MjLink Cannabis Business News and Press

OAKLAND, CA and TORONTO, Jan. 4, 2021 /CNW/ - PRESS RELEASE - Harborside Inc., a California-focused, vertically-integrated cannabis enterprise, has announced that the company and Steve DeAngelo are separating, and the company is eliminating the role of Chairman Emeritus, effective Dec. 31, 2020.

A longtime activist and strong advocate for the cannabis reform movement, DeAngelo co-founded Harborside in 2006 as a non-profit medical cannabis dispensary. Harborside was granted one of the first six medical cannabis licenses in the United States and was one of the first in the nation to support comprehensive cannabis education for seniors, veterans and families with severely ill children.

Matt Hawkins, chairman of Harborside, said, "On behalf of the Board, I'd like to thank Steve for his service to Harborside and for his history of activism in furtherance of building the robust, legal cannabis industry that exists today."

DeAngelo added, "Harborside was founded on the principle of providing safe and affordable access to cannabis for those who require it. I'm proud of the immense work that has been completed to get us to where we are today and wish the very best for the company as it continues to grow. Moving forward, I will continue to focus on environmental, social and corporate governance (ESG) issues and opportunities in the legal cannabis industry."

DENVER, Colo. December 31, 2020 -- PRESS RELEASE -- Marijuana rules stemming from the General Assembly’s 2020 legislative session go into effect on Jan. 1, 2021 for all regulated marijuana businesses across Colorado, specifically expanding on the state’s Social Equity Program for cannabis businesses and eliminating residency requirements for employees. Additional new rules of note include enhanced sustainability options for licensees and availability of delivery permits for retail stores and transporters. Final rules were adopted by the State Licensing Authority on Oct. 9, 2020 after a summer and fall of extensive stakeholder engagement led by the Marijuana Enforcement Division (MED).

“There is no bigger MED priority than the success of the state’s Social Equity Program for cannabis businesses,” said Jim Burack, MED Director. “We are grateful to our stakeholders who have shown a continuous and sustained commitment to help us get this right.”

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

Legislation Implementation:

-HB20-1080 eliminating residency requirements for Employee Licensees; and

LOS ANGELES, December 28, 2020 – PRESS RELEASE – Viola, a producer and retailer of cannabis products, has announced the appointment of rapper, songwriter, actor, record producer and entrepreneur, Tip “T.I.” Harris, to the Viola team as the company's Social Justice and Reform Ambassador. Founded by NBA veteran Al Harrington, Viola is dedicated to producing ultra-premium products rooted in purpose with extensive social equity work done through its recently launched charity, Viola Cares. T.I. brings decades of community advocacy supporting Black and other minority communities in need into his new senior advisory role at Viola.

In this role, T.I. will direct the community impact strategy for Viola. Pioneering initiatives that make the cannabis industry more diverse, equitable and inclusive, he will drive Viola’s mission of racial equity and justice further by conveying the company’s core values as it continues to give back to communities most affected by the War on Drugs. His efforts in unity with Al Harrington’s will propel mass social reform of the cannabis industry. A key driver of this progress will be forthcoming developments through Viola Cares, the brand’s hallmark social equity program aimed at fully funding social equity applicants as they transition into the legal cannabis business. The vision of this program is to create 100 Black millionaires in the near future.

“I have the utmost respect for Al and all the work he has done with Viola to increase minority representation in cannabis and help Black and brown communities who have fallen victim to the War on Drugs,” says Harris. “Together we will expand social justice reform by providing tangible resources for disenfranchised communities and opportunities to build economic autonomy within the cannabis industry.”

Through education, equitable offerings, expungement and incubation programs, the Viola Cares mission is to increase minority representation, facilitate community building and provide employment opportunities to Black and other minority groups in cannabis. With T.I.’s work within underserved Black communities, this new alliance and combined effort between Viola and T.I. will result in forthcoming initiatives such as supporting adult halfway houses in California, Colorado, Oregon, Washington, Michigan and Oklahoma in partnership with Us or Else, T.I.’s social justice non-profit. The partnership will also provide scholarships to HBCU students who are studying the cannabis field at Southern University. On Monday, Dec. 21, Harris Community Works, in conjunction with Viola Cares, gifted boys ages 11 to 25 from the Next Level Boys Academy diversion program with coats and shoes as a kick-off to this partnership.

“As we continue to increase our social imprint within the cannabis industry, I am honored to welcome my brother T.I. into the Viola family,” says Harrington. “His work helping communities of color over the years directly aligns with Viola’s core values as we look to meet the needs of underserved communities by fostering new opportunities for people that look like us.”

When Mike Howard (Director of Cultivation, The Grove) first caught word of the record-breaking cannabis yields being harvested regularly by fellow grow teams around the country (Lume Cannabis in Michigan and Green Life Productions in Nevada) he knew the game was changing. Once Howard dug deeper into the news, he discovered a common catalyst behind the success of his peers: both facilities were actively growing under the A3i LED grow light from Fohse. After hearing firsthand from the grow teams in Michigan and Nevada how they had increased yields over HPS by 31% and 100% respectively, Howard knew he had to get Fohse lighting into The Grove ... and fast!

The Grove, a vertically integrated cannabis business with dispensary, cultivation, distribution, and production licenses, has been producing, sourcing, and selling high quality edibles, cartridges, and recreational cannabis products since 2015. Their 26,600-square-foot growing and production facility is state-of-the-art and eco-friendly. They strive to recreate the conditions that cannabis would find in nature and use only all-natural growing media and inputs as well as biological measures to control any pests or diseases. It only makes sense then that they would seek out and select Fohse products – the best lighting fixtures in the business – to match The Grove’s exacting standards.

The dry Las Vegas air makes for a challenging indoor growing environment for cannabis. Fohse fixtures operate at much cooler temperatures than standard HPS fixtures. At The Grove, this means that the humidifiers and cooling systems don’t have to work as hard, and that an equilibrium between temperature and humidity level can be more easily achieved and maintained. This has led to some of the record harvests being seen regularly at The Grove. Looking at how Fohse’s A3i 1500-watt fixtures compare to standard 1000-watt DE HPS fixtures in an “apples to apples” comparison reveals just how in sync these intelligent fixtures are with cannabis. The numbers from a recent, late fall harvest tell an impressive tale:

*Strawberry Cheesecake was the highest-yielding strain at 7.2 lbs/light, while Cookies was the lowest at 5.49 lbs/light

In the now-typical example above from Fall 2020, the A3i system generated an average of 27 percent more light as compared to the HPS fixtures. This additional light led to an increase in dry yield harvest weights by a whopping 65 percent. All of this, while using 16 percent less energy than the HPS lighting it was compared to and in the same physical footprint of space with the same number of plants.

Remarkable results like those at The Grove are not a fluke or an accident and they are not restricted to Mike Howard and his team alone. Growers all over are finding results like these to be the new norm, regardless of growing media and style of growing. Lume Cannabis has been tracking results of their Fohse A3i fixtures for over 40 hydroponic growing cycles and across 8 different strains of cannabis. Without fail, the team at Lume under Kevin Kuethe’s direction, reports higher yields under the A3i than those grown under HPS. For example, with Fohse fixtures they have harvested 7,130 lbs. versus 5,241 lbs. with the same strains grown under HPS. THC levels under Fohse lights have been 3 percent higher too; 20 percent versus 17 percent on average. In other words, the cannabis that Lume grew under Fohse lighting netted more than $2.5 million more than the cannabis grown under HPS.

For the past five years, Cannabis Business Times has conducted research to determine how growers are using lighting in their indoor and greenhouse facilities. With five years of data, the 2020 State of the Lighting Market Report revealed interesting insights about the cannabis cultivation market, specifically which lighting types growers are using for different stages of growth, which cultivation metrics they’re tracking and more.

One noteworthy finding from the research, conducted by third-party firm Readex Research and made possible with support from Fluence by OSRAM, was that cultivators are increasingly using LED lighting in all stages of plant growth. From 2016 to 2020, LED usage increased by 42 percentage points in propagation, 41 percentage points in veg, and 37 percentage points in flowering, which represented the strongest growth when compared with other lighting types.

James Eaves, director of indoor agriculture at digital electricity company VoltServer and professor at Université Laval in Quebec, Canada, said this struck him when he was reading the 2020 State of the Lighting Market Report.

“From my own interaction with growers, I see people adopting LEDs, but it’s still a lot of HPS, which especially in flower, is still strongly embraced by growers,” Eaves said. “I think if they are high enough intensity that LEDs are a good replacement for HPS.” More than half (52%) of participants in CBT's 2020 lighting research said they use LEDs in the flowering stage, and 40% said they use HPS in that growth stage. 

RELATED: Cannabis Cultivation Lighting Research Shows Shifts in Technology, Grower Practices

Eaves said one of the best applications for LEDs is the vegetative stage, as LEDs don’t produce as much heat as traditional grow lights, giving cultivators the option to grow vertically. And there are large subsidies available in many U.S. states and Canadian provinces for those who use LED technology, which has been embraced by energy companies as a more efficient option for indoor agriculture.

This week, the U.S. Senate approved the Cannabidiol and Marijuana Research Expansion Act, which would allow the attorney general to increase the number of federally licensed entities authorized to cultivate cannabis for research purposes. Elsewhere, in Missouri, a judge rejected a lawsuit challenging the state’s limit on medical cultivation licenses.

Here, we’ve rounded up the headlines you need to know before this week is over.

Federal: Vertically integrated multistate operator Ayr Strategies announced this week the proposed acquisition of Liberty Health Sciences, a vertically integrated operator in Florida, and GSD NJ LLC, a licensed operator in New Jersey. Including these and other pending transactions, Ayr will have operations in seven states covering 73 million people, which include four adult-use markets and three medical markets. Read moreMultistate operator Columbia Care signed a definitive agreement this week to acquire Green Leaf Medical in a deal that will expand Columbia Care’s footprint and operating scale in the East Coast and Mid-Atlantic regions. “This combination affirms Columbia Care’s position as one of the largest cultivators, manufacturers and retailers in four key states—Pennsylvania, Virginia, Ohio and Maryland—three of which are expected to convert from medical to adult use in the next 24 months,” Columbia Care CEO Nicholas Vita said in a public statement. Read moreThe U.S. Senate voted this week to pass S. 2032, the Cannabidiol and Marijuana Research Expansion Act, which would allow the attorney general to increase the number of federally licensed entities authorized to cultivate cannabis for research purposes. Currently, only the University of Mississippi is authorized to cultivate cannabis for use in FDA-approved clinical studies. Read moreMassachusetts: Gov. Charlie Baker, Treasurer Deborah Goldberg and Attorney General Maura Healey have announced the appointments of Nurys Z. Camargo and Bruce Stebbins to the five-member Cannabis Control Board, which oversees the state’s cannabis industry. Camargo and Stebbins will each serve five-year terms, and will replace Shaleen Title, whose term ended Sept. 1, and Kay Doyle, who left the board in May. Read moreMissouri: A Missouri judge has upheld the state’s medical cannabis rules after rejecting a lawsuit brought by a family arguing that the state’s limit on cultivation licenses violated their “right to farm.” The Missouri Department of Health and Senior Services (DHSS) issued 60 medical cannabis cultivation licenses in December 2019, and Paul Callicoat and his family sued the department after their application to turn their 70-acre Sarcoxie property into a cultivation site was denied. Read more

Cannabis-infused beverages may only represent a small portion of the overall legal market in the U.S. and Canada now, but there are several reasons to believe that may change, and quickly.

Several companies—from cannabis giants like Canopy Growth and Acreage Holdings to historic, household brands like Pabst Blue Ribbon (PBR)—have placed their bets on cannabis-infused beverages, announcing releases (or plans to) in Q4 2020.

In the case of PBR, which agreed to allow the independently operated Pabst Labs to use its brand for its new THC-based drink, the company is not subbing alcohol for THC and creating a beer, like Lagunitas Brewing Company (and parent brand Heineken) did in the case of Hi-Fi Hops. Instead, PBR Labs and many others are fueling a growing niche within the cannabis beverage niche–THC-infused tonics.

And if the popularity of sparking water brands like La Croix and alcohol-based hard seltzers are any indication, these bubbling beverages may be the drink that takes this edibles segment to the next level.

Poised for Growth

The edibles market represents 15% of all cannabis sales in the U.S., according to a recent webinar hosted by industry research firm BDSA, and beverages make up just a small portion of edibles sales at 5%. In Canada, those figures are 6% and 3%, respectively, according to BDSA. But there is evidence of growing interest.

LANSING, Mich. – Governor Gretchen Whitmer today granted four requests for clemency after reviewing the applications and recommendations by the Michigan Parole Board. 

“As a former prosecutor, I recognize how critical it is to take steps toward a smarter and more equitable justice system. Over the last two years, we’ve worked with leaders on both sides of the aisle to make tremendous progress to give people a second chance, from reforming civil asset forfeiture to becoming a national leader on expungement,” Whitmer said. “These commutations offer a second chance to four individuals who have accepted responsibility and paid their debts to society and whose sentences span decades for non-violent offenses. We still have a lot of work to do, but today is a step in the right direction, and I’m confident that Michigan can continue to be a national leader in smart justice.” 

Based on the affirmative recommendation of the Michigan Parole Board, Michael Thompson, Lawrence Cadroy, Lorenzo Garrett, and Larry McGhee have received commutations for their non-violent sentences.  

A commutation reduces an individual's sentence to a specified term, but does not nullify the underlying conviction. All four individuals have received a commutation that makes them immediately eligible for parole consideration and subsequent release consistent with state law.

“For far too long, the so-called ‘tough on crime’ and ‘war on drugs’ eras of criminal justice have led to fractured families and broken communities that make our state less safe, particularly for people of color in Michigan,” Gilchrist said. “Our administration has spent the last two years delivering bipartisan solutions to improve the criminal justice system in a way that levels the playing field for individuals who have committed nonviolent offenses. We will continue to find ways to provide second chances for everyone, which will make our families, neighborhoods, and communities are safer and stronger.” 

To receive a pardon or commutation, an individual must file an application with the Michigan Parole Board. The applications are reviewed by the parole board on a case-by-case basis. Once an application has met the criteria for recommendation, it is sent to the governor’s office for review and a final determination.

The Drug Enforcement Administration (DEA) has released a final rule that addresses forthcoming regulations regarding federally legal cannabis research.

The announcement of the final rule follows the United Nations Commission for Narcotic Drugs’ vote to remove cannabis from its list of most dangerous drugs, and the U.S. House and Senate’s passage of cannabis research bills.

RELATED: U.N. Vote on Cannabis: Is This the Beginning of the End of the Controlled Substances Act?

In the public comment section of the rule, which goes into effect Jan. 19, 2021, DEA explains that “past experience in the manufacture of controlled substances” will be a factor the agency will consider when reviewing applications. The rule, citing the U.S. Congress, states: 

The rule continues: “…An applicant that has manufactured marijuana without obtaining a DEA registration has violated Federal law, … regardless of whether that manufacturer has violated the laws of the State in which the applicant is located. … While the DEA Administrator has discretion to weigh the statutory factors and any one factor need not be dispositive, an applicant's prior compliance with Federal law is a relevant consideration when determining whether to grant an application for registration.”

Some see DEA’s registration criteria as a red flag. Henry Baskerville, a partner at Fortis Law Partners provided the following statement to Cannabis Business Times and Cannabis Dispensary.

PITTSBURGH, Dec. 23, 2020 /PRNewswire/ -- PRESS RELEASE -- Workers at CannTech LLC voted overwhelmingly to ratify their first-ever union agreement this week. The three-year agreement includes retirement benefits, wages and LGBTQ non-discrimination language.

"We're thrilled to sign this agreement with CannTech!" said UFCW Local 1776 President Wendell Young IV. "Medical cannabis patients will soon be able to look for the 'Union Label' on CannTech products as well as on the door of their soon to open dispensaries across the Commonwealth."

CannTech operates a clinical research medical cannabis grow facility in Warrendale, Pa., just north of Pittsburgh, and is preparing to open five medical cannabis dispensaries throughout the state of Pennsylvania. All workers at these facilities will be represented by UFCW Local 1776.

Young added, "I'm glad that CannTech management respects worker's rights to organize and has risen to the occasion, signing this outstanding agreement and raising standards for cannabis workers in Pennsylvania. The medical cannabis industry is one of Pennsylvania's essential businesses and has seen rapid growth during the Covid-19 pandemic. We are proud to represent these frontline workers."

Local 1776 members at CannTech are part of the thousands of workers in the cannabis industry across the county represented by UFCW. In Pennsylvania, UFCW 1776 represents workers at Harvest (formally Franklin Labs) and Jushi (formerly Vireo).

A Missouri judge has upheld the state’s medical cannabis rules after rejecting a lawsuit brought by a family arguing that the state’s limit on cultivation licenses violated their “right to farm,” according to a St. Louis Post-Dispatch report.

The Missouri Department of Health and Senior Services (DHSS) issued 60 medical cannabis cultivation licenses in December 2019, and Paul Callicoat and his family sued the department after their application to turn their 70-acre Sarcoxie property into a cultivation site was denied.

The Callicoat’s lawsuit argued that the state violated a right-to-farm amendment in the Missouri Constitution by limiting the number of licenses issued, although Cole County Circuit Judge Patricia Joyce wrote in her ruling that “the department’s regulations fall squarely within its constitutional delegation of authority,” according to the St. Louis Post-Dispatch.

Joyce said the rules limiting the number of medical cannabis cultivators are “appropriate” and “will protect patient safety,” the news outlet reported. She added that the licensing cap is based on population data and can be lifted in the future if needed.

The Callicoat family plans to appeal, according to the St. Louis Post-Dispatch.

There’s no argument that the cannabis market currently is dominated by delta-9-tetrahydrocannabinol (Δ9-THC), the intoxicating cannabinoid prized for its medical and recreational effects. Cannabidiol (CBD) is another major cannabinoid found in drug cannabis and hemp varieties that catapulted the cannabis plant into the mainstream (thanks to CNN’s Dr. Sanjay Gupta’s expose on Charlotte Figi, a child with intractable epilepsy who found the semblance of a normal life by using CBD).

That said, these are by no means the only valuable compounds found in the cannabis plant, nor are they the only ones that cannabis consumers are interested in purchasing.

According to a survey conducted by Brightfield Group, the vast majority of U.S. cannabis consumers would be “likely” to purchase cannabis products that heavily featured minor cannabinoids like cannabichromene (CBC), cannabinol (CBN) and cannabigerol (CBG), among others. In fact, the majority of survey participants (~3,500 respondents) said they would be “very likely” to purchase products based on all of these minor cannabinoids.

Researchers are beginning to take a closer look at those and other minor cannabinoids in the hopes of finding the next great medical discovery. Here’s a glimpse into what they found in 2020.

Cannabinol (CBN)

CBN is an up-and-coming cannabinoid in terms of marketability, with a handful of companies already vying to sell CBN supplements to consumers, often marketed as sleep aids. This reputation stems in part from how CBN is formed through the degradation of THC and the belief that “old” cannabis is more sleep-inducing than fresher samples. However, little research actually has been done to confirm the molecule’s sedative effect. In fact, in an interview with Leafly, Dr. Ethan Russo, Director of Research and Development at the International Cannabis and Cannabinoids Institute, suggested that the higher presence of sesquiterpenoids and loss of monoterpenoids are what give older, CBN-rich cannabis its drowsy effect.

It’s been quite a year for retail cannabis. Despite medical and recreational dispensaries maintaining “essential” status throughout most of the country, the global pandemic has seen hundreds of thousands of lives lost and millions of jobs cut in the restaurant, hospitality and travel industries.

The holidays give everyone an opportunity to spread some seasonal cheer. Cannabis dispensaries are celebrating the season by offering competitive prices on interesting combinations of products and new ways to stay connected to one another after a challenging year socially.

Cannabis Business Times and Cannabis Dispensary rounded up some of our favorite holiday deals from dispensaries across the country aiming to provide consumers with a more cheerful holiday.

The Green Solution: The (Holiday) Solution

The Green Solution, with 21 locations in Colorado including Denver and Pueblo, has launched “The (Holiday) Solution.” The $60 bundle allows consumers to choose five edibles by NectarBee, a Colorado-based cannabis brand that specializes in concentrates. Popular edible varieties include hazelnut chai truffle, butterscotch lozenges, mint swirl brownies and more. The company also produces six flavors of infused-drinks including cherry soda, ginger ale and root beer.

Chalice Farms: Holiday in Color

Prominent Oregon cannabis company Chalice Farms recently introduced the “Holiday in Color” pre-roll pack which includes six 0.3-gram pre-rolls in various strains including Purple Punch, Duct Tape, Dosi Doh and Hazmat OG. Chalice Farms is also wrapping up its “12 Days of Holiday” campaign, which offers consumers a deal on a different type of product each day from Dec. 13 through Dec. 24. Many specials were designed in conjunction with Oregon manufacturer partners like Buddies Brand, Mana Extracts and OreKron.

The+Source: Holiday Gifts & Promotions

At The+Source, a Nevada cannabis brand with locations in Reno and Las Vegas, shoppers can choose from great holiday-themed products including the new CANN social tonics in flavors like grapefruit rosemary and lemon lavender. Also available are infused pretzel bites by multi-state manufacturer Body and Mind (BaM), which are dipped in chocolate and butter caramel. To help spread holiday cheer to those who need it most, shoppers at The+Source can also choose to round up the cost of their purchase to the nearest dollar and donate the difference to Three Square, a Nevada-based food bank and rescue program that provides meals for people in need.

Gino Kenny of Solidarity – People Before Profit has announced that the party will introduce a bill in Ireland next year to legalize cannabis, according to an Irish Central report.

“Next year People Before Profit will bring forward legislation to end the prohibition of cannabis in Ireland,” Kenny wrote on Twitter. “This will be the first time in eight years that a bill to legalise cannabis will be before the Dáil. Looking forward to the debate ahead in 2021.”

Kenny has been a longtime advocate for cannabis, Irish Central reported, and has fought for medical cannabis access since he was elected to the Dáil in 2016.

Kenny played a major role in launching Ireland’s current five-year medical cannabis pilot program, which allows patients with certain conditions to apply to use medical cannabis, according to the news outlet.

Two new members have been appointed to the Massachusetts Cannabis Control Commission, according to a MassLive.com report.

Gov. Charlie Baker, Treasurer Deborah Goldberg and Attorney General Maura Healey have announced the appointments of Nurys Z. Camargo and Bruce Stebbins to the five-member board, which oversees the state’s cannabis industry.

Camargo and Stebbins will each serve five-year terms, MassLive.com reported, and will replace Shaleen Title, whose term ended Sept. 1, and Kay Doyle, who left the board in May.

Camargo has served as AT&T’s Director of External Affairs in Massachusetts since 2013, and is also the former Senior Policy Advisor for the Massachusetts Executive Office of Public Safety and Security, according to MassLive.com.

Stebbins has served as a commissioner on the Massachusetts Gaming Commission since 2012, the news outlet reported, and has also served as Springfield’s business development administrator.

The U.S. Senate voted Dec. 16 to pass S. 2032, the Cannabidiol and Marijuana Research Expansion Act, which would allow the attorney general to increase the number of federally licensed entities authorized to cultivate cannabis for research purposes.

The bill, primarily sponsored by Sens. Chuck Grassley (R-Iowa), Dianne Feinstein (D-Calif.) and Brian Schatz (D-Hawaii), is a combination of the Cannabidiol Research Expansion Act, which was previously introduced by Grassley and Feinstein, and the Marijuana Effective Drug Studies Act, which was previously introduced by Schatz, according to a press release from Grassley’s office.

Currently, only the University of Mississippi is authorized to cultivate cannabis for use in FDA-approved clinical studies.

“Existing regulations make medical marijuana research difficult and have prevented us from understanding exactly how medical marijuana can be used safely and effectively to treat various conditions,” Feinstein said in a public statement. “Our bill streamlines the research process and paves the way for marijuana-derived medications that are FDA-approved to treat serious medical conditions, like intractable epilepsy, in a way that will keep consumers safe.”

The U.S. House voted Dec. 9 to pass a similar bill, H.R. 3797, the Medical Marijuana Research Act, which would allow authorized scientists to access cannabis from state-approved cannabis programs for clinical trials.

NEW YORK--(BUSINESS WIRE)--PRESS RELEASE--Columbia Care Inc. has signed a definitive agreement to acquire Green Leaf Medical, LLC, a privately held, fully-integrated cannabis multi-state operator (MSO) based in the mid-Atlantic region, for approximately $240 million with the potential for additional performance-based milestone payments.

Following the close of two acquisitions that established Columbia Care as a market leader in the two largest cannabis markets in the world, California and Colorado, the acquisition of Green Leaf expands Columbia Care’s operational scale and footprint in four key, limited license markets by materially enhancing the scale and capabilities of its seed-to-sale operations. Subject to the regulatory approval process, Columbia Care will be one of the largest and most efficient operators in Pennsylvania, Maryland, Ohio and Virginia. Founded in 2014 by Philip Goldberg and Kevin Goldberg, Green Leaf is one of the largest private MSOs in the United States and a market leader in the Mid-Atlantic region with cultivation, extraction, processing and retail operations across its four-state footprint. In addition to its dispensary footprint, Green Leaf also brings a leading wholesale market position in both Pennsylvania and Maryland, where its products are most widely sold under its nationally recognized gLeaf brand, including extracts and pre-rolls. Green Leaf facilitates online ordering, its operational home delivery services in Maryland and Virginia, and proprietary inventory and order management capabilities via its gLeaf Marketplace platform.

“This combination affirms Columbia Care’s position as one of the largest cultivators, manufacturers and retailers in four key states - Pennsylvania, Virginia, Ohio and Maryland - three of which are expected to convert from medical to adult use in the next 24 months. Green Leaf complements our retail footprint and brings wholesale leadership through which we can drive our portfolio of brands and unique products. The transaction is immediately accretive to gross margin, Adjusted EBITDA and Cash Flow from Operations,” said Nicholas Vita, CEO of Columbia Care. “Ohio and Pennsylvania are already two of our top performing markets by revenue and Adjusted EBITDA, and this transaction makes us one of the largest, most scaled wholesale and retail operators. In Maryland and Virginia, Green Leaf materially expands our wholesale footprint, retail dispensary network and the scope of our home delivery services. Acquiring Green Leaf immediately converts Maryland to an Adjusted EBITDA positive market. In addition, it accelerates our growth and profitability in Virginia, Ohio and Pennsylvania. No organization in the industry will be better positioned to serve patients and customers in the Mid-Atlantic than Columbia Care. We are proud to partner with the Green Leaf team and organization and look forward to delivering the best suite of products and services available in the market.”

Commenting on the acquisition, Philip Goldberg, Green Leaf’s CEO and co-founder, stated: “Columbia Care is the ideal partner to take Green Leaf through its next phase of growth. In conjunction with its existing scale and market-leading strategy across its portfolio, Columbia Care’s dedication to ensuring optimal accessibility and product quality aligns with our values and will improve our ability to serve and expand our customer base throughout the mid-Atlantic.”

Kevin Goldberg, co-founder, general counsel and president of Green Leaf added: “We are excited to have the opportunity to expand the gLeaf brand beyond the Mid-Atlantic region, and our partnership with Columbia Care gives us the ability to accomplish this quickly and efficiently. As founders and shareholders, we’ve built one of the best organizations in the industry, and we wanted to partner with a like-minded company in terms of its mission, values and culture. We look forward to joining Columbia Care’s leadership team to capitalize on the many operational synergies across each of our markets and deliver unparalleled results.”

TORONTO, Dec. 22, 2020 (GLOBE NEWSWIRE) -- PRESS RELEASE -- Ayr Strategies, a vertically integrated cannabis multi-state operator, today announced the proposed acquisition of Liberty Health Sciences, a vertically integrated operator in Florida, in a stock-for-stock transaction valued at $290 million. Additionally, Ayr announced the proposed acquisition of the membership interests in GSD NJ LLC, a licensed operator in New Jersey, for upfront consideration totaling $101 million. Including these and other pending transactions, Ayr will have operations in seven states covering 73 million people, which include four adult-use markets and three medical markets.

“Today’s announcements represent a transformational next step for Ayr as a leading multi-state operator in the U.S.,” said Jonathan Sandelman, chairman and chief executive officer of Ayr Strategies. “Our strategy has always been to go deep in the best markets, targeting attractive assets in limited-license states with large populations, where we can build a vertically integrated presence and have a significant edge. New Jersey will be a leading force in adult-use legalization in 2021, and we look forward to working with the regulators to ensure a safe and robust roll-out of the adult-use program. Florida has one of the country’s most robust and rapidly growing medical programs, and we are acquiring one of the largest operators in terms of store count.

“2021 will be a year of material growth for Ayr in the adult-use market. In Massachusetts, Ayr is already a market leader in wholesale and medical sales and will open three adult-use stores in the under-served Greater Boston area in 2021. Two of our newest states – New Jersey and Arizona – will roll out adult-use for the first time, and Ayr is excited to help lead that transition.”

Sandelman continued, “Our assets are the most productive in the industry, and we intend to bring this same operational excellence to Florida and New Jersey. We see an incredible opportunity to elevate Liberty’s cultivation, product selection and dispensary experience to the level of quality, productivity, selection and service we have consistently achieved in our existing markets with the deep bench of talent and know-how we already have in place. We are thrilled that our disciplined and targeted approach to expansion has enabled us to build this terrific footprint from a position of strength, with a team that consistently demonstrates operational excellence and great support from our debt and equity investors.”

Transaction Highlights

Florida

The Supreme Court of the United States will make a decision in Facebook v. Duguid, expected by June 2021, and industry stakeholders believe the SCOTUS call will affect the way businesses of all kinds build relationships with their customers. It will have an especially significant impact on the cannabis industry.

If the court defines an automated telephone dialing system as a system using stored information collected from customers—rather than one that stores or dials randomly-generated phone numbers—then companies that call or text their clientele without first obtaining permission could face millions of dollars in penalties. 

The consequences may be detrimental to growing cannabis dispensaries and brands, because texts are often a primary method of contact with a mostly Millennial market. 

Lawren Zann, partner at Greenspoon Marder LLP, explained that litigators have already created an industry initiating Telephone Consumer Protection Act (TCPA) complaints. “It’s happening at rates we had previously not dreamt of,” he said. Cannabis companies are a particular target, “led by plaintiff’s attorneys who view the cannabis industry as the next Gold Rush.” 

Consumer outreach could get even more challenging, depending on the SCOTUS ruling. “If the Supreme Court goes against Facebook’s position, it’s going to embolden the plaintiffs and the attorneys,” he said.

According to Zann, some smaller cannabis companies already struggle to stand up to legal action, regardless of whether or not they are in the wrong. “They’ve lost millions of dollars settling out of court,” he said.

In 2020, industry members have been meeting virtually to discuss opportunities for minority participation in the cannabis space, including at the ownership level. Organizations such as Minorities for Medical Marijuana (M4MM), Minority Cannabis Business Association (MCBA) and Marijuana Policy Project (MPP) held events where speakers addressed the murder of George Floyd in Minneapolis and other killings of people of color, as well as their desire for social equity and criminal-justice reform.

Racial disparities in cannabis industry participation reflect a broader statistics in agriculture. The National Young Farmers Coalition issued a report in December 2020 titled “Land Policy: Towards a More Equitable Farming Future.” It states that in the U.S., “White individuals account for 95 percent of all farmers, own 98 percent of farmland, and receive the vast majority of agriculture-related financial assistance.”

The report provides specific call-to-action items for federal, state and local policymakers to support Black, Indigenous and People of Color (BIPOC) farmers. On the state level, these include steps to “[p]ass state legislation to help farmers manage their student loan debt so they can better access capital for land purchases” and to “[i]mprove and expand land access finance options.”

As capital remains a barrier to entry for minorities looking to enter or expand their opportunities in the state-legal cannabis space, Cannabis Business Times and Cannabis Dispensary recently caught up with industry stakeholders to discuss the financial aspects of minority participation in state-legal cannabis in 2020.

License Acquisition Before Investment

There is value in plant-touching businesses obtaining a license before trying to raise large amounts of capital, Seun Adedeji, owner and CEO of Elev8 Cannabis, a retail company with stores in Oregon and Massachusetts, recently pointed out to CD.

“For newcomers that are trying to get into the cannabis industry, my biggest advice to them is, one, find what aspect of the cannabis industry you're looking to go to—example: if you're looking at retail—let's say it costs you $1 million,” Adedeji said. “Instead of trying to raise the whole million, try to get assets, try to find ways to leverage, raise a little bit of capital, raise $50,000, get [the] right attorney. Win the license, then use the license and go raise against the license. The license is what has value.”