MjLink Cannabis Business News and Press

The New Mexico Senate Judiciary Committee voted 6-3 on Feb. 13 to approve legislation that would make several changes to the state’s adult-use cannabis law, according to NM Political Report.

Senate Bill 100, sponsored by State Sen. Linda Lopez (D-Albuquerque) and Rep. Andrea Romero (D-Santa Fe), would increase production limits for cannabis microbusinesses from 200 plants to 1,000 plants, as well as allow microbusinesses to wholesale products, the news outlet reported.

RELATED: New Mexico Legislation Aims to Increase Plant Count for Cannabis Microbusinesses

Regulation and Licensing Superintendent Linda Trujillo told lawmakers during the Senate Judiciary Committee hearing that increasing the production limits will help ensure an adequate supply of medical cannabis for the state’s patient base, according to NM Political Report.

Last month, an emergency rule went into effect to allow New Mexico’s licensed cannabis producers to double their plant count from 10,000 to 20,000 mature plants, but the limit for microbusinesses must be increased legislatively since it is set in statute in the state’s adult-use cannabis law.

Newark, New Jersey - PRESS RELEASE - The New Jersey State Policy Lab at Rutgers University has released a first-of-its-kind report examining health, education, and law enforcement factors related to cannabis usage. It’s intended to be used as a baseline to measure the impact of legalization and identify disparities among different communities.  

“This report is critical to New Jersey setting a model similar to other states in recognizing that all people in the state are not the same, and by legalizing cannabis, its impact on different communities is going to vary,” said Charles Menifield, dean of Rutgers University-Newark School of Public Affairs and Administration and the study’s principal investigator.  

The goal is to use the data for comparative analysis over time to help shape state policy. "This is literally a baseline report of what we should be looking at and where we are now,’” said Menifield.

The study uses a wealth of secondary data to provide a snapshot of present-day usage and law-enforcement measures across age, racial, and gender lines. It also gauges youth attitudes toward cannabis, as well as medical and behavioral health factors that could be affected by legalization, such as suicide rates and the number of people entering treatment facilities for cannabis addiction. ? 

Some of the most glaring racial disparities occurred within the legal system. The number of Black residents arrested for selling cannabis was more than five times higher than white residents. Black residents were four times as likely to be arrested for possession. 

Virginia lawmakers have advanced legislation that would launch the state’s adult-use cannabis market sooner than expected.

On Feb. 10, the Senate Finance Committee approved Senate Bill 313, legislation sponsored by Sen. Adam Ebbin that would allow Virginia’s medical cannabis operators to serve the broader adult-use market starting Jan. 1, 2023, according to a Richmond BizSense report.

Additional adult-use cannabis businesses would then be able to launch on Jan. 1, 2024, under Senate Bill 391, separate legislation that aims to reenact last year’s adult-use cannabis law, the news outlet reported.

Virginia’s legalization law cleared the Legislature and received former Gov. Ralph Northam’s signature in April 2021 but requires reauthorization this year before it can take effect.

RELATED: New Governor, Reenactment Clause Could Mean Changes to Virginia’s Adult-Use Cannabis Law

CHICAGO, Feb. 11, 2022 – PRESS RELEASE – Cresco Labs, a vertically integrated multistate operator and the No. 1 U.S. wholesaler of branded cannabis products, announced the Clio Award-winning documentary short film, “The Sentence of Michael Thompson,” will have its world premiere on March 9 at the Santa Barbara International Film Festival (SBIFF) and screen March 13-17 at the South by Southwest (SXSW) film festival. 

“The Sentence of Michael Thompson” is the first documentary short film on the topic of social justice, criminal justice reform and cannabis decriminalization, and the first social justice-focused documentary produced by a cannabis brand (Cresco), to debut at both acclaimed global and U.S. film festivals held in Santa Barbara, Calif. and Austin, Texas, respectively.

“It is humbling and an honor to have the opportunity to help share Michael Thompson’s story through such prestigious film festivals like SBIFF and SXSW,” said Chima Enyia, executive vice president of SEED, Cresco Labs’ Social Equity, Education, Development initiative.

“Unfortunately, one of the themes central to Michael’s story is not unique; several hundred thousand Americans—predominantly Black and Latinx—continue to be arrested on marijuana-related charges every year,” he said. “Over 40,000 people suffer in prison because of cannabis-related convictions at this very moment. Through this film, we hope to help audiences truly understand the gravity of injustice on the lives of people adversely impacted by the war on drugs and advance the dialogue surrounding racial and social justice to help change our nation’s drug laws.”

The subject of the film, Michael Thompson, is the longest serving non-violent offender in Michigan history. In 1994, he was arrested for selling three pounds of cannabis to a close friend turned police informant. He was sentenced to 42 to 60 years and remained in prison after Michigan legalized the adult use and sale of cannabis.

“The Sentence of Michael Thompson” follows Michael’s daughter, Rashawnda, and his lawyer, Kim, during the fight for clemency. It examines the harm the war on drugs has caused on marginalized communities and explores paths forward as national cannabis legalization gets closer to becoming a reality.

Growers now have the ability to maximize the genetic potential of their crop using Climate Control Systems' Precision Fertigation Manager (FCS2).

“By using our proprietary programming advancements in the evolution of fertigation, we have been able to leap beyond our competitors in identifying obstacles and inefficiencies that have haunted growers globally,” states Ian Morrell, head of sales for Climate Control Systems Inc.

Developed in partnership with the Harrow Research and Development Centre and Agriculture and Agri-Food Canada, Fertigation CS2 (FCS2) is a next-gen fertigation system featuring targeted PPM nutrient and recipe management with full local data storage.

FCS2 offers true multi-layered precision control of fertilizer feeding formulas at a previously unheard-of level, allowing growers to explicitly set variables at a PPM level to ensure crops have exactly the nutrients they require at the time they require them. 

With the capability to specify up to 100 grow zones, and 100 feed formula schedules within each, this system has the potential to sustain 100 individually monitored crops in each grow zone.

Among the 18 states that have legalized adult-use cannabis in the U.S., six are still in the regulatory period of finalizing their program frameworks before officially launching commercial sales. Those states are Connecticut, New Jersey, New Mexico, New York, Vermont, and Virginia.

For vertically integrated Verano, founder and CEO George Archos says expecting and preparing for legislative and regulatory delays are key to ensuring growth. Verano’s current portfolio encompasses 15 states, with active operations in 12, including 12 production facilities comprising more than 1 million square feet of cultivation.

Specifically, Verano’s footprint extends to two of the six states gearing up for upcoming retail launches: New Jersey, which legalized adult-use cannabis through voter-approved Question 1 in November 2020, and Connecticut, which legalized adult-use via passage of Senate Bill 1201 in June 2021.

While Verano’s 4,000-plus employees are also going through organic expansion phases in Florida, Nevada and Massachusetts this year—not to mention the potential for additional M&A action geared toward gaining access to new markets, like New York, Minnesota and New Mexico—the company’s success in New Jersey and Connecticut depends heavily upon calculated moves riddled by launch dates, Archos tells Cannabis Business Times.

Editor’s note: This interview has been edited for style, length and clarity.

Tony Lange: What were the biggest challenges that Verano overcame in 2021?

Cannabis has been a part of my life for as long as I can remember. It was the "funny-smelling" cigarettes my Dad would smoke after dinner, the thing that kept my cousin Earl in fresh Jordans, and the only way I could put myself through junior college. It was the thing that caught the attention of the FBI. And it was the thing that brought me to the level of success I achieve today. 

In 2010, I faced a felony charge and a 10-year minimum sentence. Luckily, I had a great lawyer and was not the focus of the FBI investigation. After a brief stint in prison, getting a regular 9-to-5 job, and completing 1,000 hours of community service, I received time served. I was free to go about my life—as long as I stayed away from cannabis.

However, it was too late. I had fallen in love with the cultivation process, and I still believed cannabis was my calling. Plus, I knew corporate America was not my thing. I just wasn't happy. I'm used to being an entrepreneur.

RELATED: Ball Family Farms: One of the First Vertically Integrated Social Equity Cannabis Businesses in LA

So, I quit my day job, took all of my savings, and bought a 5,000-square-foot cultivation warehouse in Los Angeles with only 14 lights in a tiny room.

And against my family's protests, I began my self-taught botany education. I burned through plants as I attempted to master my cultivation skills for the next two years. Then I started small, selling to old contacts who had Proposition D-compliant shops. I quickly made a name for myself growing top-quality flower, but I wanted to expand.

SAN DIEGO, Feb. 10, 2022 – PRESS RELEASE – Innovative Industrial Properties Inc. (IIP), the first and only real estate company on the New York Stock Exchange focused on the regulated U.S. cannabis industry, announced that it closed on the acquisition of a property in New Jersey, and entered into a long-term lease with a subsidiary of Ascend Wellness Holdings Inc. (AWH) at the property.

The purchase price for the property was $35.4 million (excluding transaction costs). AWH is expected to complete additional improvements for the approximately 114,000-square-foot property as a regulated cannabis cultivation and processing facility, for which IIP has agreed to provide reimbursement of up to $4.6 million. Assuming full reimbursement for the tenant improvements, IIP’s total investment in the property is expected to be $40 million. AWH is planning to build out its overall New Jersey cultivation footprint to include a lab, kitchen and 150,000 square feet of canopy by the end of 2023.

In addition to this New Jersey property, IIP owns and leases to AWH three other properties in Illinois, Massachusetts and Michigan, with IIP’s total investment in properties leased to AWH, including commitments to fund future tenant improvements, equaling approximately $179.75 million.

As a pioneering real estate investment trust (REIT) for the regulated cannabis industry, IIP partners with experienced, regulated cannabis operators and serves as a source of capital by acquiring and leasing back their real estate assets, in addition to offering other creative real estate-based capital solutions.

“We have been AWH’s long-term real estate partner since 2018 and are excited to once again expand our relationship with Abner and his team,” said Paul Smithers, president and CEO at IIP. “The AWH team continues to distinguish themselves in delivering the highest quality cannabis products and services to their patients and customers, and has developed a tremendous strategic footprint in some of the strongest regulated cannabis markets, including New Jersey.”

AWH is a publicly traded, vertically integrated cannabis company, with assets in Illinois, Michigan, Ohio, Massachusetts and New Jersey and approximately 1,500 employees. AWH owns and operates state-of-the-art cultivation facilities, grows award-winning strains, and produces a curated selection of products, including its Ozone branded products. In New Jersey, AWH currently operates two dispensaries in Montclair and Rochelle Park, and expects to open an additional dispensary in Fort Lee in late spring of 2022.

All six states that have legalized adult-use cannabis through legislative action, as opposed to ballot initiatives, have done so via Democratic-controlled legislatures.

The Republican-controlled Ohio General Assembly doesn’t plan on breaking that trend any time soon.

Ohio Senate President Matt Huffman, R-Lima, told reporters Feb. 9 that he won’t act on calendaring a proposal to legalize adult-use cannabis for floor debate in his chamber, The Columbus Dispatch reported.

“I don’t want anybody to misunderstand my position,” Huffman said. “I’m not going to bring it to the Senate floor. And if that means people want to go put it on the ballot, have at it.”

Republicans hold a 25-8 majority in the Ohio Senate and a 64-35 majority in the House.

The legalization proposal stems from a citizen-led effort by the Coalition to Regulate Marijuana Like Alcohol (CRMLA), which met a 132,877-signature threshold to put its petition before state lawmakers, the Ohio Secretary of State announced last month.

The trio of lawmakers behind the Cannabis Administration and Opportunity Act (CAOA) has invited their colleagues to provide input as they finalize the legislation, which is expected to be formally introduced this spring.

Senate Majority Leader Chuck Schumer (D-NY), Finance Committee Chairman Ron Wyden (D-Ore.) and Sen. Cory Booker (D-NJ), the bill’s main sponsors, sent a letter to their colleagues Feb. 10, urging them to provide their feedback on the bill, which was initially released in draft form last summer.

“We write today to invite you into the drafting process as we work to finalize this legislation,” Schumer, Wyden and Booker wrote in the letter. “In order to appropriately address such a nuanced issue, we respectfully request the input, advice and guidance of Chairs and Ranking Members of relevant committees as well as senators who have dealt with the challenges and realities of legalization in their own states. We would deeply appreciate your willingness to share your expertise on the intersections between your committees’ jurisdictions, your states’ experiences, and comprehensive cannabis reform and invite you to join the process of perfecting this legislation.”

Industry stakeholders submitted their feedback on the CAOA by a Sept. 1, 2021 deadline for public comment, and Senate leadership has since faced criticism for the delay in the formal introduction of the bill.

“This issue, which we believe the Senate is long overdue in addressing, has implications across many areas of American politics and policy,” Schumer, Wyden and Booker wrote. “Following the release of the CAOA discussion draft, we received over 1,800 comments from a broad array of stakeholders, many with substantive and detailed policy recommendations. In the weeks ahead, we will continue the work of incorporating these comments as we aim to introduce legislation soon that is as comprehensive and as reflective of as many relevant views and voices as possible.”

DENVER, Colo. - February 10, 2021 - PRESS RELEASE - The Colorado Department of Revenue (CDOR) released December 2021 cannabis sales figures and January 2022 cannabis tax and fee revenue figures, and reports a new record for cannabis sales in a single year. In 2021, Colorado reports over $2.22 billion from marijuana sales (compared to the previous record of over $2.19 billion in 2020). Here is the summary:

The Marijuana Sales Reports summarize total sales made by medicaland retail cannabis stores monthly by county. The Marijuana Tax Reports showstate tax and fee revenue collected monthly as posted in the Colorado stateaccounting system. Tax revenue comes from the state sales tax (2.9%) oncannabis sold in stores, the state retail cannabis sales tax (15%) on retailcannabis sold in stores, and the state retail cannabis excise tax (15%) onwholesale sales/transfers of retail cannabis. Fee revenue comes from cannabis license and application fees.

To view the full reports, please visit the following CDOR Office of Research and Analysis (ORA)’s webpages:

As the legalization of adult-use cannabis sweeps Europe, stakeholders and emerging investors on both sides of the Atlantic are attempting to read the tea leaves to discern what the future holds. One emerging theme is the use of social clubs as a means for distribution. 

Social clubs are nothing new to Europe, as coffee shops in the Netherlands function as the primary distribution channel in that market. Similar establishments operate all over Barcelona, as well. Legal social clubs seem to be a popular proposition for adult-use markets by new European governments. 

So, will U.S.-style dispensaries emerge supreme, or will social clubs be the dominant adult-use retail model?

North American Dispensary Models Can Crush Diverse Market Activity

If you have been watching U.S. and Canadian markets, the somewhat oligopolistic dispensary system is the currently accepted framework for retail business development. 

In the U.S., some state licensing systems have faced allegations of underhanded dealings and nepotistic hiring practices, with lawsuits in Illinois and Massachusetts bringing infamy to the same state markets with some of the most progressive social equity licensing programs in the country. U.S. social clubs (often referred to as on-site consumption lounge in some early-adopting states) have yet to take off, and rules currently in development in states like Nevada will need to be carefully crafted so as not to exclusively benefit only a few currently licensed dispensary owners. 

The Canadian market is mostly dominated by the largest corporations. Compare this to Europe, wherein the Netherlands owners of mom-and-pop coffee shops make a modest living creating a warm and safe consumption environment. Barcelona follows a similar path with local club members having a safe environment to consume cannabis, albeit in the regulatorily ambiguous environment of Spain. 

Three weeks of debating medical cannabis legalization culminated in the South Carolina Senate voting to approve a bill the author has dubbed as the most conservative in the nation.

The Senate voted, 28-15, on Feb. 9 to approve the SC Compassion Care Act on a second reading (passing it for all intents and purposes), before the legislation officially cleared the chamber via a third reading Feb. 10. It now heads to the House for consideration.

Debate on the legislation began Jan.  26 on the Senate floor, more than seven years after Sen. Tom Davis, a Beaufort Republican, started crafting legislation and advocating for a medical cannabis program.

“What I’m trying to do is let doctors do what they think is in their patient’s best interest. What is so radical about that?” Davis said on Jan. 26, before the debate extended to several more floor sessions. “What’s radical is, is that we’re letting law enforcement and politicians tell doctors what’s in their patient’s best interest. That’s what’s ludicrous!”

Through the past three weeks, Davis has continually advertised the legislation as one that would legalize the most conservative medical cannabis program in the country.

Specifically, the bill includes 13 qualifying conditions, with tight definitions of those conditions, and would require doctors to have in-person relationships with patients, run background checks for a history of substance abuse, and create written treatment plans. In addition, smoking cannabis as a method for use would be banned under the legislation.

DENVER, Feb. 10, 2022 /CNW/ - PRESS RELEASE - Schwazze, has announced that it has closed the transaction to acquire MCG, LLC (Emerald Fields). Emerald Fields is the owner and operator of two retail cannabis dispensaries, located in Manitou Springs and Glendale, Colo. This successful acquisition is part of the company's ongoing retail expansion plan in Colorado and New Mexico, bringing the total number of dispensaries the company operates to 32.

Editor’s Note: Los Angeles-based Sixty Four & Hope represents one of the earliest operating social equity cannabis businesses. What follows is a reflective discussion between Aja Allen, owner-operator of Sixty Four & Hope’s Mid-City location, and Rhavin L, owner-operator of Sixty Four & Hope’s Melrose District location.

Aja Allen: We started our social equity journey three years ago. When I first heard about social equity, I thought it was just about money—righting the wrongs of the war on drugs, pseudo reparations. But when I dug deeper, I realized it was about more than money.

Along with roughly 700 other people from South LA, Rhavin and I attended an information session hosted by our now parent company, 4thMVMT. The company's CEO, Karim Webb, explained the program to us and laid out the opportunity social equity provided and what it could mean for our community.

Not only was this an opportunity for us to become entrepreneurs, but it was fair. It was moral. It was integrity. The potential income of owning our own business could change the trajectory of our lives and the lives of our family and community. But it's so much more than just money. I had heard of Karim through his work with the California Community Foundation and his Buffalo Wild Wings. It was the first sports bar we've ever had at Crenshaw and MLK Blvd., which was a big deal for our community. So instantly, I was comfortable; it felt right. Social equity, for me, is fairness. It's equality; it's all of it. And I knew this was something I wanted to be involved in.

Rhavin L: Yeah, I felt the same way. I didn't know Aja at the time, but I knew a few other people who attended the information session. I have always been a smoker, but it was about starting a business for me. It was about being able to support my family, and to help my community and relatives locked up for something as small as an eighth. It's ridiculous, especially when you have large multi-state operators making millions while people remain in jail. I've always wanted to live that saying, “be the change you want to see in the world,” and this is one way I can do that. It's important that I am contributing to the hope this industry provides.

In 2019, the U.S. Department of Justice (DOJ), led by former Attorney General William Barr, launched 10 Antitrust Division probes that involved cannabis companies, accounting for 29% of the total merger investigations that year.

In 2020, a DOJ whistleblower testified before the U.S. House Committee on the Judiciary that these investigations were not bona fide antitrust investigations, as they did not meet the standard internal requirements for proceeding with a Second Request subpoena, which the DOJ must file to formally object to a merger.

Instead, John Elias, a career employee at the DOJ, alleged that Barr was motivated by his personal dislike of the cannabis industry when he launched the antitrust investigations.

RELATED: Whistleblower Alleges that U.S. Attorney General William Barr Launched Unfounded Antitrust Investigations into Cannabis Mergers

Now, as reports surface that President Joe Biden’s administration will pay more attention to antitrust concerns, particularly in the tech and media spaces, some cannabis industry stakeholders may be wondering whether the increased scrutiny will again land on their operations.

LAS VEGAS – Feb. 9, 2022 – PRESS RELEASE – Nevada’s oldest and largest cannabis trade association, the Nevada Cannabis Association (NCA), previously the Nevada Dispensary Association, has named Brandon Wiegand as its new president. 

Wiegand, chief commercial officer for the Nevada-based cannabis operator The Source+, has been a member of the NCA since 2015 and has served as a board member since 2019. Established in 2015, The Source+ is a vertically integrated business with four dispensaries across Nevada, in addition to manufacturing, cultivation and production operations. Born and raised in Las Vegas, Wiegand has extensive leadership experience in the state’s cannabis industry. Wiegand assumes the role of president after the NCA’s previous president, Tisha Black, stepped down to run for Nevada attorney general. 

“We are grateful for Tisha’s service to the NCA and her leadership in the cannabis industry,” said Wiegand. “I am looking forward to building on the NCA’s current momentum. We are adding new members and voices to the association, increasing educational and compliance resources for the industry, and advancing policies at the federal, state, and local level to help cannabis businesses stabilize and grow."

Created in 2014, the NCA recently expanded its membership beyond dispensaries to include cultivation, production and distribution licensees, independent testing laboratories, and affiliated cannabis businesses across Nevada. The NCA supports cannabis companies through four channels: government affairs and lobbying, education and compliance resources, networking events, and exclusive business partnerships.

The cannabinoid craze continues as HHC, chemically known as hexahydrocannabinol, has hit the scene as one of the latest hemp-derived newcomers.

Like delta-8 THC, delta-10 THC, and other related cannabinoids, many questions revolve around what HHC is, its legal status, where it comes from, and more.

While HHC seems to be emerging into the spotlight recently, it’s not exactly new.

The semi-synthetic compound was first discovered in the 1940s by a chemist named Roger Adams through a process called hydrogenation. Adams added two hydrogen molecules to delta-9 THC, the primary psychoactive compound found in cannabis, to convert THC to HHC, Way of Leaf reports.

While Adams synthesized HHC from cannabis-derived THC, today, it can also be converted from hemp-derived cannabinoids such as delta-8, according to Roger Brown, the president and founder of ACS Laboratory, a cannabis, hemp, and CBD testing laboratory in Florida.

How is HHC Made? Hydrogenation Explained.

Studies have found HHC is naturally occurring in cannabis, but only in trace amounts. Therefore, all HHC on the market is currently derived through THC conversion.

Colorado legalized medical cannabis in 2000 and adult-use in 2012, but employers can still deny employment to or fire workers due to their off-the-clock cannabis use.

New legislation in the statehouse aims to remedy this, according to The Colorado Sun.

House Bill 1152, sponsored by Reps. Edie Hooton and Brianna Titone, would bar employers from firing employees for cannabis use, as well as require employers to let their workers consume medical cannabis on the job.

Workers whose jobs are in dangerous fields or require the use of heavy machinery would be exempted from the law, The Colorado Sun reported.

“Marijuana is legal in Colorado,” Titone told the news outlet. “And what people do in their spare time that doesn’t impact their work shouldn’t really be a problem for them. They should be able to enjoy the legal things that we have here in Colorado and not be penalized for it.”

The Utah Cannabinoid Product Board has taken a stance against delta-8 THC after patient advocates and some of the state’s pharmacists have been raising awareness about the potential health effects of medical cannabis products that contain the compound, according to a local KUER report.

“They still say it today that the delta-8 will help treat your symptoms without getting you high,” Mindy Madeo, a pharmacist at Beehive Farmacy in Brigham City, told the news outlet. “So, if you don't want to get high, you should use delta-8. But to me, that's a very dangerous statement for something that is psychoactive.”

The Utah Cannabinoid Product Board has heard from researchers and reviewed literature on delta-8, and board members voted unanimously Feb. 8 to take a stance against the compound, as well as other “analog cannabinoids,” according to KUER.

“At this time, there is no evidence of therapeutic benefit of the analog derived synthesized cannabinoids, [including] delta-8 THC,” Dr. Perry Fine, chair of the Utah Cannabinoid Product Board, told the news outlet. “Risks have been described by federal regulatory bodies and peer reviewed publications regarding delta-8 THC. At this time, we do not support any therapeutic uses of analog cannabis products.”

RELATED: Delta-8 THC Has ‘Serious Health Risks’ Warns Two Federal Agencies