MjLink Cannabis Business News and Press

President Joe Biden announced Oct. 6 that he has crafted a three-step plan to help fulfill his campaign promise of federal cannabis policy reform—and reactions to the news have since poured in from across the country.

As Cannabis Business Times reported, Biden's plan includes pardoning all federal offenses of the simple possession of cannabis, urging all state governors to pardon state-level offenses of simple cannabis possession, and asking Secretary of Health and Human Services Xavier Becerra and Attorney General Merrick Garland to initiate an administrative process to review how cannabis is scheduled under federal law.

Industry reactions to Biden's statement have been mostly positive, although some have argued that the proposal still does not go far enough to end the war on drugs and address the obstacles that state-licensed cannabis businesses face in their daily operations due to the conflict of federal and state laws.

Here, CBT has rounded up some of the reactions from lawmakers and industry on Biden's statement.

PRESS RELEASE - The list for pesticides that can be used on cannabis without being a violation of the Pesticide Applicators' Act has been updated. Please note the following products have been added:

To view the updated list, click here for a pdf or click here for an Excel form. For questions regarding this change, contact Jolynn Morris at (303) 869-9060 or email [email protected].

The Colorado Department of Agriculture (CDA) is currently reviewing pesticide labels upon request and maintaining a list of products whose label it has reviewed that it believes could be used on marijuana without violating 35-10-117(1)(i), as long as the applicator follows the label directions.

Please be sure to review the list; pesticide products may be removed from the allowed products list if the registrant has not renewed their pesticide product with the department. Use of unregistered pesticides on cannabis would be a violation of the Pesticide Applicators' Act.

Stay Informed

President Joe Biden announced Oct. 6 the first steps toward fulfilling his campaign promise of federal cannabis policy reform.

“As I often said during my campaign for President, no one should be in jail just for using or possessing marijuana,” Biden said in a public statement. “Sending people to prison for possessing marijuana has upended too many lives and incarcerated people for conduct that many states no longer prohibit. Criminal records for marijuana possession have also imposed needless barriers to employment, housing, and educational opportunities. And while white and Black and brown people use marijuana at similar rates, Black and brown people have been arrested, prosecuted, and convicted at disproportionate rates.”

The first step in Biden’s three-step plan is pardoning all federal offenses of the simple possession of cannabis, according to the statement.

“I have directed the Attorney General to develop an administrative process for the issuance of certificates of pardon to eligible individuals,” Biden said. “There are thousands of people who have prior Federal convictions for marijuana possession, who may be denied employment, housing, or educational opportunities as a result. My action will help relieve the collateral consequences arising from these convictions.”

Second, Biden is urging all state governors to pardon state-level offenses of simple cannabis possession.

“Just as no one should be in a Federal prison solely due to the possession of marijuana, no one should be in a local jail or state prison for that reason, either,” he said.

Paula Overby, running for the U.S. House on the third-party Legal Marijuana Now ticket in Minnesota’s 2nd Congressional District, died Oct. 5.

Overby, 68, died of complications from a heart valve problem after two weeks in the hospital, her son, Tyler Overby, told the media, The Associated Press reported.

Overby was one of three major-party candidates in Minnesota’s 2nd District—one of the most hotly contested districts in the U.S.—which includes Democratic incumbent Rep. Angie Craig and Republican challenger Tyler Kistner. A two-term congresswoman, Craig defeated Kistner, 48.2%-46%, in the 2020 election. It was the closest congressional race in the state that year.

Overby, who previously ran for the 2nd Congressional District as an Independent in 2014, was expected to shake up the mostly suburban seat’s 2022 race, which Republican National Committee Chair Ronna McDaniel said Oct. 4 was projected to be the second-most expensive congressional contest across the entire country in 2022.

As of the end of June, Craig’s reelection campaign had $4.7 million in the bank, the AP reported. That hefty financial support from mostly small donors comes as Democratic strategists warn that third-party candidates, like Overby, could serve as “spoilers” by drawing voters away from Democrats like Craig, who supports cannabis legalization.

As a third-party candidate, Overby was running on a ticket with a primary platform to oppose drug prohibition. The Legal Marijuana Now Party was established in 1998 in St. Paul, Minn., and became a major party in the state in 2018, when state auditor candidate Michael Ford received 5.3% of the vote. 

Patient satisfaction with the Ohio Medical Marijuana Control Program (OMMCP), which recently hit $1 billion in sales, seems to be improving, according to a recent report from The Ohio State University’s Drug Enforcement and Policy Center and the OMMCP. The report, “Ohio Medical Marijuana Control Program at Four Years: Evaluating Satisfaction and Perception,” surveyed more than 2,500 people and found, for the first time in the history of the four-year report, more respondents are satisfied with the state’s medical program than not.

“For the first time in four years, patients and prospective patients of the [OMMCP], have expressed higher levels of satisfaction than dissatisfaction suggesting that as OMMCP matured, Ohio has successfully improved its existing program to garner a growing level of general satisfaction,” the report states.

While patients were generally satisfied with product safety, patient experience and dispensary access, participants noted concerns over pricing and protections for employees using medical cannabis.  

When ranking a series of statements on a scale, more than 50% of survey participants responded “Strongly Agree” to the following: “I trust the safety or products available in legal dispensaries,” “Dispensary employees support a positive patient experience in the purchasing of medical marijuana products” and “Legal dispensaries make medical marijuana easily accessible for me.”

However, more than 50% of survey participants also agreed with the statements “The price of marijuana in legal dispensaries is too high,” “Patients are not given legal protections for employment” and “Self-cultivation is not permitted (home grow)."

The number of active patients in the program increased 44% from 107,134 to 154,614 between August 2021 and August 2022, according to the report. However, according to the OMMCP, there are 278,902 unique patients who have purchased cannabis during the life of the program, which launched in January 2019, suggesting that not all are renewing their medical cards. Patients must update their medical cards yearly by getting a new recommendation from an approved provider and paying a fee.

The Connecticut Department of Consumer Protection (DCP) announced Oct. 5 that it has opened the process for three cannabis product packager applicants to advance in the licensing process.

The Social Equity Council approved Charles W. Jackson, Bay Breeze Botanicals Inc. and Dutch LLC through the state’s Social Equity Lottery, and the applicants have been notified by the DCP that they can complete the next steps for licensure.

The three applications represent the maximum number of Social Equity Licenses available for the product packager license type in the first lottery round, according to the announcement, although additional licenses will be available in future lotteries.

The approved applicants must now submit additional information for the required background check and provisional license application, which the DCP will review. Qualifying applicants must then pay the required licensing fees and proceed with the next phase of licensure.

The remaining social equity applicants that were not selected in the Social Equity Lottery will be added to Connecticut’s General Lottery, which will be conducted by the UConn School of Pharmacy.

NEW YORK--(BUSINESS WIRE)--PRESS RELEASE--Columbia Care Inc., one of the largest and most experienced cultivators, manufacturers and providers of cannabis products in the U.S., announced it has launched its new cannabis-infused edibles brand, Hedy, in six markets. A variety of fast-acting chocolates and gummies are now available in Arizona, Colorado, Delaware, Massachusetts, Missouri and Virginia.

“We are so excited to bring Hedy to life and share with our patients and customers across the country. Our team wanted to create a brand, as well as a bright, fun and inviting visual representation that truly reflects the uplifting edibles experience,” said BJ Carretta, SVP of Brands, Columbia Care. “Everything from the packaging to the flavors, and eventually the various forms underneath the brand, are all part of this authentic interaction with Hedy. We developed the brand in coordination with our cultivation and marketing teams, using insights generated from our unique technological platforms, such as Forage, that help us better understand what our community is looking for. We believe this is the right product to meet our patients and customers where they are in their cannabis journey, with an approachable form factor that is of the highest quality and designed to provide a consistent experience, no matter the market.”

In its first six markets, Hedy gummies will be available in three flavors: cherry lime, green apple and watermelon. Colorado has also launched chocolate drops. The 5mg or 10mg THC gummies come in packages of 10 or 20, depending on the market, and are powered by leading edibles ingredient company Azuca and its fast-acting TiME INFUSION formulations to provide quick-onset in 5-15 minutes.

In the coming months, the company will introduce more options, and will have Hedy available in more markets. Additionally, existing Columbia Care edible brands such as NectarBee, will be converting to the Hedy brand over time.

For more information about Hedy, visit www.hedyedibles.com.

CLACKAMAS, Ore., Oct. 6, 2022 /PRNewswire/ -- PRESS RELEASE -- Wyld, a cannabis edibles brand in the U.S., is expanding its family of brands with the launch of Good Tide. The solventless hash rosin edible brand will be available in Oregon, California and Colorado markets in fall 2022.

Good Tide gummies are made with premium solventless hash rosin that delivers a true-to-plant high. The rosin includes naturally occurring terpenes and minor cannabinoids from the cannabis plant which harmonize with the tropical real-fruit ingredients to create a delicious, full spectrum experience. Good Tide offers a trio of irresistible vegan flavors including Mango, Guava and Pineapple.

"Wyld is proud to welcome Good Tide to our portfolio. Not only does Good Tide perfectly complement Wyld's current offerings, it meets our sustainability initiatives. This brand is Climate Neutral Certified, produced with a carbon neutral footprint, 100% renewable energies, and comes with a customized plastic-free, fully recyclable, and compostable packaging," said CEO Aaron Morris. "We are excited for this solventless addition and to keep pushing our internal sustainability standards to new levels. I can't wait to share with you all our efforts rolling out in 2023!"

Good Tide is here to have fun, do good and make waves. By staying true to what they believe in with their products and approach, Good Tide challenges norms and sets the bar higher. Take a tropical vacation and enjoy all that cannabis has to offer.

For more information regarding Wyld's newest venture, Good Tide, and its latest product offerings, please visit GoodTideCannabis.com.

MIAMI, Oct. 06, 2022 (GLOBE NEWSWIRE) -- PRESS RELEASE -- Ayr Wellness Inc., a vertically integrated U.S. multi-state cannabis operator (MSO), is announcing the rollout of its premium live resin concentrates and vapes brand HAZE in Florida.

Having recently celebrated surpassing 50 retail stores throughout Florida, the introduction of Hydrocarbon Extraction products to its menus marks another major milestone for Ayr in the Sunshine State.

“Ayr has carefully crafted a brand portfolio that appeals to a wide array of consumers throughout the value spectrum, providing quality products at every price point,” said Jonathan Sandelman, founder and CEO of Ayr. “HAZE represents a premium experience at an attractive price point, enabled by the cultivation and production improvements since we took over the Liberty Health Sciences’ Gainesville facility last year.”

HAZE premium live resin concentrates and vapes are formulated for rapid onset and deliver a full-sensory experience. Products available at launch include live resin vape cartridges, live badder and live sugar. Strains include WAP #27, Caesar, 8” Bagel, Gorilla Glue, Mr. Nasty and Ruby Slippers.

Following Hurricane Ian, 47 of Ayr’s 51 Florida stores are currently open, and the company’s Bonita Springs store will reopen on Friday, Oct. 8. In an effort to ensure medical marijuana patients have access to medicinal treatments, the company is actively working to reopen locations in Cape Coral, Port Charlotte, and Sebring once it is safe and compliant to do so.

CHICAGO and VANCOUVER, British Columbia, Oct. 6, 2022 – PRESS RELEASE – Green Thumb Industries Inc., a leading national cannabis consumer packaged goods (CPG) company and owner of RISE Dispensaries, announced that Richard Drexler, a proven financial executive who currently serves as chairman of the Audit and Finance Committee at Bison Gear and Engineering and previously served as CEO and chairman of the board at Quality Products, and Jeff Goldman, a seasoned entrepreneur with expertise in CPG brand-building, will join the company’s board of directors. Drexler will assume the role of chair of the Audit Committee in this new capacity.

The appointments follow the resignation of three board members: William Gruver, Glen Senk and Dorri McWhorter. The resigning directors informed management that their cause for resignation was not related to Green Thumb’s business performance, operations, financial performance, financial statements or financial controls, but rather over a disagreement as to the company’s policies and practices related to personal misconduct. It became clear that the former directors and existing management could not find a resolution satisfactory to all parties.

“There comes a time in a company’s evolution that a change in leadership is required, and we regret that there was an impasse with the former board members,” GTI Chairman and CEO Ben Kovler said. “There are massive opportunities in front of us, and we now have a board aligned with management to provide increased shareholder value. As we enter this next phase for the company, Richard’s financial discipline and Jeff’s strategic brand experience will help us continue to win as we deliver on our long-term vision.”

Drexler was CEO and later board chairman at Quality Products, a manufacturer and distributor of products for aircraft ground support equipment for the military and hydraulic machine tool markets. Under his leadership, Drexler orchestrated strategic changes that pulled the company out of debt and resulted in significant positive cash flow. In addition to his role at Quality Products, Drexler held senior advisory roles at several multimillion dollar manufacturing and product companies.

“GTI has proven itself as a truly remarkable cannabis company with a strong purpose,” Drexler said. “I am thrilled to join Ben and the team at such a pivotal time and drive growth and operational excellence as we help deliver on the company’s growth strategies to maximize shareholder value.”

Goldman is a brand veteran and seasoned entrepreneur who has operated and scaled multiple CPG businesses. Under his leadership, Goldman has grown Carol’s Cookies, a family-owned business founded by his mother in 1979, into a multimillion dollar, nationally distributed brand by successfully partnering with Fortune 500 companies such as Whole Foods Market and Sysco Foodservice. In addition to his role with Carol’s Cookies, Goldman was the owner and operator of Reed-Union Corp., known for the top-selling automotive appearance brand in North America, Nu Finish. As the head of domestic and international sales, Goldman forged partnerships with Fortune 100 companies such as Walgreens, Target, Walmart and AutoZone. In 2018, Goldman orchestrated the sale of the company’s brands to Energizer Holdings.

Las Vegas, NV, September 21, 2022 — PRESS RELEASE — Eteros Technologies USA, Inc., a provider of post-harvest cannabis automation equipment, announced the success of its court case regarding the authorization exemption of 21 U.S.C. Section 863(f)(1) of the Controlled Substances Act (CSA). This was a case of first impression never before decided by a Federal or State court. It sets an important precedent for international trade in cannabis paraphernalia, recognizing that States’ authorization of persons to manufacture, distribute or possess cannabis paraphernalia triggers the “authorization exemption” which allows the importation of such products into the United States. The decision effectively instructs U.S. Customs and Border Protection (CBP) to permit the importation of cannabis paraphernalia into states that have legalized the manufacture, distribution, and possession of such items. With the cannabis market estimated at $38.8B in 2023 and multi-state operators' capital expenditures representing up to 30% of revenue, this decision could impact billions of dollars of cannabis equipment imports annually.

Eteros traces its roots back to Surrey, British Columbia when in 2016, founder Aaron McKellar and a core group of engineers from diverse backgrounds and a passion for innovation and “divergent thinking” began manufacturing equipment for Canada’s newly legalized cannabis industry. In 2019, Eteros, the parent company of the Mobius and Triminator brands, expanded sales from Canada into the US to help support farmers growing now federal-legal hemp and the growing market of state-legal cannabis.

Illinois’ cannabis retailers are still ringing up in excess of 3 million items per month for adult-use customers, but the state’s traffic volume and overall sales figures haven’t fluctuated much since March.

Licensed dispensary operators recorded nearly $130.7 million in adult-use sales in September, representing a 7.4% increase from last September, according to data from the Illinois Department of Financial and Professional Regulation (IDFPR). But that figure almost mirrors the $131 million in sales from March, representing a seven-month plateau for the retail market.

Since March, adult-use sales peaked at $135.7 million in July but haven’t dipped below $126.8 million. Despite the flatline, the state’s monthly sales average in 2022 remains 10.8% higher than in 2021.

Overall, Illinois retailers have sold more than $1.1 billion in adult-use cannabis so far in 2022 and nearly $3.2 billion since commercial adult-use sales launched on Jan. 1, 2020.

But with nearly one-third of Illinois’ sales coming from out-of-state residents, monthly figures could soon decline if Missouri voters pass an adult-use legalization measure next month.

The Buckeye State approves of cannabis.

At least that’s what results from a recent poll indicate, reporting 60% of Ohioans support legalizing adult-use cannabis while 37% oppose.

The poll, conducted by Spectrum News in partnership with the Siena College Research Institute, surveyed respondents on a number of political issues, including adult-use cannabis legalization. The data broke down respondents into a number of demographics, including political party, gender, ethnicity, region, education, and income.

By political party, 79% of Democrats support adult-use cannabis legalization, compared to 40% of Republicans approving. In contrast, 19% of Democrats oppose legalization, compared to 57% of Republicans.

There were also notable contrasts among ethnicities and income.

Sixty-nine percent of African American/Black respondents support adult-use legalization, compared to 57% of White respondents.

CALIFORNIA – The California Department of Cannabis Control (DCC) is soliciting proposals for academic research projects that advance public understanding of cannabis and its legalization. DCC will fund up to $20 million in cannabis-related academic research by California public universities and is prioritizing topics that will be instrumental in addressing gaps in scientific knowledge and guiding future policy decisions.

For the first time, DCC has identified specific research topics that will be prioritized for grant funding, which will advance understanding of cannabis, address existing research gaps, and inform policymakers. The prioritized topics examine cannabis potency and health impacts, the health of California’s cannabis industry, monopolies and unfair competition, legacy cannabis genetics, and medicinal use of cannabis.

Researchers will be required to make research findings available to the public, at no cost, in order to promote more rapid enhancement of scientific understanding of topics researched.

Read the complete list of priority research topics, the Request for Proposals and more information about the grant funding opportunity on the DCC website.

“California continues to direct millions of dollars to accelerate scientific understanding of cannabis and evaluate the impacts of legalization. Decades of federal cannabis prohibition has hindered our collective knowledge related to these issues, to the detriment of consumers, communities, our environment and more,” said Nicole Elliott, DCC director. “Our hope is that research resulting from these grants proves beneficial not only to California policymakers but also to those across the nation and world.”

The priority research topics were developed in consultation with other California state agencies that oversee cannabis activities and were selected to inform future policymaking and better preserve California’s historical information.

Charlotte’s Web Holdings, a producer and distributor of hemp-derived CBD products, announced that it has partnered with Gopuff, a Philadelphia-based consumer goods and food delivery company.

The partnership allows consumers in select areas in Arizona, Illinois, California, and New York to purchase Charlotte’s Web full spectrum hemp CBD products, including its gummy line, oil tinctures, topical balms and creams, and pet products for immediate delivery through Gopuff, according to a press release.

Gopuff has more than 500 locations and offers over 4,000 products for delivery to consumers in roughly 30 minutes. Some of the products Gopuff offers range from food, pet products, cleaning supplies, office supplies and more.

RELATED: Reflecting on 10 Years in the CBD Industry

Charlotte’s Web also has plans to eventually offer its products on Gopuff at additional locations in the future, according to the release.

“In the United States, consumer access to hemp wellness is still in its infancy,” said Jacques Tortoroli, Charlotte’s Web chief executive officer. “Our mission is to make CBD broadly available, accessible,–and convenient. With Gopuff, we are making access more convenient than ever with instant delivery for our consumers. So, whether it’s a sudden need for Charlotte’s Web sleep, stress or recovery gummies, soothing CBD oils or topicals, or even calming pet chews for an overly excited canine, Gopuff can help us answer the call–in minutes. For Charlotte’s Web, this is yet another example of our commitment to expand our customer portfolio as the market leader and penetrate new industry verticals.”

Legacy growers in three of Morocco’s northern provinces can now legally cultivate cannabis for industry and export under the oversight of the National Agency for the Regulation of Cannabis Activities.

The North African country’s government officials issued 10 licenses to farmers in the northern regions of al-Hoceima, Chefchaouen and Taounate, where they will be allowed to produce and sell cannabis for medical, pharmaceutical and industrial use following a new law parliamentary leaders passed last year, Reuters reported. Adult-use cannabis remains prohibited.

The 2021 law was intended to improve the impoverished mountainous regions of Morocco, where cannabis has been grown for centuries, but was banned in 1954, and to protect the local farmers from drug traffickers who control the trade and export it illegally to Europe, according to the news source.

In Morocco’s illicit market, northern region farmers earn roughly 4% of the crop’s end value. Government officials claim a regulated market will allow those farmers to earn 12% under the new law, according to a report from Cannavigia, a Switzerland-based compliance software company that helps track and trace cannabis along the supply chain in Europe.

The law also recommends that farmers set up cooperatives in the northern provinces to help take charge of signing contracts with manufacturers to help preserve their rights, practice sustainable agriculture and to acquire quality seeds, according to Cannavigia.

The Moroccan government estimates at least 60,000 families living on 55,000 hectares (roughly 212 square miles) depend on cannabis cultivation in the harsh growing environment of the country’s northern mountainous region, where other crops are not viable.

Here is the banner news: Germany, Europe’s largest economy (and the world’s fourth largest), is moving forward on full cannabis legalization. It is also not the only country in Europe to do so.

Here is the catch: Full legalization and market start is not going to be fast, or easy, anywhere. This includes Deutschland, where there has been an unsurprising temporary backlash from conservative politicians, mostly from the Christian Democratic Union (CDU) and all hailing from Bavaria—or as it is referred to here—the Texas of Germany.

Yet despite all the potential hurdles, the messaging coming from Berlin right now is that while it will be tricky, recreational cannabis reform is certainly feasible. And it will happen, sooner rather than later.

RELATED: European Cannabis Regulators Ease Restrictions in Preparation of EU Green Wave

The Largest Issues

The biggest problem European countries face is moving forward on a sovereign level while also updating EU regulations about the same. The EU as a region is committed to complying with international law, generally. This includes the mandates on cannabis set out in both the 1961 Single Convention on Narcotic Drugs and the 1971 Convention on Psychotropic Substances.

A pair of congressmen have introduced legislation to crack down on the use of banned pesticides at illicit cannabis grows.

U.S. Reps. Doug LaMalfa, R-Calif., and Scott Peters, D-Calif., have filed the Targeting and Offsetting Existing Illegal Contaminants (TOXIC) Act to help combat the environmental damage caused by illegal cultivation sites, according to a press release from LaMalfa’s office.

The legislation would also increase criminal penalties for those who grow cannabis illegally on federal property using banned pesticides, according to the announcement.

“Illegal marijuana grows have brought dangerous cartels into our rural towns, terrorizing residents and decimating our landscape,” LaMalfa said in a public statement. “The banned pesticides they use on their product seep into the soil and watershed, poisoning wildlife and endangering residents who inadvertently consume it. Everyone; outdoor enthusiasts, nearby residents on their own land, wildlife, Forest Service and law enforcement personnel are all at risk. The TOXIC Act is necessary to criminalize those who cause damage to our public land with banned chemicals and helps remedy the environmental impacts.”

The bill would do the following, according to the press release:

The Washington State Liquor and Cannabis Board (WSLCB) is seeking members for its Cannabinoid Science Work Group (CSWG).

The group of experts will meet at least every other month, and will provide regular feedback about issues related to cannabinoids in the state, according to the Mercer Island Reporter.

The CSWG’s ultimate goal is to build a fundamental understanding of the cannabis plant and the synthetic equivalents of its naturally occurring cannabinoids, the news outlet reported.

Kathy Hoffman, the WSLCB’s policy and rules manager, will co-chair the CSWG with one other member of the group, which will include the following, according to the Mercer Island Reporter:

Those interested in applying to the CSWG should email Hoffman at [email protected]. Applications will close Oct. 24, according to the Mercer Island Reporter, and applicants chosen to serve on the work group will be notified via email in mid-November.

Massachusetts-based multistate cannabis operator Curaleaf announced Oct. 5 the completion of its previously announced acquisition of Tryke Companies (doing business as Reef Dispensaries), a privately held vertically integrated operator.

The transaction’s closing means Curaleaf’s national footprint now includes 29 cultivation sites and 144 dispensaries in the U.S., with key growth in the Arizona, Nevada and Utah markets.

“We are pleased to welcome Tryke to the Curaleaf family as we expand our operations and bolster our competitive position in three key growth markets,” Boris Jordan, founder and executive chairman of Curaleaf, said in a press release. “This strategic transaction expands our U.S. presence and yields meaningful benefits for all of our stakeholders. The acquisition is immediately accretive to our EBITDA margins and free cash flow generation.”

The Curaleaf-Tryke deal comes after Cresco Labs announced its intentions to acquire Tryke in September 2019 in a deal that included $282.5 million in considerations—roughly $252.5 million for Tryke’s operating assets plus $30 million for the company’s real estate assets. But that deal was terminated in April 2020.

RELATED: Cresco Labs Announces Mutual Agreement to Terminate Purchase Agreement with Tryke

In November 2021, Curaleaf announced its intentions to acquire Tryke in a cash and stock transaction that was valued at approximately $286 million at the time.