MjLink Cannabis Business News and Press

MIAMI, Florida, November 22, 2021 - PRESS RELEASE - Ayr Wellness Inc. (Ayr), a vertically-integrated cannabis multistate operator, has agreed to acquire Gentle Ventures, LLC (Dispensary 33) and certain of its affiliates that collectively own and operate two licensed retail dispensaries in Chicago, Ill.

"In any market where we operate, our goal is to develop scale and meaningful presence," said Jonathan Sandelman, Ayr founder, chairman and CEO. "Today's announcement builds on our existing foundation in Illinois, which we began building just a few months ago with the proposed acquisition of two stores in Quincy, Illinois. Since then, we have sought opportunities to deepen our presence, beginning with our social equity partner, Land of Lincoln, which was selected for a dispensary license in Bloomington, and today's proposed acquisition of Dispensary 33 in Chicago, which, when completed, will give us a presence in two of Chicago's most desirable neighborhoods. We will continue to seek opportunities to expand in Illinois."

Dispensary 33 operates two locations in Chicago, one on the lively N Clark Street in Andersonville, and the other on W Randolph Street in West Loop, a former industrial meatpacking district that has become one of Chicago's most popular neighborhoods for restaurants, nightlife and hospitality.

The Montana Department of Revenue (DOR) has eliminated a rule in the state’s cannabis regulations that would have prohibited licensed medical and adult-use cannabis operators from selling hemp and hemp-derived products.

As originally written, House Bill 701, which implements the state’s voter-approved adult-use cannabis program, included a provision that prohibited licensees in the medical and adult-use markets from selling hemp and hemp-derived products, including CBD products. The original law also barred licensees from selling other brands’ CBD products, meaning those products would likely have been sold at gas stations and other non-specialty retailers in the state.

RELATED: Montana’s Adult-Use Cannabis Law Prohibits Licensees from Growing and Selling Hemp

The state held a public hearing Nov. 16 on the first rules package of H.B. 701 and the public comment period on the regulations remains open until Nov. 29.

In addition, representatives from DOR’s Cannabis Control Division (CCD) met with the Economic Interim Affairs Committee Nov. 17 to seek clarity on the rules pertaining to hemp and CBD products.

Green Dragon, a multistate cannabis operator, opened its 16th dispensary location last week in Fort Collins, Colo., through purchasing the existing Choice Organic's license.

The Fort Collins-based dispensary will offer medical and adult-use products and include brands like Fuel, Le Remedie, Magnus, Sugar High and Tropix, Cannabis Dispensary previously reported.

Alex Levine, Green Dragon chief development officer, told Cannabis Business Times and Cannabis Dispensary that the company has wanted to expand to the northern Colorado area for a while, but an opportunity didn't present itself until now.

Below, Cannabis Business Times and Cannabis Dispensary spoke with Levine about the company's expansion and the process of doing so through acquiring an existing license versus winning one through the application process.

Andriana Ruscitto: Can you talk a little bit about Green Dragon's recent expansion and the opening of its 16th retail location in Fort Collins? What are some of the different features the dispensary will have?

Alex Levine: So, we're super excited to be in Fort Collins. It's a market that we've been looking at for quite some time, [and] we're very happy to be a part of it finally. Basically, this store is recreational, and it also has medical. We're being super competitive with our pricing. We're [also doing] a lot of exciting design changes [to that] location. So, it's going to be a pretty cool-looking dispensary soon. We're kind of in the planning stages of that, but we're very excited for what that store [will] look like.

San Diego, CA – November 16, 2021 – PRESS RELEASE – PHENOM is a new vertical grow lighting system with integrated sensor and imaging technologies building on the success of the innovative A3 and ZENITH luminaires. PHENOM integrates plant health sensors and a canopy imaging platform with the patented Agnetix liquid cooled hydronics system. Vertical farms can now increase density, height and energy efficiency by counteracting the environmental impacts caused by micro-climates and fixture waste heat pervasive in commercial grows featuring passively cooled lights.

PHENOM is designed for crops that require a Daily Light Integral (photosynthetic light measurement) for optimum growth ranging from 15-30 DLI, such as lettuce, cucumbers, tomatoes and strawberries, to much higher DLI crops such as cannabis, which requires over 40 DLI. PHENOM may also be used in combination with the Agnetix A3 or ZENITH luminaires from start through vegetative growth and flowering as a full facility cultivation platform operating at the lowest carbon footprint of any grower in the same class.

The industry benchmark efficiency of the Agnetix system can now deliver close-proximity 100% PAR light (photosynthetically active radiation) to multi-level grows with luminaire wattage of 375 and a PPE (photosynthetic photon efficacy) of up to 3.61µmol/J and precision dimming 100-1%. Agnetix patented hydronics cooling extracts up to 140 watts of waste heat from the room per fixture significantly reducing the amount of energy intensive HVAC required versus any other light source.

The Agnetix environmental, thermal-sensing and computer-vision platform allows the vertical farmer to interact via the user interface remotely from the safety and convenience of their computer or mobile device, continuously monitoring the conditions and plant performance at enterprise scale with speed and convenience.

Sensor and imaging technologies empower key stakeholders with direct visualization of plant size and quality:  

The Ohio Medical Marijuana Control Program (MMCP) has released an update on a product recall that was originally issued Oct. 13.

Regulators issued a mandatory product recall on products manufactured by Certified Cultivators, LLC, a licensed processor in the state. The products were distributed to dispensaries and then sold to patients without receiving the full suite of required testing, according to the MMCP’s recall notice.

The affected product, Certified Live Resin Southside Legend, was sold to patients starting Sept. 1 at the following dispensaries:

The MMCP advised patients who purchased the affected product to stop using it and to return it to the dispensary where it was purchased.

In a subsequent notice on Nov. 19, the MMCP indicated that the products have since been retested and have passed all testing for heavy metals, pesticides, residual solvents and mycotoxins. Therefore, regulators have determined that the products are safe for patients.

And just like that, a household Goliath is ready to muscle its way into the adult-use cannabis space.

Irwin Naturals Inc., a Los Angeles-based herbal supplement formulator that has operated a profitable brand since 1994, announced last month that the company intends to enter the U.S. and Canada adult-use markets through the wholly owned subsidiary name Irwin Naturals Cannabis.

Irwin Naturals’ growing portfolio of herbal products are available in more than 100,000 retail doors across North American, where nearly 100 million people know of the brand, according to a formal company survey with a sample size of 500 randomly selected adults.

“Consumers have trusted our high-quality nutraceutical products for over 27 years. We plan to move quickly in order to become the first national household brand to appear on the label of products containing THC,” Irwin Naturals Chairman and CEO Klee Irwin said in a press release.

In 2018, Irwin Naturals first leveraged its household name brand to expand into the cannabis space by launching hemp-based CBD products into the mass market. The publicly traded company currently offers more than 100 CBD products, ranging from soft gels to balms and oils, with varying formulas aimed to address mood and brain function, better sleep, sports performance and sexual health.

Irwin Naturals plans to enter the North American cannabis industry by licensing its brand name to third parties that manufacture products containing THC, according to the release. The company is planning the overall launch of Irwin Naturals Cannabis to the continental cannabis market in late 2021 or early 2022.

A pair of Pennsylvania senators has introduced legislation to allow medical cannabis patients to grow their own plants at home.

The Medical Marijuana Cultivation Bill, sponsored by Sen. Dan Laughlin (R-Erie) and Sen. Sharif Street (D-Philadelphia), would allow the state’s registered medical cannabis patients to grow a limited number of plants at home for personal use in an attempt to address patients’ cost and accessibility concerns, according to a WKBN report.

“Pennsylvania’s MMJ Advisory Board and the state Health Department have mounting data illustrating significant disparities in accessibility,” Laughlin said in a public statement. “Cost has likewise been a big burden for patients for quite some time.”

Patients must travel more than two hours to reach a dispensary in some cases, according to a press release announcing the bill. In addition, serious medical conditions, medical expenses, the lack of insurance coverage for medical cannabis and a reduced ability to work also make it difficult for some patients to afford medical cannabis sold at the state’s dispensaries.

“It is critical that policy meet people where they are, and by allowing medical marijuana patients to grow cannabis plants at home, we can help ease the cost and accessibility burdens for this important medicine,” Laughlin said in a public statement. “This legislation would go a long way towards helping everyday Pennsylvanians meet their health needs and ensuring everyone is treated equitably and fairly under Act 16.”

A recent change in governmental policy has the potential to transform both the international medical cannabis industry and a South American country well-poised to supply it.

In July, the government of Colombia enacted a new law that authorizes exports of dried cannabis flower as a finished commercial product for medical use, a move expected to further stimulate the country’s ability to supply the legal cannabis marketplace. Previously, the law had only allowed the export of extracts, but the new decree also enables the production of dried cannabis flower and related goods, such as oils, creams, textiles or food containing non-psychoactive cannabis.

Colombia legalized the production of medical cannabis in 2016, and has in recent years taken substantial steps to establish an infrastructure for producing, distributing and exporting cannabis seeds and derivatives. Now, the new directive that authorizes the most popular form of cannabis should take the country’s nascent medicinal cannabis industry to new heights.

As evidenced by its longstanding presence as the leading exporter of cut flowers to the U.S., Colombia has a highly developed agricultural ecosystem. With low-cost but highly skilled labor, Colombia should be a prime resource for any organization seeking to expand the production and sale of medicinal cannabis.

Plus, an average of 12 hours of sunlight year-round makes Colombia’s climate conducive to as many as four high-yield harvests annually.

Most recent business developments have been alliances of Colombian and foreign capital, with a prominent Canadian participation which accounts for about 60% of the cases. Examples include Avicanna, a Canadian biopharmaceutical company that focuses on the development and commercialization of cannabinoids exclusively for the medical cannabis, health, and wellness markets. The company sources its raw materials for food, cosmetic, medical, and pharmaceutical industries from its subsidiaries based in Santa Marta, Colombia. PharmaCielo, another Canadian company and the world’s largest licensed cannabis producer, selected Colombia as its base of operations because of its excellent climatic and economic conditions, including its industrial history in floriculture, as well as its clear legal framework for cannabis licensing. Another successful example is Khiron Life Sciences, which has its own plantations, a research center to produce medicines and cosmetics, and recently opened a clinic for medical cannabis treatments and therapies

OTTAWA, Canada, November 19, 2021 - PRESS RELEASE - HEXO Corp (HEXO) announced that Sebastien St-Louis has resigned from HEXO's board of directors, and the company has appointed HEXO president and CEO, Scott Cooper, in place of St-Louis, effective yesterday.

There’s a 60-vote rule in the U.S. Senate.

Simply put, if 60 of 100 members of the body are in favor of legislation, then no more debate is needed—any filibuster attempts are defeated, and the bill gets sent to the president’s desk for final consideration.

If the upper chamber of Congress was representative of majority opinion on cannabis, then there would be no more debate on public policy regarding the end of prohibition. Theoretically, 68 or 69 senators—depending on which poll is used—would be in favor of fully legalizing cannabis at the federal level.

In a November 2021 Gallup Poll, 68% of Americans said they support legalizing cannabis, while 69% expressed support in an April 2021 poll from Quinnipiac University.

Debate on Capitol Hill continues, nevertheless.

A political split on the issue is perhaps no more evident than in Ohio, where Democratic U.S. Sen. Sherrod Brown supports the federal decriminalization of cannabis, while Republican U.S. Sen. Rob Portman continues to have concerns about broadly legalizing the plant.

TORONTO, Nov. 18, 2021 /CNW/ - PRESS RELEASE - The Green Organic Dutchman Holdings Ltd., a producer of premium certified organically grown cannabis, has announced that further to its news release dated Nov. 1, 2021, it has completed the acquisition of all of the issued and outstanding shares of Galaxie Brands Corporation.

"This is an exciting day for both TGOD's and Galaxie's teams. As per our strategic plan, the completion of the transaction allows TGOD to accelerate domestic growth. With Galaxie's innovation and operating capabilities, scale and efficiencies, the combined entity will build stronger revenues and financial performance," said Sean Bovingdon, CEO and interim CFO of TGOD.

Following closing of the transaction, TGOD will diversify its brand portfolio with the addition of Galaxie's unique pre-rolls, vapes, solventless products and its  flagship brand, Cruuzy. TGOD will also benefit from improved regional distribution across Canada and gain further exposure to the valuable edible category through Galaxie's exclusive joint venture in Canada with a major edible brand in the United States. 

Galaxie's 26,000-square-foot Ontario production facility is fully licensed by Health Canada and operational with 2.0 production capabilities. The Galaxie facility is expected to provide TGOD with additional cultivation, value added processing, packaging, extraction and product development capabilities. Galaxie will become a wholly-owned subsidiary of TGOD and will remain the license holder for the Galaxie Facility. 

The transaction is expected to achieve cost synergies through combining activities in supply chain and distribution, research and product development, as well as cost reductions in sales, general and administrative activities, and general overhead. Galaxie's strategic U.S. connections and existing industry relationships are expected to accelerate TGOD's entry into the U.S. market, with the growing TGOD organic brand platform being positioned for future expansion across the border.

"I am proud of what we have built at Galaxie" said Angus Footman, Galaxie CEO and co-founder, and chairman of the company. "In a short period of time, we have successfully developed and launched over 45 innovative new SKUs across Canada. We admire TGOD's leadership in sustainability, organic and quality cannabis production and look forward to jointly developing new innovative products that reflect our shared commitments to serving our consumers and building a sustainable global cannabis company."

The following statement was issued by the CEOs of Akerna, Anacostia Organics, Bridge City Collective, Canopy Growth, Central Coast Agriculture, Columbia Care, Cresco Labs, Cronos Group, Curaleaf, Flower One, Flowhub, Forian, Holistic Industries, HOUSEPLANT, NuProject, PAX Labs, PharmaCann, Schwazze, TGIG and Wana Brands, which are members of the U.S. Cannabis Council:

“We are leaders in America's rapidly-growing regulated cannabis industry. With over 300,000 employees and $18 billion in revenue last year, our industry generates substantial local and state tax revenue and fuels economic growth. It is frankly unconscionable that countless Americans are in prison or struggling to overcome criminal records because they bought or sold the product at the very core of our business.

“Advocates for cannabis reform cheered when President Biden pledged on the campaign trail to decriminalize cannabis and grant a blanket pardon. 'Anyone who has a record should be let out of jail, their records expunged,' he pledged. We are now many months into the Biden presidency, and there has been no action on this front.

“Cannabis prohibition has negatively impacted millions of Americans -- Black Americans most severely of all. Ending cannabis prohibition and expunging records for non-violent offenses is vital to criminal justice reform and racial equity. What's more, over two-thirds of Americans support legalization, and 36 states have legalized medical and/or adult-use cannabis. Cannabis should be a signature issue for a president looking to unite the nation, strengthen the economy and address historic wrongs.

“As leaders in the cannabis industry, we urgently call on President Biden to meet this historic moment by issuing a blanket pardon for non-violent cannabis offenses. We stand ready to meet with the Administration and work together with Congress to advance a broad range of criminal justice and social equity initiatives as we bring a close to the cannabis prohibition era.”

The statement was signed by the following cannabis industry CEOs (alphabetical by last name):

The financing constraints that many cannabis operators face are a familiar story. Much revolves around impediments from lack of legalization at the federal level; however, other traditional drivers play a role as well, including industry and business life cycles. In recent months, the convergence of a number of factors, including increasing amount of capital providers, stronger credits and a low interest rate environment, has resulted in an emergence of debt financings and, in some cases, lower borrowing costs for operators.

Recent Cannabis Debt Financings

Over the last six to eight months, some larger multi-state operators have benefited from lower interest rates, achieving attractive financings with a sub-10% interest rate. For example, Green Thumb Industries announced a senior debt financing on April 30, 2021, where the company was able to refinance existing senior secured debt with a $217-million senior private placement at a 7.0% interest rate. Most recently, Ascend Wellness closed a $210 million Senior Secured Term Loan at 9.5% on August 30, 2021.

While these rates indicate an attractive progression in debt pricing and availability to the sector, they are not achievable for all operators due to various factors including credit size, potential collateral, credit quality, revenue concentration, profitability levels, capex requirements, among others. Borrowing costs have come down significantly, yet despite some recent exceptions, rates still range between 12-20%. The main factors influencing the rate cannabis companies can get are credit size and potential collateral.

Why have rates come down?

Many perceive that the U.S. is inching toward legalization, providing lenders comfort in business model as compared to previous years.

Eaze, a cannabis delivery service, is expanding to Detroit, Mich., through a partnership with Pleasantrees, a Michigan-based cannabis company.

Eaze now offers its delivery services in three of the 10 largest Michigan cities: Detroit, Grand Rapids and Ann Arbor—two cities the company expanded to earlier this year, according to the Detroit Free Press.

The recent expansion "allows customers to find their favorite, and try, new products from the comfort of home," Rogelio Choy, Eaze CEO, told the Detroit Free Press. "We believe delivery is going to be a huge part of the Michigan success story."

Choy told the news outlet that the last 18 months have shown how cannabis delivery services are a fast-growing part of the industry and are "here to stay."

"If we're going to be successful in Michigan, we have to be successful in Detroit," Choy said.

While there are other cannabis delivery services in Detroit like Latern and Breeze, Choy told Detroit Free Press that Eaze's low prices and deals are what sets it apart from the rest. 

Wisconsin lawmakers are making a bipartisan push for cannabis decriminalization.

Rep. Shae Sortwell (R-Gibson), Rep. Sylvia Ortiz-Valez (D-Milwaukee), Sen. Lena Taylor (D-Milwaukee) and Sen. Kathleen Bernier (R-Chippewa Falls) have introduced legislation to reduce the state’s existing penalties for cannabis possession, according to the Wisconsin Examiner.

Under current law, cannabis possession is punishable with a felony charge, a $1,000 fine and up to six months of jail time, the news outlet reported.

The new legislation would reduce the fine to a $100 civil forfeiture for the possession of 114 grams or less, and instances of possession involving 28 grams of cannabis or less would not count as a repeat offense, according to the Wisconsin Examiner.

Law enforcement has conducted an average of 15,485 arrests per year since 2010 for cannabis possession, the news outlet reported, and the proposed bill includes provisions that would streamline the booking process for law enforcement and courts to “save time, money, and resources.”

Medical cannabis sales in Arkansas have reached $447 million since the state’s first dispensary opened in May 2019, according to a KUAR report.

Arkansas’ retailers have sold 66,994 total pounds of medical cannabis since sales launched, the news outlet reported, generating just under $45 million in tax revenue for the state. Most of the tax revenue is earmarked for the University of Arkansas for Medical Sciences National Cancer Designation Trust Fund, according to KUAR.

Data from the Arkansas Department of Finance revealed that the state’s 37 operating dispensaries sold 3,527 pounds of medical cannabis in October.

Voters approved medical cannabis legalization in 2016 and there are currently 78,585 registered medical cannabis patients in the state, KUAR reported.

In a new twist on the interstate pressures of adjacent cannabis markets, the Connecticut attorney general is irked over what he sees as advertising encroachment over the state line. Massachusetts cannabis companies have purchased billboard space along highways that run through Connecticut; citing his state’s laws on the matter, Connecticut Attorney General William Tong wants the ads taken down.

Under the provisions of its new adult-use law, Connecticut allows cannabis businesses to advertise only when the target audience is made up of at least 90% adults 21 and older. On the freeway, that’s pretty much out of the question.

On top of that, Tong has asserted that these billboards may violate federal law by encourage interstate transport of cannabis products.

One business owner has no plans to accede.

“I believe that this is too far reaching of an insinuation that they have made against our company and other advertisers, against marketing firms and against the other folks who have also gotten those letters,” Erik Williams, chief operating officer of Canna Provisions in Holyoke, Mass., told WGGB. 

Connecticut has selected Forian Inc.’s BioTrack technology as its seed-to-sale tracking software as the state rolls out its adult-use cannabis program.

RELATED: Connecticut Officials Working to Finalize Seed-to-Sale Cannabis Analytic Tracking System for Adult-Use Sales Next Year

The state’s Department of Consumer Protection Drug Control Division will use the tracking system to monitor the movement of cannabis products in both the medical and adult-use markets, according to a Yahoo! Finance report.

“Connecticut has shown their desire to be at the forefront of cannabis by looking for best-in-class software solutions,” BioTrack Vice President Moe Afaneh told the news outlet. “We are very excited to work with the state to develop new technologies to support their cannabis-related initiatives.”

BioTrack’s software will track cannabis across the supply chain, from when it is planted as a seed to the point of sale in Connecticut’s dispensaries, the news outlet reported. The tracking system will also provide a real-time inventory of cannabis products that are available in the state to help prevent the diversion of products to the illicit market.

TORONTO, November 16, 2021 - PRESS RELEASE - TerrAscend Corp., a global cannabis company licensed for sales in Canada, the U.S. and the E.U., announced that its wholly-owned subsidiary has acquired a commercial property located at 273 East Memorial Blvd., Hagerstown, Md., (Hagerstown Facility), for a purchase price of approximately $2.8 million, plus certain costs and expenses from GB&J's LLC.

TerrAscend currently produces and sells dried flower and oil products for the Maryland wholesale medical cannabis market from its existing 22,000-square-foot cultivation and processing facility in Frederick, Md. The company has already received regulatory approval for the planned relocation of its cultivation operations to the 156,000-square-foot Hagerstown Facility and expects to relocate and commence operations in Q1 2022.

"With adult-use legislation currently under review by the state, scaling our Maryland cultivation and processing capabilities will allow us to support this important and underserved market," said Jason Wild, TerrAscend executive chairman. "Our investment will improve patient and future consumer access to quality cannabis products, including our Kind Tree, Ilera and Prism brands, while we continue to pursue potential vertical integration opportunities in the state."

BOCA RATON, Florida, November 17, 2021 — PRESS RELEASE — Jushi Holdings Inc. (Jushi), a vertically integrated, multi-state cannabis operator, announced that it has entered a definitive agreement to acquire NuLeaf, Inc., a Nevada-based vertically integrated operator, for total consideration of up to $62.5 million. 

In addition to a 27,000-square-foot cultivation facility in Sparks, Nev., and a 13,000 square-foot processing facility in Reno, Nev., NuLeaf operates two adult-use and medical retail dispensaries. Additionally, NuLeaf owns a third licensed retail dispensary located directly on Las Vegas Boulevard: the Las Vegas Strip Dispensary, which is expected to become operational early next year, subject to regulatory approval and other conditions.

Upon completion of the acquisition of NuLeaf, and the previously announced Apothecarium Nevada acquisition, Jushi will grow its retail presence to four dispensaries in the $1 billion Nevada cannabis market, three of which are located in the Las Vegas area. The company will also bolster its existing cultivation and processing capabilities in the state with the addition of NuLeaf's high-quality facilities, providing a strategic entry point into the Nevada wholesale market.

"We are thrilled to enter into an agreement to acquire NuLeaf, a vertically integrated operator with the potential to significantly increase our presence in the Nevada retail and wholesale markets," said Jim Cacioppo, Jushi founder, chairman and CEO. "NuLeaf boasts a well-established retail network with top-quality, design-forward dispensaries in coveted high-traffic destination locations. In addition, NuLeaf's cultivation and processing assets are strongly aligned with our strategic expansion strategy in Nevada. This acquisition is expected to generate significant top-line growth and be immediately accretive, as well as increase market share of Jushi's best-in-class brands and establish a leadership position in one of the largest cannabis markets in the U.S."

Click here for the full press release.