MjLink Cannabis Business News and Press
LEAMINGTON,Ontario, June 07, 2022 (GLOBE NEWSWIRE) -- PRESS RELEASE--Tilray Brands, Inc.(Nasdaq: TLRY; TSX: TLRY), a global cannabis and consumer packaged goods company, todayannounced that its medical cannabis brand, Aphria, has launched CBN Night Oil, the brand’sfirst CBN oil medical product formulated for patients’ nighttime use.
Blair MacNeil,President, Tilray Canada, said, "Tilray Medical is committed to providingpatients in Canada and around the globe with safe, high-qualitycannabinoid-based medicine. We are pleased to add a dedicated night oil to theAphria medical portfolio and broaden our offering of effective medical cannabisproducts to patients with a wider range of needs.”
CBN, orcannabinol, is derived from THC and is known to help improve the duration andquality of sleep. Aphria’s CBN-dominant oil is carefully formulatedwith 30mg CBN per mL and 10mg THC per mL (in a 50mL bottle) and is composed ofbroad-spectrum cannabis distillate. Designed to be used in conjunction with anighttime routine.
]]>DENVER, June 6, 2022 /CNW/ --PRESS RELEASE-- BellRock Brands Inc. (CNSX: BRCK.U), a cannabis multi-state house of brands announced today several key changes to management.
BellRock announced that Kavi Bhai, BellRock's Chief Financial Officer, is leaving the company. He has agreed to provide consulting services to the company during the next few months to ensure a smooth transition for his replacement.
As a result of the change, BellRock has engaged West 4th Holdings, LLC. Founded by Zachary Venegas and Scott Ogur. West 4th Holdings is a management consulting firm focused on improving operational productivity for small to mid-size companies. Venegas' most recent cannabis venture was his role as founder and CEO of Helix Technologies, which he successfully exited to Forian (NASDAQ: FORA).
Scott Ogur has been appointed as the interim Chief Financial Officer effective immediately. Scott is a financial leader and has over 20 years of finance, public company reporting, asset management and M&A experience. He has streamlined operations, grown, and successfully exited numerous ventures, including a recent tenure as a director and CFO of Helix Technologies. In prior years, he served as managing director of Spruce Investment Advisors, CFO and Chief Investment Officer of Scimitar, and Vice President at JP Morgan Private Bank. He started his career at Price Waterhouse as a staff auditor.
"We are very excited to engage West 4th and add Scott and Zac to BellRock's management team. Scott's seasoned background in finance, operations and his knowledge of the cannabis industry will help ensure BellRock's success for the future. One of BellRock's primary goals is to have its cease trade order revoked as soon as possible. Appointing Scott will be an integral part to accomplishing this," said Brian Jansen, BellRock's President and CEO. "In addition, the experiences and guidance of Zac will expedite BellRock's path to free cash flow positive."
]]>Louisiana lawmakers passed legislation June 5 that paves way to more than triple the number of medical cannabis dispensaries in the state, giving preference to existing license holders to open additional retail facilities.
The Senate passed an amended version of the legislation, House Bill 697, by a 22-12 vote on June 2, before House lawmakers concurred, 83-17, without debate on Sunday.
Currently, there are nine medical cannabis retail operators in Louisiana. Under the proposed law, nine regions would be established for each of those license holders, and the Louisiana Board of Pharmacy would be required to issue a 10th license to the region with the highest population density as of Aug. 1, 2022—likely in the New Orleans region.
In addition, H.B. 697 would allow existing retailers in each region to open up to two additional dispensaries in their respective regions upon meeting defined patient counts:
If a license holder declines to open a third retail facility in its region, then the Board of Pharmacy may issue an additional cannabis license in that region to a new licensee in lieu of the original licensee opting out.
The proposed law stipulates that, in total, no more than 30 medical cannabis dispensaries may be approved by the board.
OAKLAND, Calif. and TORONTO, June 6, 2022 - PRESS RELEASE - Harborside Inc., a California-focused, vertically integrated cannabis enterprise, announced the expansion of its leadership team appointing Kavi Bhai as vice president of financial planning and analysis and Angela Pih as vice president of marketing.
Bhai has over 11 years of relevant experience, having previously worked for BellRock Brands, where he served as chief financial officer. Prior to BellRock, he served as chief financial officer at Mary's Medicinals and led audit and advisory engagements at Frazier & Deeter, LLC. In his current role, Bhai will be responsible for planning, forecasting, budgeting and analysis to support the execution of the company's strategic plan.
Pih is charged with expanding Harborside's market share by strengthening the company's brands and sales capabilities. She was previously chief marketing officer at Papa & Barkley, a category leader in cannabis products for health and wellness, and at CannaCraft, a house of brands in California across recreational and wellness cannabis products. Considered a technology "first mover," Pih is a 3x Clio Award winner and was named by The Drum as a Top Female Talent of Color in 2018. She brings 25 years of experience in cannabis, retail and consumer packaged goods.
"As we embark upon the next phase of growth in creating a leading, vertically integrated cannabis enterprise, we are filling the final two critical positions in our senior executive team," said Ed Schmults, Harborside CEO. "The addition of Kavi, with his track record of navigating companies toward financial growth following internal overhaul, and Angela, with her proven marketing experience across retail and CPG brands, is hugely beneficial to Harborside as we further establish a leadership role in the California market."
]]>As emerging companies experience significant growth, they also experience more challenges, including increased exposure to risk, new compliance requirements, and adapting processes and procedures. Companies may not realize these issues as challenges until some triggering activity occurs, such as fraudulent activity or a system breakdown, or when they decide they want to prepare for listing on a public exchange.
To be listed on a U.S. stock exchange, companies have to become U.S. Securities and Exchange Commission (SEC) registrants and must comply with certain requirements, including the Sarbanes-Oxley Act of 2002 (SOX). Being publicly listed isn’t the only reason companies become SEC registrants, though. Among other reasons, it helps raise capital, teeing up potential expansion opportunities, and provides credibility to the company, which inspires confidence from investors.
Regardless of why a company registers with the SEC, it still must comply with SOX. Becoming SOX-compliant can be challenging and time-consuming for many companies by nature of its complexity and multifaceted requirements. The requirements are meant to ensure the company has the appropriate internal controls and processes in place to prepare accurate financial statements and disclosures.
SOX is a bipartisan bill created in response to the large number of financial scandals from public companies that happened around the early 2000s. The bill demanded transparency and corporate responsibility and created several layers of oversight for public companies to protect investors and to prevent Enron-size scandals from happening again, and it has proven to work.
Not All Challenges Are Built the Same, Especially for Cannabis Companies
Startups in any industry generally feel overwhelmed with SOX compliance because they usually have a lean back-office staff, in which people are wearing multiple hats and may not be used to the rigorous control environment requirements.
What these companies may not realize is SOX compliance is the responsibility of the entire company, not just the accounting function. Operational process owners may have to refresh or establish processes to accommodate the new requirements.
The Vermont Cannabis Control Board issued seven more adult-use cannabis business licenses May 31 as the state prepares to launch the first retail sales in October.
The latest round of licenses went to social equity or economic empowerment applicants, according to a VT Digger report.
The new licensees are Arcadia Cannabis Company, an indoor grower in Essex; Snowbird Botanicals, a small indoor and outdoor grower in Barnet; Epona Farms, an indoor grower in Salisbury; Family Tree, an indoor and outdoor grower in Sheldon; Great Brook Homestead, a small outdoor grower in Middlesex; Valley Organics, a small indoor grower in Jeffersonville; and DP Holdings/VT Cannabis Organics, a small indoor and outdoor grower in Danville.
To date, the Cannabis Control Board has received 208 applications, VT Digger reported, and it is required to consider applications from social equity or economic empowerment first. Once the board makes a decision on those applicants, it can consider the next group, which consists of applicants seeking licenses to grow cannabis outdoors this summer, according to the news outlet.
“We hear the urgency on outdoors,” Pepper told VT Digger. He added that the board’s executive director, Brynn Hare, is interviewing potential staff members to process the licenses, and that the board will likely review the next round of applications next week.
Legislation to legalize medical cannabis stalled this year in Kansas, but Gov. Laura Kelly signed a bill into law last week that allows patients to use cannabis-derived medication that has been approved by the U.S. Food and Drug Administration (FDA)—even if not much of this medication currently exists.
Kelly signed House Bill 2540 into law June 2 to amend the definition of “marijuana” in Kansas’ Uniform Controlled Substances Act to exempt FDA-approved drugs that contain cannabis compounds, according to Forbes.
As the news outlet points out, Epidiolex remains one of the only cannabis-derived medications that has been approved by the FDA to treat seizure disorders in children.
Marinol is also FDA-approved, Forbes reported, but it contains a synthetic form of THC.
H.B. 2540 also updates the Kansas’ criminal code to reflect the legality of CBD under federal law, according to the news outlet.
A second lawsuit has been filed to challenge Detroit’s revised adult-use cannabis ordinance, which City Council members approved in April.
Medical cannabis company JARS Cannabis filed the lawsuit in Wayne County Circuit Court June 3, arguing that the ordinance violates Michigan law, according to the Detroit Free Press.
JARS, which operates two medical cannabis dispensaries in Detroit and other medical and adult-use dispensaries elsewhere in Michigan, is asking the court to block the city from moving ahead with its ordinance, the news outlet reported.
“Detroit has created a schematic to give preferential treatment to its residents, violate MRTMA (the state's legal and regulatory framework for legally growing and selling recreational marijuana) and eradicate existing operators,” the lawsuit alleges, according to the Detroit Free Press.
Michigan launched adult-use cannabis sales in December 2019. Detroit City Council’s approval of a revised adult-use ordinance in April came nearly 10 months after U.S. District Judge Bernard Friedman issued a 19-page injunction to block the city’s previous attempt to license adult-use cannabis dispensaries within its jurisdiction.
BOCA RATON, Fla., June 06, 2022 (GLOBE NEWSWIRE) --PRESS RELEASE-- After acquiring Nevada-based vertically integrated operator NuLeaf, Inc., together with its subsidiaries and affiliated companies, Jushi Holdings Inc. (CSE: JUSH) (OTCQX: JUSHF), a vertically integrated, multi-state cannabis operator, announced that it is expanding its retail presence with the opening of its 33rd dispensary nationally and fourth dispensary in the Silver State: NuLeaf Las Vegas The Strip. Following the opening of NuLeaf Las Vegas The Strip, Jushi’s operations in Nevada will consist of three adult-use and medical dispensaries in Las Vegas, an adult-use and medical dispensary in Lake Tahoe, and approximately 47,000 sq. ft. of cultivation and manufacturing space.
NuLeaf Las Vegas The Strip, located at 1600 Las Vegas Blvd South, Suite 140, will officially open and begin serving consumers and medical cannabis patients on Wednesday, June 8th at 9:00 a.m. Along with providing a customer-centric retail experience, the store features an option for online ordering through NuLeaf Las Vegas The Strip. The 3,200 sq. ft. dispensary is located at the intersection of Las Vegas Boulevard and W. Wyoming Avenue. It is also next door to the 18b Las Vegas Arts District, which straddles West Charleston and is home to the city’s art-related galleries, studios, boutiques, stores, bars, restaurants, and other venues. Approximately 29,000 cars pass by the store each day on S. Las Vegas Boulevard, while W. Wyoming Avenue sees about 19,000 cars per day.
“NuLeaf Las Vegas The Strip has a fresh, new elevated design and look that is reflective of its location on the Strip,” said Jim Cacioppo, Chief Executive Officer, Chairman, and Founder of Jushi Holdings Inc. “It is incredibly well-positioned to serve the tens of thousands of global visitors who attend monthly First Friday events and visit Vegas to see the neighborhood's amazing public art and murals, all of which are accessible via short, walkable urban blocks. Also, we look forward to expanding our product selection at our four operating stores to include our own brands and growing our wholesale business in one of the largest cannabis markets in the U.S.”
NuLeaf Las Vegas The Strip will carry top cannabis brands and products, including flower, concentrates, vaporization products, tinctures, edibles, topicals, capsules, and various ancillary products such as approved rigs, batteries, merchandise and other devices, including Jushi and NuLeaf cannabis lines as well as an expanded line of NuLeaf merchandise and accessories. The retail location provides an efficient, accessible, and safe experience that goes beyond the traditional cannabis retail environment. As part of the company’s commitment to exceeding customer expectations, experienced, well-trained staff will also be on-site to help dispense products, answer questions and provide exceptional service. In addition, NuLeaf Las Vegas The Strip is handicap accessible, LGBTQIA+ friendly, and offers a standing 10% discount to anyone 65 years or older and a 20% discount to veterans and active military personnel with identification.
]]>Organic crop cultivation has gained popularity over the years as consumers seek out more natural products grown with fewer pesticides. With the prices of pesticides and fertilizers increasing and potential shortages, organic management techniques may start to become even more popular among farmers.
With organic production, cultivators do not use synthetic fertilizers or pesticides, and they grow on land that has not had any prohibited substances applied for a minimum of 36 months. To produce crops following the National Organic Program (NOP) standards, a grower must understand the rules and regulations to be officially considered USDA Organic. Approval from a certifying agent allows growers to use the USDA Organic label. If a crop has to go through additional processing to get made into a final product, that processing needs to use approved substances in the manufacturing to be considered organic as well.
Going through certification may not be for everybody. Certification comes with a cost, which includes yearly inspections to maintain organic status. Additionally, the cost of managing a crop organically is higher than doing so conventionally, while yields have typically been lower in organic systems. The higher cost of organic production comes from higher costs for organic seeds or plants, certification, labor, equipment and fuel.
Some producers instead opt for a hybrid production system, drawing from both conventional and organic management practices. With few pesticides available (most of which are approved for use in organic production), many hemp producers are already following management practices that align with organic farming practices. Hemp certainly is a good option to transition land into organic production.
Still, there is a value-added benefit for producers willing to go through the certification process to become fully organic. Organically grown crops have higher gross returns to farmers compared to conventionally grown crops.
Whether a grower wants to seek organic certification or simply integrate certain practices, they can start by using the following management techniques in the field this season.
California’s coastal “King of Cannabis,” Helios Dayspring, owner of a San Luis Obispo cannabis cultivation site, supplier to many licensed California dispensaries, and founder of Central California’s Natural Healing Center dispensary, was sentenced to a 22-month prison sentence, in a downtown Los Angeles federal courtroom May 27.
Dayspring was also ordered to pay almost $3.5 million in back taxes to the IRS from years of unreported cannabis business income.
Dayspring, over a three-year period starting in 2016, bribed a San Luis Obispo county supervisor with money, free cannabis, and fancy meals, so that the local government official would vote in favor of policies which favored Dayspring’s San Luis Obispo cannabis farm and his Grover Beach, California retail outlet.
RELATED: Q: What’s a Cannabis Operator to Do to Get Ahead Without Getting Indicted?
Dayspring’s cannabis corruption machinations were discovered after federal authorities began a multi-year investigation into local government corruption up the California coast.
Why did the feds in this vast Central District, home to 19 million inhabitants and covering 40,000 square miles, single out Dayspring? They were investigating corruption, not cannabis.
Cannabis sales have hit a three-month plateau in Illinois.
Adult-use retailers reported $129.8 million in cannabis sales in May, according to monthly data released June 3 by the Illinois Department of Financial and Professional Regulation (IDFPR). That’s a slight dip from April ($131.8 million) and March ($131 million), representing maturity in a market that has experienced regular growth since commercial sales first launched in January 2020.
Since that launch, Illinois has sold nearly $2.7 billion in adult-use cannabis and remains on pace for another record year. Through the first five months of 2022, adult-use sales are up 22.3% from the same timeframe a year ago.
While overall sales for May 2022 fell slightly compared to the previous two months, out-of-state resident sales grew slightly to nearly $41 million, representing 31.6% of the state’s retail market. However, out-of-state resident sales have represented a constant share of the retail market—between 31% and 32%—throughout 2021 and 2022.
In regard to transactional volume, Illinois’ 110 licensed dispensaries sold more than 3 million items in May. But that retail footprint will soon expand.
On May 27, a judge ended a court order that was preventing IDFPR officials from issuing 185 new adult-use dispensary licenses that were awarded during a three-part lottery last July and August. The majority of those licenses are reserved for social equity applicants.
]]>New Mexico’s adult-use cannabis sales surpassed $21 million in May, the second month since the market launched April 1.
The state’s dispensaries racked up $21,1000,803.88 in adult-use sales and $17,431,953.58 in medical sales for a grand total of $38,532,757.46 in cannabis sales for the month, according to a press release from the New Mexico Regulation and Licensing Department.
“These sales figures depict a steady pace that we expected when adult-use cannabis was legalized,” said Cannabis Control Division Director Kristen Thomson in a public statement. “Our staff continues to work diligently to ensure applicants move through our licensing process efficiently, and ensure licensees operate within a safe, accessible, and effective regulated market.”
The cities of Albuquerque, Santa Fe, Las Cruces, Rio Rancho and Hobbs saw the highest sales numbers, according to the release.
Despite the heavy lift associated with losing major donors and challenging a constitutional signature gathering statute, a group of medical cannabis legalization advocates indicated major strides this week in Nebraska.
Proponents of Nebraskans for Medical Marijuana (NMM), a grassroots effort to place two medical cannabis legalization initiatives on the state’s November ballot, announced June 2 they doubled their signature count—to roughly 40,000 for each measure—in just the past two weeks.
RELATED: Nebraska Group Files Two Medical Cannabis Initiatives with Secretary of State
State Sen. Anna Wishart, D-Lincoln, a co-sponsor of the petitions, also announced Thursday that the group raised $50,000, recruited more than 100 paid volunteer circulators to help collect signatures and qualified 15 of Nebraska’s 93 counties also in just the past two weeks.
The group has until July 7 to gather roughly 87,000 valid signatures from registered voters for each measure to qualify for the ballot. Wishart told the Lincoln Journal Star the group is on track to hit that deadline.
“We are really pulling together a campaign,” she said, “and we’ve got a ton of people who have gotten out of the house to come grab a petition and collect signatures.”
The Hemp Alliance of Tennessee (HAT) is partnering with the state Department of Agriculture (TDA) to conduct a research study to assess the feasibility of hemp fiber production for the automotive industry and other sectors of the economy.
According to an HAT press release, the University of Tennessee will conduct the study, which is expected to take place now through the end of next year.
"We are an agricultural state, and we are proud to be a hemp-producing state," Agriculture Commissioner Charlie Hatcher said. "This plant has numerous applications, and we believe fiber has [the] potential to grow Tennessee's industrial economy. We support this work led by the Hemp Alliance of Tennessee and look forward to reviewing the research conducted by the University of Tennessee to assess the potential scale of that growth."
The feasibility analysis will include creating a budget for Tennessee farmers regarding the state's costs, revenue, and profits of processing hemp fiber. The budget will also include transportation and supply chain logistics.
A portion of the study will also evaluate the "likelihood for successful Tennessee-based production and processing for the various major uses of hemp fiber," the release states.
Frederick Cawthon, president of HAT, said he thinks Tennessee could become a leader in the hemp industry if "we engage our innovators and the industries that can benefit from the plant— and our Legislature continues to help make the right investments in the plant's myriad applications."
]]>Medical cannabis legalization is on the table again this year in North Carolina, and the issue took a major step forward June 2 when it received the Senate’s blessing.
Senate Bill 711, called the Compassionate Care Act, passed the Senate in a 35-10 vote Thursday, with both bipartisan support and opposition, according to The Charlotte Observer.
RELATED: North Carolina to Consider Medical Cannabis Legalization Bill, Again
The legislation will likely face more opposition in the North Carolina House, the news outlet reported, but Sen. Bill Rabon, the bill’s main sponsor, has said that he his proposal would create one of the strictest medical cannabis programs in the country if it becomes law in an effort to rally support in the statehouse.
“We have looked at other states, the good and the bad,” Rabon told his colleagues before Thursday’s vote, according to The Charlotte Observer. “And we have, if not perfected, we have done a better job than anyone so far.”
One of the nation’s youngest adult-use cannabis retail markets, Montana banked $16.6 million in adult-use sales and $8.3 million in medical sales in May, according to the state’s Department of Revenue (DOR).
Combined adult-use and medical sales dipped slightly, from $25.4 million in April to $24.9 million May, which in part was a factor of medical sales decreasing at a greater rate (8.9%) than adult-use sales increased (1.9%) for the month.
Other factors may include the absence of a 4/20 sales boost in May, and the fact that April had five Fridays and five Saturdays, while May had four each.
Since Montana became the 12th state to launch commercial adult-use cannabis sales on Jan. 1, 2022, retailers have recorded $76.5 million in adult-use sales and $46.7 million in medical sales—for more than $123 million combined.
Much like other maturing markets, adult-use sales have continued to grab a larger market share during that time, representing about 58% of overall sales in January and nearly 67% of overall sales in May.
In Colorado, for example, which launched adult-use sales in January 2014, adult-use sales represented nearly 82% of the licensed retail market in 2021. In Oregon, which launched adult-use sales in October 2015, adult-use sales represented more than 91% of its licensed retail market in 2021.
For more than two years, dispensary owners in Sacramento were barred from engaging in business transfers or sales. That’s changing, now that city council members voted to overturn the policy.
As the Sacramento Bee reports, moving forward, dispensary owners may sell off a majority of their business.
Furthermore, dispensary owners may pick up ownership stakes in other dispensaries, too. Those minority stakes are limited to 5%. The goal, according to city officials, was to broaden the playing field and allow new entrants into the local marketplace.
“What we put forth today is a symbol that we are serious about a good business environment,” said Sacramento Mayor Darrell Steinberg.
City council originally clamped down on ownership transfers after Ukrainian businessman Andrey Kukushkin quickly acquired nearly one-third of all Sacramento retail licenses in the earlier years of the local market. Kukushkin, in 2019, was caught up in a federal investigation into campaign finance crimes. A probe of Kukushkin’s business interests at the time brought about greater scrutiny from Sacramento law enforcement—and a review of licensing rules.
As of now, the city of Sacramento has 30 dispensaries within its borders.
CHICAGO, June 3, 2022 – PRESS RELEASE – Verano Holdings Corp., a multi-state cannabis company, today announced its 100th affiliated dispensary in the nation, Zen Leaf Wynnewood, will open on Friday, June 3 at 9 a.m. through permitee NSE Pennsylvania, LLC. Located at 257 Lancaster Avenue, Zen Leaf Wynnewood is open Monday through Saturday from 9 a.m. to 7 p.m. and Sunday from 10 a.m. to 6 p.m., local time.
Zen Leaf Wynnewood is located just outside of Philadelphia in Montgomery County, the third most populous county in Pennsylvania. Montgomery County experienced a population increase of 7% from 2010 to 2020.
“Reaching the milestone of operating 100 dispensaries nationwide is a result of the incredible dedication of our Verano team and the enduring loyalty of our valued customers,” said George Archos, Verano founder and chief executive officer. “We’re forever grateful to all our guests and team members for their support throughout this exciting journey, and look forward to celebrating this historic day in the great state of Pennsylvania by serving medical patients at our brand new Zen Leaf dispensary in Wynnewood.”
Zen Leaf Wynnewood will offer a suite of cannabis therapeutics, including flower, topicals, and vapes. For additional convenience and accessibility, patients can choose to order ahead at zenleaf.com for express in-store or curbside pickup. For more information about Zen Leaf medical cannabis dispensary, visit zenleaf.com.
The California Department of Cannabis Control (DCC) encourages cannabis licensees, including cultivators, impacted by the water drought to request disaster relief.
Climate change has caused severe water droughts in California communities. Since California Gov. Gavin Newsom issued his third state of emergency July 8, 2021—following one in April and another in May—extremely high temperatures have sustained and “increased water loss from reservoirs and streams, increased demands by communities and agriculture, and further depleted California’s water supplies,” the state of emergency states.
According to a press release from the DCC, state and local agencies throughout California are working to find ways to support water conservation efforts, which includes launching programs in certain jurisdictions where cultivators can converse water by fallowing their crops.
“If relief from DCC licensing requirements would make it economically feasible to participate in local fallowing programs, or would otherwise support California’s water conservation efforts, DCC encourages licensees to request disaster relief,” the DCC wrote in the release.
Licensees who cannot comply with the DCC’s licensing requirements due to disasters, such as the water drought crisis, may be eligible for disaster relief. Licensees must identify which DCC regulations they are requesting relief for and explain why the relief is needed.
“Long-term weather forecasts for the winter rainy season, dire storage conditions of California’s largest reservoirs, low moisture content in native vegetation and parched soils, magnify the likelihood that drought impacts will continue in 2022 and beyond,” the state of emergency states.
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