MjLink Cannabis Business News and Press

U.S. Sen. John Hickenlooper, D-Colo., announced plans last week to introduce legislation that would set up a regulatory framework in preparation for federal cannabis legalization.

Hickenlooper’s Preparing Regulators Effectively for a Post-Prohibition Adult-Use Regulated Environment (PREPARE) Act is a Senate companion to legislation Rep. Dave Joyce, R-Ohio, introduced in the House in April.

“Federal marijuana legalization doesn’t need to start from scratch and we should prepare for it now,” Hickenlooper tweeted Nov. 3. “Today we introduced the PREPARE Act, a bipartisan bill to pave the way for the federal regulation of marijuana once legalization arrives.”

The bill directs the attorney general to develop regulations that would be enacted as soon as the federal government legalizes cannabis.

“I’m thrilled that the PREPARE Act will be introduced in the Senate, making it not only further bipartisan, but bicameral, and bringing it one step closer to becoming law,” Joyce said in a public statement. “This legislation gives lawmakers on both sides of the aisle the answers they need to effectively engage on cannabis reform, safely and effectively regulate it, and remedy the harms caused by the failed war on cannabis. With those answers, Congress can develop a much-needed federal regulatory framework that not only respects the unique needs, rights, and laws of each state, but also ensures a responsible end to prohibition and a safer future for our communities. I was proud to lead the introduction of this commonsense bill in the House and thank Sen. Hickenlooper for advancing it in the Senate. I look forward to continuing to work together to pave the way for more comprehensive reform.”

Editor’s Note: This is a developing story and will be updated as election results come in.

Voters will determine the future of adult-use cannabis legalization in five states today, a high-water mark for cannabis reform attempts at the ballot box.

If Arkansas, Maryland, Missouri, North Dakota and South Dakota all pass their ballot measures, it would bring the total number of states with adult use up to 24–a number that represents almost half the states in the U.S.

Each of these ballot measures would set a foundation for an adult-use cultivation and retail program except for that in South Dakota, which would legalize possession, use, distribution and home cultivation. (However, South Dakota’s measure does not mention a licensing structure or regulation for businesses.)

This will represent a groundbreaking election season for cannabis. Nearly half the country legalizing adult-use cannabis is a significant feat in its own right–it would mean a majority of the U.S. population supports cannabis reform (a notion supported by many studies, such as a 2019 Pew Research study that found two-thirds of Americans support legalization).

Notably, four of the five states with adult-use measures this year–Arkansas, Missouri, North Dakota and South Dakota–are conservative states, indicating growing bipartisan support on an issue that has been traditionally championed by Democrats.

When Jackson McLeod and his team were scouting possible locations for their cannabis dispensary in 2018, they stumbled on an unlikely storefront: a six-pump gas station squatting on a main commercial strip of Portland, Maine. It seemed like the perfect fit for Atlantic Farms.

The dispensary opened in December 2018, within the gas station itself, bringing cannabis to a highly trafficked business and exemplifying the expansion of Maine’s long-running medical market at that point in time.

“It was a major differentiator for us,” says McLeod, the CEO of the business. “From the beginning, we really wanted to normalize the cannabis shopping experience.”

This was still new to Maine. Previously, the state’s caregiver program allowed for growers to sell cannabis to five patients. In 2018, however, after much hemming and hawing in the statehouse, legislators removed the guardrails and allowed caregivers to open storefronts and to grow for an unlimited number of patients. After nearly 20 years, legal medical cannabis in Maine was now set to operate as an actual commercial market.

Prior to that expansion, the Atlantic Farms team had been looking for dispensary opportunities in nearby Massachusetts, hoping to work within that state’s new adult-use framework. But the news in Maine was too good to pass up; they were from Portland, after all, and what better place to set up shop than right at home?

Now, with storefronts opening throughout the state, the actual in-store atmosphere allowed for a more nuanced and personal approach to the medical cannabis transaction. This gave McLeod and the team much to think about.

Starting next year, the New Jersey Business Action Center (NJBAC) will offer technical assistance and training to the state’s cannabis business license applicants.

NJBAC has announced that it has been designated by the New Jersey Cannabis Regulatory Commission (CRC) to provide these services at no cost to adult-use cannabis license applicants to ensure that those considered social equity, legacy, Impact Zone, diversely-owned and microbusiness applicants receive the support they need to succeed.

NJBAC has met with industry stakeholders throughout the state to plan content that will be introduced in the first half of 2023 as the NJBAC Cannabis Training Academy, according to the announcement.

Initial training will include a combination of pre-recorded webinars followed by live, virtual question-and-answer sessions that will be held twice a month and allow applicants to consult with mentors and receive non-legal guidance.

All classes included in the Cannabis Training Academy will be taught by faculty members who have supported, taught or consulted the cannabis industry, according to the announcement.

The National Industrial Hemp Council (NIHC) sent a letter to the U.S. Food and Drug Administration (FDA) Nov. 3, urging the federal agency to approve hemp as an animal feed ingredient. 

In the letter, the NIHC referred to a virtual webinar it co-hosted with the American Association of Feed Control Officials (AAFCO) Aug. 9, which addressed the steps needed to approve hemp as an animal feed ingredient. 

Government regulators, veterinarians, university researchers and hemp advocates participated in the webinar, which “showed great interest and agreement on hemp’s potential as a nutritious feed source for production animals,” NIHC officials wrote.

“Part of our mission has been to promote the safe and efficient use of hemp-based animal feed for the production of livestock. The U.S. agriculture industry is struggling with a global grain shortage that is a direct result of the war in Ukraine. This has resulted in a direct increase in inputs for all domestic livestock producers of 16 percent since last year, according to the United States Department of Agriculture (USDA),” NIHC’s letter stated.

“From our perspective, there is no reason why the FDA hasn’t already approved hemp seed-based animal feed ingredients,” NIHC officials added. “We have seen numerous clinical trials, by Land Grant Universities and others, submitted to the FDA that all show the same outcome, that there is no transference of cannabinoids into the nation’s food supply chain from animals raised on hemp seed meal. Those results are consistent across the various species of animals, including laying hens, hogs, and dairy cattle.”

Officials noted NIHC understands the FDA’s concerns about cannabinoids entering the nation’s food supply; however, it stated that its “advocating for feeding hemp seed to animals that can contain cannabinoids.”

The Czech Republic plans to legalize adult-use cannabis alongside Germany, which announced its legalization plans late last month.

The Czech coalition government is in the process of drafting a legalization bill and aims to coordinate its approach with Germany, according to Forbes.

Draft legislation is anticipated in March 2023, with adult-use legalization coming online by January 2024, the news outlet reported.

The Czech government tapped drug commissioner Jindrich Voboril in September to draft a legalization bill, Forbes reported, and Voboril has since announced that officials are in talks with the German government about how to coordinate their proposals.

The Czech Republic decriminalized cannabis possession for personal use in 2010 and legalized medical cannabis in 2013, according to Forbes. The country has also legalized the cultivation of industrial hemp containing up to 1% THC, the news outlet reported, while other EU member states have capped hemp’s THC content at 0.2%.

Nebraska Sen. Anna Wishart isn’t giving up on medical cannabis legalization in her state.

Wishart tweeted her intentions Nov. 6, saying, “Next session I will bring another bill to legalize medical cannabis in Nebraska. Growing evidence shows benefits not only for reducing seizures and relieving pain, but it can lower the need for opioid use. It is past time Nebraskans have access to a safer alternative medicine.”

Nebraska’s 2023 legislative session is set to kick off Jan. 4.

Wishart backed a medical cannabis legalization bill last year that ultimately stalled.

Citizen-led efforts to legalize medical cannabis in Nebraska have also failed in recent years.

The Maine Office of Cannabis Policy (OCP) released guidance last month that limits the sale of medical cannabis prerolls and liquid concentrates.

Regulators have clarified that medical caregivers without a storefront cannot sell prerolls or liquid concentrates, according to the Associated Press, while dispensaries must treat them like tobacco products that can only be sold to adults 21 and older.

Previously, prerolls and liquid concentrates could be sold to registered medical cannabis patients 18 and older, the news outlet reported.

Former OCP Director Erik Gundersen issued the guidance Oct. 7, on his last day in the role before leaving to launch a cannabis consulting firm.

The medical cannabis industry has largely come out against the guidance, arguing that prerolls and liquid concentrates for vaping are some of the most popular cannabis products sold through Maine’s medical and adult-use cannabis markets, according to AP.

Pennsylvania regulators approved the state’s final medical cannabis regulations Oct. 20, ushering in permanent rules for an industry that has been operating under temporary guidelines since sales launched in early 2018.

The final regulations, adopted by the Independent Regulatory Review Commission in a 4-0 vote, have raised some concern for industry stakeholders, particularly when it comes to testing.

Under Pennsylvania’s temporary medical cannabis regulations, the state’s licensed grower/processors could use one lab to test their products. Now, under the new rules, licensees must have their material tested twice by two different labs—once when the plants are harvested and a second time after the cannabis has been processed into finished products.

“That is certainly a drastic change and one which is not welcome by industry stakeholders,” says Meredith Buettner, executive director for the Pennsylvania Cannabis Coalition (PCC). “It’s certainly going to be challenging to implement from a grower/processor standpoint. The laboratories have serious concerns. We have, I think, program-wide concerns about if our state-mandated seed-to-sale system, MJ Freeway, is going to be able to handle the [Department of Health’s] thoughts about this.”

The root concern, Buettner says, is that many industry stakeholders doubt that the department has the statutory authority to force operators to use two separate labs for harvest testing and final product testing.

Belushi’s Farm, a vertically integrated cannabis and CBD company owned by American actor and comedian Jim Belushi has been awarded a license to operate an adult-use dispensary on Saint Regis (Akwesasne) Mohawk Tribe territory in upstate New York.

Belushi founded Belushi’s Farm in 2015 to operate within Oregon’s medical cannabis market. The company segued into the CBD market last year, launching k-9ine, a full-spectrum CBD tincture for pets inspired by Belushi’s dog, Taro. Since its launch, Belushi’s Farm products have expanded to Colorado, Oklahoma, Illinois, Massachusetts, and now, New York.

READ MORE: Jim Belushi’s Cannabis Mission

While adult-use cannabis sales have yet to launch in New York, Native American nations have sovereignty, which enables their tribal governments to develop their own set of rules and regulations regarding cannabis, Politico reported.

There are currently 16 licensed retailers and five licensed cultivators under the Saint Regis Mohawk Tribal (SRMT) Council, according to the SRMT Cannabis Control Board,

Tribal fees collected from Belushi’s Farm in Akwesasne—located at 987 State Route 37—and other licensed dispensaries on the Mohawk territory will be used to help support community programs and services, according to a press release from SRMT Council.

Metrc appointed Sam Peterson as the company’s chief technology officer (CTO).

In his new role, Peterson will support Metrc’s continued innovation of product offerings and expansion into new markets, according to a release. He will also lead the company in advancing technology and product initiatives to increase benefits for Metrc’s state partners.

RELATED: Alabama Partners with Metrc on Track-and-Trace Platform

“The time is now to go all-in on the breadth and depth of Metrc’s offerings. Sam’s successful track record of building cutting-edge strategies and delivering exceptional results will take our dynamic platform to new levels and ensure we remain the top choice for our customers,” said Metrc CEO Michael Johnson. “His valuable expertise will bolster Metrc’s unwavering commitment to serving our partner and provide instrumental support to maintain our 100% renewal rate.”

Peterson joins the company with more than 25 years of experience in technology leadership, including software and product development as well as Software as a Service growth strategies. Most recently, he served as CTO at Boats Group, a Florida-based advertising and software company for the marine industry.

“There is a tremendous opportunity to expand and scale Metrc’s transformative solutions and advanced technology to meet the ever-evolving needs of cannabis industry and state regulators,” Peterson said. “I’m excited to join this talented leadership team to further our position as the most efficient and reliable provider of track-and-track technology.”

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Lowell Farms named Summer Frein and Ann Lawrence to its board of directors.

The appointments come in the wake of Stephanie Harkess and Bruce Gates departing Lowell’s board. Gates will continue to serve the board as an observer, according to a release.

Both Frein and Lawrence will begin their tenures effective immediately.

“In our search to fill the openings on our board, we immediately identified Summer and Ann as two of the most accomplished and forward-thinking executives in our industry, with unmatched insight into California’s cannabis economy and informed ideas that will ensure Lowell Farms can grow responsibly in our home state and beyond,” said George Allen, chairman of the board at Lowell Farms. “With these new additions, we are well-positioned to continue developing the best-in-class original products for our customers while working behind the scenes to achieve greater transparency and fairness in this tightly regulated market.

“We want to thank Stephanie and Bruce for their invaluable contributions to Lowell Farms over the years,” Allen added. “We are incredibly grateful to them for helping us achieve and maintain our position in the market, and we wish them both the best in their future pursuits.”

Frein currently serves as chief marketing officer at Turning Point Brands, a manufacturer and distributor of branded consumer products, including alternative smoking accessories and consumables. Before that, she served in various leadership roles across 15 years at both Cronos Group, where she was general manager, and Altria Group, where she led the company’s Strategy and Business Development Group. Her experience includes brand management, marketing services, consumer insights and more.

Planet 13 is looking to expand operations to Illinois.

The multi-state vertically integrated cannabis company has submitted its proposed Waukegan, Illinois, location  to local regulators and the Illinois Department of Financial and Professional Regulation for approval.

Robert Groesbeck, co-CEO of Planet 13, said the Illinois location will be smaller than its SuperStore locations in Las Vegas and Santa Ana, Calif., but it will “still meet Planet 13’s high standards for customer experience.”

RELATED: Planet 13: The Dispensary Disruptor

“Along with our Planet 13 Illinois partner Frank Cowan, we have selected a dispensary location in Waukegan, Illinois, that we are very excited about,” Groesbeck said. “It is in a prominent shopping center with multiple stores, restaurants, hotels, and a recently announced casino project. It is located off the Interstate 94 highway between Milwaukee and Chicago, close to the Wisconsin border.”

The location now awaits approvals from state regulators and the city of Waukegan.

Montauk Brewing Deal Expected to be Accretive, Deliver Strong Revenue and Adjusted EBITDA, and Accelerate the Expansion of Tilray’s Powerful U.S. Brand PortfolioVeteran Industry Executive Ty H. Gilmore Appointed President of Tilray Brands’ U.S. Beer Business

NEW YORK, Nov. 7, 2022 – PRESS RELEASE – Tilray Brands Inc. announced the acquisition of Montauk Brewing Company, the No. 1 craft brewer in Metro New York. Montauk Brewing is well-known for its product portfolio, premium price point, and distribution across more than 6,400 points of distribution, including top national retailers such as Target, Whole Foods, Trader Joe’s, Stop & Shop, King Kullen, Walmart, 7-Eleven, Costco, BJ’s and Speedway. The acquisition is expected to be accretive to the company’s adjusted EBITDA.

Montauk Brewing joins Tilray’s growing U.S. beverage-alcohol segment, which already includes SweetWater Brewing Company, the 10th largest craft brewer in the nation with distribution across more than 40 states, the Alpine and Green Flash iconic Southern California brands, and its leading lifestyle bourbon and spirits brand, Breckenridge Distillery.

To fully optimize the value and strength of its U.S. craft beer portfolio, Tilray also announced that it has appointed veteran beer and beverage industry executive Ty H. Gilmore as president of Tilray’s U.S. beer business, a newly created position.

Irwin D. Simon, chairman and CEO, said, "Tilray Brands continues to strengthen our U.S. footprint and operations through investments in and growing our portfolio of leading lifestyle CPG brands that resonate powerfully with consumers. Montauk Brewing is an iconic brand with leading market share and distribution in the Northeast. Tilray Brands intends to leverage SweetWater’s existing nationwide infrastructure and Montauk Brewing’s Northeast influence to significantly expand our distribution network and drive profitable growth in our beverage-alcohol segment. This distribution network is part of Tilray’s strategy to leverage our growing portfolio of U.S. CPG brands and ultimately to launch THC-based product adjacencies upon federal legalization in the U.S.”

Simon added, “We are excited to welcome Montauk Brewing’s founders Vaughan Cutillo and Eric Moss, as well as Terry Hopper, Montauk Brewing’s general manager, to the Tilray Brands family, and I look forward to working closely with Ty Gilmore to maximize the performance of our enormously powerful craft and lifestyle beverage brand portfolio.”

President Joe Biden announced sweeping federal cannabis policy reform efforts last month, leaving plant-touching businesses wondering what the president’s initiatives could mean for the future of their state-regulated operations.

The three-step plan, revealed Oct. 6, includes pardoning thousands of people with previous federal cannabis possession charges, urging governors to do the same at the state level, and requesting that Health and Human Services (HHS) Secretary Xavier Becerra and Attorney General Merrick Garland review cannabis’s Schedule I status under the Controlled Substances Act (CSA).

Cannabis operators across the U.S. have largely applauded the president’s steps toward federal cannabis policy reform, particularly the review of how cannabis is scheduled.

RELATED: Cannabis Industry, Lawmakers React to Biden’s Federal Cannabis Policy Reform Efforts

As a Schedule I drug under the CSA, passed in 1970 under President Richard Nixon, cannabis is classified as having no accepted medical use and a high potential for abuse. Other examples of Schedule I drugs include heroin and LSD.

“What the president did is absolutely historic,” says John Sullivan, EVP of Public Affairs for multistate operator Cresco Labs. “Most people are talking about 6,500 pardons, which is a great thing, … but it really buries the lead. The lead of the story is the sitting president of the United States instructed the Department of Health [and Human Services] and the attorney general to reconsider how cannabis is scheduled.”

BOCA RATON, Florida., Nov. 7, 2022 - PRESS RELEASE - Jushi Holdings Inc., a vertically integrated, multi-state cannabis operator, announced the opening of its relocated Beyond Hello Westside dispensary in Pennsylvania, through its subsidiary, Pennsylvania Dispensary Solutions. The new store location, Beyond Hello Dickson City, is located at 32 Scranton Carbondale Highway in Dickson City and is centrally located in a hub of economic activity in the Greater Scranton Area. The location will begin serving medical cannabis patients and caregivers in Northeast Pennsylvania and beyond at 10:00 a.m. Tuesday, Nov. 8.

“Beyond Hello Dickson City is located just two minutes from I-81, the Viewmont Mall and a host of hotels, restaurants, shops and grocery stores,” said Jim Cacioppo, Jushi CEO, chairman and founder. “Designed by our in-house team, this new store features a lighter, brighter color palette with a focus on display cases that highlight our curated selection of medical marijuana products and accessories. With plenty of parking spots and a seamlessly integrated shopping experience with beyond-hello.com, Beyond Hello Dickson City is well located to serve patients across the Greater Scranton Area.”

Open 9:00 a.m. to 8:00 p.m. Monday through Saturday and 10:00 a.m. to 6:00 p.m. on Sundays, Beyond Hello Dickson City patients can choose from four of Jushi’s in-house brands: Sèchè, its flower line; The Lab, its high-quality vaporization line; The Bank, its award-winning flower brand; and Nira+, its THC and CBD-rich medicinal line, which are all locally grown at Jushi’s nearby grower-processor facility in Scranton. Beyond Hello Dickson City patients can also find other popular cannabis brands and products such as dry leaf, concentrates, cartridges, tinctures, topicals, capsules, pills, and various ancillary products such as approved batteries and devices. In addition, as part of this commitment to exceeding patients’ expectations, well-trained staff will be on-site to dispense products, answer questions and provide service to patients and caregivers. For more information, visit Beyond Hello Pennsylvania.

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With more than 900 applicants vying for an adult-use dispensary license in New York, the state’s Office of Cannabis Management (OCM) released guidance for adult-use retailers Oct. 28 that sets the expectations for those ultimately awarded retail licenses.

The regulations cover employee training, testing, preparing for inspections, waste disposal, recall protocols and much more, all of which is “pretty standard” compared to other states, according to Warren Harasz, VP of regulatory compliance for cannabis consulting firm Cannaspire.

Based on the East Coast, Cannaspire operates in multiple states, including Connecticut, Massachusetts and Michigan, and has been particularly busy in New Jersey as that state continues to build out its adult-use cannabis industry, which launched adult-use retail sales April 21. The company provides assistance with business license applications, business plans, employee handbooks, standard operating procedures (SOPs), security plans and operational readiness.

RELATED: Cannabis Industry Stakeholders Weigh in on New York’s Packaging and Labeling Regulations

A few provisions included in OCM’s guidance issued last week caught Harasz’s attention as unique to New York, including a provision that allows retailers to deliver cannabis on bicycle and on foot.

As Cresco Labs and Columbia Care work toward closing an acquisition agreement with each other—one of the biggest in the cannabis space—the multistate operators announced Nov. 4 divestitures in three markets to Sean “Diddy” Combs.

The planned divestitures include certain assets in New York, Illinois and Massachusetts with a purchase price of $185 million by an entity owned and controlled by the American rapper, who is also known by his stage names Puff Daddy and P. Diddy.

The transaction is Combs’ first investment in cannabis and, upon closing, will create the country’s first minority-owned and operated, vertically integrated multistate cannabis operator, according to a release from Cresco and Columbia Care. The divestiture is required for Cresco to close its acquisition of Columbia Care, a deal that was valued at $2 billion when the agreement was first announced in March. The two deals are expected to close concurrently.

RELATED: Cresco Labs Targets $2B Acquisition of Columbia Care

“Today’s announcement is bigger than the transaction—and it couldn’t come at a time of greater significance and momentum,” Cresco Labs CEO Charlie Bachtell said in the release. “We’ve seen executive power exercised to address matters of cannabis injustice, we’re seeing bipartisan support for elements of federal reform, and we’re seeing some of the largest and most influential states in the country launch cannabis programs prioritizing social responsibility—this announcement adds to that momentum.”

Cresco officials indicated the agreement with combs is an industry-changing transaction that is rooted in the company’s vision to develop a more “responsible, respectable and robust industry.”

BITS offer a unique brand platform hinging on 5 milligrams of THC, complemented by additional cannabinoids including CBD, CBG and CBN, and functional adaptogens in five delicious flavor varieties.BITS pectin-based gummies combine tailored cannabinoid ratios and adaptogens for versatility in enhancing an array of everyday use-cases: Acai Affection, Pomegranate R&R, Elderberry Wellness, Guava Go and Yuzu Zone.The everyday edible that encourages doing—without overdoing it, BITS aim to make the cannabis edible experience more accessible, less intimidating and enjoyable for all. BITS will be available at Zen Leaf dispensaries and third-party retail locations across Illinois, Maryland, Massachusetts, Nevada, New Jersey and Ohio beginning in early November and will launch in Arizona and Florida soon after.

CHICAGO, Nov. 3, 2022 – PRESS RELEASE – Verano Holdings Corp., a leading multistate cannabis company, announced the launch of BITS, a new line of low-dose, high-function edibles that allow cannabis consumers to do more with less. Each of BITS’ five initial flavors offer a blend of 5 milligrams of THC, complementary cannabinoids and adaptogens designed to enhance not overtake, and to make the cannabis edible experience less intimidating, more accessible and enjoyable.

Beginning Nov. 4, 2022, the new product line from Verano will be available across the company’s Zen Leaf dispensaries and third-party retail locations in six core markets: Illinois, Maryland, Massachusetts, Nevada, New Jersey and Ohio, with additional rollouts in Arizona and Florida expected in the near future.

Designed with function in mind, BITS aim to enhance everyday experiences by tapping into the many benefits of cannabis and adaptogens. BITS’ novel product profiles include:

Yuzu Zone: A thoughtful blend of ginseng, reishi, turmeric, THC and CBG, this savvy sativa edible embodies anti-procrastination, meant to help you tackle that lengthy to-do list. Elderberry Wellness: A soothing indica blend with equal parts THC and CBD, plus elderflower, elderberry and acerola, to add a hint of well-being to any cozy comfort. Pomegranate R&R: This dreamy indica edible is infused with THC and CBN, plus ashwaganda and lemon balm, to help you discover a more satisfying sleep. Acai Affection: This sensual hybrid edible made with THC, rose extract and rose hip delivers a hint of passion to enhance moments of intimacy.Guava Go: This sativa edible is made with THC, coffee fruit and guarana for a natural boost, activating you for whatever the day throws your way.

“Launching BITS adds another powerful and complementary piece to our growing portfolio that appeals to a broad base of cannabis consumers of all experience levels,” Verano founder and CEO George Archos said. “With the introduction of BITS across several core markets, we’re excited to drive further momentum while delivering more variety to cannabis consumers to address their diverse individual tastes and wellness needs.”

BITS joins the company’s growing brand portfolio that includes its namesake offering of Verano Reserve and Essence flower, Swift Lift mini prerolled joints, extracts and vaporizers; Encore Edibles, hand-crafted cannabis gummies, hard candies, mints, caramels and chocolates; Avexia topicals, tablets, tinctures and RSO, made to effortlessly enhance any self-care routine; and Savvy flower and vaporizers, larger-format cannabis products catering to more value-driven patients and consumers.

LEAMINGTON,Ontario and DENVER, Nov. 2, 2022 – PRESS RELEASES – Tilray BrandsInc., a leading global cannabis lifestyle and consumer packaged goods company builton inspiring and empowering the worldwide community to live its very best life,and Charlotte’s Web Holdings Inc., the U.S. market leader in cannabidiol (CBD) hemp extract wellness products, have entered into astrategic alliance which includes licensing, manufacturing, quality, marketingand distribution for Charlotte’s Web CBD hemp extract products in Canada.

Forthe first time, Canadians will have the ease of nationwide availability ofCharlotte’s Web full-spectrum CBD products through Tilray’s distributionnetwork. Previously, Charlotte’s Web hemp extract had only been available toCanadian families that qualified for a special access medical exemption throughHealth Canada for specific need-states.

“This is an exciting time for theCanadian CBD market as more Canadians seek natural wellness options. Partneringwith Charlotte’s Web, the market leading CBD brand, opens new opportunities forTilray Brands in Canada as we evolve our distribution channels from thedispensary model to natural wellness retail channels and eventually mass retailopportunities. We look forward to launching Charlotte’s Web’s trusted,certified, and tested products across Canada in 2023.” said BlairMacNeil, president, Canada, at Tilray.

“Charlotte’s Web is thrilled to bepartnering with Tilray Brands, a respected global category captain. Thisunderscores our strategic expansion into international markets with leadingdomestic partners by leveraging well-established infrastructure, co-production,and route-to-market capabilities,” Charlotte’s Web CEO Jacques Tortorolisaid. “Our collective goal is to bring full-spectrumCBD-lifestyle wellness options to the Canadian market that will answerconsumers’ demand for safe, high-quality, trusted CBD products.”

Theendeavor will address specific need states for Canadians by replicating thesuccess of Charlotte’s Web’s core offerings in the U.S. with its line of full-spectrumhemp extract products, including, naturally flavored oil tinctures, topicalcreams, and functional gummies for daily wellness and night-time use.Hemp-derived CBD falls under the same regulatory framework in Canada ascannabis; and therefore, Charlotte’s Web will be available through traditionalCanadian cannabis sales channels. Establishing Charlotte’s Web’s supply chainand distribution in Canada also prepares for the contemplated introduction ofnatural health products regulations and potential ability to sell CBD productsthrough traditional pharmacies in Canada.

Firstavailability of Charlotte’s Web products in Canada is expected in early 2023for hemp extract oil tinctures, followed by gummies and topicals.

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