MjLink Cannabis Business News and Press

New Jersey Senate President Stephen Sweeney has appointed social worker Krista Nash as the first official member of the state’s Cannabis Regulatory Commission, a panel charged with regulating the state’s cannabis industry, according to an NJ.com report.

The commission still needs four additional members before it can become operational, the news outlet reported; Gov. Phil Murphy must appoint three members and State Assembly Speaker Craig Coughlin must appoint one under New Jersey’s expanded medical cannabis law.

The Jake Honig Compassionate Use Act, signed into law last year, expanded New Jersey’s medical cannabis program and established the commission to oversee it, NJ.com reported. (The New Jersey Department of Health has been handling the program.)

Once fully staffed, the commission will be responsible for drafting regulations for the state’s medical cannabis industry and, potentially, a legal adult-use cannabis market, if New Jersey voters approve an adult-use legalization ballot measure this November.

Utah Gov. Gary Herbert signed legislation Feb. 28 that fine-tunes the state’s medical cannabis law days before the state is set to launch its first medical cannabis sales, according to a local KSL News Radio report.

S.B. 121, sponsored by Sen. Evan Vickers, contains several amendments to the state’s Medical Cannabis Act, which the legislature approved in December 2018 to make changes to Utah’s voter-approved medical cannabis ballot initiative.

Key changes include dosage form requirements for medical cannabis products and a provision that allows Utahns to bring medical cannabis in from outside the state in certain situations, KSL News Radio reported.

The law also allows certain cultivation facilities to operate at two locations and allows the facilities to hold educational events, as long as they comply with the Utah Department of Agriculture’s regulations, according to the news outlet.

Employees working for state-owned businesses are protected from penalties for using medical cannabis use under the new law, but private business owners are not required to allow their employees to use medical cannabis, KSL News Radio reported.

Minnesota regulators have asked lawmakers to establish a state cannabis office to oversee the state’s medical cannabis, hemp and CBD industries, as well as, potentially, an adult-use market, according to a Star Tribune report.

Officials from the state’s Pharmacy Board and departments of Agriculture, Health and Public Safety have asked for a centralized body, called the Office of Cannabis Management, to regulate the industry and prepare the state for the potential legalization of adult-use cannabis in the future, the news outlet reported. According to the various agencies, having one office to oversee the entire industry would bring together a variety of experts and help streamline regulation efforts, Star Tribune reported.

Patient enrollment in Minnesota’s medical cannabis program grew 27% from 2018 to 2019, and more than 18,000 patients are currently enrolled, according to the news outlet. In addition, the number of hemp farmers in the state grew from roughly 50 to 400 in the same timeframe, and more CBD products are increasingly being sold across the state, Star Tribune reported.

The Agriculture Department currently oversees Minnesota’s hemp program and has attempted to regulate CBD products alongside the Board of Pharmacy, according to the news outlet.

Regulators made a formal request to the Minnesota Legislature in January for a central cannabis office, Star Tribune reported, and members of a state work group have said that the proposed Office of Cannabis Management would help ease the regulatory burden on the other state agencies, which often do not have the manpower to oversee all facets of the cannabis industry.

OREGON:  OLCC Notice of Public Hearing. What: OAR 845-025-5760, Audit, Compliance, and Random Testing When:  2:00 p.m. – 3:00 p.m., Monday, March 16, 2020 Where: Oregon Liquor Control Commission, 9079 SE McLoughlin Blvd., Portland, OR 97222 Public Notice & Proposed Rule Draft The national outbreak of e-cigarette or vaping product use-associated lung injury (EVALI) has resulted in Read the full article...

A compound made by cannabis plants has been found to wipe out one of the most common drug-resistant bacteria in a study on mice, raising hopes of a new weapon in the fight against superbugs.

Public health agencies worldwide have identified antibiotic resistance of disease-causing bacteria as one of humanity's most critical challenges.

Click here to read the complete article

Nikki Hancocks ~ NutraIngredients.com ~ 

Considering the neuroprotective effects of cannabinoids and the anti-spastic effects of cannabinoids in multiple sclerosis patients, it only makes sense to consider their use in ALS. Preclinical work and some patient reports are promising.

ALS causes the degeneration of nerves that control voluntary muscle movement, like those that allow us to chew, speak, and walk.

Charlie Wedemeyer was one of Hawaii’s greatest athletes when he attended Punahou School in the 1960s.

He was the quarterback for the football team, but also excelled at basketball and baseball. 

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COLORADO: Just how big is Colorado’s legal cannabis business?  Here are the official MED numbers, as of February, 2020.

Hartford, CT — PRESS RELEASE — On March 2, the Judiciary Committee will hold a public hearing on legislation that would end prohibition and regulate marijuana for adult use in Connecticut.

In early February, Senate President Pro Tem Martin Looney (D) and House Speaker Joe Aresimowicz (D) introduced Governor’s Bill No. 16, which would allow adults 21 and older to possess and purchase up to one and a half ounces of cannabis from licensed retailers. A summary of the marijuana regulation bill can be found here.

Prior to the hearing, the Connecticut Coalition to Regulate Marijuana joined together with prominent supporters for a press conference to rally support for legislation to legalize, regulate and tax marijuana for adult use in Connecticut.

Veterans, civil rights activists, clergy, law enforcement, healthcare professionals, minority business advocates, economists, social workers, state leaders and legislators came together to voice their support for action on the Governor’s Bill and stayed to testify at the public hearing.

Organizations represented included the Connecticut Coalition to Regulate Marijuana; the Commission on Women, Children, and Seniors; the New England Veterans Alliance; the Minority Cannabis Business Association; Clergy United for Marijuana Reform; the State Department of Consumer Protection; Doctors for Cannabis Regulation; Iraq and Afghanistan Veterans of America; ACLU CT; The Connecticut Center for Economic Analysis at the University of Connecticut, School of Business; the Connecticut Progressive Caucus; the Working Families Party; and municipal and state representatives of Bloomfield, Bridgeport, East Hartford, Hamden, Hartford, New Haven, and Stamford. 

OKLAHOMA: Beginning April 1st, all marijuana product sold by a grower or processor will be required to be tested by an Oklahoma Medical Marijuana Authority (OMMA) licensed laboratory. The mandatory testing requirements were created by the Oklahoma Legislature and went into effect on Nov 1st, 2019. Since that time, the OMMA has been creating the Read the full article...

Ashkelon, March 1, 2020 – PRESS RELEASE – Univo (TASE: UNVO), which owns a plant for the production of medical cannabis products under the new Ministry of Health regulations and sells products in accordance with the IMC-GMP standard to pharmacies in Israel, and also owns a farm currently under construction for the cultivation of medical cannabis, has announced an agreement with Canopy Growth for exclusive collaboration in Israel.

Canopy is traded on the Toronto Stock Exchange (TOR:WEED.CA) at an estimated value of 8.8 billion Canadian dollars, and on the New York Stock Exchange (NYSE:CGC) at a value of 6.6 billion U.S. dollars. The company has more than 3,000 employees and is one of the companies holding the most extensive knowledge and experience in the world, including in the operation of medical cannabis growing farms in the United States, in Europe and in Africa. The agreement with Univo is the company’s first entry into Israel.

As part of the exclusive agreement in Israel, Univo will in the first stage import into Israel 470 kg of dry medical cannabis grown by Canopy, produce its products with Canopy’s raw materials – products that will bear Univo’s logo and brand, and will exclusively distribute them as finished products in pharmacies in the Israeli market. Univo will import and produce under the GACP standard from which it will produce GMP-standard products, subject to the approvals and guidelines of the Medical Cannabis Agency at the Ministry of Health. In the second stage, Canopy will order manufacturing and processing services from the company at its plant in Ashkelon and will have the right to enter into agreement with Univo as producer and distributor of medical cannabis products under the EU-GMP standard in European markets, subject to the required approvals.

Golan Bitton, CEO of Univo, said, “The agreement with Canopy is a strategic move attesting to Univo’s positioning in the local and the international market as a leading company. The agreement is also proof that there is an advantage in building a technological plant with a large production capacity and with future technological capability for producing products of high quality and to international standards. The agreement will enable us to grow both our market share in Israel, without being dependent on the farm and on local supply, and to continue selling and expanding our product portfolio of medical cannabis products of the highest quality, while laying the foundation for Canopy to produce in the international market.”

Univo recently completed expansion of a commercial agreement with Can-Fite, whereby the parties expanded the scope of the collaboration between them for research on the integration of medical cannabis into the treatment of liver cancer and other cancer indications. Under this framework, Univo will receive an additional c. 400,000 dollars after already having received 500,000 dollars from Can-Fite and allotment of shares without consideration (holding 8.57% of Can-Fite).

This week, Vermont inched closer to legalizing adult-use cannabis sales when the House approved S. 54, legislation that would establish a regulated-and-taxed cannabis market in the state. Elsewhere, in New Mexico, the state’s health secretary signed a reciprocity rule that allows the state to honor medical cannabis cards from other states.

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

New Mexico: Although Gov. Michelle Lujan Grisham signed a law last week that reinstated a residency requirement for patients enrolled in New Mexico’s medical cannabis program, Health Secretary Kathyleen Kunkel implemented a reciprocity rule that allows New Mexico to honor medical cannabis cards from other states starting July 1. At least 613 non-residents have enrolled in New Mexico’s medical cannabis program since the residency requirement was eliminated last year. Read morePennsylvania: Four new companies have been approved to cultivate cannabis for research purposes in Pennsylvania in partnership with the state’s medical schools. Under state law, eight companies—called “clinical registrants”—can grow, process and dispense cannabis for research institutions, and the four new licensees bring the total number of clinical registrants to seven. Read moreNew York: Gov. Andrew Cuomo has announced plans to tour legal cannabis states as part of his effort to legalize adult-use cannabis in the Empire State this year. Cuomo plans to visit Massachusetts, Illinois and either California or Colorado to find out which aspects of their legal cannabis program have worked and which have not, as well as their lessons learned. Read moreIllinois: Tax revenue from Illinois adult-use cannabis sales surpassed $10 million in January, which puts the state on track to top Gov. J.B. Pritzker’s budget estimates of $28 million in cannabis tax revenue by June 30. Illinois collects sales tax, as well as an additional cannabis tax, on adult-use sales, and January sales brought in more than $3.1 million in sales tax revenue and more than $7.3 million in cannabis tax revenue. Read moreMassachusetts: The Cannabis Control Commission has announced plans to hire additional staff in order to cut the average wait time for cannabis business licenses from 121 days to 60 days. The agency unveiled its plan at a Joint Ways and Means Committee budget hearing Feb. 24 to address one of the most common complaints from prospective cannabis entrepreneurs. Read moreKentucky: Lawmakers have introduced new legislation in the House that calls for more medical cannabis research, days after the full House approved legislation to legalize medical cannabis in the state. The bill, backed by opponents of medical cannabis legalization, has cleared a Senate panel in a unanimous vote, and now heads to the full Senate for consideration. Read moreMaine: The Office of Marijuana Policy has indicated that the state is still months away from launching adult-use cannabis sales, although regulators expect stores to start opening later this spring, once the state has an adult-use cannabis testing lab. Regulators are currently processing one adult-use cannabis testing application, submitted by Kennebunk’s Nelson Analytical, but the application has not been officially approved. Read moreMaine also announced plans this week to establish a new division within the state Drug Enforcement Agency to monitor cannabis regulatory compliance and illicit market activity. The announcement has sparked controversy among cannabis advocates, who say regulators should be trying to help businesses comply with state regulations instead of prosecuting them. Read moreVirginia: Lawmakers have introduced new legislation to tweak the state’s medical cannabis program, including a bill that would allow nursing homes to administer medical cannabis. Sen. Siobhan Dunnavant’s S.B. 185 would authorize caregivers at nursing homes, assisted living facilities and hospices to administer medical cannabis to patients who have been certified and enrolled in Virginia’s medical cannabis program. Read moreVermont: The House of Representatives has advanced S. 54, a bill to legalize, regulate and tax adult-use cannabis sales in the state. The legislation now returns to the Senate, which has already passed the bill, and which must now work out differences with the House before sending a final version of the bill to Gov. Phil Scott’s desk. Read more

On Feb. 26, Viola, a nationwide leader in the production and sale of premium quality cannabis products, founded by NBA veteran Al Harrington, announced the official launch of its social equity initiative, Viola Cares. Through education, equitable offerings, expungement, and incubation programs, the initiative will result in more than 10,000 jobs, hundreds of new business owners and expanded industry diversity by increasing representation, facilitating community building and providing employment opportunities.

Viola’s first strategic alliance within its Viola Cares program kicks-off with Root & Rebound. Root & Rebound is home to lawyers and advocates committed to restoring power and resources to the communities most harmed by mass incarceration and the War on Drugs. Their work combines direct legal services with systems-changing policy advocacy and public education, in an effort to move society toward greater racial and economic equity, justice, collective liberation and intergenerational healing. Their educational resources like the California Roadmap to Reentry, the Reentry Planning Toolkit, the National Fair Chance Housing Toolkit, and others have supported thousands of people as they work to navigate the collateral consequences of an arrest or conviction history.

Viola, in conjunction with Root & Rebound, will produce a first-of-its-kind toolkit designed specifically for people with cannabis-related convictions, to be entitled: “A New Leaf: A ‘How-To Guide’ for Successful Reentry After A Cannabis Conviction.”

“At Viola, we live and breathe the belief that a cannabis conviction should never be considered a life sentence,” said Al Harrington, founder, Viola. “In joining forces with Root & Rebound, we will look to help those communities of color who have historically been the victims of cannabis-related incarceration and who have fallen on hard times, and turn those struggles into opportunities for success within this rapidly growing industry.”    

Opportunity within the cannabis industry only continues to grow as legalization progresses and passes into law across the country, and Viola is breaking the barrier of entry for minorities to contribute to that growth through cultivation and entrepreneurship.

“We’re honored to be working side-by-side with Viola on such an important initiative--one that positively impacts thousands who have been unfairly stigmatized by their prior cannabis-related incarceration,” Katherine Katcher, founder and executive director of Root & Rebound. “Together we’re changing that conversation, leveling the playing field for minorities and creating opportunities for those deserving of a second chance.”

LAFAYETTE, Colo., Feb. 27, 2020 (GLOBE NEWSWIRE) -- PRESS RELEASE -- urban-gro, Inc., an engineering design services company that integrates complex equipment systems into high-performance indoor cannabis cultivation facilities around the world, has announced the closing and initial draw of its previously announced credit facility in the aggregate principal amount of US$6 million with an institutional lender.

“The closing of this financing and the receipt of funds allows us to remain laser focused on profitability and in delivering our best-in-class engineering design, services and complex systems to our customers,” said Bradley Nattrass, CEO and chairman of urban-gro. “We are pleased to be in such a strong position to continue serving the increasing demand we are seeing across North America and Europe.”

INFOR Financial Inc. acted as the exclusive financial advisor to the company in connection with this financing. For further details, please refer to the company’s news release dated Feb. 21, 2020.

The Texas Department of Public Safety said last week that it would not perform testing to distinguish between hemp and marijuana in misdemeanor cases.

The Texas Department of Public Safety is almost ready to roll out its long-awaited lab test to tell if cannabis is newly legal hemp or illegal marijuana.

But DPS Director Steve McCraw notified Texas law enforcement agencies this month of a crucial caveat: The state labs won’t do testing in misdemeanor marijuana possession cases. 

Click here to read the complete article

Jolie McCullough ~ TexasTribune.org ~

A Denver-based company hopes to be the state’s first to study the effects of marijuana on Alzheimer’s disease, thanks to a newly available research and development license in the city.

MedPharm Holdings plans to apply for a Denver marijuana R&D license to test delta-9 tetrahydrocannabinol (THC), cannabidiol (CBD) and other cannabinoids’ effects on Alzheimer’s and dementia patients.

According to the Alzheimer’s Association, 5.8 million Americans have the disease, a degenerative brain disorder that affects a person’s memory and thinking skills. While there are drugs that help ease symptoms, they do not change the course of the disease.

Click here to read the complete article

TINEY RICCIARDI ~ The Denver Post 

Maine has announced plans to establish a new division within the state Drug Enforcement Agency to monitor cannabis regulatory compliance and illicit market activity, according to a local WGME report.

Maine Department of Public Safety Commissioner Michael Sauschuck said the division will be made up of four people and will be funded by cannabis tax and licensing revenue, the news outlet reported.

The announcement has sparked controversy among cannabis advocates, who say regulators should be trying to help businesses comply with state regulations instead of prosecuting them, according to WGME.

However, Maine Rep. Kent Ackley says the division’s threat of prosecution and fines will force the state’s illicit cannabis market to shut down, which will cut down on competition for the legal market, the news outlet reported.

DISTRICT OF COLUMBIA: The U.S. Department of Agriculture (USDA) today announced the delay of enforcement of certain requirements under the interim final rule (IFR) establishing the U.S. Domestic Hemp Production Program. Under the new guidance, USDA will delay enforcement of the requirement for labs to be registered by the Drug Enforcement Administration (DEA) and the Read the full article...

Many moving parts are involved in cutting a deal in the cannabis sector—enough to make a dispensary or cultivation facility owner’s head spin. Processors and other industry stakeholders are also likely to have a long list of questions.

In part one of this Q&A, Claudio Miranda, co-founder of Guild Enterprises, breaks down the basics of what the industry needs to know about raising capital and consolidation trends. Check back for part two, on when to buy and sell your cannabis business and some specifics on the 2020 Cannabis Conference’s Deal-Making Summit, in which Miranda will provide detailed capital and M&A information for industry members.

Cannabis Dispensary: How should vertically integrated companies raise capital to further grow and expand?

Claudio Miranda: In general, I think a good theme for this whole event is going to be the fact that the capital markets are really dry right now. One way of answering that is more theoretically, like what are the theoretical ways one can raise money? The other side of that question is, what are the actual available ways that they can raise it today? Those lead to different answers because the capital is very hard to come by right now. It's very few and far between, and the hope is that once the capital markets free up again, we'll have a more diverse set of options for operators, let's put it that way.

Basically, I think the best way to do it right now, I would say, where we are seeing the most traction, is capital coming from multi-state operators. They tend to be ones that, at least on the face of it, seem to be most capitalized, and as multi-state operators, a lot of them are establishing more vertical infrastructure across multiple states. They have a team of people and the financial resources to help a vertically integrated company further develop that model, because again, it's a model that seems to be one that they're actively working on. That's a bit of a general statement. There are some MSOs that are just retail-only, but there certainly are some that are more vertically integrated in that regard. At least where we're seeing money coming from right now is from MSOs as one of the main sources.

Another option there is that we're just seeing a lot of private equity—more high net worth individuals or private equity groups that are coming together to get in the cannabis industry. The thing is there, for vertically integrated operation, they're very capital-intensive, as opposed to someone that just wants to, let's say, start a small mom-and-pop edibles brand. The capital requirements are very different. If you're vertically integrated, by definition, you're going to be spending a lot of money on CapEx for a grow, potentially for a retail space and, depending on how vertically integrated, for distribution infrastructure. It's very CapEx-heavy to undergo a vertically integrated plan like that. So, you can't be looking at small mom-and-pop investors, you can't be looking at angel investors that are singular because those types of investors tend to write small checks. What you're looking for, then, is you're going to have to have larger, more well-capitalized groups coming in that have an appetite for capital-intensive operations. And that, again, is why I went to the MSOs as kind of the best example of that -- or some of these private equity groups, or another example of that is like a SPAC, a special purpose acquisition company, that has raised $100 million-plus specifically for this purpose.

MSOs, SPACs tend to have kind of that larger capital structure and appetite … we're [also] seeing the group that's got behind Caliva ... [including] Joe Montana. [The industry is] bringing in a lot of NFL players, bringing in celebrities like P. Diddy, and between all of them you're aggregating tens of millions if not $100 million-plus. Again, that is the sufficient amount of capital to support a vertically integrated business in its growth.

President Trump’s 2021 federal budget proposal leaves out a long-running rider that has shielded state-legal medical cannabis businesses from interference on the part of the U.S. Department of Justice or the U.S. Drug Enforcement Administration. It’s an olive branch that’s been in place since 2014, a signal to businesses operating in the 33 states that have legalized medical cannabis that they’re safe from federal law.

Looking ahead to the next year, Trump’s actions on this budget proposal put those businesses at risk of federal prosecution. While the president has not come out as explicitly anti-cannabis, his rhetoric usually elides any real policy position.

“To those following this issue closely, the president’s latest move hardly comes as a surprise,” Justin Strekal, political director for NORML, wrote in a recent op-ed. “Despite Trump mentioning during his campaign that he supported medical marijuana and a general states-rights approach to cannabis policy, his presidency has consistently proven these words to ring hollow.”

The Congressional protection is an explicit mandate that the DOJ not spend any funds on the prosecution of medical cannabis businesses. Without that guarantee (and in the absence of the 2013 Cole Memo, which former Attorney General Jeff Sessions rescinded in 2018), there would be no accord between the state-legal cannabis industry and the federal government—not that there is anything particularly agreeable otherwise about that relationship.

The recent vaping-related health crisis prompted a crackdown at the FDA—at Trump’s behest—over flavored tobacco vape products. In the cannabis industry, there are concerns that this development might create an obstacle to any goodwill that Trump might previously have had for the state-legal market. He’d said in earlier news clips that he would be in favor of a states’-rights solution to the cannabis legalization question, going so far as to cut a tacit agreement with U.S. Sen. Cory Gardner (R-CO) over the matter. 

In a recent interview reported by Marijuana Moment, however, Marc Lotter, Trump’s reelection campaign communications director, told KLAS that the administration may take a harder stance against cannabis. “I think what the president is looking at is looking at this from a standpoint of a parent of a young person to make sure that we keep our kids away from drugs,” he said. “They need to be kept illegal, that is the federal policy. I think the president has been pretty clear on his views on marijuana at the federal level, I know many states have taken a different path.” 

Although federal prohibition complicates the ability for public research of cannabis, some researchers have reached potentially novel conclusions about the plant. Among the collective findings is an idea that, together, CBD, THC and other cannabinoids can produce an “entourage effect,” and the terms “indica” and “sativa” aren’t fail-safe in anticipating certain types of effects.

It’s in this climate that Wayne Schwind, founder of Periodic Edibles in Portland, Ore., and host of the Periodic Effects podcast, aims to gather knowledge and provide further education about cannabis.

We recently spoke with Schwind to see to get an update on cannabis science and how he and his brands are responding to the latest information.

Cannabis Dispensary: How can cannabinoid and terpene science help improve patient care and customer experiences?

Wayne Schwind: I think those two things are everything, honestly. If you know my background, I do have a business, but I also really focus on the science of cannabis. I think we're still a little ahead of the market. We do cannabinoids, terpenes on our label, but it's those two things—and there's some other compounds in cannabis—but to me, those two you've got to look at when you're selecting products for specific effects; everyone wants a certain effect when they consume cannabis. I think it's critical to get away from sativa, indica, those things that have no reliability, especially if you're talking about patients with some kind of ailment. [It’s] really important to know those different options, the different cannabinoids and terpenes, and customize your product or flower, whatever it might be, based on those.

CD: Periodic Edibles includes experiential surveys inside the wrappers of its caramels to engage customers and receive feedback on the effects from the terpenes and cannabinoids. What prompted that decision to include surveys?

WS: It’s hard to dial in [the effect]—especially when you start combining terpenes and cannabinoids and there's the entourage effect. Then on top of that, everybody's body is different, so myrcene might be relaxing to most people, but to some people, it may have a different effect. We label our products with a specific effect, and we keep it pretty simple, either “relaxing” or “uplifting.” Right now, there's no hard, black and white science that says this combination in an edible is going to affect you this way. We're trying to get an edible [to] say, “8% of people that consume our edible will feel this way.” We're playing with different strains, different combos. Just to take feedback directly from our customer is the best way we could figure out how to get some subjective insight into: Are people actually experiencing those effects or different ones? It's a really hard thing to figure out, and we just are constantly tweaking it to improve as we go.