MjLink Cannabis Business News and Press

Charlotte’s Web, a producer and distributor of hemp-derived CBD products, made history on Oct. 12 when it became the official CBD of Major League Baseball (MLB), establishing the first-ever partnership between a cannabis/hemp brand and a professional sports league.

Through the partnership, Charlotte’s Web products are now available to MLB players to support recovery, focus, and sleep cycles, with the first product available being its Daily Edge tincture. The company’s Daily Edge tincture falls under its SPORT line and will include MLB’s logo on its bottle.

All Charlotte’s Web products underwent specific testing to meet MLB scientific and no-banned substances standards, and were Certified for Sport by NSF, a third-party, independent auditor of safety and quality standards, becoming the first broad-spectrum, hemp-derived tincture to earn that distinction.

What’s more, the partnership between Charlotte’s Web and MLB continues to normalize cannabis and/or hemp in U.S. culture, and forges a new path forward for cannabis companies looking to expand their brand presence and audience among a larger population segment.

Jared Stanley, co-founder and chief operating officer for Charlotte’s Web, says the company’s partnership with MLB gives it a “megaphone we can use to educate people on what CBD is and what it does.”

Stanley joined Cannabis Business Times to discuss the company’s precedent-setting partnership with MLB, how it all came together, and the opportunities ahead for Charlotte’s Web.

A new poll shows that the majority of Americans support cannabis legalization as voters in two states, Maryland and Missouri, became the latest to approve adult-use legalization measures in the Nov. 8 election.

RELATED: US Support for Cannabis Legalization Remains at Record 68%

Results of a Pew Research Center survey conducted Oct. 10-16, 2022, revealed that 88% of U.S. adults believe cannabis should be legal in some form. Fifty-nine percent said that medical and adult-use cannabis should be legal, while 30% said cannabis should be legalized for medical purposes only.

Just 10% percent of respondents said cannabis use should not be legal.

Pew Research Center reported ongoing age and partisan differences in Americans’ views on cannabis legalization. Older adults are less likely to favor adult-use legalization than younger generations, for example; only 30% respondents ages 75 and older believe cannabis should be legal for both medical and adult use, while 53% of those ages 65 to 74 said it should be legal for both purposes.

NEW YORK, Nov. 22, 2022 – PRESS RELEASE– Ascend Wellness Holdings Inc., a multistate,vertically integrated cannabis operator, announced that it filed a registrationstatement on Form S-3 containing a base shelf prospectus with the UnitedStates Securities and Exchange Commission (SEC) on Nov.22, 2022. The registration statement is expected to become effectivefollowing review by the SEC. A corresponding preliminary base shelfprospectus (the "Canadian prospectus") has been filed with thesecurities regulatory authorities in each of the provinces of Canada,excluding Québec,under the U.S.-Canada multijurisdictionaldisclosure system (MJDS).

The registrationstatement (when effective) and Canadian prospectus (upon the issuance of areceipt for the final Canadian prospectus) will qualify the distribution fromtreasury of up to an aggregate amount of $100,000,000 worthof shares of Class A common stock, preferred stock, warrants, debt securities,subscription rights and/or units of the company (collectively, the "securities"),or any combination, over the period(s) that each of the registration statementand Canadian prospectus remain effective, respectively.

"While we do not haveimmediate plans to issue securities under the registration statement or theCanadian prospectus, we deemed it prudent to prepare ourselves to take advantageof markets should they evolve into a more accretive financingalternative," said Dan Neville,interim co-CEO and chief financial officer. "This filing allows us theflexibility to pursue additional financing opportunities should they become inthe best interest of our shareholders."

The company became eligible tofile a registration statement on Form S-3 after one year of SEC reporting,following the effectiveness of its previously filed registration statement onForm S-1. The terms of any securities to be offered under the base prospectuswill be specified in a prospectus supplement, which will be filed with theapplicable U.S. andCanadian securities regulatory authorities in connection with any suchoffering. 

The registration statement hasbeen filed with the SEC butis not yet effective. The securities may not be sold nor may offers to buy beaccepted under the registration statement prior to the time the registration statementbecomes effective or under the Canadian prospectus prior to the issuance of areceipt for the final Canadian prospectus. This press release shall notconstitute an offer to sell nor the solicitation of an offer to buy the securities,nor shall there be any sale of such securities in any jurisdiction in whichsuch offer, solicitation or sale would be unlawful prior to registration orqualification under the securities laws of any such jurisdiction. Any offer of securitieswill occur solely by means of the base shelf prospectus included in the registrationstatement and/or the Canadian prospectus and one or more prospectus supplementsthat would be issued at the time of any such offering.

A copy of the registration statementcan be found on EDGAR at www.sec.gov anda copy of the Canadian prospectus can be found under the company's SEDARprofile at www.sedar.com.

DENVER, Colo., Nov. 23, 2022 /CNW/ - PRESS RELEASE - Schwazze, a vertically integrated, multi-state operating cannabis company with assets in Colorado and New Mexico, announces the grand opening of its adult-use dispensary, R.Greenleaf, located in Sunland Park, N.M. The new store, located at 1541 Appaloosa Drive in Sunland Park, officially opened its doors for business on Nov. 22. Thanksgiving Day the store will be open from 10 a.m. to 4 p.m. Regular store operating hours are 8 a.m. to 10 p.m. Monday through Saturday; 8 a.m. to 8 p.m. on Sunday.

The Sunland Park store opening continues the intentional expansion throughout the state of New Mexico and comes on the heels of the store openings in Ruidoso and Clovis within the last 60 days. This brings R.Greenleaf's number of New Mexico retail dispensaries to a total of 13. All locations serve the needs of medical patients as well as recreational adult-use consumers.

"This week in particular, Schwazze gives tremendous thanks to be contributing to the Sunland Park community and to serve its residents. We are very grateful to add our third R.Greenleaf retail dispensary in New Mexico within the last two months and since adult recreational cannabis was legalized in New Mexico on April 1st," said Steve Pear, New Mexico Division President for Schwazze. "R.Greenleaf offers a wide variety of quality products serviced by top-notch, knowledgeable staff."

Grand opening product specials and promotions are already in full swing with multiple flower pack offers, pre-rolls, gummies, chocolates, and distillate vaporizer cartridges. Introductory pricing will be offered through November 30th to provide patients and recreational customers special savings on a variety of product forms based on individual needs and preferences.

A grand opening celebration will be held today, Wednesday, Nov. 23, beginning at 12 noon and running until 6 p.m. Swag bags will be available to the first 50 shoppers featuring a water bottle, rolling papers and other R.Greenleaf gear, with one lucky customer receiving a 50% discount coupon. DJ Sonya G will be on site during the event to provide tunes for all in attendance, and the Sunland Park BBQ Company will provide free food for the first 50 customers making a purchase.

While Connecticut adult-use sales were anticipated to launch by the end of this year, that start date may be pushed back to early 2023.

The Department of Consumer Protection (DCP) announced Nov. 22 that the fourth remaining medical cannabis producer—Theraplant—applied Nov. 10 to convert its facility to grow adult-use and medical cannabis, and the application is still under review by the DCP.

While adult-use sales were expected to begin by the end of this year, the law in Connecticut requires at least 250,000 square feet of growing and manufacturing space to be approved for adult-use production before sales can begin. Therefore, the start of adult-use sales relies on all four existing medical cannabis producers completing the conversion process to operate within the adult-use and medical markets.

The other three producers—Advanced Grow Labs LLC, Connecticut Pharmaceutical Solutions LLC, and Curaleaf LLC—have already completed the steps to serve the adult-use and medical markets. Now, the market waits for the DCP to approve Theraplant’s application.

The DCP also announced that seven existing medical cannabis dispensaries have already received approval to sell adult-use cannabis.

Those dispensaries are as follows:

Ascend Wellness Holdings’ executive reshuffling continued Nov. 23 with the exit of one board member and the naming of two board members amidst the multistate cannabis operator’s ongoing leadership transition.

Emily Paxhia, who co-founded Poseidon Asset Management with sibling Morgan Paxhia in 2013, submitted her resignation from the board, effective Nov. 23. According to an Ascend press release, her resignation was not a result of any disagreement with the company’s operations, policies or practices.

“On behalf of the board and everyone at AWH, we would like to thank Emily for her contributions and dedication during her tenure here,” Executive Chairman Abner Kurtin said in the release. “Emily was one of our earlier investors and has supported Ascend from the beginning. We wish her the very best in her continued leadership in the industry.”

Also effective Nov. 23, Ascend appointed interim co-CEO and Chief Financial Officer Dan Neville and Joshua Gold (independent) to the company’s board of directors.

Neville, who has been with the company since March 2019, was named a co-CEO with president and co-founder Frank Perullo on Sept. 28, when Ascend first announced its leadership transition plan as founder and former CEO Kurtin awaited his arraignment hearing after a domestic battery charge earlier that month.

RELATED: Ascend Shuffles Leadership Team After CEO’s Domestic Charge

While 2022 has been a challenging year for the cannabis industry, one company has grown exponentially despite market challenges.

Founded in 2009 and headquartered in Alberta, Canada, High Tide operates as a retail-focused cannabis company with brick-and-mortar and global e-commerce assets.

The company is a lead player in the Canadian cannabis retail market through its flagship retail brand, Canna Cabana—which has 141 locations across Ontario, Alberta, British Columbia, Manitoba and Saskatchewan. High Tide also serves the U.S. and Europe through consumption accessories and CBD-focused e-commerce platforms.

High Tide has become known for its discount club retail model at its Canna Cabana locations, modeled after Costco’s membership-based program. Some have even deemed the company the “Costco of Cannabis.”

High Tide’s differentiated retail approach has contributed to its success. In the third quarter of 2022, High Tide’s revenue increased to $95.4 million—up 98% compared to quarter three last year ($48.1 million).

So, how has the company continued to position itself as a leader in the Canadian cannabis retail space using its differentiated discount club approach?

AUSTIN, Texas, Nov. 22, 2022 – PRESS RELEASE - Libra Design, LLC announced its collaboration with VoltServer to optimize horticulture lighting solutions for Digital Electricity, starting with the Libra Mid-Flux (MF) and High-Flux (HF) LED Modules for controlled environment agriculture (CEA). By combining lighting solutions from Libra with a fault-managed power distribution platform from VoltServer, vertical farm and greenhouse companies can build, operate, and manage their gardens efficiently, safely, intelligently, and ultimately with a lower lighting cost compared to conventional AC-powered lighting fixtures. 

“At its core, our collaboration with VoltServer reflects Libra Design’s mission to advance CEA by removing the cost barrier to building and operating a profitable, efficient and highly productive indoor and greenhouse farm,” said Travis Williams, co-founder and CEO of Libra Design. “Libra LED solutions powered by Digital Electricity create an optimal growing environment with the safety, reliability, control and ease of installation necessary to succeed in today’s commercial agriculture industry.” 

According to VoltServer, Digital Electricity reduces the cost of distributing power and control to horticulture lighting systems by 20% to 40%, while improving safety, energy management, and control density. Digital Electricity is listed to UL/IEC 62368-1 as a Limited Power Source developed with safety at the forefront based on a patented Packet Energy Transfer protocol. The protocol distributes power via discrete energy packets with 500 safety checks per second. By preventing the safety hazards associated with conventional AC/DC electricity, such as electric shock and fire, Digital Electricity can be installed with un-certified labor using the same wiring practices as Ethernet including flexible cable and wire trays while omitting conduit, circuit breakers and other costly and time-consuming infrastructure. 

“Digital technology continues to proliferate every aspect of society, yet we still rely on antiquated power distribution platforms which waste time, energy and money. These are precious resources we cannot afford to waste, especially when it comes to agriculture,” said James Eaves, Ph.D., director of indoor agriculture at VoltServer. “With a Libra Design lighting solution powered by Digital Electricity, growers can save millions of dollars in capital expenses and months of construction time while simultaneously making their facility safer, smarter and uniquely suited for their needs.”

Libra worked closely with VoltServer to develop horticulture lighting systems specifically optimized for Digital Electricity. The result is a driverless LED system capable of delivering optimal light intensity and uniformity while being powered remotely by the VoltServer ETX8 transmitter. Lighting control is also delivered via the platform, providing growers and operators the insight and control needed to manage and monitor their lighting systems and power usage without the requirement of additional control cables or systems. With a remote power system, growers also reduce the heat load inside the growing environment and save precious space resulting in increased canopy density and airflow in vertical farms and reduced shading in greenhouses. Libra horticulture lighting solutions powered by Digital Electricity start at $0.16/PPF with a 1,000-unit minimum order quantity (MOQ). All Libra systems have a photosynthetic photon efficacy (PPE) of 2.7 µmol/J or greater and are customized based on the unique cultivation, operations, and business goals of each client.

The U.S. Food and Drug Administration (FDA) has issued its latest batch of warning letters to five companies that the agency claims are illegally selling CBD food and beverage products.

The FDA issued the warning letters to 11-11-11 Brands, Naturally Infused LLC, Newhere Inc dba CBDFX, Infusionz LLC and CBD American Shaman LLC, according to the agency’s Nov. 21 news release.

“These companies are selling CBD-containing products that people may confuse for traditional foods or beverages, which may result in unintentional consumption or overconsumption of CBD,” FDA officials said in the release. “CBD-containing products in forms that are appealing to children, such as gummies, hard candies and cookies, are especially concerning.”

The five warning letters, dated Nov. 16, also outline violations related to the Federal Food, Drug, and Cosmetic (FD&C) Act, according to the release. These violations include the sale of unapproved CBD products that claim to cure, mitigate, treat or prevent diseases, as well as adding CBD to animal foods.

Officials said in the release that CBD raises safety concerns, particularly with long-term use.

Following through on a quick legalization-to-sale turnaround, Rhode Island will commence its commercial adult-use cannabis retail program Dec. 1, Gov. Dan McKee and the state’s Office of Cannabis Regulation (OCR) announced Tuesday.

The expanded program will launch with five existing medical operators, called compassion centers in the state, that have received approval for hybrid licenses:

While Rhode Island was the 19th state to legalize adult-use cannabis in the U.S. when McKee signed the Rhode Island Cannabis Act on May 25, 2022, it will now become the 16th state to implement a retail program.

“This milestone is the result of a carefully executed process to ensure that our state’s entry into this emerging market was done in a safe, controlled and equitable manner,” McKee said in the Nov. 22 announcement. “It is also a win for our statewide economy and our strong, locally based cannabis supply chain, which consists of nearly 70 licensed cultivators, processors and manufacturers in addition to our licensed compassion centers. Finally, I thank the leadership of the General Assembly for passing this practical implementation framework in the Rhode Island Cannabis Act, and I look forward to continuing our work together on this issue.”

While the approved legislation included a provision for municipal authority, allowing local government officials to opt-in or put a referendum before their voters, the state’s medical cannabis dispensaries, as well as existing cultivators, manufacturers and testing facilities, were grandfathered in and will now be the first to serve the state’s expanded market.

In addition to the five dispensaries, there are 48 licensed cultivators approved for hybrid licenses to grow cannabis for both the adult-use and medical marketplaces as of Nov. 22, according to the state’s Department of Business Regulation, which the OCR operates under.

Oregon cannabis regulators approved a final rule Nov. 17 to address gaps in the regulated laboratory testing sector that have drawn licensee complaints about THC potency numbers in the competitive state environment.

Under the new rule, the Oregon Liquor and Cannabis Commission (OLCC) may require a licensee to submit samples identified by the commission to a laboratory of the commission’s choosing to be tested in order to determine whether a licensee is in compliance with the cannabis testing.

Despite a push by some industry players to offer education on terpenes and minor cannabinoids, and how those compounds embody the benefits and effects of the cannabis plant, consumer demand trends continue to gravitate toward THC potency. In turn, producers and processors fighting for shelf space have driven lab testing business by shopping around in many state-legal markets.

RELATED: THC or Terpenes?

In Oregon, where state regulators implemented a cannabis licensing moratorium earlier this year in response to a “crowded marketplace,” OLCC officials took action last week to address the validity of cannabis test results, especially for THC content, and to fill the voids that have led to lab shopping.

“There’s a lot of voices that don’t want THC to be the sole factor, and the skewed THC is something the consumer fixates on, and it’s not fair,” OLCC Commissioner Matt Maletis said in a news release.

WAKEFIELD, Mass., Nov. 22, 2022 – PRESS RELEASE – Curaleaf Holdings Inc., a leading international provider of consumer cannabis products, announced the opening of two new Florida dispensaries, Orlando International Drive and Miami South Beach. The new locations are Curaleaf's 53rd and 54th locations to open in the Sunshine State and 144th nationwide.

Located at 6600 International Drive, east of Interstate 4 and near several resorts and entertainment attractions, Curaleaf Orlando International Drive is the company's fourth dispensary in metro Orlando and conveniently stationed for patients on-the-go.

Curaleaf Miami South Beach, located at 550 Collins Ave., is centrally positioned to serve patients in the heart of Miami's vibrant South Beach neighborhood and brings the company's Miami footprint to seven locations.

The new locations offer a broad selection of premium cannabis products, including high-quality flower and prerolls, BlueKudu Chocolate, Select Squeeze, Select X-Bites, Select Elite, Elite Live and Live Rosin vape cartridges, as well as other concentrates by Curaleaf.

"We are thrilled to welcome Florida's diverse and rapidly-growing medical cannabis community to these new locations on International Drive in Orlando and Collins Avenue in the heart of South Beach, Miami," Curaleaf CEO Matt Darin said. "We look forward to serving new and returning patients from across the Sunshine State with the quality, trusted products they rely on, along with an unrivaled retail experience."

Curaleaf Orlando International Drive began serving patients on Nov. 19 and will host a grand opening event on Dec. 2. The celebration will kick off with a ribbon-cutting ceremony at 9 a.m. and the Select arcade truck will be on-site from 10 a.m. to 5 p.m., along with promotional coupons, swag giveaways, music and complimentary food.

Michigan’s Cannabis Regulatory Agency (CRA) issued a bulletin Nov. 21 to notify the state’s licensed cannabis businesses of increased criminal activity.

RELATED: Michigan Regulators Warn Cannabis Licensees of Increased Fraudulent Activity

There have been 117 break-ins reported between April and November 2022, according to the bulletin, with the majority of incidents occurring at adult-use cannabis storefronts.

Individuals or groups have been breaking into—or attempting to break into—cannabis retail locations at night, and the break-ins have the following in common, according to the bulletin:

Regulators noted in the bulletin that “a significant number” of the break-ins have happened in Allegan, Barry, Van Buren, Kalamazoo, Calhoun, Berrien, Cass, St. Joseph and Branch counties.

The Utah Department of Agriculture and Food (UDAF) issued a statement Nov. 3 to clarify its stance on synthetic and derivative cannabinoids found in the state’s hemp and medical cannabis products.

“Cannabinoids, such as delta-9 THC and CBD, are generally regarded as the primary active ingredients in hemp and cannabis products,” department officials said. “Because delta-9-THC, CBD, and a few other cannabinoids that are more abundant in cannabis plants have been used by humans for thousands of years, the potential of these cannabinoids to directly harm those who use them is generally considered to be low. However, other cannabinoids which are not generally present or are less abundant in cannabis plants, do not have the same history supporting their safety. While the health effects of these minor cannabinoids are unknown, some negative health outcomes have been reported.”

RELATED: Utah Cannabinoid Product Board Takes Stance Against Delta-8 THC

Producers in Utah can obtain these minor cannabinoids in greater quantities through “selective genetic techniques or semi-synthetic/synthetic production,” regulators said. They warn that these synthetic cannabinoids “have not been sufficiently used or researched and are considered poorly categorized,” which is concerning to UDAF officials.

As a result, regulators said that the UDAF has taken steps to prevent products that contain these cannabinoids from being sold to the public as hemp products on the open market.

Oregon Gov. Kate Brown is taking executive action to answer President Joe Biden’s call to pardon state-level offenses of simple cannabis possession.

The Democrat, who took office three months after Oregon voters approved adult-use cannabis legalization in the November 2014 election, announced Nov. 21 that she is granting a mass pardon that will impact roughly 45,000 people across the state and forgive more than $14,000 in associated fines.

Brown’s executive action comes six weeks after Biden urged all 50 governors to do the same while announcing his own three-step plan for cannabis reform.

RELATED: Biden's Call to Pardon Thousands of Federal Cannabis Offenses Part of Sweeping Policy Reform

Brown’s pardon will eliminate barriers to employment, housing and education for the thousands of Oregonians whose convictions are for possession of 1 ounce or less of cannabis, have no other charges attached, and where there were no victims associated with the conviction. 

“No one deserves to be forever saddled with the impacts of a conviction for simple possession of marijuana—a crime that is no longer on the books in Oregon,” Brown said in a press release explaining the pardon.

Florida Agriculture Commissioner Nikki Fried and other plaintiffs in a lawsuit challenging federal laws governing medical cannabis and firearms aren’t ready to give up their fight just yet.

A U.S. district judge dismissed the case earlier this month, but Fried and the other plaintiffs—including medical cannabis patients and a gun owner—have filed an appeal, according to a WUSF report.

Fried announced her plan to sue the Biden administration in April in a lawsuit that takes aim at a conflict between state and federal law. While Florida’s 2016 medical cannabis law allows registered patients to legally purchase and use cannabis in the state, it remains illegal at the federal level, and federal laws prohibit those who use illegal drugs from purchasing and possessing firearms.

The plaintiffs argue that the current regulations violate medical cannabis patients’ Second Amendment rights, but in U.S. District Judge Allen Winsor’s decision to dismiss the case, he said cannabis is still federally illegal, despite Florida’s medical cannabis laws.

The notice of appeal did not provide detailed arguments that will be made in the appeals court, WUSF reported.

Kaya Shack, a vertically integrated cannabis operator in Oregon, will sell its Salem dispensary by Feb. 1, 2023, as part of a sale-surrender settlement for two violations stemming from 2019, according to the Oregon Liquor and Cannabis Commission (OLCC).

Kaya Shack is owned and operated by Kaya Holdings Inc., the first fully reporting public company to own and operate a seed-to-sale legal cannabis business.

RELATED: Going Public

For roughly a year—from February 2019 to February 2020—Kaya Shack allegedly sold adulterated prerolls and cannabis flower to consumers or transferred to other licensees. The products were exposed to broken glass from dropped jars, which the retailer “more likely than not had attempted to sift out,” according to an OLCC investigation. 

Kaya Shack issued a response statement to those allegations: “The company had previously confirmed with the OLCC the appropriate procedures for destroying and disposing of glass contaminated product and subsequently documented the company’s compliance with these procedures (including video and pictures of said disposal).”

In a second violation, OLCC officials allege that on multiple occasions from approximately February 2019 to May 2020, Kaya Shack Chairman and CEO Craig Frank and Senior VP of Operations Chad Craig (“and/or licensee’s employees, agents, or representatives”) asked or encouraged employees to conceal potential evidence of state violations “by telling them not to speak directly to the OLCC and/or by threatening employees with termination or lawsuits if they were to report issues of concern” to state regulators.

New York’s Cannabis Control Board (CCB) took steps to jumpstart the state’s forthcoming adult-use cannabis industry at its Nov. 21 meeting, where regulators approved the first 36 Conditional Adult-Use Retail Dispensary (CAURD) licenses and voted to advance comprehensive regulations for the state’s adult-use cannabis program.

The CCB approved 36 total retail licenses—28 for qualifying individuals and eight for nonprofits—from a pool of over 900 applications.

At least one CAURD license was granted in each available region of the state, according to a CCB press release.

A list of the 36 CAURD licensees can be found here.

“Today is a monumental day for New York’s nascent cannabis industry,” CCB Chair Tremaine Wright said in a public statement. “With the first adult-use retail dispensary licenses in the hands of businesses and eligible nonprofits, we’ve ensured the first sales will be made at dispensaries operated by those impacted by the unjust enforcement of cannabis prohibition. This is just the start; we will continue to work to build an industry that is open to anyone who wants to participate. Many thanks to Gov. Kathy Hochul and her unwavering support as we all work to make sure New York has the most equitable and inclusive cannabis industry in the nation.”

The New York Office of Cannabis Management (OCM) has shared its proposed adult-use cannabis regulations ahead of the Cannabis Control Board’s (CCB) Nov. 21 meeting, where the board plans to consider the proposed rules and issue the state’s first adult-use dispensary licenses.

If the draft regulations are approved by the CCB on Monday, the proposal, which covers license types, rules for enforcement and more, will enter a 60-day public comment period, according to an OCM press release.

RELATED: New York Regulators Issue Guidance for Adult-Use Cannabis Dispensaries

The proposed rules center on the activities authorized under seven adult-use cannabis license types, including cultivation, nursery, processing, distribution, retail dispensary, microbusiness and cannabis collective (co-op).

The licenses are outlined as follows, according to the press release:

California’s 2022 adult-use cannabis retail market is on track to shrink for the first time since the state launched commercial sales in 2018.

State-licensed dispensaries reported $1.27 billion in taxable adult-use sales for the third quarter 2022—a nine-quarter low going back to the second quarter of 2020—according to data released Nov. 18 from the California Department of Tax and Fee Administration (CDTFA).

Editor’s note: The “taxable sales” figures include sales of cannabis, cannabis products, and other retail sales of tangible personal property reported on sales and use tax returns.

Through the third quarter of this year, California retailers have reported just more than $4 billion in adult-use taxable sales, representing a 7.5% decrease compared to the first three quarter of 2021. However, taxable sales figures provided by CDTFA are fluid and subject to change based on amended and late returns and other tax return adjustments.

For instance, when CDTFA officials first reported full 2021 figures, taxable sales weighed in at $5.2 billion for the year. Since then, CDTFA officials have adjusted 2021 figures to reflect nearly $5.8 billion in taxable sales—more than $568,000 in sales that weren’t previously reported.

Based on current data available, California’s adult-use retailers have sold nearly $19.3 billion in cannabis and products since launching commercial sales in 2018.