MjLink Cannabis Business News and Press

Consumer insights and market intelligence firm Brightfield Group focuses on the potential effects of U.S. Food and Drug Administration (FDA) regulation of CBD—or the possible lack thereof—in a new mid-year report titled, “CBD: FDA Impact & The Path Forward.”

In 2022, Brightfield forecasts that the U.S. hemp-derived CBD market will reach $5 billion in retail sales, without FDA involvement this year, according to the report.

If the FDA begins regulating CBD by 2024, retail sales of the product could reach $11 billion in 2027, according to Brightfield, per the report. Without FDA regulations, the data company expects that 2027 figure to be more than $6 billion.

The increase in sales that Brightfield predicts if FDA guidance occurs would be “driven by accelerated growth of ingestible products like capsules and gummies as well as increased acceptance by mainstream retailers,” according to the report.

And with a 2024 start for FDA guidance, the compound annual growth rate (CAGR) for the market for the years 2022 to 2027 could reach more than 40% for mass merchandiser and club as well as grocery distribution channels, Brightfield states.

If there is no FDA regulation, Brightfield predicts the highest CAGR percentages for those years to be for mass merchandisers and club, and pharmacy, channels—but with a CAGR under 10%.

Officials from the Connecticut Department of Consumer Protection (DCP) released the names of 16 adult-use cannabis cultivation license applicants on July 19 that they plan to move forward with in a review process.

The announcement came a week after the 16 businesses were approved by the state’s Social Equity Council for satisfactorily meeting the requirements set forth by state law to qualify for the Disproportionately Impacted Area (DIA) cultivator license type.

Selected from a pool of 41 applications—from a one-time application period of three months— the social equity licensees must own or control at least 65% of the qualifying business, as well as meet income and residency requirements outlined in the law. Specifically, individuals who applied for the licenses must have resided in a DIA for at least five of the past 10 years or at least nine years before the age of 18.  

“These important steps mean Connecticut cannabis cultivation will be primarily operated by people from those communities identified as disproportionately impacted by the war on drugs, who qualified as social equity applicants,” Gov. Ned Lamont said in a DCP press release Tuesday.

“While there is still a lot of work to be done, we are establishing Connecticut as a leader in addressing the inequities and injustices caused by cannabis prohibition,” he said. “We are ensuring those communities most harmed have an opportunity to be leaders in this newly regulated industry.”

The DIA businesses that were approved by the Social Equity Council and have been contacted by DCP officials for next steps in the review process include:

BALTIMORE, MD, July 20, 2022 – PRESS RELEASE – GreenLab Packaging provides innovative, advanced, and 100% USA-made liquid filling equipment while delivering the lowest cost of ownership to its partners.

“With experience working with highly regulated verticals like pharmaceuticals, cosmetics, and contract packaging, we leverage our network and industry knowledge, coupled with FILAMATIC’s innovative design and engineering for the benefit of our customers as well as the overall cannabis industry,” notes Dorjee Tenpa, Business Development, GreenLab Packaging.

July 20, 2022 – PRESS RELEASE – Canapa has announced that its JuanaRoll automated preroll machine is now available in eight different configurations to fill most every production rate need.

The JuanaRoll is the industry’s most flexible pre-roll machine with a straight-line design that allows users to expand production as needed. Customers can now start with a one-channel model and produce up to 4,000 prerolls in an eight-hour shift and then expand up to an eight-channel model or anything in between to produce up to 32,000 prerolls per eight-hour shift.

Featuring the most edge weight cell technology with 2/1000g resolution, an integrated PreCheQ check weigher and stations for compacting, tamping, twisting, trimming and crowning, this high-performance machine also includes no cone-no fill detection, a cone open camera vision system, and two digital cameras with free online support and training.

Big changes are coming to Minnesota’s medical cannabis program next month, when patients will be able to access edibles starting Aug. 1.

The change was approved last year, when the Minnesota Department of Health (MDH) announced that cannabis edibles and flower would be made available to the state’s patient base.

RELATED: Minnesota to Add Infused Edibles to Medical Cannabis Program

Minnesota’s dispensaries began selling flower March 1 as part of the rule change.

To access new product formats, such as flower and edibles, patients enrolled in Minnesota’s medical cannabis program must have a consultation with their dispensary, according to a local KSTP report, and patients are encouraged to set up an appointment ahead of Aug. 1 if they are interested in edible products.

Texas Agriculture Commissioner Sid Miller, a staunch Republican whose seat is up for election in November, came out in support of medical cannabis in a recent editorial, calling access to the plant a fundamental freedom. 

Texas is one of 13 states where medical cannabis is not fully legalized without low-THC restrictions. Texas does have a program, but that program includes a 1% THC cap on medical cannabis—toeing the line with the legal definition of hemp, which is 0.3% THC or lower.

An eighth-generation farmer and rancher, Miller is currently serving his second four-year term as commissioner of the state’s Agriculture Department after previously serving 12 years in the Texas House of Representatives.

“In a free society, government should only make something illegal for a powerful reason or set of facts,” he wrote in a July 15 editorial. “The freedom of the people to make their own choices and decisions is a fundamental [principle] of a true democracy.”

Miller compared policies on cannabis to the prohibition of alcohol in the 1920s, writing that the drug war has fostered gangs, corruption and widespread violence against the lives and liberties of American citizens.

“As I look back, I believe that cannabis prohibition came from a place of fear, not from medical science or the analysis of social harm,” he wrote. “Sadly, the roots of this came from a history of racism, classism, and a large central government with an authoritarian desire to control others. It is as anti-American in its origins as could be imaginable.”

[DETROIT, MICHIGAN, July 11, 2022] – Redbud Roots Inc. is proud to support Wayne State University on the “Wayne State Warriors Marijuana Clinical Research Program,” a five-year study investigating the impact of cannabinoids on the behavioral health of veterans.

This Veteran Marijuana Research Grant (VMR) funded study via the State of Michigan’s Cannabis Regulatory Agency (CRA) supports two large-scale randomized controlled clinical trials over five years that will evaluate the efficacy of cannabis and cannabinoids for improving behavioral health in U.S. military veterans living in Michigan. This project focuses on the potential for improving symptoms of posttraumatic stress disorder (PTSD), which affects up to 31% of U.S. military veterans. Importantly, veterans living with PTSD are at increased risk of suicide and other poor outcomes, such as depression, substance use disorders, sleep disturbances, and even cardiovascular events (e.g., stroke). In the latest annual report from the U.S. Veterans Health Administration, a staggering average of 17.2 veterans died by suicide per day in 2019.

“We are overjoyed to be working with Wayne State on this study” says Alex Leonowicz, co-founder and COO of Redbud Roots, Inc. “Veterans deserve full legal access to medical cannabis and anything we can do to help change this conversation – we’ll put our weight behind.”

Although medical cannabis use is permitted in 38 states, cannabis remains federally illegal and many veterans fear losing their benefits if they are found to be using cannabis. Veterans need and deserve as many safe and efficacious treatment options as can be identified to manage the mental and physical toll that military service can cause.

This important and timely project will provide much-needed scientific understanding of the potential risks and/or therapeutic benefits of cannabis and cannabinoids. In addition, given that this project is centered at Wayne State University in Detroit, Michigan, it has the potential to benefit veterans living in Michigan now and in the future. The project is led by clinician-scientists and Wayne State University faculty, Drs. Leslie Lundahl and David Ledgerwood. To learn more about the project, visit www.warriorcare.net.

Adult-use cannabis and medical cannabis are one in the same in Washington, D.C., since Mayor Muriel Bowser signed a law earlier this month to allow all adults 21 and older to self-prescribe medical cannabis and obtain a medical card with or without a doctor’s recommendation, and now the District is protecting workers who use cannabis legally.

Bowser signed the Cannabis Employment Protections and Amendment Act of 2022 into law July 13 to prohibit employers from firing workers for failed cannabis tests, as well as bar employers from firing or refusing to hire workers due to their use of medical or adult-use cannabis.

RELATED: D.C. City Council Approves Bill to Prohibit Employers From Firing Workers for Failed Cannabis Tests

The law includes exemptions for employers acting under federal guidelines, as well as for employees who consume cannabis at work or while performing work-related duties. It also does not cover employees in “safety-sensitive” occupations, including police, security guards, construction workers, health care employees, those operating heavy machinery and those who work for power and gas companies.

The law also exempts employees of the federal government and D.C.’s courts, although other D.C. government employees are covered.

BEND, Ore., July 20, 2022 /PRNewswire/ --PRESS RELEASE-- Dutchie — the technology platform powering cannabis commerce — today announced the launch of Dutchie Pay, a fully-integrated digital payment solution that dispensaries and consumers can trust. Dutchie Pay is designed to reduce reliance on cash by providing dispensaries and consumers a convenient and secure way to pay. A closed-loop automatic clearing house (ACH) solution, Dutchie Pay allows consumers to purchase their favorite cannabis products online while automating compliance so that dispensaries can focus on growing their business.

"Cash creates too many safety risks and is inefficient. Our industry cannot meet its full potential without modern payment solutions available at scale," said Dutchie Chief Product Officer and Co-Founder Zach Lipson. "Dutchie exists to create safe and easy access to cannabis. Dutchie Pay advances our mission by integrating a simple and secure product that makes cannabis purchases safer, easier, and more accessible for dispensaries and consumers alike."

Approximately 90% of all dispensary transactions are handled in cash, creating inefficiencies with operations and added safety risks. Providing modern payment solutions is one of the biggest barriers remaining to normalizing the cannabis shopping experience and is essential for the industry to better compete with the illicit market and provide local and state governments with even more critical new tax revenues.

For dispensaries, Dutchie Pay fully integrates with Dutchie's ecommerce and point of sale (POS) solutions, providing businesses with a single-vendor advantage to help streamline operations. Dispensaries no longer need to rely on multiple software providers and with this level of integration, retailers can significantly reduce human error, maximize sales, serve more customers, and generate more revenue. Dutchie Pay is immediately available to Dutchie customers across the United States.

For consumers, Dutchie Pay is a one-click digital payment option for cannabis products online and for delivery via a direct ACH bank transfer. Increasingly, consumers expect cashless, frictionless payment options free of ATM and additional service fees. Dutchie Pay allows consumers to quickly connect their bank account and pay directly at checkout.

Dutchie Pay launched in alpha and beta testing in Q1 and Q2 2022, and is already providing customers with tremendous benefits, including:

Three Arkansas residents have brought a federal racketeering lawsuit against four licensed medical cannabis companies operating in the state. The allegation: Those companies conspired to inflate THC levels on the labels of products sold to patients.

The companies in question are Bold, Osage Cultivation, Natural State Medicinal and, primarily, Steep Hill Arkansas (and its parent company Steep Hill Inc.).

The plaintiffs—Don Plumlee, Jakie Hanan and Pete Edwards—noticed over time “that some marijuana was more potent than others, despite being labeled as having similar amounts of THC,” according to the lawsuit, which was first reported by Law360. They independently tested product purchased at licensed dispensaries and found that THC levels were inflated by an average of 25%.

Read the full complaint below.

The RICO elements of this lawsuit come into play when the plaintiffs allege that the growers worked in concert with Steep Hill Arkansas to generate labels with higher THC results.

“Defendants used the telephone, email, or other communication facilities to take steps in furtherance of their efforts to unlawfully sell marijuana that had been mislabeled hundreds of times,” the lawsuit alleges. “The RICO defendants together formed an open ended association-in-fact enterprise for the purpose of cultivating marijuana in Arkansas and selling it to dispensaries in Arkansas for purchase by the plaintiff. To that end, they pooled their resources, knowledge, skills, and labor to achieve through the enterprise efficiencies in the cultivation and distribution of marijuana that none of them could have achieved individually.”

New York Gov. Kathy Hochul announced July 18 that the state will provide $5 million in grants to public colleges to fund cannabis education.

The grant funding, given to SUNY and CUNY community colleges, will help them establish credential programs or courses that will ultimately boost employment in New York’s cannabis industry.

“New York’s new cannabis industry is creating exciting opportunities, and we will ensure that New Yorkers who want careers in this growing sector have the quality training they need to be successful,” Hochul said in a public statement. “Diversity and inclusion are what makes New York’s workforce a competitive, powerful asset, and we will continue to take concrete steps to help ensure everyone has the opportunity to participate in the cannabis industry.”

The state awarded the grants on a competitive basis within the SUNY and CUNY systems, according to Hochul’s announcement, with multiple campuses partnering with one college that will assume the lead role.

The following three SUNY campuses will each receive $1 million in funding:

Name: Jorel Decker

Location: Lindsay, Okla.

Title: Owner, Ramshead Cannabis

One word to describe your cultivation style: Hydroponic

Indoor, outdoor, greenhouse or a combination: Indoor

Can you share a bit of your background and how you and your company got to the present day?

When I first decided to start growing in 2013, it was just to make some extra money at the time to pay my rent. I wanted to keep touring with my band, Hollywood Undead, but wasn't able to tour and pay rent. It was a weird time for the music industry. We signed a 350 deal, which completely crippled us financially. But when you're that broke and someone offers you lump sums of money, you don't care about the devil in the details. ... We had to work odd jobs in between tours. Music streaming wasn't popular or a thing yet. Physical sales were not selling anymore, so we weren’t seeing any revenue. I sold my car to make space in the garage, and I needed the money for my first grow setup. I went into a hydro store on Hollywood Boulevard that I was always passing by called Superior Hydroponics. I started asking questions and bought some grow tents and everything I needed for $7,000. I went all in with the car money.

LAS VEGAS – July 18, 2022 – PRESS RELEASE – The Source+, an award-winning cannabis company with six dispensaries across Nevada and Northampton, Mass., has announced that industry veteran Irene Villanueva will provide leadership as its new director of grow for the company’s cultivation and production facilities in Nevada. The Source+ has also opened a new 28,420-square-foot processing facility in Las Vegas to accommodate the company’s growth.

“We’re thrilled to welcome Irene as our new director of grow,” said Steve Haffer, CEO of The Source+. “Through her cultivation expertise, expansion of our team and grow, plus the opening of our new processing facility, we are confident that she will continue our mission of providing top-quality products at a value price point for our customers.”

Prior to joining The Source+ as its post-harvest director in 2021, Villanueva served as the general manager for Las Vegas Cannabis, where she garnered experience curing flower, in quality control compliance as the company’s order processing supervisor and cultivation technician. A graduate of Crafton Hills College, Villanueva is now leading a team of nearly 50 cultivation and production employees and intends to increase cultivation production while maintaining The Source+’s high-quality standards, expanding upon the award-winning products and bringing new strains to market.

“I am elated to join The Source+'s incredible grow team as the new director, to lead the staff in providing great product diversity and healthier options for consumers," said Villanueva. “At The Source+, we put an emphasis on cultivating premium flower at an accessible price point and with more room at our grow facility, I look forward to building up our wholesale and retail product selections."

The Source+’s new processing facility encompasses all product production for CAMP, 8|Fold and ONEderful product lines, as well as distribution for The Source+’s retail locations in Nevada. To learn more about The Source+ or to find a retail location in Nevada, visit thesourcenv.com.

NEUMÜNSTER, Germany, July 19, 2022 (GLOBE NEWSWIRE) -- PRESS RELEASE -- Tilray Brands, Inc., a global cannabis-lifestyle and consumer packaged goods company inspiring and empowering the worldwide community to live their very best life, announced that its medical cannabis division, Tilray Medical, launched a new cannabis education platform, WeCare-MedicalCannabis, dedicated to providing resources and educating healthcare practitioners and patients about medical cannabis.

WeCare-MedicalCannabis provides science and research-based cannabis content tailored to healthcare professionals, caregivers, and patients to help them make informed decisions about medicinal cannabis and assists them along their path to discovering how medicinal cannabis can support daily wellness and health. Designed to serve as a one-stop, comprehensive resource on medical cannabis insights, WeCare-MedicalCannabis is now available in Germany, France, the United Kingdom, and Portugal.

Sascha Mielcarek, Managing Director, Tilray Europe, said, “As global pioneers in medical cannabis, we are aware of the lack of access to science-based, medical cannabis education. WeCare-MedicalCannabis was created to bridge that gap and help provide the needed resources to helping patients, caregivers, and healthcare professionals with the information they need to make informed decisions on medicinal cannabis. As cannabis legalization continues to expand across Europe, Tilray Medical is dedicated to help provide informed and trusted guidance for those interested in learning more about medical cannabis.”

Tilray Medical continues to work with leading patient associations and physician societies, providing value to those impacted by changes within the medical landscape, and who serve at the forefront of global health initiatives. By providing access to educational platforms such as WeCare-MedicalCannabis, Tilray Medical continues to open and expand its world of wellbeing.

For more information, please visit the company's global platforms at WeCare-MedicalCannabis Germany, WeCare-MedicalCannabis France, WeCare-MedicalCannabis UK, WeCare-MedicalCannabis Portugal.

Operating in the California cannabis industry is not for the faint of heart, but fortunately for Chris Ball, he has plenty of that.

Ball is owner and CEO of Ball Family Farms, a vertically integrated, Black-owned, indoor cannabis grow based in Los Angeles. Ball built his business from the ground up, transitioning from the traditional market to become of the first social equity licensees in LA. While Ball has established Ball Family Farms as a top brand in the California market, he and the company have also experienced a number of trials and tribulations along the way. Ball joined Cannabis Business Times to preview his upcoming speaking session at Cannabis Conference 2022, as well as what’s ahead for Ball Family Farms and the California cannabis industry.

Editor's note: Chris Ball will be speaking on the panel session “How to Launch a Cultivation Business” from 11:20 a.m.-12:30 p.m. Aug. 23 at Cannabis Conference, taking place at the Paris Las Vegas Hotel & Casino. In this session, experienced and successful cannabis business leaders will share essential considerations when mapping out your start-up, along with some of the key lessons they’ve learned along the way.

Zach Mentz: What’s new at Ball Family Farms and what are you excited about?

Chris Ball: We got robbed twice. That happened [at the end of May]. It happened within a two-week span. We got hit twice within a two-week time period. So, that wasn't fun, but it obviously made us stronger. They got away with close to $800,000 worth of product.

Thank God for insurance, for one, and for two, it let us know some holes that we had in our security system and when the security comes and the exchange of shifts. So, we've been able to tighten that up. We've been working with some different alarm companies and put in some extra security, but none of these alarm companies are as good as what you would get at an Amazon or at a Nike or somewhere like that. We're still kind of getting the short end of the stick when it comes to that stuff. So, that wasn't fun, but we're recovering.

At the California State Fair this year, attendees will find a new crop sitting alongside cheese, berries and heirloom tomatoes of vibrant hues: cannabis flower, also boasting its many vibrant hues. The fair hosts its first cannabis competition this year, with Cultivar Brands producing the highly visible event before the world’s largest legal marketplace. The California State Fair runs through July 31 in Sacramento.  

Winners were categorized within indoor, outdoor and mixed light environments, and from there, the competition broke down the different cannabis flower entries into various chemical constituents. Greenshock Farms, for instance, won the gold award for its outdoor ocimene-dominant cultivar, Passion Orange Guava. High Grade Farms won the gold award for its indoor caryophyllene-dominant cultivar, and Peanut Butter Cup. Esensia won the Best of California “Golden Bear” award in the caryophyllene category for its Lemon OG. 

Each entrant was tested by SC Labs, which produced a detailed chemometric report for the flower. (See an example below.)

SC Labs launched its terpene testing in 2013, according to co-founder Alec Dixon. Since then, the team has honed the process over hundreds of thousands of tests across California and Oregon.

“We've been doing a bunch of research into our data and sorting everything by terpene content and learning a lot about how cannabis is classified by potential oil content,” Dixon says. “We’re working to further separate things out from the historic indica-and-sativa conversation—to know more about the terpene-cannabinoid makeups possible within the plant.”

Entrants into the California State Fair competition provided their cannabis flower to the event producers, which was later slotted into specific categories by SC Labs’ testing data. In the future, however, Dixon says he hopes to see entrants identify which terpene or cannabinoid category they’d like to pursue upfront. This may have the effect of encouraging more specific terpene-based breeding plans. A grower may spend a season dialing in a pinene-dominant cultivar—not only for the prestige of the Golden Bears, but also for the subtly shifting demand trends in the California market, perhaps.

Colorado Gov. Jared Polis issued an executive order July 14 to protect some employees’ off-duty cannabis use.

Under the order, state agencies that regulate professional licenses must now protect an individual’s right to use cannabis without workplace sanctions, according to a Westword report.

The order protects individuals who consume, possess, grow or process cannabis in accordance with Colorado law from professional sanctions or professional license revocation, the news outlet reported, including those who participate in cannabis-related activities in other states that would also be legal in Colorado.

Polis’ order directs the Colorado Department of Regulatory Agencies (DORA) and the Department of Revenue (DOR) not to cooperate with out-of-state investigations “related to disciplinary action against a professional license, certification, or credential for marijuana-related actions” that are lawful in the state, Westword reported.

The departments, which issue professional licenses for health care, trade practices, cosmetology, engineering, real estate and more, now have 90 days to establish and implement new policies to adhere to Polis’ order, according to the news outlet.

ClemsonUniversity College of Agriculture, Forestry and Life Sciences (CAFLS) has partnered with Curio Wellness , a Maryland-based medical cannabis company, to advance research on cannabistissue culture science for the medical cannabis industry.

According to a press release, starting this August, CAFLS and Curio will conduct atwo-year study using industrial hemp that will “aim to protect plants fromviral pathogens while improving production efficiency.”

Curio Wellness ChiefExecutive Officer, Michael Bronfein, said in the press release that thepartnership is an example of how Curio is “investing in the future of medicalcannabis for [its] patients and everyone in need of safe, effective andreliable health solutions.”

Jeff Adelberg, a professor ofhorticulture in Clemson’s Plant and EnvironmentalSciences Department, Experiment Station, and a leader in the study, said theproject is “unique,” as “both organizations will conduct research using ourindividual plant collections.

“Research conducted atClemson will be shared with Curio for use on their plants in Maryland,”Adelberg said. “This collaboration creates an opportunity for researchers fromboth institutions to use their knowledge to benefit people.”

Matt Taylor, applied sciencedirector at Curio Wellness, said the partnership will allow Curio to increaseits knowledge base of cannabis tissue culture, which, in turn, will enable thecompany “to continue cultivating high quality, plant-based medicine forpatients in Maryland and beyond.”

The New York Cannabis Control Board (CCB) approved regulations last week that will ultimately govern the state’s forthcoming adult-use sales.

Regulators formally adopted a licensing program July 14 that was initially proposed earlier this year to ensure that the first round of dispensary licenses go to applicants with past cannabis-related convictions, according to the New York Daily News.

RELATED: New York Will Issue First Adult-Use Dispensary Licenses to Applicants with Cannabis-Related Convictions

The regulations mandate that applicants for the first set of Conditional Adult-Use Retail Dispensary (CAURD) licenses must provide proof that they or a family member have been convicted of a cannabis-related offense prior to New York legalizing adult-use last year, the news outlet reported.

These applicants must also have a minimum of two years’ experience in owning a profitable business, the Daily News reported.

The U.S. House of Representatives passed the Secure and Fair Enforcement (SAFE) Banking Act for the seventh time last week, this time as an amendment to the fiscal year 2023 National Defense Authorization Act (NDAA).

Rep. Ed Perlmutter, D-Colo., attached the SAFE Banking Act to the NDAA earlier this month, and lawmakers approved the NDAA with the SAFE Banking amendment July 14, according to Financial Regulation News.

RELATED: UPDATE: Rep. Perlmutter Makes Final Push on SAFE Banking

“Today marks the *7th time* the #SAFEBankingAct has passed the U.S. House,” Perlmutter, the SAFE Banking Act’s original sponsor, said in a tweet on Thursday. “I’m calling on the Senate to take action for the safety of our communities and success of Veteran- and minority-owned businesses across the country. It’s time to get this done.”

The SAFE Banking Act, which would prohibit federal regulators from taking punitive measures against financial institutions that provide services to state-legal cannabis businesses, cleared the U.S. House six times prior to last week’s passage, including twice as a standalone bill, but has stalled each time in the Senate.