MjLink Cannabis Business News and Press

Normally active, social people around the world have been forced to socially isolate themselves in light of the coronavirus pandemic, making this a great time to catch up on that reading list.

For years, cannabis buffs had cult classics like Jorge Cervantes’ Growing Marijuana and the beloved cultivation anthologies from Ed Rosenthal. Now, in a post-legalization world, the cannabis enthusiast’s library has grown exponentially.

These books could provide entertainment and activities for the remainder of your social isolation.

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Cara Wietstock ~ Ganjapreneur.com ~ 

Take-out for weed? In the wake of coronavirus outbreak, OLCC is temporarily allowing marijuana retailers to do curbside delivery.

Restaurants, coffee shops, bars, gyms and movie theaters have all been forced to close under Oregon Governor Kate Brown’s executive order, while many other types of business chose to shutter for the foreseeable future to prevent the spread of COVID-19.

But one blossoming industry in Oregon is still up and running, allowed to stay open under the governor's order so long as social distancing guidelines are followed.

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Morgan Romero ~ KGW.com ~ 

The state allowing pot shops to stay open despite a “stay-at-home order” that closed other businesses is “a sign of how far we’ve come on this issue,” one advocate said.

Throngs of high-minded shoppers started flooding pot dispensaries when sales of recreational weed kicked off in Illinois at the start of the year.

Less than three months later, that type of mass clamoring is strictly forbidden as social distancing measures have been put in place to quell the spread of the novel coronavirus. I

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Tom Schuba ~ Chicago Sun Times ~ 

SANTA ROSA, Calif.—March 27, 2020—PRESS RELEASE—Emerald Harvest, the global hydroponics nutrient manufacturer, has joined the battle against COVID-19 with several initiatives aimed at aiding the community, local government and national health organizations.

CEO Rob Higgins is offering the company’s facilities and capabilities to the World Health Organization, the Center for Disease Control and the government of California for storage, supply staging or medical use.

“We have space in California that we are making available in anticipation of any potential need,” Higgins said. “We also have a state-of-the-art mixing and bottling facility that we can set up to help where we can.” Emerald Harvest’s production equipment includes deionized water systems, UV water treatment, an on-site lab and analysis capability. “We deal with chemicals and hygiene procedures every day. If someone needs our capabilities, we can help.”

Emerald Harvest recently acquired a new 20,000-square-foot warehouse to accommodate higher production. The company’s distributor, Hawthorne Gardening (a division of Scotts Miracle-Gro Company), has offered to remove all inventory from this warehouse to free up usable space.

Located in Santa Rosa, Emerald Harvest is no stranger to community assistance during public emergencies. California has recently borne the brunt of devastating wildfires.

Despite it being the first full year that hemp cultivation was legal in the U.S., 2019 was a tough year for many along the supply chain.

Denver-based cannabidiol (CBD) giant Charlotte’s Web can attest to that, especially for the tail-end of the year. The company’s latest earnings report shows it lost $18.8 million in Q4 of 2019, a steep tumble from the $3.2 million in net income it earned in the same period the year prior.

The story for the full year includes another substantial fall. The company reports a loss of $15.6 million for all of 2019, compared with $11.8 million net income in 2018—a 232% decrease from the year prior. 

During a recent earnings call, CEO Deanie Elsner attributed the Q4 loss to a slowdown of growth in the food/drug/mass (FDM) retail channels because of regulatory uncertainty, as well as an oversaturation of products in the market.

In December of 2019, the U.S. Food and Drug Administration (FDA) issued several warning letters to CBD companies for violating labeling regulations. Afterward, the FDA issued a consumer update, where it questioned the safety of CBD and emphasized that it has only approved one form of the cannabinoid for market.

Like other companies, Elsner said those comments had resounding consequences and caused consumers to pull back “across all channels.”

San Diego, CA – March 17, 2020 — PRESS RELEASE — Agnetix, a digital horticulture lighting company with world benchmarks in energy efficiency, light output and intelligent data insights, has announced the appointment of Sanaz Jarolmasjed, Ph.D. to the new role of Director of Biological and Machine Vision Systems.

Jarolmasjed is a biosystems agriculture engineer and data scientist with unique experience applying machine learning models and leading teams to solve challenging problems in business, horticulture and research settings. Together with Agnetix co-founder and CTO Dr. Ihor Lys, Jarolmasjed will lead the scientific and technical development of the Agnetix data insights platform that will bring a new level of innovation to global horticulture markets. 

“Dr. Jarolmasjed hyper-focused expertise in the areas of deep learning, AI and image processing aligns perfectly with the Agnetix vision and technology roadmap,” said Lys, “She will lead a first-of-its-kind multi-spectral imaging and algorithm program that will propel the future of horticulture.”

Jarolmasjed is also an established contributor to machine learning research with nine peer-reviewed publications and over 300 citations. For more information, visit www.agnetix.com or contact Agnetix at [email protected] to learn more.

A new study has revealed that most legal marijuana products supplied to medical dispensaries are significantly higher in strength than recommended levels for the treatment of chronic pain.

In a study published this week in the journal PLOS ONE, scientists at the Wake Forest School of Medicine announced that over 90% of legal marijuana products are far more potent than clinical tests recommended they should be.

An estimated three and a half million people in the US take medical marijuana for various reasons. 

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Sarah Moore ~ News Medical ~ 

The COVID-19 pandemic is forcing governments worldwide to take drastic measures to “flatten the curve” and reduce economic fallout, and Canada is no exception. The Great White North closed its border with the U.S. for all non-essential travel (goods are not included in that shutdown), shuttered schools, colleges and universities across the country, and provinces are taking steps to stop all non-essential businesses.

The Canadian cannabis industry, for the most part, can operate as normally as it can. Dispensaries are conducting business with social distancing measures in place, deliveries can be made—although Canada Post will no longer deliver cannabis packages to purchasers’ homes, opting instead for postal office pickup to minimize delivery person exposure—and cultivation sites continue to operate. 

Both the Quebec and Ontario governments have deemed cannabis cultivation and retail businesses “essential” to the marketplace and, as such, can remain open during each province’s mandatory shutdown. Other provinces such as Alberta are considering similar proposals. 

Some companies, however, are taking extra steps to ensure their employee’s, patients and consumers safety. For example, Canopy Growth, a vertically integrated LP, closed its retail storefronts on March 17. “We have a responsibility to our employees, their families, and our communities to do our part to “flatten the curve” by limiting social interactions. For us, that means shifting our focus from retail to e-commerce,” said David Klein, Canopy’s CEO, in a press release. “This is a big decision but it was also an easy one to make – our retail teams are public-facing and have been serving an above-average volume of transactions in recent days. Given the current situation, it is in the best interest of our teams and our communities to close these busy hubs until we are confident we can operate our stores in the best interest of public health.” 

The company is keeping its cultivation operations open but is asking that all employees who can work remotely do so, said Canopy’s VP of Communications Jordan Sinclair in a March 24 email to CBT. The company recently closed facilities in Aldergrove and Delta, British Columbia, and scrapped plans for a third greenhouse at its Niagara-on-the-Lake location in Ontario, both unrelated to the COVID-19 outbreak.

Amid a reported surge in demand, Aurora Cannabis’ “production facilities remain fully operational and … have not experienced any disruptions to regular operations, including [to the] existing supply chain,” said Michelle Lefler, Aurora’s VP of Communications in a March 20 email to CBT. The company is taking steps to mitigate risks, Lefler said, including “implementing good hygiene practices and illness prevention measures across our organization.”

As the economic damage from the coronavirus pandemic piles up, U.S. cities and states are set to face significant lost revenue given the loss of business activity.

But, as DataTrek Research’s Jessica Rabe writes in a note, “there’s a simple and effective solution for states and cities to help cover their huge budget shortfalls after the COVID-19 pandemic subsides: legalize recreational sales of marijuana.”

New York, the epicenter of COVID-19 cases in the U.S., might see a revenue drop of $4 billion to $7 billion compared to what it was expecting, according to the state comptroller. With a budget of $87.9 billion, that’s significant.

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Ethan Wolff-Mann ~ Yahoo Finance ~ 

BOCA RATON, Fla., March 25, 2020 (GLOBE NEWSWIRE) -- PRESS RELEASE -- Jushi Holdings Inc., a globally focused, multi-state cannabis and hemp operator, is providing shareholders with an update on its operations during the month of March, and its company-wide response to COVID-19. Jushi maintains that the health and safety of its patients, customers and employees is the company’s number one priority during this global crisis.

As of March 25, Jushi’s dispensaries received the “life-sustaining” business designation in Pennsylvania and the “essential services” designation in Illinois. As a result, the company’s six dispensaries in Pennsylvania, operating under the brand “BEYOND/HELLO,” and its two dispensaries in Illinois, operating under the brand “The Green Solution” (transitioning to BEYOND/HELLO branding later this year), will remain open. The company acquired the two Illinois dispensaries on January 30 and has subsequently begun serving adult-use customers at its Sauget location as of March 2. Through the first three weeks of March, company-wide retail revenues were approximately $3 million, an increase of approximately 70% as compared to February 2020.

The company is announcing several initiatives prioritizing its medical patients and customers most susceptible to COVID-19 during the pendency of the COVID-19 outbreak:

Pennsylvania – Effective immediately, BEYOND/HELLO dispensaries will only serve patients 50 years or older in the first hour of operations. Curbside pick-up will begin to be offered at three PA dispensaries starting March 30th (1).Sauget, Illinois – Beginning March 30, The Green Solution dispensary will only serve medical patients on Mondays. In addition, starting on March 31, The Green Solution dispensary will serve only medical patients and customers 50 years or older during the first hour of operations. Curbside pick-up will also be offered to medical patients beginning March 26.Normal, Illinois – Beginning March 31, The Green Solution dispensary will only serve patients 50 years or older in the first hour of operations. Curbside pick-up will also be offered to medical patients beginning March 26th.

(1)  Curbside pick-up available at Bristol, West Chester and Scranton, Penn. locations.

In accordance with the guidance of the Centers for Disease Control and Prevention (CDC), Jushi made essential changes to promote a healthy and safe operating environment for all of its patients, customers and employees, including:

In the wake of the COVID-19 global pandemic, U.S. and Canadian cannabis companies have a unique opportunity to aid those in need. Not only are their cannabis products increasingly being deemed essential by governments—but they also have the facilities, personnel and protocols already in place to fill the desperate need for medical supplies. 

These three companies are using those advantages to help their communities.

Aloha Green Apothecary

In Hawaii, Aloha Green Apothecary is producing hand sanitizer for its employees and patients, with plans to ramp up production as much as possible to donate hand sanitizer to other businesses and organizations in the state.

“We’re just trying our best to meet our patients’ needs and follow the law with all the changes in law that the government is laying down,” Tai Cheng, a spokesperson for Aloha Green Apothecary, told Cannabis Business Times.

The vertically integrated company, located in Oahu, has been deemed essential after all non-essential businesses were ordered to shut down. And since the outbreak, sales have increased.

As more and more states are shifting to a work-from-home environment and closing down non-essential businesses, we have seen a conflict in gubernatorial instructions on whether cannabis is a protected class of business that falls under “essential infrastructure” or “essential business.” Earlier this week, we compared the approach New York and California have taken to permitting businesses to continue to operate.

The former, medical-only state received a carte blanche endorsement as an essential business in New York to provide (often immunocompromised) patients with necessary medication. California, on the other hand, remained silent in executive orders, and left it up to local mayoral representatives to make determinations as they saw fit and best for their respective communities.

Massachusetts has taken a middle road, as Governor Charles D. Baker issued COVID-19 Order No. 13 on March 23, 2020 which becomes effective March 24, 2020 at noon. This order identified an extensive list of “COVID-19 Essential Services”. As with California and New York, cannabis-related business were not explicitly listed on the list of essential services, but rather addressed in an addendum by the Massachusetts Cannabis Control Commission (“MCCC”).

Progression to Shut-Down

In an effort to contain the spread of the virus, the Massachusetts Cannabis Control Commission issued an “Industry Bulletin on the Coronavirus State of Emergency” on March 13, 2020 which highlighted mitigating measures that licensees and certifying health care providers should use to ensure, preserve, and promote public health. Futhermore, the MCCC recommended that Medical Marijuana Treatment Centers (dispensaries) may consider the “promotion and geographic expansion of delivery service and to remind patients of the ability to acquire up to a 60-day medical grade medical marijuana supply.” This language and recommendation regarding delivery service parallels the actions of many other states such as New York, Michigan, and Washington. (Curiously, Illinois Department of Financial and Professional Regulation would relax laws relating to curb-side delivery on public walkway adjacent to the dispensary, but direct delivery was still prohibited.)

On March 23, 2020 the MCCC issued a formal Summary Cease and Desist Order (Case No. 2020AM-0001, 935 CMR 500.350: Cease and Desist Order and Summary Suspension Order) which clarified and expanded the prior directives of the MCCC in line with Governor Charles D. Baker’s March 23, 2020 Covid-19 Order No. 13 (Essential Services Order).

This Order went into effect on March 24, 2020 at 12:00 noon EST and formally excluded all licensed Marijuana Establishments and Medical Marijuana Treatment Centers conducting adult-use retail at non-colocated premises as non-essential functions. (Co-located Marijuana Operations under Massachusetts law are defined as an entity operating under both a RMD registration pursuant to 935 CMR 5001.000: Medical Use of Marijuana and under at least one Marijuana Establishment license pursuant to 935 CMR 500.000: Adult Use of Marijuana on the same premise.) These establishments were ordered to close their physical workplaces and facilities to workers, customers, and the public as of noon and not to re-open before 12:00 noon on April 7, 2020. Independent testing labs providing the required testing to medical-use operations were not subject to the Cease and Desist Order.

PRESS RELEASE - Vertical Air Solutions has announced its new UVC integrated pathogen control system.  In these times of heightened awareness around the importance of clean environments, Vertical Air Solutions is accelerating availability of its new offering. The UVC light system fits into Vertical Air Solutions' air mixture chamber seamlessly, reducing the instance of powdery mildew and other pathogens.

What is the ultraviolet (UV) light?

Ultraviolet light (UV) is a form of invisible light to the human eye. It occupies the part of the electromagnetic spectrum between X-rays and visible light. The sun emits ultraviolet light but most of it is absorbed by the Earth’s ozone layer.

UVC Rays

The UVC (254nm) lights are the same wavelength produced by the sun. The UVC wavelength attacks the micro-organisms on a molecular level deactivating and destroying the contaminants.

Utah patients can now access medical cannabis with recommendation letters from their medical cannabis providers after a new law took effect March 25, according to a KUTV report.

To qualify for a recommendation letter, patients must live in Utah and be diagnosed with a qualifying condition, the news outlet reported. Medical doctors, osteopathic physicians, advanced practice registered nurses and physician assistants can all provide patients with recommendation letters stating that a patient has been diagnosed with a qualifying condition, and medical cannabis pharmacies must receive independent confirmation from patients’ medical providers stating that the letter is valid. Patients must also present a valid form of photo identification at the medical cannabis pharmacy with the recommendation letter, KUTV reported.

Qualifying patients can continue to access medical cannabis with recommendation letters until Dec. 31, at which point they must obtain a medical cannabis card from the Utah Department of Health, the news outlet reported. In addition, patients accessing the medical cannabis program with recommendation letters must purchase all their medical cannabis products from the same pharmacy until they receive a card.

The change in law is part of House Bill 425, which lawmakers passed in the latest legislative session and which Gov. Gary Herbert signed into law, KUTV reported.

Since patient registration opened March 1, Utah has issued 1,076 medical cannabis cards, according to the news outlet, while 203 medical providers have registered to participate in the program. While there is currently only one medical cannabis pharmacy open in Utah, 13 more are expected to open by the end of the year.

In a lawsuit over breach of contract, a Kentucky hemp farming company is arguing that its agreement with an Oregon hemp processing company should be terminated because of the coronavirus.

Third Wave Farms, headquartered in Mount Vernon, Ky., signed a contract with Canby, Ore.-based Pure Valley Solutions in May 2019 to act as a broker for Pure Valley’s winterized cannabidiol (CBD) oil. The contract required Third Wave to sell up to 5,000 liters of it, according to the lawsuit. 

In the contract, Third Wave also said it was still working to raise the $2 million it needed to fulfill its agreement. 

That contract quickly crumbled on both sides. According to the lawsuit, Pure Valley never had the capacity to make 5,000 liters of CBD oil, and the oil it did make didn’t meet the contract’s specifications. Meanwhile, Third Wave never raised its $2 million.  

Because both ends failed to meet their obligations, Third Wave said it believed the contract was no longer in effect. Yet, in February, Pure Valley sent a bill to Third Wave demanding $9 million, along with an interest rate of 9% and nearly $10,000 in storage fees for every day Third Wave didn’t ship the oil.

Now, in a lawsuit moving through the U.S. District Court for the Eastern District of Kentucky, Third Wave Farms, LLC v. Pure Valley Solutions, LLC, Third Wave is arguing the contract should be terminated because neither side fulfilled their obligations.

DENVER, Colo. - March 24, 2020 - PRESS RELEASE - The Colorado Department of Revenue (CDOR) has released the Average Market Rates (AMR) for retail marijuana effective April 1, 2020 until June 30, 2020.

Three of the seven AMR categories decreased this quarter, including bud ($1,164), trim ($319) and wet whole plant ($176). Bud allocated for extraction ($744) and trim allocated for extraction both increased ($250), while immature plant ($9) and seed ($5) rates stayed the same.

The AMR is the median market price of each category of unprocessed retail marijuana that is sold or transferred from retail marijuana cultivation facilities to retail marijuana product manufacturing facilities or retail marijuana stores. CDOR’s Office of Research and Analysis, in coordination with the Taxation Division and the Marijuana Enforcement Division (MED), calculates AMRs quarterly for use in levying the excise tax as required by Colorado statute.

The April 1 AMR was calculated based on retail marijuana transactions from Dec. 1, 2019 through Feb. 29, 2020 in MED’s marijuana inventory tracking system. AMR is an estimate of the typical prices of each category of unprocessed retail marijuana that is sold or transferred from marijuana grows to product manufacturers or stores.

Visit the Taxation Division’s website for more information, including the methodology of the AMR calculations and current and prior AMRs.

With crisis comes the need for insurance coverage. It’s not top of mind right now, nor should anyone expect it to be, but business models and short-term outlooks are changing dramatically each day, and now may be a good moment to ensure that management teams are prepared.

Mike Sampson, partner in Reed Smith’s Insurance Recovery Group and co-vice chair of its Cannabis Law Team, says that business owners would do well to familiarize themselves with their insurance policies before the time comes to file a claim on some unexpected hardship.

There are several types of coverage that are in play now, as the coronavirus outbreak continues to spread across the globe and force incredible economic pressure onto small businesses.

Business interruption coverage is often a component of a company’s property insurance policy. For example, a standard policy might cover damage to a building or to personal property within. That policy may then include additional lines of coverage for situations that infringe on a business’s day-to-day operations.

Examples include: business interruption with time element coverage, for when your business experiences covered property damage and as a result experiences continued operational losses precipitated by that damage. There’s also extra expense coverage, for when a business incurs extra costs to continue operations after covered property damage.  

Zooming out to the cannabis business supply chain, there’s also contingent business interruption coverage: This is triggered when it’s not your business that suffers the property damage, but rather a third party business is hit with some level of property damage that suspends normal operations—thus affecting you. Further up the supply chain, this includes vendors and, say, vape battery manufacturers.

The governor of New York said on Monday that he expects lawmakers to push ahead with plans to legalize marijuana even as the state works to address the coronavirus pandemic.

During a briefing on the public health crisis, Gov. Andrew Cuomo (D) was asked about his legislative priorities for the budget, which is facing an April 1 deadline to get passed.

While he recognized that there are certain policy items he included in his proposal to lawmakers that are more complicated and may have to be delayed, he said the legislature should still pursue cannabis legalization.

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Kyle Jaeger ~ MarijuanaMoment.net ~ 

Vying to become Europe's "Cannabis Superpower," marijuana entrepreneurs in the recently rebranded country are waiting for the government to act.

In a desolate industrial zone of this capital city, a cannabis grow house is under construction that, when finished, will span 178,000 square feet, about the size of a Walmart superstore.

At full capacity, 17 tons of marijuana a year, worth about $50 million, will be harvested.

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David Segal ~ New York Times ~ 

Research makes the case that contact highs are in fact real, but considering the circumstances, you may not have a lot to worry about.

You’re at a party and a joint is being passed around. The room is filled with smoke and you start to wonder, will I get a contact high from weed?

Is a contact high even real? A contact high -- also known as a secondhand high -- is the idea that secondhand exposure to cannabis smoke can get a person stoned or even leave them with THC in their system. 

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Rae Lland ~ Leafly.com ~