MjLink Cannabis Business News and Press
The Hemp Industries Association (HIA) has come out in support of hemp-derived delta-8 tetrahydrocannabinol (THC).
In a news release, the association took the position that all hemp-derived cannabinoids were made federally legal by the Agriculture Improvement Act of 2018 (the 2018 Farm Bill), and delta-8 should therefore be regulated, yet permitted for production and sale, across the U.S.
The association backed its stance with a legal opinion analyzing the legality of the contentious cannabinoid, which was penned by attorneys Rod Kight and Philip Snow of Kight Law.
Delta-8’s legality is still being debated among legal experts. While it comes from legal hemp, it is often converted from cannabidiol (CBD) or delta-9 THC. Because of this, some interpret delta-8 to fall under “synthetically derived tetrahydrocannabinols.” In its final rule on hemp released in August 2020, the U.S. Drug Enforcement Administration (DEA) clarified synthetically derived tetrahydrocannabinols are to remain scheduled substances despite their delta-9 THC content.
RELATED: Dealing With Delta-8 the ‘Riskiest Thing You Can Do’ in Cannabis: Q&A with Rod Kight
“Businesses, farmers, and consumers all deserve regulations that support the exploration of the hemp plant’s full potential. This isn’t just about one minor cannabinoid —the list is over a hundred already and growing,” said Jody McGinness, HIA’s executive director, said in a news release. “Fortunately, the industry has all the expertise legislators could need, and those manufacturing leaders and scientists are engaged and ready to help create productive policy solutions.”
The issuance of adult-use cannabis licenses in New York may be delayed as Gov. Andrew Cuomo and state Senate leaders are reportedly in conflict over who should lead the Office of Cannabis Management (OMC) and Cannabis Control Board (CCB).
As previously reported by Cannabis Business Times, Cuomo signed the Marijuana Regulation and Taxation Act (MRTA) into law in March, making New York the 17th state to legalize adult-use cannabis.
The OMC and CCB were created under the MRTA to oversee the state's adult-use cannabis market and enforce a comprehensive regulatory framework for adult-use, medical and cannabinoid hemp. The OMC is "governed by a five-member board, with three members appointed by the governor, one appointed by each house," Cannabis Business Times previously reported.
According to Politico, lawmakers have argued that the Cuomo administration has taken little action to prepare for the state's adult-use cannabis market. The governor has yet to enact any MRTA provisions or nominate an OMC executive director and CCB chairperson, which are the first steps to a marketplace being established and licenses being issued.
The debate between Cuomo and Senate leaders has left some industry stakeholders questioning Cuomo's motives and commitment to establish a recreational marketplace, Politico reported.
"I think he's still quite ambiguous about the state moving forward, despite the fact that he negotiated the bill and he signed the bill," state Sen. Liz Krueger said in an interview.
CORONA, California, June 23, 2021 - PRESS RELEASE - Advanced Container Technologies (ACTX) announced it has packaging solutions that will keep products, including cannabis, fresher for a longer period of time.
According to an article in Packaging Digest, cannabis is particularly sensitive to degradation if exposed to the environment.
"Cannabis flower is sensitive to moisture, oxygen and light. These ambient conditions can undercut the flower's effectiveness, flavor and aroma—the very characteristics consumers want and expect. Product integrity hinges on packaging that provides ample protection from these environmental threats," according to the publication.
"Finding a pack that protects against light is fairly straightforward, but safeguarding flower from degradation related to oxygen and moisture is more challenging. Protecting the flower's terpenes is essential. Terpenes are volatile organic compounds that give cannabis flower its aroma and flavor, and influence its effects," the article stated.
ACTX acquired the patented Medtainer to address these concerns specifically. The Medtainer is air-tight and moisture-proof to significantly help prevent the degradation of cannabis flower and preserve the natural aroma, terpenes and cannabinoid compounds.
The Medtainer uses FDA-approved medical-grade plastics and also features a unique built-in grinder.
NEW YORK, June 15, 2021 - PRESS RELEASE - Columbia Care, a cultivator, manufacturer and provider of cannabis products in the United States, announced that it has entered into a definitive agreement to acquire Medicine Man Denver, a vertically integrated cannabis company that has been serving the Denver metro area since 2009.
"The acquisition of Medicine Man further solidifies Columbia Care's position as a scaled retailer, cultivator and manufacturer in Colorado, the world's second-largest cannabis market. Medicine Man is outperforming the broader Colorado market, with sales growth of 42% in 2020, versus 24% for the state and 64% year-to-date through May, versus 25% for the state. The acquisition will add one cultivation facility and four dispensaries, including one co-located adult-use and medical location and three adult-use facilities to Columbia Care's national footprint.
"We have great admiration for what Medicine Man's leaders, Sally Vander Veer and Andy Williams, have built over the past 12 years through their tireless leadership, local and state-level advocacy and exceptional business acumen and vision,” said Nicholas Vita, CEO of Columbia Care. "Medicine Man will further cement our position as the leading vertically integrated operator in Colorado, in tandem with our ongoing integration of The Green Solution and will have a positive impact on our financial performance for years to come. We are also confident that the strong alignment of values between our two companies will help Columbia Care continue its growth in Colorado sustainably and responsibly. We are thrilled to bring one of Colorado's longest-running and most highly respected cannabis companies into the Columbia Care family."
Medicine Man brings a highly experienced and talented team of executives and employees that further bolsters Columbia Care's strong talent pool. The company's founders and management team are pioneers of Colorado's legal cannabis industry. Over the past 12 years, they have built a widely regarded, highly profitable business that has earned strong loyalty amongst its customers and employees. Because of this, Medicine Man has been recognized as a best-in-class retailer, employer and cultivator through numerous awards.
Andy Williams, Medicine Man's president and co-founder, stated: "Since 2009, the Medicine Man family has helped to pioneer the cannabis industry in Colorado. We have done it responsibly and vigorously for our customers, employees and our family. Our industry is changing and growing now faster than ever. We recognize the need to partner with others in order to continue to compete within, and help to responsibly transform, the industry as it grows. We are proud to be joining our businesses with Columbia Care, a true leader in this next phase of growth in the cannabis industry. Columbia Care is made up of people with family business values and has the horsepower to lead the cannabis industry into the future. We are truly excited to be part of this new team."
"Medicine Man is thrilled to announce our partnership with Columbia Care," said Sally Vander Veer, CEO of Medicine Man. "They are an ideal partner, and I am confident in their ability to uphold the higher standards that our family-owned and operated cultivation and dispensaries have built over the past twelve years. I knew this opportunity was the right fit for our family and employees because of our shared commitment to operational excellence, emphasis on employees and culture, and a customer-first mentality. I look forward to a seamless integration and an exciting next chapter of growth and success."
More than a decade ago, Rhode Island state Sen. Joshua Miller chaired a commission that examined cannabis prohibition and the effects of what he called a failed policy.
That was in 2010. When Miller finally had the opportunity to introduce an adult-use cannabis bill Tuesday evening on the Senate floor, the upper chamber spent all of 15 minutes discussing the legislation before approving it in a 29-9 vote.
Sponsored by Miller and nine of his Democratic colleagues, Senate Bill 568 would allow adults 21 years and older to possess up to 1 ounce of cannabis or 5 grams of concentrate and grow up to six plants for personal use. The measure would also expedite the expungement process for those with misdemeanor cannabis records.
“It is a historic day, as it is the first time a bill to legalize and regulate cannabis has reached the floor of either legislative chamber in Rhode Island,” Miller said. “We have arrived at this point about 10 years later than I would have liked, and it is important that we act expeditiously to enact a regulatory framework.”
Miller pointed out that neighboring Connecticut Gov. Ned Lamont signed adult-use cannabis legislation earlier that day. And neighboring Massachusetts opened up shop for adult-use retail in 2018.
DETROIT and PORTLAND, Ore., June 23, 2021 /PRNewswire/PRESS RELEASE -- Precision Extraction Solutions and Cascade Sciences today announced that they have entered into a definitive merger agreement to create Sinclair Scientific, forming the largest cannabis and hemp extraction equipment and services company in the world with a large portfolio of technological offerings.
Strategic Rationale and Customer Benefits
The merger of Precision and Cascade, which is subject to final customary approvals and conditions, marks the first major consolidation in the cannabis extraction equipment and life sciences space. The combined Company, as Sinclair Scientific, intends to add more brands to its robust portfolio, including highly innovative and disruptive technologies in furtherance of its growth and to maintain its position as the world's premier purveyor of the most innovative equipment, robust technology, and unparalleled customer service in the cannabis extraction and life sciences industries.
Management Commentary
"This is a major milestone in the cannabis extraction equipment and life sciences space and we are thrilled about the unique opportunities this merger will create for our customers, as well as our employees, business partners, and shareholders," said Marc Beginin, CEO of Precision Extraction Solutions. "Our combined company will have the most respected, recognized, and storied brands in the global cannabis extraction industry, and together we will create even brighter futures. This combination offers significant value to our stakeholders in a company firmly positioned for exponential growth."
Lee Kearney, CEO of Cascade Sciences, added, "Through merging Precision and Cascade, we are creating an unmatched platform for both U.S. and international growth. Our combined brands and businesses mean increased scale, solidifying our position as the world's premier provider of the most innovative equipment, robust technology, and unparalleled customer service in the extraction industries. We greatly admire the business that the Precision team has built, and we are excited to work with them to integrate our two companies and execute on the attractive growth opportunities ahead."
Management and Governance
The Board of Directors of the Company will consist of five members, including two appointed by Precision, two appointed by Cascade, and one mutually approved outsider.
In support of building Sinclair Scientific into the most professionally managed extraction equipment and services provider, the CEOs of both Precision and Cascade have agreed to step down from their management positions. Beginin and Kearney have each taken seats as directors on the newly formed board of Sinclair Scientific, providing counsel and guidance to Sinclair's leadership and supporting the ongoing successful execution of the Company's long-term strategic plan.
A second citizen-led petition to legalize adult-use cannabis in Florida bit the dust June 17, when the state’s Supreme Court ruled the words “for limited use” were misleading.
The initiative, titled “Regulate Marijuana in a Manner Similar to Alcohol to Establish Age, Licensing and Other Restrictions,” was geared for the 2022 ballot and also included provisions for home grows—up to six mature cannabis plants per household member 21 years and older.
But in a 5-2 decision last week, Florida’s Supreme Court struck down the proposed constitutional amendment, concluding it was “clearly and conclusively defective” and did not meet certain clarity requirements outlined in Section 101.161 of Florida Statutes.
Florida Attorney General Ashley Moody first requested the court give an advisory opinion on the ballot proposal’s validity in September 2019. It took the court nearly two years to weigh in.
“Namely, the opponents take issue with the language in the ballot summary that states the proposed amendment would regulate marijuana ‘for limited use and growing by persons 21 years of age or older,’” justices Charles Canady and Ricky Polston said in the majority opinion. “They contend that the text of the proposed amendment itself does not limit the personal ‘use’ of marijuana and that the ballot summary therefore affirmatively misleads voters. We agree.”
Canady and Polston also said, “The ballot summary plainly tells voters that the proposed amendment ‘limit[s]’ the personal use—i.e., consumption—of recreational marijuana by age-eligible persons. But the proposed amendment itself does not do so.”
Nearly as quickly as delta-8 tetrahydrocannabinol (THC) seemed to enter the public sphere, states are taking action to control—and, in some cases, curb—its growth.
In late April, Hemp Grower reported that 12 states had already banned delta-8: Alaska, Arizona, Arkansas, Colorado, Delaware, Kentucky, Idaho, Iowa, Mississippi, Montana, Rhode Island and Utah. At that time, legislative bans were also being pursued in North Dakota, Alabama and Oregon.
RELATED: States Begin Implementing Delta-8 THC Bans
Since then, three more states have successfully banned the cannabinoid: New York, North Dakota and Vermont. (Officials in Washington have also interpreted the law to say delta-8 is illegal, though that ban is not enforced—more on that below.) That brings the number of states with delta-8 legislation up to 15.
As of June 21, these states have taken action against delta-8 and similar THC isomers since Hemp Grower’s last report:
New York: In May, the New York Department of Health (NYDOH) updated its regulations to clarify that hemp cannabinoid products sold in the state may “not contain synthetic cannabinoids, or cannabinoids created through isomerization, including [delta] 8-tetrahydrocannabinol and [delta] 10-tetrahydrocannabinol,” as reported by JD Supra.
In January 2021, Michael Thompson was freed from a Michigan state prison after serving 22 years of a 60-year sentence for selling cannabis in the 1990s. In recent years, particularly as the state-legal cannabis space rapidly expanded, Thompson became emblematic of the deep wounds inflicted by prohibition—and the lasting impact of the War on Drugs’ nefarious legacy.
On June 19, the trailer for “The Sentence of Michael Thompson” was released. The documentary covers his story and the broader implications of cannabis reform vis-à-vis the criminal justice system. It was underwritten and supported by Cresco Labs, which is embarking now on its Summer of Social Justice initiative.
Chima Enyia, Cresco’s executive vice president of SEED (the company’s Social Equity, Education, Development initiative), says that Thompson’s story helps illustrate the disconnect between the burgeoning industry and the men and women left behind by prohibition policies.
“From the Cresco brand, centering on Michael Thompson, his story unfortunately is not unique,” he says. “There is much more work that needs to be done. What we’re doing cannot be performative in nature. What we’re doing and what this industry is doing cannot be tokenized. We have an obligation to lead corporate America on these issues and to evolve our efforts.”
 
Louisiana Gov. John Bel Edwards signed legislation June 15 to decriminalize cannabis, but don’t tell him that.
The legislation, House Bill 652, removes the threat of jail time and reduces the penalty for the possession of up to 14 grams, or roughly a half ounce, of cannabis to a $100 fine for first-time and subsequent offenses.
According to the National Conference of State Legislatures—a non-partisan public officials association that fosters interstate cooperation and facilitates the exchange of information among state legislatures—decriminalization generally means small, personal consumption amounts of cannabis are a civil or local infraction, not a state crime, or are a lowest misdemeanor with no possibility of jail time.
In a statement following his signing of the bill, Edwards said not to call it decriminalization.
“I have signed H.B. 652, which contrary to the narrative developed in the press and elsewhere, does not decriminalize possession of small amounts of marijuana, 14 grams or less,” he said. “Instead, anyone convicted of this crime will now be subject to a maximum penalty of $100 instead of being exposed to parish prison time.”
While Edwards is a Democratic governor, he often aligns with the state’s sheriffs and has long opposed legalizing cannabis, according to The Advocate, a daily newspaper based in Baton Rouge.
Port Washington N.Y., June 10, 2021––PRESS RELEASE––The Hawthorne Gardening Company (Hawthorne) announced the first grantees of The Hawthorne Social Justice Fund within The Scotts Miracle-Gro Foundation. These organizations are leading the charge with criminal and social justice reform for the cannabis industry. They include Last Prisoner Project, Marijuana Policy Project Foundation, Minorities for Medical Marijuana and United Returning Citizens. In addition, Hawthorne is funding the NuLeaf Project, an organization that provides direct support for minority cannabis entrepreneurs, through a corporate donation.
As North America’s leader in indoor and hydroponic growing supplies, Hawthorne has committed to use its influence and resources to help drive criminal justice reform related to cannabis prohibition and contribute to shaping a more equitable post prohibition cannabis industry.
“Our commitment to being a good company is what drove us to create The Hawthorne Social Justice Fund within The Scotts Miracle-Gro Foundation. As we announced earlier this year, the fund was established with an initial investment of $2.5 million to support non-profit organizations with cannabis social justice missions.” said Chris Hagedorn, Executive Vice President and Division President of Hawthorne. “This fund deepens Hawthorne’s commitment to spark change as policy reform advances across the country and states address the legacy of racial inequity tied to cannabis prohibition. It is our promise to support programming that helps communities and individuals who have been negatively affected by the long standing and systemic inequality related to cannabis prohibition in the United States.”
The Hawthorne Social Justice Fund grantees were selected because of the powerful work they’re doing to address the negative impacts caused by the disproportionate number of cannabis-related arrests and incarcerations involving persons of color, to support minority entrepreneurs and to increase investments in minority communities.
“We are proud to be a partner of The Hawthorne Social Justice Fund. As legalization continues to gain traction across the country, we believe it is crucial to advocate for policies that promote inclusion, equity, and justice both in legislation and in the cannabis industry. Hawthorne's commitment to advancing reforms needed to create a more just and equitable industry is commendable, and we look forward to the work that will be accomplished through this partnership," said Steven Hawkins, Executive Director of Marijuana Policy Project Foundation.
The work of the Fund’s grantees includes:
BOCA RATON, FL. / DENVER, CO., JUNE 16, 2021 – Alternative Risk Strategies (ARS) today announced a new insurance solution for the cannabis industry that is specifically designed to meet the most difficult insurance challenges cannabis, hemp and cannabidiol (CBD) businesses face today.
Under current market conditions, cannabis businesses that are trying to purchase or renew insurance policies are experiencing an increasingly hardened insurance market characterized by substantially higher premium rates and higher deductibles/retentions for several of their necessary policy lines, such as Directors and Officers insurance. In response to this hard market event, ARS launched Cannabis Captive Solutions for qualifying cannabis companies as a competitive and alternative risk transfer solution that can help cannabis businesses lower their costs, improve cash flow and accumulate wealth.
A captive is a unique insurance company set up by its business owners to insure emerging and unique market conditions and avoid, when available, overpriced traditional insurance policies. As opposed to a traditional insurance company that collects the premium and retains the profits, a business-owned insurance captive has the unique ability to manage, assign and script specific risks and pay claims. A captive with little or no claims, builds up equity to be used for potential future claims (reserves), purchase re-insurance (higher limits) and apply to future premiums (cost reductions) by the company implementing the captive. ARS Captive Solutions is a new and effective way to keep a cannabis business resilient, cash fluid, manage risk mitigation and accumulate wealth.
“Watching the cannabis industry rapidly emerge over the last 6 years, the industry is limited in traditional insurance products and markets. Premiums continue to harden in an industry with little historical data. We are seeing an immediate need to provide alternative risk solutions to qualifying companies,” said Eric Rahn, managing director. “Presently public and private cross [border] (Canadian/USA) cannabis companies are categorized as high-risk in a highly-regulated industry. Insurance companies presently servicing the industry continue to charge huge premiums for coverages that are a critical foundation to protecting their business operations and attracting and retaining valuable officers and directors. With our new ARS Cannabis Captive Solutions, business can finally access the coverages they need to protect their business, transfer risk, and reduce insurance costs over a short period.”
Qualifying cannabis companies can access premium coverages, including Directors & Officers Liability, Professional & Products Liability, Excess Liability and Other Broad Form Coverages. ARS manages the process of analyzing its client’s insurance needs, set risk management goals and objectives, assists cannabis businesses and assist businesses form a captive private insurance company should they qualify. ARS coordinates with all the businesses in-house and outside professionals such as tax/accounting, legal and insurance brokers, and helps form a risk management committee of outside experts to report back to the captive owners.
]]>Debate on adult-use cannabis legalization finally got its day on the Connecticut House floor, where reform proponents prevailed during a special session Wednesday evening.
After House Republicans denied a vote in the regular order of the legislative session through the threat of a filibuster June 9—the final day before adjournment—lawmakers returned to the lower chamber and deliberated for more than seven hours June 16. In the end, legalization efforts prevailed in a 76-62 vote on an amended version of Senate Bill 1201.
The Senate, which passed the legislation in a 19-12 vote the previous day, is expected to take up the House’s amended version of the bill for final approval Thursday morning. Pending Democratic Gov. Ned Lamont’s signature, Connecticut will be the 19th state to legalize adult-use cannabis. And with some of the social equity language dialed back in this latest version of the bill, Lamont’s signature seems more likely than in previous days.
“Connecticut is just the latest domino to fall as states begin to repeal their failed prohibition of marijuana and replace it with a sensible system of legalization and regulation,” National Organization for the Reform of Marijuana Laws (NORML) Executive Director Erik Altieri said in a statement.
“Never before has the momentum for legalization looked as strong as it does in 2021, with four state legislatures already approving bills to ensure state law reflects the overwhelming will of their state residents in just a few short months,” he said. New York, Virginia and New Mexico have also passed adult-use bills this year.
The Connecticut measure will allow adults to possess up to 1.5 ounces of cannabis flower or an equivalent amount of concentrate in public, and up to 5 ounces in their homes, beginning July 1, 2021. Commercial sales could begin as soon as May 2022.
Social equity has been a pillar for adult-use cannabis passage among many state legislatures that have recently adopted public policy to end prohibition. But language surrounding social equity applications and funding may be the demise of legislation in Connecticut.
The Connecticut Senate passed an adult-use bill by a 19-12 vote during special session June 15, a week after the upper chamber passed the legislation with the same number of yeses during its regular season.
Threats of a House Republican filibuster on the final day before the Legislature adjourned June 9 sidelined the legislation, prompting Gov. Ned Lamont to call the special session.
RELATED: Clock is Ticking for Adult-Use Cannabis Bill in Connecticut
While Lamont supports adult-use legalization—he proposed it during his February state budget request—the governor vowed to veto the new bill, Senate Bill 1201, over language involving social equity eligibility rules adopted through Amendment A in Tuesday’s special session.
Paul Mounds, the Democratic governor’s chief of staff, said in a statement that the current version of the bill “does not meet the goals laid out during negotiations when it comes to equity and ensuring the wrongs of the past are righted. To the contrary, this proposal opens the floodgates for tens of thousands of previously ineligible applicants to enter the adult-use cannabis industry.”
NEW YORK--(BUSINESS WIRE)--PRESS RELEASE--Columbia Care Inc., one of the largest and most experienced cultivators, manufacturers and providers of cannabis products in the United States, today announced that it has entered into a definitive agreement to acquire Medicine Man Denver, a premier vertically integrated cannabis company that has been serving the Denver metro area since 2009.
The acquisition of Medicine Man further solidifies Columbia Care’s position as the most scaled retailer, cultivator, and manufacturer in Colorado, the world’s second-largest cannabis market. Medicine Man is outperforming the broader Colorado market, with sales growth of 42 percent in 2020, versus 24 percent for the state, and 64 percent year-to-date through May, versus 25 percent for the state. The acquisition will add one cultivation facility and four dispensaries, including one co-located adult-use and medical location and three adult-use facilities to Columbia Care’s national footprint.
“We have great admiration for what Medicine Man’s leaders, Sally Vander Veer and Andy Williams, have built over the past 12 years through their tireless leadership, local and state-level advocacy, and exceptional business acumen and vision,” said Nicholas Vita, CEO of Columbia Care. “Medicine Man will further cement our position as the leading vertically integrated operator in Colorado, in tandem with our ongoing integration of The Green Solution, and will have a positive impact on our financial performance for years to come. We are also confident that the strong alignment of values between our two companies will help Columbia Care continue its growth in Colorado in a sustainable and responsible way. We are thrilled to bring one of Colorado’s longest-running and most highly respected cannabis companies into the Columbia Care family.”
Medicine Man brings a highly experienced and talented team of executives and employees that further bolsters Columbia Care’s strong pool of talent. The company’s founders and management team are pioneers of Colorado’s legal cannabis industry, and over the past 12 years have built a widely regarded, highly profitable business that has earned strong loyalty amongst both its customers and employees. Because of this, Medicine Man has been recognized as a best-in-class retailer, employer and cultivator through numerous awards.
Andy Williams, Medicine Man’s President and Co-Founder, stated: “Since 2009, the Medicine Man family has helped to pioneer the cannabis industry in Colorado. We have done it responsibly and vigorously, for our customers, employees, and our family. Our industry is changing and growing now faster than ever. We recognize the need to partner with others in order to continue to compete within, and help to responsibly transform, the industry as it grows. We are proud to be joining our businesses with Columbia Care, a true leader in this next phase of growth in the cannabis industry. Columbia Care is made up of people with family business values and has the horsepower to lead the cannabis industry into the future. We are truly excited to be part of this new team.”
“Medicine Man is thrilled to announce our partnership with Columbia Care,” said Sally Vander Veer, CEO of Medicine Man. “They are an ideal partner, and I am confident in their ability to uphold the higher standards that our family-owned and operated cultivation and dispensaries have built over the past twelve years. I knew this opportunity was the right fit for our family and employees because of our shared commitment to operational excellence, emphasis on employees and culture, and a customer-first mentality. I look forward to a seamless integration and an exciting next chapter of growth and success.”
The state of California will funnel $100 million toward its sprawling cannabis industry this year in an attempt to tighten the regulatory landscape and boost business prospects for entrepreneurs and local governments that took up the market over the past five years.
The cannabis-specific allocation is part of the state’s $268-billion 2021-2022 budget, known in Sacramento and elsewhere as the California Comeback.
The spend includes $22 million earmarked for Los Angeles programs, as well as funds directed toward another 16 cities and counties (San Francisco, Long Beach, Oakland, Desert Hot Springs and others). The idea, according to state legislators, was to targets areas with the highest concentrations of licensed cannabis businesses and consumers—areas where a return on this public investment might be realized more quickly.
“Gov. [Gavin] Newsom is dedicated to the success of the legal cannabis industry in California,” Nicole Elliott, the governor’s senior advisor on cannabis, told the Los Angeles Times. “The purpose of this one-time $100 million in grant funding is to aid locals and provisional licensees, many of which are small businesses, legacy operators and equity applicants, in more expeditiously migrating to annual licensure.”
Money is one thing. Time is another.
As a sign of how things are going in California, Newsom is also floating the idea of a six-month extension on the mandate to move all businesses from temporary licenses to more formal annual licenses. That switch was meant to occur in 2019, but the deadline has since been bumped (twice) to Jan. 1, 2022. Now, Newsom’s administration is hoping to kick the transition into the middle of 2022.
Following the release of cannabis tax compliance reports from the IRS, pursuant to a FOIA request filed by Marijuana Business Daily, we revisit strategies for dealing with examination and oversight.
The most advantageous middle ground between paying a high effective tax rate and a tax rate similar to your stated taxes could refer to the following example.
Let’s assume $2.5 million in revenues, a 40% COGS, 15% operating expenses, a California state tax rate of 8.84% and a C Corporation rate of 21%. (Please note, this is just an illustration!) Remember that in California, the state has given a break to cannabis businesses in that it does not charge state tax on gross income, but rather on net income before tax. Notice the effective tax rate in this example:
Gross Revenues $2,500,000
40% Cost of Goods Sold 1,000,000
Gross Income 1,500,000
LAS VEGAS, June 10, 2021 – PRESS RELEASE – Canadian-based Eteros Technologies, owner of Mobius Trimmer, a brand of high-end cannabis and hemp processing equipment, revealed its latest technological achievement, the M9 Sorter, featuring an industry-leading combination of features to ensure high-speed sorting and precise product sizing. The launch was announced at the company’s “Demo in the Desert” event held at the recently opened Eteros Las Vegas facility, which will serve as the final assembly plant for the new product in the U.S. cannabis market.
“Cannabis cultivators and processors are always engaged in a constant battle to increase yields, reduce loss and ensure high quality is maintained during the trimming process,” Mobius Trimmer CEO Aaron McKellar said. “When sorting can handle more product in less time while increasing accuracy in sizing, a large part of the battle is won. The M9 Sorter is designed with this goal in mind and incorporates a long list of features to get there.”
Features of the M9 include:
An industry-leading nine sorting beltsAn industry-leading 78-inch sorting zone for high-speed and precise sizing of productA longer sorting table that leads to more accurate resultsEvery grading slot is longer, creating more opportunity for an accurate sort, and each grading partition is fully adjustableAll stainless-steel constructionSanitary construction for GMP workflowsAdjustable infeed hopper: tool-free adjustment and removal for feeding or conveyor infeedReversible table for operation in either left or right outfeed configurationEasy access for cleaning with safety interlocked end panels and rear door7-inch HMI color controllerAccurately grades up to 200 kilograms per hourAs with all Mobius products, the Mobius M9 features quick and tool-free removal of all belts and rollers for easy and safe cleaning. The new product announcement comes during a period of strong growth for Eteros, following the acquisition of California-based Triminator, a pioneer in harvesting equipment for professional growers of cannabis and hemp, and the opening of the company’s Las Vegas location earlier this year.
“We are so encouraged by the reception we have received in Las Vegas since opening our facility earlier this year,” McKellar said. “The ability to serve U.S. customers from our new home base in the desert is a dream come true. We look forward to the opportunity to serve more of the U.S. community.”
The Mobius and Triminator product lines combine to form the world’s largest manufacturer of cannabis and hemp harvesting and processing equipment. Eteros Technologies, parent company of the Mobius line, plans to retain Triminator employees and leadership, and company officials said both brands will continue to operate independently. Working in synergy, each will marshal greater engineering, sales, training and support resources to offer customers the most comprehensive suite of processing solutions on the market. The acquisition also means that the full Canadian designed-and-built Mobius line and full U.S.-built Triminator product line will be stocked and available across North America.
]]>Adult-use cannabis legalization will take effect July 1 in Virginia, but state universities are revisiting their codes of conduct to ensure bans on student use and possession continue on their campuses.
Signed into law by Gov. Ralph Northam on April 21, the legalization measure will allow adults 21 years and older to possess up to 1 ounce of cannabis and grow up to four plants per household starting next month—a timeline that was expedited 2 1/2 years through the Democratic governor’s amendment package.
Virginia Tech in Blacksburg is the first university in the state to revise its student code of conduct in response to legalization, while other state colleges also plan to keep cannabis banned, The Roanoke Times reported June 13.
According to VT’s 2020 Student Code of Conduct, “Possessing, using, manufacturing, selling or misusing any substance and/or possession of drug paraphernalia in violation of state or federal law,” is prohibited on campus or at university-sponsored events off campus. Recently revising that section, the university’s update intends to make it clearer that it will be following the federal prohibition of cannabis.
VT’s policy is in line with other universities where state legalization measures are already in effect. According to Roanoke Times, schools are taking these stances because they don’t want to risk losing federal funding by violating the Drug-Free Schools and Communities Act, which bans drugs on college campuses and public schools.
“In addition to state law, our policies must also be aligned to federal laws, too,” VT spokesman Mark Owczarski told the newspaper. “In most cases, state and federal law is similar or the same, which aids in the clarity of university policies. In this case, state and federal laws will have differences, and when that happens, we still to have to make sure our policies align to both, even though they are different.”
It’s been a busy year for federal cannabis legislation. Will all the activity lead to legalization – or even incremental progress on changing federal law?
Federal cannabis reform hasn’t passed into law, but it’s not for lack of trying. In 2021 alone, several high-profile cannabis bills have been proposed in both chambers of Congress, while others have been promised later this year.
Moving into the second half of 2021, let’s examine the most prominent federal cannabis bills, assess their current status, and with the help of industry experts, make some predictions about the future.
The Marijuana Opportunity Reinvestment and Expungement (MORE) Act
Introduced in the House by Rep. Jerry Nadler (D-NY) & other Democratic representatives
May 2021
