MjLink Cannabis Business News and Press

Oregon’s cities and counties can currently levy a maximum local cannabis sales tax of 3%, but after some municipalities lobbied for higher taxes, the state Legislature is considering a bill that would allow local governments to raise the cannabis sales tax to 10%.

Senate Bill 1506, introduced Feb. 1 by Sen. Lynn Findley and Rep. Mark Owens, received a public hearing in the Senate Committee on Finance and Revenue Feb. 7.

If ultimately passed, the legislation would raise the total sales tax on cannabis from 20% to 27% when including the state tax rate.

The Oregon Retailers of Cannabis Association (ORCA) has come out in strong opposition of S.B. 1506, and the organization sent an email to its members Feb. 9 to urge them to contact their state leaders to express their concerns about the legislation.

“ORCA has submitted testimony in strong opposition to the bill—but we need as many of you as possible to contact leaders in state government to make sure they know that this bill would be extremely harmful to Oregonians,” the group wrote in the email.

A number of black-owned social equity licensees have banded together to support The Black Box Project in honor of Black History Month.

The Black Box Project was founded by Los Angeles-based dispensaries and brands to highlight the importance of social equity and inclusion in the cannabis industry while supporting black-owned cannabis businesses, according to a press release.

Dispensaries involved in The Black Box Project include Josephine & Billie's, Gorilla Wellness RX, Sixty Four & Hope, Mid-City, and Sixty Four & Hope, Melrose District. 

The collaboration between the companies introduces consumers to a range of black-owned cannabis businesses and brands, including: 3.5g of Daniel LaRusso (Ball Family Farms); 1g preroll of Laura Charles (Ball Family Farms); 3.5g of Clubber Lang (Ball Family Farms x Sixty Four & Hope); 5g preroll 2-pack (Wyllow); 1g Juseyo Wedding Cake preroll (Biko); 1g Cherry Gelato (Justice Tree); 510-thread rechargeable battery (House of Tyne); 3.5g 10-count preroll pack (Viola Brands); and 1g House Cured Resin Concentrate (Gorilla RX); and more. 

"It is absurd that we live in a world where black people are still the most likely to get arrested for cannabis, and the least represented in the legal market," says Whitney Beatty, CEO of Josephine & Billie's. "We need customers to stand with us and show the industry that an inclusive supply chain matters.

The list for pesticides that can be used on cannabis without being a violation of the Pesticide Applicators' Act has been updated. Please note the following products have been added:

To view the updated list, click here for a pdf or click here for an Excel form. For questions regarding this change, contact Jolynn Morris at (303) 869-9060 or email [email protected]. 

The Colorado Department of Agriculture (CDA) is currently reviewing pesticide labels upon request and maintaining a list of products whose label it has reviewed that it believes could be used on marijuana without violating 35-10-117(1)(i), as long as the applicator follows the label directions.

Please be sure to review the list; pesticide products may be removed from the allowed products list if the registrant has not renewed their pesticide product with the Department. Use of unregistered pesticides on cannabis would be a violation of the Pesticide Applicators' Act.

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AUSTIN, Texas (Feb. 16, 2022)—PRESS RELEASE—Fluence by OSRAM (Fluence), a global provider of energy-efficient LED lighting solutions for commercial cannabis and food production, launched its high-intensity fixture SPYDR 2h. The latest addition to Fluence’s SPYDR series, the high-output solution produces a photosynthetic photon flux (PPF) of 2,100 μmol/s, a 24% increase over previous fixtures.

Fluence designed the cutting-edge SPYDR 2h solution for indoor, multi-tier commercial cannabis cultivators aiming to optimize their growing environments, achieve greater crop yields and grow higher quality crops. The fixture offers high-intensity lighting, precise uniformity, increased efficiencies and features Fluence’s PhysioSpec BROAD R4 indoor white spectrum with efficacy of 2.6 μmol/J at 277V AC. In typical multi-tier rack systems, photosynthetic photon flux density (PPFD) levels of up to 1,500 μmol/m2/s can be achieved. The multi-tier luminaires are also easy to mount for a quick and flexible installation.

“High-intensity lighting is top-of-mind for commercial cannabis operations seeking to increase crop yields,” said Jordon Musser, chief product officer for Fluence. “We’re proud to provide growers the next generation in our SPYDR series—a higher-performing lighting solution—to boost their cultivation goals as they revolutionize operations through advanced cultivation strategies.”

Fluence’s fixtures are backed by science: The company’s multiyear global cannabis research trials demonstrate higher lighting intensities maximize crop yields. SYPDR 2h’s capability to increase PPF by more than 20% not only affords growers the opportunity to improve crop yield, but to also hone plant production to achieve specific traits such as higher THC percentages and more potent terpene profiles.

“Fluence is excited to introduce SPYDR 2h to cannabis cultivators throughout the world,” said David Cohen, CEO of Fluence. “As more states and countries introduce cannabis legislation—and the industry’s existing leaders evolve their cultivation environments—Fluence’s high-intensity LED technology offers cannabis customers uniformity and greater control within their facilities. We support cultivators every step of the way in implementing new solutions like SPYDR 2h to help them grow smarter, resulting in higher yields and better-quality cannabis crops.”

Missouri Rep. Ron Hicks (R-St. Charles) filed legislation Feb. 15 to legalize adult-use cannabis in the state, according to an Ozark Radio News report.

House Bill 2704, called the “Cannabis Freedom Act,” is an omnibus cannabis legalization bill that would allow hospitality operators, such as bars, restaurants and hotels, to offer cannabis consumption spaces, the news outlet reported.

The bill would also release all non-violent cannabis offenders from prison and create a system for individuals to expunge prior cannabis offenses from their records, according to Ozark Radio News.

The legislation includes additional provisions that would allow individuals on probation or parole to legally use cannabis.

H.B. 2704 would also create a tax deduction for applicants denied medical cannabis licenses in Missouri in the amount of application fees paid to the state. The bill creates an additional tax deduction for medical cannabis business operators who are unable to deduct business expenses from federal taxation, according to Ozark Radio News.

For the third year, we’re pleased to feature the Best Cannabis Companies To Work For in the cultivation segment of this fast-growing industry.

This is one of our favorite issues of the year, one in which we get to turn up the intensity of our spotlight on companies that are celebrating their employees and empowering a workforce in these trying times. As we noted in the print issue’s introduction, employee engagement has taken center stage as people search for work that brings a sense of satisfaction to their lives.

Between company benefits and more experiential perks, we picked out some of the best ideas guiding these businesses to their recognition this year. It’s one thing to work in the exciting cannabis space, but it’s another thing entirely to work for a company that values its employees and helps each individual meet goals along the way.

Each of these businesses provides more than a few lessons that we can all take back to our own workplaces.

And take note: The dispensary-focused Best Cannabis Companies To Work For feature will land in mailboxes as a special CBT supplement along with the March issue.

FRANKFURT, Germany, Feb. 16, 2022 /CNW/ - PRESS RELEASE - Cansativa Group announced today it has closed a $15M Series B investment. The funding round was led by Casa Verde with participation by Argonautic Ventures and Munich-based family office Alluti. This represents Casa Verde's largest investment in Germany and in Europe to date.

As one of Germany's largest cannabis businesses, Cansativa is building the 'Amazon' of cannabis for Europe, offering its customers a B2B platform to manage every stage of the value chain from importing goods to distributing them to thousands of pharmacies across the country. 

Given its exclusive relationship with German regulator, the Federal Institute for Drugs and Medical Devices (BfArM), Cansativa is the only company permitted to distribute domestically-grown medical cannabis.

The company will use the funding to expand its medical cannabis product portfolio and build out its recreational platform ahead of legalization in Germany.

"This investment from Casa Verde, one of the industry's preeminent cannabis venture firms, is a significant milestone for our company and sends a strong message to the European cannabis market," says Benedikt Sons, founder, managing director and CEO of Cansativa Group. "It will allow us to realize our ambitious vision to become the operating backbone for cannabis retail in Germany and to play a vital role in enabling simple and safe access to cannabis for everyone."

"Cansativa is strategically positioned to become one of the leading cannabis platforms in Europe," says Yoni Meyer. "The company combines crucial industry expertise with an ambitious vision and a rapidly growing success story. We firmly believe this team will play a central role in the expected legalization in Germany and have a decisive impact on the European market, projected to reach $3.6B by 2025."

DENVER,Feb. 16, 2022 – PRESS RELEASE – Schwazze announced that it hasclosed the transaction to acquire the assets of Denver-based Brow 2 LLC. Theplanned transaction includes a 37,000-square-foot building and equipmentdesigned for indoor cultivation. This transaction continues Schwazze'saggressive expansion in Colorado and will enhance the company's cultivationcapabilities, providing product directly to its dispensaries. Theconsideration for the acquisition was $6.7 million and was paid in cash atclosing.

"Thisis another step in building operational depth and capabilities in Colorado forSchwazze,” company CEO Justin Dye said. “This acquisition will add a talentedteam of growers, high-quality indoor flower cultivation capacity, new straingenetics, and another profitable asset to our platform. The new facility willsupply our growing network of dispensaries and customers with a broadassortment of high-quality indoor flower."

CorporateUpdate

Latein 2021, Schwazze announced a transformational $95-million raise withinstitutional investors and individuals, allowing the company to expedite itsaggressive expansion plans and become a regional MSO with operations inColorado and New Mexico. The company's differentiated strategy is to builda leadership position in retail and operational depth within its operatingareas.

SinceDecember 2021, Schwazze has completed five acquisitions adding a total of 15cannabis dispensaries, including Smoking Gun (December 2021); Drift (February2022); Emerald Fields (February 2022); and the 10 Greenleaf New Mexicodispensaries (February 2022).

SinceJuly 2021, the company has acquired a total of six cultivation facilities, twoin Colorado, including SCG Holding LLC (July 2021); and Brow 2 LLC (February2022)—and four licensed in New Mexico (February 2022). The Greenleaf NewMexico acquisition also added a manufacturing asset, Elemental Kitchen &Laboratories LLC, to the company’s Purplebee's manufacturing plant in Colorado.

TALLAHASSEE, Fla., Feb. 15, 2022 – PRESS RELEASE – Trulieve Cannabis Corp., a leading and top-performing cannabis company in the U.S., announced it has completed the acquisition of an operational 64,000-square-foot cultivation facility in Phoenix. Trulieve will pay $13.75 million cash at closing, with potential milestone payments subject to earn-out and escrow requirements.

"We are excited to close this acquisition which is in line with our strategic priorities," Trulieve CEO Kim Rivers said. "The facility strengthens Trulieve's presence in the cornerstone market of our Southwest hub, as well as expands our cultivation capacity. We look forward to serving more patients and customers throughout Arizona with our high-quality, proprietary brands."

The new cultivation facility immediately improves supply-chain capacity and becomes Trulieve's fifth cultivation facility in Arizona, supporting Trulieve's 17 dispensaries in the state with flower for medical patients and adult-use customers. Trulieve locations in Arizona include Avondale, Casa Grande, Chandler, Cottonwood, Glendale, Guadalupe, Lake Havasu, Mesa, Peoria, Phoenix, Scottsdale, Tempe and Tucson. 

I never intended to get into the cannabis industry.

I worked as an Urban Planner managing the Natural Resource Program for the County of Ventura, California, where I oversaw the surface mining and oil and gas programs. After moving back to the Inland Empire, where I grew up, I ended up consulting for a city that embraced the idea of commercial cannabis licenses. And before I knew it, I found myself looking at land-use issues around cannabis.

I quickly realized that cannabis would primarily be a land-use issue, a world I knew very well. I managed several dozen cannabis projects, including cultivation sites, extensive manufacturing facilities, distribution centers, and retail locations in California, and I consulted on projects in Washington, Oklahoma, and Nevada. Then I started working with policy and permitting and quickly found legacy operators who needed help with licensing and compliance.

The approach that I've always taken is bridging the gap between the regulatory body and operators. Because especially with cannabis, though I've seen it in oil and gas too, you are working with individuals who previously hid from the government. The harm that came from cannabis prohibition, particularly in the black community, and how police enforced it has been disproportionate. I don't think anyone would argue that, but what happens is it builds mistrust on both sides, rightfully so on one side.

So, we have operators who did not want to come forward because they didn't trust that the government would legitimately give them a license. The social equity process itself was long, daunting, and convoluted. Plus, don't forget that this transition requires legacy operators to go from having no regulations to having an oppressive number to keep up with. It's complicated.

Ascend Wellness Holdings Inc. (AWH), a multistate, vertically integrated cannabis operator, filed an amended complaint against MedMed Enterprises Inc. and a motion to dismiss “baseless counterclaims” on Feb. 14 in New York.

The filings are the latest in Ascend’s legal battle with MedMen, which stems from a roughly $73-million definitive investment agreement between the two companies on Feb. 25, 2021.

Under the signed agreement, Ascend was to acquire 86.7% interest in MedMen NY Inc. (MMNY), MedMen’s subsidiary in New York, through investing $35 million in cash and issuing a senior secured promissory note in favor of MMNY’s senior secured lender in the principal amount of $28 million.

In addition, Ascend held an option to acquire the remaining equity in MedMen’s New York operation through an additional investment of $10 million, which also was intended to be used to repay MMNY’s senior secured lender if adult-use cannabis sales commence in MMNY’s dispensaries, according to a February 2021 AWH press release.

Ascend would have acquired one of New York’s 10 licenses to distribute medical cannabis through the transaction.

“We believe the proposed transaction will bring fresh capital and a new perspective to New York’s medical marijuana program and its patients,” Ascend founder and CEO Abner Kurtin said in the February 2021 release.

A worldwide cannabis company has segued into the hemp industry with its recent acquisition.

Premium cannabis company Diego Pellicer Worldwide has acquired Hemp Choice Distribution, a hemp and CBD company, for a $4.4 million cash and stock deal.

Diego Pellicer Worldwide CEO, Nello Gonfiantini III, said in a press release that he hopes the recent acquisition will help advance the company’s long-term business goals. “We’re expanding into a rapidly growing product category,” he said. “Hemp Choice is a premium provider of hemp and CBD. We welcome them as a wholly-owned subsidiary.”

Hemp Choice works with a wide range of individuals in the industry–from growers and processors to manufacturers and retailers—and the company provides hemp and CBD for a wide array of commercial and industrial products, according to the release.

“I look forward to working with Diego as we expand business opportunities in the cannabis space of hemp and CBD—one of the fastest-growing segments in this marketplace,” said Gabriela Vergara, Hemp Choice Distribution founder and CEO.

The New Mexico Senate passed legislation Feb. 14 that would make changes to the state’s adult-use cannabis law, according to NM Political Report.

S.B. 100 would increase plant count limits for cannabis microbusinesses from 200 to 1,000, as well as allow those licensees to buy, sell and transport cannabis from other companies.

An emergency rule went into effect last month to temporarily allow New Mexico’s licensed cannabis producers to double their plant count from 10,000 to 20,000 mature plants, but the production limit for microbusinesses must be increased legislatively since it is set in statute in the Cannabis Regulation Act that legalized adult-use cannabis.

S.B. 100 would also allow New Mexico’s medical cannabis businesses, which have been required to register as nonprofit organizations, to operate as for-profit companies, according to NM Political Report.

The Senate Judiciary Committee approved the bill Feb. 13 after Sen. Cliff Pirtle (R-Roswell) added an amendment to eliminate a requirement that cannabis license applicants must show proof of water rights as a condition of licensure.

BETHESDA, Md., Feb. 15, 2022 /PRNewswire/ -- PRESS RELEASE -- CULTA, Maryland's craft producer of top shelf cannabis and extracts, today announced its new COO and organizational promotions that reflect its tremendous company growth. The company continues to provide opportunities for leadership and non-leadership roles as it focuses on maintaining brand momentum in the Maryland market.

MIAMI, Feb. 15, 2022 (GLOBE NEWSWIRE) -- PRESS RELEASE -- Ayr Wellness Inc., a vertically integrated U.S. multi-state cannabis operator, today announced that it has closed the acquisition of Cultivauna, LLC, the owner of Levia branded cannabis infused seltzers and water-soluble tinctures.

“Bringing Levia into the Ayr family represents a key addition to our portfolio of high-quality, branded offerings,” said Jonathan Sandelman, founder, chairman and CEO of Ayr. “We look forward to expanding the presence of Levia’s seltzers and water-soluble tinctures across our multi-state footprint, while bringing new, innovative form factors to life, like beverage enhancers. With a fast-acting formula and great taste, we believe Levia will be a crucial component in expanding our reach to new and existing consumers who seek a predictable and familiar cannabis experience.”

Levia uses a proprietary technology which provides for rapid onset of the effects of THC, typically 15-20 minutes with lasting effects up to 3 hours, allowing for a more consistent consumption experience compared to many edible products.

The ownership transition was approved by the Massachusetts Cannabis Control Commission (CCC) on Thursday, Feb. 10, 2022. Terms of the transaction can be found in the company’s press release announcing the signing of a definitive agreement, dated Sept. 7, 2021.

HUNT VALLEY, Md., Feb. 15, 2022 – PRESS RELEASE – Brytemap,a Maryland-based provider of software and technology for the cannabis industry,just introduced GreenR 3.0, the newest iteration of its dispensary softwaresolution.

Building on the success of previous versions of the all-in-onesoftware platform, GreenR 3.0 offers updated e-commerce features to deliver anunprecedented, enhanced user experience.

“Giving dispensary customers the ability to check allotments,apply discounts, promotions and loyalty points all within their cart atcheckout are next level, and this is only a small glimpse of all the newfeatures,” said Brytemap founder Bryan Lopez. 

Brytemap’s UI/UX Developer Jaclyn Davis added, “It’s no secretthat the top three benefits of a positive user experience are to increasesales, increase customer satisfaction and increase customer loyalty. Ourmission was to create the most user-friendly cannabis e-commerce platform onthe market today, and we’ve accomplished this. We optimized every customerview from big screen in-house menus down to hand-held devices, plus addedfunctionality in searching brand sizes, price, type of cannabis and cannabinoidlevels all contribute in a very positive way to the userexperience.”  

In addition to a dramatically improved customer-facingexperience, Brytemap has updated back-end functions, with more reportingoptions and better visibility. These include loyalty tracking and user balancereports, customized reports in real-time, and increased exporting functions foraccounting purposes, offering actionable, common-sense reporting for greaterinsight into business operations. 

Perhaps the most groundbreaking innovation in the BrytemapGreenR 3.0 platform is the superior smart pre-order function that recognizesproduct availability. This e-commerce capability intelligently recognizesweight combinations before marking a product as “sold out,” allowingdispensaries to maximize product sales without fixed weight or sizerestraints. 

The legalization of cannabis across dozens of individual state markets within our country has given entrepreneurs reason to believe in the phrase “the sky is the limit.” As 2021 showed, innovation in cannabis continues to force businesses to get creative and bring pristine products to the market. At the intersection of science, cannabis and technology, innovators have found a niche entry point to the industry, one vertical being infused beverages.

This segment is a great normalization tool for the industry. As a society, we’re constantly in environments where beverages are in hand—whether that be a ballgame, family dinner, or company outing. And now there are more beverage options for consumers wanting to feel the buzz without an alcohol component.

When it comes to creating a product and launching into a still-developing market, it is important to make sure the product aligns with current consumer trends. As the hard seltzer market rapidly grew in recent years, the seltzer trend was one cannabis beverage companies hopped on when generating their own business models. Forecasting into the very near future, the seltzer industry anticipates new products emerging from like-minded competitors. Current industry participants will have to continue to utilize consumer data from market intelligence companies such as Headset and BDSA as they have become and will continue to be valuable assets to make informed business decisions in the coming years.

As any entrepreneur can attest, however, with popularity comes competition.

Now that the cannabis beverage space is known as a viable avenue for cannabis product development, more entrants will arrive. Therefore, standing out among competitors is going to become a primal factor when developing a new cannabis beverage brand. Companies are naïve to think consumers are going to initially purchase a new product they hear about, just for the product. Those days are long gone; today, branding needs to be visually appealing and aesthetically pleasing in order to yield more customer attention. However, while branding can help secure a customer’s initial purchase, the goal is to attract repeat customers. Albeit difficult, attracting recurring consumers comes from the integrity of the product. Specifically in the cannabis beverage sector, consumers are looking for a product that yields a desired effect. Meaning, when it comes to securing frequent buyers, what’s in the can is more important than what’s on the can. The more positive experience a canna-curious consumer has, the more likely they’ll come back for more.

New legislation in New York would allow licensed hemp businesses to grow and process cannabis for the state’s forthcoming adult-use market, according to a local WGRZ report.

Assembly Bill A2682A and Senate Bill S8084 would allow the Office of Cannabis Management to issue “conditional adult-use cultivator licenses” to hemp farmers, who could then grow and process adult-use cannabis to supply the state’s dispensaries, WGRZ reported.

Applicants must hold a valid industrial hemp grower authorization from the New York Department of Agriculture and Markets as of Dec. 31, 2021, according to the news outlet, and be licensed to grow cannabinoid hemp.

"It provides a conditional license to make sure when licensing is in place that equity business will have a product to put on their shelves," Assembly Speaker Crystal Peoples-Stokes, who is a sponsor of A.B. A262A, told the news outlet.

Michigan Gov. Gretchen Whitmer has issued an executive order that consolidates cannabis and hemp regulation in an effort to improve efficiency and advance the growth of both industries, according to a press release.

Currently, the Michigan Department of Agriculture and Rural Development (MDARD) regulates the state’s hemp market, while the Marijuana Regulatory Agency (MRA) regulates the medical and adult-use cannabis markets.

Whitmer’s Executive Order 2022-1 renames the MRA as the “Cannabis Regulatory Agency” and charges it with regulating the processing, distribution, and sale of hemp and cannabis moving forward, although MDARD will continue to oversee hemp cultivation.

The executive order will take effect in 60 days, according to the press release.

“Consolidating multiple government functions into the newly named Cannabis Regulatory Agency will help us continue growing our economy and creating jobs," Whitmer said in a public statement. “And to be blunt—safe, legal cannabis entrepreneurship, farming, and consumption helps us put Michiganders first by directing the large windfall of tax revenue from this new industry to make bigger, bolder investments in local schools, roads, and first responders."

Washington’s Social Equity in Cannabis Task Force has been hard at work since its creation in 2020, and new legislation in the state Legislature now aims to incorporate policies recommended by the task force to increase social equity in the state’s cannabis market.

The task force, which is made up of lawmakers, government representatives and industry experts, was charged with making recommendations about issuing and reissuing cannabis dispensary licenses in ways that would promote business ownership among people of color, according to The Seattle Times.

A new bill in the Washington Legislature, House Bill 2022, aims to do just that by creating 38 new dispensary licenses, as well as 25 new producer and processor licenses, every year through 2029, the news outlet reported. These licenses may only be issued to social equity applicants through 2030, and then, beginning in 2031, 50% of the licenses must be awarded to social equity applicants.

Social equity applicants are defined as those who have lived in areas disproportionately impacted by the war on drugs, or those who plan to open a cannabis business that is majority owned by a racial group that has been disproportionately affected by arrests for cannabis possession, The Seattle Times reported.

H.B. 2022 also earmarks over $22 million annually to provide grants, low-interest loans and a mentorship program to social equity applicants, according to the news outlet.