MjLink Cannabis Business News and Press

The Holy Land is on the brink of decriminalizing adult-use cannabis before the U.S., its Western ally that also happens to be the largest cannabis hub in the world through a patchwork of state legalization.  

While U.S. President Joe Biden has been busy putting policies in place to deny government security clearance to those who have invested in cannabis companies, the Israeli government is moving to approve regulations that would decriminalize adult-use cannabis and expunge criminal records for those with cannabis-related convictions.

Israel President Isaac Herzog and Justice Minister Gideon Sa’ar announced March 6 that those with cannabis convictions would be able to submit a request to have their records erased. In addition, individuals with pending criminal proceedings related to cannabis use or possession would be able to have their charges dropped.

The joint statement from Herzog and Sa’ar, who also serves as deputy prime minister, referred to an April 2019 temporary order: The Dangerous Drugs Law stipulates that possessing or using cannabis, when committed for the first or second time (within five years), would be considered liable for a fine. That order is set to expire at the end of this month.

Their special call this week comes after a Feb. 9, 2022, proposal to amend the Administrative Rules and Order law to establish possessing and using cannabis as an administrative offense that would not warrant opening a criminal record, according to the statement.

The statement also said that Herzog and Sa’ar’s call comes out of a desire to erase the label of criminality and the “associated stain” from anyone with prior cannabis-related convictions.

One of the most read CBT stories this week was actually an interview published earlier in February: a conversation between Senior Editor Zach Mentz and Aster Farms CEO Julia Jacobson. The main takeaway? California growers are facing a “market overcorrection” right now, where outdoor wholesale prices, especially, are crashing.

Long story short: Economic pressures that have plagued California’s cannabis market for years are getting noticeably worse for growers who are eking out an existence in the licensed landscape. https://www.cannabisbusinesstimes.com/article/julia-jacobson-aster-farms-q-and-a/

Check out the full interview for some more context on this issue.

But we’re curious for more perspectives from California, too—or even from those stakeholders in other U.S. states who might have helpful insights on how California is influencing the broader cannabis marketplace.

Got a tip? A particularly urgent thought? An example of that demonstrates how businesses might navigate these choppy waters in California?

Shoot me an email, and let’s talk. We’re here to serve you.

Montana’s adult-use cannabis sales increased in February compared to sales in January, when adult-use sales launched.

The state’s adult-use dispensaries sold roughly $13 million in product from Jan. 31 through Feb. 27, according to an AP News report.

California cannabis regulators announced several proposed rule changes March 4 that will affect a broad range of industry stakeholders operating in the state-legal market.

Department of Cannabis Control (DCC) officials sent a notice to the public regarding the rulemaking process, which they anticipate could carry into the autumn months.

As part of that process, DCC officials have opened a 45-day public comment period that runs through April 19, said Angela Hill, DCC deputy director of governmental affairs.

“We will revise the regulations potentially through all those comments and feedback, and, depending on how big those changes are that we make, it will result in either another 45-day public comment period, or a 15-day [period] if those are minor changes that we incorporate,” she said during a March 3 webinar that previewed some of the proposed high-level changes, what to expect and ways for industry stakeholders to participate in the process.

Once the process is complete, DCC officials will send the proposals to the state’s Office of Administrative Law, where officials there will take at least 30 days for a review process, before approving and filing the regulations with the California Secretary of State, Hill said.

The proposed changes would directly impact industry operators connected to cultivation, distribution, manufacturing, retail, events, testing laboratories, license applications, cannabis product ingredients, and labeling, marketing and advertising.

Washington, D.C. – March 4, 2022 – PRESS RELEASE – Today, the Drug Policy Alliance led a group of over 50 criminal justice reform, liberty, business, labor, and drug policy organizations in sending a letter to key House and Senate appropriators, along with Majority Leader Schumer and Speaker Pelosi, urging them to maintain the removal of the appropriations rider that has prevented D.C. from establishing a regulatory framework for marijuana, despite it being legalized by D.C. voters in 2014. 

“In one hand, Congress continues to make strides in advancing federal marijuana reform grounded in racial justice, while simultaneously being responsible for prohibiting the very jurisdiction that led the country in legalizing marijuana through this lens from being able to regulate it. This conflict and contradiction must end now," said Queen Adesuyi, Senior National Policy Manager for the Drug Policy Alliance.

“Majority Leader Schumer, Speaker Pelosi, and the four lead appropriators have a momentous opportunity to untie the hands of local D.C. policymakers, and allow for the District to fruitfully tap into the serious economic, public health, and public safety benefits of legalization like every other state that has reformed its marijuana laws. Leadership passing on this historic chance to be on the right side of history—in standing for both marijuana reform and democracy—would be demoralizing, and a clear sign that there is a stronger commitment to use D.C. as a bargaining chip than on the values of marijuana justice and home rule. We look forward to working with them to finally bring this injustice to a close and ensure D.C. residents’ voice and vote are respected.”

Background

For the first time since this rider was implemented following the successful passage of Initiative 71, appropriators in the Financial Services and General Government (FSGG) Subcommittee across the House and the Senate successfully removed the rider earlier this Congress. As Congress works to finalize funding levels and bill language in the FY22 Appropriations bill, groups are demanding that the rider’s removal is maintained, and that the District of Columbia’s right to regulate marijuana is not used as a bargaining chip. Under the conditions caused by the rider—where marijuana is essentially decriminalized, but there is no legal access for adult use—D.C. has been left with a complicated grey market that is both unsafe and a far cry from the racial and economic justice promises of the Initiative 71 campaign.

Weeks of pushback from industry stakeholders have given the Maine Office of Marijuana Policy (OMP) pause in formally issuing a new set of medical cannabis regulations.

Regulators have scrapped their most recent set of proposed rule changes and will now work with industry stakeholders to draft a revised set of rules, according to the Portland Press Herald.

The OMP originally released proposed regulations in preliminary draft form in January 2021 in an attempt to better align Maine’s medical cannabis program with state law, the news outlet reported. The draft rules included a track-and-trace requirement and additional security measures that some industry stakeholders viewed as labor-intensive and cost-prohibitive, according to the Portland Press Herald.

Following the industry backlash, the Maine Legislature passed a law last year to overhaul the state’s medical cannabis rulemaking process and block the implementation of the proposed regulations, the news outlet reported.

The law called for the OMP to establish a 17-member working group and to seek input from medical cannabis businesses, patients and physicians before issuing rule changes, which would then be required to go before the Legislature, according to the Portland Press Herald.

The rollercoaster ride to adult-use cannabis legalization in South Dakota came to a screeching halt March 3, when House members voted to put it to rest for the remainder for this session.

The legislation, Senate Bill 3, aimed to legalize up to 1 ounce of cannabis for possession and use by adults 21 and older. The South Dakota Senate voted 18-17 to pass the measure Feb. 23, but it arrived in a less receptive House earlier this week.

South Dakota House State Affairs Committee members voted 8-3 on Feb. 28 to delay consideration of S.B. 3 to March 29—one day after the state Legislature’s 2022 session ends—essentially killing the adult-use legalization effort for all intended purposes.

But the ride continued with a “smoke out” vote March 1, when Rep. Greg Jamison, a Sioux Falls Republican, gathered 25 colleagues in the 70-member chamber for the political maneuver that revived the bill. Under the smoke-out rule, 24 members needed to be onboard with bringing the bill back to life.

House Speaker Spencer Gosch told the chamber that day, “Just for the record, we’re smoking out a weed bill.”

But even after the political maneuver extended the life of the bill, House members voted 40-28 on March 3 to not formally calendar it, essentially defeating the bill, again, for this legislative session.

Despite the delayed launch of New Jersey’s much-anticipated adult-use cannabis market, the state’s Cannabis Regulatory Commission (CRC) held a public hearing this week to get input on the best way to spend the tax revenue generated from adult-use sales.

Fifteen people attended the March 2 virtual hearing and floated all kinds of ideas, including using the funds for expungement clinics, school buses, wheelchair ramps, cannabis community centers, training for entrepreneurs, grants and no-interest loans, the New Jersey Monitor reported.

“Funding for law enforcement under the guise of community reinvestment is not what we are looking for,” Ami Kachalia, a campaign strategist with the American Civil Liberties Union of New Jersey, told the commission, according to the news outlet. “We want real community reinvestment that supports the kinds of needs—things like social services and harm reduction and educational support and economic development—that truly increase access to opportunity for New Jerseyans and help communities thrive.”

New Jersey voters approved an adult-use cannabis legalization measure in the November 2020 election, and Gov. Phil Murphy signed legislation last year to set up a regulated market in the state.

Within that law is language that earmarks 70% of adult-use cannabis tax revenue for “social equity investments” in “impact zones,” or socially and economically disadvantaged communities most impacted by prohibition, according to the New Jersey Monitor.

Adult-use cannabis legalization appears to be on its way in Maryland, but now it’s a matter of which avenue is the best to get there.

Senate Finance Committee members entertained a pair Democratic-sponsored bills during a hearing March 3. Their considerations come on the heels of the Maryland House passing a companion bill package that would put a ballot question to voters in the November 2022 election, before the chamber’s lawmakers take up measures in complementary legislation. 

The House’s legalization bill, sponsored by Del. Luke Clippinger, a Baltimore City Democrat, would allow adults 21 and older to purchase and possess up to 1.5 ounces of cannabis and decriminalize the possession of up to 2.5 ounces as a civil offense rather than a misdemeanor. It passed the chamber in a 92-37 vote on Feb. 25.

HED: Maryland House Advances Adult-Use Cannabis Measure

Meanwhile, Sen. Brian Feldman, a Montgomery County Democrat, is sponsoring Senate Bill 833, and Sen. Jill Carter, a Baltimore Democrat, is sponsoring S.B. 692, which propose different paths toward adult-use legalization in the upper chamber.

Both measures were discussed by Senate Finance Committee members during a hearing Thursday, but the body did not hold votes.

As reform advocates remain waiting for President Joe Biden to fulfill campaign pledges to decriminalize cannabis, pardon nonviolent offenders and reschedule the plant, a new White House policy has emerged.

Under the Biden administration’s new employee conduct guidelines, individuals who have invested in cannabis companies can be denied security clearance, POLITICO reported March 2.

The news sheds continued light on anti-cannabis stances by the president as it pertains to employment. Last year, Biden’s employment policies came under the scope following alleged reports that dozens of young White House staffers were suspended or asked to resign due to past cannabis use.

Discouraging potential White House job seekers from investing in cannabis companies is the latest.

“Eligibility may be negatively impacted if an individual knowingly and directly invests in stocks or business ventures that specifically pertain to marijuana growers and retailers,” according to a government document obtained by POLITICO. “Decisions to willfully invest in such activity could reflect questionable judgment and an unwillingness to comply with laws, rules, and regulations.” 

The document didn’t explicitly clarify which cannabis stocks or companies—American or non-domestic—the White House was referring to.

Ontario cannabis businesses that became accustomed to providing delivery and curbside pickup services during 2020 government shutdowns associated with COVID-19 can now utilize those supply avenues for the foreseeable future.

The Alcohol and Gaming Commission of Ontario (AGCO) announced March 1 that the temporary provisions that authorized cannabis delivery and curbside pickup—through the Reopening Ontario Act of 2020—will become permanent March 15.

The announcement comes after Ontario, Canada’s largest adult-use market, had a record year of $1.47 billion in retail sales for 2021, representing a 106% year-over-year increase for the province.

RELATED: Canada Eclipses CA$3.9 Billion in Cannabis Sales for 2021

“Please note that the new rules for delivery still will not permit cannabis retail stores to operate entirely or predominantly as delivery businesses,” AGCO’s announcement stated. “The new rules will allow cannabis retailers to continue to safely offer consumers greater choice, convenience and access to legal recreational cannabis.”

AGCO’s new requirements for delivery include:

Medical cannabis dispensaries in Hawaii have a new set of rules to adhere to.

The Hawaii State Department of Health (DOH) revised its interim administrative rules for the state’s medical cannabis licensing program, with the new rules taking effect Feb. 24.

The original interim rules centered on implementing Hawaii’s medical cannabis program and getting dispensaries up and running to serve patients, according to a press release announcing the revised rules.

The new rules focus on six specific areas, according to the release, including:

The revised interim rules can be found on the DOH website, which also offers and executive summary and a frequently asked questions page.

Pass Christian and Ridgeland became the first two cities in Mississippi to opt out of the state’s medical cannabis program this week.

City leaders decided March 1 that they will not host cannabis cultivators, processors and dispensaries, according to a SuperTalk Mississippi Media report.

The Board of Alderman in Pass Christian said it is too early to opt-in, the news outlet reported, and expressed interest in seeing how other municipalities deal with Mississippi’s medical cannabis program before they welcome the industry.

RELATED: Mississippi Will Start Accepting Medical Cannabis Applications by June

The state’s medical cannabis law, signed Feb. 2 by a reluctant Gov. Tate Reeves, allows counties and municipalities to opt out within three months of the bill being signed into law. Residents can then petition for a local election to overturn their city’s decision, SuperTalk Mississippi Media reported.

TORONTO, March 3, 2022 – PRESS RELEASE – TerrAscend Corp., a leading North American cannabis operator, announced the appointment of Kara DioGuardi to its board of directors. A Grammy-nominated songwriter, producer, record executive, music publisher, Broadway actress and former American Idol judge, DioGuardi's credits include 320 songs released by major labels, 11 of which have earned Grammy nominations, 23 BMI Awards and more than 50 charting singles, cumulatively surpassing 1 billion streams. DioGuardi co-founded Arthouse Entertainment, a music publishing company that holds past and present copyrights of many of the industry's most popular Grammy-winning artists.

"I am thrilled to add Kara to our board and look forward to leveraging the knowledge and insights she gained as a trailblazer in the music publishing industry," said Jason Wild, executive chairman of TerrAscend. "In particular, her deep brand building expertise and eye for talent and product appeal will be beneficial as we integrate our business with Gage Cannabis and focus on increasing brand equity across our core markets." 

In addition to her extensive music industry career, DioGuardi co-founded Inspired Nation in 2016, a nonprofit that aims to provide young aspiring artists with a platform to tell their stories. All proceeds from Inspired Nation's singing competitions benefit youth-focused charities.

Prior to founding Arthouse and Inspired Nation, DioGuardi held several roles in the music industry throughout her career, including music producer and label executive for Billboard Magazine.

DioGuardi graduated from Duke University in 1992 with a Bachelor of Political Science and Government, and presently serves on five boards, including the MLC and NMPA S.O.N.G.S. boards.

GATINEAU, Quebec, March 03, 2022 (GLOBE NEWSWIRE) -- PRESS RELEASE -- HEXO Corp., a producer of cannabis products, today announced that the company has taken a significant step in executing on its strategic plan, The Path Forward, by finalizing a strategic partnership with Tilray Brands, Inc., which includes a new debt financing agreement.

Under the new agreement, Tilray Brands will acquire US$211 million of senior secured convertible notes that were originally issued by HEXO to HT Investments MA LLC. The new terms of the notes are significantly more favorable to HEXO and will enable the company to strengthen its balance sheet and accelerate its transformation into a cash flow positive business within the next four quarters. The new partnership also brings together Canada’s top two cannabis market share leaders and is expected to create efficiencies of up to C$50 million within two years which will be shared equally between HEXO and Tilray Brands.

“My top priority since I joined in November has been to fix a very challenged balance sheet as a result of the notes that were previously put in place, and today, after an exhaustive search for alternatives, we are announcing the most optimal agreement to strengthen our balance sheet, preserve value for shareholders and provide HEXO with the capital to execute on our The Path Forward plan,” said Scott Cooper, HEXO president and CEO. “This strategic alliance will help lower our costs, preserves our stand-alone optionality and we look forward to reaching a definitive agreement shortly.”

Irwin D. Simon, Tilray Brands’ chairman and CEO, said, “We believe the proposed transaction is a win-win for Tilray Brands and HEXO as it would launch a strategic partnership between two leading Canadian cannabis producers with complementary brand portfolios. For us, it provides a path for meaningful future equity ownership of HEXO and enables us to participate in HEXO’s share price appreciation as it continues to execute on its growth initiatives. We also expect to realize further commercial and production efficiency savings of up to C$50 million within two years, which would be shared equally and would allow us to continue being the leading, low-cost Canadian producer. I look forward to working with HEXO’s management team and Board to create additional brand awareness and shareholder value.”

“Restructuring HEXO’s debt is a critical first step in allowing the company to move forward with its Path Forward strategy and to begin to unlock significant shareholder value,” said Mark Attanasio, chair of the Board of Directors of HEXO. “The company has endured a crippling overhang for the past 12 months, due to punitive redemptions and discounted dilutive financings, and we needed to solve this issue in order to make positive progress. This new deal accomplishes this and places HEXO solidly on a path to growth.”

Wisconsin is one of 13 states remaining without medical or adult-use cannabis legalization, but a pair of indications this week point toward growing support for reform.

In Green Bay, the state’s third-largest city, officials approved changes to an ordinance relating to cannabis possession. The city’s Common Council members voted unanimously March 1 to lower fines to $0 for possession of 28 grams or less of cannabis in public or private spaces for those 21 and older. Offenders would only be responsible for $61 in court costs under the changes.

The current ordinance sets a maximum penalty at $500 for possession of 28 grams or less of cannabis with no distinction in penalties for minors.

Also this week, Marquette Law School pollsters revealed the results from a recent survey that shows 61% of Wisconsinites support cannabis legalization, the highest percentage since the survey began in 2013, while 31% oppose it.

In addition, 51% of Republicans in the state now support cannabis legalization, opposed to 43% who supported it when the question was first asked in 2013. Democrats who support legalization jumped from 53% to 75% in that same timeframe.

Reflecting that growing support for reform in Green Bay, the city’s proposal faces a second vote at the next council meeting before the revised ordinance takes effect, the Green Bay Press Gazette reported.

LAS VEGAS, NV (March 3, 2022) – Cannabis Conference, produced by the award-winning trade publications Cannabis Business Times, Cannabis Dispensary, and Hemp Grower and taking place Aug. 23-25 at Paris Las Vegas Hotel & Casino—today announces its 2022 education program.

The Cannabis Conference 2022 education program includes 45+ sessions that will provide actionable takeaways about the most pressing issues plant-touching businesses face in the cannabis industry.

Some of the most highly anticipated sessions from the four education tracks of this year’s program include:

Click here to view the full agenda.

“Cannabis Conference is the go-to industry event for plant-touching professionals—whether you are new to the industry or taking your established cannabis business to the next level,” Conference Programming Director Cassie Tomaselli said. “The sessions at Cannabis Conference will be full of takeaways specifically for cannabis cultivators, dispensary operators, extraction professionals, and hemp growers. In curating our program, we leaned heavily on the expertise of our 20 advisory board members, who are leaders in some of the most prominent and successful companies in the industry.”

In addition to dozens of sessions on everything from cultivation to facility buildout, operations, and retail and cultivation business strategies, as well as invaluable networking opportunities, Cannabis Conference will also feature 230+ exhibitors on its trade show floor, including experts in horticultural lighting, nutrients, growing media, pest control, structures, drying and storage, IT services, marketing solutions, accounting and finance, POS software, packaging and labeling, and much more.

 Amazing News! We are excited to announce that we won the Commercial Cannabis Award 2021 by GHP Global Health & Pharma! This is a BIG motivation for our team! Thank you!! https://www.ghp-news.com/winners/seed-bank-finder/

CHICAGO, March 1, 2022 – PRESS RELEASE – Verano Holdings Corp., a leading multistate cannabis company, announced it has drawn an additional $100 million under its existing credit agreement pursuant to a fourth amendment to such credit agreement, to fund expansion and strategic growth initiatives, per its previous announcement on Feb. 1, 2022, at a non-dilutive interest rate of 8.5%.

As part of such amendment to its credit agreement, funding for up to an additional $175 million at a future date was added, which lending commitment is subject to final agreement and conditions with the company’s lenders. Chicago Atlantic Advisors LLC is the lead administrative agent and collateral agent, with participation from AFC Gamma Inc.

New York is now allowing hemp farmers and processors to apply for conditional licenses to cultivate, manufacture, and distribute cannabis for the state’s adult-use market.

Former Gov. Andrew Cuomo signed New York’s adult-use cannabis legalization bill into law in March 2021, but throughout the rest of his time in office, he made little headway to help shape the state’s adult-use market.

In August 2021, New York elected Kathy Hochul as governor. When Hochul was appointed, she noted that getting the state’s cannabis program up and running was a main priority, Cannabis Business Times reported. And she’s been actively working toward that goal.

To help jumpstart New York’s adult-use cannabis market, Hochul signed Senate Bill S8084 into law Feb. 22.

RELATED: New York Governor Signs Bill to Allow Hemp Businesses to Grow Cannabis for Adult-Use Market

The legislation allows hemp farmers to apply for a conditional adult-use cannabis cultivator license to grow cannabis this year to help supply the state’s adult-use market. As previously reported by Hemp Grower, “the conditional licenses will allow hemp farmers to grow cannabis outdoors, or in a greenhouse, for up to two years from the date the license is issued.”