MjLink Cannabis Business News and Press

DENVER, Colo. December 31, 2019 -- PRESS RELEASE -- Marijuana rules stemming from the General Assembly’s 2019 legislative session go into effect on Jan. 1, 2020 for all regulated marijuana businesses across Colorado, most notably allowing, for the first time, state licensing of hospitality establishments and the issuance of permits for residential delivery of medical marijuana. Final rules were adopted by the State Licensing Authority on Nov. 5, 2019 after a summer of extensive stakeholder engagement led by the Marijuana Enforcement Division (MED).

“Feedback from our stakeholders through work groups and public comment has always been a MED priority,” said Jim Burack, MED Director. “But this year, we encouraged an even more collaborative approach to rule development where work group participants utilized their experience and expertise within stakeholder teams to engage more directly in the drafting of rule language.”

Highlights of notable key rules that go into effect on Jan.1 include:

Marijuana Hospitality Businesses (HB19-1230):

Regulated Marijuana Delivery (HB19-1234):

Michigan 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, according to a Michigan Radio report.

Delivery drivers must be 21 or older and can only carry enough cannabis products for about six deliveries, the news outlet reported. Customers must also be 21 and older with a valid ID, and are limited to two and a half ounces of cannabis per order.

Michigan has licensed 26 adult-use cannabis dispensaries, which are facing very high demand since the market launched Dec. 1, according to Michigan Radio. The state has seen nearly $6.5 million in adult-use cannabis sales from Dec. 1 through Dec. 29, the news outlet reported.

The U.S. Department of Agriculture approved three U.S. states’ hemp regulation plans in late December, 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.

See each state’s plan here:

Ohio 

Louisiana 

New Jersey 

“With the USDA approving our state industrial hemp plan, the pieces of the regulatory puzzle are falling into place,” Louisiana Department of Agriculture and Forestry Commissioner Mike Strain said in a public statement. “We are now able to move forward and begin accepting industrial hemp license applications.”

The U.S. Department of Agriculture (USDA) has issued its hotly anticipated Interim Final Rule (IFR). The IFR implements the hemp-related provisions of the Agricultural Improvement Act of 2018 (the “2018 Farm Bill”). Both the IFR and 2018 Farm Bill apply equally to states and Indian tribes. To avoid repetition, only “states” are referenced here.

The IFR was published Oct. 31, 2019, and became effective immediately. It is already impacting the burgeoning U.S. hemp industry.

States must implement the IFR either by developing production plans or adopting USDA’s plan from the IFR. But some states are choosing to postpone this decision.

The 2018 Farm Bill extended the authority to produce hemp through state “pilot programs” under the Agricultural Act of 2014 (the “2014 Farm Bill”) for one year after USDA’s release of its production plan. So, states with existing pilot programs can delay implementing the IFR through the 2020 growing season. This is important, for one, given many states’ concerns over the IFR. Other states, including some with pilot programs, perceive advantages to implementing the IFR sooner.

It is thus useful to examine the IFR alongside the 2014 and 2018 Farm Bills, together with a survey of how some states have approached hemp production previously and are responding to the IFR now.

The 2014 Farm Bill – Pilot Programs for “Research” Purposes

The 2014 Farm Bill authorized state departments of agriculture and universities to produce hemp “for purposes of research conducted under an agricultural pilot program or other agricultural or academic research.” The law defined “pilot programs” but did little to clarify the meaning of hemp production “for purposes of research.” Congress essentially delegated this authority to states, without mentioning either USDA or the U.S. Drug Enforcement Administration (DEA).

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

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

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

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

Stay Informed

DENVER, Dec. 23, 2019 (GLOBE NEWSWIRE) -- PRESS RELEASE -- Akerna, a cannabis compliance technology provider and developer of the cannabis industry’s first seed-to-sale enterprise resource planning (ERP) software technology (MJ Platform), has named John Fowle, chief financial officer (CFO). As CFO, Fowle will leverage his 20 years of deep systems, integration and SaaS experience to drive the company’s overall financial strategy, including growth plans, as Akerna continues to acquire complementary technologies.

"We are excited to have John on board. His M&A experience, coupled with his proven integration track record, aligns well with our strong performance-oriented culture,” said Jessica Billingsley, chief executive officer of Akerna. “The depth of his SaaS expertise, strength in metrics and reporting, as well as his impressive reputation for execution and achieving results, makes him the right choice to lead our finance team.”

Throughout his career, Fowle has overseen several divisions such as finance, business operations, business intelligence, and monetization operations. Before joining Akerna, he served as CFO for REV360, a SaaS and business services company, and as vice-president and controller for WELLTOK. While at WELLTOK, Fowle led the successful diligence and integration of six acquisitions valued at over $230 million.

"I am pleased to join the Akerna team. I believe the potential for growth and value creation is tremendous, given the smart and passionate people, strong technology, and global footprint,” said John Fowle. “Having played a leadership role in similar business situations and industries, I am confident that we can develop and execute plans to drive consistent growth and result in the further creation of shareholder value.”

Fowle is a certified public accountant. He holds an MBA from the University of California, Irvine, and a Bachelor of Science Degree in Business Administration from the University of Southern California.

KELOWNA, B.C, Dec. 23, 2019 /CNW/ - PRESS RELEASE - Valens GroWorks Corp., a vertically integrated provider of extraction products and services, including a diverse suite of extraction methodologies, next generation cannabinoid delivery formats and an ISO 17025 accredited analytical lab, has announced a multi-year extraction and white label agreement with Emerald Health Therapeutics Inc., a multi-year product supply agreement with Dynaleo Inc., and an update of its OTCQX stock ticker to VLNCF.

Valens signs multi-year extraction and white-label agreement with Emerald Health

The agreement has an initial four-year term, with Emerald Health supplying Valens with an annual minimum quantity of 10,000 kilograms of cannabis and hemp biomass. Valens will process the biomass provided by Emerald Health on a fee for service basis into premium quality resins and distillates using the company's proprietary extraction processing methods. In addition to extraction services, Valens will provide Emerald Health with a variety of white label services including formulation, mixing and filling for product formats including vaporizers, softgels and tinctures. Valens expects to receive and begin processing the first shipment from Emerald Health in Q1 of fiscal 2020 and currently holds all required licensing from Health Canada to carry out its obligations under the agreement.

"We are pleased to have Valens as one of our strategic manufacturing partners, and look forward to bringing the variety of products we will generate with them to market," said Riaz Bandali, CEO of Emerald. "Beyond being an industry leader in extraction, formulation, and other services, Valens' cost-effective end-to-end fulfillment solution can help transition our novel product ideas into tangible products in a faster and more cost-effective manner."

"We are excited to partner with Emerald Health to provide our extraction and white label expertise to bolster their product platform," said Tyler Robson, CEO of The Valens Company. "Emerald Health is one of the industry's leading players, focused on an important medical cannabis patient program for individuals in need across Canada. We look forward to working closely with the team at Emerald Health as they scale their operations and expand their product portfolio for years to come."

TORONTO, Dec. 23, 2019 (GLOBE NEWSWIRE) -- PRESS RELEASE -- WeedMD Inc., a federally-licensed producer and distributor of medical-grade cannabis, and Starseed Holdings Inc., a medically-focused, federally-licensed cannabis company, have announced the closing of the previously announced acquisition of Starseed Holdings by WeedMD.

Concurrent with the closing, WeedMD also completed the previously announced private placement of subscription receipts with the LiUNA Pension Fund of Central and Eastern Canada (LPF), for aggregate gross proceeds of $25 million. The issue price of each subscription receipt is $1.0832, and each subscription receipt shall be automatically exchangeable into one WeedMD common share upon its shareholders approving certain matters associated with the financing at a meeting scheduled for Feb. 4, 2020.

“We officially welcome the Starseed team to the WeedMD family which together will kick-off 2020 as a very compelling, vertically-integrated cannabis company that will execute across the entire value chain,” said Keith Merker, CEO of WeedMD. “Starseed’s unique medical distribution platform complements WeedMD’s high-quality cultivation and processing platform. This partnership, along with the $25 million strategic equity investment by LPF, positions WeedMD and its shareholders with a fortified balance sheet and one of the most captive medical cannabis businesses in the country as we enter the new year.”

Management Team

Following today’s closing, Starseed’s management team, which brings extensive medical, operating, and financial expertise, in addition to strong industry and client relationships, integrates into WeedMD’s senior leadership team as follows:

MADISON – PRESS RELEASE – Nearly 50% of bank respondents who are currently not banking hemp said they will extend services to hemp-related customers in 2020 according to a recent Wisconsin Bankers Association (WBA) survey.

WBA’s annual Bank CEO Economic Conditions Survey asked three hemp-related questions in addition to more traditional economic inquiries. The responses highlighted that many Wisconsin banks have been working through the complex regulatory issue of hemp and are now better prepared to assist their customers.

“Wisconsin’s community bankers strive to help their customers and communities. The reality is that hemp is a very new and complex issue from both a regulatory and business viewpoint,” explained Rose Oswald Poels, WBA President and CEO. “It takes time to work through these complexities. Because there is no one-size-fits-all approach, each bank’s approach and timeframe will be different.”

RELATED: Banking the Hemp Industry: 3 Tips for Success

It was only within the last month that federal regulators issued their first guidance for banks regarding hemp banking.

Arkansans have bought more than 4,200 pounds of medical marijuana in 2019 -- the first calendar year of legal sales in the state.

That accounts for more than $28.13 million spent on the drug, according to the Arkansas Department of Finance and Administration. 

State regulators expect the market to take off even more in early 2020 as the two remaining growing facilities begin full operations and as the remaining dispensaries open to the public. 

Click here to read the complete article

Hunter Field ~ ArkansasOnline.com ~

The doctor for a seven-year-old boy whose mother uses cannabis-based drugs to treat his epilepsy has agreed to write to the Scottish Government in an attempt to secure him a prescription.

Dr Desmond Spence is writing to Health Secretary Jeane Freeman on behalf of Karen Gray, whose son Murray takes medicinal cannabis to keep crippling seizures at bay.

The doctor, from the Barclay Medical Practice Eastcraigs in Edinburgh, said that it was “ridiculous” that Gray was having to fork out more than £1,300 month to have the drugs couriered from Holland for her son.

Click here to read the complete article

Kevan Christie ~ The Scotsman ~ 

Two groups are competing to bring adult-use cannabis legalization initiatives to the November 2020 ballot.

A group of cannabis advocates in Oklahoma filed a new adult-use cannabis petition with the secretary of state’s office Dec. 27 after withdrawing a similar proposal.

The original petition, called State Question 806, was pulled after it received criticism from the medical cannabis community, who said they were not consulted for input and that the petition had not been fully vetted, according to a Tulsa World report.

“The new ballot initiative strengthens the language of the previously filed initiative to ensure that we are crystal clear that this program does not adversely affect the current Oklahoma medical marijuana industry or its patients,” said Michelle Tilley, a spokeswoman for the filers, in a public statement.

The new petition has been designated SQ 807, and was signed by Tilley, an Oklahoma City political consultant, and Ryan Kiesel, a former state representative and the executive director of Oklahoma’s American Civil Liberties Union affiliate, according to Tulsa World.

Italy’s supreme court ruled Dec. 19 that the home cultivation of cannabis for personal use is legal in a landmark decision that is expected to receive pushback from critics.

The ruling comes after the Court of Cassation was asked to clarify previous contradictory interpretations of the law, according to The Telegraph.

The court ruled in 2008 that cannabis cultivation was illegal, but the issue has been a point of confusion for courts at various levels, which have issued contradictory judgements over the years, according to the news outlet.

The supreme court took up this most recent case last October, when a defendant challenged a Naples Court of Appeals ruling that sentenced him to a year in jail for cultivating two cannabis plants.

Under the supreme court’s ruling, “small amounts grown domestically for the exclusive use of the grower” are excluded from the law, The Telegraph reported, which effectively overturns the Naples Court of Appeals ruling.

Arkansas medical cannabis sales have surpassed $28 million this year.

Patients have purchased more than 4,209 pounds of product, spending $28.13 million since sales launched in May, according to a local KFSM report.

Fourteen dispensaries are currently operating in the state, the news outlet reported. Suite 443 in Hot Springs was the first dispensary to open on May 10.

A complete list of sales data can be found on KFSM’s website.

Indiana lawmakers are ramping up cannabis policy reform efforts going into the new year, filing legislation that addresses decriminalization and smokable hemp ahead of the 2020 legislative session.

Sen. Karen Tallian (D-Ogden Dunes) filed three bills as part of a cannabis reform package in the Senate, according to an Indy Star report. One proposal would legalize smokable hemp, one would create a commission to oversee the regulation and licensing of CBD products, and the third bill would decriminalize the possession of less than one ounce of cannabis.

Rep. Jim Lucas (R-Seymour) has introduced a similar decriminalization proposal in the House, the Indy Star reported.

Tallian’s decriminalization bill is on Senate Democrats’ 2020 priority list, according to the news outlet, but Gov. Eric Holcomb has indicated that he is against legalization in Indiana until federal prohibition is lifted.

However, Sen. Eddie Melton (D-Gary), a Democratic candidate for governor, plans to co-author Tallian’s bill, according to the Indy Star. He also supports legalization, the news outlet reported.

The Missouri Department of Health and Senior Services (DHSS) issued 60 medical cannabis cultivation licenses Dec. 26.

Over 500 applications were submitted to the state, according to a local KRCG report. The DHSS used a blind process to review and score each application, which consisted of at least 17 worksheets describing management plans, facility details, security measures and other eligibility requirements that were outlined in the program rules, the news outlet reported.

Applicants granted licenses have five days to accept the offer, and those not awarded licenses are now exploring their options to participate in Missouri’s up-and-coming medical cannabis market. This includes St. Louis-based Real Cannabis Co., which ranked 100 out of the 550 applications that were submitted for the 60 licenses.

“We do not know the specific scoring in each category at this point,” Real Cannabis Co. founder and CEO Derek Mays told Cannabis Business Times. “We are still optimistic about our manufacturing and dispensary licenses, and will be considering all options going forward to participate in the industry.”

For now, the Real Cannabis Co. team is awaiting the outcome of the other licensing rounds, and once they know which licenses they are ultimately awarded, they will consider pursuing other options.

Data suggests that some customers will cross state lines in search of state-licensed marijuana retailers, despite warnings that it’s illegal to bring the product back home.

Retailers legally selling marijuana for the past month in Michigan say they have drawn customers from surrounding Midwestern states where the drug remains illegal and, as Illinois prepares to joins the recreational market on Wednesday, officials are renewing warnings to consumers against carrying such products over state lines.

Click here to read the complete article

Kathleen Foody and David Eggert ~ Associated Press ~ 

With 2019 just about in the books, the latest headlines are a whirlwind of forward- and backward-looking reviews of where the industry is going next year and where it’s been this year. With new markets opening to adult-use sales (Michigan, Illinois) and maturing markets confronting their own growing pains (California, Colorado), this is a time of great transition in the cannabis industry. Let’s take a look.

In California, the Cannabis Advisory Committee “warned Gov. Gavin Newsom and California legislators that high taxes, overly burdensome regulations and local control issues posed debilitating obstacles to the legal marijuana market,” according to the San Francisco Examiner. Those obstacles have spurred illicit-market growth, too, leaving state regulators in a quandary: some of the high-level goals of legalization are not being realized in what has become the world’s largest cannabis market. So, what comes next? In the Examiner’s piece, sources around the state suggest that a new law—perhaps one left to the voters—may be in order.

The Motley Fool points to Major League Baseball’s December decision to remove cannabis from its list of banned substances as one of the great victories for the industry in late 2019. Other professional sports have mostly stood on the sidelines here, but the MLB brings another degree of normalization to this evolving marketplace. 

Canada legalized adult-use cannabis in 2018 (with cannabis-derived edibles, beverages and concentrates being legalized in 2019), and that move has allowed licensed producers up north to capitalize on quickly opening global marketplace. In the U.S., however, where cannabis companies are turning decades of underground experience into business savvy, the federally illegal status of the crop has kept American growers out of the international space. The Washington Post looks at how this disconnect is teeing up even more frustration for those businesses that plan to scale up in the next year.

Michigan began adult-use sales at three licensed dispensaries in Ann Arbor Dec. 1, but there’s a lot more coming in the new year. According to mlive.com, as of Dec. 23, 2019, “the state has issued 42 recreational marijuana businesses licenses, including 21 retail licenses, 11 growing licenses to four businesses, 4 processor licenses, a license for testing labs, two event organizing licenses and three to secure transportation companies.” 

Cannabis Wire has a great feature on Michael Cone’s Greenview Investment Partners, which serves as a reminder that scams abound in the burgeoning cannabis space. “Cone is one of a handful of cannabis fraudsters whose schemes have been exposed in public documents,” Stephen Paulsen writes. “But talk to advocates and entrepreneurs in the cannabis space and you’ll find that several have known a company something like Greenview: a fly-by-night business that, promising riches, offers dubious services in cannabis investments and/or consulting.” 

WASHINGTON: The Washington State Liquor and Cannabis Board (WSLCB) issued an emergency suspension and revocation of marijuana retailer “Herban Legends,” License No. 420291, located at 55 Bell St. Suite 100, Seattle, WA 98121. The licensee has held a marijuana retail license since February 2016. This emergency suspension follows complaints from employees, vendors, nearby businesses and Read the full article...

WASHINGTON: The Washington State Liquor and Cannabis Board (WSLCB) today issued a Board Order of Suspension for The Smoke Shop after an investigation found multiple violations of their state licenses and violations of state and federal drug laws. The suspension is for the licensee listed below: The Smoke Shop: 9817 16th Ave SW, Seattle WA  Read the full article...