MjLink Cannabis Business News and Press

According to a recent survey, 85% of realtors say they have seen no change to property values near dispensaries.

As marijuana dispensaries are on the rise with more states opting to legalize the recreational use of the drug, some may wonder how other industries are being affected by it, if at all.

One industry that is actually not seeing much of a change is real estate.

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Erika Gonzalez, Patricia Fantis and NBC Washington Staff ~

Michigan’s recreational marijuana industry continued its steady ascent in February, based on the latest monthly statistical report released by the state Marijuana Regulatory Agency.

Monthly recreational marijuana sales hit $14.8 million, a 34% increase over the nearly $9.8 million in January sales.

The first full month of recreational sales, which began Dec. 1, logged $7 million in sales.

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Gus Burns ~ Mlive.com ~

Medical marijuana continues to be sold at state-approved dispensaries in Pennsylvania.

The dispensaries are akin to pharmacies and therefore considered “essential” businesses.

At least one dispensary owner is working to ensure that card-carrying patients can still get their medicines if they get sick with the coronavirus.

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Sam Wood ~ Philadelphia Inquirer ~ 

Marijuana companies have been grappling with falling stock prices as of late, and CV Sciences, a California-based cannabidiol (CBD) supplier and manufacturer, is no exception. While its stock was trading at about $5 per share this time last year, that has since toppled to a mere $0.34 per share as of March 19.

It’s a trend that will likely continue as companies in every industry grapple with the fallout that will come from the outbreak of COVID-19. But with the CBD market estimated to be valued at $23.7 billion by 2023, eyes are still on major industry players to see just how the market will shake out.

Joseph Dowling, the CEO of CV Sciences, and Joerg Grasser, the company’s CFO, recently joined a conference call to discuss the company’s year, as well as the challenges they’ll be facing in 2020.

CV Sciences had bright points in 2019. The company overhauled its executive team and expanded into national retailers like CVS, Kroger, and Vitamin Shop, growing its retail distribution by over 148% from 2018 to 2019.

The company has also rolled out a new e-commerce site, pluscbd.com, and was selected as the first-ever CBD sponsor of major PGA TOUR event, the Farmers Insurance Open at Torrey Pines, which took place in January 2020.

But difficulties pervaded 2019 as well, and additional obstacles have arisen this year that will likely present even more challenges. 

Michigan’s adult-use cannabis sales reached $14.8 million in February, which is a 34% increase over January’s sales of $9.8 million, according to an MLive.com report.

December marked the first full month of adult-use sales in the state and brought in $7 million in total sales, the news outlet reported.

The number of licensed adult-use dispensaries is also steadily increasing. Michigan had 42 retailers in January and 59 in February, and as of March 17, there are 74 licensed adult-use shops in the state, according to MLive.com.

While sales figures and the number of licensed dispensaries are on the rise, adult-use cannabis prices are steadily declining, the news outlet reported. In February, the average retail cost for an ounce of flower was $494.77, which is a decrease from $512.05 per ounce in January and $516.21 in December, according to MLive.com.

Michigan has collected nearly $1.4 million in licensing fees and other revenue connected to the industry, the news outlet reported, and will rake in about $1.5 million from its 10% excise tax on cannabis, as well as roughly $977,000 from its 6% sales tax.

PHOENIX, March 11, 2020 /PRNewswire/ -- PRESS RELEASE -- Harvest Health & Recreation Inc., a vertically integrated cannabis company with one of the largest and deepest footprints in the U.S., has announced the execution of a definitive merger agreement of the previously announced acquisition of Interurban Capital Group, Inc. (ICG), the resignation of Jason Vedadi from his role as Executive Chairman of the Board of Directors and planned updates to the Board.

Definitive Merger Agreement with Interurban Capital Group, Inc.

Harvest has entered into a definitive merger agreement to acquire ICG for consideration of approximately US$85.8 million payable by issuance of 309,452 multiple voting shares, assumption of approximately $19.1 million of debt convertible into 205,594 multiple voting shares and payment of an additional $9.3 million upon exercise of a call option agreement to acquire controlling interests in five Washington cannabis dispensaries or alternatively $12.4 million to acquire substantially all of the assets of these dispensaries. The call option exercise price is payable in Harvest multiple voting shares to be valued at a per share value equal to the volume weighted average sales price for each share of Harvest subordinate voting shares during the last 15 completed trading days prior to the date of closing under the call option agreement, and multiplied by 100 after adjustment of the exercise price to Canadian dollars.  ICG's assets include direct and indirect licenses and rights to acquire entities with licenses in California, Iowa and Washington. In addition, ICG is a service provider to these entities.

"We are excited to welcome the Have a Heart dispensaries into the Harvest family," said Harvest Chief Executive Officer Steve White. "The merger provides access to capital and a new set of shareholders that will provide Harvest with greater financial flexibility and resources to invest further in key markets such as Arizona, Florida, Maryland and Pennsylvania."

When consummated, the merger with ICG will add to Harvest's existing retail footprint three open retail locations and seven potential retail licenses in California, five open retail locations in Washington state and two open retail locations in Iowa.  Prior to completion, the merger remains subject to, among other things, the receipt of regulatory approvals and the satisfaction or waiver of closing conditions customary for transactions of this nature.

Management and Board Changes

CHICAGO--(BUSINESS WIRE)--PRESS RELEASE--Cresco Labs, one of the largest vertically integrated multistate cannabis operators in the United States, has provided an update on its national response to COVID-19. Cresco Labs views the health and safety of its customers, patients and employees as its number one responsibility during this challenging time.

The company will continue to operate all of its dispensaries during regularly scheduled hours, as permitted, to ensure that the tens-of-thousands of patients and consumers that rely on its cannabis products for their daily wellness and quality of life continue to have access to them. In addition, Cresco Labs has heightened its already-stringent sanitation measures and implemented procedures at the retail level to ensure adequate social distancing between employees and consumers. Some of these measures include: driving traffic to alternative channels, including online ordering; text message staging notifications; home delivery (where applicable); and curbside pickup, which will be launching next week in Illinois.

Cresco’s cultivation and production operations will continue to operate with elevated sanitation, quality and safety programs, which have been designed to mirror the highest standards used by food and beverage manufacturers across the country. In accordance with the guidance provided by the CDC, and with support from the company’s Public Health and Epidemiology consultant, Cresco is taking every step possible to provide the healthiest environment at its facilities nationwide.

"We have spent the last weeks preparing our organization to best manage this unique circumstance. We have approached this matter from the perspective of a responsible employer, a manufacturer, a retailer, a community member and an industry leader – we are responsible to all of our stakeholders. We have been working side-by-side with our state administrations to provide counsel regarding best practices and potential solutions that will both accomplish the social imperative to stop the spread of COVID-19 while ensuring that patients and all customers have the products they rely on for their health and wellness. Accordingly, many government agencies have deemed cannabis products 'essential' in the communities that Cresco Labs operates in and as medical providers, we take our obligations during the current period of global uncertainty very seriously. Many of our dispensaries are classified in the same category as pharmacies that people depend on as trusted access points for prescription medicine and continuing to provide that access is a fundamental responsibility. We have always viewed ourselves as responsible stewards of this industry first and foremost – we fundamentally embrace our role as leaders in creating sustainable state programs within which we operate,” said Charlie Bachtell, Cresco Labs' CEO and co-founder.

Bachtell continued, “It is in the most difficult times where the foundation of an organization matters, and character is revealed – this is when leaders lead. Over the last year we have focused intently on building the management and operational foundation that would not only support scalability but would successfully handle all of the variables associated with an emerging and constantly-evolving industry. I’m thankful that Cresco can rely on a team with decades of senior leadership experience in safe manufacturing and supply-chain management from companies like Lifeway Foods, Abbott, AbbVie, and Johnson & Johnson, as well as a retail team that has a track record of driving responsible performance during challenging times at companies like Starbucks, Apple and Walgreens. Together, backed by our best-in-class management team, 1,200+ team members deeply committed to the wellbeing of our patients/consumers, strategic operational footprint, and strength of balance sheet, Cresco will successfully manage through this uncertainty and continue to be the most important company in cannabis.”

A tweet posted Saturday from France’s Health Minister Olivier Véranspurred conversation among medical professionals and research scientists over the weekend on the possible risks of using non-steroidal anti-inflammatory drugs (NSAIDS) like ibuprofen to treat the symptoms of COVID-19. Now the World Health Organization (WHO) has officially released a statement saying that anti-inflammatories should be avoiding during infection.

But cannabis is full of anti-inflammatory compounds. Does this mean infected folks should avoid cannabis consumption? And what of the people out there in need of anti-inflammatory relief for acute and chronic conditions?

First off, the WHO guidance is for avoidance. If you can take acetaminophen instead of NSAIDS for pain or feverish symptoms, do it. Listen to the experts. The worry is that anti-inflammatories may over-suppress the body’s immune system and its ability to fight off the virus.

Additionally, NSAIDS have been shown to exacerbate risk of gastric injury, heart attacks and strokes. Elderly patients and those with comorbidities or compromised immune systems, the very same group of folks already at higher risk for coronavirus infection and complications, are commonly told to avoid NSAIDS because of these potential side effects. Those risks are compounded with coronavirus infection, according to experts speaking out on the matter.

For consumers and medical patients already using cannabis regularly, the guidance is one of prevention, not treatment.

“We do not recommend using cannabis to try and manage or treat your coronavirus,” said Dr. Jessica Knox, MD, MBA, MPH and co-founder of Doctors Knox Inc., a family business treating and educating patients and consumers though cannabis science. “If you are healthy and well, by all means, continue using cannabinoids and cannabis to help boost your body’s health. The idea right now for those of us who are not sick is to keep your body and immune system as healthy as possible.”

The African country of Malawi has become the latest to legalize cannabis for certain uses, according to an AP News report.

The country has been seeking an alternative to tobacco amid anti-smoking campaigns, the news outlet reported, and its Parliament passed legislation at the end of February to legalize cannabis cultivation for medical and industrial uses, although recreational use remains illegal.

The new law creates the Cannabis Regulatory Authority, a new regulatory body that will grant licenses to cultivate, process, store, sell, export and distribute cannabis, according to AP News. Licenses will also be issued to firms and institutions that wish to conduct cannabis research.

Cultivating, processing or distributing cannabis illegally will be punishable by up to 25 years in prison and a $70,000 fine under the new law, the news outlet reported.

Malawi allowed two firms to conduct research trials on hemp for industrial and medical uses in 2013, according to AP News, and the Malawi Hemp Association launched to work alongside government officials to create legislation and a regulatory framework for the industry.

OREGON: Due to the outbreak of COVID-19, we are abbreviating our agenda and holding our commission meeting via conference call. An audio recording of the meeting will be posted on our website after the meeting. Thursday, March 19, 2020 – 9:00 a.m. REVISED AGENDA OLCC Commissioners: Chairman Paul Rosenbaum Jennifer Currin Kiauna Floyd Michael Harper Read the full article...

Is my cannabis dispensary still open? In the season of COVID-19, that question just got a lot more complicated.

Cities, counties, and states across the US began issuing stay-at-home orders this week for all but essential commerce and travel.

Is weed essential? You bet your bong it is. For many folks it’s medical.

Online ordering, Leafly Pickup, and delivery services can really shine in the coming weeks. Restrictions will vary from place to place, and over time, depending on local conditions. 

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If you’re not currently receiving any treatment for insomnia, or if your current treatment isn’t enhancing the duration and quality of your sleep, you may want to give cannabis a try.

Ask any CBD or THC supplier and one of the main referrals for their product is sleep disorders. Known to be a natural sleep aid, cannabis and CBD oil has been proven to assist with insomnia and better sleep.

Here are five things to understand about the effect cannabis has on getting a better night’s sleep.

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Kate-Madonna Hindes ~ TheFreshToast.com ~ 

Toilet paper, hand sanitizer and food aren’t the only things flying off the shelves amid the coronavirus scare in Southern California.

Marijuana is the latest addition to the consumer stockpile. Industry professionals are enjoying the spike in sales, which has prompted one proprietor to buy two used Priuses in the past week as deliveries soar.

He said he is planning to buy three more in case his dispensaries are ordered shut and he has to transition his shop workers to drivers. 

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Joe Nelson and Brooke Staggs ~ San Bernardino Sun via OCRegister.com ~ 

The UCLA Cannabis Research Initiative has been awarded a $3.9 million grant to investigate whether cannabis terpenes can help reduce the use of opioids in pain treatment.

The National Institutes of Health National Center for Complementary and Integrative Health have awarded a $3.9 million grant to the University of California, Los Angeles Cannabis Research Initiative to study whether terpenes can reduce the amount of opioid medication a person needs to lessen pain.

The funding will allow Ziva Cooper, research director of the UCLA Cannabis Research Initiative, to study the entourage effect, or how terpenes and THC interact with each other.

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TG Branfalt ~ Ganjapreneur.com ~ 

On March 11, President Trump instructed the Small Business Administration (SBA) to allot $50 billion in aid to small businesses via low-interest loans during the historic coronavirus (COVID-19) global pandemic, which would help small businesses stay afloat with current expenses, including payroll.

While the total assistance SBA will offer in these low-interest loans is still unknown (as of press time, the White House and Congress are still working to pass a nationwide stimulus package bill that could potentially top $1 trillion), one thing is certain: Cannabis businesses will not be offered relief by SBA.

“Because federal law prohibits the sale and distribution of cannabis, the SBA does not provide financial assistance to businesses that are illegal under federal law,” Carol Chastang, SBA public affairs specialist, told Cannabis Business Times. “Businesses that aren’t eligible include marijuana growers and dispensers, businesses that sell cannabis products, etc., even if the business is legal under local or state law.”

Meanwhile, Canada’s cannabis businesses are facing the same type of exclusions.

Tantalus Labs CEO Dan Sutton shared with Cannabis Business Times that yesterday he was informed the Business Development Bank of Canada (BDC)—which hatched a plan with Export Development Canada (EDC) to increase loans issued on commercial terms by $10 billion in the wake of COVID-19—was not authorized to do business with cannabis companies.

As state regulators rush to maintain easy access to medical cannabis amid the crackdown on mass gatherings, Illinois will now allow curbside medical cannabis sales.

“The exchange of cash and product must take place on the dispensary’s property or on a public walkway or at the curb of the street adjacent to the dispensary,” according to a memo from the Illinois Department of Financial & Professional Regulation.

The move comes amid the coronavirus outbreak in the U.S, which is seeing unprecedented numbers of business closures and unrelenting pressure on the supply side of commercial markets. Cannabis, while seeing a surge in sales over the past week, is not immune to the regulatory rules that come with “social distancing” and public health norms.

Still, in Illinois, home delivery is not allowed.

And this curbside policy is not extended to the state’s newly legal adult-use market.

NEW YORK, March 13, 2020 (GLOBE NEWSWIRE) -- PRESS RELEASE -- In the midst of heightened uncertainty surrounding the risk of electronic nicotine delivery systems, the National Association of Cannabis Businesses (NACB) has announced the adoption of national standards for production, process safety controls and storage of cannabis-infused products. View the national standards here.

“Cannabis infusions continue to expand in scope and volume with little standardized control,” said Tom Nolasco, Director of Legal and Strategic Initiatives at the NACB. “This technical process requires guidance for the safety of consumers and reputation of the industry.”

“NACB Standards are designed to protect consumers and demonstrate to regulators and the public that our members operate at the highest levels of ethics and responsibility, especially when it comes to the safety and quality of their products,” said Adrienne Uthe, NACB’s Vice President, Sales and Marketing. “We’ve collaborated with cannabis industry experts, including our members Rebel Coast and Therapy Tonics, to define these best practices for cannabis-infused products. We’re committed to shaping cannabis into a safe, responsible and ethical industry.”

Nolasco leads the NACB’s National Standards initiatives. He is a 20-year litigator who entered the cannabis industry six years ago through partnership dispute cases. Previously, he served as co-chair of the Dickinson Wright National Cannabis Group. Nolasco has worked with municipal, state and federal legislators, including Representative Ed Perlmutter’s team on the SAFE Act. He is recognized nationally as an expert on medical and recreational cannabis laws on insurance.

Additional NACB Standards adopted and in progress include:

EDMONTON, March 16, 2020 /CNW/ - PRESS RELEASE - Aurora Cannabis Inc., a Canadian cannabis company, has announced that Terry Booth has filed a report on the System for Electronic Disclosure by Insiders (SEDI) regarding his sale of approximately 12,161,900 shares into the open market. This transaction is in connection with the previously announced transition of Booth's role within the company.

Executive Chairman and Interim CEO Michael Singer stated, "The Board and management remain focused on the plan we laid out in February and we are progressing as planned toward appropriate capital allocation, balance sheet strength and profitability. We look forward to updating the markets on our next quarterly earnings call."

TORONTO, March 16, 2020 (GLOBE NEWSWIRE) -- PRESS RELEASE -- Aleafia Health Inc.’s wholly owned subsidiary, Aleafia Farms Inc., has secured a Health Canada Cultivation Licence for the company’s Niagara Production Facility, located in Grimsby, Ont.

“This is an important and long-awaited breakthrough for Aleafia Health. We can now fully leverage our supply chain across three completed, licensed production facilities,” said Aleafia Health CEO Geoffrey Benic. “The Niagara Facility provides both near term, stable inventory for our health and wellness sales channels, and the inputs needed for the 2020 outdoor cultivation season.”

The facility features a highly advanced, automated, moving container bench system, which allows for a perpetual, year-round harvest. Capital investments made in automated cultivation and quality assurance systems will assist in reducing both costs and execution risk. It will be used as a staging ground for the company’s planned 2020 outdoor cultivation at its Port Perry Facility. Starter plants will be grown on-site and transported to Port Perry at the beginning of the outdoor cultivation season, significantly reducing planting-to-harvest lead times.

The Niagara facility’s perpetual harvest offsets seasonal fluctuations in inventory inherent in outdoor cultivation and will ensure, consistent, standardized input material for medical and adult-use sales channels. The Licence, granted on March 13, 2020 after markets closed, expires on March 13, 2023 and authorizes cannabis cultivation, propagation, harvesting and sales in Building 1.

Building 1 includes 50,000 sq. ft. of greenhouse area and 20,000 sq. ft. for post-cultivation operations, including drying, storage and shipping and will also be used to support outdoor cultivation. The company expects to submit a Licence amendment application to Health Canada in the next 30 days to authorize production in the remaining 90,000 sq. ft. of greenhouse area.

VANCOUVER, British Columbia, March 17, 2020 (GLOBE NEWSWIRE) -- PRESS RELEASE -- Nabis Holdings Inc., a Canadian investment company with specialty investments in assets across multiple divisions of the cannabis sector, has announced that it has terminated the agreement to acquire Desert’s Finest dispensary located in Desert Hot Springs, Calif. The acquisition was initially announced on June 12, 2019 with revised terms announced Oct. 1, 2019.

Per the terms of the amended agreement, Nabis was to acquire 100% ownership of Desert’s Finest for total consideration of US$5.6 million comprised of US$1.9 million in cash and US$3.7 million in a one-year convertible note. Desert’s Finest operates a 6,000-square-foot dispensary located in Desert Hot Springs, Calif.

“Given the downturn in the cannabis industry, capital markets are no longer helping fuel growth, resulting in the company narrowing their focus on acquiring assets that fit into our vertically integrated strategy.  Although the Desert’s Finest acquisition was a great opportunity for us to enter the California cannabis market, acquiring a stand-alone dispensary no longer fits into our strategic plan,” said Shay Shnet, CEO of Nabis Holdings Inc.

Mark Krytiuk, COO of Nabis Holdings Inc., added, “The company remains focused on improving operations and profitability at the recently acquired Emerald Dispensary in Phoenix as well as the Infusion Edibles line of medicated products. We are continuing to make progress on building out the 'Camp Verde' facility in Arizona, a 44,000-square-foot cultivation, production and fulfillment facility that has also secured all available hemp license classifications."