MjLink Cannabis Business News and Press

PRESS RELEASE - New Jersey Assembly and Senate committees passed legislation Jan. 7, addressing some technical issues and altering youth penalties that were passed in last month’s cannabis legalization and decriminalization bills, bringing New Jersey one step closer to legalizing cannabis in practice.

RELATED: New Jersey Lawmakers Propose Fines for Underage Cannabis Use in Adult-Use Legalization Bill

The bill seeks to impose fines and driver’s license suspension on cannabis possession and use for youth aged 18-21 and divert youth under 18 pre-booking.

ACLU-NJ Policy Director Sarah Fajardo said, “Cannabis arrests need to end, and they need to end now – we need legalization and decriminalization signed into law immediately. Today’s clean-up bill is part of that process, but we need to make sure that we do not lose sight of the ultimate goals of ending cannabis prohibition: to ensure that no one is ensnared unjustly in a criminal legal system marked by inequities, and that includes young people.

“Today’s clean-up bill reduces the range of fine amounts for youth aged 18-21 from the originally proposed amount in S21/A21, creates a diversionary program for youth under 18 for cannabis possession.

The state of Michigan has passed a law allowing veterinarians to consult with pet owners on using marijuana or hemp—including cannabidiol (CBD)—products for their animals.

Michigan Gov. Gretchen Whitmer signed H.B. 5085 into law in late December 2020.

According to a legislative analysis of the new law, veterinarians were previously unable to consult with pet owners on the use of marijuana or hemp. This law would open up their freedom to either recommend or advise against giving animals cannabis in various forms.

“The current restriction on veterinarians’ ability to discuss the benefits, as well as the risks, of treatments for pets derived from marijuana or industrial hemp results in incomplete and inadequate pet health care,” the legislative analysis says. “Allowing veterinarians to become a trusted source of information, in a marketplace with many competing and confusing claims, would ultimately benefit both pets’ health and their owners’ peace of mind.”

Michigan’s law currently bans selling CBD animal and pet feed products, including pet treats. However, residents in the state can add CBD products, like oils, to their pet’s food, according to the Michigan Department of Agriculture and Rural Development. The agency notes that “safe levels for animal consumption have not been established.”

A report released in February 2020 by Nielsen, a global data analytics company, and Headset, a data and analytics service provider for the legal cannabis industry, showed projected growth in the pet CBD market. The report found that hemp-based CBD pet products will represent 3-5% of all hemp CBD sales in the U.S. by 2025. Other findings from that report include:

Connecticut Gov. Ned Lamont renewed his push for adult-use legalization during his State of the State address Jan. 6, announcing that it is a priority for the new legislative session, according to a Patch.com report.

Connecticut’s 2021 legislative session opened Jan. 6, and Lamont, a Democrat, kicks off the session with increased majorities in the House and Senate, which could increase his chances of passing an adult-use legalization bill, Patch.com reported.

Lamont outlined legalization as a priority in his 2020 State of the State address, as well, and worked alongside the chairmen of key legislative committees last year to draft comprehensive legislation that would have legalized cannabis for adults 21 and older and supported social and criminal justice reform efforts.

RELATED: Connecticut Tries Again to Legalize Adult-Use Cannabis: Legalization Watch

While much of the 2020 legislative session was derailed in the wake of the COVID-19 pandemic, the 2021 session will be conducted both in-person and virtually, according to Patch.com.

Virginia Del. Steve Heretick (D-Portsmouth) has reintroduced a bill to legalize adult-use cannabis in the state, according to a local WAVY report.

Heretick has proposed legislation related to decriminalization and legalization in the past, and this year’s bill would legalize the cultivation, sale and consumption of cannabis in the state, WAVY reported.

The bill proposes licensing cultivation and retail businesses in an adult-use market, and would legalize home cultivation, according to the news outlet.

RELATED: Virginia Medical Cannabis Coalition Hopes State Builds on Existing Medical Program to Launch Adult-Use Market: Legalization Watch

Virginia Gov. Ralph Northam has announced his support for legalization, and signed a decriminalization bill into law last spring to lessen penalties for the possession of one ounce or less of cannabis.

TORONTO, Jan. 07, 2021 (GLOBE NEWSWIRE) -- PRESS RELEASE -- WeedMD Inc., a federally licensed producer and distributor of medical-grade cannabis, has announced it has reallocated all medical packaging, labelling and distribution activities from its Bowmanville, Ontario site to its Aylmer, Ontario facility which also houses the company’s extraction hub. These strategic steps are part of WeedMD's ongoing plan to maximize the utilization of its facilities, improve operational efficiencies and further align its cost structure while focusing on growth, following the successful integration of WeedMD and Starseed Holdings Inc.

RELATED: WeedMD's Bold Pivot in Canada's Evolving Market

These structural changes, completed in January 2021, now centralize production activities at WeedMD’s flagship London-area sites, which also includes the company’s cultivation center of excellence in Strathroy, Ontario. With the exiting of its Bowmanville facility, which served as WeedMD’s medical distribution hub, the company has offered relocation and severance packages, where applicable, to about 20 employees.

“Following an internal assessment of our entire organization, we took the decisive action to close our Bowmanville operations in order to optimize our production, reduce costs and accelerate our profitability goals,” said George Scorsis, executive chairman and interim CEO of WeedMD. “We are now centralizing and fully utilizing our cannabis production sites and our talent to their fullest potential. While our Aylmer site will focus on product distribution, processing and extraction activities, our Strathroy facility will continue to be the center of excellence for quality cultivation, biomass production and dried flower processing. For 2021, we are establishing enterprise-wide targets as part of our focus on maximizing margins and increasing revenues. We thank all our dedicated employees for their commitment to their craft as we continue to produce and supply cannabis Canada with our premier Color, Saturday and Starseed Medicinal products.”

WeedMD confirms that all Starseed Medicinal patient orders began shipping from the company’s Aylmer facility, commencing Jan. 4, 2021. Visit Starseed here for more information about its medical product offerings.

TORONTO and PORT WASHINGTON, N.Y., Jan. 05, 2021 (GLOBE NEWSWIRE) -- PRESS RELEASE -- North America’s first research and development facility dedicated to advancing cannabis cultivation techniques and systems has been completed by The Flowr Corporation and Hawthorne Canada Limited. Hawthorne is a subsidiary of the Hawthorne Gardening Company division of The Scotts Miracle-Gro Company. Scotts Miracle-Gro is a marketer of branded consumer lawn and garden products and indoor growing solutions. Flowr cultivates and sells premium cannabis to medical and adult-use markets in Canada, Europe and Australia.

Located on Flowr’s cultivation campus in Kelowna, British Columbia, Canada, the R&D Center includes laboratories, indoor grow suites and training areas in a single building. Flowr will test cultivation systems and techniques using Hawthorne’s lighting, fertilization and irrigation systems, growing mediums, and research protocols. In addition, Flowr intends to focus its own research on cannabis genetics and integrated growing systems in line with its goal of delivering premium quality cannabis products through highly efficient cultivation.

“We built Hawthorne to help cultivators of all sizes grow quality plants with high levels of efficiency and consistency. Completing the industry’s only dedicated R&D facility gives us a distinct advantage. We will leverage Flowr’s cultivation expertise and our technical capabilities into real world testing and results that will make a difference to growers,” said Chris Hagedorn, SVP & General Manager of Hawthorne Gardening. “We are proud of this collaboration with Flowr, a leading international cannabis company, with extensive growing experience indoors, in greenhouses and at-scale outdoors. Flowr is also one of a few companies that have had experience growing diverse genetics in different countries. We believe this experience will benefit our companies and the growers we serve.”

“The completion of the R&D Center brings our work with Hawthorne fully to life and will help keep both companies on the leading edge of cannabis cultivation for years to come,” commented Lance Emanuel, President and Interim Chief Executive Officer of Flowr. “Operationalizing the R&D Center is a major accomplishment for our organization and strengthens our competitive advantage in cultivation. We believe the long-term success of Flowr will be rooted in our ability to maximize the cannabinoid and terpene expression of genetics without sacrificing yield. The work we will do at the R&D Center will help us build upon the success we’ve had producing high quality, premium cannabis like our award-winning, flagship-strain BC Pink Kush beloved by budtenders and consumers throughout Canada. Leveraging our work at the R&D Center will be imperative to our eventual entry into the United States once federally permissible by law.”

The R&D Center is the centerpiece of a strategic R&D partnership formed by Flowr and Hawthorne in March 2018. It brings two of the world’s leading experts together to be at the forefront of cannabis cultivation. The operations will be led by Dr. Deron Caplan, the first person in North America to earn a PhD focused on cannabis cultivation and production. Caplan was awarded his doctorate by the University of Guelph in August 2018 and is Flowr’s Director of Research and Development. The R&D Center will be staffed by Flowr’s scientists, five of whom have PhDs in various plant biology, plant genetics and plant biochemistry disciplines. Hawthorne R&D will lead the research design and methodology.

TORONTO, Jan. 06, 2021 (GLOBE NEWSWIRE) -- PRESS RELEASE -- MJardin Group, Inc, a licensed cannabis producer, has announced the completion of a major supply agreement with the British Columbia Liquor Distribution Branch (BCLDB) to supply the provincial wholesaler with premium cannabis products in two formats: 3.5 grams whole flower and 5 x .5 gram pre-rolls.

MJardin is entering the BC market with its new flagship brand, Flint & Embers. The Flint & Embers brand is recognized for its high-quality cannabis varieties, and has received interest from both legal aged consumers as well as Cannabis retailers across Canada. Flint & Embers remains on schedule to be available for purchase in Alberta and Ontario in Q1 of 2021.

Flint & Embers products are non-irradiated and crafted without the use of harmful sprays. The product is slow cured and delicately trimmed, producing high quality whole flower and whole flower products.

On Dec. 8, 2020, the company launched a multi-channel digital marketing campaign to attract traffic to the Flint & Embers website, a series of landing pages that provides information about the Flint & Embers brand and allows consumers in Canada to learn more about Flint & Embers strains. The company intends to scale up advertising and communications initiatives for retailers following its distribution launch in British Columbia.

“Today's announcement with the BCLDB further demonstrates that our experience growing cannabis for over a decade and our subsequent data-driven value proposition is in touch with industry demands,” commented Pat Witcher, chief executive officer of MJardin. “It's exciting to be a new supply partner with the BCLDB for the recreational cannabis market and it truly speaks to our focus on creating a brand and producing products that resonate with Canadian consumers. We look forward to introducing our brand and our family of products to customers across British Columbia.”

New Jersey lawmakers have proposed fines for underage cannabis use in a new version of an adult-use legalization bill in an attempt to meet the demands of Gov. Phil Murphy, who refused to sign an earlier version of the bill unless such penalties were added, according to an NJ.com report.

RELATED: Adult-Use Cannabis Legalization Bill Delayed in New Jersey

The New Jersey Legislature gave final approval Dec. 17 on legislation to regulate the commercial production and sale of adult-use cannabis, sending the bill to Murphy for his signature, but the governor’s office sent a proposed change to lawmakers last week that would implement fines for those younger than 21 who are caught with cannabis.

The new version of the bill, A.5211, imposes a fine of at least $250 for those ages 18 to 20 who possess up to 6 ounces of cannabis, NJ.com reported, and a fine of $500 or more for those who possess more than 6 ounces, which is the legal limit under New Jersey’s adult-use cannabis law.

Those under the age of 18 would not be subject to the fines, according to the news outlet, but could be penalized with juvenile delinquency dispositions, such as community service, if charged with cannabis possession.

New York Gov. Andrew Cuomo is again calling for cannabis legalization this year, with plans to announce his proposal Jan. 6 as part of his upcoming State of the State agenda, according to the Independent Tribune.

This is Cuomo’s third attempt in three years to legalize adult-use cannabis in the state, the news outlet reported. Last year, Cuomo included a legalization proposal in his state budget, but the plan was ultimately cut in the wake of the COVID-19 pandemic.

Cuomo’s latest proposal calls for the creation of an Office of Cannabis Management to oversee the medical and adult-use cannabis programs in the state, according to the Independent Tribune, and it would offer licensing opportunities for applicants in communities that have been disproportionately affected by the War on Drugs.

Some lawmakers have criticized the fact that Cuomo’s proposal does not set aside funds to specifically support communities that have suffered from disproportionate cannabis arrests, the news outlet reported. However, the governor’s plan does set aside tax revenue in a fund that is earmarked for encouraging minorities to participate in the industry and public health campaigns, among other efforts, according to the Independent Tribune.

Minnesota House Majority Leader Ryan Winkler is again renewing his push to legalize adult-use cannabis in the state, announcing plans to reintroduce a legalization bill this year, according to a WCCO report.

Winkler’s legislation will not only establish a regulated cannabis marketplace in the state, but will also address criminal justice issues, the news outlet reported.

Ahead of last year’s legislative session, Minnesota lawmakers held a series of discussions across the state to gather public input on legalization, and Winkler introduced a legalization bill last spring that incorporated feedback generated from those discussions.

Winkler told WCCO that he sees “Senate leadership as being the number one obstacle,” but said that if lawmakers agreed to place an adult-use legalization initiative on Minnesota’s 2022 ballot, “it would pass overwhelmingly.”

Minnesota’s legislative session kicked off Jan. 5.

A years-long dispute over a cannabis cultivation license is headed to the Illinois Supreme Court as Curative Health Cultivation LLC and Medponics Illinois LLC battle over a license to grow cannabis for the state’s medical and adult-use markets, according to an NBC Chicago report.

Curative, which is based in Aurora, Ill., and owned by multistate cannabis operator Columbia Care, won the cultivation license in 2015, lost it following a dispute in a lower court and ultimately won it back on appeal, NBC Chicago reported.

Medponics wants to establish operations in Zion, Ill., and has been backed by the city in its bid for the license, according to the news outlet.

The license could potentially be worth $100 million, NBC Chicago reported, and the arguments in the case focus on the vetting process used to issue the initial cultivation licenses in 2015.

Medponics has argued that although Curative received the highest score on its application, it should have been disqualified because its operations would be too close to a residential area, according to NBC Chicago.

Illinois Gov. J.B. Pritzker announced Dec. 31 that he would expunge nearly half a million cannabis records and issue pardons for thousands more low-level cannabis convictions, according to a Chicago Sun-Times report.

The Cannabis Regulation and Tax Act, which passed in 2019 to legalize adult-use cannabis in Illinois, mandated that 47,000 cannabis-related arrest records between 2013 and 2019 be expunged by Jan. 1, the news outlet reported.

Pritzker’s New Year’s Eve announcement pardoned 9,129 low-level cannabis conviction records and expunged 492,192 cannabis arrest records, the Chicago Sun-Times reported.

Alabama Sen. Tim Melson (R-Florence) plans to reintroduce a medical cannabis legalization bill this year, according to an Alabama Public Radio report.

Medical cannabis legislation passed the Alabama Senate during the 2020 session, but failed to clear the House.

Melson’s bill would create a new board, the Alabama Medical Cannabis Commission, to license and regulate the industry, Alabama Public Radio reported.

Currently, only industrial hemp is legal in the state.

Missouri Rep. Shamed Dogan has filed legislation that would place an adult-use cannabis legalization measure on the state’s 2022 ballot, according to the St. Louis Post-Dispatch.

The measure, House Joint Resolution 30, is a constitutional amendment. It would leave Missouri’s medical cannabis program intact, but would repeal the text of the 2018 constitutional amendment that legalized medical cannabis, which would ultimately scrap the state’s controversial licensing process and limited license structure, the St. Louis Post-Dispatch reported.

Instead, Dogan’s proposal would set up a cannabis licensing process that is similar to licensing any other business in the state, according to the news outlet.

The measure also directs the state to release anyone incarcerated for “non-violent, marijuana only offenses that are no longer illegal in the state of Missouri,” the St. Louis Post-Dispatch reported, as well as to stop monitoring those on probation or parole for those offenses.

In addition, the proposal would require Missouri courts to expunge civil and criminal records related to “all non-violent, marijuana-only offenses that are no longer illegal” within 60 days of the ballot measure’s passage, according to the St. Louis Post-Dispatch.

Florida Sen. Jeff Brandes (R-St. Petersburg) has introduced legislation to reduce doctor visits for the state’s registered medical cannabis patients, according to a BayNews9.com report.

The bill, S.B. 214, would reduce required doctor visits from twice a year to once a year, the news outlet reported, and disabled veterans would only need to see a state-certified medical cannabis physician once every other year.

The legislation would also increase the maximum supply of cannabis that doctors can recommend from seven months to 350 days, BayNews9.com reported.

Rhode Island has received 45 applications for six new medical cannabis dispensary licenses, according to an AP News report.

If all applicants meet state requirements for a license, six will randomly be selected in a lottery to operate retail locations in different regions across the state, the news outlet reported.

Officials with the Rhode Island Department of Business Regulation have not yet set a date for the lottery, according to AP News.

RELATED: Rhode Island Opens Application for New Medical Cannabis Dispensary Licenses

To qualify for a license, applicants had to submit detailed financial information, proof of a physical retail site and a $10,000 application fee, the news outlet reported.

CHICAGO--(BUSINESS WIRE)--PRESS RELEASE--Cresco Labs, one of the largest vertically integrated, multistate cannabis operators in the United States, has published the first annual report for its SEED (Social Equity and Educational Development) initiative. The report highlights the company’s many achievements over the past year to help create a more diverse and inclusive cannabis industry through SEED’s restorative justice initiatives, community business incubators, and educational and workforce development programming. The 2019-2020 SEED Annual Report is available online at crescolabs.com/seed.

“We are proud to have launched the cannabis industry’s first comprehensive social justice and social equity initiative and to report the significant strides the SEED program has made towards the more equitable inclusion of Black and Brown people in cannabis,” said Charlie Bachtell, CEO and co-founder of Cresco Labs. “As we reflect on SEED’s first year successes, we recognize that this is just the beginning of a long road ahead and a tremendous amount of work is still to be done. Our goal is to provide the time, know-how and resources to elevate more voices and foster economic opportunities for people from communities disproportionately impacted by prior drug laws. The ability of this industry to reach its maximum potential will be governed by its ability to address the social responsibility components tied to this subject matter. Our SEED team is made up of incredibly talented, hard-working individuals who are building a culture where all Cresco Labs employees are inspired to improve inclusiveness within the cannabis industry. Our SEED initiative supports our vision to be the most important company in cannabis and is helping to build the most responsible and respectable industry possible. Together, we are firmly committed to continuing the progress we’ve achieved this inaugural year into the future.”

The SEED Annual Report outlines the mission of SEED, describes its goals and initiatives, and details the efforts dedicated to the program’s success. Highlights of the 2019/2020 program include:

Cresco Labs’ SEED team was the recipient of the 2020 Bill Leslie Visionary Award from Cabrini Green Legal Aid, a nonprofit established in 1973 to serve legal needs arising from the lack of opportunity, criminalization of poverty, and racial inequity experienced within the Cabrini Green community in Chicago, Illinois. This recognition reinforces the SEED initiative’s effort to build community relationships and do its part to be restorative and inclusive.

In May 2019, Cresco Labs created SEED to address the absence of people, businesses and communities disproportionately impacted by the War on Drugs in the cannabis industry. Its mission is to develop tangible pathways into the cannabis industry for communities impacted by the War on Drugs through the three pillars of SEED: Restorative Justice, Community Business Incubator, and Education & Workforce Development. SEED’s restorative justice programming includes expungement events, lobbying to change the nation’s drug laws, and working to ensure that no person remains in prison for a cannabis conviction. Established in November 2019, Cresco’s Community Business Incubator provides qualifying social equity applicants with the resources, knowledge and guidance needed to successfully apply for adult use dispensary licenses awarded by the Illinois Department of Financial and Professional Regulation. SEED develops educational cannabis programming tailored to communities disproportionately impacted by the War on Drugs, as well as builds collaborative relationships with colleges and universities to develop curriculum, teach classes and host workshops to educate and prepare students for careers in cannabis.

A bill to implement adult-use cannabis legalization in New Jersey has been delayed after Gov. Phil Murphy requested a change that would levy a fine for underage cannabis possession before he will sign the legislation into law, according to the Asbury Park Press.

New Jersey voters approved an adult-use legalization ballot initiative in the November election, and although the measure was supposed to take effect Jan. 1, negotiations continue on legislation to implement the program.

The New Jersey Legislature gave final approval Dec. 17 on legislation to regulate the commercial production and sale of adult-use cannabis, sending the bill to Murphy for his signature.

Murphy’s office sent a proposed change to lawmakers last week that would implement a $250 fine on those younger than 21 who are caught with 1 ounce or less of cannabis, and a $500 fine for those caught with between 1 and 6 ounces, the Asbury Park Press reported.

While the legislation remains in limbo, New Jersey Attorney General Gurbir Grewal has directed state prosecutors to halt possession charges for small amounts of cannabis.

STRATHROY, Ontario, Dec. 30, 2020 (GLOBE NEWSWIRE) -- PRESS RELEASE -- Eve & Co. Incorporated has announced that its wholly-owned subsidiary Natural MedCo Ltd has entered into a CAD$1M financing loan with a private consortium of lenders.

The CAD$1M financing has a two-year term and is to be received in two equal tranches of CAD$500,000. The first CAD$500,000 tranche has been received – net of issuance costs of approximately CAD$29,000 – and bears interest – payable monthly – at 15% per annum for the first year and 11% per annum for the second year. Monthly repayments of principal and interest can only be made during the second year of the term. The principal outstanding will be repaid to the Lender at the end of the two-year term.

The second CAD$500,000 tranche will be received from the lender upon five days written request from NMC. It will bear interest – payable monthly – at 15% per annum for the first year and 11% per annum for the second year. Monthly repayments of principal and interest can only be made during the second year of the term. The principal outstanding will be repaid to the Lender at the end of the two-year term. The second CAD$500,000 tranche will only be available for the first year and a facility fee of 0.5% per annum on this second tranche will accrue – and be paid – monthly to the lender. The loan is secured by the assets of the company and NMC and guarantees and is expected to be used for general corporate purposes.

TORONTO, Jan. 04, 2021 (GLOBE NEWSWIRE) -- PRESS RELEASE -- WeedMD Inc., a federally-licensed producer and distributor of medical-grade cannabis, has announced that its board of directors has appointed executive chairman, George Scorsis, as interim Chief Executive Officer, effective immediately. This appointment follows Angelo Tsebelis’s decision to step down from his CEO and director roles, with mutual agreement from the Board, following the successful year-long integration of WeedMD and Starseed Holdings Inc. Tsebelis has agreed to take an advisory role to help the company through this period of transition.

The company is now leading a comprehensive search process to select a permanent CEO. Concurrently, WeedMD announced today that Jason Alexander, the company’s Chief Legal Officer, has been appointed as a director and has joined the Board pursuant to the terms of the company’s nomination rights and voting agreement dated Dec. 20, 2019.

RELATED: WeedMD's Bold Pivot in Canada's Evolving Market

“On behalf of the Board, we thank Angelo for his leadership, focus and guidance during a complex period as we combined two companies and navigated a dynamic landscape that resulted from the worldwide pandemic last year,” said Scorsis. “Angelo was integral in merging our businesses, optimizing our operations, commercializing our sales and distribution initiatives and bringing a renewed focus on brand awareness. During his tenure, WeedMD achieved a two-fold sales increase in the first nine months of 2020, compared to the full year 2019. We appreciate his contributions to our growth, his counsel during our transition and we wish him well on his future endeavours.”

Scorsis added, “I am also pleased to welcome Jason Alexander as the newest director to our Board. Jason was instrumental in working alongside Angelo and the leadership team to fully-integrate the company into a position of strength over the past year. Moving forward, WeedMD is now anchored in the best cultivation, commercial and product frameworks in Canada as we work to accelerate our profitability goals. Together we are kicking off 2021 with a focused approach on increasing market share and commercial growth of our Color Cannabis and Saturday brands, while expanding our medical footprint through our Starseed portfolio. This includes an aggressive plan to transition WeedMD into a consumer-facing model of excellence. Ultimately becoming hyper-focused on driving meaningful results, while optimizing the organization for future success to deliver shareholder value.”