MjLink Cannabis Business News and Press
Massachusetts’ updated medical cannabis regulations allow caregivers to support more patients, but the new rules sparked controversy among industry stakeholders at a public hearing last week, according to a MassLive.com report.
At an Aug. 3 hearing, officials from the Massachusetts Patient Advocacy Alliance (MPAA) voiced opposition to the Cannabis Control Commission’s new rules, which would allow caregivers to support up to 10 medical cannabis patients each, the news outlet reported.
MPAA President and Executive Director Nichole Snow said “an arbitrary number of patients per caregiver will likely open the door to a gray market that is indistinguishable from the legally-regulated market,” MassLive.com reported.
Still, others at the hearing, including patient advocates, were encouraged by the new regulations, which they said would allow caregivers to provide medical cannabis at a lower price, according to the news outlet.
A long-running dispute between a slate of California cities and the state itself landed in trial Aug. 6, with a Superior Court judge seeming to underscore that state law will prevail over local rule. At issue: whether cannabis delivery services may operate in jurisdictions that have otherwise banned commercial cannabis activity. The future of delivery in the world’s largest cannabis market is at stake here.
The collective of 24 California cities (as well as Santa Cruz County) argues that a moratorium on cannabis businesses should extend to delivery services that might pass through their borders.
The state insists that delivery is allowed under the Medicinal and Adult-Use Cannabis Regulation and Safety Act (MAUCRSA) and cannot be halted by local whims.
Fresno Superior Court Judge Rosemary McGuire wrote that the local governments would need some sort of ordinance on the books to override state law. As of now, “there is no dispute,” at least as far as legislative language is concerned. In fact, the state’s attorneys specifically point to the MAUCRSA language as an immediate non-starter for this type of litigation.
“A local jurisdiction shall not prevent delivery of cannabis or cannabis products on public roads by a licensee acting in compliance with [state law] and local law,” according to Section 26090(e) of the state code.
Read the original civil complaint here.
New York, NY – PRESS RELEASE- Etain Health, New York’s only family-run, women-owned vertically integrated agribusiness and medical marijuana dispensary, will unveil its rebranding alongside their cannabis products at the opening of its new flagship facility In New York City on Aug. 6, 2020. The Peckham family, which owns the company, transformed the 5,000-square-foot space into a dispensary and retail location for the commercial distribution of its medical marijuana as well as THC-free products.
The new Midtown East location is only a block from Sutton Place on the iconic Designers Way, and has elements such as a living green wall, an airy mezzanine and a retreat space. Designer Clodagh applied her minimalist approach by filling the space with simple, natural touches that simultaneously elevate and ground the customer experience. Etain has created a unique healthcare and concierge experience by merging this elevated environment with personal consultations and premium products so customers can feel good about investing in their health and wellbeing.
With the opening of the flagship location, Etain Health will continue to sell their cannabis products to licensed New York state patients alongside a variety of diverse non-THC New York based health and wellness brands. Brands featured include botanical wellness products from Nature of Things, organic teas by Rishi, Khushi handmade body balms and butters, Golde superfood face masks and Patriae handwoven hemp and linen textiles including face coverings. A rotating selection of limited-edition merchandise by diverse women-owned brands will also be featured with the first spotlight on BWFW (Buy Weed from Women). Store staff will be outfitted in custom aprons from local women-owned textile designer Utility Canvas and their canvas products will also be available for purchase.
The new retail space will also serve as a showcase of Etain’s renewed branding through the inclusion of a vibrant new logo, vividly-colored photography sourced from a floral photographer in the UK and by embodying the new brand mantra “Take a moment with Etain”.
“This represents the next step in Etain’s growth strategy moving into 2021,” explained Hillary Peckham, Chief Operating Officer and co-founder. “Over the past year we have been re-assessing, recalculating, and re-imagining the brand. What has remained consistent is our commitment to the wellbeing of our clients by creating the highest quality and purest products to meet the needs of our customers.
Etain Health was one of the original five licensees in New York and now has dispensaries in Manhattan, Yonkers, Kingston and Syracuse. Before years end, Etain Health will be unveiling all new product formulations and new consumption methods for patients.
]]>Ohio’s medical cannabis sales have reached $100 million so far this year, doubling the sales figures from last year, the program’s first year in operation, according to a Dayton Business Journal report.
As of July 20, the state’s licensed dispensaries had sold more than $156 million worth of cannabis products since the first sales launched in January 2019, an increase from the cumulative $56 million in sales as of December, the news outlet reported.
To date, 116,500 patients have registered for Ohio’s medical cannabis program, as well as 13,000 caregivers, according to the Dayton Business Journal.
The Oklahoma Medical Marijuana Authority (OMMA) has appointed a new director as former director Travis Kirkpatrick was recently named deputy commissioner of prevention and preparedness at the Oklahoma State Department of Health, according to an AP News report.
Kirkpatrick, who will oversee the OMMA from his new position, chose Kelly Williams as the OMMA’s new director, the news outlet reported.
“This is a young agency and we have seen massive growth over the past two years,” Williams said in a public statement. “I look forward to the challenges and the rewards of growing the Oklahoma Medical Marijuana Authority into an agency that will make Oklahomans proud."
Maricopa County Superior Court Judge James Smith has rejected claims that the 100-word summary on an initiative to place an adult-use cannabis legalization measure on Arizona’s 2020 ballot was misleading, meaning the issue can be placed before voters this November, according to a Tucson.com report.
Arizonans for Responsible Drug Policy filed a lawsuit last month to keep the measure off the state’s ballot, claiming that the initiative’s description misled people into signing the petition to put the issue before voters this fall through its definition of “marijuana” and how the law might impact impaired driving in the state.
In a 15-page ruling on Aug. 7, Smith said, “At 100 words, the summary also cannot include everything. That is why the full initiative must accompany the petition.”
Smith also shot down opponents’ suggestions that voters might not understand all the implications of the measure, such as changing laws on advertising and driving under the influence of drugs, Tucson.com reported.
The Michigan Regulatory Agency issued a recall Aug. 6 for nearly 3,200 pre-rolls processed in a Bay City facility after a processing plant employee was accused of licking the product, according to an MLive.com report.
Although it’s unclear how regulators learned of the allegations, the Michigan Regulatory Agency told the news outlet that the processing plant employee “licked a pre-roll marijuana product while making the product.”
The owners of the processing facility also operate Dispo, a medical and adult-use dispensary located in Bay City, according to MLive.com, and the processing license has been suspended for 14 days due to the incident.
The recall includes various brands, and the affected pre-rolls were sold through medical and adult-use retailers in Bay City, Hazel Park, Detroit, Traverse City, Ann Arbor, Lansing, River Rouge, Ferndale, Quincy, Lowell, Negaunee and Lapeer, the news outlet reported. Sales of the recalled product took place between June and Aug. 3.
The Michigan Regulatory Agency has indicated that consumers should return affected products to the retailer where they were purchased so they can be disposed of, and dispensaries must notify customers who purchased recalled products, MLive.com reported.
When brothers James and Giono Barrett transformed a former coffee shop in Juneau, Alaska, into a cannabis dispensary, they aspired to one day create an on-site consumption space for its customers, once Alaska finalized its regulations.
Now, their dream is becoming reality as their dispensary, Rainforest Farms, is the first to apply for an on-site consumption license at the local level.
James and Giono advocated for adult-use legalization in Alaska in 2014 and 2015, when James worked in state government and Giono was a licensed medical cannabis grower. When the state legalized in 2015, the brothers were the first to launch a cultivation operation and retail store in Juneau.
“It’s been a fun ride,” James Barrett said. “We’re at the point right now where Alaska is about to kick off … on-site consumption, … so that’s our next step.”
It’s a two-tier licensing process, he added, and Rainforest Farms must first get local approval before pursuing an on-site consumption license at the state level. The company has a hearing on Aug. 18 with the local planning commission, which will decide whether to alter Rainforest Farms’ conditional-use permit to add on-site consumption.
This week, the cannabis industry began looking toward a September House vote on the Marijuana Opportunity, Reinvestment and Expungement (MORE) Act, legislation that would federally decriminalize cannabis by removing it from the Controlled Substances Act. Elsewhere, in Massachusetts, the Cannabis Control Commission amended its quarantine order for the more than 600,000 vaping products that have been in limbo since late last year, allowing companies to retest and sell previously the quarantined products.
Here, we’ve rounded up the 10 headlines you need to know before this week is over.
Federal: The U.S. House of Representatives is planning a floor vote on the Marijuana Opportunity, Reinvestment and Expungement (MORE) Act, legislation that would federally decriminalize cannabis by removing it from the Controlled Substances Act. The upcoming vote, planned for September, could lead to monumental progress for the industry, according to industry stakeholders, even if the legislation encounters roadblocks in the Senate, where its passage is less likely. Read moreASTM International is developing a cannabis and hemp sampling standard to help farmers achieve better homogeneity for testing samples and reduce the risk of misrepresented products. ASTM’s proposed standard on flower sampling, which is expected to be released in roughly six months pending unanimous approval from at least 60 percent the more than 900 Cannabis Committee members (who hail from 26 countries), would detail exactly how farmers should go about collecting samples for testing. Read moreArizona: Gov. Doug Ducey has submitted statements in opposition to three of the four ballot measures expected to appear on the state’s 2020 ballot, including one that would legalize adult-use cannabis. Ducey called the ballot initiative, which was supported by Smart and Safe Arizona, “a bad idea based on false promises,” saying that experiences from other states with legalized cannabis point to more highway deaths, increases in teen drug use and more newborns exposed to cannabis. Read moreNevada: A proposed settlement that would reshuffle some of Nevada’s adult-use dispensary licenses could end a legal battle between the state and businesses that were not granted licenses in 2018. Some of the plaintiffs challenged the proposal, alleging collusion, but the Nevada Tax Commission has agreed to approve the agreement contingent upon the approval of the Cannabis Compliance Board. Read moreIllinois: The state’s cannabis dispensaries set another sales record in July, selling $61 million worth of adult-use cannabis products. Since the adult-use market opened in January, dispensaries have sold nearly 6.7 million cannabis products for sales totaling more than $300 million. Read moreThe Cannabis Business Association of Illinois has submitted a letter to Gov. J.B. Pritzer, urging him to use a portion of the state’s cannabis tax revenue to support social equity applicants, who have been awaiting one of Illinois’ long-delayed licenses. In the most recent of a series of licensing delays resulting from the COVID-19 pandemic, Illinois indefinitely postponed issuing craft grow, infuser and transporter licenses July 1, and applicants have since said they are in limbo and quickly losing money as they await their licenses. Read moreMassachusetts: More than 600,000 vaping products quarantined in Massachusetts last year can now be retested and sold or reclaimed and repurposed into other products if they meet safety standards, according to a Aug. 3 press release from the Cannabis Control Commission (CCC). After three rounds of testing and a public comment period launched in July, the CCC concluded that businesses may retest and sell products, which must include modified warning labels that explain the product was previously quarantined and rested. Read morePennsylvania: The University of Pittsburgh and Parallel have announced a relationship to establish a clinical research program to study medical marijuana under Pennsylvania’s medical cannabis research program. As part of a 10-year agreement, Parallel, through Goodblend, its retail brand, will provide the university an initial $3 million in unrestricted grants to be used for the exploration of the efficacy and safety of medical cannabis with an initial focus on treating sickle cell disease symptoms. Read moreMichigan: The Marijuana Regulatory Agency is removing a requirement that businesses must hold a medical cannabis business license to apply for an adult-use permit, meaning that entrepreneurs can apply for standalone adult-use cannabis licenses starting Nov. 1. Andrew Brisbo, the agency’s executive director, told Benzinga that industry stakeholders and regulators have decided to open the market up to non-medical cannabis licensees in an effort to address social equity issues and promote the creation of equity programs. Read moreNorthern Mariana Islands: The Cannabis Commission has announced the launch of applications for both commercial cannabis licenses and the noncommercial Homegrown Marijuana Registry. The commission officially adopted the proposed rules and regulations for the program during its June 23 meeting, and began accepting the commercial and noncommercial applications on Aug. 4, which marked the official launch of the Commonwealth’s cannabis industry. Read more
PHOENIX, Ariz., August 4, 2020 -PRESS RELEASE- 4Front Ventures Corp. announced that the Massachusetts Cannabis Control Commission has granted 4Front’s Mission dispensary and cultivation/processing facilities in Georgetown, Mass., authorization to commence adult-use retail and production operations. The company will host a Grand Opening for adult-use sales on Aug. 12, 2020.
4Front also announced that its Mission dispensary and cultivation/processing facilities in Worcester, Mass., are on the CCC’s Aug. 6 agenda for final adult-use licenses. If approved, these facilities will be open for adult-use sales pending a final inspection and authorization by the Commission.
Entry into the adult-use market significantly expands 4Front’s total addressable market and is expected to drive both top-line and bottom-line growth at the company in the second half of 2020 into 2021. Massachusetts is a core growth market for 4Front, with the company also executing its fully funded expansion plans that are underway at its Georgetown production facility, which are expected to significantly increase its output from this location to meet market demand.
“Commencing adult-use licensure is a milestone for the company and we would like to thank the CCC for its support during the licensing process,” said Leo Gontmakher, CEO of 4Front Ventures. “Consistent with our company’s culture of setting operational goals and executing upon them, it’s great to see the building momentum as we announce another of what I expect to be many achievements in the back half of this year. I am proud of the hard work from each of our employees in making this happen. We can now look forward to accelerated growth in Massachusetts as our total addressable market opens-up significantly. We continue to move toward adult-use licensing at our Mission dispensary and production facilities in Worcester, Mass., which we are hopeful will occur before the end of the summer.”
]]>The Cannabis Business Association of Illinois has submitted a letter to Gov. J.B. Pritzer, urging him to use a portion of the state’s cannabis tax revenue to support social equity applicants, who have been awaiting one of Illinois’ long-delayed licenses, according to a Chicago Tribune report.
In the most recent of a series of licensing delays resulting from the COVID-19 pandemic, Illinois indefinitely postponed issuing craft grow, infuser and transporter licenses July 1, and applicants have since said they are in limbo and quickly losing money as they await their licenses, the Chicago Tribune reported.
The Cannabis Industry Association of Illinois said in its letter to Pritzker that the state’s effort to diversify the industry, which was written into Illinois’ adult-use cannabis law, is at risk as many social equity applicants run out of capital, according to the news outlet.
The association recommends in the letter that Illinois use some of its cannabis tax revenue to reimburse social equity applicants for the costs associated with the delays, the Chicago Tribune reported.
The state launched legal adult-use cannabis sales Jan. 1 and collected more than $52 million in cannabis tax revenue as of June 30.
Mission dispensary celebrated the grand reopening of its Chicago store on July 31, two months after it was ransacked by dozens of people in just one of several incidents across the country of looters targeting cannabis businesses amid countrywide protests over the police killing of George Floyd.
RELATED: UPDATED: Cannabis Businesses Targeted in Looting and Robberies
Kris Krane, president and co-founder of Mission’s parent company 4Front Ventures, told Cannabis Business Times in June that it appeared to be a planned attack, as security footage captured several cars pulling up to the store at one time. Thirty to 40 people used crowbars and baseball bats to smash windows and doors to break into the South Chicago dispensary, Krane said.
In a follow-up interview with Cannabis Business Times, Krane says there weren’t many surprises as they worked to repair damages with contractors and construction crews, replace lost inventory and reopen the medical and adult-use store. But the process took time, especially replacing custom-built components like the security doors. They also made upgrades throughout, he says, adding “multiple layers of security.”
Krane also commended city and state officials for being responsive during the inspection process, and inspectors for being clear and straightforward with recommendations.
“We work in a lot of states, and trying to go through an inspection process in many states is a challenging process,” Krane says. (Mission operates 10 stores located in Massachusetts, Michigan, Arizona, Pennsylvania and Maryland, as well as Illinois.) “It takes forever to get somebody out there, inspectors come through and can be adversarial in some cases, and getting responses from state can be challenging in some cases. But [in Chicago and Illinois,] the city and state were a pleasure to work with. Not to say they rubber stamped us, but they were really responsive and got back to us quickly.”
CHICAGO, August 6, 2020 -PRESS RELEASE- Cresco Labs, one of the largest vertically integrated multistate cannabis operators in the United States, announced today the opening of its new retail location in Schaumburg, a northwestern suburb of Chicago. The Sunnyside dispensary, Cresco’s retail chain, is the company’s ninth in Illinois.
“We are thrilled to bring the Sunnyside retail experience to the largest shopping mall in Illinois. The Woodfield Mall is home to hundreds of shops and restaurants, and in a normal year attracts more than 27 million visitors,” said Charlie Bachtell, Cresco Labs’ CEO and co-founder. “We continue to focus on building a strategic retail footprint to showcase our brands and deliver customers the Sunnyside experience. Our Illinois retail footprint compliments the 215,000 square feet of cultivation we have in the state, driving strong retail and wholesale growth.”
The new store will employ 40 people and feature nearly 20 points of sale. Sunnyside Schaumburg is over 11,500 square feet, making it Cresco’s largest dispensary in both Illinois and its nationwide retail portfolio.
Cresco has nine Sunnyside dispensaries open in Illinois: Wrigleyville Chicago, River North Chicago, Elmwood Park, Buffalo Grove, Rockford, Champaign, Danville, South Beloit and now Schaumburg. Cresco’s tenth Illinois store, located in Chicago’s central district, is expected to open by year-end.
]]>CLEVELAND, OH -- AUGUST 6, 2020 -- Cannabis Conference Virtual, produced by Cannabis Business Times, Cannabis Dispensary, and Hemp Grower magazines, will bring the industry together for a special digital event, taking place September 15, 22 and 29, 2020.
Attendees will have access to in-depth educational sessions delivered by more than 50 leading experts, a virtual expo hall with companies dedicated to the success of the industry as well as ample networking opportunities throughout the event—all from the comfort and safety of their home or office.
Cannabis Conference Virtual’s educational programming will be split into three, day-long tracks:
September 15: Launch, Expansion, Business September 22: Cultivation & HempSeptember 29: Dispensary / Deal-Making SummitThe virtual expo and networking opportunities will available on all three days of the event.
Cannabis Conference Virtual will offer nearly the entire educational program planned for its original in-person event scheduled earlier this year, as well as new sessions and speakers. “We are so pleased that we are still able to bring the high-quality education we’re known for, now in a virtual format,” said Editorial Director Noelle Skodzinski. “Our speaker line-up includes company executives and leaders, university researchers, industry consultants and others at the top of their field who are eager to share their expert insights.”
“While the coronavirus pandemic has hindered our ability to meet in-person, it’s incredibly important for us—especially as members of an essential industry—to continue to offer innovative educational and networking solutions for our audiences and partners,” said Group Publisher Jim Gilbride. “We’ve produced convenient, compelling virtual conferences long before the pandemic necessitated this format, and we are looking forward to using that experience to provide the best in cannabis education from our exceptional line-up of speakers.”
Michigan’s Marijuana Regulatory Agency is removing a requirement that businesses must hold a medical cannabis business license to apply for an adult-use permit, meaning that entrepreneurs can apply for standalone adult-use cannabis licenses starting Nov. 1, according to a Benzinga report.
The Michigan Regulation and Taxation of Marihuana Act of 2018, which legalized adult-use cannabis in the state, included provisions that barred non-medical cannabis license holders from entering the adult-use market until 2021, Benzinga reported, in an effort to give a competitive advantage to the operators who had developed the state’s medical cannabis industry.
The legislation offered the Marijuana Regulatory Agency the option to remove these provisions after one year, and Andrew Brisbo, the agency’s executive director, told Benzinga that industry stakeholders and regulators have decided to open the market up to non-medical cannabis licensees in an effort to address social equity issues and promote the creation of equity programs.
August 4, 2020 -PRESS RELEASE- The Portland Office of Community & Civic Life’s Social Equity & Educational Development (SEED) Grant Fund has announced its 2020 grant recipients. Six Portland, Ore. organizations will receive a total of $548,000 to provide economic opportunity and education to communities disproportionately impacted by cannabis prohibition. The grant is funded from a portion of Measure 26-180 which directs a 3% tax on Portland’s recreational cannabis.
"I'm really excited to be supporting the work of our grant recipients and the direct impact on the communities they serve," said Kimie Ueoka, SEED Grant Fund Coordinator. "The accountability to restorative justice built into this grant fund is a new space for government and a step in the right direction, especially now."
Collectively, the following six organizations are working to address disproportionate need-gaps for BIPOC communities across legal services, workforce development, re-entry housing, and criminal justice reform:
The 2020 grant funds will also continue to support two 2019 grantees, Constructing Hope and Green Hop.
“The SEED grant provides critical restorative justice funding to BIPOC Portlanders,” said Commissioner-in-Charge Chloe Eudaly. “I am committed to continuing significant City investments in communities that have been disproportionally harmed by our racist drug laws. Congratulations to the 2020 SEED Grant recipients! I look forward to seeing the results of your vital community-driven efforts.”
]]>ATLANTA and PITTSBURGH, Aug. 5, 2020 /PRNewswire/ -PRESS RELEASE- Today, the University of Pittsburgh and Parallel, a cannabis brand, announced a relationship to establish a clinical research program to study medical marijuana.
As part of a 10-year agreement, Parallel, through Goodblend, its retail brand, will provide the university an initial $3 million in unrestricted grants to be used for the exploration of the efficacy and safety of medical cannabis with an initial focus on treating sickle cell disease symptoms. Parallel will also dispense cutting-edge cannabis formulations to research study participants. Subsequent research will address other chronic conditions, most notably generalized anxiety disorders and chronic intractable pain.
The University of Pittsburgh School of Medicine is one of eight Pennsylvania academic research universities approved to conduct clinical research in association with the commonwealth's medical marijuana program. With Pennsylvania's approval of this medical cannabis research partnership, Parallel was also granted a license to grow and process cannabis and open up to six retail locations across the state.
"The University of Pittsburgh School of Medicine sees great value in the partnership with Parallel for the residents of the commonwealth and beyond," said Anantha Shekhar, senior vice chancellor for health sciences and the John and Gertrude Petersen Dean of the University of Pittsburgh School of Medicine. "Pennsylvania's medical marijuana law emphasizes the need for rigorous research related to the use of medical cannabis. Pitt is taking a leadership role in conducting that research and we look forward to advancing the safety and efficacy of cannabis therapies via scientific rigor. Parallel's focus on the innovation, quality, safety and consistency of its products makes them an ideal partner for Pitt's research program."
"Parallel is honored to be the medical cannabis partner of the University of Pittsburgh. Their position as one of the leading global medical research institutions will assist us in advancing our medical understanding of the benefits of cannabinoids in treating a wide spectrum of diseases and conditions," said William "Beau" Wrigley, Jr., Parallel chief executive officer. "Parallel is pioneering the development of cannabis therapies through strategic partnerships with leading institutions such as the University of Pittsburgh. We believe that research is essential to optimize the targeted benefits of cannabinoids as they hold great promise to replace pharmaceuticals for numerous conditions. We are honored to have been selected to provide the patients of Pennsylvania with our therapies to help improve their well-being."
Pitt will begin its medical marijuana research program with a clinical trial in patients who suffer from sickle cell disease (SCD). This program will be led Dr. Laura DeCastro MD, Associate Professor of Medicine and Director of Clinical Translational Research for the Sickle Cell Disease Research Center of Excellence. The trial will investigate what role cannabis can play in treating the symptoms of SCD, a red blood cell disorder characterized by anemia and pain due to the obstruction of blood vessels by rigid and adhesive red blood cells. Approximately 100,000 Americans suffer from SCD, which is associated with a median life expectancy of 45 years and which disproportionately affects African Americans. About 15% of sickle cell patients suffer chronic pain, which is typically treated with opioids. This class of drugs often fails to completely control pain and comes with serious side effects. Pain and other clinical complications are responsible for frequent hospitalizations of those with SCD and lifetime undiscounted health care costs amount to nearly $1 million per patient.
TORONTO, Aug. 05, 2020 (GLOBE NEWSWIRE) -PRESS RELEASE- WeedMD Inc., a Canadian cannabis producer and distributor, announced today it has entered into an exclusive licensing, manufacturing and distribution agreement with U.S.-based cannabis company MM Technology Holdings, LLC. MM is the owner of Mary’s Brands and the product line Mary’s Medicinals.
Under the terms of the agreement, as Mary’s sole Canadian partner WeedMD will manufacture a suite of Mary’s Medicinals’ products with its own biomass at its extraction hub CX Industries later this year. WeedMD will also market, sell and distribute Mary’s Medicinals’ products across Canada’s provincial adult-use and direct-to-consumer medical channels. Mary’s suite of cannabis products includes transdermal gels, patches and topicals.
“As we move into the next level of product development, it’s imperative that we strategically partner with established brands that share our core values and Mary's Brands offers a superior product line that is backed by a team truly dedicated to ensuring the quality, integrity and efficacy of its product offerings,” said Angelo Tsebelis, CEO of WeedMD. “We’re proud to be selected as Mary’s exclusive Canadian producer and distributor. With our cultivation platform and CX extraction operations fully ramped-up, there's the added pride of developing these renowned products in-house as we expand with new cannabis formats into a lucrative, yet underserved consumer segment.”
“We’re thrilled to be partnering with WeedMD and its CX extraction team as we execute on our long-term growth strategy to expand the Mary’s Medicinals brand into Canada,” said Jacques Panis, CEO of Mary’s Brands. “Our continued desire to innovate on additional product offerings makes this partnership fitting as we look to collaborate with a strong, experienced team that brings unparalleled expertise in cultivation and extraction along with a proven ability to capture unique, next-level distribution channels.”
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As several states see record-setting cannabis sales despite a global economic downturn, advocates and business owners are concerned that the fallout from the COVID-19 pandemic is delaying the creation of an equitable cannabis industry.
While smaller equity applicants from marginalized communities are denied access to the market, police departments and major corporations are cashing in on ancillary cannabis contracts worth multiple millions of dollars.
In Massachusetts, only three out of 70 equity, economic empowered and disadvantaged business enterprises awarded cannabis licenses have been able to open as of July. Shaleen Title, one of the state’s four Cannabis Control Commissioners with a record of fighting for inclusivity, recently told Boston Public Radio she was “embarrassed” by the state’s equity efforts. In the spring, Massachusetts was one of the only states in the country not to declare recreational cannabis essential amid the coronavirus outbreak.
Massachusetts’ statewide budget for social equity training and technical assistance is $300,000. But that figure pales in comparison to the administrative fees and private security contracts paid to police and municipalities by cannabis companies. Since 2016, cannabis company New England Treatment Access (NETA) has paid police $1.1 million in extra salary in the city of Northampton and $1.58 million in overtime officer pay in the city of Brookline.
These law enforcement contracts are in addition to the $2.6 million “impact fee” NETA has paid to the city of Northampton since opening, a 3% tax created to offset the additional liabilities that come with dispensaries, such as increased foot traffic and security needs. In Brookline, public budget documents show $435,000 of NETA’s impact fee will go to the town’s police department.
Illinois licenses on hold
In April, Illinois Gov. J. B. Pritzker announced the indefinite postponement of the next round of 75 dispensary licenses – one that was meant to prioritize equity applicants. On June 30, the state Department of Agriculture (IDOA) similarly suspended the awarding of craft grower, infuser and transporter cannabis licenses.
One Plant, a vertically integrated cannabis company based in Florida, opened its fourth location on June 26 in Port St. Lucie, north of Miami. One Plant’s goal is to have 10 dispensaries open by the end of 2020 and, beyond that, eventually 21 locations.
CEO Brady Cobb spoke with Cannabis Business Times about the state of the industry in Florida and opening a dispensary during the COVID-19 pandemic.
Owen MacMillan: Why is demand for cannabis increasing so quickly in Florida?
Brady Cobb: [This answer is] probably because I am a little bit partial, since I was born and raised here, but I have always had my eye on the potential of cannabis and what it could be in Florida. It is a solid state demographically when you look at who lives here, who is moving here. The veteran population is a big part of our business. Our only two discounts we provide are our new patient discount and our veteran discount, because any veteran I can help keep off opiates is a big win. So, we have a great veteran population, and we have a lot of people who move here that ultimately want to age here and spend a large chunk of their life here.
And, let’s be honest, these past six months have probably been some of the most stressful our society has ever seen, and people are looking at options aside from more traditional anxiety and stress relief, and cannabis is that.
OM: As the Florida market grows, how do you see One Plant fitting into it?
BC: We wanted to provide the best flower in Florida, and we wanted to provide flexibility. We are not your traditional kind of retail focus: Our big focus is on home delivery. Last July, while we were dialing in the grow, we launched [a] ... statewide home delivery network that’s all e-commerce-enabled. Customers [can] place an order online, and we are at their house the next day. Each one of our stores is a delivery hub. By the time we are finished building stores, we will have 21. That number is not picked out of thin air. Twenty-one is the number of hubs that FedEx has in the state of Florida. Our mindset is, “If they can do it, we can do it,” so our ultimate goal is to have same-day delivery statewide, and the geographic location of each store was chosen to facilitate that goal.
OM: Did that emphasis on a delivery business model help you adapt to store closures during the COVID-19 shutdowns?
BC: We actually closed our stores in March because of COVID to protect our team and patients, and we still enjoyed steady growth. We had the first curbside pickup model that launched in the state and we still have, in my opinion, the best—and [we] also just focused on home delivery. We opened the stores when the state opened back up, and about two and a half weeks ago, as cases started to increase, we closed the stores again. Having that delivery functionality was huge for us. As our competitors raced to set up delivery in the middle of a pandemic, we have had six months to dial it in.
