MjLink Cannabis Business News and Press

The New York Office of Cannabis Management (OCM) provided guidance Dec. 9 for adult-use cannabis retail licensees interested in making delivery sales but the rules for securing brick-and-mortar locations have changed. (The delivery guidelines are listed below.)

While OCM’s Cannabis Control Board approved the state’s first 36 Conditional Adult-Use Retail Dispensary (CAURD) provisional licenses last month, aspiring market entrants have yet to receive the turnkey locations they were promised for their businesses.

OCM regulators plan to issue up to 175 total retail licenses—150 for individuals impacted by prohibition and 25 for nonprofits whose services include support for the formerly incarcerated—and state officials from the Dormitory Authority of the State of New York (DASNY) were tasked with providing fully furnished dispensaries for the 150 individuals.

RELATED: What To Expect With New York's First 175 Adult-Use Dispensaries

Now, instead of requiring retail licensees to rely on DASNY for their locations, OCM officials took a U-turn on Dec. 9 in announcing they are allowing CAURD licensees to find and secure their own retail locations ahead of the state’s sales launch.

“[CAURD licensees] can submit for approval their own proposed location for their retail store and may still qualify for financial support for renovations from the Social Equity Cannabis Investment Fund operated by [DASNY],” the office’s release read. “DASNY will continue the work of securing retail locations and locations will be matched with licensees as they become available.”

Medical cannabis legalization could become a reality in Kansas in 2023.

Sen. Rob Olson, R-Olathe, who chairs the 2022 Special Committee on Medical Marijuana, said during a committee meeting Dec. 9 that he plans to introduce medical cannabis legislation in the Senate at the start of the 2023 legislative session.

The committee has been conducting a series of meetings over the past several months to discuss drafting a medical cannabis legalization bill for 2023 and discuss what they can improve upon from this year’s failed legislation.

There were several efforts to legalize medical cannabis in Kansas during this year’s legislative session that failed, including a medical cannabis proposal that stalled in the Senate in May, a House-passed bill that never gained traction in the Senate, and a Senate bill introduced by Sen. Olson in March, Cannabis Business Times reported.

Lawmakers held two hearings in October—one to hear testimony from law enforcement, state agencies, and local governments, and another to hear public testimony on the issue, CBT reported.

During the most recent meeting Dec. 9, lawmakers discussed research on social equity, packaging and labeling, purchasing limits, local taxation and more, the Kansas Reflector reported.

Guam’s Cannabis Control Board has given the green light to 11 “responsible officials,” or government-approved business leaders that must be in place before a company receives an adult-use license, as officials await applications for cannabis business licenses.

Most recently, the board approved Trisha Blas, a responsible official for an aspiring cannabis manufacturing facility called Guahannabis LLC, and Eugene Arriola, a responsible official for a planned cultivation operation called The Heights Farm, according to the Pacific Daily News.

Nine responsible officials were previously approved and have been informed of the next steps to apply for a cannabis establishment licenses, the news outlet reported, although no one has yet applied for a license.

“They have it, they’re working on their packet, but none of them actually submitted to the office for review or consideration at this time,” Craig Camacho, compliance supervisor with the Guam Department of Revenue and Taxation, told the Pacific Daily News.

Guam legalized adult-use cannabis in 2019 and adopted regulations for the industry in May 2022. Under the regulatory framework, adults can legally grow, possess and consume cannabis, but it remains illegal to sell cannabis until the commercial market launches.

APOPKA, Florida., Dec. 12, 2022 - PRESS RELEASE - Sanctuary Cannabis is thrilled to announce the opening of Sanctuary Miami, its southernmost location to date, and the company's sixteenth dispensary in the state of Florida. 

"It's been a fantastic year for us in terms of opening new locations here in Florida, but we've all been really eager to see the Miami location open its doors," said Jason Sidman, CEO of Sanctuary Cannabis. "To have a location in Florida's most iconic city is undoubtedly thanks to tireless work of all our teams, and we're excited to begin serving patients in the area."

Located to the southwest of downtown Miami, Sanctuary Miami is located on SW 124th St. and just south of the Colonial Palms Plaza. The dispensary sits at the crossroads of the Pinecrest and Kendall neighborhoods and is just five miles south of the University of Miami campus.

"We want to close the year on the same strong note with which we started it, and opening a flagship location in Miami is a great way to do it," said Bill Dewar, chief operating officer of Sanctuary Cannabis. "We're eager to introduce ourselves to the Miami patient community and look forward to serving them with our ever-expanding selection of products and services."

CLACKAMAS, Ore., Dec. 12, 2022 /PRNewswire/ -- PRESS RELEASE -- Today, Wyld, one of the top five cannabis brands in the U.S., expanded its best-selling product offerings into Illinois. Illinois joins Arizona, California, Colorado, Michigan, Nevada, Oklahoma, Oregon, Washington and Canada in offering Wyld products.

Wyld offers an expansive array of products made with real fruit flavors, high-quality ingredients and consistent dosing. Constructed using quality control processes and a high manufacturing standard, all Wyld products are designed to provide a premium cannabis experience that consumers can count on. In the state of Illinois, recreational consumers can explore Wyld's lineup of Sativa-, Indica- and Hybrid-enhanced gummies in the following flavors: elderberry, huckleberry, marionberry, peach, pear, pomegranate, raspberry, sour apple, sour cherry and strawberry.

"As we continue to introduce more people to Wyld, we're committed to putting the same level of care and attention into each gummy as we did on day one," said Aaron Morris, CEO of Wyld. "Now in Illinois, we're excited to welcome another region into the Wyld family and bring our portfolio of real fruit flavors to the cannabis consumers of this state."

In addition to Wyld's commitment to producing quality gummies, the company is dedicated to creating a more sustainable environment for both people and the planet. Wyld is Climate Neutral Certified and works with local and national partners, including NuProject, OneTreePlanted, and others, to support and uplift their work. Wyld plans to roll out fully compostable packaging in 2023. In addition, the company aims to transition to 100% plastic-free packaging in all markets by 2024.

The company's expansion into Illinois follows its launch in Oklahoma in September servicing medical patients. Additionally, earlier in 2022, Wyld launched its line of sour gummies in Oregon, California, Colorado, Nevada, Arizona, Michigan and Washington. For more information regarding Wyld's product offerings, availability and sustainability initiatives, please visit www.wyldcanna.com/.

Curaleaf’s refusal to recognize and bargain with unionized cannabis workers in Chicago was ruled unlawful by the National Labor Relations Board (NLRB) on Dec. 5.

When Cannabis Business Times reached out to Curaleaf’s corporate communications department, a spokesperson said the company “won’t be commenting.”

The case stems from March 31, 2021, when election results revealed workers at Wind City Cannabis on Weed Street in Chicago voted, 11-10, to join the United Food and Commercial Workers (UFCW) Local 881 union. The dispensary on Weed Street is one of 10 Illinois retail locations owned by Massachusetts-based Curaleaf.

In April 2021, Curaleaf’s legal counsel submitted five objections to the election results, including the claim that delays in the U.S. Postal Service caused voter disenfranchisement for the mail-in election. While there were “approximately” 29 eligible voters, according to NLBR’s ballot tally, only 21 valid ballots were counted. Zero ballots were challenged.

Election Tally by Tony Lange on Scribd

According to Curaleaf’s legal counsel, “at least one voter had returned a ballot, but it had not been received by the [NLRB Region 13] as of the ballot count on March 31.”

Cannabis possession is legal in Missouri as of Dec. 8 after voters approved an adult-use legalization measure in the November election.

Adults 21 and older can now legally possess and use cannabis in the state, but commercial sales have yet to launch.

The Missouri Department of Health and Senior Services (DHSS) began accepting requests Dec. 8 from state-licensed medical cannabis facilities looking to transition their operations to serve the expanded adult-use market, according to a timeline from the department.

Applications for personal cultivation will be available Jan. 7, and adult-use program rules are to be finalized by Feb. 6.

Adult-use cannabis may be available in dispensaries in February, according to the timeline, and the state will begin accepting personal cultivation licenses that month, as well.

SMITHS FALLS, Ontario, Dec. 9, 2022 – PRESS RELEASE – Canopy Growth Corporation announced that CEO David Klein and other Canopy Growth team members will ring the Nasdaq opening bell on Monday, Dec. 12, 2022.

“We are proud to be a Nasdaq-listed company, and our team is honored to be ringing the opening bell,” Klein said. “This is an exciting time for Canopy Growth as we take important steps to realize our goal of building a leading North American cannabis company. We appreciate the continued support of all of our stakeholders as we take ambitious strides towards unleashing the power of cannabis.”

The opening bell ceremony will be broadcast live starting at 9:15 a.m. Eastern Time from the Nasdaq MarketSite Tower in New York City. To view the broadcast, visit: https://www.nasdaq.com/marketsite/bell-ringing-ceremony.

***

The bell ringing will come roughly seven weeks after Canopy Growth officials announced on Oct. 25 that the company is accelerating plans to enter the U.S. market via three acquisitions with the creation of a U.S.-domiciled holding company, Canopy USA LLC, for its U.S. cannabis investments.

HED: Canopy Growth to Acquire Acreage, Wana, Jetty in US Entrance

Saskatchewan officials announced Dec. 6 that lawmakers have introduced legislation aimed at increasing First Nations self-governance, including a bill that would allow First Nations communities to regulate cannabis on reserve.

One bill, the Summary Offences Procedure Amendment Act, 2022, would create a legal framework for First Nations communities to enforce laws and bylaws.

“The Government of Saskatchewan is proud to take this important step as part of our ongoing work with the Muskoday and Whitecap Dakota First Nations,” Justice Minister and Attorney General Bronwyn Eyre said in a public statement. “These amendments will allow these and other First Nations communities in the future to use the more simplified summary offenses procedure, instead of the long-form process under the federal Criminal Code, to issue tickets and fines such as those issued for traffic violations and other provincial offenses.”

Prior to the bill’s introduction, Saskatchewan’s government signed a Memorandum of Understanding in October with Muskoday First Nation and Whitecap Dakota First Nation to address long-established issues around how First Nations laws are enforced.

“First Nations assert their jurisdiction and maintain community safety by creating laws under the Indian Act, land codes, and other federal legislation but there have been difficulties in enforcing these laws in the courts,” Chief of Whitecap Dakota First Nation Darcy Bear said in a public statement. “Through our work with the provincial government, the amendments to [the Summary Offences Procedure Act] (SOPA) will give us access to prosecution and enforcement tool that will give force to our laws in areas such as environmental protection and community safety; and strengthen the place of our laws alongside federal and provincial law.”

Connecticut won’t roll out its adult-use cannabis retail program before the end of the year, as originally planned, but a launch date has been announced.

The state’s Department of Consumer Protection (DCP) notified nine licensed hybrid (adult-use and medical) retailers on Dec. 9 that they can begin selling adult-use cannabis products to those 21 and older beginning at 10 a.m. on Jan. 10, 2023. Transactions will initially be limited to 7 grams of cannabis flower or an equivalent amount (see details below).

The announcement came as the department is required by law to provide a 30-day notice for the commercial sales commencement.

“I am proud of the hard work our team has done to meet the goal of opening adult-use sales in a safe, well-regulated market,” DCP Commissioner Michelle Seagull said in a press release. “We know that many people are excited to participate in this marketplace, whether as a business or a consumer, and we encourage adults who choose to purchase and consume these products to do so responsibly once sales begin on January 10.”

The announcement comes as 21 states have legalized adult-use cannabis—with Maryland and Missouri voters passing ballot measures in November—with 16 of those states having launched their expanded retail programs already. New York, where regulators hope to roll out adult-use sales before the end of the year, and Connecticut are in line to be the 17th and 18th states to launch adult-use sales.

Connecticut’s retail rollout has been roughly 18 months in the making since Gov. Ned Lamont signed adult-use cannabis legislation in June 2021, becoming the fourth state (in addition to New York, Virginia and New Mexico) to end prohibition through the legislative process that year. The signed law allows adults 21 and older to possess up to 1.5 ounces of cannabis flower or an equivalent amount in public, and up to 5 ounces in their homes.

The Ohio Medical Marijuana Control Program (MMCP) issued a voluntary product recall Dec. 6 for medical cannabis that did not pass all required testing.

The affected plant material was produced and sold to dispensaries by Green Investment Partners (GIP), who initiated the recall and reported to MMCP that certain batches of cannabis did not pass all state-mandated testing for yeast and mold before they were distributed for sale to patients.

The MMCP has launched an investigation and will issue an executive summary when the investigation concludes.

The affected plant material, intended for vaporization, was sold under the product name Tangie Power from Nov. 29 to present. The affected product IDs and batch numbers, as well as the dispensaries where they were sold, are as follows:

Product ID:

The New Mexico Department of Health (NMDOH) announced Wednesday that it is updating its online patient portal to allow medical cannabis patients to access their Patient Identification cards electronically.

The NMDOH updated its patient portal to streamline the application process, provide better assistance for new and returning patients, reduce the use of paper, and be more environmentally friendly, according to a press release.

RELATED: New Mexico Adds Anxiety Disorder as Qualifying Condition for Medical Cannabis

Patients using the portal will have a "shorter processing time and the added convenience of not needing to wait for a printed card to arrive in the mail,” NMDOH wrote in the release.

The state’s Medical Cannabis Program can also send messages to patients directly through the portal to help improve communication and service.

TALLAHASSEE, Florida, Dec. 8, 2022 - PRESS RELEASE - Trulieve Cannabis Corp., a multistate cannabis company in the United States, announced the official launch of Khalifa Kush premium medical cannabis products statewide in all Trulieve Branded Pennsylvania retail locations starting Dec. 12. This is an exclusive partnership with multi-platinum selling, GRAMMY and Golden Globe Award-nominated recording artist Wiz Khalifa.

To celebrate the product launch on 12/12, a date designated as "Wiz Khalifa Day" by the Pittsburgh City Council, Wiz Khalifa will be on-site at the Trulieve Pittsburgh-Squirrel Hill and Trulieve Washington locations to meet with medical cannabis patients.

Trulieve will also be hosting pop-up events on 12/12 from 12 p.m. to 6 p.m., where customers will have a chance to receive Khalifa Kush branded swag and educational materials at the following dispensaries:

"It's super cool to be able to sell KK legally in Pittsburgh and because they know it's Wiz's, it's going to be bomb, of course it's gonna drive the city and the state crazy," said Wiz Khalifa. "Trulieve is the perfect partner for us because of its commitment to providing the highest quality products and best possible patient experiences." 

Khalifa Kush products are also available in Trulieve-owned and operated locations in Florida and Arizona and will soon be available in Maryland.

"Trulieve is excited to expand our partnership with the iconic Wiz Khalifa as an exclusive partner to curate and promote his unique product line exclusively in his home state of Pennsylvania," said Kim Rivers, CEO of Trulieve. "As an artist, he has such a strong vision of how he wants to express himself. Together, we've created a line of products that offer best-in-class medical marijuana to Pennsylvania patients and represent the passion and creativity for which Wiz Khalifa is known."

In a new report, Whitney Economics assesses that the total output of cannabis cultivated in the U.S. exceeds 48.8 million pounds.

The figure from the 2022 U.S. Cannabis Supply Report includes cannabis in both the legal and illicit markets and covers all product types, such as flower, concentrates and edibles.

Beau Whitney, founder and chief economist at Whitney Economics, said total supply is up slightly from 2021. This year’s supply pretty closely matches  the demand, he said.

Some cultivators in Northern California and Southern Oregon have bumper crops and cultivate more, Whitney said, adding, “But generally, the common practice is if they excess inventory one year, then they don't plant as much the next year. This has been confirmed by my interviews in the legacy fields as well as my interviews with state regulators in multiple states.”

Whitney Economics projects total legal cannabis sales to be $29.3 billion in 2022 and tick up to $81.6 billion by 2030. The firm also forecasts that legal supply will surpass illicit supply beginning in 2026.

RELATED: These 8 States Sold $12.8 Billion of Adult-Use Cannabis in 2021

SANTA CRUZ, Calif., Dec. 8, 2022 - PRESS RELEASE - SC Labs, a cannabis and hemp testing company, announced its plans to expand into Southern California–beginning with a new lab opening in Los Angeles.

The new, 12,000+ square foot facility, located in the Van Nuys neighborhood of Los Angeles, will conduct both R&D and compliance cannabis testing–similar to its Santa Cruz counterpart–providing faster turnaround times to process samples for customers south of Santa Barbara. The new lab will offer the full suite of California compliance testing (potency, pesticides, heavy metals, residual solvents, microbials, water activity, filth and foreign material) as well as terpene and shelf stability testing. By opening this new state-of-the-art lab, SC Labs will deliver added testing capacity and more resources for research and development.

Similar to SC's operations in Santa Cruz, the new lab will maintain the same technology stack (Laboratory Information Systems and the SC Client Services Portal) and chemometric reporting for customers conducting both Cannabinoid and Terpenoid assays. The L.A. facility will also provide stability testing to determine shelf life in February 2023.

"We are thrilled to bring more high-quality testing to a wider swath of the Golden State," said Jeff Journey, CEO of SC Labs. "With this expansion, we are doubling down on California as a leading market that we believe has the regulatory oversight to enforce proper testing requirements. We're excited to get to work in Southern California, supporting even more customers with the high-quality, accurate testing they need as this market continues to mature and grow."

"Our customers have been asking us to open a Southern California lab for years, and we're excited to finally deliver on that ask," added Jeff Gray, co-founder and chief innovation officer of SC Labs. "This new state of the art lab more than doubles our California testing capacity, enabling us to do more R&D, and more importantly, provides ample and excess testing capacity for all of our customers."

Combined U.S. medical and recreational cannabis sales are estimated to be upwards of $52.6 billion by 2026–and California is currently the largest legal cannabis market in the world. In regulated cannabis markets like California, products for sale are required to undergo a series of tests by a state-accredited lab to help ensure that products are safe to consume and accurately labeled. SC Labs is allowing its customers to meet those requirements and ultimately help them meet the demand in the market.

Russia has freed WNBA player Brittney Griner, who was sentenced to 9 years in prison on cannabis possession charges, as part of a prisoner exchange in which the U.S. released Russian arms dealer Viktor Bout.

“She’s safe, she’s on a plane, she’s on her way home,” President Joe Biden said Dec. 8 in a statement from the White House, according to the Associated Press.

The Russian Foreign Ministry also confirmed the exchange, the news outlet reported, saying in a statement Thursday that the swap occurred in Abu-Dhabi and that Bout has been flown home.

Bout, a former Soviet Army lieutenant colonel, was serving a 25-year sentence on charges that he conspired to sell tens of millions of dollars’ worth of weapons that U.S. officials said were intended for use against Americans, AP reported.

Griner was taken into custody by Russian authorities in February for allegedly carrying cannabis vape cartridges in her luggage at the Sheremetyevo International Airport, just north of Moscow.

Viola is adding edibles to its product lineup.

The Michigan-based operator is partnering with Puff Cannabis for the launch of its gummy edibles, with an in-store release event at Puff’s Madison Heights, Mich., location on Dec. 16. The edibles will also be available at Puff’s Hamtramck and Utica locations.

Beyond Michigan, Viola plans to expand its edibles offerings to Arizona, California, and Colorado in early 2023.

The edibles will be available in four different flavors—Auntie’s Punch, Big Apple Dreamin, Paradise Island, and Uptown Espresso—all of which were inspired by Viola Owner Al Harrington’s grandmother, the company’s namesake.

RELATED: Viola Spreads The Wealth

“We’ve been working strategically to shift our product offering to convenience items to fit the lifestyles of our consumers,” said Najee Tyler, director of marketing at Viola. “With the massive growth of the edibles industry and gummies leading the way, we wanted to offer the Viola community something they’ve been asking for for a while. We’re excited to finally be able to provide premium products everyone can enjoy.”

No matter the exact cause, from post-COVID economic volatility to the marked financial doldrums of cannabis stocks, there are signs support for the “legacy farmer” is on an upswing.

Legacy farmers are proving to be an enduring competition for the regulated and certified market. According to the 2021 International Cannabis Policy Study, about 43% of all American cannabis sales still go to the illicit market, although this figure varies greatly by state. Calculations based on total consumption and legal sales suggest that between 60% and 75% of the sales in California, for example, are not coming from the regulated legal sector of the industry but, rather, legacy farmers supplying the illicit market.

Outside of North America, this is also a regular discussion as reform goes global.

Who Are Legacy Farmers?

Within the context of the U.S., this term generally refers to those who have grown cannabis for several decades, often since the change in California state law to allow medical use.

Overseas, in Europe, Africa and Asia, the definitions and specifics differ by country and context, but generally end up meaning the same thing. Namely the term refers to a small, non-corporate, often family-run farming operation that has been passed down through generations even if not specifically focused on cannabis historically.

For this reason, it is interesting to understand how this movement is expanding internationally.

A group of four cannabis business entities and three individual owners in Southern California were issued $128 million in civil penalties Dec. 5 after admitting to illicit operations in court, according to a summary judgement ruling.

The ruling by Judge Stephen Pfahler in the Superior Court of California, County of Los Angeles, stems from 2019 and 2020 investigations conducted by state authorities in Canoga Park, Calif. The defendants admitted to engaging in unlicensed commercial manufacturing and distributor cannabis activity on 527 separate days, according to the court ruling.

Specifically, the investigations revealed that the unlicensed activity was tied to Vertical Bliss Inc., one of the four named entities, which had held licenses for commercial cannabis manufacturing and distribution in the state at that time, according to the California Department of Cannabis Control (DCC).

State authorities from DCC’s predecessors—the DCC was formed in July 2021 by consolidating three former agencies—revoked Vertical Bliss’ licenses “swiftly” following investigations in November 2019. At the time, the state’s Bureau of Cannabis Control and Department of Public Health (CDPH) announced a search of the unlicensed location in Canoga Park resulted in seizure of $21 million in illicit products, including 7,200 vape cartridges.

In September 2020, the Bureau and CDPH filed a complaint seeking civil penalties from Vertical Bliss. With that filing, the state regulatory bodies also announced that seized records allegedly documented Vertical Bliss’ production of more than 3.3 million Kushy Punch Inc. brand gummies during an 18-month period, with an estimated value of $64 million.

RELATED: California Dispensary Pulls Kushy Punch Products From Shelves

Vertically integrated multistate operator Ayr Wellness announced its intention to donate $100,000 to restorative justice initiatives as part of its second annual “12 Days of Giving” holiday donation campaign.

Ayr is donating $1.12 of every transaction made at its retail locations between Dec. 5 and Dec. 16 to Freedom Grow, a nonprofit organization dedicated to supporting prisoners with cannabis-related charges and their families through its “The Wish Program;” and to the Minorities for Medical Marijuana Project Clean Slate initiative, a program that provides record expungement to adults with select cannabis-related charges, according to a press release.

The company’s goal is to hit $100,000 in donations, according to the release.

“This marks Ayr’s second year of the program, which is poised to directly benefit the families of those who have been incarcerated for cannabis offenses,” said David Goubert, Ayr president. “We hope that this initiative will inspire an ecosystem of giving for our customers and employees, ultimately benefitting those negatively impacted by the War on Drugs, a core focus of our Changing Legacies pillar.”

Khari Edwards, head of corporate social responsibility at Ayr, said the company’s partnership with Freedom Grow allows them to “brighten up the holiday season for those who are often overlooked in discussions about the harmful effects of prohibition–the families and children of offenders, many of whom have to scramble to make ends meet while their loved one is away.

“Combining this with our support of Minorities for Medical Marijuana’s Project Clean Slate, which provides expungement and wrap-around services across the country, allows us to take a more holistic approach to advocacy this holiday season."