MjLink Cannabis Business News and Press

As the cannabis industry expands to a commercial scale, some operators in the market are searching for more efficient alternatives to hand trimming. Cultivators are turning to automated trimming technology to reduce labor costs, increase throughput and improve product consistency. Some machines can even increase an operation’s overall efficiency and improve workflow, although the biggest benefit, according to Josh Evans, head of engineering at Keirton, a provider of professional cannabis and hemp trimmers, is the processing power of today’s technology.

“The biggest challenge is the throughput—the amount of processing that needs to be done,” Evans says. “It typically takes one person a full day to trim one to two pounds of dry flower. … With our equipment, depending on the machine, we can do that in an hour or less than a minute. The biggest thing is just scale of your processing ability. With our large trimmer, T-Zero, we’ve done over 100 pounds an hour, where to do 100 pounds would take over 100 people all day long.”

Consistency is also a challenge when it comes to trimming, he adds. “If you have 100 people doing the trimming, you don’t always get the same output. You don’t get the same consistency in your product. You have one person that doesn’t trim it the same as another person, so you don’t get that consistent look and feel of your flower all the time. When you move over to automation, that’s one of the big benefits, is you can have the same look in every lot and you just continue to do the same process.”

Automating the trimming process can also significantly reduce an operation’s labor costs by decreasing the size of the workforce, Evans says. “If you typically need 100 people to trim 100 pounds in a day, [technology] can do that in an hour with only four or five people. So, if you’re paying an average [of] $25 an hour, that’s going to be a pretty big expense versus the equipment.”

How to Choose the Right Equipment for Your Facility

When selecting an automated trimming solution, cultivators should first determine how much material they need to process per day, Evans says. “You don’t want a massive facility with a small, little machine that can only do 30 pounds an hour. [Understand] your outputs or what your requirements are for processing and [match] the machine up to that.”

TORONTO, April 14, 2020 /CNW/ - PRESS RELEASE - The Green Organic Dutchman Holdings Ltd. (TGOD), a producer of premium certified organic cannabis, has announced that it has signed a letter of intent with the Société québécoise du cannabis (SQDC) ahead of the upcoming launch of its lineup of teas made with only certified organic ingredients.

"Entering the Quebec market is an important milestone for TGOD as we continue ramping up sales and production volumes," commented Brian Athaide, CEO of TGOD.  "Our teas leverage the same fast-acting technology used for TGOD Infusers, and a proprietary know-how, which eliminates the need to use sugar when infusing cannabinoids in whole leaf teas.  Our Science team successfully developed a lineup of great-tasting tea blends that are organically grown and sustainably sourced."

As Canada's second largest province, Quebec plays an important role in TGOD's national roll out strategy.  The company now has agreements in place with every province except Prince Edward Island, with plans to broaden the portfolio of products offered as it ramps up production.

Denver City Council approved a new cannabis research and development license April 6 as part of the city’s efforts to update its cannabis laws, according to a report from Denverite, an affiliate of Colorado Public Radio.

The city council voted 12-1 to approve the new R&D license, which will allow studies involving the plant, the news outlet reported.

"We think it’s an important license type,” Ashley Kilroy, executive director for the Denver Department of Excise and Licenses, told Denverite. “It will help to continue to keep Denver at the forefront of marijuana legalization and preserve our reputation as a leader in the regulated cannabis industry.”

Denver City Council also approved a lottery cap for new dispensary licenses April 6 and plans to eventually roll out a social equity plan as part of its updated cannabis rules, Denverite reported.

The Treasury Inspector General for Tax Administration published a March 30 report that shed light on pertinent changes for cannabis businesses. From the jump, no, IRS Code 280E isn’t going anywhere just yet. 

“Industry sources projected that the U.S. legal marijuana industry took in nearly $11 billion in sales in 2018 and are expected to rise to $13 billion in 2019 and $25 billion by 2025,” according to the report, which cites the ongoing wave of state legalization measures. This business boom is leading to more interest on the part of the IRS.

The report does lay out two important points that business owners should note in the midst of tax season. For one, cannabis business owners should expect renewed pressure for records and tax audits in the future. The report cites millions of dollars left on the table and a generally high rate of “noncompliance” with 280E among cannabis businesses on the West Coast. In the 2016 tax year, “the IRS could have issued $48.5 million in tax assessments,” according to the report. Extrapolate that across the next five years, and the report warns the IRS that $242.6 million could be escaping the federal government’s grasp. And that’s just Washington, Oregon and California.

The report stresses that other areas aside from those legacy markets out West deserve further scrutiny, as well, now that cannabis markets are maturing in places like Massachusetts and Illinois. The title of the report, after all, is “The Growth of the Marijuana Industry Warrants Increased Tax Compliance Efforts and Additional Guidance.”

“They found that there were a lot of errors with the way tax returns were being prepared in a number of states,” Rachel Gillette, partner and chair of Greenspoon Marder’s Cannabis Law Practice, says. “The long and short of it is that, it appears, the industry should plan for more audits—not fewer audits—in the future.”

The second point is that the Tax Cuts and Jobs Act of 2017 may have opened the door to some tax relief for small cannabis businesses.

CHICAGO and VANCOUVER, British Columbia, April 06, 2020 (GLOBE NEWSWIRE) -- PRESS RELEASE -- Green Thumb Industries Inc. (GTI), a national cannabis consumer packaged goods company and owner of Rise and Essence retail stores, has announced that Armen Yemenidjian has stepped down from his role as president in order to spend more time with his family in Nevada.

Yemenidjian will continue to work with the company for the next six months to ensure a smooth transition, particularly focusing on Green Thumb’s business in Nevada and California.

“Armen is an early pioneer in the industry and built a great company that we acquired and integrated into our business last year,” said Green Thumb Founder and Chief Executive Officer Ben Kovler. “I am grateful to Armen for the contributions he made to the company, and I look forward to working with him during the transition period.”

“I am committed to helping the company do what it takes to continue to achieve its goals. I intend to continue to be a substantial long-term shareholder of Green Thumb,” said Yemenidjian.

The list for pesticides that can be used on cannabis without being a violation of the Pesticide Applicators' Act has been updated. Please note the following products have been added:

CrestLifeGard WGMammoth CannControlPromoteSugar Mover PremierThymox Control Organic Fungicide and Bactericide ConcentrateTyphoonWeed Warrior Concentrate Grass and Weed KillerWeed Warrior Concentrate Grass and Weed Killer (Ag Use)Wizard's Brew Concentrate

To view the updated list, click here for a pdf or click here for an Excel form. For questions regarding this change, contact Laura Quakenbush at (303) 869-9060 or email [email protected].

The Colorado Department of Agriculture (CDA) is currently reviewing pesticide labels upon request and maintaining a list of products whose label it has reviewed that it believes could be used on marijuana without violating 35-10-117(1)(i), as long as the applicator follows the label directions.

RELATED: How Colorado Maintains Its List of Approved Pesticides for Cannabis Crops

Please be sure to review the list; pesticide products may be removed from the allowed products list if the registrant has not renewed their pesticide product with the department. Use of unregistered pesticides on cannabis would be a violation of the Pesticide Applicators' Act.

LAS VEGAS, April 13, 2020 /CNW/ - PRESS RELEASE - Planet 13 Holdings Inc. (Planet 13), a vertically-integrated Nevada cannabis company, has announced the termination of its definitive agreement to acquire a cannabis sales license and lease for a dispensary in Santa Ana, Calif., from Newtonian Principles. The acquisition was terminated due to unmet conditions in the definitive agreement.

"While we are disappointed to be walking away from this expansion, we know that preserving our capital is the right thing to do at this time. We have offered to renegotiate the acquisition with the seller to fairly reflect the delays in closing the definitive agreement and the new macro environment," said Larry Scheffler, co-CEO of Planet 13. "We take comfort knowing that as one of the few operators with a strong balance sheet and a cashflow positive business, we will have plenty of opportunities to expand the Planet 13 brand in the future."

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New Hampshire announced April 10 that it will extend the deadline for patients to renew medical cannabis cards due to the COVID-19 outbreak, according to a New Hampshire Public Radio (NHPR) report.

Patients with cards expiring in April, May and June now have until July 31 to renew them amid concerns that patients will have a difficult time visiting their doctors for recertification, the news outlet reported.

“Hopefully that will ease patients’ anxiety about continuing their access to therapeutic cannabis during this crisis,” Michael Holt, an administrator of New Hampshire’s therapeutic cannabis program, told NHPR.

As of March 31, there were 9,800 patients enrolled in the program, according to the news outlet, and New Hampshire has deemed medical cannabis dispensaries as essential businesses in its COVID-19 response.

Regulators are encouraging patients to designate a caregiver who can pick up their medical cannabis products if they become ill, NHPR reported. The caregiver application fee has been waived, and regulators have implemented a streamlined process for caregivers’ background checks, according to the news outlet.

The league’s new labor agreement eased rules about players’ use and caught up with many sports that had already liberalized their policies.

The 10-year labor agreement between the N.F.L. and players union that was ratified on March 15 is filled with dozens of incremental changes, most notably the one-percentage-point increase in the share of league revenue that the players will receive.

One of the biggest overhauls in the agreement, though, was a change the league had long resisted: loosening the rules governing players’ use of marijuana.

Click here to read the complete article

Ken Belson ~ NYTimes.com ~ 

The Maine Office of Marijuana Policy (OMP) issued a letter to conditional and prospective adult-use cannabis licensees on April 10 that indefinitely postpones the launch of the state’s adult-use market due to the COVID-19 pandemic.

Prior to the coronavirus crisis, regulators planned to open the market in June, but issued a memo last month indicating that the launch could be delayed due to the pandemic.

In its latest update, the OMP cited safety and social distancing concerns in its decision to indefinitely delay the launch of adult-use sales, saying “it now appears as though a spring launch of Maine’s adult use industry is simply unrealistic.”

“Public health experts have clearly communicated that they cannot answer what social distancing or other guidance may be in effect as we approach late spring and early summer,” OMP Director Erik Gunderson wrote in the letter. “Additionally, we have heard from towns and cities, public officials and the general public that they expect that when the adult use program is rolled out, it will be done in a manner that is best in the nation at protecting the public’s health and safety. OMP will not sacrifice those standards.”

Although the OMP indicated in its letter that it is “unable to provide any concrete timelines in these uncertain times,” it said it will keep stakeholders updated on any future developments.

Virginia Gov. Ralph Northam signed legislation April 12 to decriminalize the simple possession of cannabis, according to a WJLA report.

The decriminalization measure, which is an amendment to House Bill 972, reduces the penalty for the possession of up to one ounce of cannabis to a $25 fine. Records and convictions will be sealed under the new law, and employers are now prohibited from looking into past convictions, WJLA reported.

Prior to the new law, those convicted of cannabis possession could face a 30-day jail sentence and a fine up to $500 for the first offense.

“Virginians have long opposed the criminalization of personal marijuana possession, and Gov. Northam’s signature turns that public opinion into public policy,” NORML Development Director Jenn Michelle Pedini, who also serves as the executive director of the state affiliate, Virginia NORML, said in a public statement.

The legislation also establishes a workgroup to study the impact of adult-use cannabis legalization in the state, according to WJLA, and Northam has requested a report from the workgroup by Nov. 30, 2021.

Marijuana and yoga can, singularly or in tandem, affect a sense of enhanced body awareness — and who couldn’t use a little happiness booster?

n a 2001 Time Magazine article, The Power of Yoga, Dr. Timothy McCall, author of Examining Your Doctor: A Patient’s Guide to Avoiding Harmful Medical Care said: “One lesson of the alternative health-care movement,” McCall warns, “is that the public is not going to wait for doctors to get it together.”

This could not be truer both of marijuana and yoga.

Click here to read the complete article

Errin Reaume ~ CannabisNow.com ~ 

The state is the 27th to decriminalize or legalize marijuana.

On Sunday, Gov. Ralph Northam (D) announced he signed a bill that will eliminate jail time for simple marijuana possession, leaving only a civil penalty with a fine in place for the first offense.

Northam previously said decriminalization was a priority for him, and the newly elected Democratic-controlled legislature soon followed his lead.

Click here to read the complete article

German Lopez ~ Vox.com ~ 

House Bill 972 decriminalizes simple possession of marijuana and creates a $25 civil penalty VIRGINIA: Governor Ralph Northam has signed into law criminal justice reform legislation that he proposed in January. The package includes measures raising the felony larceny threshold; permanently eliminating driver’s license suspensions for unpaid fines, fees, and court costs; raising the age of Read the full article...

CALIFORNIA: Endocanna Health, a research and development biotechnology company specializing in endocannabinoid DNA testing and precision cannabinoid formulations, announced today Dr. Ethan Russo, world renowned cannabinoid research contributor, has joined Endocanna Health’s Scientific Board (“Science Board” or the “Board”) as Chairman to lead the Board in clinical research both internally and with external partners. “We Read the full article...

CHICAGO--(BUSINESS WIRE)--PRESS RELEASE--Cresco Labs, one of the largest vertically integrated multistate cannabis operators in the United States, has announced it is hiring retail positions for its Sunnyside dispensaries throughout Illinois in an effort to shore up its teams and provide patients and customers in its communities with the cannabis products they need. The company will focus recruitment efforts on local industries significantly impacted by COVID-19, including hospitality and restaurant service workers. In addition, the company has added an essential pay program and additional support to current employees working in cultivation centers, distribution facilities and dispensaries.

Charlie Bachtell, Cresco Labs’ CEO and co-founder, said, “The COVID-19 pandemic has altered the daily lives and disrupted the livelihoods of everyone in this country, with some communities, groups and individuals impacted more than others. As the states in which we operate have acknowledged cannabis as an ‘essential’ industry, we understand Cresco’s responsibility to continue operations, to be stewards of this industry and to be leaders in our communities. Cresco has a culture that focuses on, and prioritizes, the needs of all stakeholders – we are committed to do our part to maximize our impact and help those most affected by these unfortunate circumstances.”

Cresco Commits to Hire Displaced Service Industry Workers

Cresco will focus on hiring and training restaurant industry and hospitality service workers who have recently lost their jobs for 250 full-time positions at its Sunnyside dispensaries, including wellness advisors, inventory managers, managers, assistant managers and security personnel. The company is partnering with hospitality companies across the state to promote this opportunity to their employees affected by the COVID-19 pandemic.

“During this time where the needs of patients and customers in Illinois is growing and demand continues to outpace supply, the ability for Cresco to continue to employ a robust workforce will ensure that medical patients and Illinois residents continue to have essential access to the products they rely on daily for their wellbeing,” said Bachtell.

EDMONTON, April 13, 2020 /CNW/ - PRESS RELEASE - Aurora Cannabis Inc., a Canadian licensed producer, has provided an update related to its balance sheet flexibility, business transformation initiatives and COVID-19 operational response plans.

Strengthened Cash Position:

Aurora has provided an update on its liquidity position:

(Unless otherwise stated, $ in Canadian dollars)

As of March 31, 2020, the company had approximately $205 million of cash. This includes all amounts raised under the existing, and now completed, US$400 million At-the-Market Offering program (ATM), initially announced in May 2019. Under the ATM, the company issues common shares at prevailing market prices without any new issue discounts, warrants or other dilutive securities; and To support the strength of the company's balance sheet and provide continued access to equity capital, the company today stated that it intends to file a new prospectus supplement for a renewed ATM program, to enable Aurora to raise additional equity capital pursuant to its outstanding base shelf prospectus dated May 14, 2019 under which approximately US$350 million remains available. The company intends to use a portion of this available capacity to provide further balance sheet strength and preserve flexibility given macroeconomic uncertainty caused by COVID-19.

Business Transformation Update:

When the team at Torrey Holistics realized that health care workers on the frontlines of the COVID-19 pandemic were in dire need of face masks and other necessary medical supplies, co-owner Tony Hall leveraged his background in chemical and safety supplies to help fill the gap.

Since mid-March, Hall and Torrey Holistics co-owner Doug Gans have donated more than 7,000 N95 face masks and more than 10,000 units of hand sanitizer to various health centers and local organizations, as well as to the San Diego-based dispensary’s staff and customers.

The Torrey Holistics staff is wearing masks and gloves to serve customers during the COVID-19 outbreak.

“[We] were just hearing all these stories from doctors and nurses who were having to reuse their masks, and how dangerous that was,” Ruthie Edelson, Torrey Holistics’ marketing director, told Cannabis Business Times.

The Torrey Holistics team visited six different hospitals and health clinics, including the American Red Cross, VA San Diego, Family Health Centers of San Diego, Scripps Hospital, UCSD Jacobs Medical Center, St. Paul’s Senior Services and Remedy RX, to deliver the supplies personally.

In addition, Torrey Holistics is distributing free hand sanitizer to its curbside pickup and delivery customers.

This week, the U.S. Drug Enforcement Administration (DEA) descheduled GW Pharmaceuticals’ Epidiolex, an anti-epileptic drug that contains cannabidiol (CBD). Elsewhere, a coalition of U.S. senators sent a letter to leadership asking that cannabis businesses qualify for loans and other federal relief programs in the wake of the COVID-19 crisis.

Here, we’ve rounded up the 10 headlines you need to know before this week is over.

Federal: Global Cannabinoids, one of the largest retailers of American-grown hemp and CBD, has transitioned its operations to hand sanitizer production to address the supply shortage during the COVID-19 pandemic. The company has formed a new entity, Global Sanitizers, and its line of hand sanitizers is now being sold to big box retailers under the “Medically Minded” brand. Read moreEffective immediately, the DEA has descheduled GW Pharmaceuticals’ Epidiolex, an anti-epileptic drug that contains CBD, in a move that may foreshadow a future of pharmaceutical drugs that contain the compound. Initially, following approval from the DEA in 2018, Epidiolex was listed under Schedule V. Read moreThe COVID-19 pandemic has had a significant impact on the day-to-day operations of cannabis cultivators, dispensaries and industry suppliers, according to recent survey conducted by Cannabis Business Times at the end of March. More than half of participants (54%) responded “a great deal” or “a lot” when asked “How much of an impact has the COVID-19 outbreak had on your operation?” Read moreA coalition of U.S. senators sent a letter to leadership, asking that the Small Business Administration (SBA) extend economic assistance to the cannabis industry. Last month, President Trump instructed the SBA to allocate $50 billion to low-interest loans to help small businesses during the COVID-19 pandemic, but cannabis businesses were excluded from these relief efforts. Read moreIndiana University researchers have presented data that suggest cases of electronic cigarette or vaping-associated lung injury (EVALI) are more prevalent in states that do not have adult-use dispensaries. The study was published in JAMA: The Journal of the American Medical Association on April 6 by researchers from Indiana University’s School of Medicine and O’Neill School of Public and Environmental Affairs. Read moreOhio: The Ohio Board of Pharmacy has issued new guidance that allows the state’s medical cannabis dispensaries to offer curbside pickup to their customers during the COVID-19 crisis. Under the new rules, retailers can conduct medical cannabis sales in their parking lots or on the sidewalks outside of their stores, so patients do not have to enter the dispensary or even leave their cars. Read moreArizona: Smart and Safe Arizona—a campaign that aims to place a cannabis legalization imitative on the state’s November ballot—is one of four ballot initiative campaigns in the state that filed a petition to ask the Arizona Supreme Court to allow the campaigns to gather electronic signatures amid the COVID-19 crisis. The petition asks the court to allow Smart and Safe Arizona, Arizonans for Second Chances, Invest in Education, and Save Our Schools Arizona to collect signatures digitally through E-Qual, the state’s online signature collection platform. Read moreColorado: Charlotte Figi, the young girl whose medical condition inspired the Stanley Brothers to develop the low-THC strain Charlotte’s Web, has died due to COVID-19 symptoms at the age of 13. “Charlotte is no longer suffering,” photographer Nichole Montanez wrote on behalf of the Figi family. “She is seizure-free forever. Thank you so much for all of your love.” Read moreCanada: In an April 6 statement, the Business Development Bank of Canada (BDC) issued a statement to clarify that all legal businesses—including cannabis businesses—will be eligible for the Business Credit Availability Program (BCAP), which includes access to the Canada Emergency Business Account and the SME Loan and Guarantee Program. Last month, Canadian cannabis operators were outraged when Export Development Canada (EDC) and the BDC initially said that the industry would not qualify for business loans and other assistance aimed at boosting the economy during the COVID-19 crisis. Read moreOntario’s cannabis retailers are allowed to reopen with delivery and in-store pickup services under an April 7 emergency order. This is welcome news for dispensaries that were told last week that they had been removed from the province’s list of essential businesses, which effectively shut the stores down until further notice. Read more

The change will help customers and store owners while helping to fight the cannabis black market, the government said.

The government of Ontario’s decision that marijuana stores are an essential service was good news for Hobo Cannabis Co. in Ottawa.

The B.C.-based chain had opened two stores in Ottawa in the past two weeks, only to have them shut down on April 4 after the province narrowed the list of essential businesses that can remain open during the COVID-19 pandemic.

Click here to read the complete article

Jacquie Miller ~ OttawaSun.com ~