profitable and more equitable. My bill also provides a clear path forward for this industry and will support a thriving hemp economy.”

According to the press release, the legislation would to the following:

The following organizations support the Hemp Advancement Act of 2022, according to the press release:

Those hoping to enter the forthcoming medical cannabis industry in Mississippi may have the lights turned out before they even get going.

That’s because officials from the Tennessee Valley Authority (TVA), a federally owned utility company and one of three main suppliers of wholesale electricity in north Mississippi, have indicated they will not provide power to facilities that grow or sell medical cannabis, the Daily Journal reported.

A statement from TVA officials points to the federal illegality of the plant as its basis.

“Given this important point, TVA will not direct any federal resources or funds to the cultivation and/or distribution of marijuana,” the statement reads. 

The announcement comes just days after Gov. Tate Reeves signed legislation making Mississippi the 37th state to legalize medical cannabis.

RELATED: Mississippi Governor Signs 'Medical Marijuana Bill'

California is investing $35 million more into its cannabis equity programs, applicants and licensees, the Governor’s Office of Business and Economic Development (GO-Biz) announced Feb. 7.

The funding is through the Cannabis Equity Grants Program for Local Jurisdictions, which aims to advance economic justice for populations and communities harmed by cannabis prohibition through providing support to local jurisdictions as they promote equity and eliminate barriers to entry for applicants and licensees.

The $35 million in allocations brings California’s commitment to local equity funding to $90 million since the program launched, GO-Biz Director Dee Dee Myers said in a press release.

“Cannabis equity grants will help level the playing field for those that have borne the brunt of past federal and state anti-drug policies while striving to make California’s cannabis industry more equitable and accessible to those individuals,” said Myers, who also serves as Gov. Gavin Newsom’s chief economic and business adviser.

The funding will help jurisdictions develop their equity programs by providing low/no-interest loans or grants, reduced or waived licensing fees, and technical assistance to help applicants and licensees navigate regulatory requirements, according to the release.

Local jurisdiction funding for cannabis equity applicants/licensees include:

Las Vegas, NV, February 07, 2022 — PRESS  RELEASE — Mobius, a manufacturer of pharmaceutical-grade cannabis trimming and automation equipment, released on Tuesday a landmark guide explaining Good Manufacturing Practices (GMP) for cannabis processing.

The downloadable PDF seeks to simplify the complex yet important topic of GMP with “plain-English translations” backed by insight from industry experts.

TORONTO, Feb. 8, 2022 – PRESS RELEASE – Tilray Brands Inc., a leading global cannabis-lifestyle and consumer packaged goods company, announced the launch of Tilray Medical, a global medical platform that unifies the company's medical cannabis brands under one strategy, mission and vision. 

Denise Faltischek, head of international and chief strategy officer, said, "Tilray is the global leader in the advancement of cannabinoid-based medicine, with a focus on providing research-backed medical cannabis products to physicians, pharmacies and patients. By unifying the global medical divisions of Tilray and Aphria under a cohesive strategy and mission, Tilray Medical emerges as the premier global supplier of a portfolio of high-quality, effective medical cannabis brands and products for patients in need around the world."

Under the Tilray Medical consolidation plan, patients in Canada will have the broadest access to the company’s medical cannabis brands and product choices globally, including Tilray, Aphria, Broken Coast, and Symbios. Subject to local regulatory approvals, Tilray Medical's global portfolio of medical cannabis products includes high-quality and GMP-certified flower, oils, vapes, edibles and topicals. Looking ahead, Tilray Medical will continue to expand its offering to patients worldwide.

For more information on Tilray Medical, visit Tilray Medical Canada, Tilray Medical Australia, Tilray Medical Australia-New Zealand, Tilray Medical Europe.

NEW YORK - NY  Welcome to the future of cannabis! Black Buddha Cannabis (BBC) is set to establish a new paradigm for the industry as a black-owned, environmentally conscious, wellness-focused, and equity-driven brand. BBC was created in response to Roz McCarthy’s personal health journey and informed by her experience leading Minorities for Medical Marijuana (M4MM), The brand is the latest offering from Soaring High Industries, the parent company founded by McCarthy to introduce and connect social equity and socially conscious brands to licensing and partnership opportunities.

BBC’s premiere lifestyle and wellness products will be found at leading dispensaries across the country through state-by-state brand partnerships with equitable manufacturers, cultivators, and operators. California (California Cannabis), Michigan (One Love Labs), Nevada (Zion Gardens), and Ohio (Beneleaves) will be among the first states in a roll-out that will continue to build their reach within the global cannabis community through licensing and proprietary product agreements.

“I’m a proud Black woman raised by a mother who encouraged me to think big and dream bigger,” said McCarthy. “The creation of M4MM and BBC is a testament to hard work, tenacity, and perseverance.”

Already an industry leader through her work as founder of M4MM the largest 501c3 community-based organization serving individuals and communities traditionally overlooked by the cannabis industry, McCarthy was recently involved in a car collision where she suffered a traumatic brain injury. She reclaimed her life and health through the use of cannabis and hemp, combined with daily therapy and Buddhist practices and healing modalities, including mantras and meditation. BBC was created as a testament to her healing as the branded products introduced to consumers will focus on wellness and healing.

Creativity, Zen/Relaxation, Wellness/Pain Relief, and Enlightenment are among the experiences to be accessed through BBC’s signature "One Hitta Quitter" (OHQ) glass chillum, a unique product via a partnership with PrePacks. The glass chillums, which made their debut at the prestigious Hall of Flowers are 100% recyclable and have received rave reviews from users for their discreet and easy use. BBC’s proprietary fast-acting gummies, formulated by Crystal Webber, feature mouth-watering flavors like Strawberry Punch for Energy, Blackberry for Rest, and Watermelon for Balance. Actor and cannabis advocate Malik Yoba will serve as chief strategy officer, directing activation, education, marketing, and promotion for the brand.

Sustainability and social equity are baked into the DNA of the brand, as BBC is focused on doing business without negatively impacting the environment, community, or society as a whole.

PORTLAND, Ore., Feb. 8, 2022 /PRNewswire/ -- PRESS RELEASE -- Thompson Duke Industrial, a provider of cannabis oil vaporizer device filling and capping equipment, is now providing automated solutions for filling and capping the Dablicator Oil Applicator. The patented Dablicator Oil Applicator, invented by California's Jetty Extracts, is designed to precisely dispense cannabis oil, CBD, live resin and related products for various medical and adult use applications. Thompson Duke's equipment allows the Dablicator Oil Applicator to be filled at scale by automating the filling and capping processes. 

"One of our primary goals as a company is to help our clients and partners create lasting, significant efficiencies on the manufacturing floor," said Chris Gardella, Chief Technology Officer for Thompson Duke Industrial. "Our partnership with Dablicator Oil Applicator is a good example of achieving this goal. They were looking for a way to provide a filling and capping solution for their devices, at scale, to meet the growing demand in the cannabis industry. Our equipment helps their customers' production by automating a formerly manual process." 

Thompson Duke's automated IZR and ACF1 industrial filling machines are capable of dispensing various viscosity oils to fill the Dablicator Oil Applicator with extreme accuracy, precision and repeatability. Thompson Duke has also created a custom method and solution for capping the Dablicator Oil Applicator using the company's LFP Press. The LFP press is a benchtop, fully pneumatic four-ton industrial press, capable of rapidly capping a large array of Dablicator Oil Applicators. These industrial solutions developed by Thompson Duke allow the Dablicator Oil Applicator partners to fill large orders quickly and efficiently. 

Mike McDonald, president of Dablicator, said, "Demand for Dablicator Oil Applicator is increasing dramatically. We are excited about the custom and innovative solutions Thompson Duke Industrial has created for our partners. These solutions will make possible the fulfillment of much larger orders in far shorter timeframes. Thank you Thompson Duke!"

Lack of access to capital and navigating a two-tiered state and local regulatory system are just two of the many barriers to entry that many aspiring cannabis business operators face in California. Usually, these challenges are multiplied for minority-owned businesses.

That’s why, in 2017, the city of Sacramento launched its Cannabis Opportunity Reinvestment and Equity (CORE) program to help remove barriers to entry and provide support for these businesses.

RELATED: Sacramento Plans to Use State Funding to Help Cannabis Businesses Navigate Licensing Process

Here, Davina Smith, manager of Sacramento’s Office of Cannabis Management, shares insight into how the program works.

Melissa Schiller: What is Sacramento’s CORE social equity program?

Davina Smith: Launched in 2017, the city of Sacramento’s Cannabis Opportunity Reinvestment and Equity (CORE) program was created to assist individuals and communities facing barriers to starting cannabis businesses due to the historical disparate enforcement of cannabis crimes. To be eligible for the CORE program, individuals and businesses must qualify under one of five classifications.