MjLink Cannabis Business News and Press

CANADA: FSD Pharma Inc. today announced that its Class B Subordinate Voting Shares (the “Shares”) have been approved for listing on the NASDAQ Capital Market under the symbol ‘HUGE’. Trading on the NASDAQ is expected to commence at market open on Thursday, January 9, 2020. The Company’s Shares will continue to be listed on the Canadian Read the full article...

Minnesota’s two vertically integrated medical cannabis businesses are advocating for the legalization of smokable flower during the state’s 2020 legislative session in an effort to make the program more affordable for both businesses and patients.

The program has been slow to expand since its 2014 launch, partly due to the high costs associated with an extract-only market, according to Bill Parker, CEO for LeafLine Labs, one of the state’s two cannabis licensees. State law prohibits flower, leaving businesses no choice but to produce higher-priced, extract-based products such as oils, oral suspension, sublingual sprays, capsules and topicals.

“Throughout the years, what we’ve heard from patients and potential patients within the state is there are two major problems with the program as it currently sits,” Parker told Cannabis Business Times. “The two issues are access and affordability.”

LeafLine ramped up its lobbying efforts last year to support legislation to expand accessibility, and the law was ultimately revised to allow the state’s two licensed businesses to expand into eight dispensaries (called “care centers” in Minnesota). Previously, each licensee was allowed to operate four care centers.

“When it comes to affordability, we’re kind of hamstrung as a business because we have to manufacture these products,” Parker said. “There’s extraction, there’s formulation, there are multiple steps to this that just increase the cost of the product itself. What we see in a lot of markets that introduced smokable flower, vapable flower—basically raw flower forms—[is that] the average expenditure comes in at a third of what it does in extraction markets. … We feel strongly that one of the ways to address the affordability issue is to introduce raw flower formats within Minnesota’s current law.”

OHIO:  The State of Ohio Board of Pharmacy today awarded a Dispensary Certificate of Operation to Have a Heart Cincy, located at 8420 Vine St., Cincinnati. The Board has now issued 47 Dispensary Certificates of Operation. The interactive map of Dispensaries with Certificates of Operation will be updated within two business days.

This week, Illinois Gov. J.B. Pritzker announced that he would clear more than 11,000 low-level cannabis-related convictions ahead of the state’s Jan. 1 launch of adult-use cannabis sales, which generated $3.2 million and more than 77,000 transactions on the first day.

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

Illinois: Adult-use cannabis sales began at 6 a.m. on New Year’s Day at most retail locations, and businesses made sure to greet the customers who got up early to take advantage of this historic day. While some customers encountered supply shortages or point-of-sale glitches, many on the ground in this newest cannabis market reported smooth sailing. Read moreOn Dec. 31, the eve of adult-use cannabis legalization in Illinois, Gov. J.B. Pritzker announced that he was pardoning more than 11,000 low-level cannabis-related convictions ahead of adult-use sales. The pardon cleared 11,017 convictions involving less than 30 grams of cannabis. Read moreIn its latest round of adult-use cannabis business licensing, the Illinois Department of Financial and Professional Regulation approved 11 more “same site” adult-use cannabis licenses, which grant existing medical cannabis dispensaries licenses to operate in the state’s newly launched adult-use market. This most recent licensing round raises the total number of adult-use cannabis licenses to 46. Read moreIndiana: Lawmakers are ramping up cannabis policy reform efforts going into the new year, filing legislation that addresses decriminalization and smokable hemp ahead of Indiana’s 2020 legislative session. Sen. Karen Tallian and Rep. Jim Lucas have both introduced decriminalization bills, and Tallian’s package of legislation also includes a proposal to legalize smokable hemp, as well as one that would create a commission to oversee the regulation and licensing of CBD products. Read moreArkansas: Medical cannabis sales in Arkansas surpassed $28 million in 2019. Fourteen dispensaries are currently operating in the state, and patients have purchased more than 4,209 pounds of product, spending $28.13 million since sales launched in May. Read moreOklahoma: Two groups are competing to bring adult-use cannabis legalization initiatives to Oklahoma’s 2020 ballot. One group of advocates filed a new adult-use cannabis petition with the secretary of state’s office Dec. 27 after withdrawing a similar proposal, and Tulsa resident Paul Tay filed a similar petition the same day. Read moreMichigan: The state has granted three adult-use cannabis dispensaries approval for home deliveries. Lit Provisionary in Evart, Battle Creek Provisioning in Battle Creek and Nature’s Releaf in Burton have all been licensed for delivery. Read moreNew Mexico: Rep. Javier Martinez has announced plans to pre-file an adult-use cannabis legalization bill that incorporates recommendations from the state’s governor-appointed work group, which was charged with suggesting what an adult-use program in the state should entail. Martinez’s forthcoming legislation will establish a private adult-use cannabis industry in New Mexico and regulate the market similar to alcohol. Read moreMinnesota: A federal judge is allowing a Minnesota farmer’s lawsuit over a revoked license to proceed. In 2019, products allegedly derived from Luis Hummel’s hemp crop at 5th Sun Gardens in Lanesboro, Minn., tripped the state testing threshold for THC content. Hummel, licensed under an industrial hemp pilot program that was sanctioned by the 2014 Farm Bill, is fighting back against the state’s enforcement of that rule. Read moreFederal: The U.S. Department of Agriculture has approved three U.S. states’ hemp regulation plans, allowing Ohio, Louisiana and New Jersey to proceed with licensed hemp cultivation. None of those states allowed hemp cultivation under the 2014 Farm Bill provisions, making this the first time farmers in Ohio, Louisiana and New Jersey may pursue this newly legal crop. Read more

Amid signs of a renewed push this year to legalize recreational pot in New York state, activists in the city have formed a new organization to lay the groundwork for an orderly, inclusive marketplace -- and avoid some of the problems that have beset legalization in other regions.

The group's organizers say that even with legalization far from guaranteed in this year's legislative session, the potential size of the New York market calls for extensive preparation, and that conversations among the industry's assortment of players need to start now.

Click here to read the complete article

Matthew Flamm ~ CrainsNewYork.com ~ 

A growing aspirational niche is making its way into mainstream retailers.

As the stigma surrounding marijuana continues to shed, more national fashion and beauty retailers are welcoming cannabis brands into their stores.

It was the addition of luxury cannabis company Lord Jones to the Sephora skin care portfolio in 2018 — the first-ever CBD brand for the chain to accept — that market trend expert Jed Wexler identified as the signal of a business opportunity bigger than the dot-com boom.

Click here to read the complete article

Katie Shapiro ~ AspenTimes.com ~ 

Building a cannabis processing facility/lab requires companies to consider everything it will take to be successful, including who is needed on the team to both launch and manage the facility, how much it will cost, and what goals and products the facility will ultimately achieve and produce. Here, Alisia Ratliff, who has experience launching and operating cannabis processing facilities and will speak at the 2020 Cannabis Conference, explains what cannabis companies need to consider when planning for and managing processing facilities, common pitfalls to avoid and more. 

Cannabis Business Times: What are some of the most common pitfalls you’ve seen with facility/processing lab buildouts and how do you avoid them?

Alisia Ratliff: One of the most common pitfalls I’ve noticed is the lack of expertise involved at the design/planning phase of the project, specifically people with a scientific and/or engineering background. Most investment teams will hire consulting firms to guide them through the application process to startup of operations. Employing a qualified scientist to approve and/or modify suggestions involving scientific processes, equipment and staffing is key to avoiding large downstream failures and impact to the operation. Inclusion of the right people on the team specifically during the design/planning phase, will create a proactive environment rather than reactive as I’ve seen in countless business models.

CBT: Where should cultivators who want to process onsite start when determining what kind of extraction processes would be best?

AR: These decisions should be made as early in the planning phase as possible. Making the decision to process cannabis and infuse products will affect the starting inventory you are cultivating. You will want to consider genetics that are popular for retail cultivation, but also take into consideration infused products and what inputs they require. For example, if you plan to infuse high-CBD edibles, you will need to grow a significant amount of a high-CBD, low-THC cultivars consistent with the expected unit output of edibles. The company could then evaluate the pros and cons on the extraction method necessary to meet the assumed demand for that product.

If a cultivator is already in full production and makes the decision to start processing, they would need to first look at the history of harvests. The history would give pertinent data such as average yields, cannabinoid content and frequency per strain, which would allow one to make data-driven decisions when evaluating the extraction method and technology.

At 8 p.m. on Dec. 31, when New Year’s Eve celebrations were just ramping up, eager consumers began lining up outside of Cresco Labs’ Sunnyside* dispensaries for their 6 a.m. open the next day.

Hours later, after Illinois’ first adult-use cannabis sales commenced on Jan. 1, Cresco co-founder and CEO Charlie Bachtell, without identifying himself, asked one of his customers how long the wait was. The man, visibly tired, told Bachtell that he was in line for seven and a half hours. Bachtell then asked him if it was worth it. “He smiles,” Bachtell recalls. “He goes, 'Worth every second.’”

Nearly $3.2 million in sales and more than 77,000 transactions marked the historic first day of adult-use cannabis sales in Illinois, according to the Illinois Department of Financial and Professional Regulation (IDFPR). More than 40 dispensaries sold adult-use product on Jan. 1, according to ABC 7 Chicago. With demand still high, customers and employees continue celebrate and remain mostly cordial, while questions about supply and taxes creep up and conversations continue about equal minority representation in the space.

Sales stories

Bachtell estimates more than 500 people consistently waited in line at Cresco’s five dispensaries, many of them for five to seven hours. The company provided waiting customers with coffee, water, pizza, lighters, hats and bags, while making space for the queues in nearby businesses it had rented for the day.

Cresco’s stores—in Chicago, Champaign, Rockford, Buffalo Grove and Elmwood Park—sold over 9,000 products to more than 3,000 people on New Year’s Day, according to a press release from the company. Cresco’s average receipt for the day was $135.

The Illinois Department of Financial and Professional Regulation has approved 11 more “same site” adult-use cannabis licenses, which grant existing medical cannabis dispensaries licenses to operate in the state’s newly launched adult-use market.

This most recent licensing round raises the total number of adult-use cannabis licensees to 46, according to a GlobeSt.com report.

Illinois has also approved its first “secondary site” adult-use cannabis licenses, which allows existing medical dispensaries to open a second adult-use location within a limited geographic area, the news outlet reported. Rise in Joliet and Thrive locations in Anna and Harrisburg have each received a secondary site license, according to GlobeSt.com.

The state will accept new adult-use cannabis licensing applications this year, including social equity applications, and will award 75 additional licenses, according to the news outlet.

Missouri Judge Jon Beetem has denied a family’s request for a temporary restraining order against the state after the family was not awarded a medical cannabis cultivation license.

Paul Callicoat and his family had planned to turn their 70-acre Sarcoxie property into a cultivation site, and sued the Missouri Department of Health and Senior Services after their application was denied, according to an AP News report.

The lawsuit argued that the state violated a right-to-farm amendment in the Missouri Constitution with its limit of 60 cultivation licenses, the news outlet reported. Joseph Bednar, the family’s lawyer, argued during a Dec. 30 hearing that the state should allow the market to decide which cultivation businesses survive, and criticized the “geographical bonuses” that favored applicants from zip codes with high unemployment rates.

Ross Kaplan, the state’s attorney, argued that Missouri followed the law’s minimum requirement to issue 60 cultivation licenses, and that the state’s medical cannabis regulations are intended to protect the public, not the licensees, AP News reported.

Beetem ruled Jan. 2 that the Callicoats had not demonstrated that they suffered an irreparable injury, according to the news outlet, but that the argument that the regulations violate the right-to-farm amendment requires further review.

In 2019, products allegedly derived from Luis Hummel’s hemp crop at 5th Sun Gardens in Lanesboro, Minn., tripped the state testing threshold for THC content. Hummel, licensed under an industrial hemp pilot program that was sanctioned by the 2014 Farm Bill, is fighting back against the state’s enforcement of that rule.

In March of that year, local sheriff’s deputy had stopped a driver who was transporting hemp-derived products (wax and “vape tips”) allegedly sourced from Hummel’s farm. Those products tested at 3.6% and 3.11% THC content, according to the state, but Hummel has since asserted that his crops passed state testing. The state then revoked Hummel’s hemp license. Hummel demanded an evidentiary hearing—a right to due process.

That hearing was denied, and Hummel went on to file a lawsuit against the Minnesota Department of Agriculture (MDA). On Jan. 2, 2020, a federal judge ruled that, yes, Hummel may proceed with his lawsuit. Judge Patrick Schiltz wrote that the Minnesota Department of Agriculture had limited its own ability to revoke licenses and that when the department chooses to do so, it must then go on to prove that licensees violated certain aspects of the pilot program.

“By identifying—repeatedly and in detail—the circumstances under which MDA can revoke a license, the [memorandum of understanding] implicitly limits MDA’s authority to revoke a license to those circumstances,” Schiltz wrote. “Put differently, if MDA had unfettered discretion to revoke licenses, then these provisions would serve no purpose other than to mislead participants into believing that MDA did not have such discretion.”

Read the full order below.

From there, the judge approached a constitutional property argument, writing that Hummel had a protected property interest in the actual hemp license that the state revoked. “Because MDA’s discretion to revoke was limited, Hummel had more than ‘a unilateral expectation’ that his license would remain effective under the end of the calendar year,” Schiltz wrote. “Instead, Hummel had a property interest protected under the Fourteenth Amendment.”

More legalization in more states. More product liability risks. More regulations. More M&A. More of many things is what insurance professionals involved in the cannabis industry can expect in 2020.

Insurance Journal asked four experts watching the cannabis and insurance space – an expert from an insurance advisory organization, an attorney who represents insurers, a marijuana legalization advocate and a wholesale broker – for their top three predictions for the year ahead.

Click here to read the complete article

Don Jergler ~ InsuranceJournal.com ~ 

Thanks to the new laws in Michigan and Illinois, the Midwest is no longer a recreational marijuana desert. But what does that mean for the region?

As of January 1st, 2020, two states in the Midwest permit the sale legalized recreational marijuana.

A new law in Illinois, which kicked in on the first of the year, makes weed use legal in the country’s sixth-largest state. Meanwhile, a similar law in Michigan took effect on December 1st, 2019.

Click here to read the complete article

Elizabeth Yuko ~ RollingStone.com ~ 

The cannabis industry’s knowledge base has largely proliferated through word of mouth and community consensus, but now, the Resource Innovation Institute (RII) is introducing multi-disciplinary, peer-reviewed Best Practices Guides to advise growers on resource-efficient cultivation.

“We feel this is a really big step in the evolution of the industry to raise the bar on environmental performance, but also to support producers with a vetted knowledge,” RII Executive Director Derek Smith told Cannabis Business Times. “Taking these certain steps will help them be more profitable [and] will help them reduce their energy consumption and be able to produce more product per input of energy.”

RII, a non-profit organization on a mission to advance resource efficiency, released its Best Practices Guides on LED lighting and HVAC at MJBizCon’s Associations Day Dec. 10. Both guides are available for download on the organization’s website.

The guides were developed by RII’s Technical Advisory Council (TAC), which brought together roughly two dozen experts from manufacturing, engineering, cultivation, architecture and more in a series of work groups on lighting and HVAC.

“As far as we can tell, it’s the first time that a group like that has been assembled where you’ve got competitors on the same phone call, all agreeing on guidance that is useful for cultivators to help them be more efficient in their operations,” Smith said. “What was enlightening for me was that these are experts who are working with cultivation clients on a daily basis, and they were dealing with terms like vapor pressure deficit or differential (VPD) and PPFD, but they had not, as a subset of the supply chain, agreed on even common definitions and actual detailed descriptions of these terms [or] why they’re important. They did that through this process, which was really powerful.”

TORONTO and DENVER, Jan. 02, 2020 (GLOBE NEWSWIRE) -- PRESS RELEASE -- MJardin Group, Inc., a premium cannabis producer, has announced that it has entered into a definitive agreement with Harvest DCP of Nevada, Cheyenne Holdings LLC, a division of Harvest Health and Recreation Inc., to sell all of its interest in GreenMart of Nevada LLC, which possesses a Nevada Marijuana Cultivation Facility License and operates the cultivation facility at 5421 E. Cheyenne, Nevada, for a total consideration of US$35 million in cash, comprised of US$30 million on Dec. 31, 2019, plus US$5 million upon license transfer, subject to regulatory approvals.

The company will use the proceeds of the transaction to reduce its debt obligations and for working capital requirements for its 2020 plan.

“We are pleased with the return on our investment at Cheyenne. The proceeds from the transaction significantly reduce our debt while strengthening our financial position towards funding our working capital requirements in 2020,” said Pat Witcher, president and CEO of MJardin. “We are starting the new year on stronger footing with a clear view on accomplishing our profitability targets based on all of our key assets coming online.”

MJardin continues to focus on growing operations in Nevada through Cannabella, an extraction, distribution and consumer product company acquired in the spring of 2019 (license transfer pending). Cannabella’s products are already in approximately 50 of the 68 retail dispensaries in Nevada, and the company anticipates that it will be able to expand to many of the new dispensaries being opened following the recent grant of approximately 50 additional licenses.

The transaction has been unanimously approved by the Board of Directors of the company, following the unanimous recommendation of a special committee of independent directors of the company. Canaccord Genuity Corp. acted as exclusive financial advisor to MJardin. Canaccord Genuity and Cormark Securities have provided fairness opinions to the special committee of the Board of Directors of the company stating that, as of the date of such opinions, and based upon and subject to the assumptions, limitations and qualifications stated in such opinions, the consideration being received under the transaction is fair, from a financial point of view, to the Company. Foley & Lardner LLP acted as U.S. counsel and Norton Rose Fulbright Canada LLP acted as Canadian counsel to MJardin on the transaction.

Santa Rosa, CA, Dec. 23rd, 2019 – PRESS RELEASE – Convergence Laboratories has announced that after a three-year journey, the company has officially received a Type 8 Testing Laboratory license to operate in the state of California from the Bureau of Cannabis Control (BCC). BCC License #C8-0000116-LIC was formally issued to Convergence Laboratories on Dec. 23, 2019. This license takes precedence over their previously awarded temporary license and allows Convergence Laboratories to “offer or perform testing of cannabis goods to manufacturers, individuals, and distributors in the state." In addition to licensing, Type 8 laboratories are required to obtain ISO/IEC 17025 accreditation.

The company, which provides valuable testing of cannabinoid-based products to patients and consumers in the state of California, operates in Santa Rosa, Sonoma County with an additional location opening in 2020 in Salinas, Monterey County. The comprehensive services provided by Convergence Laboratories are one of the most vital ancillary businesses catering to the hemp and cannabis sectors today. It is through services such as the ones offered by Convergence Laboratories that brands can ensure the quality and potency of their products, and consumers can be assured the purity of what they are consuming.

According to co-founder and CEO Nicole Griffith Barbieri, “To me, this industry isn’t about being the first or the biggest. It’s about being true to oneself, your ideas and focused on the vision. Timing, perseverance and integrity has brought Convergence Laboratories to life. I would like to thank everyone who supported us and worked so hard to get to this point. I am excited to see what the future holds."

FORT LAUDERDALE, Fla.--(BUSINESS WIRE)--PRESS RELEASE--HeavenlyRx Ltd., a CBD Wellness company, acquired a majority share of one of the largest top-ranked CBD companies, PureKana, LLC, on Dec. 27. Under the agreement, HeavenlyRx acquired a majority ownership stake from the company's founding members.

“This is a hugely meaningful day for both HeavenlyRx and PureKana,” said HeavenlyRx CEO Paul Norman. “With PureKana, we have a flagship brand to accelerate the growth of our company.”

PureKana is a rapidly growing CBD brand with a large consumer base that leans toward a young and active demographic. Their robust line of CBD products are fully derived from organically grown hemp and can be used in foods and nutritional additives. Once harvested, their hemp is carefully processed and undergoes extraction and quality testing, creating a rich CBD oil which is infused in their product lineup that spans oils, capsules, topicals, gummies and pet products.

“Partnering with a company like HeavenlyRx has been one of our main priorities since we founded PureKana,” said PureKana CEO Cody Alt. “Our brand and product, combined with HeavenlyRx’s distribution into major markets, makes this a match in CBD heaven. Together, we’re going to deliver the highest quality products to consumers that will drive the CBD and wellness industries forward.”

PureKana’s founders Alt and Jeff Yault have led the company’s profitable revenue growth year after year across online and e-commerce channels. In 2020, PureKana is expected to have another strong year of growth as the brand benefits from HeavenlyRx’s strategic selling capabilities in mainstream brick and mortar retail environments.

VANCOUVER, Dec. 30, 2019 /CNW/ - PRESS RELEASE - Nextleaf Solutions Ltd. has announced the Canadian Intellectual Property Office has granted the company a patent for its proprietary filtration stack used in the post-extraction processing of THC and CBD oils. Nextleaf has been issued a total of 11 patents by four international patent offices in the key markets of Canada, the United States of America, Australia and Colombia.

"Given the abundant supply of lower-grade dried cannabis, we believe processors that establish a competitive advantage by utilizing superior technology to transform otherwise unsellable biomass into high-purity THC and CBD oils at a lower cost than competitors, will generate better margins and build a sustainable long term business," said Paul Pedersen, CEO of Nextleaf Solutions. "As we close out 2019, I'm extremely proud of our R&D team for obtaining its 11th patent, protecting what we believe to be the most efficient methods for producing distilled THC and CBD oil at scale within a regulated environment."

2019 Milestones and 2020 Outlook

While Canada became the first developed country to federally legalize cannabis and cannabis-infused products, Nextleaf became the first public company granted multiple patents for industrial-scale extraction and purification of cannabinoids. Other key milestones in 2019, include:

Completion of Custom Extraction Plant

WASHINGTON, D.C. –  PRESS RELEASE – The chairman of the Senate Banking Committee alarmed advocates of cannabis banking reform Dec. 19 when he released a set of guidelines and concerns about legislation that the Senate is currently considering. Sen. Mike Crapo (R-ID) released a statement laying out a series of restrictions that he would like to see included in any cannabis banking bill that moves forward in the Senate, including only allowing banks to work with businesses that produce cannabis products containing 2% THC or less, which would disqualify the vast majority of the legal cannabis businesses already operating in most U.S. states. He also voiced his opposition to the House-approved SAFE Banking Act.

“We appreciate the chairman’s recognition of the need for reform and his willingness to consider this issue, but the guidelines he is suggesting do not reflect the realities of modern cannabis programs on the books in most states and would only exacerbate the current problems created by lack of banking in the cannabis industry,” said Aaron Smith, executive director of the National Cannabis Industry Association. “The SAFE Banking Act, which was approved by an overwhelming bipartisan majority in the House, is narrowly tailored to address the ongoing issues of public safety, transparency and fair access to capital. We are confident that the bill being considered by the Senate is the simplest, most effective solution and urge the chairman to hold a markup as soon as possible so we can allay any concerns he may have. Muddying the waters with ancillary issues will only delay passage of this straightforward and necessary reform.”

The Secure and Fair Enforcement (SAFE) Banking Act of 2019, or S. 1200, would prevent federal banking regulators from sanctioning banks for working with cannabis-related businesses that are obeying state laws, halting their services, taking action on loans made to those businesses or limiting a depository institution’s access to the Deposit Insurance Fund. The bill would protect ancillary businesses that work with the cannabis industry from being charged with money laundering and other financial crimes, and requires the Financial Institution Examination Council to develop guidance to help credit unions and banks understand how to lawfully serve cannabis businesses. Access to banking services would also allow small businesses and marginalized communities to have greater access to traditional sources of capital when operating in the cannabis industry.

The SAFE Banking Act was approved by more than two thirds of the House of Representatives, including nearly half of voting Republicans, in September. The Senate version was introduced in April by Sen. Jeff Merkley (D-OR) and Sen. Cory Gardner (R-CO) and currently has 33 bipartisan cosponsors. In July, Sen. Crapo signaled his willingness to consider this issue by holding a hearing in the Banking Committee, and has since made several statements expressing his desire to move cannabis banking legislation forward in the upper chamber.

Cannabis is legal for adults in 11 states as well as the District of Columbia and the territories of CNMI and Guam, and 33 states as well as several territories have comprehensive medical cannabis laws. The substance is legal in some form in 47 states. Sen. Crapo’s home state of Idaho is one of three states that do not allow cannabis in any form. Three states bordering Idaho have regulated cannabis for adults, and two of its neighbors have medical cannabis programs.

LOS ANGELES, CA, Jan. 02, 2020 (GLOBE NEWSWIRE) -- via NEWMEDIAWIRE -- PRESS RELEASE -- Agritek Holdings, Inc., a fully integrated, active real estate investor for the cannabis sector and consultant for multiple cannabis brands, has announced the acquisition and launch of the premium cannabis lifestyle brand “Higher Society,” which includes craft cannabis concentrates, extracts, tinctures, oils, flower, topicals, edibles, rosin, vape pens and accessories through the newly announced Apex Extractions Distribution division.

Recently, Agritek Holdings announced board approval for the acquisition of certain assets, distribution and brands of the award-winning, California-based cannabis manufacturing company Apex Extractions.

The new Agritek Holdings and acquisition of the Apex distribution licensed division will allow the company to join forces to launch the “Higher Society” premium cannabis brand initially in California in order to drive revenue for both companies.

The company will focus on building a multi-state consumer-focused cannabis flower and concentrate brand portfolio focusing on the premium and luxury segments. The “Higher Society” lifestyle cannabis brand will be the cornerstone brand of the new Agritek/Apex through the completed acquisition of Apex’s Distribution division. The company will aggressively expand the Higher Society brand throughout the west coast of the United States through its strategy to be the leader of the highest-value segments of the California cannabis market. The Higher Society Cannabis brand will be produced and distributed through Apex Extractions exclusively, and will be offered throughout 200 dispensaries initially in California already selling Apex products.

Additionally, the company plans to apply for a regulated cannabis delivery license within northern California near the Apex manufacturing facility in Oakland. Once approved, this will further provide customers a dynamic opportunity to purchase and have premium cannabis products delivered to their door.