MjLink Cannabis Business News and Press
Louisiana Gov. John Bel Edwards signed legislation June 15 to decriminalize cannabis, but don’t tell him that.
The legislation, House Bill 652, removes the threat of jail time and reduces the penalty for the possession of up to 14 grams, or roughly a half ounce, of cannabis to a $100 fine for first-time and subsequent offenses.
According to the National Conference of State Legislatures—a non-partisan public officials association that fosters interstate cooperation and facilitates the exchange of information among state legislatures—decriminalization generally means small, personal consumption amounts of cannabis are a civil or local infraction, not a state crime, or are a lowest misdemeanor with no possibility of jail time.
In a statement following his signing of the bill, Edwards said not to call it decriminalization.
“I have signed H.B. 652, which contrary to the narrative developed in the press and elsewhere, does not decriminalize possession of small amounts of marijuana, 14 grams or less,” he said. “Instead, anyone convicted of this crime will now be subject to a maximum penalty of $100 instead of being exposed to parish prison time.”
While Edwards is a Democratic governor, he often aligns with the state’s sheriffs and has long opposed legalizing cannabis, according to The Advocate, a daily newspaper based in Baton Rouge.
Port Washington N.Y., June 10, 2021––PRESS RELEASE––The Hawthorne Gardening Company (Hawthorne) announced the first grantees of The Hawthorne Social Justice Fund within The Scotts Miracle-Gro Foundation. These organizations are leading the charge with criminal and social justice reform for the cannabis industry. They include Last Prisoner Project, Marijuana Policy Project Foundation, Minorities for Medical Marijuana and United Returning Citizens. In addition, Hawthorne is funding the NuLeaf Project, an organization that provides direct support for minority cannabis entrepreneurs, through a corporate donation.
As North America’s leader in indoor and hydroponic growing supplies, Hawthorne has committed to use its influence and resources to help drive criminal justice reform related to cannabis prohibition and contribute to shaping a more equitable post prohibition cannabis industry.
“Our commitment to being a good company is what drove us to create The Hawthorne Social Justice Fund within The Scotts Miracle-Gro Foundation. As we announced earlier this year, the fund was established with an initial investment of $2.5 million to support non-profit organizations with cannabis social justice missions.” said Chris Hagedorn, Executive Vice President and Division President of Hawthorne. “This fund deepens Hawthorne’s commitment to spark change as policy reform advances across the country and states address the legacy of racial inequity tied to cannabis prohibition. It is our promise to support programming that helps communities and individuals who have been negatively affected by the long standing and systemic inequality related to cannabis prohibition in the United States.”
The Hawthorne Social Justice Fund grantees were selected because of the powerful work they’re doing to address the negative impacts caused by the disproportionate number of cannabis-related arrests and incarcerations involving persons of color, to support minority entrepreneurs and to increase investments in minority communities.
“We are proud to be a partner of The Hawthorne Social Justice Fund. As legalization continues to gain traction across the country, we believe it is crucial to advocate for policies that promote inclusion, equity, and justice both in legislation and in the cannabis industry. Hawthorne's commitment to advancing reforms needed to create a more just and equitable industry is commendable, and we look forward to the work that will be accomplished through this partnership," said Steven Hawkins, Executive Director of Marijuana Policy Project Foundation.
The work of the Fund’s grantees includes:
BOCA RATON, FL. / DENVER, CO., JUNE 16, 2021 – Alternative Risk Strategies (ARS) today announced a new insurance solution for the cannabis industry that is specifically designed to meet the most difficult insurance challenges cannabis, hemp and cannabidiol (CBD) businesses face today.
Under current market conditions, cannabis businesses that are trying to purchase or renew insurance policies are experiencing an increasingly hardened insurance market characterized by substantially higher premium rates and higher deductibles/retentions for several of their necessary policy lines, such as Directors and Officers insurance. In response to this hard market event, ARS launched Cannabis Captive Solutions for qualifying cannabis companies as a competitive and alternative risk transfer solution that can help cannabis businesses lower their costs, improve cash flow and accumulate wealth.
A captive is a unique insurance company set up by its business owners to insure emerging and unique market conditions and avoid, when available, overpriced traditional insurance policies. As opposed to a traditional insurance company that collects the premium and retains the profits, a business-owned insurance captive has the unique ability to manage, assign and script specific risks and pay claims. A captive with little or no claims, builds up equity to be used for potential future claims (reserves), purchase re-insurance (higher limits) and apply to future premiums (cost reductions) by the company implementing the captive. ARS Captive Solutions is a new and effective way to keep a cannabis business resilient, cash fluid, manage risk mitigation and accumulate wealth.
“Watching the cannabis industry rapidly emerge over the last 6 years, the industry is limited in traditional insurance products and markets. Premiums continue to harden in an industry with little historical data. We are seeing an immediate need to provide alternative risk solutions to qualifying companies,” said Eric Rahn, managing director. “Presently public and private cross [border] (Canadian/USA) cannabis companies are categorized as high-risk in a highly-regulated industry. Insurance companies presently servicing the industry continue to charge huge premiums for coverages that are a critical foundation to protecting their business operations and attracting and retaining valuable officers and directors. With our new ARS Cannabis Captive Solutions, business can finally access the coverages they need to protect their business, transfer risk, and reduce insurance costs over a short period.”
Qualifying cannabis companies can access premium coverages, including Directors & Officers Liability, Professional & Products Liability, Excess Liability and Other Broad Form Coverages. ARS manages the process of analyzing its client’s insurance needs, set risk management goals and objectives, assists cannabis businesses and assist businesses form a captive private insurance company should they qualify. ARS coordinates with all the businesses in-house and outside professionals such as tax/accounting, legal and insurance brokers, and helps form a risk management committee of outside experts to report back to the captive owners.
]]>Debate on adult-use cannabis legalization finally got its day on the Connecticut House floor, where reform proponents prevailed during a special session Wednesday evening.
After House Republicans denied a vote in the regular order of the legislative session through the threat of a filibuster June 9—the final day before adjournment—lawmakers returned to the lower chamber and deliberated for more than seven hours June 16. In the end, legalization efforts prevailed in a 76-62 vote on an amended version of Senate Bill 1201.
The Senate, which passed the legislation in a 19-12 vote the previous day, is expected to take up the House’s amended version of the bill for final approval Thursday morning. Pending Democratic Gov. Ned Lamont’s signature, Connecticut will be the 19th state to legalize adult-use cannabis. And with some of the social equity language dialed back in this latest version of the bill, Lamont’s signature seems more likely than in previous days.
“Connecticut is just the latest domino to fall as states begin to repeal their failed prohibition of marijuana and replace it with a sensible system of legalization and regulation,” National Organization for the Reform of Marijuana Laws (NORML) Executive Director Erik Altieri said in a statement.
“Never before has the momentum for legalization looked as strong as it does in 2021, with four state legislatures already approving bills to ensure state law reflects the overwhelming will of their state residents in just a few short months,” he said. New York, Virginia and New Mexico have also passed adult-use bills this year.
The Connecticut measure will allow adults to possess up to 1.5 ounces of cannabis flower or an equivalent amount of concentrate in public, and up to 5 ounces in their homes, beginning July 1, 2021. Commercial sales could begin as soon as May 2022.
Social equity has been a pillar for adult-use cannabis passage among many state legislatures that have recently adopted public policy to end prohibition. But language surrounding social equity applications and funding may be the demise of legislation in Connecticut.
The Connecticut Senate passed an adult-use bill by a 19-12 vote during special session June 15, a week after the upper chamber passed the legislation with the same number of yeses during its regular season.
Threats of a House Republican filibuster on the final day before the Legislature adjourned June 9 sidelined the legislation, prompting Gov. Ned Lamont to call the special session.
RELATED: Clock is Ticking for Adult-Use Cannabis Bill in Connecticut
While Lamont supports adult-use legalization—he proposed it during his February state budget request—the governor vowed to veto the new bill, Senate Bill 1201, over language involving social equity eligibility rules adopted through Amendment A in Tuesday’s special session.
Paul Mounds, the Democratic governor’s chief of staff, said in a statement that the current version of the bill “does not meet the goals laid out during negotiations when it comes to equity and ensuring the wrongs of the past are righted. To the contrary, this proposal opens the floodgates for tens of thousands of previously ineligible applicants to enter the adult-use cannabis industry.”
Following the release of cannabis tax compliance reports from the IRS, pursuant to a FOIA request filed by Marijuana Business Daily, we revisit strategies for dealing with examination and oversight.
The most advantageous middle ground between paying a high effective tax rate and a tax rate similar to your stated taxes could refer to the following example.
Let’s assume $2.5 million in revenues, a 40% COGS, 15% operating expenses, a California state tax rate of 8.84% and a C Corporation rate of 21%. (Please note, this is just an illustration!) Remember that in California, the state has given a break to cannabis businesses in that it does not charge state tax on gross income, but rather on net income before tax. Notice the effective tax rate in this example:
Gross Revenues $2,500,000
40% Cost of Goods Sold 1,000,000
Gross Income 1,500,000
The state of California will funnel $100 million toward its sprawling cannabis industry this year in an attempt to tighten the regulatory landscape and boost business prospects for entrepreneurs and local governments that took up the market over the past five years.
The cannabis-specific allocation is part of the state’s $268-billion 2021-2022 budget, known in Sacramento and elsewhere as the California Comeback.
The spend includes $22 million earmarked for Los Angeles programs, as well as funds directed toward another 16 cities and counties (San Francisco, Long Beach, Oakland, Desert Hot Springs and others). The idea, according to state legislators, was to targets areas with the highest concentrations of licensed cannabis businesses and consumers—areas where a return on this public investment might be realized more quickly.
“Gov. [Gavin] Newsom is dedicated to the success of the legal cannabis industry in California,” Nicole Elliott, the governor’s senior advisor on cannabis, told the Los Angeles Times. “The purpose of this one-time $100 million in grant funding is to aid locals and provisional licensees, many of which are small businesses, legacy operators and equity applicants, in more expeditiously migrating to annual licensure.”
Money is one thing. Time is another.
As a sign of how things are going in California, Newsom is also floating the idea of a six-month extension on the mandate to move all businesses from temporary licenses to more formal annual licenses. That switch was meant to occur in 2019, but the deadline has since been bumped (twice) to Jan. 1, 2022. Now, Newsom’s administration is hoping to kick the transition into the middle of 2022.
LAS VEGAS, June 10, 2021 – PRESS RELEASE – Canadian-based Eteros Technologies, owner of Mobius Trimmer, a brand of high-end cannabis and hemp processing equipment, revealed its latest technological achievement, the M9 Sorter, featuring an industry-leading combination of features to ensure high-speed sorting and precise product sizing. The launch was announced at the company’s “Demo in the Desert” event held at the recently opened Eteros Las Vegas facility, which will serve as the final assembly plant for the new product in the U.S. cannabis market.
“Cannabis cultivators and processors are always engaged in a constant battle to increase yields, reduce loss and ensure high quality is maintained during the trimming process,” Mobius Trimmer CEO Aaron McKellar said. “When sorting can handle more product in less time while increasing accuracy in sizing, a large part of the battle is won. The M9 Sorter is designed with this goal in mind and incorporates a long list of features to get there.”
Features of the M9 include:
An industry-leading nine sorting beltsAn industry-leading 78-inch sorting zone for high-speed and precise sizing of productA longer sorting table that leads to more accurate resultsEvery grading slot is longer, creating more opportunity for an accurate sort, and each grading partition is fully adjustableAll stainless-steel constructionSanitary construction for GMP workflowsAdjustable infeed hopper: tool-free adjustment and removal for feeding or conveyor infeedReversible table for operation in either left or right outfeed configurationEasy access for cleaning with safety interlocked end panels and rear door7-inch HMI color controllerAccurately grades up to 200 kilograms per hourAs with all Mobius products, the Mobius M9 features quick and tool-free removal of all belts and rollers for easy and safe cleaning. The new product announcement comes during a period of strong growth for Eteros, following the acquisition of California-based Triminator, a pioneer in harvesting equipment for professional growers of cannabis and hemp, and the opening of the company’s Las Vegas location earlier this year.
“We are so encouraged by the reception we have received in Las Vegas since opening our facility earlier this year,” McKellar said. “The ability to serve U.S. customers from our new home base in the desert is a dream come true. We look forward to the opportunity to serve more of the U.S. community.”
The Mobius and Triminator product lines combine to form the world’s largest manufacturer of cannabis and hemp harvesting and processing equipment. Eteros Technologies, parent company of the Mobius line, plans to retain Triminator employees and leadership, and company officials said both brands will continue to operate independently. Working in synergy, each will marshal greater engineering, sales, training and support resources to offer customers the most comprehensive suite of processing solutions on the market. The acquisition also means that the full Canadian designed-and-built Mobius line and full U.S.-built Triminator product line will be stocked and available across North America.
]]>Adult-use cannabis legalization will take effect July 1 in Virginia, but state universities are revisiting their codes of conduct to ensure bans on student use and possession continue on their campuses.
Signed into law by Gov. Ralph Northam on April 21, the legalization measure will allow adults 21 years and older to possess up to 1 ounce of cannabis and grow up to four plants per household starting next month—a timeline that was expedited 2 1/2 years through the Democratic governor’s amendment package.
Virginia Tech in Blacksburg is the first university in the state to revise its student code of conduct in response to legalization, while other state colleges also plan to keep cannabis banned, The Roanoke Times reported June 13.
According to VT’s 2020 Student Code of Conduct, “Possessing, using, manufacturing, selling or misusing any substance and/or possession of drug paraphernalia in violation of state or federal law,” is prohibited on campus or at university-sponsored events off campus. Recently revising that section, the university’s update intends to make it clearer that it will be following the federal prohibition of cannabis.
VT’s policy is in line with other universities where state legalization measures are already in effect. According to Roanoke Times, schools are taking these stances because they don’t want to risk losing federal funding by violating the Drug-Free Schools and Communities Act, which bans drugs on college campuses and public schools.
“In addition to state law, our policies must also be aligned to federal laws, too,” VT spokesman Mark Owczarski told the newspaper. “In most cases, state and federal law is similar or the same, which aids in the clarity of university policies. In this case, state and federal laws will have differences, and when that happens, we still to have to make sure our policies align to both, even though they are different.”
It’s been a busy year for federal cannabis legislation. Will all the activity lead to legalization – or even incremental progress on changing federal law?
Federal cannabis reform hasn’t passed into law, but it’s not for lack of trying. In 2021 alone, several high-profile cannabis bills have been proposed in both chambers of Congress, while others have been promised later this year.
Moving into the second half of 2021, let’s examine the most prominent federal cannabis bills, assess their current status, and with the help of industry experts, make some predictions about the future.
The Marijuana Opportunity Reinvestment and Expungement (MORE) Act
Introduced in the House by Rep. Jerry Nadler (D-NY) & other Democratic representatives
May 2021
The 2021 wave of cannabis legalization may pick up another surge of momentum when the Connecticut House of Representatives reconvenes for a special session. Legislators were backed into this last-minute maneuver after House Republicans threatened to filibuster the legalization measure and stomp on its prospects for passage.
“[It’s] very unfortunate that the House GOP chose to stay on the sidelines all session long on this issue and then, at the 11th hour, deny a vote in the regular order. But make no mistake, legal cannabis will become law,” Democratic Rep. Steve Stafstrom, who co-chairs the Joint Judiciary Committee, tweeted earlier this week.
It’s a good reminder, yet again, that legalization efforts are far from a done deal—even in states facing the mounting geographic/political pressure of neighboring cannabis markets. New York, New Jersey, Massachusetts: This phalanx of legal cannabis is enough to drive legislative advocacy, but not enough to finish the job on its own. States like Connecticut and many others need willing, engaged participants on both sides of the aisle.
We’ve rounded up some of the major cannabis headlines from the week right here:
As states across the U.S. offer various incentives for residents to get the COVID-19 vaccine, the cannabis industry has lent its support to the cause. Read more After a series of Cannabis Business Times, Cannabis Dispensary and Hemp Grower features on delta-8 THC, Assistant Editor Andriana Ruscitto now addresses delta-10: “Delta-10 is typically produced more predominantly through extraction or converted from delta-9 through isomerization, he says. Transforming delta-9 to delta-10 (or delta-8) is possible because they have the same chemical compounds, just different structures.” Read more Less than a month after debuting on the Nasdaq Stock Market, Colombia-based cultivator Flora Growth is connecting its cannabis pipeline to Europe through a manufacturing and distribution partnership with Hoshi International. Read more After House Republicans threatened a filibuster, lawmakers are now poised to take up the legislation in a special session to legalize cannabis. Read more Associate Editor Tony Lange reports: “The NFL and its players association will provide $1 million to fund up to five research studies to investigate pain management and the effects of cannabinoids on athletic performance in elite football players.” Read moreAnd elsewhere on the web, here are the stories we’ve been reading this week:
NJ.com: “Lawmakers are working to ease the high costs of medical cannabis for New Jerseyans enrolled in financial assistance programs for children, seniors and crime victims.” Read more Marijuana Moment: “Marijuana legalization is set to go into effect in Virginia at the beginning of next month—and now the state is taking a step to educate residents about the rules of the new program.” Read more Fox8: In Ohio, “Huntington’s disease, terminal illness and spasticity were added to the list of qualifying medical marijuana conditions on Wednesday.” Read more Fox13: “After the Wyoming State Legislature declined to advance a bill to legalize medical cannabis this year, advocates are turning to voters with a pair of ballot initiatives for 2022.” Read more Santa Barbara Independent: Santa Barbara County has filed its first public nuisance lawsuits against cannabis businesses—targeting the odor and citing neighbors’ complaints—naming Island View Ranch LLC and Island Breeze Farms LLC as defendants. Read more]]>
WASHINGTON, June 9, 2021 – PRESS RELEASE – The Law Enforcement Action Partnership (LEAP) joined the steering committee of the Cannabis Freedom Alliance (CFA), a coalition that launched in April to end the prohibition, criminalization and overregulation of cannabis in the United States. The CFA aims to end cannabis prohibition and criminalization in a manner consistent with helping all Americans achieve their full potential and limiting the number of barriers that inhibit innovation and entrepreneurship in a free and open market.
LEAP will be represented on the CFA Steering Committee by retired Lt. Diane M. Goldstein, LEAP executive director. Steering membership includes prominent national advocacy organizations Americans for Prosperity (AFP), Mission Green/The Weldon Project, the Reason Foundation and the Global Alliance for Cannabis Commerce (GACC).
“Supportive law enforcement voices are crucial for advancing cannabis legalization,” Goldstein said. “LEAP is proud to join this committee, continuing our decades-long history of lending our public safety expertise to this important issue.”
CFA co-Coordinator Randal John Meyer said, “Law enforcement is a critical voice in the conversation about ending cannabis prohibition. We are honored to have LEAP join our work at the Cannabis Freedom Alliance to provide that voice and perspective as we pursue second chances, stronger communities and better business for all Americans.”
Brent Gardner, chief government affairs officer at Americans for Prosperity, said “This movement to end the criminalization of cannabis is bringing organizations together from across the ideological spectrum who recognize the status quo has damaged communities and upended hundreds of thousands of lives. We are excited to welcome Law Enforcement Action Partnership into our coalition as we work together to increase community safety through policy reform that is good for both law enforcement and the communities they’re sworn to serve and protect. Together, we can help end a senseless cycle of incarceration for thousands of Americans and ensure law enforcement is focusing on preventing and solving serious crime.”
For more information on the CFA or to join our efforts, please visit cannabisfreedomalliance.org or email us at [email protected].
]]>BOULDER, Colo., June 8, 2021 – PRESS RELEASE – Surna Inc., operating as SurnaCultivation Technologies, introduced the addition of heat recovery chillers toits EcoChill product portfolio.
“Surnacontinues to add technological options to our product lines to meet the growingdemands of indoor agriculture climates,” said Troy Rippe, Surna CultivationTechnologies vice president of operations and development. “We understand thatone of the biggest challenges for our customers is to be more energy efficientand drive down operational costs. This new product is part of our strategy torespond to that challenge.”
Two multistate operators (MSOs), in an effort to drive downoperational costs, recently installed the EcoChill heat recovery chillers. Thefirst MSO has a 90,000-square-foot facility in Illinois and the other is a40,000-square-foot facility in Ohio.
Becausethey produce both chilled and hot water simultaneously, EcoChill Heat RecoveryChillers can reduce the capacity requirements and energy consumption versustraditional four-pipe chilled water systems. They are also modular, with thecapability of each unit being installed inches apart. For easy maintenance,each unit can be serviced from the front of the unit or removed from the bankof chillers for servicing without disruption to the other units.
TheEcoChill family of chillers also includes small-tonnage chillers designedspecifically for indoor cultivation applications, delivering benefits thatother cooling systems cannot provide. Using a Surna Cultivation Technologieschilled water system with ductless fan coils eliminates ductwork and helpscultivators to seal their environment against outside contaminants.
To learnmore about Surna Cultivation Technologies’ full line of EcoChill chillers,visit www.surna.com.
]]>By now, many in the industry are aware of the recent craze surrounding delta-8 tetrahydrocannabinol (THC), a natural component of cannabis that has burst into popularity over the past several months.
And it seems as soon as the industry has gained a solid understanding of delta-8, another THC compound has come into the spotlight: delta-10 THC.
Similar to delta-8, delta-10 is a minor cannabinoid that exists in trace amounts in hemp and cannabis, according to ACS Laboratory, a cannabis, hemp and cannabidiol (CBD) testing laboratory in Florida.
As previously reported by Hemp Grower, delta-8 is said to have a relaxing effect and produces some psychotropic effects that are believed to be less potent than delta-9.
Roger Brown, the president and founder of ACS Laboratory, describes the effects of delta-10 to be the opposite of delta-8, based on his personal experience.
"For myself, I don't utilize or smoke marijuana, but I tried delta-8 and delta-10 products that we tested as an experiment, and for me, delta-10 had no psychoactive effects; it was more like a mood enhancer," he says.
The Connecticut Senate passed legislation on Tuesday to legalize adult-use cannabis in the state, but the measure might be at risk as the current legislative session ends Wednesday night.
The NFL and its players association (NFLPA) will provide $1 million to fund up to five research studies to investigate pain management and the effects of cannabinoids on athletic performance in elite football players.
The league announced the funding opportunity to explore alternatives to opioids on Tuesday as part of its collaborative effort with the NFLPA through their joint Pain Management Committee (PMC) that was established in 2019 to provide players and league medical staffs information on pain management.
According to the league’s announcement, the funding opportunity is intended to facilitate, at minimum, the following three lines of potential inquiry:
The effects of non-pharmacologic treatments on pain in elite football players (postsurgical and/or in daily pain management); and
The effects of cannabis or cannabinoids on athletic performance (e.g., psychomotor, reaction time, cardiorespiratory function) in elite football players.
NFL Chief Medical Officer Dr. Allen Sills told The Associated Press there are a lot of great ideas and important research that need to be funded.
“This is really not an NFL issue or a sports issue,” Sills said. “This is a societal issue, which is how can we better understand and treat pain and what are the alternatives that may be out there for treatment in addition to opioids which have long been used.”
In 2020, PMC conducted two informational forums on cannabidiol (CBD) to learn about the state of the cannabinoid’s science and manufacturing in North American. And earlier this year, the PMC issued a request of information to identify researchers studying pain management alternatives.
OTTAWA, Ontario, June 8, 2021 – PRESS RELEASE – HEXO Corp. is proud to announce a commitment to offsetting the company’s operational carbon emissions and the personal emissions of all 1,200 employees*, making HEXO 100% carbon neutral from September 2021 onward. The company is also committing to offset the plastic used in its pouch packaging through Plastic Bank in partnership with Dymapak, HEXO’s primary packaging supplier. These concrete actions highlight the company’s early steps toward a long-term commitment to leading the cannabis industry on Environmental, Social and Governance (ESG) action.
“We have always taken our responsibility for sustainability seriously. Now, as we are on the verge of becoming the top Canadian LP by recreational market share and continuing down the path towards top three globally, it’s more important than ever to take meaningful action to protect our planet—and this is just the start,” HEXO CEO and co-founder Sebastien St-Louis said. “We are challenging ourselves and the rest of the industry to do better, so in addition to becoming carbon neutral by offsetting our operational emissions, we feel it is our obligation to offset our employees’ emissions as well.”
Through a partnership with Canadian carbon management solutions company Offsetters, in support of the Great Bear Forest Project, HEXO will be measuring and offsetting the company’s corporate carbon emissions starting with its 2020 calendar year, making HEXO 100% carbon neutral by September 2021, as well as offsetting its employees’ personal emissions. The GreatBear Forest Carbon Project reduces carbon emissions by protecting forests previously designated, sanctioned or approved for commercial logging. Carbon finance supports the local First Nations communities by generating stewardship jobs protecting the Great Bear Rainforest—the largest intact coastal temperate rainforest remaining in the world—and offsets the equivalent of one million tonnes of carbon dioxide each year.
“On top of their own commitment to carbon neutrality, HEXO has raised the bar by committing to purchase offsets to mitigate their employees’ personal emissions,” said Dawn Hancock, director of client engagement at Offsetters. “This is the first time we’ve seen a company of this size make this kind of commitment and we hope that it helps to spur stronger commitments from other companies.”
In conjunction with HEXO’s primary packaging supplier Dymapak and its partnership with Plastic Bank, the company has offset 63,000 kilograms of plastic in 2021—the equivalent of over 3.15 million plastic bottles. HEXO will continue to counteract the use of all plastic in its packaging. Plastic Bank builds ethical recycling ecosystems in coastal communities and reprocesses the materials for reintroduction into the global manufacturing supply chain. Collectors receive a premium for the materials they collect to help them provide basic family necessities such as groceries, school tuition and health insurance.
“Ocean plastic is a critical issue with increasing challenges,” Dymapak CEO Ross Kirsh said. “Environmental consciousness has never been more important and we’re proud to partner with Plastic Bank and HEXO to mitigate the impact of child resistant bags and other plastic packaging. It’s our hope that other businesses will turn interest into action by committing to plastic neutrality.”
Less than a month after debuting on the Nasdaq Stock Market, Colombia-based cultivator Flora Growth is connecting its cannabis pipeline to Europe through a manufacturing and distribution partnership with Hoshi International.
Headquartered in Toronto, but with 95% of its operations in Colombia, globally motivated Flora Growth made a 2-million-euro ($2.4 million) strategic investment to become a preferred supplier to Hoshicap Portugal—a subsidy of Toronto-based Hoshi International—the company announced June 7.
The investment will provide Flora access to extraction facilities in Malta and Portugal to process its cannabis derivatives from Colombia and distribute them through Hoshi’s channels throughout Europe. The transaction is the first of many steps intended by Flora to launch its seven brands and 300-plus products across the world, President and CEO Luis Merchan told Cannabis Business Times. Flora’s cultivation practices to supply cannabis derivatives also include business divisions in cosmetics, hemp textiles, and food and beverage.
The Portugal license will allow for the cultivation and import of cannabis produced through good agricultural and collection practices (GACP)—guidelines outlined by the World Health Organization for medicinal plants—and also enable the Good Manufacturing Practice (GMP)-certified processing facility to export indoor and outdoor medical cannabis throughout Europe.
In Malta, Hoshi is completing its GMP facility to produce, process and package cannabis products, including oil derivatives, to be distributed throughout the European Union (EU). Hoshi’s Maltese entity received a provisional medical cannabis license covering cultivation, processing and importation/exportation under Malta’s Production of Cannabis for Medicinal and Research Purposes Act.
“Those assets, the cultivation in Portugal as well as the facility in Malta, opened the door to us for completing the supply chain into the European Union,” Merchan said. “That’s very important to us because the market in the European Union is significant. Obviously, the No. 1 economy (in Europe), Germany, is very attractive and clearly is open for the import of cannabis derivatives. And having a partner as Hoshi as a critical partner and preferred distributor for the European Union became a no-brainer.”
As outside players continue to show interest in and support of the cannabis space, Amazon is the most recent actor to flex its voice in a favorable reform statement that could have major implications moving forward.
This past week, we covered news about how the second-largest private employer in the U.S. plans to eliminate drug testing for its workers. Amazon also announced its support of the reintroduced Marijuana Opportunity Reinvestment and Expungement (MORE) Act, a bill to legalize cannabis at the federal level.
One of the most powerful companies in the U.S.—and the world—Amazon isn’t the only outside actor providing an influential voice. In April, Uber CEO Dara Khosrowshahi said his company would “absolutely” consider cannabis delivery when the road is clear to do so.
When some of the most prominent business leaders in the world show an interest in cannabis reform, people take notice, including those who legislate our public policies in Congress. That momentum could be contagious and carry its weight to benefit those who have already invested all of their chips into the industry.
We’ve rounded up some of the major cannabis headlines from the week right here:
Assistant Editor Andriana Ruscitto reports that “cannabis consumption lounges could finally be making their way to Nevada,” after two previous attempts by Las Vegas never became a reality because of “setbacks and political debates from the rival gaming industry.” Read more
National Cannabis Roundtable co-founder Christopher Jensen explains what the trade association is focusing on next “now that the SAFE Banking Act is on its way to the Senate, where there is hope it will finally pass after making its way through the House multiple times,” Editor Michelle Simakis writes in her Q&A feature, which details other challenges holding the industry back. Read more
“Organic living soil allows a plant to easily access which essential nutrients it needs when it needs them,” contributor Allison Troutner writes in her column that includes five tips to maintain a healthy soil for indoor cannabis facilities. Read more
Harborside Inc. announced Tuesday that it signed a definitive agreement to acquire Sublimation Inc. (Sublime), an award-winning cannabis manufacturing company in Oakland, Calif., for a total consideration of $43.8 million. Read more
And elsewhere on the web, here are the stories we’ve been reading this week:
The Spokesman-Review: “The National Institute on Drug Abuse, National Cancer Institute, the National Heart, Lung, and Blood Institute, and the National Institute of Mental Health published a joint notice in the National Institutes of Health Guide to establish a standard THC unit [5 milligrams] to be used in research studies funded by these institutions.” Read more
NPR: “Since 1968, U.S. researchers have been allowed to use cannabis from only one domestic source: a facility based at the University of Mississippi, through a contract with the National Institute on Drug Abuse (NIDA).” Read more
Forbes: “A young boy and his single mother are in the midst of a 1,000-mile walk across the United Kingdom, a journey they are making to raise awareness and funds to provide medicinal cannabis to chronically ill patients.” Read more
The Associated Press: “The leader of the organization that sponsored the voter-approved Mississippi medical marijuana initiative that was recently blocked in court says the program should be changed and improved by the state Legislature—but not by too much.” Read more
After four years of setbacks, cannabis consumption lounges could finally be making their way to Nevada.
As previously reported by Cannabis Dispensary, consumption lounges showed promise as part of a Las Vegas ordinance back in 2017 and again in 2019, but due to setbacks and political debates from the rival gaming industry, the legislation never became a reality.
Now, the measure has a third chance at passing, and this time might be the charm.
Assembly Bill 341 cleared the lower chamber in a 29-12 vote on May 27 and passed the Senate in a 17-12 vote on May 31. The legislation now sits on Gov. Steve Sisolak's desk, awaiting his signature.
The bill would provide the licensing and regulatory framework for cannabis consumption lounges in Nevada, paving the way for an unlimited number of lounges to open across the state.
Assemblyman Steve Yeager, the sponsor of the bill, told 3 News that there would be two models for the consumption lounges once the bill becomes a law (Sisolak is expected to sign the legislation, according to the National Organization for the Reform of Marijuana Laws.)
