MjLink Cannabis Business News and Press

Spoiler Alert: This 2022 outlook does not include references to federal legalization or SAFE banking legislation. In fact, the biggest opportunities in cannabis exist independently of any federal action. Additionally, operators that really think through how they can intersect with the largest themes in the industry will be best positioned for whatever is to come (whenever it arrives).

2021 was the year that cannabis as an essential business moved from pandemic crisis response to standard operating procedure. There has been time to refine and put into practice all the ways we responded to 2020 and COVID-19. Some states made big moves, and some states experienced growing pains brought on by regulation and supply conundrums.

I see the cannabis industry navigating two themes in 2022. These themes will present challenges and opportunities for all of us.

1. Normalization before legalization

Cannabis is quickly becoming part of everyday life in America. That train has left the station. 68% of Americans support full legalization and 91% believe cannabis should be available for medicinal purposes. Pop culture continues to embrace cannabis (looking at you Bieber, Seth Rogen, Jay Z, and Kate Hudson). Mainstream media is running feel good stories on the medical benefits of cannabis—and I’ve noticed more people adjacent to the industry making an effort to learn and participate. This is the first time an industry will reach normalization before it is fully legal. The friction that illegality creates must be navigated as normalization pulls the industry forward into the limelight. What are those key navigational landmarks? I’ve outlined them below:

Existing programs will evolve; and new states will enter the mix.

Current medical programs will continue to expand. Minnesota is adding smokable flower in Q1 2022, and edibles on Aug. 1. Also, the state will have doubled the number of open dispensaries in the past two years. Ohio is expanding licenses and several other states are opening additional license opportunities.

DENVER, Colo. December 30, 2021 -- PRESS RELEASE -- Marijuana rules from the General Assembly’s 2021 legislative session go into effect on Jan. 1, 2022 for all regulated marijuana businesses across Colorado. New rules of note include the reduction of daily sales limits of medical concentrate from 40 grams to eight grams (two grams for 18-20 year olds), the development of an educational resource stores are required to provide with every concentrate purchase, and a new process for outdoor cultivations to establish and obtain approval for contingency plans to prepare and respond to adverse weather events. Final rules were adopted by the State Licensing Authority on Nov. 10, 2021 after a summer and fall of extensive stakeholder engagement led by the Marijuana Enforcement Division (MED).

“The General Assembly delegated significant items for MED to tackle during rulemaking this year, and we wouldn’t have been successful without the active engagement and hands-on effort we received from our stakeholder community,” said Dominique Mendiola, MED Senior Director. “While parties didn’t always agree, the diverse perspectives of our stakeholders were critical to ensuring we ultimately got to a place of acceptable compromise that aligned with the legislative direction. But, our work isn’t complete. We will continue to refine regulations and support the implementation of these new rules well into 2022 and beyond.”

Highlights of notable key rules that go into effect on Jan. 1 include:

As a result of HB21-1317: Regulating Marijuana Concentrates:

As a result of HB21-1301: Cannabis Outdoor Cultivation Measures:

PORTLAND, OR. – In a special meeting on December 28, 2021 the Oregon Liquor andCannabis Commission approved significant changes for regulating the legal marijuana industry and put in place standards for regulating hemp products sold in Oregon’s general marketplace. The changes in the recreational marijuana rules package reflect the cannabis industry’s rapid evolution and the blurring of distinctions between hemp and marijuana products. 

Portland, OR – December 27, 2021 – PRESS RELEASE – Chalice Brands Ltd., a consumer-driven cannabis company specializing in retail, production, processing, wholesale and distribution, has announced the company received all required regulatory approvals from the Oregon Liquor Control Commission (OLCC) and Clackamas County to complete its previously announced acquisition of the assets of Tozmoz, LLC, an Oregon limited liability company, and it has reached an agreement on final terms.

“We are happy to formally close the transaction with Tozmoz, a partner that has been instrumental in strengthening Chalice’s product portfolio, specifically for Elysium Fields and RXO. While we awaited for the necessary regulatory approvals, unexpected delays occurred because of the ongoing pandemic. As a result of the closing, Chalice will continue to benefit from the expertise and broad capabilities that Tozmoz provides to support our product-focused business strategy, with the opportunity to further expand our diverse portfolio of products,” stated Jeff Yapp, president and CEO of Chalice. “With a focus on serving the highest quality of cannabis products on the market, our combined organizations are poised to leverage our ability scale as we continue to cement our position as a leading West Coast operator.”

Pursuant to the terms of the Asset Purchase Agreement, Chalice purchased substantially all the assets of Tozmoz, including the facility located in Clackamas County, which serves as the headquarters for multiple extraction options as stated above, for total consideration of 1,268,116 shares of Chalice stock, a 48-month promissory note for US$400,000 bearing six percent interest, and forgiveness of $650,000 of promissory notes owed to Chalice. Chalice has satisfied certain conditions by way of the previous consulting agreement with Tozmoz, resulting in zero cash due at closing.

Founded in 2015 as one of the first OLCC licensed processors in Oregon, Tozmoz established itself as a premier cannabis extractor in the state. Tozmoz offers multiple extraction processes including CO2, hydrocarbon and ethanol, and both short path and wiped film distillation. Additionally, Tozmoz provides product manufacturing and formulation, as well as packaging services, providing clients OLCC-approved products ready for wholesale distribution and retail sale.

“Having worked closely with Chalice over the past year, I couldn’t have asked for a better leadership team to help elevate my business to a much higher level. When it comes to the field of cannabis, I am a dinosaur, and I have never seen a team in this industry so capable of building a true west coast cannabis powerhouse,” commented Joel Klobas, Co-founder of Tozmoz.

CHICAGO and VANCOUVER, British Columbia, Dec. 30, 2021 (GLOBE NEWSWIRE) -- PRESS RELEASE -- Green Thumb Industries Inc., a national cannabis consumer packaged goods company and owner of RYTHM, Good Green and incredibles branded cannabis products, has announced it has closed on an acquisition of LeafLine Industries. As one of only two licensed cultivators in the Minnesota medical cannabis market, LeafLine is licensed to grow, process and dispense cannabis directly to patients.

“We are excited to enter the Minnesota medical market and broaden access to cannabis products for Minnesota patients,” said Green Thumb Founder and Chief Executive Officer Ben Kovler. “We look forward to caring for LeafLine’s existing patients while ensuring a seamless transition. And looking ahead, we are ready to begin providing patients access to high-quality flower and edible products, both of which have been recently approved. As we kick off 2022, Green Thumb is thrilled to welcome over 100 new team members, a new state and five new retail locations.”

The acquisition of LeafLine includes a cultivation facility and five open and operating retail locations in Eagan, Hibbing, St. Cloud, St. Paul and Willmar. Green Thumb will also maintain the opportunity to open up to three additional retail locations in the state.

With the acquisition, Green Thumb has cannabis operations to serve over 50% of the United States population, including in: California, Colorado, Connecticut, Florida, Illinois, Maryland, Massachusetts, Minnesota, Nevada, New Jersey, New York, Ohio, Pennsylvania, Rhode Island and Virginia.

With a population of nearly six million people, Minnesota began medical cannabis sales in 2015 and currently has only about 29,000 registered active patients according to the Minnesota Department of Health. The state currently has 17 qualifying conditions, including chronic pain, multiple sclerosis, post-traumatic stress disorder and seizures. Products available include vape, tinctures and topicals, with flower and edibles coming later in 2022. Green Thumb’s presence in Minnesota will further enhance and support the medical cannabis patient community through its high-quality branded products and experiences.

Curaleaf Holdings, a vertically integrated multistate cannabis [and CBD] operator, is facing a wrongful death lawsuit, the latest in a string of lawsuits related to mislabeled products.

Curaleaf is currently facing 10 lawsuits from consumers who allegedly ingested an incorrectly labeled CBD tincture that contained "undisclosed levels of THC," according to a product recall notice issued by the Oregon Liquor and Cannabis Commission (OLCC).

The recall was issued Sept. 21 for a single batch of the mislabeled CBD product, which was produced by Cura CS LLC and sold under Curaleaf's Select brand. Curaleaf acquired Cura and its Select brand in 2019 in a $948.8-million all-stock deal.

Peter Clateman, Curaleaf chief legal officer, tells Cannabis Business Times and Hemp Grower that about 500 bottles from the batch were sold.

The OLCC expanded the recall Sept. 24 to include another Select tincture that said it contained 1,000 mg of THC on the label, but after a round of preliminary tests, the OLCC found that the product did not contain any detectable THC. According to OLCC, Curaleaf sold an estimated 630 units of the mislabeled tincture.

Curaleaf acknowledged the mislabeling of the two tinctures was caused by "human error."

The holiday season is the perfect time to reflect on the year that was and set goals for the year that has yet to be. With that in mind, we checked in with our advisory board members to learn what they see as an important lesson from 2021 and a key trend to keep an eye on in 2022. It’s a pivotal moment in cannabis, but aren’t they all? 

When Flora Growth debuted on the Nasdaq in May 2021, the company publicized the U.S.-based initial public offering (IPO) as the first known cannabis cultivator to list without using a special purpose acquisition company (SPAC), reverse merger or dual listing. The move included a $30 million pre-IPO equity raise in 2020, and then another $16.6 million once it completed the IPO.

Since then, the globally motivated company, which leverages natural, low-cost cultivation practices on a roughly 250-acre, all-outdoor operation in Bucaramanga, Colombia, has been full steam ahead on executing its strategic plans, including a headquarters relocation from Toronto to Miami.

During the past six months, Flora Growth has acquired California-based Vessel Brand Inc., a vaporization brand, for $30 million, and entered into various partnerships and distribution agreements.

Specifically, Flora Growth also made a $2.4-million preferred supplier investment to a Hoshi International subsidiary in Portugal, and the company also secured a licensing agreement to enter the cannabis beverage market under the Tonino Lamborghini luxury lifestyle brand, with a CBD product line that aims launch in the first quarter of 2022.

RELATED: Cannabis Pipeline to Europe is Open; Flora Growth is Investing

These moves are the first of many synergistic steps intended by Flora Growth to launch its 300-plus products across the world, president and CEO Luis Merchan told Cannabis Business Times.

Leaders in the Rhode Island House and Senate say they are very close to reintroducing legislation to legalize adult-use cannabis in the state, and that the issue has the support it needs to cross the finish line next year.

“We’re very close to being able to, in the month of January, release the framework of a bill that will begin a robust public hearing and vetting process,” House Speaker K. Joseph Sherkarchi (D-Warwick) told Providence Business News.

Senate Majority Leader Michael McCaffrey (D-Warwick) told the news outlet that lawmakers plan to introduce the legislation early in the 2022 legislative session and get a vote in both chambers by February.

“Once it goes through the hearing process, I think that it will pass in both chambers overwhelmingly,” McCaffrey told Providence Business News.

In early 2021, Rhode Island lawmakers unveiled a pair of adult-use cannabis legalization proposals, which both ultimately stalled.

COSHOCTON, Ohio, Dec. 22, 2021 /PRNewswire/ - PRESS RELEASE - Ascend Wellness Holdings, Inc., a multi-state, vertically integrated cannabis operator focused on bettering lives through cannabis, announced the closing of the company's definitive agreement to acquire Ohio Cannabis Clinic, LLC, d/b/a Ohio Cannabis Company and its licensed medical marijuana retail dispensary in Coshocton, Ohio. The announcement represents AWH's second dispensary in the state.

Located at 23024 Co Rd 621 Suite 1, the dispensary will benefit from its position close to all major thoroughfares and it is less than 90 minutes from all major cities including Columbus, Cincinnati and Cleveland. The dispensary will offer patients access to a wide selection of high-quality products across flower, pre-rolls, vapes, edibles and topicals.

"Ohio is a key focus of expansion for our Ascend brand given its rapidly-maturing market and near-term potential for adult-use," said Abner Kurtin, CEO of AWH. "We are thrilled to officially add a second Ascend location to our Ohio retail portfolio and look forward to continued growth in the state as we further secure our position in the most attractive U.S. cannabis markets."

There are currently 56 medical-use dispensaries in Ohio serving the state's more than 186,590 registered medical cannabis patients. Coshocton is a key addition to AWH's portfolio, adding brand awareness and reach while increasing patient access to cannabis as it looks to continue its expansion throughout Ohio.

As previously announced, AWH completed the acquisition of BCCO, LLC, which operates a medical dispensary in Carroll, Ohio, currently operating under the Ohio Provisions retail brand and announced the definitive agreement to acquire OCC. The company plans to migrate both the Ohio Provisions and the Ohio Cannabis Company brands over to the Ascend brand. AWH is vertically operated in all of the states in which it operates, including Ohio; AWH owns a cultivation facility in Monroe, OH. The company also previously entered into an option agreement with Marichron Pharma, LLC to acquire their processing facility in Monroe, Ohio, pending regulatory approval.

MIAMI, Dec. 23, 2021 (GLOBE NEWSWIRE) -- Ayr Wellness, a vertically integrated U.S. multi-state cannabis operator (MSO), today announced the opening of its newest dispensary in Eustis, Fla.

The dispensary will occupy over 3,000 square feet of prime retail space in the idyllic lakeside city of Eustis, just south of The Villages – a vibrant, 55+ community widely touted as America’s most popular retirement community. The store is the first Florida dispensary to have been fully designed and built by the Ayr team and incorporates design elements inspired by the company’s upcoming Boston-area flagship dispensaries in Back Bay and Watertown.

In February 2021, Ayr purchased Florida-based Liberty Health Sciences, which included 31 dispensaries across the state. Since then, 12 additional locations have opened – bringing the total number of dispensaries to 43. With over 650,000 enrolled patients, Florida’s cannabis market ranks third in the nation by total cannabis sales and generated over $1.2 billion in medical cannabis revenue in 2020. BDSA forecasts Florida’s cannabis market will generate $2.6 billion in sales per annum by 2026.

Jon Sandelman, founder, chairman and CEO of Ayr Wellness, said, “With 43 stores now open in Florida and another 30 locations under lease, we continue to expand our presence with our latest opening in Eustis. The Eustis store is notable both for its prime location, and for being Ayr’s first Florida store to incorporate our customer-centric design philosophies. The retail experience highlights our improved product selection, curated to meet consumer needs across every product category, and is designed to foster meaningful relationships with every customer and community member who comes through our doors."

DENVER, Colo. - December 22, 2021 - PRESS RELEASE - The Colorado Marijuana Enforcement Division (MED) released licensee demographic data for December 2021. The Division is committed to reporting information that allows the state and members of the public to understand the diversity landscape of Colorado’s Regulated Marijuana industry and measure progress on statewide social equity-related initiatives. Based on this data, minorities comprise 16.6% of owner licensees, an increase from the June 2021 baseline number of 15.2%. The following tables provide additional insights into the demographics of Colorado’s commercial marijuana industry.

Regulated Marijuana License Demographic Information - Dec. 1, 2021

MED’s Wildly Important Goal (WIG) FY 21-22: Promote equity, diversity, and inclusion in the marijuana industry, measured by an increase in minority-ownership of marijuana businesses from 15.2% to 16.8% by June 30, 2022.

As of Dec. 1, 2021, there are 46 approved Social Equity licensees (9 issued in November).

Dec. 1, 2021 Race/Ethnicity Data:

Overall Individual License Data

Another dynamic year in the cannabis industry is coming to a close, and there’s certainly no shortage of themes and narratives and characters to look back on for a sense of all that’s happened. Here, the CBT editors provide some thoughts on their favorite stories of 2021. 

North Carolina’s Compassionate Care Act, a medical cannabis legalization bill that stalled during this year’s legislative session, will likely resurface at the Statehouse next year, according to a Spectrum News 1 report.

The legislation, which is sponsored by Democratic State Sen. Paul Lowe and backed by Republican Sens. Bill Rabon and Michael Lee, would create a regulatory framework to allow doctors to recommend medical cannabis to patients with conditions including cancer, HIV/AIDS, post-traumatic stress disorder (PTSD), epilepsy, Crohn’s disease and sickle cell anemia.

Any patients in hospice care would also be eligible to access medical cannabis under the proposal, Spectrum News 1 reported.

The Compassionate Care Act would establish an advisory committee under the North Carolina Department of Health and Human Services, as well as a new commission, to oversee the state’s medical cannabis industry, according to the news outlet.

The new commission would then be charged with awarding 10 licenses to vertically integrated medical cannabis businesses, which could open up to four dispensaries each, Spectrum News 1 reported. The Compassionate Care Act would require each licensee to open at least one retail outlet in a Tier 1 county, the poorest counties in the state.

TALLAHASSEE, Fla., Dec. 21, 2021 /PRNewswire/ - PRESS RELEASE - Trulieve Cannabis Corp., a cannabis company in the United States, has opened its eighth medical cannabis dispensary in the Tampa area. The Tampa-Fairgrounds Trulieve, located at 7702 E. Hillsborough Avenue near the intersection of I-4 and I-75, begins serving patients at 9 a.m. on Tuesday, Dec. 21.

There will be deals and specials throughout opening day, including a 25% discount for all registered patients at the Tampa-Fairgrounds location. Grand opening festivities will include St. Petersburg-based Craft Tee custom t-shirt printing, music, and numerous partner giveaways. As always, all first-time guests are eligible for a 50% new customer discount at any Florida-based location. Trulieve also offers statewide home delivery, convenient online ordering, and in-store pickup.

Statewide on Tuesday, Dec. 21, Trulieve will continue its 12 Days of Cannabis promotion with the launch of the TruChocolate Dark Chocolate Cranberry and special one-day deals on brand partner, Bhang's dark and milk chocolate edibles. 

As the state's leading medical cannabis provider, Trulieve's retail employees are trained to provide personalized patient care and support individuals at every stage of their cannabis journey. Trulieve dispensaries throughout Florida offer on-site consultations to help patients obtain appropriate medical products and dosages to ensure optimal cannabis experiences.

"Trulieve is excited to expand access to medical cannabis in Tampa and to continue building strong relationships in the community," said Kim Rivers, CEO of Trulieve. "Our company is driven by our commitment to providing tailored, high-quality patient care to as many patients as possible."

LAS VEGAS, NV / ACCESSWIRE / December 20, 2021 / PRESS RELEASE / Planet 13 Holdings Inc. and Next Green Wave Holdings Inc. have announced that they have entered into a definitive arrangement agreement (the "Agreement") pursuant to which Planet 13 will acquire all of the issued and outstanding common shares (the "NGW Shares") of NGW, by way of a court approved plan of arrangement, for total consideration of approximately C$91 million (the "Transaction").

Proposed Transaction

Under the terms of the Agreement and based on pricing as of Dec. 17, 2021, shareholders of Next Green Wave ("NGW Shareholders") will receive 0.1081 of a common share of Planet 13 (the "Exchange Ratio") subject to calculations as described below, and $0.0001 in cash, for each NGW Share held. Based on Planet 13's 10-day volume weighted average price ("VWAP") and the Exchange Ratio as at Dec. 17, 2021, the implied deal price per NGW Share is C$0.465, representing a premium of approximately 52% to the closing price and 44% to the 10-day VWAP of NGW Shares on the Canadian Securities Exchange (the "CSE") as of Dec. 17, 2021. The Exchange Ratio is subject to adjustment as follows:

After giving effect to the Transaction, and based on pricing as of Dec. 17, 2021, NGW Shareholders will hold approximately 9.2% ownership in the pro-forma company (on a fully-diluted basis).

Transaction Rationale

DENVER, Dec. 21, 2021 /CNW/ - PRESS RELEASE - Schwazze has announced that it has closed the acquisition of the assets of Smoking Gun, LLC and Smoking Gun Land Company, LLC. Total consideration for the acquisition was $4 million in cash and 100,000 shares of Schwazze common stock upon closing.

The Smoking Gun dispensary and assets are located on a prime retail corner on Colorado Blvd. in Glendale, Colo., in the center of the greater Denver metro area. This acquisition is part of the company's continuing retail expansion plan in Colorado, and including the recently announced planned acquisitions in New Mexico (December 3, 2021), brings the total number of dispensaries to 32. 

Since April 2020, Schwazze acquired or announced the planned acquisition of 32 cannabis dispensaries, including the ten R. Greenleaf New Mexico dispensaries. In 2021, the company also acquired or announced the planned acquisition of seven cultivation facilities, three in Colorado - SCG Holding LLC, Brow 2 LLC and Star Buds - and four licensed in New Mexico. The New Mexico acquisition will also add a manufacturing asset, Elemental Kitchen & Laboratories, LLC, to the company's manufacturing plant, Purplebee's in Colorado. In May 2021, Schwazze announced its BioSciences division and in August 2021 it commenced home delivery services in Colorado.

VANCOUVER,Wash., Dec. 22, 2021 – PRESS RELEASE – The Hawthorne Gardening Company, a whollyowned subsidiary of The Scotts Miracle-Gro Company, has announced the securingof multiple patents related to the design and functionality of the Gavita CT1930e LED light.

TheGavita CT 1930e includes innovative state-of-the-art technology that is coveredby various U.S. and international design and utility patents and patentapplications, positioning the product’s optics, design and unique constructionamong industry leaders. The novel technology package of the Gavita CT 1930ebrings unique benefits to growers of all sizes and a new level of performancefor LED fixtures.

“The issuance of these patents is a testament to the revolutionary design andperformance of the Gavita CT 1930e,” said Chris Hagedorn, president, HawthorneGardening Company. “Beyond providing cultivators with a highly energy efficientLED with proven growing power, this further demonstrates Hawthorne’s commitmentto leverage our R&D, technical services and distribution capabilities tohelp growers achieve short- and long-term success.”

TheGavita CT 1930e was introduced in 2020 and is among Hawthorne’s—as well asScottsMiracle-Gro’s—most successful product launches ever. It is the first andonly LED fixture that is a direct 1:1 replacement for HPS fixtures.Compatibility with wiring and electrical requirements for most indoor growingenvironments means this compact toplight can dramatically limit the cost anddowntime required to convert facilities of every size. The CT 1930e alsodelivers more uniform, full-spectrum light at up to 20% energy savings thansingle-ended HPS fixtures (based on average wattage of each fixture). The CT1930e is Design Light Consortium (DLC) certified and can qualify for additionalsavings through local energy rebates (region dependent).

Also,patent-pending controller technology embedded within each Gavita CT 1930eenables control of up to 2,000 fixtures per EL Series Master Control channeland helps maintain unwavering output from light to light. These productinnovations seamlessly combine together, and with other Hawthorne offerings, todeliver an unrivaled high-performance technology solution for high-performanceenvironments. For more information on the Gavita CT 1930e and other Hawthornesolutions, visit https://www.hawthornegc.com/.

For a cannabis business operator who is trying to comply with strict state-by-state regulations in a federally illegal industry, the page speed of the company’s website may not be top of mind.

However, according to Dan Serard, director of business development for Cannabis Creative Group, a cannabis-specific marketing agency, page speed is one of the most important aspects of search engine optimization (SEO) and could help set your company apart from your competitors.

RELATED: Social Media and the Cannabis Industry: Tips and Lessons Learned

“When you think about it from a very high level, essentially, if your competitor’s website is loading faster than yours, then they’ll outrank you,” he tells Cannabis Business Times and Cannabis Dispensary. “Page speed is an important factor. … It really impacts your organic presence because if you have a faster page speed, then you have a better user experience and your content’s going to be up quicker, consumers are going to see your information quicker, and if it’s good for the user, then it’s good for the search engine.”

Here, Serard offers five tips to optimize page speed.