MjLink Cannabis Business News and Press
MIAMI, May 12, 2022 (GLOBE NEWSWIRE) -- PRESS RELEASE -- Ayr Wellness Inc., a vertically integrated U.S. multi-state cannabis operator (MSO), today announced the opening of its 47th Florida dispensary, located in Clermont, a western suburb of Orlando.
The new dispensary spans 4,000 square feet of retail space and is located near Clermont Historical Village. The store features Ayr’s full line of concentrates, edibles, gummies, vapes and a selection of high-quality flower, including newly launched Kynd whole flower offerings and Walking STiX pre-rolls.
“We continue to open stores in Florida at a rapid pace, with today’s opening marking 47 locations across the state,” said Jonathan Sandelman, founder, chairman and CEO of Ayr. “The expansion of our Florida footprint, combined with the continued rollout of our national brands like Kynd, STiX and Entourage, positions us well to continue to capture market share throughout the Sunshine State.”
In February 2021, Ayr purchased Florida-based Liberty Health Sciences, which included 31 dispensaries across the state. Since then, the company has opened 16 additional locations–bringing the current total to 47 stores.
In 2021, Ayr relocated its U.S. headquarters from New York City to Miami, underscoring the company’s commitment to the region. Florida has ~715,000 patients enrolled in its medical marijuana program as of May 6, 2022, per Florida OMMU. Florida’s cannabis market ranks third in the nation by total legal cannabis sales, per BDSA, and generated over $1.8 billion in medical cannabis revenue in 2021. BDSA expects Florida’s cannabis market to generate $3.4 billion per year by 2026.
NORWOOD, Mass., May 12, 2022 – PRESS RELEASE – MariMed Inc., a leading multistate cannabis operator focused on improving lives every day, announced the appointment of Jon Levine to the new role of chief administration officer (CAO) and the appointment of Susan Villare to chief financial officer (CFO) effective May 12, 2022. Strengthening MariMed’s leadership team will enable the company to more effectively implement its strategic growth plan and solidify MariMed’s status as a premier national cannabis company.
Levine co-founded MariMed with CEO Bob Fireman. As the company’s CFO, he drove the financial discipline required to make MariMed an industry leader. The company’s finance and accounting teams, operations, sales and marketing, and external communications will all now report to Levine as CAO.
Villare is a CPA and finance executive with nearly 30 years of experience leading global and national organizations through transformations and dynamic growth. Most recently, Villare was the senior vice president of Financial Planning and Analysis and treasurer for Ribbon Communications and held CFO and other senior finance leadership positions for public and private companies, including BigBand Networks, Burst Media, MatrixOne, and Price Waterhouse. She has an accounting degree from Boston College and is skilled in the areas of financial reporting and analysis, mergers and acquisitions, ERP implementations, investor relations and more.
"Jon has been a driving force behind MariMed’s success the past decade, including positioning us financially to achieve our ambitious growth goals,” Fireman said. “As CAO, and with Susan, a seasoned finance executive in place, Jon can now assume a greater role to use his decade of cannabis management and operation experience to help lead MariMed into the next phase of our promising future.”
Levine said, “I am excited to embark on this expanded role at MariMed, which is possible in large part because we are welcoming such a talented executive to take on our CFO role. Susan’s experience managing and analyzing complex financial and accounting data, and negotiating and integrating dozens of acquisitions in high-growth industries, will be invaluable as MariMed embarks on the next phase of its growth strategy.”]]>Fast Take With Matt Darin, Curaleaf CEO
Biggest challenge in either launching or maintaining a cultivation operation:
Missouri's medical cannabis sales had yet another record-breaking month in April totaling $335.8 million—up roughly 11% from March.
April's sales saw a 773.3% increase from last April, which brought in $38.5 million, according to data from the Missouri Department of Health and Senior Services (MDHSS).
Sales have also seen a steady month-over-month increase since they began in October 2020, and since the program's launch, the MDHSS has issued over 185,000 medical cannabis cards to patients and caregivers, according to a press release from the Missouri Medical Cannabis Trade Association (MMCTA).
Missouri is also working to broaden participation within its cannabis industry this year through its 2022 ballot initiative. According to the MMCTA release, the initiative would specifically target "small business owners and among historically disadvantaged populations, including those with limited capital, residents of high-poverty communities, service-disabled veterans and those previously convicted of non-violent marijuana offenses, among other categories," according to the release.
The state would create a new licensing category reserved for small businesses to add a minimum of 144 licensed facilities to the existing 378. The new licensing category would also allow "operators to both cultivate the plant and manufacture cannabis products," according to the release.
A monthslong legal battle between a pair of multistate cannabis operators over a definitive acquisition agreement is on its way to being resolved.
New York-based Ascend Wellness Holdings Inc. (AWH) announced May 11 that it signed a term sheet to settle a lawsuit against Los Angeles-based MedMen Enterprises Inc. and acquire 99.99% controlling interest in subsidiary MedMen New York Inc. (MMNY) for $88 million—$15 million more than originally considered.
The filings in the lawsuit stemmed from an earlier $73-million definitive investment agreement between the two companies on Feb. 25, 2021. One of New York’s 10 licenses to distribute medical cannabis was on the table in that agreement.
But MedMen officials backed out of the deal, announcing Jan. 3, 2022, their decision to terminate the investment agreement just weeks after the two companies received final approval from the New York Cannabis Control Board and the state’s Office of Cannabis Management for the acquisition, sparking legal claims.
RELATED: Ascend Wellness Files Amended Complaint Against MedMen
To settle the dispute, Ascend officials announced Wednesday that they will increase the transaction consideration by $15 million, $4 million of which is contingent on the start of adult-use sales at an MMNY dispensary.
Edwardsburgh, ON, May 11, 2022- PRESS RELEASE - Purplefarm Genetics, a cannabis company in Johnstown, Ontario, has announced that it has entered into a business partnership with U.S. based Tyson 2.0, legendary boxer, entrepreneur and cannabis advocate Mike Tyson’s recently formed cannabis company. Through the partnership, Tyson 2.0 and Purplefarm Genetics will aim to bring innovative, craft cannabis products, develop curated content and create a customized brand strategy across Canada.
The undisputed heavyweight champ first began using cannabis to promote relaxation and concentration. Mike Tyson said, “I wish I discovered the many benefits of cannabis earlier in my boxing career. Cannabis brings relief and repair to the mind and body, and it has changed me for the better. Through Tyson 2.0 cannabis products, tested and approved by me, I can now share that gift of cannabis with others seeking greater wellness."
Purplefarm Genetics produced proprietary genetics for Tyson 2.0’s TKO, a craft strain which will be available in 7-gram bags starting in mid-May 2022. Grown in Purplefarm’s dedicated cultivation facility, all of the flower in this collection is trimmed, dried, and packaged by hand utilizing only the top portion of the bud while discarding the middle sections. Tyson 2.0 will also sell its ear-shaped edibles, Mike’s Bites, beverages and concentrates in collaboration with Purplefarm Genetics retailers. The products will first be available starting in May across British Columbia followed by Quebec and Ontario, Canada’s largest and most populous provinces in Fall of 2022.
Purplefarm Genetics’ mission is to grow unique cultivars with consistently rich cannabinoid and terpene profiles for the Canadian medical and recreational markets. With a commitment to operational transparency and cultivation excellence, the Purplefarm Genetics’ team will bring to the Canadian market incomparable cannabis products that can only be derived through innovative, precision agriculture.
“We are honored to collaborate with Purplefarm Genetics, one of the leading cannabis producers in Canada known for unrivaled quality, to bring Tyson 2.0 TKO and Mike Bites to Canadians nationwide,” said Mike Tyson, Chief Brand Officer and co-founder of Tyson 2.0.
LAS VEGAS, NV / ACCESSWIRE / May 10, 2022 / PRESS RELEASE / Planet 13 Holdings Inc., a vertically-integrated multi-state cannabis company, announced the second location of its planned Florida dispensary network located in the city of Port Richey, a prominent suburb in the rapid-growth Tampa - St. Petersburg - Clearwater region.
"We are continuing to execute on our Florida expansion in line with our budget and timeline. This is our second dispensary location of our initial six neighborhood dispensaries targeted towards major Florida population centers with underserved local residents," said Larry Scheffler, co-CEO of Planet 13.
The location in Port Richey is on a busy retail corridor near a Home Depot and on the way to the popular waterfront destinations from downtown.
For more information on Planet 13, visit the investor website.
Curio Wellness named Greg Miller as the company’s new president of retail, effective May 3.
Miller will lead Far & Dotter, Curio Wellness’ retail subsidiary. In his new role, Miller will be responsible for raising the company’s national profile in regard to cannabis quality, patient education, and counseling, company officials said in a release.
Miller comes to Curio Wellness with experience as a former executive at McDonald’s and, more recently, as chief operating officer at Taco John’s, where he led operations, training and development, franchising, construction and real estate, and restaurant technology.
RELATED: BellRock Brands Announces Exclusive Licensing Agreement with Curio Wellness
He will join Curio’s executive leadership team and report directly to Chairman and CEO Michael Bronfein.
“At Far & Dotter, we are committed to living out Curio Wellness’ patient-first approach. Greg’s career demonstrates that he too is intensely focused on delivering excellence for his customers, and building brand loyalty and trust,” Bronfein said. “Greg’s extensive experience in franchise operations lends itself well to the growth of the Far & Dotter brand. I look forward to collaborating with him as he shapes the future of our innovative business model intended to increase diversity in the cannabis retail industry.”
Miller also expressed gratitude and optimism in his new position as president of retail at Curio Wellness.
Cannabis consumption lounges are legal in California but not in Sacramento. But now, the state’s capital is looking to jump on board.
During a Tuesday committee meeting, city officials were set to review several issues related to cannabis, including a proposal that would allow licensed dispensaries to create designated onsite areas for individuals to consume cannabis.
The proposal touches on ideas like monitoring individual usage, implementing employee training, setting time limits, and having lounges be required to offer ride-share services or regional transit passes, MSN reported.
Officials could reach a decision on the proposal later this month.
]]>Israel net revenue increased by 263% year-over-year to $9.1 million in Q1 2022Increased market share in Canada and Israel in Q1 2022Mike Gorenstein returned as CEO
TORONTO, May 10, 2022 – PRESS RELEASE – Cronos Group Inc., an innovative global cannabinoid company committed to building disruptive intellectual property by advancing cannabis research, technology and product development, announced its 2022 first quarter business results.
“I founded Cronos because of the once-in-a-lifetime opportunity to help build and shape an industry that has the potential to improve countless lives. As CEO, I am committed to re-instilling a start-up culture with a founder’s mentality across all levels of the organization,” said Mike Gorenstein, chairman, president and CEO at Cronos Group. “The strategic realignment we announced in the first quarter of 2022 reset the organization to this mindset and we are seeing the benefits show through in our performance.”
“Our execution in product development, manufacturing, and go-to market strategy resulted in strong growth in both net revenue and gross profit in the first quarter of 2022, proving that we are headed in the right direction. Our Spinach brand is one of the most sought-after brands in the Canadian adult-use market, known for bringing high quality and differentiated products to the consumer. We are also winning with branded products in Israel, with Peace Naturals driving significant revenue growth in the first quarter of 2022. As we execute our strategic realignment, I am encouraged with the progress we are making by increasing our market share in both Canada and Israel, and continuing to bring disruptive branded products to market. In combination with our industry leading balance sheet, our borderless products, such as SOURZ by Spinach winning in Canada, is one of the best ways to be prepared for legalization in the U.S.”
Full details of financial results for the period ending March 31 can be viewed here.
First Quarter 2022
Cleveland leaders’ attempt to expunge cannabis possession convictions en masse has run into a legal wall, one month after Mayor Justin Bibb and other city officials carried boxes of filings to the Justice Center to expunge over 4,000 convictions.
Now, the city’s government is changing course. State law requires that residents make their own requests to expunge their criminal records, according to Ideastream Public Media. So, Cleveland’s law department plans to file motions in municipal court this week to dismiss charges and vacate convictions, per the news outlet.
The new approach is different from expungement because the initial arrest record remains on file. What’s more, the city “would likely owe court costs and fines paid back to the defendant,” according to the Cleveland Scene, citing Cleveland Municipal Judge Michelle Earley and Cleveland.com.
]]>Two Arkansas groups are collecting signatures to send competing adult-use cannabis legalization proposals to the state’s November ballot.
Responsible Growth Arkansas and Arkansas True Grass must gather roughly 89,000 signatures before a July deadline to get their proposed constitutional amendments before voters this year, according to a local KUAR report.
RELATED: Voters in These 9 States Could Decide Cannabis Fate in 2022
Responsible Growth Arkansas’ measure would expand the number of cannabis cultivation licenses in the state to 20 and the dispensary licenses to 40, the news outlet reported.
“It will allow for an opportunity for us to see more nuances in the Natural State for lower yield, higher quality [and] better products that will hopefully be in the market for customers to consume,” Responsible Growth Arkansas Chairman Eddie Armstrong told KUAR.
A new study on California’s cannabis tax structure and low participation in the state’s legal market suggests that lawmakers should consider repealing or suspending the cultivation tax—a revenue stream that grossed more than $163 million in 2021.
The six-part study was published May 4 in a 42-page report by Los Angeles-based Reason Foundation, a nonprofit libertarian think tank. It provides an empirical model to estimate the degree to which California’s tax regime affects participation within its commercial cannabis market.
One key finding was that keeping the state’s current tax structure would generate slightly more revenue than reducing tax rates, based on market growth projections for December 2024. However, eliminating the cultivation tax would bolster enough market growth to yield similar revenue results over the same time period (see full details below).
The study also provides further insights on California’s various tax structures and examines consumer decisions to participate in the legal or illegal market in an effort to quantify the impact of taxes on participation.
“Taxes affect both consumers’ and producers’ decisions in the legal market primarily by introducing a price disparity between legal cannabis products and comparable cannabis products offered through the illicit market,” wrote Geoffrey Lawrence, the foundation’s managing director of drug policy, who authored the report.
“Similarly, local bans on legal sales over extended geographic areas can drive consumers without access to legal products within a reasonable distance of their homes to purchase substitute goods on the illicit market,” he added.
Oklahoma lawmakers are taking aim at a state law that penalizes medical cannabis diversion with an administrative fine with legislation that would increase the penalty for such offenses.
The Oklahoma Senate approved Senate Bill 1367 May 5, sending it to Gov. Kevin Stitt, according to a local KFOR report.
The bill, which cleared the House last month, would increase the penalties for registered patients who purchase medical cannabis and then sell it to non-cardholders, the news outlet reported.
The legislation would up the fine for individuals who divert medical cannabis from $200 to $400 for the first offense and from $500 to $1,000 for the second offense, according to KFOR.
“As many Oklahomans know, when State Question 788 was passed to legalize medical marijuana, we were quickly thrown into a situation where we needed to create the framework and guidelines for this industry,” Sen. Lonnie Paxton, R-Tuttle, one of the bill’s sponsors, told the news outlet. “Unfortunately, this led to the inadvertent mixing of medical marijuana legislation and criminal justice reform legislation, resulting in the ability for someone to buy marijuana product legally, but then re-sell it to a child or someone who doesn’t have their card, with only an administrative fine. Ultimately, this is drug dealing, but only with the equivalent offense of a traffic ticket. S.B. 1367 fixes this loophole and makes this practice a criminal offense.”
As cannabis and hemp producers navigate the nuances of cannabinoids, one industry segment that is attracting fresh attention is pet CBD. Consumer insights data firm Brightfield Group currently tracks 63 brands operating in the pet CBD market. According to the group’s 2021 Pet CBD Survey, sales of CBD intended for pet use accounts for more than 9% of the total CBD market. That’s roughly $430 million in a market now hitting $4.7 billion annually. But for producers and manufacturers considering pet-destined cannabinoids, market potential is only part of the equation.
Who’s Buying Pet CBD and Why?
Brightfield data for all CBD consumers reveals that 28% of those who have pets report giving their pets CBD. Brightfield Senior Insights Manager (and former Cannabis Business Times managing editor) Brian MacIver shares that pet CBD buyers skew toward urban and suburban women who use CBD themselves. Pet CBD purchasers also tend to be mid- to high-income earners, with 60% of respondents to a Brightfield survey earning more than $50,000 per year. While pet CBD buyers span all generations, millennials make up more than half of pet CBD buyers.
When it comes to pets enjoying CBD benefits, dog lovers dominate the pet CBD market. Based on Brightfield data, more than three out of every four pet CBD purchases are for dogs. While purchases for cats cruise into second place, at roughly 20% of purchases, consumers with less conventional pets are turning to pet CBD, too: Rabbits, fish, horses, rodents and reptiles were all represented.
MacIver shares that pet owners who use CBD for their companions most often report using it to relieve general or situational stress or anxiety. Respondents to the 2021 Pet CBD Brightfield survey also noted that they use pet CBD, similar to a supplement, to improve their pet’s wellbeing. “In terms of specific ailments, nearly one in four pet CBD users treat their pet’s arthritis with these products,” MacIver adds. And while veterinarian opinions typically matter to pet CBD buyers, many can’t freely discuss cannabinoid treatments with their family vet.
Where Does Veterinary Medicine and Cannabinoid Research Stand?
Brightfield’s 2021 Pet CBD Survey found that 70% of surveyed pet owners reported talking with their pets’ veterinarians about pet CBD. The vast majority said they were met with positive responses; however, many veterinarians typically hesitate to initiate conversations about CBD.
Cornell University College of Veterinary Medicine Professor Joseph J. Wakshlag, DVM, Ph.D., explains that many veterinarians don’t feel they know enough or have enough clinical data about cannabinoids to recommend them. For many others, the American Veterinary Medical Association (AVMA) warns against prescribing cannabis- or hemp-derived products for animals.
SALINAS, Calif., May 10, 2022 (GLOBE NEWSWIRE) -- PRESS RELEASE -- Lowell Farms Inc. (CSE: LOWL; OTCQX: LOWLF), a California-born innovator in cannabis cultivation and maker of the brand Lowell Smokes, announces unaudited revenue and operating results for the first quarter and fiscal year (ended March 31, 2022). All figures stated are in US Dollars.
First Quarter Financial Highlights:
Revenue generated for the three-month period ended March 31, 2022 was $12.4 million; an increase of 13% from Q1 2021.CPG revenue increased 10% sequentially, primarily due to increases in pre-roll and packaged flower revenue.As expected, Lowell Farm Services (LFS) revenue declined $2.8 million from fourth quarter seasonal high levels.Gross margin as reported was 12.7% in the first quarter compared to negative 12.3% sequentially and negative 13.4% year over year.Operating expenses were $4.0 million or 33% of sales for the quarter, compared to $6.3 million or 42% of sales in the fourth quarter last year and $4.2 million or 38% of sales in the first quarter last year, reflecting cost reductions realized in the current quarter.The operating loss in the first quarter was $2.5 million compared to an operating loss of $8.2 million sequentially and an operating loss of $5.7 million year over year, reflecting the favorable impact from increased sales, cost reductions and efficiencies.Net loss for the first quarter was $4.1 million compared sequentially to a net loss of $10.0 million, which compares to a net loss of $6.7 million in the first quarter last year.Adjusted EBITDA in the first quarter was negative $0.9 million compared sequentially to adjusted EBITDA of negative $3.6 million and negative adjusted EBITDA of $4.6 million year over year. Adjusted EBITDA is a non-GAAP financial measure. See “Use of Non-GAAP Financial Information” below for further information and a detailed reconciliation to Net Loss, the closest comparable GAAP measure.| Revenue Summary ($’s in ‘000) |
| Q/Q | Q/Q | |||||||||
| Dec 31, 2021 | March 31, 2022 | % Change | $ Change | |||||||
| CPG Revenues | $ | 8,219 | $ | 9,077 | 10 | % | 858 | |||
| Bulk Product | $ | 2,609 | $ | 2,259 | -13 | % | (350 | ) | ||
| LFS | $ | 3,153 | $ | 350 | -89 | % | (2,803 | ) | ||
| Out-of-State Licensing | $ | 1,092 | $ | 723 | -34 | % | (369 | ) | ||
| Net revenue | $ | 15,073 | $ | 12,409 | -18 | % | (2,664 | ) | ||
“For the second quarter in a row, Lowell Farms has taken the lead as California’s largest combined seller of packaged flower and all-flower pre-rolls in California per Headset,” says Co-Founder and Chief Executive Officer Mark Ainsworth. “You get there by selling a consistent, quality product that consumers have learned to trust and that is exactly what we sell.
“We also continue to make great strides with our out-of-state licensing partnerships, rising to become one of the top players in both of those markets for pre-rolls. That is a strong statement about the power of that brand.”
Subsequent events to the first quarter ended March 31, 2022:
(Mendocino County, CA) - PRESS RELEASE - The inaugural Mendocino Craft Farmers Auction (MCFA) presented by the Mendocino Cannabis Alliance (MCA) and the Mendocino Producers Guild (MPG) will be held on July 16 in Mendocino County. This first-of-its-kind event will be hosted courtesy of Jim Roberts and Brian Adkinson of The Bohemian Chemist cannabis brand, who also own The Brambles, an event venue in the heart of the redwoods in the Anderson Valley of southern Mendocino County.
MCFA is a charity auction, with proceeds going to support the invaluable resources made available within Mendocino County by Redwood Community Services Crisis Response. This is an opportunity for the cannabis community of Mendocino to give back to the broader community and the county, while at the same time raising consciousness about the high quality of the cannabis produced here and the incredible people who produce it.
Auction items will include rare opportunities such as visits and overnight stays at some of the top local cannabis producers farms, health and wellness experiences, fine dining and adventures in our world-famous wilderness. Other items offered will include locally made crafts, gift certificates from local businesses, farm products and more. Generous donors should not be surprised if their generosity is matched by growers who want to share from their Private Reserve for a truly unique and coveted experience.
The affair will start in the late afternoon when guests can explore items featured both on the silent and live auctions, sip local wines from Maple Creek Winery and sample some of the finest cannabis in the world, shared by Mendocino farmers. An elegant supper will follow catered by Chef Dan Hagopian of Sonoma Market. The Live Auction will kick off during dessert, to be followed by lively dancing under the stars and the redwoods with music provided by DJ Mo Magic, herself a small farmer from Covelo in northeastern Mendocino.
This is a great way for visitors to discover the eclectic wonders of Mendocino County. Accommodations will be available on site at the Brambles and their sister location, The Madrones, as well as in nearby hotels. Upon purchase of your ticket you will receive details about special discounts for those attending the event.
The New Jersey Supreme Court is set to decide on how law enforcement and employers measure cannabis impairment.
The case, State v. Olenowski, has questioned the use of specially trained officers, called Drug Recognition Experts (DREs) who perform cannabis sobriety tests, as well as the protocol used by these officers, according to an NJ.com report.
The state Office of the Public Defender (OPD) has challenged the scientific validity of how police officers detect drug impairment, including the detection of drivers suspected to be under the influence of THC, the news outlet reported.
The outcome of the case could ultimately impact other provisions in New Jersey’s law that require drug testing in the workplace, NJ.com reported, since employers' testing protocols often mirror those used by DREs in law enforcement.
Krista Nash, a member of the New Jersey Cannabis Regulatory Commission (CRC), said May 7 during a cannabis business event hosted by CBD delivery company Roll-Up Life that regulators are awaiting the outcome of the case before writing rules governing how cannabis impairment is measured, according to NJ.com.
Vermont lawmakers voted last week to limit the potency of solid cannabis concentrates in the state’s forthcoming adult-use marketplace.
The House Committee on Government Operations voted May 5 to amend H. 548 with a provision that would prohibit solid cannabis concentrates containing over 60% THC from the adult-use market, according to the VT Digger.
H. 548 is one of four bills aimed at establishing Vermont’s commercial adult-use market, which is set to launch in October, the news outlet reported.
Rep. John Gannon, D-Wilmington, proposed the amendment to cap the potency in solid cannabis concentrates and the change was approved in a voice vote last week, according to the VT Digger.
Senators then expressed their displeasure at the amendment May 6 before moving the legislation to a conference committee with the House to settle their differences over the THC cap, the news outlet reported.
Has your business added hemp-derived delta-9 THC products to its menu?
Many U.S. hemp companies have begun selling products that contain delta-9 THC, the cannabinoid that differentiates hemp from cannabis. These companies market these products as hemp-derived and federally compliant under the 2018 Farm Bill, claiming they contain less than the 0.3% THC limit set for hemp.
How are these products getting on shelves?
As previously reported by Cannabis Business Times, companies are creating these delta-9 products by making them weigh enough using other ingredients to remain within that 0.3% THC limit.
Still, there is much legal controversy around these products and how a "dry-weight" basis is measured.
RELATED: Delta-9 in Edible Hemp Products: What's a 'Dry Weight Basis' Anyway?
