MjLink Cannabis Business News and Press
The Hong Kong government announced Oct. 20 that it is banning CBD and will move it to theDangerous Drugs Ordinance (DDO), placing it in the same category as heroin,cocaine, and methamphetamine, starting Feb. 1, 2023.
After Feb. 1, any individualwho manufactures CBD products could face a maximum penalty of life imprisonmentand a $5 million fine. Individuals who possess or consume such products couldface up to seven years in prison and a $1 million fine, according to therelease.
CBD products are currentlylegal in Hong Kong if they do not contain any traces of THC, the primarypsychoactive constituent of cannabis. THC is illegal in Hong Kong for itspsychoactive properties and is the First Schedule to DDO, according to agovernment document.
The government argued while “CBD, in its pure form, is not psychoactiveand is not associated with abuse potential,” according to the “GovernmentLaboratory (GL), where CBD is extracted from cannabis, it is very difficult toisolate pure CBD from cannabis, and it would not be practical to completelyremove THC impurities from CBD isolates.”
The government also notedthat CBD products risk cross-contamination of THC during the production processand that it is “inevitable that CBD products manufactured from CBD isolatescontain certain levels of THC, even though at trace levels or levels below thedetection limits of various analytical methods.”
GL officials added that CBDcould naturally convert into THC when exposed tocarbon dioxide in air and water, as it may act as a catalyst for the conversion.
Support for Arkansas’ adult-use cannabis ballot initiative, Issue 4, appears to have lost steam in the past month as opponents continue to lambast the legalization initiative ahead of Election Day.
Roughly 50.5% of Arkansans are in favor of the November 2022 ballot measure, while 43% oppose it and 6.5% remain undecided, according to pollsters from Talk Business & Politics-Hendrix College, who conducted a survey Oct. 17-18 with input from 974 likely voters.
While the majority opinion still holds a 7 1/2-point lead in that poll, the results indicate the issue’s backing is fading quickly. Last month, TB&P-Hendrix pollsters announced that majority support held a 58.5% to 29% lead during a Sept. 12 survey, when 12.5% of respondents were undecided.
In other words, support for the issue fell eight points, while opposition rose 14 points in a little more than a month between the two surveys.
“Issue 4, which would legalize adult-use cannabis, has seen tremendous movement over the past month,” TB&P Editor-in-Chief Roby Brock said in announcing the more recent poll. “Opponents have been able to improve their standing by swaying undecided voters and even peeling off some soft support that was once there. I think the media campaigns for and against this measure make it the most interesting statewide race to watch on election night.”
Sponsored by Responsible Growth Arkansas—which is led by former Arkansas state Rep. Eddie Armstrong (D)—Issue 4 would legalize cannabis for adults 21 and older, including the possession of up to 1 ounce.
CHICAGO, Oct. 24, 2022 – PRESS RELEASE – Cresco Labs, a vertically integrated multistate operator and the No. 1 U.S. wholesaler of branded cannabis products, announced that board director Sidney Dillard has tendered her resignation. Dillard has accepted a board position at a large national health insurance provider and is resigning from her Cresco Lab’s board position to avoid any potential regulatory conflicts.
“We are disappointed to see Sidney go, but we wish her the best in her new endeavor. I know she will be the same trusted adviser, independent voice, and driver of evolution in her new role,” Cresco co-founder and CEO Charles Bachtell said. “Sidney’s depth of experience and professionalism has set the bar high, and we will ensure that our board continues to have industry leading diversity of experience and knowledge.”
Dillard said, “I’d like to thank Cresco for the wonderful experience of working with an incredible team and a true industry leader focused on developing a diverse, responsible, respectable and robust cannabis industry. I’m confident they will have continued success, and I look forward to watching from the sideline as they achieve their goals and mission. Unfortunately, today’s federal legal structure can force experienced professionals needed to shape the future of this industry to make difficult choices—I am hopeful that this will be addressed in the near future.”
Dillard’s resignation is effective immediately.
]]>WASHINGTON,D.C., Oct. 24, 2022 – PRESS RELEASE – TheSecurities and Exchange Commission (SEC) on Oct. 24 charged Cronos Group Inc.,a Nasdaq-listed cannabis company based in Toronto, for improperly accountingfor millions of dollars of revenue and for other accounting misconduct inmultiple reporting periods. The SEC also charged Cronos’ former chief commercialofficer, William Hilson, with fraud and aiding and abetting the company’sviolations. In agreeing to settle with Cronos, the commission determined thatthe company should not incur a financial penalty, given its timelyself-reporting, significant cooperation and remediation.
According to the SEC’s order, in three separate quartersbetween 2019 and 2021, Cronos submitted financial statements with the SEC thatcontained material accounting errors related to, among other things, revenuerecognition and goodwill impairment. The order also found that, in one of thequarters, Hilson entered into an undisclosed oral agreement to sell cannabisraw material and to repurchase cannabis product in the following quarter. Thisagreement was neither known nor accounted for by Cronos, which discovered the$2.3 million accounting error during an internal investigation. After discoveringthe accounting errors, Cronos promptly reported the misconduct to the SEC andprovided extensive cooperation that meaningfully advanced the commission’sinvestigation. It also took effective remedial steps to enhance its internalaccounting controls.
“It is critically important for issuers to have adequatecontrols in place before they take on the reporting obligations required ofpublic companies," said Mark Cave, associate director in the SEC’sEnforcement Division. “While today’s order finds that Cronos’ controls were notup to standards when it began filing financial statements with the SEC, Cronosavoided penalties by promptly self-reporting its accounting misconduct as itcame to light within the company, cooperating with our investigation, andpromptly taking effective remedial steps.”
The SEC’s order against Cronos finds that the companyviolated the antifraud, reporting, books and records, and internal controlsprovisions of the federal securities laws. The SEC’s order against Hilson findsthat he violated the antifraud provisions of the federal securities laws andfurther aided and abetted and caused Cronos’ violations of the reporting, booksand records, and internal controls provisions.
Without admitting or denying the SEC’s findings, Cronos andHilson offered to settle the matter by agreeing to cease and desist from futureviolations of the charged provisions. In addition, Cronos agreed to retain anindependent compliance consultant to review, assess and make recommendationswith respect to the firm’s financial reporting and accounting controls. Hilsonagreed to a three-year officer and director bar and agreed to be suspended fromappearing and practicing before the SEC as an accountant for at least threeyears. The commission determined not to impose a financial penalty on Hilson inlight of his consent to pay CA$70,000, or approximately US$54,000, to theOntario Securities Commission for similar conduct.
The SEC’s investigation was conducted by Kendra Kinnairdand John Higgins, with the assistance of Marlee Miller and Bonnie Kartzman inthe Office of International Affairs. The investigation was supervised by FuadRana and Kristen Dieter. The SEC appreciates the assistance of the OntarioSecurities Commission.
]]>GALLATIN, Missouri, Oct. 25, 2022 - PRESS RELEASE- Verts Neighborhood Dispensary announced it is expanding its brand into the Missouri and Michigan markets. This includes opening four new locations in Missouri: Dexter, Pacific, Gallatin, and Joplin. The company has already received great feedback and is excited to continue to bring the magic of cannabis to this area.
Verts Neighborhood Dispensary has ongoing expansion projects, which include adding dispensaries in Michigan. These expansion projects are geared toward the west side and upper peninsula of Michigan.
Since 2014, the company has been helping folks enjoy the medicinal benefits of cannabis. Verts started in the Colorado Front Range area, serving various customers aged 21 and older seeking to find relief from various ailments or utilize cannabis recreationally.
Verts Neighborhood Dispensary prides itself on providing customers with the highest quality dispensary experience. The company hires knowledgeable, hospitable, and local team members who serve customers with respect and guidance.
To convey the culture of community online, Verts Neighborhood Dispensary is excited to announce it is revamping its online presence. Verts has teamed up with Abstrax to create a new website that truly conveys its philosophy.
"We're excited to partner with Verts Neighborhood Dispensary creating their new website aligning with [its] rebranding as [it is] rapidly expanding and continue to serve [its] community firsthand," says Charlie Hernadez, Abstrax Web CEO.
CALGARY, Alberta, Oct. 25, 2022 - PRESS RELEASE - High Tide., a retail-focused cannabis company with bricks-and-mortar as well as global e-commerce assets, announced that its Canna Cabana retail cannabis store located at 5628 Dunbar Street in Vancouver, British Columbia, will begin selling adult-use cannabis products and consumption accessories Oct. 25. This opening marks High Tide's 141st Canna Cabana branded retail cannabis location in Canada, fourth in British Columbia and third in Vancouver. This is the first Canna Cabana location in Dunbar Village, Vancouver, located around the corner from a major national grocery chain and a popular Vancouver liquor store. It is also a short drive from both the University of British Columbia and Langara College, which collectively have a student population of over 80,000.
"I am pleased to announce the opening of our third Canna Cabana location in Vancouver, which is the epicenter of world-famous BC bud. Vancouver is an important market to expand our Canna Cabana brand into due to its large population, popularity with tourists and favorable municipal distance requirements between cannabis stores, yielding greater returns over other markets. Through the opening of this Dunbar Village store, we are further expanding our innovative discount club model, which provides a large assortment of high-quality cannabis and cutting-edge consumption accessories at unbeatable prices", said Raj Grover, High Tide president and CEO.
"Our other three locations in BC, which include Fort St John in Northern British Columbia as well as Yaletown and Olympic village locations in Vancouver, continue to see increasing customer counts and sales. This Dunbar location is the second organically built retail store for High Tide in British Columbia and, combined with recent acquisitions of Choom and Jimmy's Cannabis stores, brings us close to ending the 2022 calendar year with eight stores in the province, the maximum currently permitted for any entity," Grover added.
]]>A month after Ontario-based Canopy Growth Corp. officials announced they were exiting the cannabis retail market in Canada, details emerged Oct. 25 that the company is accelerating plans to enter the U.S. market via three acquisitions.
Canopy Growth announced Tuesday the creation of a new U.S.-domiciled holding company, Canopy USA LLC, for its U.S. cannabis investments, which will enable the company to exercise rights to acquire multistate operator Acreage Holdings, leading cannabis edibles company Wana Brands, and Jetty Extracts. In addition, the new holding company will allow Canopy Growth to gain a minority ownership stake in multistate operator TerrAscend Corp.
“As the growth of the U.S. cannabis market continues rapidly at the state level, this strategy enables us to take control of our own destiny and capitalize on the once-in-a-generation opportunity in the largest cannabis market in the world,” Canopy Growth CEO David Klein said in a press release. “We expect to unleash the full power of Canopy’s scalable and ideally positioned U.S. cannabis ecosystem to unlock potential expansion opportunities. This strategy and positioning are true differentiators, which we expect to enable our investors and brands to realize value in the near term while positioning Canopy for profitable growth and a fast start upon U.S. federal permissibility.”
According to the release, Canopy Growth’s “U.S. cannabis ecosystem” has an established presences across large-scale and rapidly developing adult-use markets, including 21 states: Arizona, Arkansas, California, Colorado, Connecticut, Florida, Illinois, Maine, Maryland, Massachusetts, Michigan, Missouri, Nevada, New Hampshire, New Jersey, New Mexico, New York, Ohio, Oklahoma, Oregon and Pennsylvania.
Acreage CEO Peter Caldini said his New York-based company’s integration into Canopy’s U.S. ecosystem will allow shareholders of both companies to participate in a “strategic market opportunity” with aligned interests.
“An exciting evolution is now taking place in the U.S. cannabis industry, and the time is now to accelerate our union with Canopy and leverage the solid foundation we have built to fully participate in an unmatched U.S. ecosystem alongside other market leaders,” Caldini said in a public statement. “Acreage is a valuable addition to what Canopy is building, and we are excited about the opportunities to collaborate more directly with Jetty and Wana on product innovation and market expansion, creating an even stronger position ahead of federal permissibility as part of a leading North American brand powerhouse.”
LAKELAND, Fla., Oct. 25, 2022 (GLOBE NEWSWIRE) -- PRESS RELEASE -- Metrc, a provider of cannabis regulatory technology systems in the U.S., announced the launch of sustainable radio frequency identification (RFID) plant tags developed to reduce waste, resulting in better all-around environmental performance. To ensure the success and adoption of the new plant tags, Metrc is initiating a pilot test program for select state agencies and licensees to provide feedback on the tag’s design, durability and readability.
Metrc has been developing its sustainable tag solution to showcase its dedication to cannabis industry stakeholders, the communities they serve, and the overall environmental well-being of the planet. This commitment drove the company to formulate sustainable paper plant tags that maintain durability and RFID technology efficiency. Metrc’s sustainable RFID tags are designed to improve compliance auditing and reporting, carrying embedded security advantages over other systems and arriving regulation-compliant and ready for use. Licensees do not need special printing equipment to create tags and labels, reducing errors and waste while saving businesses time and money.
“The launch of our sustainable RFID tags creates an environmentally friendly option for our licensees across the country,” said Michael Johnson, CEO of Metrc. “We are confident that our breakthroughs in RFID technology and compositions will allow us to continue improving the sustainability of our tags down the line, and we look forward to receiving real-time feedback from our partners participating in the pilot program.”
In alignment with state agencies, Metrc’s nine-week pilot test program will permit licensees to evaluate the new tags' design, effectiveness and usability, including tag perforation and ease of tag separation, durability and readability, and more. Licensee participants will receive pilot test instructions and plant tags and straps shipped directly to their facility, free of charge, along with dedicated support to track feedback throughout the testing process, including completion of the program.
The sustainable tags developed by Metrc contain 30% post-consumer waste (PCW), providing a steady source of demand for recycled paper products, 10% hemp, and 60% responsibly sourced Forest Stewardship Council (FSC) certified virgin paper fiber. The inclusion of hemp fiber to the PCW greatly improves tag durability, and by using recycled materials instead of new resources, Metrc is significantly reducing energy consumption, carbon emissions, waste in landfills, and water usage. In addition to reducing plastic use and waste, adding hemp and PCW saves 302,000 pounds of wood, equivalent to 910 trees per year, based on industry calculations of the production of 226,000 pounds of material. The base material of the sustainable tags is made with 100% renewable Green E-certified wind-powered electricity (RECs) under a third-party certified ISO 14001 Environmental Management System and is manufactured carbon neutral (VERs), offering additional environmental benefits to the materials and process.
Cannabis dispensary workers at multistate operator Curaleaf’s Edgewater Park, N.J., location voted to join the United Food and Commercial Workers (UFCW) Local 360 union, organizers announced Oct. 20.
There are approximately 35 workers at that location, UFCW Local 360 Director of Organizing Hugh Giordano told Cannabis Business Times.
Curaleaf’s Edgewater Park location expanded to serving adult-use cannabis customers on May 24—roughly a month after commercial adult-use sales commenced in New Jersey.
“Votes like this will keep New Jersey’s cannabis economy thriving for years to come. A whole new generation of workers is discovering that labor unions play a critical role in balancing the needs of employees, communities and employers, and they want in,” Giordano said in a Local 360 press release. “And when we take the recent decision to pardon people convicted of ‘simple possession’ into account, it’s clear that the mission of protecting cannabis workers in their workplaces, and establishing a fair and equitable industry that supports family sustaining jobs, is making serious progress.”
Curaleaf’s Edgewater Park dispensary was among 13 retail facilities originally approved by the state’s Cannabis Regulatory Commission to launch adult-use sales on April 21, but that location remained a medical-only facility for an additional month in order to satisfy local land-use conditions to build a larger parking lot, drainage basins and additional lights.
RELATED: New Jersey Approved 13 Adult-Use Dispensaries; Only 12 Running
The Pennsylvania Cannabis Coalition (PCC) announced Oct. 24 that the trade organization has released the results of a candidate survey aimed at gauging elected officials’ stance on cannabis policy ahead of the November election.
The questionnaire, sent to the candidates in all 228 legislative races on the ballot, addressed the current issues faced by Pennsylvania’s roughly 816,000 registered medical cannabis patients, caregivers and businesses, according to a press release from the PCC. These issues include medical cannabis accessibility, as well as adult-use legalization.
“As the national conversation about fully legalizing cannabis amplifies, it’s crucial that Pennsylvania cannabis voters use their voice and vote with their feet on medical marijuana patient access and potential legalization,” PCC Executive Director Meredith Buettner said in a public statement.
The survey’s results reveal that 16 Democrat and 10 Republican Senate candidates support medical cannabis, with eight Democratic candidates signaling support for adult-use cannabis legalization.
Multistate cannabis operator Curaleaf will pay out another $100,000 over mislabeled products that the company released in Oregon last year.
The multistate operator already settled 10 lawsuits in January and agreed in August to a $130,000 fine and 23-day license suspension in Oregon, according to an OregonLive report. Now, Curaleaf will pay an additional $100,000 to settle a separate class-action lawsuit stemming from the blunder.
RELATED: Oregon Cannabis Customers Can Collect $200 Per Claim Over Select Brand’s Mislabeled Product Settlement
The Oregon Liquor and Cannabis Commission (OLCC) issued a recall in September 2021 for a product produced by Cura CS, LLC and sold under Curaleaf’s Select brand. The product was labeled as a hemp-derived CBD tincture but actually contained “undisclosed levels of THC,” according to an OLCC press release announcing the recall.
The OLCC then expanded the initial recall a few days later to include a Select tincture that was labeled as containing 1,000 mg of THC because the drops did not actually contain any detectable THC.
The transformative deal is expected to connect Flora Growth’s Colombian-grown cannabis directly with German-based pharmaceutical and medical cannabis distribution.The deal would establish a foothold in Germany for medical cannabis sales across 1,200 pharmacies and the distribution of pharmaceutical products across 28 countries. This deal would provide additional upside to Flora should Germany proceed with the legalization of adult-use cannabis.Franchise Global Health reported revenue of approximately CA$30.1million (US$23.4 million) for the six months ended June 30, 2022. Total aggregated reported revenues of Flora Growth and Franchise Global Health Inc. for the six months ended June 30, 2022, were US$38.6 million.The proposed all-stock acquisition of Franchise Global Health Inc. will result in the indirect acquisition of its subsidiaries, including the Hilzingen-based Phatebo GmbH, a leading distributor of export pharmaceuticals and medical cannabis products to the European Union and ACA Müller ADAG Pharma Vertriebs GmbH (ACA Müller), which holds the first German medical cannabis import and distribution license, granted in 2017.
FORT LAUDERDALE, Fla. & TORONTO, Oct 24, 2022 – PRESS RELEASE – Flora Growth Corp., a leading all-outdoor cultivator, manufacturer and distributor of global cannabis products and brands, announced that it has signed a definitive agreement to acquire 100% of Franchise Global Health Inc. (FGH), a multinational operator in the medical cannabis and pharmaceutical industry, with principal operations in Germany.
“Through this proposed acquisition, we are connecting our commercial infrastructure and medical cannabis product portfolio to the German and EU medical markets, while gaining direct access to European pharmaceutical distributions,” said Luis Merchan, chairman and CEO of Flora Growth. “We believe Franchise will significantly increase our commercial international revenue and provide essential distribution to German pharmacies and a growing wholesale market.”
FGH’s German reportable segment achieved revenues of CA$30.1 million, gross profit of CA$2.1 million and net income of CA$0.4 million in the first half of 2022. FGH’s German businesses operate primarily in the export pharmaceutical and medical cannabis import and distribution markets, servicing 1,200 pharmacies in Germany and providing non-cannabis medical products to 28 additional countries.
This acquisition is expected to accelerate Flora’s expansion into the European cannabis and pharmaceutical markets with prescription medicines and would provide the company with immediate access to a wealth of knowledge and intellectual property that FGH has developed, including 41 registered cannabis strains in Colombia and the first registered cannabis seed bank in Copenhagen, Denmark, housing 286 strains. The proposed acquisition would further allow Flora to expand its CBD business in Europe by utilizing FGH’s distribution and logistics capabilities.
The combination of Flora and FGH is expected to deliver at least US$3 million of annualized cost synergies within the first year following the completion of the acquisition, primarily in the areas of reduced corporate administrative expenses.
After serving roughly two and a half years as the cannabis program supervisor in Portland, Ore.’s Office of Community & Civic Life, Dasheeda Dawson, who has more than a decade of development, strategic management and brand marketing experience, has returned to her home state—and home city—to serve as the director of Cannabis NYC, New York City’s initiative aimed at supporting the burgeoning adult-use cannabis industry.
Housed within the NYC Department of Small Business Services (SBS), Cannabis NYC will work to support the creation of jobs, small businesses and economic opportunity through strategic outreach, public engagement, business services and advocacy efforts—all while trying to address the harms of the war on drugs.
Dawson admits that she has her work cut out for her in her new role, which will not only support cannabis businesses, but also consumers who are transitioning from the illicit, or legacy, market to the legal one.
“When we talk about transitioning [from] legacy to legal, I think sometimes people automatically go to the operators, the growers and the sellers, and they are important, but for every one grower or one seller, there [are] anywhere from 25 to 100 consumers,” Dawson says. “So, when we talk about legacy to legal, we’re also talking about getting those consumers to transition. That is the business case we need to solve for, and I don’t think any other regulatory market has ever attempted to do so. New York City, to me, with the amount of consumers we feel we have here in the unregulated market, it’s imperative that we do that to be a successful industry.”
This is a developing story. The Florida Department of Health has not yet responded to Cannabis Business Times’ request for comment.
Following Green Thumb Industries (GTI) and Circle K’s partnership announcement last week, Florida Department of Health officials told the Washington Examiner the state has yet to approve allowing consumers to purchase cannabis at gas stations and that the stores “remain subject to regulatory approval.”
“Florida has never approved a Medical Marijuana Treatment Center to operate out of a gas station,” a spokesperson from the Department of Health told the Washington Examiner.
The partnership would allow GTI, owner of RISE Dispensaries, to open 10 “RISE Express” dispensary locations adjacent to Circle K stores throughout Florida, Cannabis Business Times previously reported.
However, state health officials said, “the opening of RISE Express stores remains subject to regulatory approval, and sales will be exclusively to Florida patients with a valid medical marijuana identification card.”
]]>WAKEFIELD, Mass., Oct. 24, 2022 /PRNewswire/ -- PRESS RELEASE -- Curaleaf Holdings, Inc., an international provider of consumer products in cannabis, today announced the launch of Find, a cannabis flower brand designed to provide consumers with high-quality cannabis flower at an accessible price point. The company's latest product offering is now on shelves at dispensaries in Massachusetts and will expand to Arizona, Illinois, Maine, Missouri, New Jersey, New York and Pennsylvania in the coming months.
Find offers a variety of affordable, high-quality everyday flower products for cannabis consumers. At launch, customers will have access to the brand's strain-specific pre-rolls and whole flower. Available in bulk quantities, those who prefer to roll their own can also choose from a selection of small flower and pre-ground offerings. Find is currently available in the following formats:
Find Flower: whole and hearty strain-specific buds; available as 1oz, 1/2oz, 1/4oz and 1/8oz. Find Popcorn: small strain-specific buds; available as 1oz and 1/2oz. Find Shake: pre-ground and ready to roll; available as 1/4oz. Find Pre-Rolls: convenient strain-specific flower available as 1g singles and 10-packs."We're excited to welcome Find into our brand portfolio as the medical and adult-use flower markets continue to mature," said Matt Darin, CEO of Curaleaf. "With Find, we're expanding our reach by providing affordable, high quality flower for patients and customers at all stages of their cannabis journey."
Find is now available at dispensaries across Massachusetts and will expand to Arizona, Illinois, Maine, Missouri, New Jersey, New York and Pennsylvania in the coming months. For more information on product availability, please visit www.findyourflower.com.
]]>Another wave of cannabis policy reform is expected next month as voters in five states—Arkansas, Maryland, Missouri, North Dakota and South Dakota—will make their voices heard on adult-use legalization on Election Day, Nov. 8.
It’s been a long road up to this point, with court challenges threatening to knock the cannabis measures off the ballot in Arkansas and Missouri, and South Dakota advocates paring down their initiative after the state’s Supreme Court overturned an adult-use legalization measure that passed in the 2020 election.
Adult-use legalization campaigns in three other states—Ohio, Oklahoma and Nebraska—tried and failed to land their initiatives on the 2022 ballot and are now looking to future elections.
Here, we take a look at the five measures that are set to go before voters next month.
Arkansas (adult use):
Measure: Issue 4
Washington, D.C. residents 21 and older can self-certify as medical cannabis patients in the district and now, tourists can, too.
Mayor Muriel Bowser signed the Medical Marijuana Patient Access Extension Second Emergency Amendment Act of 2022 into law Oct. 17 to amend the district’s medical cannabis program to allow non-residents 21 and older to self-certify for temporary medical cannabis recommendations.
The move follows legislation that Bowser signed into law in July that allows D.C. residents 21 and older to self-certify their eligibility for the district’s medical cannabis program.
Non-residents can now access an online medical cannabis recommendation application through the Alcoholic Beverage Regulation Administration (ABRA) here.
This is a developing story. The defendants have not yet responded to Cannabis Business Times’ requests for comment.
A class action lawsuit alleges that DreamFields Brands Inc. and Med For America Inc., which “make, sell, and market the ‘Jeeter’ brand of ‘prerolls,’” have labeled products as having higher THC percentages than those products contain.
The law firm Dovel & Luner represents plaintiffs Jasper Centeno and Blake Wilson, who the complaint states both purchased mislabeled Jeeter products at California dispensaries.
The lawsuit refers to a report by industry publication WeedWeek published in September, which states that two diamond-infused prerolls tested by the news outlet had “implied THC inflation” of 70% to 100% and 28% to 42%, respectively. These were two of nine prerolls tested by independent labs that have been vocal about the issue of potency inflation in the cannabis industry. Jeeter was one of two companies that agreed to a second test by WeedWeek and reimbursed its editor and publisher, Alex Halperin, for the cost of the products.
The complaint points to WeedWeek’s findings that both Jeeter prerolls tested had allegedly contained THC percentages that fall outside of the 10% margin of error permitted by California Department of Cannabis Control regulations.
The complaint states: “For example, the Baby Jeeter Fire OG Diamond Infused 5-Pack Preroll was listed as having 46% THC on the label. Independent lab testing showed, however, that the actual THC content of the product was substantially lower, between 23-27% THC. Thus, the THC content was overstated by 70-100%—substantially more than the 10% margin of error allowed under the California regulations.”
A poll by USA Today/Ipsos conducted Oct. 7-9 shows that two-thirds of American adults aged 18 years and older support President Joe Biden’s three-step cannabis reform plan.
Biden announced his three-step cannabis reform plan Oct. 6, which includes pardoning all federal offenses for simple cannabis possession, requesting a review of how cannabis is scheduled under the Controlled Substances Act, and urging governors to pardon state-level offenses of simple cannabis possession.
Ipsos interviewed 283 Republicans, 325 Democrats, and 315 independents online across the U.S., Alaska and Hawaii for the study. The results show the average percentage among all respondents and individual percentages for Republicans, Democrats and independents.
Nearly three-quarters (72%) of total respondents support changing how cannabis is classified under federal law and removing it as a Schedule I drug, while roughly two-thirds (67%) of total respondents support pardoning or forgiving all prior federal convictions for cannabis possession.
RELATED: Cannabis Industry, Lawmakers React to Biden's Federal Cannabis Policy Reform Efforts
Forty-four percent of Republicans responded in favor of governors pardoning or forgiving state-level convictions for cannabis possession compared to Democrats at 83% and independents at 71%. Eighty-one percent of Democrats support releasing individuals in federal jail who are serving time for using or possessing cannabis, similar to independents at 72% and nearly double compared to Republicans at 42%
Pennsylvania regulators voted Oct. 20 to approve final rules for the state’s six-year-old medical cannabis program, which was passed into law in 2016 and has been operating under temporary regulations since sales launched in early 2018.
The Independent Regulatory Review Commission voted 4-0 Thursday to approve the final regulations after hours of debating a controversial testing provision, according to the Pittsburgh Post-Gazette.
The testing rules require medical cannabis cultivators to 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, the news outlet reported.
While trade groups have opposed the provision, arguing that testing twice is meaningless, officials from the Pennsylvania Department of Health claimed that the rule would prevent growers from using labs that provide inaccurate or purposely altered results, according to the Pittsburgh Post-Gazette.
