MjLink Cannabis Business News and Press
Competition for Connecticut’s First Dozen Cannabis Retail Licenses Includes 15,600-Plus Applications
The competition to win one of 12 adult-use cannabis retail licenses in Connecticut is fierce, but some applicants have greater odds than others for an upcoming lottery.
Overall, there were 8,357 applications submitted for the first six social equity licenses ahead of the May 4 deadline, and there were another 7,245 license applications submitted for the first six general licenses, according to figures released by the Connecticut Department of Consumer Protection (DCP).
While there’s less than a 1-in-1,000 chance for each application in a lottery expected to take place this week, not all applicants have the same odds of winning, CT News Junkie reported.
“They can apply as much as they want, but they have to pay a fee every time,” DCP Communications Director Kaitlyn Krasselt told the news outlet.
The nonrefundable application fees were $500 for general retail licenses and $250 for social equity retail licenses, according to DCP. Social equity applications not selected in the social equity lottery will be added to the general lottery, Krasselt said.
While the social equity licenses are reserved, in part, for those who had an average household income of less than three times the state median household income over the last three tax years, Connecticut’s application system favors those who can afford to pay for multiple applications.
SARASOTA, Florida, May 10, 2022 - PRESS RELEASE - Grower's Ally, a producer of safe and effective pesticides for cannabis and hemp, announced the release of its newest addition to the Grower's Ally product family.
Crop Defender 3 is a triple-action crop protection formula made with a synergistic blend of botanical oils and a surfactant. The OMRI Listed miticide, insecticide, and fungicide contain active ingredients from nature that are scientifically proven to kill powdery mildew, spider mites, russet mites, thrips, aphids, and other soft-bodied insects as well as their eggs on contact.
"We committed to launching a 3-in-1 product that makes no compromises," said Scott Allshouse, Grower's Ally CEO and president. "Crop Defender 3 is an exceptional product for controlling common cannabis pests. In independent lab testing, Crop Defender 3 was significantly better than competitors at controlling powdery mildew and eliminating mite populations after just one application."
The active ingredients in the highly effective FIFRA 25(b) formula are thyme oil, rosemary oil, clove oil, and peppermint oil. The foliar spray can be safely applied up until the day of harvest, leaving behind zero pollutants.
]]>VANCOUVER, BC, May 10, 2022 /CNW/ - PRESS RELEASE - Village Farms International, Inc. today announced its financial results for the first quarter ended March 31, 2022. All figures are in U.S. dollars unless otherwise indicated.
Management Commentary
"The first quarter of 2022 once again demonstrated the strength and earnings power of both our Canadian and U.S. Cannabis businesses," said Michael DeGiglio, Chief Executive Officer, Village Farms International. "In what is a typically soft season for retail sales in Canada, both Pure Sunfarms and Rose gained share in their respective focus markets, and delivered a 14th consecutive quarter of positive adjusted EBITDA for Canadian Cannabis. Pure Sunfarms' products continue to resonate with consumers, as our continued focus on quality, innovation and new product launches strengthen what has become one of the most respected and trusted brands in the Canadian market. In Quebec, we estimate that Rose is now a top three Licensed Producer by sales following strong market share gains since retail launch early last year. Rose is well positioned to continue this momentum throughout 2022, further benefitting from the many opportunities for collaboration with Pure Sunfarms. With our Canadian Cannabis business continuing to grow sales and market share domestically, we look forward to capitalizing on Pure Sunfarms' recent EU GMP certification to commence exportation to international markets.
"Our U.S. Cannabis segment delivered a solid performance, highlighted by a strong gross margin and positive adjusted EBITDA contribution. The integration of Balanced Health into the Village Farms family is progressing very well and confirms our belief in both the potential within the existing cannabinoid business and the significant near- and long-term opportunities in both the low-THC and high-THC product categories.
"As our Cannabis operations continued to deliver strong growth and profitability, Village Farms Fresh (Produce) faced one of the most difficult macro environments in its history. Strong revenue growth was more than offset by the inflationary impact of freight, labor, fertilizer, packaging and other cost increases. An industry-wide supply imbalance limited the producer's ability to pass along pricing to customers. We are evaluating new initiatives, including marketing partnerships to build more scale, spread costs and diversify product offerings. However, even in the currently negative EBITDA environment, we maintain the highest conviction that our U.S. cultivation footprint is a powerhouse opportunity for legal recreational cannabis when we can participate."
DeGiglio concluded, "Consumer takeaway trends during the first quarter further validated our brand and cultivation strategies. We expect continued momentum throughout 2022 and beyond as each of our cannabis businesses continues to launch innovative new products that address evolving consumer demand. We remain focused on seizing opportunities to continue to deliver top-tier profitability and market share in the high-growth global cannabis market."
The Humboldt County Civil Grand Jury has recommended tweaks to the California county’s cannabis permitting process.
The grand jury released a report May 8 that summarizes the county’s cannabis licensing process and issues seven recommendations for Humboldt County’s Public Works Department, Planning and Building Department and Board of Supervisors to change it, according to a Times-Standard report.
The report recommends that the Board of Supervisors approve funding for the Planning and Building Department to upgrade Accela, the county’s online permit submission system, to ensure that applicants can complete the application and pay the associated fees online, the Times-Standard reported.
The grand jury also recommended that “the Public Works Department determine the funding needed and submit a budget request to build out Accela modules for Planning and Building Department referrals for (1) encroachment permitting, (2) legal document review, (3) map review, (4) a drainage fee calculator, (5) encroachment violation and tracking, (6) reporting tools for each module and other modules determined to be necessary,” according to the news outlet.
LOS ANGELES, May 10, 2022 — PRESS RELEASE — Final Bell, a provider of end-to-end supply chain solutions for cannabis brands, and SHERBINSKIS, a California-based cannabis company, have partnered to bring SHERBINSKIS products to new geographies, beginning with Canada. The first highly anticipated product launch, Orange Sherbs Live Resin All-in-One Vape, quickly sold out upon release in Ontario.
Final Bell is responsible for the end-to-end manufacturing, compliance and go-to-market of SHERBINSKIS’ highly coveted cannabis products in the Canadian market. The brand’s legendary Gelato was deemed, “The World’s Most Sought-After Cannabis Strain” by streetwear and culture authority Highsnobiety.
“Final Bell’s industry expertise, multi-geographical end-to-end supply chain for hardware and packaging, and seed-to-sale compliance infrastructure will allow SHERBINSKIS to provide the same high-end customer experience in Canada that established their brand in California,” said Greg Boone, CEO of Final Bell Canada. “This partnership solidifies a long-standing relationship, born from a shared vision to provide a consistent, high-end cannabis brand experience that begins with incredible product.”
Credited with producing some of the most influential genetics in modern cannabis including Sunset Sherbert, Mochi, and Bacio Gelato, this partnership with Final Bell will expand the brand’s availability into new markets. This will mark the first time SHERBINSKIS products are available outside of California and Michigan, and its successful foray into Canada sets expectation of continued acceleration of sales.
“A key component to our continued success is ensuring we’re offering our discerning customers consistency and quality every time they interact with our brand,” said Mario Guzman, founder of SHERBINSKIS. “That obviously goes for our cannabis but also the hardware and packaging we put it in. Final Bell brings best-in-class industry know-how in extraction, manufacturing, logistics and scalability to help carry our vision forward to a much wider audience of cannabis connoisseurs.”
As support for cannabis legalization continues to rise internationally, government officials in Germany indicate they’re ready to take meaningful steps toward enacting reform.
Amidst the transition of the country’s governing coalition in late 2021, when Olaf Scholz, a member of the Social Democratic Party, took over as the chancellor of Germany, leaders from three top parties indicated they would introduce legislation to legalize adult-use cannabis following the power shift.
In addition to the Social Democrats, the Freedom Democrats and The Greens officially signed a three-party coalition deal in December.
RELATED: Germany’s New Coalition Supports Adult-Use Cannabis Legalization
While leaders from those political parties included full cannabis legalization on their agenda leading up to the coalition deal, they offered few details on what a new industry would look like in a country of roughly 83 million people—the largest in the European Union.
But those details will be brought to the forefront soon per top government officials, Forbes reported.
The Massachusetts Cannabis Control Commission (CCC) recently underwent a change in leadership, with former Chairman Steve Hoffman resigning and Deputy Treasurer Sarah Kim appointed as the interim chairwoman.
The CCC announced May 2 that Hoffman resigned April 25, roughly four months before his five-year inaugural term was set to expire, according to a WBUR report.
Hoffman, a retired business executive and former Bain and Company partner, was appointed as chairman in 2017 by Massachusetts Treasurer Deborah Goldberg, according to the news outlet. He had been the only original member left on the commission for nearly a year and a half.
“Chairman Hoffman’s contributions over the past four and a half years were integral to the growth and maturation of the commission and the legal cannabis industry in Massachusetts,” a CCC spokesperson told WBUR. “The agency thanks the chair for his commitment to ensuring a safe, effective and accessible marketplace in our state.”
Goldberg is responsible for appointing Hoffman’s successor, who must have corporate management, finance or securities experience, the news outlet reported.
Kansas’ cannabis laws will likely remain some of the strictest in the nation when the state’s Legislature adjourns later this month.
Despite multiple efforts to legalize medical cannabis this legislative session, including a House-passed bill that stalled in the Senate, and a Senate bill introduced by Republican Sen. Rob Olson in March, Kansas lawmakers appear unlikely to advance reform when they convene for one final day of work on May 23, NBC-affiliate KSNT reported.
Most recently, a group of House and Senate conference committee lawmakers met on April 27 to draft a new medical cannabis legalization proposal that both chambers could support. Olson chairs the six-member committee.
RELATED: Kansas Lawmakers Begin Final Medical Cannabis Negotiations
But the conference committee’s effort likely won’t progress further when lawmakers wrap up their legislative session May 23, Senate leadership spokesman Mike Pirner told Kansas Capitol Bureau on May 9.
“Given we plan to only be there one day, it’s unlikely that work could be completed on that item,” Pirner said.
WAKEFIELD, Mass., May 9, 2022 – PRESS RELEASE – Curaleaf Holdings Inc., a leading international provider of consumer products in cannabis, announced that Matt Darin will become Chief Executive Officer of Curaleaf, effective May 9, while outgoing CEO Joe Bayern will launch and run a new division of Curaleaf developing a new consumer packaged goods (CPG)-based business model. Darin will report to the board and will work closely with Bayern during the transition period through the second quarter.
The announcement was made in conjunction with the company’s quarterly earnings call, during which Curaleaf reported first quarter revenue with year-over-year revenue growth of 20% to $313 million, and year-over-year adjusted EBITDA growth of 16% to $73 million with operating cash flow of $57 million.
Executive Chairman Boris Jordan said, "When we named Matt president in January, it was a deliberate move to strengthen our leadership bench to support our growth strategy and build a succession plan for the future. The board and I are all incredibly grateful for Joe's accomplishments during his tenure as CEO. He brought us into a new way of working and thinking strategically as a CPG company. His experience as a brand builder and CPG leader will be instrumental for our new venture at a time when the opportunities in the marketplace are only just being realized. We'll be sharing more on the new division and its role in our strategy soon."
Jordan added, "Matt has been an essential leader in our day-to-day operations, commercialization strategy, and in streamlining our reporting structure and decision-making process. He's excelled in every role since joining Curaleaf, and I am highly confident in his vision and abilities to lead the company in its next phase of growth. This move positions us well on several fronts; we will benefit from Matt's proven track record of building winning teams and cannabis industry experience, and Joe Bayern's extensive experience driving CPG strategy to launch our new division. I have the utmost confidence that this change is the natural next step in Curaleaf's journey as the leading global cannabis company serving both the adult-use and health-and-wellness markets. In fact, we've never been more bullish about our future."
Darin brings dynamic leadership skills, an entrepreneurial mindset and experience as a first-class operator in the cannabis industry. As a founder of Grassroots, he was a first entrant in some of the top cannabis markets in the U.S., including Illinois and Pennsylvania. Since joining Curaleaf in July 2020, he led the Central region, the company's largest by footprint and revenue. In 2021 he added the Southeast region to his responsibilities, helping increase Curaleaf's market share by 55%.
Darin said, "I firmly believe we are building the best team in cannabis, and I'm energized and humbled to lead Curaleaf at this pivotal moment. We've built the foundation to continue to be the industry leader for the long term with a focus on operational excellence in every aspect of our business. We are leveraging the power of our 131 highly productive dispensaries and the accelerating distribution of our brands in 2,200 wholesale accounts throughout the U.S. I'm grateful to the board for their confidence in me as we move to the next phase of our journey."
In April, Master Equity Group filed a Chapter 11 bankruptcy petition in federal court in the Western District of Michigan. The company lists $176,255 in debts to a spectrum of vendors and service providers, including a local lawn care specialist and a plumbing business.
The company’s profits, however, are at least in part derived from the cannabis industry. With financial records now in the hands of a federal judge, this frames the case in an uncertain light.
Master Equity Group “operates as a holding and management company for several related-entity businesses operating in the cannabis industry,” according to the company’s legal records. And while the company itself is not a plant-touching operation, it does lease property to licensed cannabis businesses—like Cannamazoo, a dispensary located in Kalamazoo. The company also provides various accounting and payroll services to licensed cannabis businesses.
In other words, Master Equity Group receives revenue from the operation of licensed cannabis businesses operating in Michigan. Now, as CEO Adam Tucker and his attorneys petition the federal court for bankruptcy protection and the chance to reorganize the company, those cannabis-related provisions might prove problematic.
Precedent and federal law are important. There is, however, a degree of discretion in these cases. It’s not unheard of for a company in Master Equity Group’s shoes to be granted relief. Like so much else in the cannabis space, however, nothing is guaranteed.
The attorneys acknowledge as much, writing that the Office of the U.S. Trustee (which oversees federal bankruptcy cases) has historically dismissed these matters. But political tailwinds out of Washington, D.C., suggest change is in the air.
Georgia regulators took steps last week to expedite hearings on medical cannabis licensing protests after legislation to revive the state’s stalled medical cannabis program died at the end of this year’s legislative session.
The Georgia Access to Medical Cannabis Commission voted unanimously May 5 to turn over the responsibility for hearing the protests to the Office of State Administrative Hearings (OSAH), according to a Capitol Beat report.
Putting that task in the OSAH’s hands was a key provision in the legislation that the Georgia Legislature considered this year to address licensing snafus that have held up the launch of the state’s medical cannabis program.
Georgia’s registered patients have been able to legally possess cannabis oil containing a maximum of 5% THC since 2015, but they have no way to legally purchase the oil, which has yet to be produced and sold in the state.
RELATED: How Are Georgia’s Medical Marijuana Patients Supposed to Access Cannabis Oil?
Voters in Austin, Texas approved a measure May 7 that outlaws the enforcement of low-level cannabis possession crimes, as well as no-knock warrants, according to a local KVUE report.
The ballot initiative, put forth by Ground Game Texas, read:
“Shall an initiative ordinance be approved to (1) eliminate enforcement of low-level marijuana offenses and (2) ban the use of ‘no knock’ warrants by Austin police?”
The measure passed with 85% of the vote, KVUE reported.
RELATED: New Poll Reveals That 67% of Texans Support Adult-Use Cannabis Legalization
Nebraskans for Medical Marijuana collected the required number of valid signatures to get its medical cannabis legalization measure before voters in the 2020 election only to have the Nebraska Supreme Court rule that the ballot initiative violated the single-subject rule outlined in the state constitution.
Now, after filing two new medical cannabis initiatives with the Nebraska Secretary of State to get the issue before voters this November, the group has hit another snag—the loss of two of its biggest donors.
RELATED: Advocates Try Again to Place Medical Cannabis Legalization Measure on Nebraska’s Ballot
Nebraskans for Medical Marijuana had hoped to raise $1 million to fund its signature gathering efforts this year, but a major donor died in a plane crash and another was diagnosed with a terminal illness, leaving the initiative with roughly $30,000 in cash, according to a Lincoln Journal Star report.
The campaign has just two months left to collect roughly 87,000 signatures, and State Sen. Anna Wishart, who co-chairs Nebraskans for Medical Marijuana, told the news outlet that the campaign plans to press on as a grassroots effort.
Missourians in all likelihood will hold the key to adult-use cannabis legalization in the November 2022 election after activists submitted more than double the required signatures to the Secretary of State’s Office.
While Legal Missouri 2022, a registered political action committee (PAC), needs roughly 171,500 valid signatures in order to put its issue before state voters, the group submitted more than doubled that benchmark with the 385,000-plus signed petitions it turned in May 8.
The Missouri Secretary of State’s Office must validate roughly 45% of the submitted signatures—making sure signees wrote their information clearly, are registered to vote, etc.—for the group to receive final approval for the ballot.
“As we submit more than 385,000 petition signatures to the state today, the message from voters is clear: It’s past time to end the senseless and costly prohibition of marijuana,” John Payne, Legal Missouri 2022’s campaign manager, said in a public statement.
“This widespread and enthusiastic show of support from the people of Missouri exceeds our expectations,” he added, noting how the signature total slightly exceeded the amount collected during the 2018 campaign that led to voter approval of medical cannabis. “We look forward to the timely review and certification of our petition by the Secretary of State’s Office as we continue to educate and inform voters in the coming weeks and months.”
In 2018, Payne successfully led the A New Approach campaign to land the state’s medical cannabis initiative on the ballot. Officials from that effort submitted more than 370,000 signatures before getting the green light from the Secretary of State.
Legal Missouri’s 2022 measure would amend the Missouri Constitution to: legalize cannabis for those 21 and older; allow individuals convicted of nonviolent cannabis-related offenses to petition to be released from incarcerations and/or have their records automatically expunged; establish a lottery to award licenses, distributed equally to congressional districts; require a registration card for personal cultivation; and impose a 6% tax on cannabis sales, among other provisions.
The Delaware House voted May 5 to approve an adult-use cannabis legalization measure after shooting down a separate adult-use proposal earlier this year.
Rep. Ed Osienski’s House Bill 371 cleared the House in a 26-14 vote last week, according to a WDEL.com report.
The House defeated Osienski’s earlier adult-use cannabis legalization proposal, House Bill 305, in March.
That legislation aimed to legalize the possession of up to 1 ounce of cannabis for adults 21 and older, promote social equity and inclusion in the market, and reinvest a portion of tax revenue into communities disproportionately impacted by prohibition through a Justice Reinvestment Fund.
After H.B. 305 ultimately failed, Osienski split the legislation in half; H.B. 371 would legalize the possession of an ounce or less of cannabis, while separate legislation, House Bill 372, would allow cannabis to be grown and sold in the state for adult use.
Kentucky Gov. Andy Beshear currently has the highest approval rating of all U.S. Democratic governors. That is no small feat, given his mostly Republican-leaning constituency.
And that makes the latest Kentucky cannabis headline all the more notable: “Kentucky Governor Indicates Executive Cannabis Order Coming.” Read Associate Editor Tony Lange on the news out of Beshear’s state, where the legalization of medical cannabis may be forced into being by a leader frustrated with statehouse inaction.
The question: Will Beshear follow through on this gesture toward executive order?
“The legal analysis is not yet finalized, but I do think that there is going to be room for at least some executive action,” Beshear said during a news conference. “Our challenge on putting together the task force is a positive one: It’s that there is so much interest. It is time for, call it, medical cannabis or medical marijuana in Kentucky. It is the will of the people. And there are folks out there suffering.”
An executive order like that would be a first, among U.S. states, and a great leap forward for a state that didn’t crack CBT’s list of most likely candidates for legalization this year.
However this shakes out, the political news of the day in Kentucky will be well worth watching in the coming weeks.
Cannabis consumption lounges in Nevada could be opening as early as this fall, and officials have drafted regulations to address public safety concerns.
The proposed regulations, set to be approved in June, work to solidify anti-DUI policies and focus heavily on employee training.
As part of those proposals, alcohol would not be allowed at the consumptions lounges, Cannabis Compliance Board (CCB) Executive Director Tyler Klimas told Fox 5 Vegas. The policy recommendation comes after CCB officials learned in working with law enforcement that polysubstance use is an ongoing issue in Nevada, Klimas said.
RELATED: So Close, Yet So Far: Nevada Cannabis Consumption Lounges
In other efforts to curb DUI risks, businesses should have signage throughout the facility that contains messages like, “It is against the law to drive while impaired by cannabis.” Companies are also encouraged to implement additional policies to prevent impaired driving, such as having a no-tow policy so consumers can leave their cars at the lounge overnight, or partnering with local rideshare services, Klimas told the news outlet.
Klimas added that many consumer protections would also come from employee training.
The legal details are not fully ironed out, but Kentucky Gov. Andy Beshear indicated May 5 that his administration forecasts an opening for an executive order on medical cannabis.
The Democratic governor didn’t reveal what specific actions might be on the table, but he did signal leeway for his office to act in some capacity during his weekly news conference Thursday.
“The legal analysis is not yet finalized, but I do think that there is going to be room for at least some executive action,” Beshear said when asked for an update. “Our challenge on putting together the task force is a positive one: It’s that there is so much interest. It is time for, call it, medical cannabis or medical marijuana in Kentucky. It is the will of the people. And there are folks out there suffering.”
Beshear asked his general counsel to begin analyzing options under the law for the governor to consider regarding executive action on medical cannabis, which he announced under a four-step plan to effectuate change on the state’s medical cannabis policy during his April 21 news conference.
RELATED: Kentucky Governor Takes Issue With Senate Inaction on Medical Cannabis
The governor’s plan comes on the heels of Kentucky’s Senate stalling on medical cannabis legalization for the past three years. Most recently, the upper chamber killed legislation that cruised to House passage by way of a 59-34 vote in March.
The U.S. Food and Drug Administration (FDA) has issued dozens of warning letters over the past several years to CBD companies, most recently calling out a group of businesses for claiming that their products can cure, treat or prevent COVID-19.
Now, the federal agency is setting its sights on the delta-8 THC space.
The FDA issued warning letters to five companies May 4 “for selling products labeled as containing delta-8 tetrahydrocannabinol (delta-8 THC) in ways that violate the Federal Food, Drug, and Cosmetic Act (FD&C Act),” according to a press release.
The warning letters, issued to ATLRx Inc., BioMD Plus LLC, Delta 8 Hemp, Kingdom Harvest LLC and M Six Labs Inc., also cite CBD-related violations of the FD&C Act, including marketing CBD products claiming to treat medical conditions in humans and animals, promoting them as dietary supplements, and adding CBD to human and animal foods.
“FDA’s announcement … that it had issued warning letters to five marketers of delta-8 THC is significant, although not all that unexpected,” Jonathan Havens, co-chair of the Cannabis Law Practice and the Food and Beverage Practice at Saul Ewing Arnstein & Lehr, told Cannabis Business Times. “However, the five warning letters represent the first enforcement actions taken by FDA against delta-8 marketers.”
BILLERICA, Massachusetts, May 6, 2022 - PRESS RELEASE - Agrify Corporation, a innovative provider of advanced cultivation and extraction solutions for the cannabis industry, announced its extraction division has expanded its portfolio of industry-leading processing solutions with its latest, most advanced and scalable passive hydrocarbon extractor: the PX5.
The PX5's unique passive recovery design offers immediate economic benefits to cannabis operators of any size. The optimized extraction path reduces batch times, driving increased daily production up to 33%. By eliminating the need for a dedicated pump, the PX5 saves up to 40% annually in energy costs over comparable traditional systems while simultaneously eliminating the maintenance and replacement expense normally associated with system pumps. Designed for rapid material changeover, the PX5 enables operators to increase hourly extract production by 200%, and with specialized training available from Agrify Extraction, operators can realize up to a 300% increase.
"The PX5 represents more than a decade of collective experience, research and development in hydrocarbon extraction," said Chris Benyo, senior vice president & general manager of Agrify's Extraction Division. "This versatile machine is the ultimate streamlined and scalable cannabis extraction technology, which has been designed with the creation of high-value end products in mind. With a large number of facility build-outs and expansions currently happening in this industry and the demand for high-quality cannabis products surging, the PX5—which is the first in a series of hydrocarbon extractor launches that we plan to roll out this year—is perfect for customers looking to build faster, grow their business, gain a competitive edge and make groundbreaking products."
Catering to the contemporary needs of cannabis operators, the PX5 offers passive recovery with fast recovery times. With a linear design and convenient ergonomic controls, the PX5's functions are easily accessible, The system offers integrated CRC refinement, which is highly conducive to extracting high-terpene, full-spectrum live resin, by further refining low-quality biomass into a valuable end product.
The PX5's features, specifications and benefits include:
The PX5 is now available as part of a customizable primary extraction package, including indoor and outdoor temperature control options. Contact the extraction experts at Agrify's Extraction Division for pricing and availability.
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