MjLink Cannabis Business News and Press

One of the largest cannabis companies in the world is appealing a nearly half-million-dollar fine stemming from a 2019 outdoor cultivation operation that allegedly preceded the proper licensure in Canada’s largest market.

Ontario-based Canopy Growth Corp. was fined CA$434,611 in 2020 by the Canada Revenue Agency (CRA), a penalty that the company is now appealing in Federal Court, the National Post reported.

After Canada legalized adult-use cannabis in late 2018, Canopy Growth set up a corporate subsidiary in early 2019 that applied for a cultivation license from Health Canada for an outdoor farm. The company is now arguing that it complied with federal regulations, according to court documents obtained by the daily newspaper.

Canopy Growth received a license from Health Canada in June 2019, and then additional licensure allegedly needed to begin cultivation came from CRA roughly a month later. About a year after that, CRA officials sent the company notice of the fine for allegedly beginning cultivation too early (between the two forms of licensure), implying that it violated Canada’s Excise Act.

“The receipt and cultivation of vegetative cannabis plants prior to obtaining a cannabis licence under the [Excise Act] is a contravention of the [Excise Act],” reads a CRA letter to Canopy Growth, as quoted in the obtained court document.

In its appeal, Canopy Growth’s defense argues it fully complied with the law because it believes nothing in the Excise Act prevents it from beginning cultivation while waiting for the follow-up licensure from CRA, the National Post reported.

New York has launched a web-based portal that will allow hemp farmers to apply for licenses to grow adult-use cannabis during the 2022 growing season, according to an announcement from Gov. Kathy Hochul’s office.

“New York is moving full speed ahead to create the most inclusive adult-use cannabis industry in the nation through our Seeding Opportunity Initiative," Hochul said in a public statement. "This initiative will create meaningful opportunities for economic empowerment for New York farmers and impacted communities. Now that our application portal is open, I encourage every eligible New York farmer to participate in the farm-to-sale pipeline that will create jobs and opportunity throughout the Empire State."

The portal, which went live March 15, allows eligible hemp farmers to apply for Conditional Adult-Use Cannabis Cultivator licenses, which were created through legislation that Hochul signed into law last month.

RELATED: Inside New York’s Legislation to Allow Hemp Farmers to Grow Cannabis for the State’s Adult-Use Market

To qualify for a license, an applicant must have been an authorized industrial hemp research partner for the New York Department of Agriculture and Markets, growing hemp for at least two of the last four years and in good standing as of Dec. 31, 2021, when the research program ended.

Oklahoma lawmakers advanced a bill that aims to create a payment tracking ecosystem, and they intend to test it out on their state’s medical cannabis industry.

House Bill 3279, the Oklahoma Distributed Ledger Technology Assets Offering Act, aims to authorize the state to develop and use “hack-resistant” technologies to open the door for convertible virtual currency transactions.  

The legislation, sponsored by Rep. Justin Humphrey, a Republican who chairs the Criminal Justice and Corrections Committee, drew bipartisan support with House members voting, 75-11, to pass it on March. 15.

The bill states, “This act shall first be implemented for the lawful regulation of the medical marijuana industry so long as the commodity is lawfully permitted for use in the state of Oklahoma.”

One of several anticipated benefits of a newly established payment tracking ecosystem listed in the bill includes “enhancing the stability” of any legal market by using a cashless, electronic fund transfer of digital assets for transactions to maximize “micropayment capabilities” for the business community.

Humphrey told CBS-affiliate News 9 that his bill would bring medical cannabis banking into the 21st century for legal Oklahoma operators.

Georgia lawmakers have been busy working on proposals to jumpstart the production and sale of low-THC cannabis oil in the state after licensing disputes delayed the rollout of the program.

Two different bills to revive the state’s medical cannabis program passed the House and Senate March 15, the Crossover Day deadline for legislation to pass at least one chamber of the Georgia Legislature to stay alive this year, The Atlanta Journal-Constitution reported.

RELATED: Georgia Lawmakers Consider Legislation to Redo Medical Cannabis Licensing Process

The state’s roughly 20,000 registered patients have suffered years of regulatory limbo that allowed them to possess—but not legally purchase—the medical cannabis oil, which can contain no more than 5% THC under state law.

Gov. Brian Kemp signed legislation in 2019 to legalize the production and sale of the oil, and a new regulatory body, the Georgia Access to Medical Cannabis Commission, licensed six companies last year to do the job.

Medical cannabis tax money that’s supposed to help support New Yorkers in need of addiction and criminal justice services has done nothing but gather dust since 2014.

New York’s Office of Addiction Services and Supports has accumulated roughly $1.6 million, while the state’s Division of Criminal Justice Services has accrued roughly $1.4 million in medical cannabis tax funds, as of Feb. 28, according to New York Cannabis Insider.

While the state mandated a portion of medical cannabis revenue be allocated to those two agencies eight years ago, neither has touched the funds since, NYCI reported.

“Why aren’t they drawing down this money, and why is it sitting there?” state Sen. Diane Savino questioned when contacted by the news outlet.

Savino, who announced last month she intend to retired after 18 years as a state senator, tackled legalization as the lead sponsor for New York’s medical cannabis legislation in 2014.

“It’s not like there isn’t a need [for the funds],” she said. “Just spend it—allocate it and send it out the door.” 

Editor's Note: David Holmes, CEO and founder of Clade9, is featured on the cover of the March 2022 issue of Cannabis Business Times. Read more about how he started his journey in the cannabis industry here. Details about his cultivation vision, priorities and post-harvest processes are below. 

Over the years, David Holmes, CEO and co-founder of Los Angeles-based Clade9, has grown plants in everything from deep water culture to rock wool.

Holmes was growing in deep water culture when he first met famed photographer and cannabis author Mel Frank, whose books Holmes had read when he was first learning to grow two decades ago. Frank had been looking for a grower with a precise setup to help one of his colleagues conduct an “experiment … on the effect of UVB ultraviolet on THC production, whether it enhanced it or did anything,” Frank recalls.

“Deep water is pretty sensitive,” Frank says. “A lot of things that can go wrong with it. Equipment failures, microbial problems, stuff like that, because basically you're just growing a plant in pure water. It needs oxygen being bubbled in. Temperature has to be monitored very closely.”

Frank recalls thinking immediately, “Well, this guy's got this together. If he's able to operate this and bring a crop through this, he knows what he is doing.”

Today Holmes grows in rockwool at Virtue's Las Vegas facility and at his L.A. operation.

The 2022 “Best Cannabis Companies to Work For - Dispensary” employee survey included questions about key areas related to employee satisfaction, including leadership and planning, corporate culture and communication, role satisfaction, relationships with supervisors, training and development, pay and benefits, and overall engagement. On average, the ranking “Best Cannabis Companies” posted an employee engagement rate (which measures job satisfaction and pride in working for the company) of 90% compared with 77% for employers that did not make the list.

Here is a closer look at how the employees of “Best Cannabis Companies” rate their employers in those key areas compared to the rest of the non-ranking participants. Employee feedback comprises 75% of each company’s total score.

The 2022 “Best Cannabis Companies to Work For – Dispensary” survey also asked employers about the benefits their companies offer, including health insurance, paid time off, retirement plans, profit sharing, tuition reimbursement, and efforts to create and foster a culture of diversity, among others.

Here is a deeper dive into various benefits ranking companies offer compared to non-ranking participants. It’s important to note that while many non-ranking companies offer more benefits in certain areas, employer-provided information comprises just 25% of each company’s score for this feature. Therefore, employees’ job happiness, satisfaction, and sense of pride in working for the company were bigger factors in making an organization a Best Cannabis Company to Work For.

Check out the 2022 Best Cannabis Companies To Work For – Dispensary

LASVEGAS, March 15, 2022 – PRESS RELEASE – GreenBrozInc., known as an industry-disruptive innovator of post-harvest processingtechnology for the cannabis industry, officially announced the release of its Model G Precision Grinder + Destemmer. Featuring afirst-of-its-kind continuous throughput system, the Model G is the firstcombination destemmer and grinder on the market.

Removingstems from milled flower efficiently while maintaining product quality andcontrolling particle size have been substantial obstacles for operators toovercome.

"Itis a significant milestone for us to be able to deliver this technology thatsolves the long-standing problem of creating uniform particulates for thepre-roll, concentrates and edibles segments while maintaining a high degree ofquality, efficiency and throughput," said Cullen Raichart, founder and CEOof GreenBroz. "Five years of concentrated work by our engineering team andcountless hours of testing has produced what we are confident is an enduringsolution."

TheR&D team's key innovation is the Model G's patent-pending triangular bladeassembly. When combined with the low torque, low-RPM motor it allows for a highdegree of control over particle size while its gentle actuation generates lessheat, maintaining the integrity of high-value terpenes and trichomes,maximizing THC content per pound.

"Unlikeother machines on the market today that pulverize buds, the Model G wasdesigned to gently deconstruct the bud to yield the uniform grind size of yourchoice," said GreenBroz engineer Dylan Cruz.

The ModelG comes with 1/8-inch, 5/32-inch or 3/16-inch mill size interchangeablescreens, giving customers control and flexibility. The unit can be completelycustomized by adding a stainless steel perforated metal sheet of any size.

DENVER,March 16, 2022 – PRESS RELEASE – Schwazze announced that it hassigned definitive documents to acquire all the assets of Urban Health &Wellness Inc. The proposed transaction includes the adult-use Urban Dispensary,located at West 38th Avenue and Clay Street in Denver's vibrant Highlandsneighborhood, as well as a 7,200-square-foot indoor cultivation facility (2,700square feet of canopy) located in Denver. This purchase continues Schwazze'saggressive expansion in Colorado and upon close will bring the company's totalnumber of Colorado dispensaries to 23 and grow facilities to four.

Theconsideration for the proposed acquisition is $3.2 million and will be paid as$1.3 million cash and $1.9 million stock at closing. The acquisition isexpected to close in the second quarter of 2022 after the Colorado MarijuanaEnforcement Division and local licensing approval.

“We lookforward to the addition of the Urban group, including the strategically locatedUrban Dispensary and its Denver grow facility to our expanding pipeline ofassets in Colorado. Delivering our brands and our excellent customer serviceinto new neighborhoods is a Schwazze hallmark as we continue to go deep in thestate. We also look forward to welcoming the Urban team to our growing Schwazzefamily," said Nirup Krishnamurthy, Schwazze's chief operatingofficer.    

SinceApril 2020, Schwazze has acquired or announced the planned acquisition of 33cannabis dispensaries as well as seven cultivation facilities and twomanufacturing assets in Colorado and New Mexico. In May 2021, Schwazzeannounced its BioSciences division, and in August 2021 it commenced homedelivery services in Colorado.

Name: Derek Rayhorn

Larger cannabis companies possess the resources but often lack the local-level trust and connections needed to cultivate a culturally inclusive industry.

Minorities for Medical Marijuana (M4MM) works to create that bridge, founder and CEO Roz McCarthy says. 

Through nine national programs, such as Cannabis Business Licensing Bootcamp, which offers education for minority, women, veteran and small business owners, M4MM equips its clients with information, referrals, mentors and other resources needed to navigate the cannabis industry. 

M4MM, a nonprofit organization that launched in 2016 in Orlando, Fla., has 27 state chapters throughout the U.S.; international chapters in Toronto, the U.K. and Jamaica; and two chapters at historically Black colleges and universities. 

While M4MM has fostered trust in Black, Hispanic, veteran and other communities through state-level volunteers, the organization’s next focus is to help build relationships, uniting its clients with cannabis organizations, businesses and entrepreneurs, McCarthy tells Cannabis Business Times. 

Tony Lange: What is M4MM most proud of accomplishing as an organization in 2021? 

New Jersey residents are ready for adult-use cannabis, but the state’s Cannabis Regulatory Commission (CRC) is not.

The commission missed another self-imposed deadline March 15, the 90-day target date to finish reviewing applications for potential adult-use cannabis cultivators.

During the commission’s last regular meeting, executive director Jeff Brown asked for patience in the review process, which has become more time consuming than expected because of a decision to allow applicants to amend their submissions if found to be flawed, The Press of Atlantic City reported.

“Here we are, moving through hundreds of applications, ready to kick off this legalized market under an entirely new framework,” Brown said. “We are making tremendous progress.”

The cultivation application deadline isn’t the first target CRC officials have missed. The Garden State also missed a Sept. 18 deadline to begin accepting and processing business license applications from potential cultivators, manufacturers and retailers, as well as a Feb. 22 deadline to allow operational medical dispensaries to begin serving adult-use shoppers.

Brown said last month that one of the factors holding up the retail launch includes a lack of confirmation from local municipalities, where officials must provide in writing that they support the medical cannabis cultivators and dispensaries in their communities transitioning to the adult-use market, NJ.com reported.

Cannabis sales in California are on the rise, but the state’s regulated industry continues to struggle.

But if it’s not sales numbers holding back licensed operators from thriving, then what is?

According to Jocelyn Sheltraw, Director of Industry Relations for Headset, a provider of cannabis data and marketing solutions, the biggest hurdles for California’s licensed cannabis businesses are:

“It’s just a recipe for disaster,” Sheltraw tells Cannabis Business Times. “It’s just created turmoil on the cultivation side.”

RELATED: ‘Surviving is Thriving’ in California’s Cannabis Market

Pennsylvania lawmakers attempting to exercise due diligence on crafting adult-use cannabis legislation have taken a one-sided approach, according to one legislator.

The state’s Senate Law & Justice Committee held a series of three hearings, each extending beyond two hours, when body members heard from a mixture of testifiers, including law enforcement officials during a Feb. 7 hearing; and individuals who played active roles in legalization efforts in other states during a Feb. 28 hearing.

In their concluding hearing held March 14, committee members heard from industry professionals and patient advocates with connections to Pennsylvania’s existing medical cannabis program.

Sen. Mike Regan, the committee’s chair and a former law enforcement officer who plans to introduce an adult-use bill in the General Assembly, said during the final session that it was important to hear from the medical cannabis regulatory oversight personnel in the state Department of Health.

“We’re fortunate to already have an established medical marijuana program in Pennsylvania, which has laid the basic groundwork for licensing, growing, manufacturing and selling cannabis through a state regulated system,” he said. “As we will hear today, our medical program is not without its faults. I look forward to learning about this so that we can help Pennsylvania’s 600,000 patients and caregivers while also formulating an oversight structure for adult-use marijuana that will be regarded for its desire and ability to work with the industry and advocate for its success.”

But at the conclusion of Monday’s hearing, Sen. Judy Ward called the hearings one-sided.

Georgia lawmakers who have been searching for a way to jumpstart the state’s stalled medical cannabis program made progress March 14 when a House committee approved legislation that would allow regulators to redo the licensing process, according to Capitol Beat.

House Bill 1425, sponsored by Rep. Bill Werkhiser (R-Glennville), would scrap the current program, as well as the licenses that the state tentatively issued last year, and authorize a new request for proposals (RFP) from companies looking to produce and sell low-THC oil to Georgia’s registered patient base.

After years of regulatory limbo that allowed registered patients to legally possess—but not purchase—the oil, which can contain no more than 5% THC under state law, lawmakers approved legislation in 2019 to legalize the production and sale of the oil in the state.

RELATED: How Are Georgia’s Medical Marijuana Patients Supposed to Access Cannabis Oil?

A new regulatory body, the Georgia Access to Medical Cannabis Commission, then licensed six companies in July 2021 to produce and sell the oil to the state’s patients, but 16 unsuccessful applicants challenged the licensing process, which has delayed the rollout of the program.

Texas Democrat Beto O’Rourke may be trailing two-term incumbent Gov. Greg Abbott by seven points in a recent poll, but the challenger has continued to push a pro-cannabis stance as one means to gain ground.

O’Rourke, who served as a U.S. representative for Texas from 2013 to 2019, and was a candidate for the Democratic presidential nomination in 2020, has said that if he’s elected the governor of Texas in the November 2022 election, he’ll work to legalize cannabis in the state.

He reaffirmed that position March 12 during the South by Southwest (SXSW) Conference in Austin, suggesting that the state’s Republican-controlled Legislature would back him on the issue, the Austin American-Statesman reported.

“I’ll let you in on a secret: Republicans like to get high just as much as Democrats,” O’Rourke said, speaking during a SXSW panel.

Cannabis legalization has become a popular political platform in recent years amidst growing public support, and Texas is no exception. According to a November 2021 survey from the University of Houston and Texas Southern University, 67% of Texans support legalizing adult-use cannabis.

But O’Rourke began backing and advocating for reform before it was popular.

After closing its $545-million acquisition of Gage Growth Corp. this week, TerrAscend is keeping its collective eye on the horizon. Executive chairman Jason Wild told Marketwatch that his company is planning to be on the ground in more states, likely along the East Coast and Mid-Atlantic by year’s end.

Right now, with the Michigan-based Gage assets in its portfolio, TerrAscend boasts 25 dispensaries in five states (California, Michigan, Maryland, New Jersey and Pennsylvania).

“From a merger and acquisition perspective, we’re looking to go deeper into states where we are, and we want to add one to two additional states over the next six to 12 months,” Wild told the news outlet. “We’re looking at Michigan east toward the East Coast, and up and down the East Coast from Massachusetts to Georgia.”

The notable headline only solidifies TerrAscend’s intentional growth strategy after the Gage closing. That transaction saw two large vertically integrated businesses coming together, each bringing a focus on brand-building and retail to the table.

RELATED: Beyond the Show: Fabian Monaco 

"This is a defining moment for TerrAscend as we combine two leading vertically integrated operators with proven cultivation and manufacturing expertise, deep portfolios of proprietary flower strains, and top-selling brands across our core markets," Wild said upon the Gage deal’s closing.

A seamless customer experience is important to Fire & Flower, a Canadian adult-use cannabis retailer with more than 100 corporate-owned stores in its network.

This mindset inspired the company to launch a next-day cannabis delivery service to customers in the Metro Vancouver, British Columbia, area last month, powered by Pineapple Express Delivery Inc., a subsidiary of Fire & Flower.

As of Feb. 28, Pineapple Express offers next business day delivery through BC Cannabis Stores’ e-commerce website.

Fire & Flower announced its acquisition of Pineapple Express in December 2021, with the transaction closing in January. Pineapple Express has since become a key part of Fire & Flower’s Hifyre cannabis consumer technology platform.

The Hifyre Digital Retail and Analytics Platform has become one of Canada’s leading cannabis data platforms, Fire & Flower CEO Trevor Fencott told Cannabis Business Times.

California Sen. Scott Wiener (D-San Francisco) is looking to restore voter-approved access to medical cannabis with new legislation, according to the Los Angeles Blade.

Senate Bill 1186 would require all cities and counties to allow licensed medical cannabis dispensaries, licensed medical cannabis deliveries, or both, the news outlet reported. The legislation allows cities to choose which form of medical cannabis businesses they allow, but they must allow at least one type.

S.B. 1186 aims to prevent Proposition 215, California’s Compassionate Use Act that voters approved in 1996 to legalize medical cannabis, from being undermined by local jurisdictions that have blocked access to medical cannabis by banning both dispensaries and delivery services.

Proposition 64, which voters passed in 2016 to legalize adult-use cannabis, granted California’s municipalities the authority to ban adult-use businesses within their jurisdictions, but did not give cities and counties local control over medical cannabis businesses.

The California Legislature, however, later gave municipalities the ability to prohibit medical cannabis operations through the Medicinal and Adult-Use Cannabis Regulation and Safety Act (MAUCRSA). Since then, nearly two-thirds of the state’s cities have banned both medical and adult-use businesses, the Los Angeles Blade reported.

TALLAHASSEE, Fla., March 14, 2022 – PRESS RELEASE – Trulieve Cannabis Corp., a top-performing cannabis company in the United States, announced an exclusive partnership with Survivor: Africa winner and cancer survivor Ethan Zohn. Through the partnership, Zohn will be the official ambassador of Momenta, Trulieve's in-house everyday wellness and overall well-being brand.

"I'm proud to partner with Trulieve and Momenta to enhance cannabis advocacy, awareness and education throughout the country," Zohn said. "As a two-time cancer survivor and stem cell transplant recipient, cannabis, CBD and plant-based wellness have played a critical role in my physical and mental recovery. It's awesome to represent Trulieve, a brand that prioritizes research, patient education and product quality."

Zohn will be documenting and sharing his holistic cannabis wellness journey and how he incorporates cannabis into his daily routine. The partnership includes local and national educational outreach, keynote speaking, philanthropic opportunities and social media collaborations. The former professional soccer player will also wear Momenta apparel during his future athletic endeavors. Zohn's first function serving as the brand ambassador will occur at the grand opening of Trulieve's Framingham, Mass., dispensary coming soon.

"Trulieve is excited to partner with Ethan as we expand our brand presence and identify partnerships aligned with the values of our patients and the communities we serve," said Valda Coryat, chief marketing officer of Trulieve. "Ethan's personal wellness journey will inspire and educate patients around the country, and we are pleased to work with him to initiate engaging conversations around cannabis' holistic benefits."

Momenta, currently available in Florida, Massachusetts and West Virginia, empowers patients to enhance their everyday wellness routines through cannabis. Momenta's premium easy-to-dose products, spanning capsules, tinctures and topicals, are precisely formulated to strengthen the connection among mind, body and spirit. Momenta's national partnership with Zohn aims to promote medical cannabis awareness while embracing the natural powers of the plant.

For more information about Momenta, please visit on Facebook @MomentaByYou, Instagram @mymomenta_ or via the web at www.Trulieve.com.