MjLink Cannabis Business News and Press
Leaders in the Rhode Island House and Senate say they are very close to reintroducing legislation to legalize adult-use cannabis in the state, and that the issue has the support it needs to cross the finish line next year.
“We’re very close to being able to, in the month of January, release the framework of a bill that will begin a robust public hearing and vetting process,” House Speaker K. Joseph Sherkarchi (D-Warwick) told Providence Business News.
Senate Majority Leader Michael McCaffrey (D-Warwick) told the news outlet that lawmakers plan to introduce the legislation early in the 2022 legislative session and get a vote in both chambers by February.
“Once it goes through the hearing process, I think that it will pass in both chambers overwhelmingly,” McCaffrey told Providence Business News.
In early 2021, Rhode Island lawmakers unveiled a pair of adult-use cannabis legalization proposals, which both ultimately stalled.
DENVER, Colo. - December 22, 2021 - PRESS RELEASE - The Colorado Marijuana Enforcement Division (MED) released licensee demographic data for December 2021. The Division is committed to reporting information that allows the state and members of the public to understand the diversity landscape of Colorado’s Regulated Marijuana industry and measure progress on statewide social equity-related initiatives. Based on this data, minorities comprise 16.6% of owner licensees, an increase from the June 2021 baseline number of 15.2%. The following tables provide additional insights into the demographics of Colorado’s commercial marijuana industry.
Regulated Marijuana License Demographic Information - Dec. 1, 2021
MED’s Wildly Important Goal (WIG) FY 21-22: Promote equity, diversity, and inclusion in the marijuana industry, measured by an increase in minority-ownership of marijuana businesses from 15.2% to 16.8% by June 30, 2022.
As of Dec. 1, 2021, there are 46 approved Social Equity licensees (9 issued in November).
Dec. 1, 2021 Race/Ethnicity Data:
Employee Licenses: Approximately 45% or 19,164 Employee licenses did not disclose or their race/ethnicity is unknown. Owner Licenses: Approximately 12% or 230 Owner licenses did not disclose or their race/ethnicity is unknown. Employee Licenses: Those who disclosed their race/ethnicity as Caucasian held 66.7% of Employee licenses, compared to 6.2% who disclosed themselves as Black, and 17.0% for those who disclosed themselves as Hispanic/Latino.Owner Licenses: Those who disclosed themselves as Caucasian held 83.4% of owner licenses, compared to 2.8% for those who disclosed themselves as Black and 7.9% for Hispanic/Latino.Overall Individual License Data
Another dynamic year in the cannabis industry is coming to a close, and there’s certainly no shortage of themes and narratives and characters to look back on for a sense of all that’s happened. Here, the CBT editors provide some thoughts on their favorite stories of 2021.
North Carolina’s Compassionate Care Act, a medical cannabis legalization bill that stalled during this year’s legislative session, will likely resurface at the Statehouse next year, according to a Spectrum News 1 report.
The legislation, which is sponsored by Democratic State Sen. Paul Lowe and backed by Republican Sens. Bill Rabon and Michael Lee, would create a regulatory framework to allow doctors to recommend medical cannabis to patients with conditions including cancer, HIV/AIDS, post-traumatic stress disorder (PTSD), epilepsy, Crohn’s disease and sickle cell anemia.
Any patients in hospice care would also be eligible to access medical cannabis under the proposal, Spectrum News 1 reported.
The Compassionate Care Act would establish an advisory committee under the North Carolina Department of Health and Human Services, as well as a new commission, to oversee the state’s medical cannabis industry, according to the news outlet.
The new commission would then be charged with awarding 10 licenses to vertically integrated medical cannabis businesses, which could open up to four dispensaries each, Spectrum News 1 reported. The Compassionate Care Act would require each licensee to open at least one retail outlet in a Tier 1 county, the poorest counties in the state.
TALLAHASSEE, Fla., Dec. 21, 2021 /PRNewswire/ - PRESS RELEASE - Trulieve Cannabis Corp., a cannabis company in the United States, has opened its eighth medical cannabis dispensary in the Tampa area. The Tampa-Fairgrounds Trulieve, located at 7702 E. Hillsborough Avenue near the intersection of I-4 and I-75, begins serving patients at 9 a.m. on Tuesday, Dec. 21.
There will be deals and specials throughout opening day, including a 25% discount for all registered patients at the Tampa-Fairgrounds location. Grand opening festivities will include St. Petersburg-based Craft Tee custom t-shirt printing, music, and numerous partner giveaways. As always, all first-time guests are eligible for a 50% new customer discount at any Florida-based location. Trulieve also offers statewide home delivery, convenient online ordering, and in-store pickup.
Statewide on Tuesday, Dec. 21, Trulieve will continue its 12 Days of Cannabis promotion with the launch of the TruChocolate Dark Chocolate Cranberry and special one-day deals on brand partner, Bhang's dark and milk chocolate edibles.
As the state's leading medical cannabis provider, Trulieve's retail employees are trained to provide personalized patient care and support individuals at every stage of their cannabis journey. Trulieve dispensaries throughout Florida offer on-site consultations to help patients obtain appropriate medical products and dosages to ensure optimal cannabis experiences.
"Trulieve is excited to expand access to medical cannabis in Tampa and to continue building strong relationships in the community," said Kim Rivers, CEO of Trulieve. "Our company is driven by our commitment to providing tailored, high-quality patient care to as many patients as possible."
LAS VEGAS, NV / ACCESSWIRE / December 20, 2021 / PRESS RELEASE / Planet 13 Holdings Inc. and Next Green Wave Holdings Inc. have announced that they have entered into a definitive arrangement agreement (the "Agreement") pursuant to which Planet 13 will acquire all of the issued and outstanding common shares (the "NGW Shares") of NGW, by way of a court approved plan of arrangement, for total consideration of approximately C$91 million (the "Transaction").
Proposed Transaction
Under the terms of the Agreement and based on pricing as of Dec. 17, 2021, shareholders of Next Green Wave ("NGW Shareholders") will receive 0.1081 of a common share of Planet 13 (the "Exchange Ratio") subject to calculations as described below, and $0.0001 in cash, for each NGW Share held. Based on Planet 13's 10-day volume weighted average price ("VWAP") and the Exchange Ratio as at Dec. 17, 2021, the implied deal price per NGW Share is C$0.465, representing a premium of approximately 52% to the closing price and 44% to the 10-day VWAP of NGW Shares on the Canadian Securities Exchange (the "CSE") as of Dec. 17, 2021. The Exchange Ratio is subject to adjustment as follows:
If the 10-day VWAP of Planet 13 common shares (the "Planet 13 Shares") on the CSE immediately preceding the second business day prior to the closing of the Transaction (the "Planet 13 Closing Price") is below C$5.50 but above C$4.06, then the Exchange Ratio will be calculated as C$0.4650 divided by the Planet 13 Closing Price;If the Planet 13 Closing Price is less than or equal to C$4.06, then the Exchange Ratio shall be 0.1145; andIf the Planet 13 Closing Price is greater than or equal to C$5.50, then the Exchange Ratio shall be 0.0845.After giving effect to the Transaction, and based on pricing as of Dec. 17, 2021, NGW Shareholders will hold approximately 9.2% ownership in the pro-forma company (on a fully-diluted basis).
Transaction Rationale
DENVER, Dec. 21, 2021 /CNW/ - PRESS RELEASE - Schwazze has announced that it has closed the acquisition of the assets of Smoking Gun, LLC and Smoking Gun Land Company, LLC. Total consideration for the acquisition was $4 million in cash and 100,000 shares of Schwazze common stock upon closing.
The Smoking Gun dispensary and assets are located on a prime retail corner on Colorado Blvd. in Glendale, Colo., in the center of the greater Denver metro area. This acquisition is part of the company's continuing retail expansion plan in Colorado, and including the recently announced planned acquisitions in New Mexico (December 3, 2021), brings the total number of dispensaries to 32.
Since April 2020, Schwazze acquired or announced the planned acquisition of 32 cannabis dispensaries, including the ten R. Greenleaf New Mexico dispensaries. In 2021, the company also acquired or announced the planned acquisition of seven cultivation facilities, three in Colorado - SCG Holding LLC, Brow 2 LLC and Star Buds - and four licensed in New Mexico. The New Mexico acquisition will also add a manufacturing asset, Elemental Kitchen & Laboratories, LLC, to the company's manufacturing plant, Purplebee's in Colorado. In May 2021, Schwazze announced its BioSciences division and in August 2021 it commenced home delivery services in Colorado.
]]>VANCOUVER,Wash., Dec. 22, 2021 – PRESS RELEASE – The Hawthorne Gardening Company, a whollyowned subsidiary of The Scotts Miracle-Gro Company, has announced the securingof multiple patents related to the design and functionality of the Gavita CT1930e LED light.
TheGavita CT 1930e includes innovative state-of-the-art technology that is coveredby various U.S. and international design and utility patents and patentapplications, positioning the product’s optics, design and unique constructionamong industry leaders. The novel technology package of the Gavita CT 1930ebrings unique benefits to growers of all sizes and a new level of performancefor LED fixtures.
“The issuance of these patents is a testament to the revolutionary design andperformance of the Gavita CT 1930e,” said Chris Hagedorn, president, HawthorneGardening Company. “Beyond providing cultivators with a highly energy efficientLED with proven growing power, this further demonstrates Hawthorne’s commitmentto leverage our R&D, technical services and distribution capabilities tohelp growers achieve short- and long-term success.”
TheGavita CT 1930e was introduced in 2020 and is among Hawthorne’s—as well asScottsMiracle-Gro’s—most successful product launches ever. It is the first andonly LED fixture that is a direct 1:1 replacement for HPS fixtures.Compatibility with wiring and electrical requirements for most indoor growingenvironments means this compact toplight can dramatically limit the cost anddowntime required to convert facilities of every size. The CT 1930e alsodelivers more uniform, full-spectrum light at up to 20% energy savings thansingle-ended HPS fixtures (based on average wattage of each fixture). The CT1930e is Design Light Consortium (DLC) certified and can qualify for additionalsavings through local energy rebates (region dependent).
Also,patent-pending controller technology embedded within each Gavita CT 1930eenables control of up to 2,000 fixtures per EL Series Master Control channeland helps maintain unwavering output from light to light. These productinnovations seamlessly combine together, and with other Hawthorne offerings, todeliver an unrivaled high-performance technology solution for high-performanceenvironments. For more information on the Gavita CT 1930e and other Hawthornesolutions, visit https://www.hawthornegc.com/.
]]>For a cannabis business operator who is trying to comply with strict state-by-state regulations in a federally illegal industry, the page speed of the company’s website may not be top of mind.
However, according to Dan Serard, director of business development for Cannabis Creative Group, a cannabis-specific marketing agency, page speed is one of the most important aspects of search engine optimization (SEO) and could help set your company apart from your competitors.
RELATED: Social Media and the Cannabis Industry: Tips and Lessons Learned
“When you think about it from a very high level, essentially, if your competitor’s website is loading faster than yours, then they’ll outrank you,” he tells Cannabis Business Times and Cannabis Dispensary. “Page speed is an important factor. … It really impacts your organic presence because if you have a faster page speed, then you have a better user experience and your content’s going to be up quicker, consumers are going to see your information quicker, and if it’s good for the user, then it’s good for the search engine.”
Here, Serard offers five tips to optimize page speed.
Each year since 2016, Cannabis Business Times has published its “State of the Cannabis Cultivation Industry” report, based on third-party research that tracks changes and trends occurring among cannabis cultivation businesses throughout North America. The 2021 “State of the Cannabis Cultivation Industry” report revealed key findings worth noting as you head into the new year.
1. More larger cultivators and more smaller cultivators.
With the proliferation of multistate operators (MSO’s) and continued emergence of larger cannabis enterprises in the market, it’s not surprising that the number of cultivators with 80,000 square feet or more of cannabis production space has increased over the past 5 years; that number climbed 11 percentage points, from 7% in 2016 to 18% in 2021. The number of cultivators with 50,000-79,999 square feet of cannabis production space also grew 4 percentage points from 3% in 2016 to 7% in 2021.
At the same time, the number of cultivators whose production areas spanned less than 5,000 square feet increased by 5 percentage points--from 34% in 2016 to 39% in 2021.
2. Small growers continue to dominate the industry.
Despite the greater increase in the number of larger cultivators compared to the rise in smaller cultivators, small cultivators continue to comprise the lion’s share of the North American cannabis marketplace. Nearly 40% of cultivators reported cannabis production areas of less than 5,000 square feet. Less than 20% reported cultivation production spaces of 80,000 square feet or more.
Branding agency Zero has teamed up with Dosist and Sunday Goods to develop a new suite of product lines for the Arizona cannabis market—dubbed Studio. The core idea is to use engaging design to capture the attention of specific segments of the growing consumer base.
Mark Goldwell, Zero co-founder and creative director, points to Dosist and Sunday Goods’ teams as being very tuned into the power of communicating with people through brand opportunities. This is a strategic pillar of the cannabis business, and it’s not something to overlook.
The brand lineup includes: Melted, Plant Based, Human Resources, Tell Your Friends, and Session, with each product line appealing to a specific type of consumer and a specific lifestyle (and bearing a design scheme that conveys such a message).
Studio is launching Melted first, directed at the experienced user. For them, cannabis is a major part of their personal identity in most cases. It’s a chance to develop a brand niche that doesn’t shy away from stoner imagery or cultural resonance. Bold graphics and stark, psychedelic black-and-white patterns help tell this story.
“This is for your everyday user,” Goldwell says. “This is for folks that are into tastes, strains, innovation, potency, those sorts of pieces. Coming out the gate with Melted, I think, was really wise, and it's doing really, really well. It feels very different than anything that's in the market, especially in Arizona from a brand standpoint. We’re going to be quickly following up in 2022 with a number of other brands that are different in their emotional value proposition and in how the brand looks and feels.”
TerraLeaf, a Pennsylvania-based, women-owned cannabis operator, has expanded to West Virginia to open a new Education Center in Huntington, W. Va, that will provide cannabis education to the company’s employees and the broader community.
The 5,000-square-foot Education Center held a VIP ribbon cutting ceremony Dec. 6 ahead of its Dec. 7 open house and grand opening to the public. It is located next door to TerraLeaf’s medical cannabis dispensary, which has been deemed operational by the state, but currently has no products for sale as the company waits for West Virginia’s growers to have cannabis available for wholesale.
“As you know, there’s a tremendous stigma about the use of cannabis, so our goal when we go into a community is to educate, educate, educate,” TerraLeaf founder Chris Visco told Cannabis Business Times and Cannabis Dispensary. “We teach people about the plant.”
TerraLeaf opened its first cannabis Education Center in Pennsylvania, where the company holds two medical cannabis licenses and currently operates three dispensaries. TerraLeaf has 45,000 unique patients across its three locations, Visco said, and the company built an Education Center when it expanded its corporate offices.
“It’s really important in each community to go first talk to the local elected officials, talk to the police department, talk to the fire department,” Visco said. “They’re all invited into our Education Center any time they would like to come.”
While Pfizer Inc. has become ubiquitous among those receiving COVID-19 vaccines, the American multinational pharmaceutical and biotechnology company is now betting on the cannabis industry.
Last week, Pfizer announced it entered into a definitive agreement to acquire clinical-stage company Arena Pharmaceuticals Inc. to the tune of $6.7 billion, with a transaction valued at $100 per Arena share in cash.
The press release for the proposed transaction omits any direct mention of Arena’s ties to the medical cannabis industry, but that pipeline is connected to cannabinoid therapeutics with an aim to help treat bowel disease, as reported by Forbes.
According to Arena’s website, Olorinab is a drug candidate for the treatment of pain and is a “full agonist of the cannabinoid Type 2 receptor (CB2).” CB2 is an endocannabinoid receptor predominately associated with immune system responses. Among its active ingredients Olorinab includes the drug SR144528, which has been used to study the function of the CB2 receptor.
RELATED: CBG: A New(er) Option for Cancer Treatment?
Arena’s initial focus for Olorinab is on treating visceral pain associated with gastrointestinal disorders. An oral form of Olorinab is currently in a Phase 2 clinical trial evaluating its efficacy and safety in patients experiencing abdominal pain associated with irritable bowel syndrome, according to the company website.
Missouri’s medical cannabis sales have reached $200 million since the state launched its first sales in October 2020, according to a press release.
More than 300 medical cannabis cultivators, manufacturers, testing labs, transporters, retailers and seed-to-sale providers are currently operating in the state, according to the press release.
RELATED: Missouri Medical Cannabis Program Adds Some 56,000 New Patients in Second Year
“Nearly every facility who was part of the initial round of licensing is now up and running and providing beneficial products and service to the patients of Missouri,” said Lyndall Fraker, Director of the Section for Medical Marijuana Regulation, in a public statement. “We are proud of the tenacity shown by both our regulatory team and all of the facility operators who were able to clear so many hurdles that COVID-19 presented during a critical time.”
There are currently 158,169 patients and 3,283 caregivers registered in Missouri’s medical cannabis program, according to the press release.
The New Jersey Cannabis Regulatory Commission (CRC) began accepting applications for adult-use cultivation, manufacturing and testing licenses Dec. 15, with plans to start accepting applications for retail licenses March 15.
The online application portal went live at 9 a.m. last Wednesday, according to an NJ.com report.
“We are happy to reach this milestone,” CRC Executive Director Jeff Brown said in a statement to the news outlet. “Applications are coming in, the platform is performing well, and we can officially mark the launch of the state’s recreational cannabis industry.”
RELATED: New Jersey Adult-Use Cannabis Applications Set to Begin in December
Applications will be accepted on a continuous basis and there are no deadlines for entrepreneurs to apply for licenses, NJ.com reported.
Curaleaf Holdings, a vertically integrated multistate cannabis [and CBD] operator, is likely to face a wrongful death lawsuit, the latest in a string of lawsuits related to mislabeled products.
Curaleaf is currently facing 10 lawsuits from consumers who allegedly ingested an incorrectly labeled CBD tincture that contained "undisclosed levels of THC," according to a product recall notice issued by the Oregon Liquor and Cannabis Commission (OLCC).
The recall was issued Sept. 21 for a single batch of the mislabeled CBD product, which was produced by Cura CS LLC and sold under Curaleaf's Select brand. Curaleaf acquired Cura and its Select brand in 2019 in a $948.8-million all-stock deal.
Peter Clateman, Curaleaf chief legal officer, tells Cannabis Business Times and Hemp Grower that about 500 bottles from the batch were sold.
The OLCC expanded the recall Sept. 24 to include another Select tincture that said it contained 1,000 mg of THC on the label, but after a round of preliminary tests, the OLCC found that the product did not contain any detectable THC. According to OLCC, Curaleaf sold an estimated 630 units of the mislabeled tincture.
Curaleaf acknowledged the mislabeling of the two tinctures was caused by "human error."
CHICAGO – December 16, 2021 — PRESS RELEASE — Cresco Labs, a vertically integrated multistate operator, today unveiled plans for its new Illinois Cannabis Education Center (ICEC), the first business incubator and workforce development center created by a cannabis company. The ICEC will expand the ongoing work facilitated by the Company’s SEEDTM (Social Equity & Educational Development) initiative. In partnership with educational institutions, workforce development organizations and business associations, it will provide immersive education and hands-on training in a functioning dispensary for social equity licensees, minority-owned ancillary businesses, students and members of communities adversely impacted by the war on drugs.
Deputy Mayor Samir Mayekar, Illinois State Reps. Edgar Gonzalez, Eva Dina Delgado, Margaret Croke and La Shawn Ford, and Alderman Rod Sawyer joined Cresco Labs executives and staff for an unveiling event of the ICEC today.
“Despite delays in federal legalization, we embrace our responsibility to help make this industry more inclusive and to provide tangible pathways to business opportunity and employment for people from communities disproportionality impacted by the War on Drugs,” said Charlie Bachtell, Cresco Labs’ CEO & Co-founder. “The mission and goals for the Illinois Cannabis Education Center align with Cresco Labs’ values of social equity, social justice and inclusivity, which are critical for the development of a responsible industry, which creates respectable industry and will make cannabis the most robust industry possible.”
The ICEC will be a welcoming and community-focused destination, offering annual programming that aligns with SEED’s pillars:
Education & Workforce Development: The ICEC will collaborate with Illinois colleges and universities to provide cannabis curriculum for students, entrepreneurs and community members predominantly from historically marginalized communities. Participants will receive hands-on trainings focused on compliance, security, technology and daily operations in a formerly operational, fully functioning dispensary to understand all aspects of cannabis retail. The ICEC will also serve as a community recruitment center providing resources for employment at Cresco Labs and other Illinois-based cannabis companies.
Restorative Justice: The ICEC will serve as a venue for community and restorative justice-oriented events, such as expungement events.
“We believe the ICEC’s community-based approach to engagement will provide every participant with the knowledge, skills and ongoing support they need to realize their potential in the cannabis industry,” said Chima Enyia, EVP of SEED at Cresco Labs. “The ICEC is a first-of-its-kind cannabis education center—the only place in Illinois where new licensees can get real-world, on-the-job trainings in a dispensary to learn operations and train staff. It will nurture the ambitions of students so they so they can make informed decisions about their future and the careers they might choose to pursue in cannabis. Through integrating the opinions and ideas of every participant, coupled with leveraging our collective resources and networks to support our communities throughout Illinois, we look forward to engaging with community partners in the opening of this center. This is just the unveiling—the real work begins now.”
The ICEC will open early 2022 at 3812 N Clark St. in Chicago. For more information about Cresco Labs’ SEED initiative, visit crescolabs.com/seed.
]]>Columbus, OH – PRESS RELEASE – The Coalition to Regulate Marijuana Like Alcohol submitted 206,943 signatures in support of an initiated statute legalizing the adult use of marijuana to the Ohio Secretary of State’s office today.
The Secretary of State, in coordination with county-level Boards of Elections, will now begin the process of verifying the signatures. If at least 132,877 signatures are verified and the 44 county requirement is met, the statute will be presented to Ohio legislators for consideration.
“The success of our petition drive shows just how eager Ohioans are to end prohibition and legalize the adult use of marijuana,” said spokesman Tom Haren. “We look forward to receiving the results of the Secretary of State’s review, and are eager to begin working with legislators on this important issue.”
For consumers, the proposed law:
Legalizes and regulates the cultivation, manufacture, testing, and sale of marijuana and marijuana products to adults aged 21 and up. Legalizes home grow for adults aged 21 or older with a limit of 6 plants per person and 12 plants per household.Haren believes everyone should support the robust regulatory and taxation system. While regular state and local sales taxes will also apply, included is a 10% cannabis tax rate on adult use sales that would be allocated as follows:
2021 was another year of growth—and challenges—for the cannabis industry.
Connecticut, New Mexico, New York and Virginia legalized adult-use this year, while states that legalized in the 2020 election—including Arizona, Montana and New Jersey—established regulatory frameworks for their adult-use programs.
Delta-8 THC caught the industry’s attention as several states moved to regulate or ban the compound, and Texas drew particular scrutiny after the Department of State Health Services moved to ban the production and sale of delta-8 in October.
Access to banking remained one of the biggest obstacles for cannabis businesses, with federal legislators removing the latest iteration of the Secure and Fair Enforcement (SAFE) Banking Act from a national defense spending bill in early December.
As we look toward 2022 and the continued evolution of these and other industry issues, we reflect on Cannabis Business Times’ top 10 most popular articles of 2021.
WASHINGTON, Dec. 15, 2021 – PRESS RELEASE – The Marijuana Policy Project announced that Toi Hutchinson will join the organization as its new president and CEO. Hutchinson, a former Illinois state senator, most recently served as senior adviser to Illinois Gov. J.B. Pritzker on cannabis legalization implementation.
For the past year, MPP Executive Director Steven Hawkins has led both MPP and the United States Cannabis Council (USCC). Hawkins will now exclusively focus his efforts on federal cannabis reform at USCC. MPP will remain a member of USCC and continue to share staff, board members and resources.
“Toi’s unique resume is perfectly suited to lead MPP as we finish our reform work state-by-state across the country,” MPP Board Chairman Sal Pace said. “Toi worked alongside MPP as one of the initial authors of the Illinois adult-use cannabis legislation to ensure that the law contained a strong social justice framework that included decriminalization in addition to legalization. MPP has always been focused not only on legalization but also on doing it right and ending the war on drugs.”
“I am proud of what we have accomplished at MPP and look forward to working alongside Toi in the fight to end cannabis prohibition,” said Hawkins, president and CEO of USCC. “MPP played a pivotal role in incubating USCC, and we are now taking that work to the next level. Toi is an incredible leader, and I know that our organizations will work tirelessly to advance our shared goals.”
“The MPP Board is thrilled with the work Steve accomplished during his four-year tenure. These past four years have been the most productive years yet for marijuana reform. MPP will continue to work with Steve as a member organization of USCC, including continuing to share some staff between the two organizations,” Pace said.
