MjLink Cannabis Business News and Press

LEAMINGTON, ON, April 14, 2020 /CNW/ - PRESS RELEASE - Aphria Inc., a global cannabis company, has reported its financial results for the third quarter ended Feb. 29, 2020. All amounts are expressed in Canadian dollars, unless otherwise noted and except for per gram, kilogram, kilogram equivalents, and per share amounts.

"We are proud of our sustained growth in Canada and continued expansion of our international capabilities," stated Irwin D. Simon, Chairman and Chief Executive Officer. "During this unprecedented time, the well-being of our employees, patients, consumers, partners and the communities we operate in is our primary focus. Our facilities, offices and patient care teams remain open and operational to continue to provide our patients and consumers with what we believe is best-in-class care and service with appropriate measures in place to protect the health and safety of employees. As we face uncertain times, I am proud of how the Aphria team has come together to navigate these uncharted waters. Going forward, we believe Aphria continues to be differentiated in the cannabis industry through our brands, cultivation expertise, high quality standards, cash position and balance sheet. We continue to focus on the highest return opportunities for growth and long-term value creation."

Key Operating Highlights

Gross revenue for adult-use cannabis of $44.7 million in the third quarter, an increase of 54% from prior quarter and the 5th consecutive quarter of growth. Net cannabis revenue of $55.6 million in the third quarter, an increase of 65% from prior quarter. Net revenue of $144.4 million in the third quarter, an increase of 96% from prior year quarter and increase of 20% from prior quarter. Operating income of $8.7 million in the third quarter, compared to a loss of $9.6 million in the prior quarter. Net income of $5.7 million, or $0.02 per share, and adjusted EBITDA of $5.7 million in the third quarter. Adjusted EBITDA from cannabis operations of $6.0 million in the third quarter, an increase of 78% from the prior quarter. Ended third quarter with a strong balance sheet and liquidity, including $515.1 million of cash and cash equivalents, to fund planned Canadian and International growth. Received its European Union Good Manufacturing Practices (EU GMP) certification, from the Malta Medicines Authority (MMA) at the company's subsidiary, ARA - Avanti Rx Analytics, as well as the GMP annex at the company's Aphria One facility, allowing the company to begin to supply medical cannabis across the European Union and bolstering the company's international export capabilities. Equity raise of $100 million, further strengthening the balance sheet.

Subsequent Event

Recognized for Executive Gender Diversity by Globe and Mail's inaugural Report on Business Women Lead Here list, an annual benchmark of executive gender diversity in corporate Canada.

Key Financial Highlights

(In thousands of Canadian dollars)

Record numbers of Americans are filing for unemployment benefits—the Department of Labor has reported more than 16 million seasonally adjusted initial claims since March 15. But some cannabis companies are hiring amid the coronavirus pandemic. Among them is Curaleaf, a vertically integrated company with operations across the country.

In the two and a half weeks leading up to April 8, Curaleaf New York had hired 27 people, Lanett Austin, director of human resources and outreach in the state for the publicly traded company, said on April 8. Out of those 27 new hires, about 90% indicated they had been laid off from their previous jobs.

“We know firsthand how challenging it can be to be an essential worker, and we're so proud that our team members are proud to be giving back and serving our community. So, we’re happy to assist in any way, shape or form,” Austin said. “Overall, the morale is definitely a serious morale, but they know that they are doing something much bigger than just themselves, and it is rewarding and challenging both at the same time.”

Curaleaf hires people who care about others, and if those hires don’t have experience in cannabis or know a lot about it, the company can teach them, Austin said. Many of its hires come from the retail sector, including the clothing and grocery industries, specifically.

The company is continuing to hire for full-time and part-time positions at its four dispensaries in the state—in Queens, Carle Place, Newburgh and Plattsburgh, which are all open for curbside pickup and delivery only—as well as positions in cultivation and manufacturing at its 72,000-square-foot Ravena facility. Among job openings are those for entry-level growers, dispensary associates and fill technicians, as well as per diem pharmacists at each of its dispensaries.

Due to stay-at-home restrictions and social distancing measures—and in a state that has about a third of the total confirmed coronavirus cases in the U.S.—the company has had to find new ways to conduct the interview process.

CHICAGO--(BUSINESS WIRE)--PRESS RELEASE--Cresco Labs, one of the largest vertically integrated multistate cannabis operators in the United States, has announced that it has completed the expansion of its cultivation facility in Lincoln, Ill., the largest in the state, and the first phase of expansion at its Kankakee facility. These expansions add almost 180,000 square feet of additional indoor and greenhouse cultivation space, bringing the total cultivation space to 215,000 square feet across all three of its Illinois facilities. As the only operator in Illinois with three cultivation sites which are licensed to grow up to 630,000 square feet of flowering canopy, Cresco has a unique competitive advantage and is positioned to build on its already market-leading position.

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Multistate cannabis operator Cresco Labs has launched a new value brand, High Supply, with the goal of offering quality products to consumers who want to spend less on cannabis and more on life experiences.

“We’re always looking for areas where the industry and our company can better serve consumer needs,” Cory Rothschild, Cresco Labs’ SVP of Brand Marketing, told Cannabis Dispensary. “From our standpoint, High Supply is just that. It’s a new brand in our growing portfolio … focused on the savviest consumers in the cannabis category. It’s offering quality product at affordable prices, and we know, particularly right now, it’s what consumers need the most. Hopefully by saving on cannabis, they can put that money toward other priorities in their life.”

The product portfolio includes vape pens, popcorn, shake and pre-rolls sold in bulk, single-serve packages. The products are produced from Cresco Labs-grown cannabis and are available at a lower price point than many of the company’s other offerings.

The High Supply brand initially launched in Illinois in January and expanded to California earlier this month. Cresco Labs plans to expand the product line to every state in which it operates over time.

“We’re hoping that, just like the rest of our portfolio, this becomes one of the first national brands in cannabis,” Rothschild said.

After several years of success with its wide range of products, Willie Nelson’s cannabis brand, Willie’s Reserve, has taken on its first medical cannabis market with an expansion into Maryland.

Since introducing its first products in 2016, Willie’s Reserve has expanded into six states and has also launched Willie’s Remedy, a line of hemp-based products.

The Willie’s Reserve team was attracted to Maryland largely because of what VP of Brands Elizabeth Hogan calls a “sensible medical rule.”

“The voters in Maryland approved something that makes a lot of sense, and the way that it’s come to market has been that they’ve set out to do it one way and that’s what’s been able to be accomplished,” Hogan tells Cannabis Business Times. “We love what we’ve been able to see from the Maryland market.”

Willie’s Reserve has partnered with Baltimore-based Culta, a state-licensed, vertically integrated cannabis operator, to bring its products to Maryland’s medical cannabis patients.

LOS ANGELES, April 15, 2020 (GLOBE NEWSWIRE) -- OG DNA Genetics (“DNA” or the “Company”), a globally recognized leading cannabis brand, today announced their first official U.S. launch of premium DNA Genetics branded cannabis products with partner, Copperstate Farms LLC (“Copperstate”) — a vertically integrated cannabis company in Arizona. DNA-branded products are now available at Copperstate’s Sol Flower dispensaries in Sun City and Tempe, Arizona.

Across the country many states have deemed cannabis operations to be an essential service during the COVID-19 crisis, and DNA Genetics and Copperstate Farms are grateful to be able to provide quality cannabis to patients in Arizona during these difficult times. Arizona medical cannabis patients will have access to a wide variety of highly sought-after DNA Genetics cannabis strains, including Holy Grail, Skywalker Kush, Recon Kush, and Citradol. Additional strains like Lemon OG, Kosher Dawg, 4 Prophets, 24K Gold, and Tangie will be available in the upcoming weeks.

Today’s announcement builds on the strategic partnership agreement DNA and Copperstate signed last May allowing Copperstate access to DNA’s proprietary library of award-winning genetics for use at their cultivation facility in Snowflake, Arizona. DNA and Copperstate’s agreement provides Copperstate with the exclusive license to cultivate, manufacture, sell and distribute DNA Genetics branded premium cannabis flower and products in the Arizona market.

“We have been greatly anticipating the U.S. launch of DNA-branded products with our partners, Copperstate Farms,” said Aaron Yarkoni, Co-Founder and Chief Research Officer at DNA Genetics. “We believe that the combination of our award-winning genetics and Copperstate’s extensive facility and commitment to quality will bring our unique strains to life in Arizona.”

Copperstate Farms is one of the largest permitted greenhouse cultivation facilities in North America. They are dedicated to cultivating the highest quality cannabis and are an esteemed industry leader in horticulture. The company is devoted to providing patients with a diverse selection of premium products by aligning with brands committed to quality and innovation.

“We are excited to debut these world-class and award-winning strains from DNA Genetics.  This has been a collaborative effort over twelve months’ time that involved starting with 12,000 seeds before narrowing this down to the exact genetics that deliver on the DNA brand as well as can function well in our greenhouse environment,” said Copperstate Farms CEO Pankaj Talwar.

4/20 is the biggest holiday of the year for the cannabis industry. Because of COVID-19 and the stay home order, businesses say this year will look very different.

4/20 is arguably a pot smoker's favorite holiday.

It's also a day when Oregon's pot shops see a huge spike in sales, and a day the industry plans and prepares for months in advance.

Click here to read the complete article

Morgan Romero ~ KGW.com ~ 

Some states have left all cannabis dispensaries open, while others have only allowed medical patients access.

As the coronavirus spread across the country in March, and stay-at-home orders began to go into effect, every state with a regulated cannabis system allowed weed sales to continue in some form, deeming medical-marijuana businesses essential during the pandemic, along with groceries and pharmacies.

This, The New York Times declared, was “official recognition that for some Americans, cannabis is as necessary as milk and bread.”

Click here to read the complete article

Mary Jane Gibson ~ RollingStone.com ~ 

Guam Gov. Lou Leon Guerrero has declared a public health emergency on the island that suspends all “non-essential” government activity through May 6 in a move that will likely delay the release of Guam’s forthcoming adult-use cannabis regulations, according to a Cannabis Wire report.

Last year, Leon Guerrero signed the Guam Cannabis Industry Act into law to legalize adult-use cannabis for adults 21 and older. The law granted regulators one year to establish a regulatory framework to license the industry and launch legal sales, Cannabis Wire reported.

The one-year mark passed during the first week of April, according to the news outlet, but no regulations have been released.

The Cannabis Control Board—established by the legalization bill to regulate and oversee the industry—has been shut down since Leon Guerrero’s order went into effect March 16, Cannabis Wire reported, although the board did hold several meetings before the shutdown in order to meet its deadline.

Guam is not the only jurisdiction facing delays in the launch of its adult-use cannabis market; lawmakers in Mexico have asked for the extension of an April 30 deadline to draft a bill that would legalize and regulate medical, adult-use and industrial cannabis, and Maine announced last week that its adult-use cannabis market launch has been indefinitely postponed due to safety concerns stemming from the COVID-19 pandemic.

Washington, D.C. Mayor Muriel Bowser and the D.C. Department of Health announced an emergency rule April 14 that temporarily allows medical cannabis dispensaries to provide delivery and curbside pickup services to their patients, according to The Washington Times.

The new rule takes effect immediately and will remain in effect for 120 days or until 45 days after the public health emergency ends, whichever comes first, the news outlet reported.

Medical cannabis dispensaries have been classified as health care facilities and deemed essential businesses under Bowser’s order in response to the COVID-19 pandemic.

D.C. joins several states, including Ohio, Oregon and Nevada, in allowing dispensaries to offer delivery and/or curbside pickup options in response to the coronavirus.

Endocanna Health began setting up its science board earlier this year to connect its genetics technology with emerging research on how different cannabis chemovars interact with the endocannabinoid system. The goal is to meet the needs of cannabis patients and consumers alike with peer-reviewed research, the very vanguard of our understanding of this plant. 

With genomic testing similar to genealogy companies like 23andMe, Endocanna can link a person’s endocannabinoid system with particular chemovar profiles that will provide him or her with desired effects (sleep aid, hunger, pain relief, etc.). Dr. Ethan Russo, author of “The Case for the Entourage Effect and Conventional Breeding of Cannabis,” published in Frontiers in Plant Science, has joined Endocanna Health’s science board to help advance this testing. The board’s goal is to help bring complicated scientific concepts to the broader marketplace. 

“We hear a lot these days in society about individualized medicine,” Russo says. “That would be the idea that we can’t always use one-size-fits-all approaches. That is particularly true in relation to the endocannabinoid system.”

Short of expensive, invasive scans that would determine a person’s “endocannabinoid tone” (the state and health of their endocannabinoid system), a patient or customer can learn more about chemovar efficacy by pairing his or her own genomic data against different cannabis chemical profiles.

As the industry learns more and more about the endocannabinoid system, Russo says it seems clear that individualized treatments will become more common.

“Given that the endocannabinoid system is important in every aspect of physiology it’s very easy to understand how it would similarly be a factor in many different disease processes,” Russo says. “That is a partial explanation as to why cannabis is suddenly used to advantage in so many different conditions.

Lafayette, Colo., (April 13, 2020) – PRESS RELEASE – urban-gro, Inc., an engineering design services company that integrates equipment systems into indoor cannabis cultivation facilities around the world, has announced gro-care, a virtual support solution for cultivator equipment and facilities across North America.

The gro-care Managed Services offering focuses on preventing downtime while driving business continuity for cultivation facilities via remote monitoring, optimizing yields and labor resources with staff training and workflow audits, and minimizing avoidable emergencies through offsite support from urban-gro’s team of experts in maintenance, commissioning, design, IPM, procurement, and IT engineering.

The urban-gro gro-care monthly subscription includes the following suite of solutions:

Remote Engineering: A dedicated team of maintenance and cultivation experts help customers set, monitor, and analyze all types of digital cultivation equipment, from fertigation controllers to HVAC equipment.Resource Optimization: Our cultivation space planning team will help customers to assess labor allocation after reductions/expansions in workforce, while taking on non-core tasks, like product procurement, recurring consumable purchasing, setting maintenance schedules, and more.IPM Support: urban-gro’s team of plant scientists help customers integrate proactive plans to prevent pathogen emergence, with recommendations for nutrients and pesticides that have been screened by the compliance team.Commissioning: Our commissioning personnel will support your team by both teaching them how to operate and repair equipment in your cultivation, as well as providing troubleshooting support, by leveraging our years of experience with a diverse set of assets.

“The COVID-19 pandemic has required everyone to act quickly to ensure the safety of their employees and their communities. As a North American leader in complex equipment systems, urban-gro quickly recognized that we needed to change our approach to business,” remarks Bradley Nattrass, CEO of urban-gro. “I asked our leadership, operations and cultivation teams to create a solution that will work in today’s world of social distancing.  As the saying goes ‘necessity is the mother of invention’ and today we offer gro-care to our customers in the United States and Canada. The gro-care team will operate virtually while our design, engineering and Environmental Sciences divisions continue to operate efficiently during the pandemic.”

“The gro-care service gives our customers the ability to leverage all of urban-gro's expertise through a monthly subscription, at a fraction of the cost of full time, in house operations,” says Colin Ferrian, Director of Enterprise Solutions. “From setting up and operating your environmental controller, to sourcing compliant products that help protect our customers’ crops from powdery mildew, we will equip our customers to handle issues remotely.”

As 2019 came to a close, tens of thousands of customers across multiple U.S. cannabis dispensaries were impacted by a data breach linked to a point-of-sale software company.

Cannabis businesses are particularly vulnerable to cyberattacks due to the vast amount of personally identifiable and protected health information that they are required to collect and store, as well as any trade secrets they maintain in their company databases.

Here, HUB International, an insurance broker that provides business and personal insurance as well as employee benefits across North America, outlines some cybersecurity best practices for cannabis cultivators and distributors to help them combat cybercriminals.

1. Limit the number of people that have access to your secret sauce.

This is especially important when sharing details with third-party vendors. When workers are harvesting crops, or a cultivator is renting land from farmers and planting on it, proprietary information should be kept in the hands of just the few who need it—and no one else.

2. Secure your R&D process.

If cultivators have created a cannabis formula that boosts energy, or reduces anxiety or pain, these “recipes” are their intellectual property—it’s what gives them a competitive advantage. Growers should consider the way they store the information behind the R&D of their cannabis crops. Is it on an electronic file, or a computer desktop? What type of credentials do people need to access it? While most businesses will use a third-party cloud service, many growers maintain their own servers because of this risk.

In the latest of a series of layoffs in the cannabis industry, Canadian LP Canopy Growth announced the closure of two greenhouse facilities and the elimination of roughly 500 employees in British Columbia.

When these significant events occur in a turbulent marketplace, businesses should consider their employee hiring and termination practices to avoid employment discrimination and wrongful termination lawsuits.

While it may be tempting for businesses to hastily hire staff and launch their operations, traditional human resources functions should not be forgotten. Establishing policies and procedures for hiring and terminating employees is critical to protect businesses from employment practices liability (EPL) claims, according to HUB International, an insurance broker that provides business and personal insurance as well as employee benefits across North America.

Here, the company outlines seven best practices for hiring and terminating employees.

1. Build out a formal onboarding process.

Cannabis businesses should take the hiring process out of the hands of a single individual and create a uniform process that can be replicated as the company grows. Make sure the process is the same, whether the company is hiring a cultivation technician or an accountant. Businesses should know and comply with their state’s employment regulations. For multi-state operators, the policies and procedures will have to include those of all states in which the business operates. Companies should consider their employee base and the protected classes they may belong to; for example, businesses with more than 50 employees are subject to Family and Medical Leave Act and other regulations.

Across many jurisdictions, cannabis businesses have been deemed essential and are required to stay open as states respond to the COVID-19 pandemic. This unprecedented situation has changed the way cannabis businesses operate.

While business owners should of course follow all applicable federal, state/provincial and local guidelines, here are some additional best practices for cannabis cultivators and dispensaries to navigate these uncertain times.

For Cultivators

First and foremost, cultivation operations should review personal hygiene requirements and provide refresher training for their employees. The current production sanitation procedures should also be reviewed and adjusted to focus on high touch points or any potentially contaminated surfaces that are not currently addressed in the existing protocols.

Management should review the company’s sick policy with employees and let them know that they cannot work while sick. Ensure employees are washing their hands with soap and water frequently, and review the policy on wearing gloves. There should be an adequate supply of gloves, masks and other personal protective equipment for all employees.

Non-production equipment—such as phones and keyboards—should be also sanitized often, and a bio-hazard plan should be implemented.

Digital guide issued as a tool for law enforcement, practitioners, and the public DISTRICT OF COLUMBIA: The U.S. Drug Enforcement Administration has released the 2020 edition of Drugs of Abuse, A DEA Resource Guide, which is designed to be a reliable resource on the most commonly abused and misused drugs in the United States. Released on a periodic Read the full article...

Edibles are already a staple of many people’s cannabis lineup, and lately, due to the pandemic, some may even be choosing to forgo smoking entirely and switch to edibles due to health concerns.

Much like rice, pasta, and toilet paper, perhaps you’re thinking about stocking up on enough edibles to last through your period of self-isolation, but unlike the former, edibles tend to be perishable.

So you may be wondering -- how long do edibles stay fresh?

Click here to read the complete article 

Ray Lland ~ Leafly.com ~ 

Maine's marijuana czar says launching the adult-use industry by June is 'simply unrealistic.'

The coronavirus pandemic has compelled Maine to put its planned June debut of the state’s long-awaited recreational cannabis market on indefinite hold.

“It now appears as though a spring launch of Maine’s adult use industry is simply unrealistic,” said Erik Gundersen, the director of the Maine Office of Marijuana Policy.

Click here to read the complete article

Penelope Overton ~ Portland Press Herald ~ 

As confirmed coronavirus cases have passed 500,000 in the U.S. and the country enters a likely recession, lawyers around the country are filing civil complaints against businesses, citing hardships from the coronavirus outbreak or related actions that businesses took—or didn’t take—in response. Among them are allegations on behalf of cruise passengers who had contracted COVID-19, eventgoers that haven’t received refunds for canceled events and travel; and an employee of a Walmart near Chicago who died after contracting the virus.

Kent Schmidt, a partner at Dorsey & Whitney and author of the Left Coast Law blog, said he receives an alert whenever a lawsuit including the words “coronavirus” or “COVID” is filed in the country. Although he hadn’t received any filings related to cannabis and the coronavirus as of April 9, he said he receives about 20 alerts per day.

Cannabis Business Times spoke with Schmidt and Mike Sampson, partner in Reed Smith’s Insurance Recovery Group and co-vice chair of its Cannabis Law Team, about some of the most common types of claims that have come up in recent weeks and that could affect the cannabis businesses.

Consumer claims

Businesses need to be aware of decisions that could lead to injury, Sampson said. “If the state says you can only have no more than 10 people gathering, but you decide that you don't care about that and there's 100 people in your store at a time and somebody gets sick, that's the type of bad judgment that can lead to a third-party claim,” he said.

If a consumer becomes ill after using a certain product and makes a product liability claim, Sampson said it’s likely that dispensaries, cultivators and other brands and companies in the supply chain could get sued.

To protect themselves against these claims, businesses need product liability insurance, which is sometimes a component of commercial general liability (CGL) insurance.

As anyone in the agricultural community will attest, weather plays a huge role in the success or failure of a crop. However, Mother Nature is not the only factor, and there are many steps growers can take to plan and be ready for whatever conditions the season brings. Luke Burmeister, Colorado, Oklahoma and New Mexico territory sales manager for Keirton, a provider of professional cannabis and hemp trimmers, explains why diversifying end products is important and how good planning, preparation and automation can help growers maximize their harvest.

Q: What are the most common methods for harvesting hemp and outdoor cannabis?

A: There are two sides of hemp. You can do milling for hemp fiber and biomass, or you can [trim] it, implementing bucking or trimming machines to [extract] CBD from hemp flower. Hemp flower has been in such high demand right now; for instance, in Colorado, we’re seeing price per pound going right around that $300 to $400 per pound range for top shelf, premium CBD hemp flower. For the milling process, you’re taking the whole plant, molting it down to biomass for plastics, fiber pellets or hemp concrete, insulation for homes, the car industry, furniture, toilet paper, Tupperware; there’s a lot you can do with biomass. In Colorado right now, biomass is [priced] right around that $25 to $35 a pound range. So, there’s some variation on getting the most you can out of your crop if it’s an outdoor facility with a very high plant count with hemp rather than cannabis.

Q: How can cultivators determine what portion of their hemp crop should be allocated to CBD extraction versus biomass?

A: There are various hemp products, so it’s crucial to understand which end product provides the most value, what your end goal is and how you are going to achieve it before the harvest begins. Be realistic, have some diversity in your crop, and have a pretty set schedule and attainable goals before harvest begins. If you’re dealing with a crop that’s say 10 acres, and it’s got maybe 5,000 to 8,000 plants per acre, you want to have realistic goals. If you’re growing the hemp flower, only a portion of that I would designate to the actual CBD from the flower, the medicinal product you can make from that, which can include oils/edibles, skin care products, pet products. And then take a small portion of that and use that specifically for medicinal [products], and the rest for biomass milling.

Q: What are the benefits of trimming a harvest instead of straight milling, other than the fact that you’d be able to diversify your end product and extract CBD from the hemp flower?

A: If you are a farmer, you want to utilize your crop to full advantage. You're racing against the clock with Mother Nature; in Colorado for instance this year, we had an early snow that hit [in early October], so you’re racing against the clock to take down your harvest at the end of that flower cycle and schedule. [You have to consider] the ROI on how much man labor you’re going to have on your farm–that makes a big impact too. If you’re an outdoor cultivator, it’s typically mid-September to the end of October that you’re pulling down your plants and harvesting, so you’re not only racing the clock, you’re determining how many people you’re going to have to have to bring all this down. If the weather decides to turn, it’s go time.

Q: What automation technology is available to cultivators to manage this time crunch, and what are the benefits?

A: Implementing automation at the end of the day to save costs is huge. With hemp, you have such a higher plant count than you would for cannabis. With hemp, [growers] are growing on tons of acres. [With automation], you’re cutting down your man-labor cost but also production time, especially when you use automated machines for bucking the plant, which is just taking stocks, putting them into our bucker, and debucking the flower strictly off the stock. One person can [buck] 15 pounds an hour, (3 pounds of dry weight, 15 pounds of wet weight), so about 120 pounds of debucking one person can do per day. Using a bucker, [the machine can process] approximately 150 pounds per hour and 1,200 pounds a day in an eight-hour shift, with one person working that machine. That’s the advantage. With hand trimmers, whether it’s cannabis or hemp, even some of your best hand trimmers out of [Northern California] can do a pound a day. Depending on what machine you use, our best machine, the T-Zero, is capable of doing 600 pounds of wet product per hour or 200 pounds of dry product per hour with three people operating the machine.