MjLink Cannabis Business News and Press

Despite commodity prices and demand growth that are the envy of every other industry, cannabis companies still go out of business sometimes. Why? That’s another story. But despite a spate of high-profile failures, there is still no well-paved path to liquidating a corporation that sells cannabis.

This puts potential lenders at risk, which in turn tends to increase the interest rates the remaining funders can charge.

As previously reported in Cannabis Business Times, debt raised through private placement is surging as industry firms seek capital. Still, just because investors might have a document entitling them to be paid back from an asset sale upon default, that doesn’t mean they’ll be able to collect.

“There is no guarantee,” according to court-appointed receiver Ted Lanes, whose California-based company works to assist creditors and defaulting companies find solutions. “Licenses typically cannot be used as collateral, and inventory has its own issues. Lenders may be able to secure loans with direct ownership of the stock or partnership interests, but those values obviously decrease in a distressed situation. If there is value in the brand, or any [intellectual property], that may mitigate the risk.”

When Bankruptcy Is Not an Option

There are two kinds of investors: equity holders and debt holders.

MARSHALL, Mich. – PRESS RELEASE – Common Citizen today announced it is seeking candidates for its community reinvestment program providing microgrants for arts and culture, early stage business and community impact projects in communities disproportionately impacted by outdated cannabis laws.

Common Citizen, which produces cannabis products for patients and adult-use customers, recently launched the community reinvestment program with all net profits from sales of Principle cannabis—sold in single, 1-gram pre-rolls in a decorative tin—funding the microgrants.

“I am thrilled to put our Principle microgrant program into action, and I am eager to receive applications from those who provide sustainable solutions addressing immediate needs in their communities,” said Jessica Jackson, Common Citizen’s Director of External Affairs and Social Equity. “We are particularly interested in projects that enhance homeownership access, workforce development and entrepreneurship, and address key issues such as expungement for those still paying the price for violating outdated cannabis laws that are no longer on the books.”

Principle microgrant applications are open through July 1, and the application can be found here. Organizations and initiatives led by and targeting communities impacted by redlining and disproportionate criminalization are highly encouraged to apply.

The For the Culture microgrant supports community well-being by providing supplemental funding for arts initiatives that are often cut first in the budgeting process. Potential projects include concerts, film screenings, gallery exhibits and fashion shows.

PRESS RELEASE -- TSRgrow has announced that is has expanded its GROWHub™ Software to include crop steering with TSRgrow Advanced LED Lighting. The latest TSRgrow lighting control software is designed to give cultivators the ability to create unlimited lighting zones within their facility and use lighting to crop steer and drive plant growth through integration with GROWHub environmental monitoring sensors, such as temperature, humidity, CO2, and VPD.  

Zone Mapping

TSRgrow Advanced LED Lighting Systems have been engineered to deliver high quality spectrum and efficacy for Controlled Environment Agriculture (CEA) with fully integrated monitoring and control of power and the environment. “Cannabis growers have always wanted to be able to let inputs from the growing environment drive their lighting output for ultimate crop steering," said Mikhail Sagal, President of TSRgrow. "Now they can - to increase yields and minimize operating costs.”

A lack of integrated technology has historically kept cultivators from practicing true precision zone control in Controlled Environment Agriculture (CEA). Starting at the lighting level, photoperiods, spectrums, and intensities must all adapt to the micro-climates in the grow facility.  

TSRgrow’s LED lighting platform features remote power servers to supply the LED fixtures at 95% efficiency while giving the ability to dim from 0-100% of the fixture output. Centralizing all fixture power outside the grow room reduces heat, installation and maintenance time and cost. GROWHub advanced LED lighting controls for unlimited zones and scheduling is built-in to the digital platform, allowing integrated flexibility accessible locally and globally through phone, tablet or computer.

Further integration of GROWHub wireless environment sensors for monitoring temperature, humidity, CO2, VPD and media EC and moisture, allows sensors to be strategically placed in the grow facility as part of TSRgrow’s TOTALgrow Solution. Other microenvironmental conditions are monitored zone by zone throughout the facility.

"Having the ability to dial in the right mixture of lighting during every grow cycle has changed the way we grow. We now have the option of fine-tuning our light recipe for each cultivar which helps us grow consistent, high-quality crops every harvest. 

The opportunity to join a nascent cannabis industry in 2019 was a big enough draw for Esther Song to switch her career path after spending nearly two decades in the fashion industry, including nine years at Tory Burch. 

She found new footing as the senior vice president of marketing and communications at MedMen, where she spent a year and a half, before taking on chief marketing officer (CMO) roles at Canndescent and Pure Beauty.

In March, Song became the CMO at San Jose, Calif.-based The Parent Company (TPCO), further diversifying the company’s executive management team, which includes CEO Troy Datcher, Chief Social Equity Officer Desiree Perez and Chief Transformation Officer Tanisha Robinson, among others.

While Song spent her earliest years in Long Beach, Calif., she moved with her family to Korea, where she spent most of her childhood, before she moved to Cypress, Calif., as a teenager.

“Ultimately, I love working for really fair and intelligent and ambitious CEOs,” Song said. “And Troy is an incredible CEO. Even in my [short time] here, I have learned so much from him, and I really was inspired to join his team as he navigates The Parent Company to our next chapter.”

Founded in January 2021, TPCO is vertically integrated with three manufacturing facilities, a wholesale distribution network of more than 450 California dispensaries, and a direct-to-consumer omnichannel platform that includes six delivery hubs and 11 retail locations in the state.

Cannabis Business Times and Cannabis Dispensary have launched the Best Cannabis Companies To Work For—2023. The awards program will identify and recognize the best employers in cannabis cultivation and dispensary markets, continuing the recognition the media brand debuted three years ago.

Registration and recognition is free. Visit bestcompaniescannabis.com to apply. The registration deadline is Sept. 2.

Rankings are determined primarily from the results of an employee questionnaire, where employees rate statements such as, “I feel I am valued in this organization,” and "I have confidence in the leadership of this organization" from “strongly agree” to “strongly disagree.” Companies have the option to purchase these insights (which are confidential and reported only in aggregate), which provides a glimpse at the overall morale of their teams and company cultures. 

A ranking of the “Best Cannabis Companies To Work For – 2023” in cultivation and retail will be revealed in Cannabis Business Times and Cannabis Dispensary in early 2023.

The survey is organized and managed by the Best Companies Group (BCG), an independent research firm specializing in identifying and recognizing great places to work.

“We are thrilled to continue this project for the fourth year and to not only recognize great cannabis companies, but also learn more about what makes certain cannabis companies so successful in creating positive work environments,” Editorial Director Noelle Skodzinski said. “Competition for talented employees is now even more intense, due in part to the economic pressures of the past year, and this program also can help ranking companies attract great talent.”  

A recent study shows that California dispensaries are working to prevent selling cannabis to underage customers.

The study, titled "What is the likelihood that underage youth can obtain marijuana from licensed recreational marijuana outlets in California, a state where recreational marijuana is legal?," was published in the Journal of Safety Research May 18.

The objective of the study was to assess how easy it was for underage individuals to purchase cannabis at licensed retail outlets in California, "where the penalty for furnishing marijuana to someone under age 21 is up to 6 months in jail and up to a $500 fine for a first offense," according to the study.

To meet this objective, undercover underage individuals were sent to 50 randomly selected licensed adult-use cannabis dispensaries in California before the COVID-19 pandemic to see if they could enter the facility without showing a valid ID.

The study found that 100% of the cannabis outlets studied have an adequate screening process and require individuals to show a valid ID to enter the facility. 

"It appears that licensed recreational marijuana outlets in California are checking young patrons for identification of their age. Therefore, it is unlikely that youth are purchasing marijuana directly from these outlets. It is more likely they are using other sources, such as asking an adult to purchase it for them, obtaining it from older friends or siblings, and using it at parties where the marijuana use might be shared," the study states.

North Carolina lawmakers are again considering adult-use cannabis legalization this year after Sen. Toby Fitch, a Democrat from Wilson and Edgecombe counties, put forth Senate Bill 765.

The 69-page bill, introduced May 30, aims to legalize and regulate the use, possession and sale of cannabis for adults 21 and older, according to a Port City Daily report.

RELATED: Majority of North Carolina Voters Support Medical and Adult-Use Cannabis Legalization, Poll Shows

S.B. 765 would allow adults 21 and older to possess up to 2 ounces of cannabis and grow up to two mature and two immature plants at home for personal use, the news outlet reported.

The bill would levy a civil penalty of $25 for those possessing more than 2 ounces, according to the Port City Daily, although those who possess more than a pound would still face felony charges.

A judge ended a court order May 27 that allows Illinois to issue 185 new adult-use cannabis dispensary licenses after a nearly 10-month delay, according to the Chicago Tribune.

Cook County Circuit Judge Michael Mullen lifted the stay that was issued last year to bar the state from awarding the licenses until ongoing litigation was settled, the news outlet reported.

The ruling allows businesses that have been waiting in limbo to begin taking steps toward opening their doors, such as finalizing zoning approval, securing real estate and hiring staff, according to the Chicago Tribune.

The lawsuits that sparked the stay on licensing were brought by companies that argued they were unfairly excluded from last year's lotteries to award the 185 new retail licenses.

RELATED: Illinois Cannabis Retail Licenses Still in Limbo After Third and Final Licensing Lottery

Legislative leaders in Virginia unveiled a new cannabis misdemeanor proposal in the state’s budget plan May 29.

The proposal would create a new criminal misdemeanor for the possession of more than 4 ounces of cannabis in public, according to the Richmond Times-Dispatch.

The measure marks the third time this year that Virginia’s lawmakers have considered creating new crimes for cannabis possession, the news outlet reported, despite former Gov. Ralph Northam signing an adult-use legalization bill into law last year.

RELATED: Virginia Lawmakers Reject Governor’s Cannabis Misdemeanor Proposal in Veto Session

The latest proposal lies within the proposed two-year state budget, which was revealed to the public Sunday, the Richmond Times-Dispatch reported.

Connecticut Gov. Ned Lamont has signed legislation into law to levy a heavy price tag on those who exchange cannabis products for donations or other purchases, a practice known as "gifting."

The bill allows municipalities to fine residents up to $1,000 for gifting a cannabis plant or related products, as well as gives the state authority to issue $1,000 fines for failing to pay state taxes on the exchanges, the Associated Press reported.

RELATED: Connecticut Senate Passes Cannabis Advertising, Gifting, Zoning Bill, Sending It to Governor

The legislation takes aim at unregulated cannabis bazaars that have popped up around the state since it legalized adult-use last year, according to the news outlet.

The events often require guests to pay to attend, and cannabis products are then exchanged for other items or given out with the purchase of another item, such as a T-shirt, AP reported.

TORONTO, May 30, 2022 (GLOBE NEWSWIRE) --PRESS RELEASE-- The Flowr Corporation (TSX.V: FLWR; OTC: FLWPF) herein announces its financial and operational results for the first quarter results for the period ended March 31, 2022.   All financial information in this news release is reported in thousands of Canadian dollars and represents results from continuing operations, unless otherwise indicated.

Tom Flow, Interim Chief Executive Officer of Flowr, commented:

“The first quarter of 2022 showed that we remain on track with our objective on maintaining our status as a premium cannabis producer. Also, our continued focus on cost reductions is showing in our bottom-line improvements.”

SELECTED FINANCIAL AND OPERATIONAL RESULTS

The following table summarizes the company’s key financial and operational results:

Financial Results (presented in $000s)

One of the most common CBD product positionings is relaxation—and for a good reason. According to Brightfield Group data, anxiety is the top reported condition consumers are treating with CBD, with younger generations most likely to report using CBD to manage anxiety. Brightfield has created a complex consumer group profile to better understand these younger, stressed consumers using CBD for anxiety: the Stressed Out Millennials, which Brightfield defines as millennials who report using CBD for psychological reasons like anxiety, depression and insomnia.  
Millennials are navigating adulthood in a particularly stressful social, economic and political climates. As this group looks to manage their mental health, CBD brands are offering products they hope will fill Stressed Out Millennials’ need for psychological relief.More than half (52%) of Stressed Out Millennials report using cannabis five days per week or more, making them 33% more likely than the average CBD consumer to use cannabis regularly.

Let’s explore the Stressed Out Millennials consumer category to understand who they are and what CBD products they’re choosing. 

Who are the Stressed Out Millennials? 

Stressed Out Millennials mainly consist of women (61%), and individuals who are partnered or married (60%), have children in the home (59%) and have a household income under $75,000 (67%). With this hectic reality, consumers in those groups are likely to use CBD five or more days per week and to have used CBD for over a year, compared to all other CBD users. Stressed Out Millennials are also significantly more likely (57%) to desire emotional relief from CBD products compared to all CBD consumers (35%).  

Aside from CBD, Stressed Out Millennials are also likely to use THC-dominant cannabis. More than half (52%) report using cannabis five days per week or more, making them 33% more likely than the average CBD consumer to use cannabis regularly. In line with this trend, Stressed Out Millennials’ top CBD purchase channel in Q4 2021 was dispensaries at 44% (where they buy their THC products).

In 2021, 47% of Stressed Out Millennials reported using CBD vapes, while 37% reported using CBD flower. The group’s affinity for inhalable products has grown over time, reaching its highest levels in Q4 2021.

Looking at Brightfield’s personality insights, Stressed Out Millennials are expectedly more anxious than the average consumer while also having a slightly more positive outlook on life. This group also tends to value luxury rather than be thrifty, indicating they are more likely to spend on superior or novel products than other consumers. 

Stressed Out Millennial Product Use 

Gummies are an explosively popular CBD product type, with consumer-reported use increasing from 40% in Q1 2021 to 53% in Q1 2022. However, Stressed Out Millennials’ gummy use has been higher than average for the last two years—especially at the end of 2020. The rest of CBD consumers have caught up to Stressed Out Millennials’ gummy usage, and the group no longer significantly over-indexes for the product type.  

TORONTO, May31, 2022 /CNW/ --PRESS RELEASE-- Khiron Life Sciences Corp.(TSXV: KHRN) (OTCQX: KHRNF) (Frankfurt: A2JMZC), a globalleader in medical cannabis throughout Europe and Latin America, announces thatit has entered into an agreement to acquire Pharmadrug GmbH from its parent PharmaDrug Inc. (CSE:PHRX) (OTC:LMLLF).

Pharmadrug GmbH has been active worldwide for almost 40 years as amanufacturer and wholesaler of medicinal products and active pharmaceuticalingredients. Pharmadrug GmbH is EU-GMP and EU-GDPcertified, fulfilling the European guidelines forthe highest quality standards and holds a license to handle narcotics inGermany.

Franziska Katterbach, President of Khiron Europe, stated: "Thisacquisition will provide us with a European manufacturing and distributioncentre for cannabinoid-based medicines with EU-GMP certification. This willhave a direct positive impact on our revenues and higher gross margins. Thelong-established German company will be instrumental in expanding Khiron'sproduct portfolio with new dosage formats and bringing Khiron's full-spectrumextracts to Germany and the United Kingdom to grow the patient base. Our teamin Europe is excited to join forces with new colleagues from Pharmadrug GmbH,with their valuable expertise in the German pharmaceutical market."

Under the terms of the deal, Khiron will acquire all of the shares ofPharmadrug GmbH from PharmaDrug, in consideration for common shares of Khiron and a promissory note. An aggregate of 5,500,000Khiron Shares are expected to be issued at closing (subject to certainadjustments to account for certain payments that may be made between signingand closing), at a deemedprice per Khiron Share of $0.16. The promissory note will be issued at closingin the principal amount of $1,100,000 (subject to certain other ClosingAdjustments) and will be non-interest bearing and repayable one year from thedate of issue in cash or, at Khiron's option, additional Khiron Shares issuedat the 10-day volume-weighted average trading price per Khiron Share on the TSXVenture Exchange at the time of issue. The transaction is subject to customaryclosing conditions, including the approval of the TSX Venture Exchange. It isexpected that the acquisition of Pharmadrug GmbH will constitute an"Expedited Acquisition" under the policies of the TSX VentureExchange. The parties are targeting a closing on or before the end of July,2022.  There can be no assurance that the Transaction will be completed asproposed or at all. The agreement was signed on May 31st, 2022.

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Oklahoma Gov. Kevin Stitt has signed legislation to pause medical cannabis licensing in the state.

The new law implements a two-year moratorium on medical cannabis licensing, prohibiting regulators from issuing new cultivation, processing and retail licenses from August 2022 to August 2024, according to a local KFOR report.

Current licenses will not be impacted under the measure, which Stitt signed into law May 26, the news outlet reported.

Rep. Rusty Cornwell, R-Vinita, introduced House Bill 3208 in January to give the Oklahoma Medical Marijuana Authority (OMMA) the power to implement a moratorium on licenses as regulators deem necessary.

RELATED: Oklahoma Lawmaker Introduces Bill to Pause Medical Cannabis Business Licensing

Search engine optimization (SEO) can be a helpful marketing strategy, but as with most marketing strategies, it’s only effective if you know what you’re looking for and what to do with it. Cannabis brands can benefit from SEO by understanding how people are finding their sites, and how they can use this information to grow their online traffic. 

So, how does that work exactly? Here are three ways dispensaries can use SEO to increase their sales.

Study the Keywords

The keywords that lead people to your site can teach you a lot, but not all keywords are the same. You can use a tool specifically designed for keyword research (my personal favorite is SEMRush) to get a more in-depth look at what’s happening behind the scenes, but Google’s suggested search feature can give you a lot of information too. While all kinds of keywords have value and a role to play in an SEO strategy, we’re going to focus on geographic and informational keywords and how they can impact your cannabis sales.

For a dispensary, geographic keywords such as “dispensary near (city),” or “best cannabis strains in (city)” are a natural fit because they’re less competitive than broader keywords like “best cannabis strains” that have more search volume and are subsequently way more competitive and difficult to rank for. What’s the point of this? It helps you figure out what terms to put in your title tags, H1s, and other website content, which will in turn help connect your website with the customers who are searching for it. 

On the other hand, informational keywords don’t have as much direct purchase intent, and are instead being used for research purposes. They’re still valuable though! Some examples of these might include “what is cannabis” or “what’s the difference between indica and sativa.” That’s right, the same questions you probably get asked a million times per day by your customers are the same ones they’re looking up online. Identifying those questions, answering them in a genuinely helpful way, and optimizing the pages people are landing on can help increase the traffic coming to your site. If you have a blog, these queries can make excellent topics for blog posts, which will in turn increase traffic. Answering user questions also helps establish your business as a trusted authority, which is a factor in SEO success. 

Gather Competitive Research

You can gain a lot of useful information from researching your competitors. The more similar their business is to yours, the more useful the information will be. Everything from the keywords they’re ranking for to the way they structure their products and content on their websites can offer useful insights into what works well in your industry and your area. Research and take note of things that are working well, and things you could potentially experiment with on your own website. 

Originally from Ventura County, Calif., Jason Evans spent his summers working on his family's roughly 1,000-acre farm.

They grew various crops such as tomatoes, lima beans, peppers, jalapenos and more. "Basically, stuff that goes into salsa," Evans says with a laugh.

Evans explains that after seeing his family's stressors on the farm, he decided to go to college to study finance instead of taking over the family farm. 

Upon graduating, he spent about 20 years in San Francisco in institutional fixed income, he says. He retired from that in 2012 and moved on to own two brick-and-mortar "soda pop and candy shop" retail stores. He had one location in Portland, Ore., and another in Palm Springs, Calif., he says.

"I was traveling between the two and not really enjoying it," he adds.

In late 2015—following the passage of the 2014 Farm Bill—he decided to go back to his roots and co-founded Tweedle Farms with James Green.

The Tennessee Department of Agriculture(TDA) and Farm Service Agency (FSA) is working together to remind Tennesseehemp producers of important deadlines for the 2022 growing season. 

In a recent press release, TDA’s Hemp Coordinator Denise Woods said, “It’simperative that current producers complete their applications now to ensure nolapse in licensure. Producers can easily complete their application online, andwe also have a Hemp Grower Application Checklist at the bottom of theapplication to help them make sure they have all requirements submitted.”

All hemp producers must belicensed by the TDA and are required to set up a Farm Record with the FSA andreport their hemp crop acreage yearly by the July 31 annual deadline, accordingto the release.

In addition, already licensedproducers must reapply through the TDA by 4:30 p.m. CDT June 30; however, newproducer applications will be accepted all year and expire June 30 annually. Ifthe producer does not submit their application, license fees and requireddocumentation by 4:30 p.m. CDT June 30, the producer's license will expire, therelease states. 

“We want to see this evolvingagricultural sector progress in Tennessee,” Agriculture Commissioner CharlieHatcher said. “We both play a part in the successful implementation of thestate’s hemp program by working together to support growers and providingresources for them.”

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A handful of companies have landed in the crosshairs of the U.S. Food and Drug Administration (FDA) for illegally selling unapproved CBD products intended for use in food-producing animals.

The FDA announced May 26 that it had issued warning letters to four businesses—Haniel Concepts dba Free State Oils, Hope Botanicals, Plantacea LLC dba Kahm CBD and Kingdom Harvest—for violating the Federal Food, Drug, and Cosmetic (FD&C) Act.

“Under the Federal Food, Drug, and Cosmetic (FD&C) Act, any product intended to treat a disease or otherwise have a therapeutic or medical use, and any product (other than a food) that is intended to affect the structure or function of the body of humans or animals, is a drug,” FDA officials wrote in the announcement. “The FDA has not approved any human or animal products containing CBD other than one prescription drug product to treat rare, severe forms of epilepsy in children.”

That prescription drug, Epidiolex, was approved in 2018, and the FDA considers all other CBD products that are intended for use as a drug as unapproved drugs that remain illegal to sell, according to the agency’s release.

RELATED: DEA Greenlights Epidiolex. What’s Next for CBD and the Cannabis Industry?

Cart size, otherwise known as average order value (AOV), for wholesale cannabis transactions varies significantly across markets and over time due to specific market conditions, regulations, and product popularity.

To gain additional perspective on consumer trends, we analyzed AOV alongside product category market share and pricing to determine if the contents of a cart and/or price shifts impact cart size. Markets analyzed include California, Oregon, Colorado, Michigan, Nevada, Washington, Arizona, Oklahoma, and Alaska. To start, let’s look at the current state of AOV within LeafLink data and then identify any trends that exist across these markets.

Average Order Value in 2022

Between Jan. 1 and April 4 of this year, overall AOV in LeafLink was $3,750 across the nine markets—less than in 2021 ($4,107) and 2020 ($4,000). Combining this data with insights on order volume and frequency provides additional context to tell the full story.

Even while average order value decreased, the total number of orders increased. Total orders per month across these nine markets grew by 35.7% from 2020 to 2021 and 15.6% in 2022 due to a combination of additional buyers using LeafLink and increased purchase frequency.

When analyzing market-level data, there are clear distinctions between buyer behavior and a lot of variance across these markets.

2022 AOV and Most Popular Categories By Market

Market	AOV	#1 Category	#2 Category	#3 Category
MI	$7,596	Flower	Cartridges	Concentrates
NV	$7,007	Cartridges	Flower	Edibles & Ingestibles
AZ	$6,154	Cartridges	Edibles & Ingestibles	Flower
CA	$3,544	Flower	Pre-Rolls	Cartridges
AK	$3,081	Flower	Cartridges	Edibles & Ingestibles
WA	$1,987	Flower	Edibles & Ingestibles	Concentrates
CO	$1,834	Cartridges	Concentrates	Edibles & Ingestibles
OR	$1,531	Flower	Cartridges	Edibles & Ingestibles
OK	$1,014	Edibles & Ingestibles	Cartridges	Flower

Categories are ranked by their percentage of transaction volume in LeafLink. MI, NV, and AZ see the largest average order values, while AOV drops off for CA and AK respectively, then even further in WA, CO, OR, and OK when measured from Jan. 1 to April 4, 2022.

When considering market maturity within the AOV hierarchy, we can see a trend: States that were first to legalize adult-use cannabis generally see AOVs decrease as more buyers and sellers open their doors and the markets mature and stabilize. Oklahoma is an exception as the state legalized cannabis solely for medical use in 2018. So, what other variables might impact AOV?

OAKLAND, Calif. and TORONTO, May 26, 2022 /CNW/ --PRESS RELEASE--Harborside Inc.(CSE: HBOR) (OTCQX: HBORF),a California-focused, vertically integrated cannabis enterprise, today filedits interim financial statements and management's discussion and analysis forthe three months ended March 31, 2022 under the company's profile on SEDAR at www.sedar.com.

The Q1 2022 Financial Results encompass a period reflecting only one monthof contribution from UL Holdings Inc. ("Urbn Leaf"), which the company acquired on March 1, 2022, and no contribution from LPF JV Corporation("Loudpack"), which the company acquired subsequent to quarter-end onApril 4, 2022. The Loudpack and Urbn Leaf acquisitions have transformed the companyinto one of the largest vertically integrated cannabis enterprises inCalifornia.

Board of Directors Appointment
Harborside also announced that Felicia Snyder has joined the board ofdirectors of the company, effective immediately. An entrepreneur,corporate strategist, seasoned cannabis executive and brand builder, Ms. Snyderis currently Founder and co-CEO of Arcana, an experiential hospitality brand.She was a founding executive at Tokyo Smoke, one of Canada's most recognizedcannabis brands and a leading Canadian cannabis retailer, where she helped toscale the business through its merger with Doja Cannabis and eventual sale toCanopy Growth Corporation. Post-acquisition, she was Vice President at CanopyGrowth, managing a portfolio of premium cannabis brands across all productcategories. Prior to Tokyo Smoke, she worked for several years in South Koreawith Samsung Electronics, where she oversaw a variety of projects related tobusiness strategy, acquisitions, investments, partnerships, and development ofnew products and services. She is also a Google alum and started her career inFinancial Services Management Consulting at Oliver Wyman, a global consultingfirm. She holds an MBA from the Wharton School of the University of Pennsylvania.

"On behalf of the Board and management team of Harborside, I amdelighted to welcome Felicia to the Harborside team," said Ed Schmults,Chief Executive Officer. "Her diverse skillset and significant cannabisindustry experience are valuable additions to Harborside as we work tointegrate our recent acquisitions and build the flagship California cannabiscompany."

The appointment of Ms. Snyder to the Board fills a vacancy created bythe previously announced resignation of Michael Dacks.

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