MjLink Cannabis Business News and Press
The following statement was issued by the CEOs of Akerna, Anacostia Organics, Bridge City Collective, Canopy Growth, Central Coast Agriculture, Columbia Care, Cresco Labs, Cronos Group, Curaleaf, Flower One, Flowhub, Forian, Holistic Industries, HOUSEPLANT, NuProject, PAX Labs, PharmaCann, Schwazze, TGIG and Wana Brands, which are members of the U.S. Cannabis Council:
“We are leaders in America's rapidly-growing regulated cannabis industry. With over 300,000 employees and $18 billion in revenue last year, our industry generates substantial local and state tax revenue and fuels economic growth. It is frankly unconscionable that countless Americans are in prison or struggling to overcome criminal records because they bought or sold the product at the very core of our business.
“Advocates for cannabis reform cheered when President Biden pledged on the campaign trail to decriminalize cannabis and grant a blanket pardon. 'Anyone who has a record should be let out of jail, their records expunged,' he pledged. We are now many months into the Biden presidency, and there has been no action on this front.
“Cannabis prohibition has negatively impacted millions of Americans -- Black Americans most severely of all. Ending cannabis prohibition and expunging records for non-violent offenses is vital to criminal justice reform and racial equity. What's more, over two-thirds of Americans support legalization, and 36 states have legalized medical and/or adult-use cannabis. Cannabis should be a signature issue for a president looking to unite the nation, strengthen the economy and address historic wrongs.
“As leaders in the cannabis industry, we urgently call on President Biden to meet this historic moment by issuing a blanket pardon for non-violent cannabis offenses. We stand ready to meet with the Administration and work together with Congress to advance a broad range of criminal justice and social equity initiatives as we bring a close to the cannabis prohibition era.”
The statement was signed by the following cannabis industry CEOs (alphabetical by last name):
David Alport, CEO of Bridge City CollectiveCharlie Bachtell, CEO of Cresco LabsDan Barton, CEO of Forian, Inc.Joe Bayern, CEO of CuraleafJessica Billingsley, CEO of AkernaAdam Cahan, CEO of PAX LabsJohn De Friel, CEO of Central Coast AgricultureJustin Dye, CEO of SchwazzeJosh Genderson, CEO of Holistic IndustriesLinda Mercado Greene, CEO of Anacostia OrganicsJeannette Ward Horton, CEO of NuProjectDavid Klein, CEO of Canopy GrowthDemetri Kouretas, CEO of TGIG, LLCMikey Mohr, CEO of HOUSEPLANTBrett Novey, CEO of PharmaCann Inc.Kellen O'Keefe, CEO of Flower OneKurt Schmidt, CEO of Cronos GroupKyle Sherman, CEO of FlowhubNick Vita, CEO of Columbia CareNancy Whiteman, CEO of Wana Brands]]>The financing constraints that many cannabis operators face are a familiar story. Much revolves around impediments from lack of legalization at the federal level; however, other traditional drivers play a role as well, including industry and business life cycles. In recent months, the convergence of a number of factors, including increasing amount of capital providers, stronger credits and a low interest rate environment, has resulted in an emergence of debt financings and, in some cases, lower borrowing costs for operators.
Recent Cannabis Debt Financings
Over the last six to eight months, some larger multi-state operators have benefited from lower interest rates, achieving attractive financings with a sub-10% interest rate. For example, Green Thumb Industries announced a senior debt financing on April 30, 2021, where the company was able to refinance existing senior secured debt with a $217-million senior private placement at a 7.0% interest rate. Most recently, Ascend Wellness closed a $210 million Senior Secured Term Loan at 9.5% on August 30, 2021.
While these rates indicate an attractive progression in debt pricing and availability to the sector, they are not achievable for all operators due to various factors including credit size, potential collateral, credit quality, revenue concentration, profitability levels, capex requirements, among others. Borrowing costs have come down significantly, yet despite some recent exceptions, rates still range between 12-20%. The main factors influencing the rate cannabis companies can get are credit size and potential collateral.
Why have rates come down?
Many perceive that the U.S. is inching toward legalization, providing lenders comfort in business model as compared to previous years.
Eaze, a cannabis delivery service, is expanding to Detroit, Mich., through a partnership with Pleasantrees, a Michigan-based cannabis company.
Eaze now offers its delivery services in three of the 10 largest Michigan cities: Detroit, Grand Rapids and Ann Arbor—two cities the company expanded to earlier this year, according to the Detroit Free Press.
The recent expansion "allows customers to find their favorite, and try, new products from the comfort of home," Rogelio Choy, Eaze CEO, told the Detroit Free Press. "We believe delivery is going to be a huge part of the Michigan success story."
Choy told the news outlet that the last 18 months have shown how cannabis delivery services are a fast-growing part of the industry and are "here to stay."
"If we're going to be successful in Michigan, we have to be successful in Detroit," Choy said.
While there are other cannabis delivery services in Detroit like Latern and Breeze, Choy told Detroit Free Press that Eaze's low prices and deals are what sets it apart from the rest.
Wisconsin lawmakers are making a bipartisan push for cannabis decriminalization.
Rep. Shae Sortwell (R-Gibson), Rep. Sylvia Ortiz-Valez (D-Milwaukee), Sen. Lena Taylor (D-Milwaukee) and Sen. Kathleen Bernier (R-Chippewa Falls) have introduced legislation to reduce the state’s existing penalties for cannabis possession, according to the Wisconsin Examiner.
Under current law, cannabis possession is punishable with a felony charge, a $1,000 fine and up to six months of jail time, the news outlet reported.
The new legislation would reduce the fine to a $100 civil forfeiture for the possession of 114 grams or less, and instances of possession involving 28 grams of cannabis or less would not count as a repeat offense, according to the Wisconsin Examiner.
Law enforcement has conducted an average of 15,485 arrests per year since 2010 for cannabis possession, the news outlet reported, and the proposed bill includes provisions that would streamline the booking process for law enforcement and courts to “save time, money, and resources.”
Medical cannabis sales in Arkansas have reached $447 million since the state’s first dispensary opened in May 2019, according to a KUAR report.
Arkansas’ retailers have sold 66,994 total pounds of medical cannabis since sales launched, the news outlet reported, generating just under $45 million in tax revenue for the state. Most of the tax revenue is earmarked for the University of Arkansas for Medical Sciences National Cancer Designation Trust Fund, according to KUAR.
Data from the Arkansas Department of Finance revealed that the state’s 37 operating dispensaries sold 3,527 pounds of medical cannabis in October.
Voters approved medical cannabis legalization in 2016 and there are currently 78,585 registered medical cannabis patients in the state, KUAR reported.
In a new twist on the interstate pressures of adjacent cannabis markets, the Connecticut attorney general is irked over what he sees as advertising encroachment over the state line. Massachusetts cannabis companies have purchased billboard space along highways that run through Connecticut; citing his state’s laws on the matter, Connecticut Attorney General William Tong wants the ads taken down.
Under the provisions of its new adult-use law, Connecticut allows cannabis businesses to advertise only when the target audience is made up of at least 90% adults 21 and older. On the freeway, that’s pretty much out of the question.
On top of that, Tong has asserted that these billboards may violate federal law by encourage interstate transport of cannabis products.
One business owner has no plans to accede.
“I believe that this is too far reaching of an insinuation that they have made against our company and other advertisers, against marketing firms and against the other folks who have also gotten those letters,” Erik Williams, chief operating officer of Canna Provisions in Holyoke, Mass., told WGGB.
]]>Connecticut has selected Forian Inc.’s BioTrack technology as its seed-to-sale tracking software as the state rolls out its adult-use cannabis program.
The state’s Department of Consumer Protection Drug Control Division will use the tracking system to monitor the movement of cannabis products in both the medical and adult-use markets, according to a Yahoo! Finance report.
“Connecticut has shown their desire to be at the forefront of cannabis by looking for best-in-class software solutions,” BioTrack Vice President Moe Afaneh told the news outlet. “We are very excited to work with the state to develop new technologies to support their cannabis-related initiatives.”
BioTrack’s software will track cannabis across the supply chain, from when it is planted as a seed to the point of sale in Connecticut’s dispensaries, the news outlet reported. The tracking system will also provide a real-time inventory of cannabis products that are available in the state to help prevent the diversion of products to the illicit market.
TORONTO, November 16, 2021 - PRESS RELEASE - TerrAscend Corp., a global cannabis company licensed for sales in Canada, the U.S. and the E.U., announced that its wholly-owned subsidiary has acquired a commercial property located at 273 East Memorial Blvd., Hagerstown, Md., (Hagerstown Facility), for a purchase price of approximately $2.8 million, plus certain costs and expenses from GB&J's LLC.
TerrAscend currently produces and sells dried flower and oil products for the Maryland wholesale medical cannabis market from its existing 22,000-square-foot cultivation and processing facility in Frederick, Md. The company has already received regulatory approval for the planned relocation of its cultivation operations to the 156,000-square-foot Hagerstown Facility and expects to relocate and commence operations in Q1 2022.
"With adult-use legislation currently under review by the state, scaling our Maryland cultivation and processing capabilities will allow us to support this important and underserved market," said Jason Wild, TerrAscend executive chairman. "Our investment will improve patient and future consumer access to quality cannabis products, including our Kind Tree, Ilera and Prism brands, while we continue to pursue potential vertical integration opportunities in the state."
]]>BOCA RATON, Florida, November 17, 2021 — PRESS RELEASE — Jushi Holdings Inc. (Jushi), a vertically integrated, multi-state cannabis operator, announced that it has entered a definitive agreement to acquire NuLeaf, Inc., a Nevada-based vertically integrated operator, for total consideration of up to $62.5 million.
In addition to a 27,000-square-foot cultivation facility in Sparks, Nev., and a 13,000 square-foot processing facility in Reno, Nev., NuLeaf operates two adult-use and medical retail dispensaries. Additionally, NuLeaf owns a third licensed retail dispensary located directly on Las Vegas Boulevard: the Las Vegas Strip Dispensary, which is expected to become operational early next year, subject to regulatory approval and other conditions.
Upon completion of the acquisition of NuLeaf, and the previously announced Apothecarium Nevada acquisition, Jushi will grow its retail presence to four dispensaries in the $1 billion Nevada cannabis market, three of which are located in the Las Vegas area. The company will also bolster its existing cultivation and processing capabilities in the state with the addition of NuLeaf's high-quality facilities, providing a strategic entry point into the Nevada wholesale market.
"We are thrilled to enter into an agreement to acquire NuLeaf, a vertically integrated operator with the potential to significantly increase our presence in the Nevada retail and wholesale markets," said Jim Cacioppo, Jushi founder, chairman and CEO. "NuLeaf boasts a well-established retail network with top-quality, design-forward dispensaries in coveted high-traffic destination locations. In addition, NuLeaf's cultivation and processing assets are strongly aligned with our strategic expansion strategy in Nevada. This acquisition is expected to generate significant top-line growth and be immediately accretive, as well as increase market share of Jushi's best-in-class brands and establish a leadership position in one of the largest cannabis markets in the U.S."
Click here for the full press release.
WASHINGTON, D.C., November 17, 2021 - PRESS RELEASE - The District of Columbia Marijuana Justice (DCMJ) will present a carefully vetted amendment to the D.C. Council at a public hearing Friday. The amendment's focus is on opening D.C. farmers' markets to adult-use cannabis sales and licensing sales by D.C. craft cultivators and cottage industry entrepreneurs.
"Combining criminal justice reforms and economic innovation, the amendment would guarantee D.C. implements a profitable, equitable, affordable and transparent system of adult-use cannabis sales, testing and cultivation," said Nikolas Schiller, Cottage Industry Amendment author and Initiative 71 co-author.
The amendment establishes a "Cottage Industry License" for adult residents and a "Farmers Market Endorsement" license that would allow sales by local craft cultivators and entrepreneurs, molding social equity and decriminalization into a new, necessary and innovative revenue stream. The amendment includes enforceable rules and regulations for anyone issued either license.
The amendment states, "A cottage industry license shall authorize the licensee to grow and produce medicinal and/or recreational marijuana within their residence for sale and delivery at wholesale directly to manufacturers, testing facilities, retailers and farmers markets."
The amendment continues, "A Farmers Market Endorsement is a license issued to Cottage Industry Licensees or Micro Business Licensees that authorizes the licensee to sell the cannabis at Farmers Markets in the District of Columbia."
Click here for the complete amendment.
DENVER, Nov. 16, 2021 /CNW/ - PRESS RELEASE - Schwazze has announced that it has signed definitive documents to acquire MCG, LLC (Emerald Fields). Emerald Fields owns and operates two retail cannabis dispensaries, located in Manitou Springs and Glendale, Colo. This acquisition is part of the company's continuing retail expansion plan in Colorado bringing the total number of dispensaries including announced acquisitions to 22.
Total consideration for the acquisition will be $29 million and will be paid as 60% cash and 40% Schwazze common stock upon closing. The acquisition is targeted to close in the next 75 days, subject to closing conditions and covenants customary for this type of transaction, including, without limitation, obtaining Colorado Marijuana Enforcement Division and local licensing approval.
"Our team is delighted to add the Emerald Fields Cannaboutiques to our growing portfolio of dispensaries and are eager to welcome the team to Schwazze. Manitou Springs and Glendale are attractive locations and are valuable assets to our overall acquisitions plans as we continue to build out Colorado. Our team is excited to add another store brand to our house of brands," said Justin Dye, Schwazze's CEO.
]]>Oklahomans for Responsible Cannabis Action is facing a potential legal setback in its quest to get an adult-use cannabis legalization measure on the state’s 2022 ballot.
The group filed an initiative petition last month to get the issue before voters next year.
The proposal would allow adults 21 and older to grow, purchase, transport, receive, prepare and consume cannabis, and would levy a 15% tax on adult-use cannabis sales.
The measure would also allow those serving time for cannabis-related convictions to ask the court for resentencing or dismissal.
Paul Tay, a gubernatorial candidate and former Tulsa mayoral candidate who is currently incarcerated, has challenged the constitutionality of the proposal in court, according to a local KFOR report.
Indiana Democrats plan to push for medical and adult-use cannabis legalization during next year’s legislative session.
The party expressed its support for policy reform Nov. 15, ahead of Organizational Day for legislators on Nov. 16, according to a WTHR report.
“Hoosiers have seen the impact that recreational and medicinal cannabis use has made on the states around us, and not only are they contributing to neighboring states’ economies, [but] Indiana is now on the verge of losing out altogether,” Mike Schmuhl, Chairman of the Indiana Democratic Party, told the news outlet. “The Republican supermajority at the Statehouse is losing its economic common sense if they do not join Democrats this session in making this opportunity a winner for the Hoosier State."
Nearly 80% of Indiana residents support legalizing cannabis for medical purposes, adult-use or both, the news outlet reported. However, those convicted of cannabis possession in the state could face a 180-day jail sentence or a $1,000 fine under current law.
Supporters say legalization would generate tax revenue and create jobs, in turn boosting the state’s economy, and the issue seems to have bipartisan support, according to WTHR.
WAKEFIELD, Mass., Nov. 16, 2021 /PRNewswire/ -- PRESS RELEASE -- Curaleaf Holdings, Inc., an international provider of consumer CBD and hemp products, today announced that it has signed a national distribution agreement with Southern Glazer's Wine & Spirits, a distributor of beverage alcohol. The agreement will bring Curaleaf's lineup of products from their eponymous Hemp and Select CBD product lines into Southern Glazer's distribution network.
The distribution relationship combines Curaleaf's expertise in creating high-quality non-psychoactive hemp products with Southern Glazer's national scale, route-to-market capabilities, state-of-the-market sales team and its Proof e-commerce platform, bringing operating efficiencies that will drive growth within Curaleaf's family of CBD products.
Curaleaf Hemp and Select currently offer a broad range of CBD products with consumer-friendly formats and price points. The brands look forward to introducing new innovations to both ancillary lines with confections and beverages that feature minor cannabinoids like CBN and CBG, allowing consumers to personalize their CBD experiences as they continue to learn which products will work best for their unique needs.
"At Curaleaf, we are as committed to innovation and setting the highest possible standards for product quality as we are committed to customer accessibility--and our success lies not only in our ability to provide exceptional CBD-infused products, but to distribute them to the finest retail stores for safe, easy and reliable access to consumers around the country," said Patrick Larkin, SVP of Sales at Curaleaf.
"We are delighted to be joining forces with a world leading beverage distributor that shares our values around responsible distribution and pioneering a well regulated industry," said Joseph Gennaro, VP of CBD, Health & Wellness at Curaleaf. "We value Southern Glazer's expertise, efficiency and extensive network, particularly as we aim to open the consumer awareness funnel and fuel growth within our CBD business."
Curaleaf recently announced the pending acquisition of Tryke Companies, which owns Reef Dispensaries, a $286-million deal that will expand the multistate operator’s footprint in several Western U.S. markets.
The Reef Dispensaries portfolio includes two locations in Arizona and four in Nevada.
“This strategically and financially compelling transaction will expand our U.S. presence by bringing additional premium products to our consumers and retailers in Nevada, Arizona and Utah, all while yielding meaningful benefits for all of our stakeholders,” said Boris Jordan, founder and executive chairman of Curaleaf.
Tryke’s presence in Utah includes cultivation and processing.
“The deal includes $40 million in cash at closing,” according to Marketwatch, “plus $75 million in cash in equal installments over the next three years, as well as up to 18 million subordinate voting shares of Curaleaf.”
]]>A county in Southern Oregon is seeking funding from the state to crack down on illegal cannabis grows in the area.
Jackson County officials plan to ask the state for more than $7 million for 37 new employees, including Sherriff’s Office detectives, code enforcement officers and additional staff for the Jackson County District Attorney’s Office, according to an AP News report.
The move comes after hemp field inspections conducted over the summer in southern Oregon revealed that more than half of the registered hemp farms tested are actually growing THC-rich cannabis for the still-thriving illicit market.
RELATED: Hemp Field Inspections in Southern Oregon Reveal Staggering Number of Illicit Cannabis Operations
Following this discovery, Jackson County declared a state of emergency last month, saying that law enforcement officers and regulators are overwhelmed by the number of illegal cannabis farms in the area and that county officials need help from the state Legislature and governor to eliminate the illegal grows.
Massachusetts Gov. Charlie Baker wants the state’s cannabis laws updated to crack down on impaired driving, according to a local WWLP report.
Before the COVID-19 pandemic, Baker filed legislation that would suspend the license of individuals suspected to be operating under the influence of cannabis, the news outlet reported, but the bill stalled while lawmakers focused on the public health crisis.
Now, Baker is expressing disappointment that the Legislature has not yet put a framework in place to tackle the issue in the five years since Massachusetts legalized adult-use cannabis, according to WWLP.
“Unfortunately. our road safety laws have not caught up to the current public safety landscape with respect to impaired driving,” he told the news outlet, adding that he is urging lawmakers to revisit the issue.
Trulieve Cannabis Corp., a vertically integrated multistate cannabis company, opened Trulieve Morgantown Nov. 12, the first dispensary in West Virginia to sell medical cannabis to patients.
The opening of Trulieve Morgantown comes nearly four years after Gov. Jim Justice signed the state's medical cannabis bill into law.
"We're thrilled to be first to market in West Virginia and to continue building the foundation for the West Virginia's emerging medical cannabis market," Trulieve CEO Kim Rivers said in a press release. "Our team is especially eager to leverage our first-mover advantage to bolster local economies by creating sustainable jobs and investing in marginalized communities."
According to the release, Trulieve secured four dispensary permits from the West Virginia Office of Medical Cannabis in February, and the company is set to open its second dispensary in Weston, W.Va Nov. 15.
Trulieve Morgantown, located at 1397 Earl Core Road., will be open Thursday through Saturday from 10 a.m. to 6 p.m., and Trulieve Weston, located at 137 Staunton Drive, will be open on Monday's and Tuesday's from 10 a.m. to 6 p.m.
With the recent opening of two out of four locations, the company plans to open additional storefronts across the state this year.
As industry patience wanes for Sen. Chuck Schumer and company to formally file a Democratic-led bill to end federal cannabis prohibition, a new player in the reform discussion emerged with alternative legislation Monday afternoon.
South Carolina Republican Rep. Nancy Mace, a rookie U.S. House member who assumed office at the beginning of the year, unveiled the States Reform Act (SRA) during a during a press conference along with stakeholders, veterans and law enforcement members on Nov. 15 at the U.S. Capitol. The legislation is cosponsored by Reps. Ken Buck, R-Colo., Brian Mast, R-Fla., Tom McClintock, R-Calif., Peter Meijer, R-Mich., and Don Young, R-Alaska.
The federal reform effort comes at a time when 69% of Americans support legalizing adult-use cannabis, according to an April 2021 poll from Quinnipiac University, and when 91% of U.S. adults support federal legalization of medical cannabis, according to an April 2021 survey conducted by the Pew Research Center.
“Today, only three states lack some form of legal cannabis,” Mace said in a release ahead of Monday’s press conference. “My home state of South Carolina permits CBD, Florida allows medical marijuana, California and others have full recreational use, for example. Every state is different. Cannabis reform at the federal level must take all of this into account. And it’s past time federal law codifies this reality.”
Mace’s 131-page draft bill offers an alternative to other federal reform efforts put forth by her colleagues on the other side of the aisle. Specifically, SRA proposes a 3% federal cannabis excise tax and would give state governments the power to regulate cannabis products through health-and-safety oversights of their choosing. But no state would be forced to change its current cannabis policies.
The 3% tax on cannabis products comes with a 10-year moratorium on excise tax increases to ensure “competitive footing” in the market, according to the bill’s text. The tax revenue would fund law enforcement, small businesses and veterans’ mental health initiatives, according to Mace’s office.
