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MjLink Cannabis Business News and Press

Cannabis Industry Business Professionals Blogs, Press Releases and News Articles from the best journalist in the industry. Stay updated on all news from many online cannabis news outlets, on MjLink.com
Cannabis Business Times is owned by GIE Media, based in Valley View, Ohio. CBT’s mission is to help accelerate the success of legal cannabis cultivators by providing actionable intelligence in all aspects of the business, from legislation, regulation and compliance news to analysis of industry trends, as well as expert advice on cultivation,...
Cannabis Business Times is owned by GIE Media, based in Valley View, Ohio. CBT’s mission is to help accelerate the success of legal cannabis cultivators by providing actionable intelligence in all aspects of the business, from legislation, regulation and compliance news to analysis of industry trends, as well as expert advice on cultivation, marketing, financial topics, legal issues and more.

CBT focuses strictly on the business of legal cannabis for medical and recreational use and aims to provide timely information—through its website, e-newsletter, mobile app, print magazine and annual conference—to help the reader make timely, informed decisions to help them run their businesses better and more profitably. In 2018, Cannabis Business Times was named Magazine of the Year by the American Society of Business Publication Editors.
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5 Things Growers Learned Their First Year of Cultivation: Jason Evans

Originally from Ventura County, Calif., Jason Evans spent his summers working on his family's roughly 1,000-acre farm.

They grew various crops such as tomatoes, lima beans, peppers, jalapenos and more. "Basically, stuff that goes into salsa," Evans says with a laugh.

Evans explains that after seeing his family's stressors on the farm, he decided to go to college to study finance instead of taking over the family farm. 

Upon graduating, he spent about 20 years in San Francisco in institutional fixed income, he says. He retired from that in 2012 and moved on to own two brick-and-mortar "soda pop and candy shop" retail stores. He had one location in Portland, Ore., and another in Palm Springs, Calif., he says.

"I was traveling between the two and not really enjoying it," he adds.

In late 2015—following the passage of the 2014 Farm Bill—he decided to go back to his roots and co-founded Tweedle Farms with James Green.

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In Suit Against Kern County, Apothio Alleges Illegitimate Investigation ‘Tips’ By Disgruntled Vendor, Fish and Wildlife Misrepresentation of FBI Findings, Sheriff Blow-Up at Government Meeting

Two years into Apothio LLC’s lawsuit against Kern County, Calif., and others—relating to local and state government officials’ alleged destruction of roughly 500 acres of hemp—the company is bringing forth new allegations.

On May 25, Apothio filed an amended complaint against various defendants previously named in case filings, including representatives from the Kern County Sheriff’s Office (KCSO) and the California Department of Fish and Wildlife (CDFW). It also added another name on the defendant list: Andrew Halverson of the CDFW, who was not mentioned in the original April 2020 complaint but has been mentioned in subsequent case filings.

In the case playing out in the U.S. District Court’s Eastern District of California, the amended complaint alleges, among other things, that “Halverson intentionally, knowingly, and recklessly misrepresented Apothio’s terminated processing agreement with [a company called] ProCann … in the Halverson Warrant and Affidavit to manufacture a narrative that Apothio intended to sell hot hemp rather than legal hemp below the 0.3% THC threshold.”

The complaint continues: “In the Halverson Warrant and Affidavit, Halverson stated (1) that Apothio cannot sell hemp with over ‘0.3% THC content,’ (2) that a contract between Apothio LLC and ProCann states that Apothio will send biomass to ProCann, and (3) that Apothio is ‘planning on selling the hemp that it is [sic] over 0.3%.’”

However, the language in the since-terminated contract allegedly stated, per the May 25 complaint, that “the biomass extract to be sold is to be ‘less than 0.3% THC,’ showing that Apothio possessed the opposite intent of what Halverson falsely attributed to Apothio.”

Another allegation in the complaint centers around an interview that Federal Bureau of Investigation (FBI) agents supposedly had with Kern County Agricultural Commissioner Glenn Fankhauser and Deputy Director Cerise Montanio about a week prior to the crop’s destruction in October 2019. The complaint cites a four-page FBI report of that interview that stated that Apothio CEO Dr. Trent Jones was working to be compliant with laws and hemp industry regulations, didn’t appear to have criminal intent, and provided documentation about Apothio’s legal hemp research with Cerro Coso Community College.

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Important Deadlines Nearing for Tennessee Hemp Producers

The Tennessee Department of Agriculture(TDA) and Farm Service Agency (FSA) is working together to remind Tennesseehemp producers of important deadlines for the 2022 growing season. 

In a recent press release, TDA’s Hemp Coordinator Denise Woods said, “It’simperative that current producers complete their applications now to ensure nolapse in licensure. Producers can easily complete their application online, andwe also have a Hemp Grower Application Checklist at the bottom of theapplication to help them make sure they have all requirements submitted.”

All hemp producers must belicensed by the TDA and are required to set up a Farm Record with the FSA andreport their hemp crop acreage yearly by the July 31 annual deadline, accordingto the release.

In addition, already licensedproducers must reapply through the TDA by 4:30 p.m. CDT June 30; however, newproducer applications will be accepted all year and expire June 30 annually. Ifthe producer does not submit their application, license fees and requireddocumentation by 4:30 p.m. CDT June 30, the producer's license will expire, therelease states. 

“We want to see this evolvingagricultural sector progress in Tennessee,” Agriculture Commissioner CharlieHatcher said. “We both play a part in the successful implementation of thestate’s hemp program by working together to support growers and providingresources for them.”

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FDA Warns Four Companies for Selling Unapproved Animal Drugs That Contain CBD

A handful of companies have landed in the crosshairs of the U.S. Food and Drug Administration (FDA) for illegally selling unapproved CBD products intended for use in food-producing animals.

The FDA announced May 26 that it had issued warning letters to four businesses—Haniel Concepts dba Free State Oils, Hope Botanicals, Plantacea LLC dba Kahm CBD and Kingdom Harvest—for violating the Federal Food, Drug, and Cosmetic (FD&C) Act.

“Under the Federal Food, Drug, and Cosmetic (FD&C) Act, any product intended to treat a disease or otherwise have a therapeutic or medical use, and any product (other than a food) that is intended to affect the structure or function of the body of humans or animals, is a drug,” FDA officials wrote in the announcement. “The FDA has not approved any human or animal products containing CBD other than one prescription drug product to treat rare, severe forms of epilepsy in children.”

That prescription drug, Epidiolex, was approved in 2018, and the FDA considers all other CBD products that are intended for use as a drug as unapproved drugs that remain illegal to sell, according to the agency’s release.

RELATED: DEA Greenlights Epidiolex. What’s Next for CBD and the Cannabis Industry?

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Analyzing Cart Size Dynamics in Wholesale Cannabis

Cart size, otherwise known as average order value (AOV), for wholesale cannabis transactions varies significantly across markets and over time due to specific market conditions, regulations, and product popularity.

To gain additional perspective on consumer trends, we analyzed AOV alongside product category market share and pricing to determine if the contents of a cart and/or price shifts impact cart size. Markets analyzed include California, Oregon, Colorado, Michigan, Nevada, Washington, Arizona, Oklahoma, and Alaska. To start, let’s look at the current state of AOV within LeafLink data and then identify any trends that exist across these markets.

Average Order Value in 2022

Between Jan. 1 and April 4 of this year, overall AOV in LeafLink was $3,750 across the nine markets—less than in 2021 ($4,107) and 2020 ($4,000). Combining this data with insights on order volume and frequency provides additional context to tell the full story.

Even while average order value decreased, the total number of orders increased. Total orders per month across these nine markets grew by 35.7% from 2020 to 2021 and 15.6% in 2022 due to a combination of additional buyers using LeafLink and increased purchase frequency.

When analyzing market-level data, there are clear distinctions between buyer behavior and a lot of variance across these markets.

2022 AOV and Most Popular Categories By Market

Market AOV  #1 Category #2 Category #3 Category
MI $7,596 Flower Cartridges Concentrates
NV $7,007 Cartridges Flower Edibles & Ingestibles
AZ $6,154 Cartridges Edibles & Ingestibles Flower
CA $3,544 Flower Pre-Rolls Cartridges
AK $3,081 Flower Cartridges Edibles & Ingestibles
WA $1,987 Flower Edibles & Ingestibles Concentrates
CO $1,834 Cartridges Concentrates Edibles & Ingestibles
OR $1,531 Flower Cartridges Edibles & Ingestibles
OK $1,014 Edibles & Ingestibles Cartridges Flower
Categories are ranked by their percentage of transaction volume in LeafLink. MI, NV, and AZ see the largest average order values, while AOV drops off for CA and AK respectively, then even further in WA, CO, OR, and OK when measured from Jan. 1 to April 4, 2022.

When considering market maturity within the AOV hierarchy, we can see a trend: States that were first to legalize adult-use cannabis generally see AOVs decrease as more buyers and sellers open their doors and the markets mature and stabilize. Oklahoma is an exception as the state legalized cannabis solely for medical use in 2018. So, what other variables might impact AOV?

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Harborside Inc. Reports First Quarter 2022 Financial Results

OAKLAND, Calif. and TORONTO, May 26, 2022 /CNW/ --PRESS RELEASE--Harborside Inc.(CSE: HBOR) (OTCQX: HBORF),a California-focused, vertically integrated cannabis enterprise, today filedits interim financial statements and management's discussion and analysis forthe three months ended March 31, 2022 under the company's profile on SEDAR at www.sedar.com.

The Q1 2022 Financial Results encompass a period reflecting only one monthof contribution from UL Holdings Inc. ("Urbn Leaf"), which the company acquired on March 1, 2022, and no contribution from LPF JV Corporation("Loudpack"), which the company acquired subsequent to quarter-end onApril 4, 2022. The Loudpack and Urbn Leaf acquisitions have transformed the companyinto one of the largest vertically integrated cannabis enterprises inCalifornia.

Board of Directors Appointment
Harborside also announced that Felicia Snyder has joined the board ofdirectors of the company, effective immediately. An entrepreneur,corporate strategist, seasoned cannabis executive and brand builder, Ms. Snyderis currently Founder and co-CEO of Arcana, an experiential hospitality brand.She was a founding executive at Tokyo Smoke, one of Canada's most recognizedcannabis brands and a leading Canadian cannabis retailer, where she helped toscale the business through its merger with Doja Cannabis and eventual sale toCanopy Growth Corporation. Post-acquisition, she was Vice President at CanopyGrowth, managing a portfolio of premium cannabis brands across all productcategories. Prior to Tokyo Smoke, she worked for several years in South Koreawith Samsung Electronics, where she oversaw a variety of projects related tobusiness strategy, acquisitions, investments, partnerships, and development ofnew products and services. She is also a Google alum and started her career inFinancial Services Management Consulting at Oliver Wyman, a global consultingfirm. She holds an MBA from the Wharton School of the University of Pennsylvania.

"On behalf of the Board and management team of Harborside, I amdelighted to welcome Felicia to the Harborside team," said Ed Schmults,Chief Executive Officer. "Her diverse skillset and significant cannabisindustry experience are valuable additions to Harborside as we work tointegrate our recent acquisitions and build the flagship California cannabiscompany."

The appointment of Ms. Snyder to the Board fills a vacancy created bythe previously announced resignation of Michael Dacks.

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As Ayr’s Head of Corporate Responsibility, Khari Edwards Sees Opportunities for All

Ayr Wellness
Edwards

With New York and New Jersey making grand entrances in the adult-use cannabis space this year, the team at multistate operator Ayr Wellness wanted to help prepare an equitable workforce for the jobs to come. In March, Khari Edwards, the company’s head of corporate responsibility, led a series of “Changing Legacies” events: expungement clinics for those with cannabis-related convictions lingering on their records.

The intent at events like those, he says, is to get out in front of this persistent problem, to confront the weight of past punishment keeping people separated from a sense of freedom.

“The reason why we named them ‘Changing Legacies’ is because, if you expunge somebody’s record, you now create an opportunity for these folks to grow,” Edwards says. “You put them in a bigger pot of opportunity.” This is an inherent promise of the emerging cannabis industry, he adds, unique in its attachment to social justice.

He describes one man he met at a Changing Legacies clinic, a man who had been convicted of a cannabis-related crime in 1973. For nearly 50 years now, that albatross had dogged him through jobs and housing and family relationships, tamping down his ability to move freely. The sheer scope of time was jarring to Edwards. The expungement process—which itself tends to be rather opaque from one jurisdiction to another—helped lift that burden from his shoulders, Edwards says.

While public agencies and legislators are increasingly adding various strands of social equity language into the laws governing state-legal cannabis markets, the work falls even more visibly to private businesses already operating in the space.

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California Senate Approves Bill to Prohibit Municipalities From Banning Medical Cannabis Access

The California Senate has approved legislation that aims to restore voter-approved medical cannabis access, sending the bill to the Assembly for consideration.

Senate Bill 1186, sponsored by Sen. Scott Wiener, D-San Francisco, passed the Senate with a unanimous bipartisan vote, the Sierra Sun Times reported.

RELATED: California Senator Introduces Legislation to Bar Municipalities from Prohibiting Medical Cannabis Dispensaries Within Their Jurisdictions

S.B. 1186 would require all cities and counties to provide medical cannabis access through brick-and-mortar dispensaries or delivery services, although it would not change municipalities’ ability to limit or ban adult-use sales.

While Proposition 64, California’s voter-approved adult-use cannabis legalization law, allowed municipalities to restrict adult-use cannabis businesses within their jurisdictions, it did not address medical cannabis, which California voters legalized in 1996 through Proposition 215. The Legislature later gave municipalities the ability to prohibit medical cannabis operations through the Medicinal and Adult-Use Cannabis Regulation and Safety Act (MAUCRSA).

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Omnichannel Marketing: A Guide for Cannabis Retailers

Editor’s note: The following is adapted from Breaking the Stigma.

There’s no question: in-store shopping is being replaced by online purchasing. In 2020, for example, the number of online-only shoppers over Black Friday weekend increased by 44%. Obviously, the COVID-19 pandemic likely influenced this increase, but it’s part of a larger trend.

This trend has made the implementation of omnichannel strategies a necessity for retailers. Omnichannel is about providing a seamless, excellent customer experience across all the possible shopping channels, whether a customer goes into a store or orders online for delivery or pickup. For cannabis retailers in particular, doing omnichannel well is a great way to stand out from the competition.

Take Black Friday, for example. While many people enjoy the thrill of waiting in line on Black Friday, there are plenty of shoppers who just want great deals and have become accustomed to finding those deals from the luxury of their home computer or mobile device. If they can go online, get the deal and do pickup without having to fight through the crowds, it’s an incredibly delightful experience and created the equally as well-known shopping holiday, Cyber Monday.

This is what omnichannel is all about—providing a consistently great customer experience across all channels of your stores. As important as omnichannel is, it can also be a challenge. Below are five strategies to help you align your retail store with your online presence.

1. Convey Your Brand

When someone visits your website, they should immediately get an impression of your brand. The colors, the font and the images should all support your brand identity. Whether a customer walks into your physical location or opens up your home page online, you want to evoke the same feelings.

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Connecticut Lawmakers Approve New Medical Cannabis Testing Regulations

A legislative committee in Connecticut signed off May 24 on new medical cannabis testing regulations that were proposed by regulators earlier this year.

The new rules would set new allowable levels of mold and yeast at a limit of 100,000 colony forming units per gram and would not allow any detectable levels of Aspergillus, according to the CT Mirror.

Officials from the Department of Consumer Protection, which regulates the medical cannabis market in Connecticut, proposed the new regulations after a rule change last year allowed one of the state’s two testing labs to increase its limit for mold and yeast.

Regulators approved a request from AltaSci Labs last year to raise its limits to 1 million colony forming units per gram when the lab’s limit had initially been 10,000 units per gram. The move sparked complaints from patients, according to the CT Mirror.

Northeast Laboratories, the other medical cannabis testing lab in the state, has maintained its limit of 10,000 colony forming units per gram.

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Georgia Voters Express Support for Adult-Use Cannabis Legalization

Georgia voters have let their representatives in Atlanta know that they support adult-use cannabis legalization.

A majority of voters responded favorably to a non-binding advisory question on the state’s primary election ballot that asked if Georgia should legalize, regulate and tax cannabis like alcohol.

RELATED: Georgia Voters Will Weigh In on Adult-Use Cannabis Legalization

Question 8 was one of nine advisory inquiries that appeared on the ballot May 24. The question asked, “Should marijuana be legalized, taxed, and regulated in the same manner as alcohol for adults 21 years of age or older, with proceeds going towards education, infrastructure, and health care programs?”

Election results show that 80.46% voted yes, while 19.54% voted no.

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‘Retail Sales Management is Art’: Q&A With Giving Tree Dispensary’s Lilach Mazor Power

Retail sales management is a form of art, according to Lilach Mazor Power, founder and CEO of Giving Tree Dispensary, an Arizona-based, vertically integrated cannabis company.

Retailers cannot rely on one single tool to navigate promotions, increase sales and keep traffic flowing smoothly through their stores. Instead, Mazor Power says dispensaries must keep a variety of tools in their merchandising toolbox to achieve these goals.

Here, she provides some of her top tips to help other cannabis retailers build a well-thought-out merchandising strategy.

Editor’s note: Lilach Mazor Power will speak at Cannabis Conference from 2 p.m. to 3 p.m. on Thursday, Aug. 25 on the “Quick-Fire Tips Session: Make The Most Of Your Merchandising” alongside Airfield Supply Company Chief Marketing Officer Chris Lane. The session will cover dozens of merchandising takeaways from retail and cannabis industry experts. Visit www.CannabisConference.com for more information and to register.

Melissa Schiller: What are some best practices for merchandising to keep traffic moving smoothly through the dispensary?

Lilach Mazor Power: At our dispensary, it’s very much of an open floor concept. We encourage people to walk in and just walk around. We create displays in different areas of the floor that people can actually stand next to or sit next to. We have cocktail tables [where] you can have a one-on-one [conversation] with a budtender, as well. It was all about, let’s create a place where people want to hang [out] and not just a transactional environment. It’s all about walking around the floor, lots of displays, lots of cards with information, [and] areas where they can gather either with their friends or with our salespeople.

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Sanctuary Medicinals Opens Medical Dispensary in West Palm Beach, Florida, the Company's Eighth Location in the State

APOPKA, Fla., May 25, 2022 /PRNewswire/ --PRESS RELEASE-- Sanctuary Medicinals today announced the opening of its eighth medical cannabis dispensary in Florida.

Situated right off Florida's Turnpike on Okeechobee Blvd., Sanctuary West Palm Beach will be holding its Grand Opening celebration on May 27. Joining Jupiter as the second Sanctuary location in Palm Beach County, Sanctuary West Palm Beach is located in the western part of the city near the College Plaza Mall in the lower level of the PC Professor building next to Chick-fil-A. The 3,000-square-foot dispensary is the southernmost Sanctuary location to date in Florida and is easily accessible to patients traveling north-south on the Turnpike or east-west on Okeechobee Blvd.

"As always, it's exciting and energizing to celebrate another grand opening here in Florida," said Jason Sidman, CEO of Sanctuary Medicinals. "West Palm Beach is as far south as we've gone to this point, so we're excited to bring our great products and people further into the Palm Beach region," he added.

With a third location in Fort Pierce to round out its complement of dispensaries in southeast Florida, Sanctuary can now reach patients across much of Saint Lucie, Stuart and Palm Beach counties. In addition to its larger statewide development, the company plans to continue expanding in southeast Florida. Upcoming openings will be taking place in Greenacres, Boca Raton, Delray Beach, Boynton Beach, Hallandale Beach, Miami, Fort Lauderdale and a second West Palm Beach location east of Palm Beach International Airport. Sanctuary also has new product drops in the works aimed at continuing expansion of its edible and concentrate offerings in Florida.

"Given the most recent openings for Sanctuary have been on the Gulf Coast, it's nice to shift gears geographically and add a third location in Southeast Florida," said Bill Dewar, Chief Operating Officer.  "We have several more locations coming to this area before the end of the year, so it'll be exciting to continue learning this region and connect with its patients," Dewar added.

A Grand Opening event will be held Friday, May 27, and Sanctuary West Palm Beach will be keeping its usual hours of operation from 9 a.m. to 8 p.m. Patients can stop in and shop throughout the day, receiving a 40-percent discount on most products throughout Memorial Day weekend and on the holiday itself. The festivities kick off with Cannabis Doctor X, which will have its ambulance in the parking lot from 4 p.m. to 7 p.m. Patients can visit the ambulance for discounted renewals, certifications and to ask questions or chat with the CDX team. Tacos Veracruz will be on site serving up tasty treats from 4:30 p.m. to 7:30 p.m. and DJ Duss will provide entertainment and music inside the dispensary during that same time frame.

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Curaleaf Introduces Endless Coast Cannabis-Infused Seltzers in Massachusetts

WAKEFIELD, Mass., May 26, 2022 /PRNewswire/ -- PRESS RELEASE -- Curaleaf Holdings, Inc., an international provider of consumer products in cannabis, announced the launch of Endless Coast Cannabis-Infused Seltzers, a highly sociable line of low-calorie, low-sugar and low-carb beverages which will be available tomorrow at Curaleaf dispensaries in Massachusetts.

Just in time for the summer beverage season, Endless Coast delivers balanced cannabinoid ratios in four refreshing botanical flavors featuring naturally-derived fruit extracts and essences. Each seltzer utilizes finely-tuned nanotechnology to accelerate the onset of calming effects and match the speed of your typical social beverage. By turning cannabis oil into tiny water-soluble molecules, the THC compounds are more efficiently absorbed into the bloodstream with effects felt in as little as 15-30 minutes. Endless Coast is available in four micro-dosed options to provide consumers with a consistent and controlled experience:

Lemon Ginger: Infused with 2.5mg THC; naturally-derived lemon and ginger extracts.Orange Mango Jalapeño: Infused with 5mg THC; naturally-derived orange mango jalapeño extracts.Lime: Infused with 5mg THC; naturally-derived lime essence.Grapefruit & Botanicals: Infused with 2.5mg THC and 2.5mg CBD; naturally-derived grapefruit and botanical extracts.

"People love their seltzer and we're thrilled to bring Endless Coast, another innovative product featuring nanotechnology and great flavor, to the market, beginning in Massachusetts," said Matt Darin, CEO of Curaleaf. "Endless Coast not only speaks to the rising demand for cannabis-infused beverages, but also reimagines how everyday consumers and in particular the 'canna curious' can incorporate cannabis into their lives."

According to U.S. data from Headset, cannabis beverage market share has increased by more than 20% in the last two years. Endless Coast is uniquely positioned within the high-growth product category in one of the most mature adult-use markets on the East Coast.

Endless Coast will be available at dispensaries across Massachusetts as well as Curaleaf's four locations in Oxford, Ware, Hanover and Provincetown. For more information on product availability, please visit www.endlesscoastseltzer.com.

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California Cannabis Business, Association Leaders Express Opposition to S.B. 1097

Along with high taxes, a lack of retail, competition with California’s illicit cannabis market and a slew of various issues, cannabis businesses in the state have another thing to protest: Senate Bill 1097, the Cannabis Right to Know Act.

According to the legislative language, the bill would require a new warning label on all cannabis products starting in January 2025. The warning label would need to cover “1/3 of the front or principal face of a product … in the largest type possible for the area.” A series of warnings would be provided by the state and rotated among batches of products.

Introduced by Sen. Richard Pan in February, the bill states that cannabis business must rotate the following messages equally between product batches:


The bill is facing opposition from members of the California cannabis industry, including the California Cannabis Industry Association (CCIA). The CCIA issued a call to action May 25, stating its “strong opposition” to the bill.

According to the CCIA’s call to action, “The bill would add duplicative labeling requirements to cannabis products that will do very little to protect public health or undercut the illicit market, but will instead unfairly penalize legal operators who already comply with stringent labeling and childproof packaging requirements.”


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The Green Organic Dutchman Starts Year with Record Quarterly Revenue, Reports First Quarter 2022 Results

TORONTO, May 25, 2022 /CNW/ --PRESS RELEASE-- The Green Organic Dutchman Holdings Ltd. (CSE: TGOD) (OTC: TGODF), a sustainable global cannabis company, reports its financial results for the quarter ended March 31, 2022. These filings are available for review on the company's SEDAR profile at www.sedar.com. All financial information is provided in Canadian dollars except where otherwise indicated.

Management Commentary: 

"We continued our momentum from Q4 2021 with strong Q1 2022 results, including another record month in March. These results can be attributed to the launch of new products and our existing products gaining further traction, affirming the strategic approach we have taken," commented Sean Bovingdon, CEO of TGOD. "In addition to continuing to increase our retail distribution by investing in building relationships with the retail cannabis chains to expand distribution, we are preparing for future growth.  We remain on track to achieve breakeven EBITDA on a monthly basis in Q2 and are pursuing opportunities for additional cultivation for 2023 to meet the strong demand for our products, specifically our premium flower.  We continue to have strong conviction in our potential to achieve significant growth quarter over quarter, as we remain focused on quality and consistency, as well as continued cost discipline and execution to build a strong and sustainable organization and brands that consumers love."

First Quarter 2022 Financial Highlights: 

Three months ended Three months ended
March 31,
2022
March 31,
2021
Variance to
Q1-2021 ($)
Variance to
Q1-2021
(%)
December
31, 2021
Variance
to Q4-
2021 ($)
Variance
to Q4-
2021 (%)
Net Revenue 10,575 5,389 5,186 96% 9,466 1,109 12%
Cost of sales 6,868 5,348 1,520 28% 6,432 436 7%
Gross profit (loss) before changes in fair value
of biological assets
3,707 41 3,666 8941% 3,034 673 22%
Gross profit (loss) % before changes in fair
value of biological assets
35.05% 0.76% 32.05%
Realized fair value adjustment on sale of
inventory
(2,435) (1,530) (905) 59% (2,535) 100 (4%)
Unrealized gain on changes in fair value of
biological assets
4,305 3,321 984 30% 4,368 (63) (1%)
Gross profit (loss) 5,577 1,832 3,745 204% 4,867 710 15%
Gross profit (loss) % 52.74% 34.00% 51.42%

 

The company:

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Ayr Wellness Reports First Quarter 2022 Results

MIAMI, May 26, 2022 (GLOBE NEWSWIRE) -- PRESS RELEASE -- Ayr Wellness Inc., a vertically integrated U.S. multi-state cannabis operator (MSO), is reporting financial results for the three months ended March 31, 2022. Unless otherwise noted, all results are presented in U.S. dollars.  

Jonathan Sandelman, founder, chairman and CEO of Ayr, said, “We have made excellent progress this year to complete major capex projects and receive regulatory approvals across our footprint. We will now unlock the revenue streams from these various assets going forward – including the start of adult use sales in New Jersey and Boston next month. We invested heavily in these assets ahead of the revenue benefits which has temporarily reduced our operating margins, however we expect these investments to put our forward earnings power in a much stronger position and anticipate improvements to both our top and bottom line in the second half of 2022 as these assets come online and begin to ramp.

“It has been well-telegraphed by our peers that Q1 was a challenging period for the industry. However, we have maintained or even increased retail market share across most of our footprint despite this challenging backdrop, while also increasing wholesale revenue.

“The foundation for our business is set, and the investments we have made into our people, our customers, our technology infrastructure, and our retail and cultivation processes are now set to bear fruit. It has been a long journey that has required incredible patience, but as our assets turn on and ramp in Q3 and Q4, we believe we are at the inflection point we’ve been planning for the past 18 months.”

First Quarter Financial Highlights ($ in millions, excl. margin items)

  Q1 2021 Q4 2021 Q1 2022 % Change
Q1/Q1
% Change
Q1/Q4
Revenue $58.4 $111.8 $111.2 90.4% -0.5%
Adjusted Gross Profit1 $34.2 $63.3 $57.9 69.3% -8.5%
Operating Loss $(8.4) $(13.9) $(21.1) NA NA
Adjusted EBITDA1 $18.4 $26.1 $19.5 6.0% -25.3%
Adjusted EBITDA Margin1 31.5% 23.3% 17.5% -1,400bps -580bps

1Adjusted EBITDA, Adjusted Gross Profit and Adjusted EBITDA Margin are non-GAAP measures, and accordingly are not standardized measures and may not be comparable to similar measures used by other companies. See Definition and Reconciliation of Non-GAAP Measures below. For a reconciliation of Operating Loss to Adjusted EBITDA as well as Gross Profit to Adjusted Gross Profit, see reconciliation table appended to this release.

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Ayr Wellness Closes Acquisition of Herbal Remedies Dispensaries, LLC

MIAMI, May 25, 2022 (GLOBE NEWSWIRE) --PRESS RELEASE- Ayr Wellness Inc. (CSE: AYR.A, OTCQX: AYRWF) , a leading vertically integrated U.S. multi-state cannabis operator, today announced it has closed the definitive agreement to acquire Herbal Remedies Dispensaries, LLC, an operator of two licensed retail dispensaries in Quincy, Illinois.

“We are thrilled to finalize the acquisition of Herbal Remedies, strengthening our operational footprint with the addition of Illinois, a strategic and growing adult-use market,” said Jonathan Sandelman, Founder, Chairman and CEO of Ayr. “The team at Herbal Remedies has created a highly valuable position as one of the first licensed cannabis dispensaries within the state, establishing excellent relationship services that we feel will be a natural fit in support of our common mission to provide people with remarkable cannabis experiences. We look forward to strengthening this position as the Illinois market continues to develop within the broader U.S. cannabis landscape.”

Herbal Remedies was among the first cannabis dispensaries licensed in the State of Illinois when the State approved the Compassionate Use of Medical Cannabis Program in 2013. Both medical and recreational use are permitted in Illinois. Herbal Remedies has licenses and sells cannabis for both uses, as will Ayr going forward.

The acquisition was approved by the Illinois Department of Financial and Professional Regulation on May 11, 2022. Terms of the transaction can be found in the Company’s press release announcing the definitive agreement, dated July 20, 2021.


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Tilray Launches CBD Lifestyle Brand, Pollen, on Amazon UK

LONDON, May 26, 2022 (GLOBE NEWSWIRE) -- PRESS RELEASE -- Tilray Brands, Inc., a global cannabis-lifestyle and consumer packaged goods company inspiring and empowering the worldwide community to live their very best life, today announced the launch of POLLEN, a CBD lifestyle brand with a new approach to wellness, on Amazon UK.

Designed to help uncomplicate wellness routines and elevate the CBD experience for consumers, POLLEN offers a unique product mix of tasty CBD gummies and drink drops in three signature lines: ‘Powerbank’ to promote a natural energy boost, ‘No Pressure’ to soften the pressure of everyday stresses and restore your body’s natural bounce, and ‘Soothe You’ for mind and body balance. Each POLLEN product is formulated with CBD and a range of flavorful and vegan-friendly ingredients that simply taste and feel good.

Powerbank - Developed to give you that ‘full tank’ feeling. Powerbank CBD Gummies are a combination of lemon, orange and cacao. Powerbank CBD drink drops include citrus and warm tones of lemon, orange, and coffee to promote a natural energy boost.

No Pressure – Created for those seeking to relax, No Pressure Gummies feature grapefruit, turmeric + cayenne while the No Pressure Drink Drops are packed with a punch of blackcurrant.

Soothe You – All about finding that sense of serenity and balance. Soothe You CBD Gummies include a relaxing blend of chamomile, honey, and cherry. The CBD Drink Drops are a breath of fresh air with tasty hints of grapefruit and raspberry.

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Leafreport Study Unveils Lack of Purity and Potency Testing by CBD Brands

A recent study conducted by CBD product reviewer Leafreport found that brand transparency, quality and safety in the CBD industry are seemingly "stagnating and deteriorating in several critical respects," the company stated in a press release.

The study, which examined 4,384 products from 188 CBD brands, found that only 7% of brands tested all their products for microbes, pesticides and heavy metals. That number represents a 1% increase compared to Leafreport’s 2021 study, which reviewed 2,946 products from 136 brands, according to the company.

The study also found that 20% of brands do not engage in any purity tests to check for microbes, pesticides or heavy metals—a 5% decrease compared to 2021. 

The number of brands that test nearly all of their products for potency and make their third-party lab tests available for consumers remained at 42% from last year, demonstrating that the industry's commitment to potency and purity testing remains stagnant.

Furthermore, Leafreport found that roughly 22 of the 188 brands had all their "products fall within acceptable potency variance levels.”

Other key findings reported by Leafreport include:

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