MjLink Cannabis Business News and Press

A retailer is suing Kansas officials over the state’s policy on delta-8 THC.

Murray Dines, the owner of Topeka-based Guardian MMJ, filed a lawsuit June 24 in U.S. District Court that claims Kansas’ policy violates federal law, according to The Topeka Capital-Journal.

Dines’ shop was raided by Shawnee County law enforcement April 20, the news outlet reported. Authorities seized $120,000 worth of product during the raid, according to the lawsuit, which challenges an opinion issued by Attorney General Derek Schmidt last year, according to The Topeka Capital-Journal.

While delta-8 products are legal in Kansas, Schmidt’s opinion said they must be derived from hemp and the THC levels must not exceed 0.3%, the news outlet reported.

Schmidt’s opinion also stated that some delta-8 products, including cigars, dips and teas, are illegal under Kansas’ controlled substances act, the news outlet reported.

NORWOOD, Massachusetts, June 29, 2022 - PRESS RELEASE - MariMed, Inc., a multi-state cannabis operator, announced a licensing agreement with East Coast Cannabis Company, a Maine-based cannabis producer and distributor. The licensing agreement allows for the distribution of MariMed’s brand, Betty’s Eddies full-spectrum fruit chews and the other successful SKUs in the line-up, including Bedtime Betty’s, into Maine’s adult-use market. The long-term intention is to roll out other edibles brands in MariMed’s portfolio, including Bubby’s Baked soft and chewy baked goods and Vibations: High + Energy powder energy drink mix. 

The licensing deal aligns with the company’s strategic growth plan to distribute its brands in legal cannabis states. The company anticipates Betty’s Eddies will be available to Maine’s residents and seasonal adult-use customers in the coming months.

“We are thrilled to partner with East Coast Cannabis Company for the production and distribution of our award-winning Betty’s Eddies branded products in the Maine adult-use cannabis market,” said Ryan Crandall, MariMed chief revenue officer. “Maine is an underappreciated adult-use cannabis market. While the state’s population is just over one million, Maine attracts as many as 37 million tourists annually, rivaling that of the Las Vegas Strip.”

LEAMINGTON,Ontario, June 29, 2022 (GLOBE NEWSWIRE) --PRESS RELEASE-- Tilray Brands, Inc.(Nasdaq: TLRY; TSX: TLRY), a global cannabis-lifestyle and consumer packaged goods company todayannounced that its medical cannabis division, Tilray Medical, has expanded itsmedical cannabis offerings in the United Kingdom. Tilray Medical now offers thebroadest portfolio of cannabis flower in the UK market today, including adifferentiated range of high THC products, cultivated at its EU-GMP-certifiedfacility in Portugal.

DeniseFaltischek, Tilray’s Chief Strategy Officer, and Head of InternationalBusiness, said, “The demand for medical cannabis in the UK is growing rapidly.We are incredibly proud to provide patients in the UK with high-quality,consistent medical cannabis products they can rely on and are accessible tothem.”

Tilray Medicalnow offers an extensive selection of medical cannabis products including amarket leading portfolio of cannabis flowers with THC potencies that span from10% to 25% and offer a range of different ratios. Tilray Medical’sportfolio in the UK is underpinned by a breadth of cultivars, each with aunique profile of cannabinoids and terpenes, that have been selected to ensurepatients can receive both the highest product quality as well as consistencywhen it comes to supply of their medicinal cannabis products. By offering sucha broad range of cannabis flower products in the UK, Tilray Medical hopes toexpand the range of treatment options available to patients and ensureprescribers and patients are provided with a safe and reliable choice as theyembark on their medical cannabis journey.

In the UK,patients may obtain prescriptions for medical cannabis through their specialistdoctor. Tilray Medical supplies the UK and the rest of our internationalbusiness with EU-GMP certified medical cannabis from our state-of-the-artfacilities in Portugal, providing patients with safe and reliable access tohigh-quality medical cannabis.

BOCA RATON,Fla., June 29, 2022 (GLOBE NEWSWIRE) --PRESS RELEASE-- JushiHoldings Inc.(CSE: JUSH) (OTCQX:JUSHF),a vertically integrated, multi-state cannabis operator, debuted its first lineof concentrates made using hydrocarbon extraction by its brand The Lab™, famous for delivering high-quality, precisionvape products and concentrates. The Lab™ Live Resin is the second of severalsingle-source concentrate product lines to be launched by Jushi. Last month, the company launched its first line of solventless live rosin extracts.

Initially, Jushiwill exclusively carry The Lab™ Live Resin 500mg full-spectrum 0.5 gram 510cartridges at Beyond Hello™ retail locations in Pennsylvania. The company plansto roll out its hydrocarbon-extracted line at partner dispensaries across the commonwealth in the coming months, as well as in additional states such asMassachusetts, Virginia and Nevada. The company also plans to launch a 300mgrechargeable, all-in-one 0.3g vape and a variety of 1 gram jarred curedconcentrates in the coming months, pending regulatory approval.

The newhydrocarbon extract products are rich in THC, cannabinoids, terpenes andflavonoids, and include roughly 90% of the plant’s original cannabinoids. TheLab™ Live Resin is produced using Jushi’s next-generation hydrocarbonextraction process utilizing high quality fresh frozen cannabis flower. Thisextraction process allows for the delicate make-up of the cannabis plant to bemaintained so that the strain specific cannabinoids and terpene propertiesremain fully intact.

“We arethrilled to bring patients some of the purest, high-quality hydrocarbonextracts available in Pennsylvania,” said Jushi Chief Executive Officer,Chairman, and Founder Jim Cacioppo. “As we continue to innovate and roll out someof the best products for a wide range of preferences at accessible pricepoints, we look forward to taking a differentiated approach that delivers anexceptional customer experience.”

As cannabismarkets mature and more states come online, the demand for extracted productscontinues to accelerate. According to leading cannabis market research firm BDSA,the cannabis extract market size was estimated at US$9.24B in 2021 and isprojected to increase nearly fivefold, to reach US$42.89 billion by 2030.

From seed to harvest, cannabis plants take roughly four months to complete their lifecycles, followed by another two months, or more, for drying, curing and packaging before any end products are ready for commercial sale.

That cultivation and processing period is going to hold up the progression of rolling out South Dakota’s medical cannabis program: While state voters approved a medical legalization ballot measure in the November 2020 election, a growing list of qualified patients won’t have legal access until, at the earliest, this fall—and perhaps not until the beginning of 2023.

As of June 27, there were 1,195 patients approved by the state, after receiving their recommendations from the 106 physicians who are qualified to do so, according to the South Dakota Department of Health (DOH).

That patient list is teed up to expand at a greater rate beginning July 1, when the 106 physicians will be joined by physician assistants and advanced practice nurses in their ability to sign off on written certifications for medical cannabis patient eligibility. Gov. Kristi Noem provided her ink to that change in late March via Senate Bill 26.

RELATED: South Dakota Governor Signs Medical Cannabis Bills

In addition to the nearly 1,200 patients, South Dakota now has a list of 70 certified dispensaries, 25 certified cultivation establishments, 10 manufacturing establishments and one testing lab for its medical cannabis program, according to DOH.

As regular cannabis use has increased worldwide, so too has the proportion of people with psychiatric disorders and suicides associated with that regular use, according to the United Nations. The number of hospitalizations is up too.

Those were a couple of notable convictions in the five-booklet 2022 World Drug Report released June 27 by the U.N. Office on Drugs and Crime (UNODC). 

Highlighted in the booklet on cannabis and opioids, cannabis remains the most widely used drug worldwide, with more than 4% of the global population aged 15-64—roughly 209 million people—having used cannabis in 2020, a 23% increase from the 170 million people in 2010. The global population increased roughly 13% during that decade.

Some 40% of countries worldwide—notably in Africa and South and Central America—report cannabis as the substance related to the greatest number of drug-use disorders, according to the report.

As cannabis use and THC potencies have increased, there has been a “notable increase” in related treatment admissions and psychiatric comorbidities, per the report.

“Between 2010 and 2019, in the European Union, the rate of people entering treatment with cannabis as their primary drug increased from 27 to 35 per 100,000 of the adult population,” the report states. “In 2019, around 35 percent of all people who entered specialized drug treatment services in the European Union were for treatment of cannabis use. More than half of first-time clients were using the drug daily.”

The dispensary is based in Polk County, the fastest growing county by population in Florida, with a population of 753,520Verano’s active operations span 13 states, comprised of 101 dispensaries and 13 cultivation and processing facilities with more than 1 million square feet of cultivation capacity

CHICAGO, June 28, 2022 – PRESS RELEASE – Verano Holdings Corp., a leading multistate cannabis company, announced the opening of MÜV Winter Haven on June 29, the company’s 48th Florida dispensary and 101st nationwide. MÜV Winter Haven, located at 6900 Cypress Garden Boulevard, is open 9 a.m.-7 p.m. Monday through Saturday and 11 a.m.-5 p.m. on Sundays.

MÜV Winter Haven is located in Polk County, the fastest growing county by population in Florida and the seventh fastest growing county by population in the country. The county experienced growth of 3% from 2020 to 2021.

“We are excited to open our 48th MÜV location in Florida, MÜV Winter Haven, where our compassionate and dedicated team will have the opportunity to serve Florida’s growing medical cannabis patient community,” said John Tipton, president of Verano. “Given Winter Haven and the surrounding Polk County region’s booming population growth, we are excited to add a second MÜV dispensary in the area to provide its growing patient base with access to our premium cannabis products.”

As a demonstration of their commitment to provide a convenient and reliable experience for Florida patients, MÜV dispensaries feature online menus for effortless browsing of their extensive, award-winning product selection, including the company’s signature Verano Reserve flower line. For additional convenience and accessibility, patients can choose to order ahead at muvfl.com or through the MÜV mobile application available in the Google Play and Apple App stores for express in-store pickup.

MÜV offers one-on-one virtual and in-store consultations at no cost to the patient. MÜV’s comprehensive product selection includes edibles, chocolates and lozenges, flower, pre-rolls, an array of vaporizer pens, concentrates, metered-dose inhalers, topicals and oral sprays; along with patented encapsulation formulations in its EnCaps capsules, tinctures, 72-hour transdermal patches and transdermal gels.

High taxes have long burdened California’s legal cannabis operators, and Gov. Gavin Newsom and state lawmakers are considering legislative relief for the industry through the Democratic governor’s budget proposal, as well as a new budget trailer bill that the Legislature will vote on later this summer.

The budget trailer bill would eliminate the cannabis cultivation tax paid by licensed growers and would shift the 15% excise tax from distributors to retailers, according to The Sacramento Bee.

The excise tax would remain at 15% for at least three years under the proposal, the news outlet reported. At that time, the California Department of Tax and Fee Administration, in collaboration with the Department of Finance and the Department of Cannabis Control, would have the authority to increase the excise tax to “capture revenues equivalent to the cultivation tax,” according to The Sacramento Bee.

The tax cut will not impact the youth services and childcare programs that receive funding from cannabis tax revenue, the news outlet reported. Instead, the proposal establishes a baseline of funding at $670 million and allocates $150 million in general fund dollars to make up for any loss in revenue.

The budget trailer bill also includes “additional enforcement tools against the illicit cannabis market,” as well as worker protections that cover the enforcement of labor peace agreements, according to The Sacramento Bee.

Louisiana Gov. John Bel Edwards signed legislation into law this month to protect workers who use medical cannabis and to allow the state to more than triple the number of dispensaries currently serving patients.

House Bill 988, sponsored by Rep. Mandie Landry, D-New Orleans, protects employees from being fired, as well as protects job candidates from being discriminated against, if they are registered medical cannabis patients.

The law does not apply to law enforcement, firefighters or other public safety officials.

The Louisiana House passed the H.B. 988 May 24 in a 60-32 vote, and the Senate approved it June 1 in a 26-8 vote.

RELATED: Louisiana Legislature Passes Bill to Protect Workers Who Use Medical Cannabis

Friday has become many dispensaries’ highest sales day across the nation. With the weekend just getting started and many people’s payday being at the end of the week, Fridays continue to provide cannabis retailers with increased customer traffic and the opportunity to capitalize on a predictable sales uptick.

For example, Massachusetts’ adult-use sales on Friday, June 3, represented 19.2% of the total sales for that week, outpacing Saturday (16.8%), the second-highest sales day, and Thursday (14.5%), the third-highest day, according to data from the state’s Cannabis Control Commission. Monday, the lowest sales day, represented 10.8% of the total volume for that week. Those trends continued the following two weeks.

In order to make the most of your Friday sales uptick, Nick Jack, chief operating officer, with national cannabis brand Diego Pellicer Worldwide, whose retail operation in Denver was recently rebranded to Frost Exotic Cannabis, offers five tips his company uses to take advantage of anticipated demand spikes and to keep those transactions increasing.

“Being busy is no excuse to lack on providing a top-tier service and maximizing the consumer journey to the best of your ability,” Jack said. 

1. Staff store accordingly 

Texas has wrestled with regulating smokable hemp for almost two years, but the state’s Supreme Court provided clarity June 24 when it ruled that while individuals can possess, purchase and sell smokable hemp in Texas, they cannot process or manufacture it in the state.

According to the Dallas Observer, Friday’s Supreme Court ruling is the result of a months-long legal battle between the Texas Department of State Health Services; its commissioner, John Hellerstedt; and four hemp companies: Crown Distributing, American Juice, Co., Custom Botanical Dispensary and 1937 Apothecary.

Wild Hempettes provided the majority of financial support for the lawsuit, the Dallas Observer reported.

After the 2018 Farm Bill passed to federally legalize hemp, the Texas Legislature passed a regulatory framework for the industry in the form of House Bill 1325, which put the Department of State Health Services in charge of the state’s consumable hemp program, according to the news outlet.

One of the department’s rules prohibited the processing, manufacturing, distribution and sale of smokable hemp in Texas, and hemp companies sued to challenge the ban. The plaintiffs claimed the ban violates the state constitution because it would force them to leave the state to conduct business, which would harm them financially and even force them to shut down.

Connecticut regulators received more than 37,000 cannabis business license applications ahead of the state’s final application deadline last week.

Applicants are competing for 56 adult-use cannabis licenses in the state.

RELATED: Connecticut Starts Accepting Applications for Adult-Use Cannabis Business Licenses

The Connecticut Department of Consumer Protection received 13,806 applications for the general licensing lottery and 23,487 for the social equity license that the General Assembly created for communities most impacted by cannabis prohibition, according to a Yahoo! News report.

The majority of applicants, 15,606, applied for retail licenses, the news outlet reported.

Element 7, a California-basedcannabis operator, has opened three new locations in Mendota, Willits and ChulaVista, expanding its retail presence to 12 dispensaries in California.

Element 7 Founder and CEORobert DiVito, said in a press release the company is “proud” to expand its retailfootprint in California. 

According to the release, allthree locations will carry brands and products from large and small cultivatorsand manufacturers in California.

“The menu we have selectedfor the three stores includes some of the state’s leading brands like WestCoast Cure, Jeeter, Wyld, Kiva, Raw Garden, Alien Labs, Himalaya, and Pamos, aswell as local craft cannabis brands from across California,” DiVito said.“We’re especially proud to deliver on our promise of bringing craft brands likeRoadTrip, NuhTopia, Dewpoint Farms, Lucy Goosey, Terp Mansion, and Arcata Firefrom our operations in Central and Northern California—that’s not just smartfor business, but it’s helping small farmers in these communities take theirproducts south to other parts of California, which has been a driving force inour company vision since we started in 2018.” 

The company is also focusedon creating an inviting retail environment at all its locations, as well aseducating, entertaining and engaging customers.

“We’ve tried to create animmersive retail environment that is different to what the rest of the marketis doing,” DiVito said. “We want to be disruptive both in our approach to howwe manage our operations, how we deliver value in competitive markets and theimmersive experience we deliver to our customers.”

The City of Portland Cannabis Program named Akil Patterson to oversee its Social Equity and Education Development (SEED) Initiatives program.

The SEED Initiatives program was created to repair the lasting economic, legal, social and intergenerational consequences of past cannabis prohibition on Black, Indigenous, and other communities of color.

The program is supported by an ongoing $1 million in cannabis tax revenue allocation, according to the city, which awarded 17 grants to community-based organizations in 2021 alone. To date, the SEED Initiatives program has completed four full cycles and has awarded more than $3.3 million through 32 different grants.

In his new role, Patterson will be responsible for mobilizing the grant review and evaluation process, and will name the 2022-23 SEED grantees this summer.

“I am excited to contribute my social advocacy experience and bring my national platform to Portland’s trailblazing cannabis equity movement,” Patterson said. “Administering equitable social change and racial justice is something I worked on my entire career. I am humbled to serve in this important movement by working with my Portland colleagues, cannabis entrepreneurs, and the greater Portland community to shine a bigger spotlight on Portland as we work together to model social change and innovation.”

Switzerland is easing its medical cannabis restrictions, allowing doctors to prescribe medical cannabis to their patients without federal authorization starting Aug. 1, according to Le News.

The Federal Council announced the move June 22, the news outlet reported.

The change removes a requirement for doctors to seek authorization from federal health authorities when prescribing medical cannabis.

Medical and adult-use cannabis became illegal in Switzerland in 1951, Le News reported, and medical use was only permitted in “exceptional circumstances,” in which case the prescribing doctor had to apply to the Federal Office of Public Health (FOPH).

The FOPH grants roughly 3,000 authorizations annually, usually for patients with cancer, multiple sclerosis or neurological diseases, according to Le News. The process is typically “long and costly,” the news outlet reported, which has prompted the change in law.

As New York regulators continue taking steps to launch the state’s adult-use cannabis market, the Cannabis Control Board on June 22 unanimously approved opening the application process for adult-use cannabis processors, according to a Buffalo News report.

Those seeking a conditional adult-use cannabis processor license can apply starting June 28, and the application period will close Aug. 31, the news outlet reported.

RELATED: New York Governor Announces Investment Team to Manage $200M Social Equity Cannabis Fund

Questions on the processor application include inquiries about the manufacturing processes the applicant will use and what type of cannabis products the applicant intends to manufacture, according to Buffalo News.

Applicants ultimately awarded processor licenses will be permitted to acquire plant material grown by state-approved cultivators to manufacture it into cannabis products with a THC concentration exceeding 0.3%, the news outlet reported.

Pride Month occurs every year in June and honors the 1969 Stonewall Uprising in Manhattan. The first Pride march was held in New York City in June of 1970, the one-year anniversary of the Stonewall Uprising, according to the U.S. Library of Congress, and has become a staple in cities across the globe every June. The month aims to show support and appreciation for the LGBTQ+ community across the world. Pride parades and festivals happen everywhere as well as many companies offering donations to LGBTQ+ communities. Many cannabis companies have been following suit and offer special deals for Pride and donations to different LGBTQ+ charities around the nation.  

Companies such as Lowell Farms and The Source+ make it a priority to show support for the LGBTQ+ community during Pride Month. These companies are offering deals and donating some of their proceeds from this month to different LGBTQ+ organizations. These companies believe it’s important to show support to the LGBTQ+ community and prove it with their actions.  

 “Inclusivity is one of the pillars of our company—we like to make sure everybody is included and treated equally,” says Brett Sprau, the director for The Source+ Massachusetts in Northampton.

This month, The Source+ is doing a round-up promotion with the Venture Out Project. The Venture Out Project is a local Northampton program for the queer and transgender community to go on wilderness and backpacking trips. It also offers inclusion workshops for summer camps, educators and more. On all purchases this month, The Source+ is asking customers if they want to round up their change to the nearest dollar for a donation to the program. The store is also hosting an in-store raffle where customers can purchase raffle tickets in-store and be entered for a chance to win tickets to a RuPaul Drag Race show in Boston at the House of Blues Boston on Aug. 7. The store has been offering Pride Flags and Pride-themed drawstring bags to customers.

Sprau says that Northampton is a very LGBTQ-friendly community and a community-driven area, so partnering with a local organization was a “no brainer” for the company. The Source+ also works with several other organizations aiming to better the area. For example, they partnered with OneHolyoke Community Development Corporation, which is an organization that focuses on helping the local area. They have launched campaigns that helped clean up the streets of Holeyoke and helped to distribute COVID tests to lower income areas. It also hosts tutoring programs for students during the school year.

As a company that is very involved in the local community, it’s easy to see why The Source+ wanted to help support Pride Month. This company believes it’s important to support the community “We just want to be a part of the community,” Sprau says. “That’s what I think the easiest way to support the community is, to be involved in it and do whatever the community needs for us to do.” 

Jocelyn Sheltraw is involved heavily within the cannabis industry, from serving on the Board of Directors of the California Cannabis Industry Association (CCIA) to her role as the director of industry relations at Headset, a provider of cannabis data and market intelligence. She’s also one of the creators of CannaPac, a meetup for cannabis founders and executives. Sheltraw is an industry thought leader and dedicates her time to serving and helping the cannabis industry and believes using data can help cannabis companies grow their business effectively.

RELATED: California’s Cannabis Market: ‘A Recipe for Disaster’ 

In this Q&A Sheltraw talks about what’s happening within the cannabis industry, what product trends she sees in the market and why you should attend the Cannabis Conference.

Editor's note: Jocelyn Sheltraw will speak at Cannabis Conference from 10:00 a.m. to 11:20 a.m. on Tuesday, Aug. 23 on the "ALL ACESS PASS: Product Trends Of 2022 and Predictions for What’s to Come” session. In this session, experts from some of the industry’s leading data and research companies will present their findings on product and shopping preferences by generation, region and other demographics and categories—providing key insights into today’s consumer demands and how plant-touching businesses can rise to meet them.

Visit https://www.cannabisconference.com/ for more information and to register. 

Item 9 Labs, an Arizona-based, vertically integrated cannabis franchisor, is continuing its expansion across North America with its recent acquisition of Sessions Cannabis and all 43 of its Canadian locations.

The company, with cannabis licenses in 15 states, is also expanding operations in Arizona, Nevada, Colorado, and more states in effort to ‘keep cannabis local,’ the company’s motto.

But behind the ongoing expansions and acquisitions, Item 9 Labs—with its name inspired by the Seth Rogen and James Franco stoner flick “Pineapple Express”— believes its franchising model puts the company “in the right spot at the right time to do the right thing,” says Chief Franchising Officer Mike Weinberger.

Weinberger and CEO Andrew Bowden joined Cannabis Business Times for an exclusive interview on Item 9 Labs’ recent accomplishments, and where the company sees itself and the future of U.S. cannabis next.

Zach Mentz: Item 9 Labs recently acquired Sessions Cannabis, based in Ontario, and all 43 of its locations. How did you identify Sessions Cannabis, specifically? What were some of the criteria that led you to wanting to acquire them?

Mike Weinberger: So we're always open to any acquisition or merger that makes sense. We're looking for good people, good brands, good systems. And strangely enough, Sessions is a franchise system and that's what we do. There aren't many franchisors in cannabis. We call ourselves the only one in the U.S., there's a few that are in its infancy, and then in Canada, there's about three of them.

But the Canadian Council for Sessions is our Canadian Council; Steven Fry is the CEO and the founder there [at Sessions Cannabis]. And they saw a lot of synergies between our team, between Andrew and me and between Steven. We went on our first date, met him, we talked the same way on franchising, about our vision for putting local people in business, about growing a franchise system, about taking care of patients and guests, and just had the same moral compass.