MjLink Cannabis Business News and Press
MIAMI, Florida, November 12, 2021 — PRESS RELEASE — Ayr Wellness Inc. (Ayr), a vertically integrated cannabis multistate operator (MSO), announced the opening of Ayr Wellness Montgomeryville, the company's seventh affiliated dispensary operating in the commonwealth of Pennsylvania.
"We continue to appreciate the warm reception that we've received from Pennsylvania's patient community, a particularly discerning group with a keen understanding of quality," said Jonathan Sandelman, Ayr founder, chairman and CEO. "We consistently strive to deliver the best quality product at an accessible price. And now, with a seven-store footprint and robust wholesale operation, we look forward to introducing more Pennsylvania patients to the Ayr way."
The Montgomeryville dispensary is located at the "Five Points" junction, a popular shopping area in Montgomeryville, Pa. The 8,400-square-foot store continues the rapid expansion of the Ayr organization's presence in Pennsylvania's burgeoning medical cannabis market.
Montgomeryville is a northern suburb of Philadelphia, located in Montgomery County, the third most populous county in Pennsylvania, with over 850,000 residents according to the 2020 Census.
The new location features a curated selection of high-quality medical cannabis products, including Ayr-owned brands, Origyn Extracts, Seven Hills flower and Revel flower, and products sourced from third-party brands throughout the state. The store has 12 point of sale (POS) stations and 46 parking spaces.
Pennsylvania has a robust and growing medical cannabis market with over 633,000 patients, 132 licensed dispensaries and 29 operational licensed cultivators and processors. Annual industry-wide statewide cannabis sales in Pennsylvania are expected to surpass $1 billion by 2024, according to BDSA.
LAS VEGAS, Nevada, November 10, 2021 - PRESS RELEASE - Terry Booth, CEO of Australis Capital Inc. (AUDACIOUS), an emerging global cannabis company with an expanding suite of multistate operations, is delighted to announce the company's majority-owned subsidiary, ALPS, has entered into a partnership agreement with Priva. Priva is a technology company in the development and sales of hardware, software, and data services in climate control, energy-saving and optimal water reuse. The partnership will focus on the joint marketing of ALPS' advanced compliance and maintenance service solution, APIS, across the global horticulture industry.
Priva is a global supplier in environmental climate solutions for the horticulture sector, offering sustainable solutions that optimize climate control and yield savings in energy and water utilization. Priva operates 16 offices globally, has a presence in over 100 countries and a substantial installed customer base of over 12,000 projects. With this strong foundation, the partnership between ALPS and Priva is well positioned to introduce the new APIS solution to a captive audience.
Compliance and risk reduction are increasingly becoming standard requirements for the horticultural industry. Increasingly, expectations and demands regarding the security of supply, while achieving optimal quality and efficiency, are getting stricter. Both companies believe they are well positioned to enhance solutions and operational protocols in food security, safety and compliance. Technology and innovation, core competencies for both companies, are essential to drive future success in the emerging field of industrial greenhouse management.
The ALPS team of specialists created the APIS system to provide a highly advanced, industrial-level compliance and (predictive) maintenance service solution specifically focusing on greenhouses and other indoor controlled environment agriculture operations. APIS consists of a suite of tools and services designed to help achieve good manufacturing practices (GMP) compliance and significantly improve maintenance effectiveness, efficiencies, yield and predictive modeling. APIS integrates with multiple greenhouse sub-systems and processes to deliver significant overall process improvements, generating significant and sustainable ROI for operators.
"Partnering with Priva will be transformational for our business as it significantly expands our market reach," said Thomas Larssen, ALPS president. "Like us, Priva is an integral part of the horticulture industry, is incredibly well respected, and has a global reach that is difficult to match. Partnering with Priva offers a significant opportunity for AUDACIOUS to accelerate the commercial rollout of its APIS system. This is a strong endorsement of the standing of and hard work by the ALPS team by the global leader in their field. We believe this partnership should contribute to strong revenue growth for ALPS and AUDACIOUS."
"Rather than adapt and use existing systems from varying industries and suppliers with no roots in our sector, we opted to build our APIS solution ourselves from the ground up," Larssen added. "APIS meets the needs of today, while ensuring operations are future proof. This truly is a system of the industry, by the industry and for the industry, and that's why interest is so high."
CHICAGO, Nov. 10, 2021 (GLOBE NEWSWIRE) -- PRESS RELEASE -- Verano Holdings Corp., a multi-state cannabis company, today announced it has entered into multiple agreements to acquire all of the issued and outstanding equity interests of Caring Nature, LLC and Connecticut Pharmaceutical Solutions, Inc., along with the closing of its acquisition of Willow Brook Wellness, LLC.
Caring Nature owns an active dispensary in Waterbury, Conn.; Connecticut Pharmaceutical Solutions owns an operating cultivation and production facility in Rocky Hill, Conn.; and Willow Brook Wellness holds an active dispensary in Meriden, Conn. Collectively, these acquisitions expand Verano’s presence on the East Coast with the addition of vertically integrated operations in the attractive Connecticut market.
RELATED: A Key Piece to the Puzzle: Verano Holdings CEO George Archos Discusses AltMed Merger
“We are excited about the continued expansion of both our national platform and our East Coast hub. Entering the Connecticut market ahead of its adult-use transition provides a clear runway for sustainable, long-term growth,” said George Archos, Verano's founder and chief executive officer. “These acquisitions are well-aligned with our broader growth strategy, and further strengthen our operational bandwidth by bringing management teams on board that have demonstrated multi-disciplinary savvy and a keen understanding of the Connecticut market in both the retail and wholesale channels.”
Transaction Highlights
Willow Brook Wellness, LLC
A Texas judge has barred the state from listing delta-8 THC as a Schedule I drug, meaning that the cannabis compound is legal in Texas again under the temporary injunction.
Last month, the Texas Department of State Health Services (DSHS) added a statement to its website declaring delta-8 illegal under state law.
“Texas Health and Safety Code Chapter 443 (HSC 443), established by House Bill 1325 (86th Legislature), allows Consumable Hemp Products in Texas that do not exceed 0.3% Delta-9 tetrahydrocannabinol (THC),” the website reads. “All other forms of THC, including Delta-8 in any concentration and Delta-9 exceeding 0.3%, are considered Schedule I controlled substances.”
Until last month, businesses have sold products containing delta-8 THC under what they perceived as a grey area of H.B. 1325, which Gov. Greg Abbott signed into law in 2019 to legalize the cultivation of hemp that contains less than 0.3% delta-9 THC. Since the law did not specifically address delta-8, manufacturers ramped up the production of delta-8 products under the assumption that they were legal, until the DSHS clarified its stance that delta-8 is a Schedule I controlled substance.
Austin-based Sky Marketing Corp., which does business as Hometown Hero, filed a lawsuit in Travis County district court shortly after DSHS released its statement on delta-8 THC, seeking to block the department from taking “enforcement action” against the sale of products containing the compound, which the store owner argues are legal under both federal and state law.
Most Americans can’t agree on the pronunciation of “Jif” peanut butter, whether hotdogs are sandwiches and if pro wrestling should be considered a sport, according to American comedian and actress Sarah Silverman.
“Fortunately, there’s at least one thing most Americans have in common,” she said Nov. 9 during an 80-second video to help kick-start the “Cannabis in Common” initiative, a campaign to encourage the American electorate to speak up in favor of advancing federal cannabis legalization in the U.S. Congress.
More than two-thirds of Americans agree that cannabis should be legalized, Silverman said, yet broad reform efforts haven’t picked up steam in the U.S. Senate. According to a 2021 poll from Quinnipiac University, 69% of Americans support legalizing cannabis.
In a separate video also released Tuesday, Canadian actor and comedian Seth Rogen reiterated that the overwhelming majority of Americans support legalization.
“Despite what you may have heard, Americans can actually agree on something,” he said. “And that something is weed.”
The celebrity duo has joined forces to help launch the Cannabis in Common initiative in coordination with reform organization U.S. Cannabis Council (USCC) and HeadCount’s Cannabis Voter Project.
November 4, 2021 – PRESS RELEASE – Canapa has introduced the JuanaOne, the latest addition to its family of pre-roll machines.
The JuanaOne is engineered as a work center where a single person can weigh, fill and compact up to 500 joints per hour in less than 5 square feet of floor space.
Using the same mechanical design as its sister, the JuanaRoll, the JuanaOne includes a bulk canister, a weight cell to ensure accurate weight measurement and a unique compaction system to ensure consistent, compacted joints.
This automated pre-roll solution is perfect for LPs that want to avoid volumetric filling and convert to accurate weighing as well as those that need more productivity, have limited space or require multiple changeovers.
The JuanaOne pre-roll machine is built using 304 stainless steel, making it easy to clean, and its user-friendly HMI and on-screen production statistics allow real-time reporting at the touch of a button.
Shryne Group has tapped Cary Berger as its Chief Legal Officer.
In his new role, Berger will be lead the company's legal functions and advise the board and management on all business, legal, and policy matters, according to Shryne Group. He will report to Shryne Group CEO Jon Avidor.
"Cary is that rare person who understands both the intricacies of cannabis law and more traditional corporate law and governance," Avidor says. "His experience and leadership will be crucial as we continue to expand both in California and in new states."
Berger joins Shryne Group after previously serving as general counsel and chief administrative office for Houseplant, Seth Rogen and Evan Goldberg's cannabis company.
"Throughout my career, I have worked with private and public companies at the brink of massive growth, and that's certainly the opportunity I see for Shryne," Berger says. "I'm excited to help Shryne navigate its next era."
]]>South Dakota is now taking applications for medical cannabis cards as physicians begin certifying patients for the program, according to a KELO report.
Physicians can now access the state’s medical cannabis patient portal to certify patients, according to an update on the program’s website. Patients with a “debilitating medical condition” can qualify for medical cannabis, according to KELO.
Once a patient receives certification from a physician, he or she can access the online application process to obtain a medical cannabis ID card.
South Dakota lawmakers approved the state's medical cannabis regulations last month, and the Department of Health was required to begin issuing medical cannabis ID cards by Nov. 18 under Measure 26, South Dakota’s voter-approved medical cannabis legalization measure.
Meanwhile, the South Dakota Supreme Court is expected to issue a ruling on the constitutionality of Amendment A, the state’s voter-approved adult-use legalization measure that has been challenged in court.
Viola Brands launched in Canada through a partnership with Avicanna Inc., a Canadian biopharmaceutical company headquartered in Toronto.
Avicanna is responsible for managing overall commercialization of all Viola products in Canada through its manufacturing, distribution, and sales infrastructure, according to a company statement. Viola products are currently available on Medical Cannabis by Shoppers, an digital platform and subsidiary of Shoppers Drug Mart Inc.
Michigan-based Viola, founded in 2011 by 16-year NBA veteran Al Harrington, currently has a licensed footprint in five states, in addition to its production expansion to Canada.
"We're excited to launch in Canada with our partner, Avicanna, who shares our vision to increase representation and promote equity within the cannabis industry," said Harrington, co-founder and CEO of Viola, in a press release. "And look forward to having Viola's premium products available at Medical Cannabis by Shoppers."
Viola products currently available through Medical Cannabis by Shoppers include THC and CBD products, including cartridges, concentrates, and disposable vaporizers.
NEW YORK, Nov. 8, 2021 – PRESS RELEASE – Columbia Care Inc., one of the largest and most experienced cultivators, manufacturers and providers of cannabis products in the U.S., announced that it has opened a third dispensary at 11190 West Broad St., in Glen Allen, Va., under the gLeaf brand.
“We are pleased to be able to serve the greater Richmond metropolitan area, especially on the heels of the recent addition of whole flower to our product offerings,” Columbia Care CEO Nicholas Vita said. “This dispensary opening marks the next step in our expansion in Virginia to help support the rapidly expanding medical program and its more than 33,000 patients. We are thankful for the support from the Board of Pharmacy and local officials as we continue to grow and evolve.”
In the coming months, the company will open two more locations in Carytown and Virginia Beach. Columbia Care and gLeaf are actively developing seven additional dispensaries for a total of 12. Columbia Care is also in the process of rebranding its Portsmouth location as Cannabist, bringing an elevated patient experience to the Hampton Roads area. The company operates 147,765 square feet of cultivation and production space across Virginia, including its 82,000-square-foot indoor cultivation facility, the largest in the commonwealth.
The new dispensary includes two drive-thru windows and 12 registers. It will carry gLeaf and Seed & Strain brands, and expects to launch Triple Seven, Classix and other brands, pending regulatory approval. The store is open 9 a.m.-8 p.m. Monday through Saturday and 9 a.m.-7 p.m. on Sunday.
For more information, please visit gleaf.com.
]]>TALLAHASSEE, Fla., Nov. 8, 2021 – PRESS RELEASE – Trulieve Cannabis Corp., the largest multistate operator (MSO) in the U.S., announced the opening of its first dispensary in West Virginia. Trulieve Morgantown, located at 1397 Earl Core Road, will be the first dispensary in the state to sell medical cannabis. Trulieve will host a ribbon cutting and open its doors to patients at the Morgantown dispensary on Friday, Nov. 12. The company also plans to open its second retail location in Weston, located at 137 Staunton Drive, on Monday, Nov. 15.
West Virginia registered, age-verified patients with a valid medical cannabis card can access Trulieve's diverse product line, including TruFlower, TruClear concentrates, TruSpectrum Whole Plant Extract and Botanical TruPOD cartridges, in addition to a selection of Momenta topicals, capsules and tinctures.
Trulieve invites the Morgantown community to join in celebrating the opening of its first West Virginia dispensary. As part of the festivities, patients will receive a 25% in-store discount on opening day and can enjoy free swag giveaways, music, and complimentary food from neighboring Pizza Al's. Those who are not yet registered patients can receive assistance onsite to complete a patient card application on opening day. Trulieve Morgantown will be open from 10 a.m.-6 p.m. Thursday through Saturday, and Trulieve Weston will be open from 10 a.m.-6 p.m. on Monday and Tuesday.
ANNOUNCING: Trulieve Morgantown Ribbon Cutting and Dispensary Opening
WHERE: 1397 Earl Core Rd. Morgantown, WV 26505
WHEN: Friday, Nov. 12, 2021, at 9:45 a.m.
ANNOUNCING: Trulieve Weston Dispensary Opening
WHERE: 137 Staunton Dr. Weston, WV 26452
WHEN: Monday, Nov. 15, 2021, at 10 a.m.
"We're thrilled to be first to market in West Virginia and to continue building the foundation for the West Virginia's emerging medical cannabis market," Trulieve CEO Kim Rivers said. "Our team is especially eager to leverage our first-mover advantage to bolster local economies by creating sustainable jobs and investing in marginalized communities. We look forward to serving West Virginia patients, who have been patiently waiting for this day to arrive, with an unparalleled retail experience and the high-quality medical cannabis products they can rely on for safe and effective relief."
EDMONTON,Alberta, Nov. 8, 2021 – PRESS RELEASE – Aurora Cannabis Inc., a Canadian company focusedon defining the future of cannabinoids worldwide, announced that AuroraNederland B.V., a wholly owned indirect subsidiary of the company, has enteredinto an agreement to invest in a significant equity stakein Netherlands-based Growery B.V., one of the few license holders entitledto participate in the controlled cannabis supply chain (CCSC) experiment. Theagreement is subject to the regulatory notification procedure.
Aurora'sinvestment in Growery is structured such that the company intends to invest animmaterial cash amount of which a portion is due and payable upfront, and theremainder dependent on Growery achieving certainmilestones. Under the terms, Aurora will provide a secured loan toGrowery to construct a facility, fund early operations and provide technicaland operational support through its Netherlands-based, state-of-the-artresearch facility for medical cannabis, established in 2018. Aurora expects tofully consolidate the revenues realized through the investment into Growery underthe applicable International Financial Reporting Standards.
"Ourinvestment in Growery is a significant advancement for our global recreationalcannabis strategy,” Aurora CEO Miguel Martin said. “The Netherlands is expectedto be the largest federally regulated recreational market outside of Canada andis a proof point that our medical market success in Europe is portable torecreational markets. Aurora's global leadership is underscored by a proventrack record of regulatory compliance, testing and commitment to science. Withsimilar values and commitment to excellence, we are pleased to be working withGrowery to enter the Dutch market."
TheCCSC is scheduled to be in effect for a minimum of four years, during which theDutch government will evaluate if the rules of the CCSC should be expandednationally. Anticipated demand during the CCSC is approximately 30,000kilograms of dried flower annually. Should the CCSC be expanded nationally(from approximately 80 coffee shops in 10 selected municipalities to the nearly600 coffee shops that exist today), it is estimated that the Netherlands wouldrequire approximately 200,000 kilograms of dried flower annually to fulfilldemand.
]]>You and your team are plotting a business strategy that will get you into the fast-growing solventless segment. This is distinct from solvent-based processing, and the lab build-out needs are different. In terms of pure equipment purchasing, where should you begin?
Developing a complete equipment list is one of the most important steps along the way. While you’re working out your facility design with architecture experts and contractors, you’ll need to be cognizant of what, exactly, you’re going to be using in the building. The equipment list is your guide. And to understand the list, you need to understand the basic elements of solventless processing. Vendor partners can help.
“Having the ability to work with quality equipment and more importantly, quality business partners, is crucial to anyone’s success in this rapidly evolving cannabis market,” says Jillian Krall, director of hash production at Papa’s Select.
1a. Ice water hash vessel
The first step in the solventless process is to wash your fresh-frozen cannabis plant material with RO water in an appointed vessel. You will want a food-grade surface in your hash vessel; this is an example of best practices that will keep your lab ahead of the curve and ready for future regulations. While many legacy labs might still be using trash cans or other receptacles for their washing process, it’s important to prepare for future regulations and to make the switch to stainless steel, food-grade vessels for this task.
Based on your output goals, hash vessels vary by size. Boutique labs may err on the side of hand-washing. Larger labs with goals at a greater scale may look to automated solutions.
As numerous states have banned delta-8 THC, industry members have debated whether the psychoactive, intoxicating cannabinoid delta-8 THC is a federally controlled substance when derived from hemp.
In a Nov. 2 blog post, cannabis and hemp attorney Rod Kight of Kight Law, who has been closely following and commenting on delta-8, highlighted that the U.S. Drug Enforcement Administration (DEA) has clarified in 2021 that hemp-derived delta-8 is not a federally controlled substance.
Kight points out in the blog post that in a June virtual town hall meeting, the Florida Department of Agriculture and Consumer Services’ (FDACS) cannabis director, Holly Bell, asked the DEA’s chief of intergovernmental affairs, Sean Mitchell, if delta-8 is federally legal.
Mitchell responded: “Sure, and I also want to expand beyond delta-8. There’s delta-8, there’s delta-10, there’s all kind of different cannabinoids associated with Cannabis sativa L. that are kind of out there and making the rounds. So, what I want to say—and I’ll be very deliberate and clear—at this time, I repeat again, at this time—per the [2018] Farm Bill, the only thing that is a controlled substance is delta-9 THC greater than 0.3% based on a dry-weight basis.”
Another communication from the DEA that Kight cited in the blog post is a September letter written by Dr. Terrence L. Boos, Ph.D., chief of the DEA’s Drug & Chemical Evaluation Section in its Diversion Control Division. In that letter, addressed to Donna C. Yeatman, R.Ph., executive director of Alabama’s Board of Pharmacy, Boos states that delta-8 THC can be naturally occurring in the cannabis plant or “synthetically produced from non-cannabis materials.” Boos also explains that the Controlled Substances Act (CSA) doesn’t control tetrahydrocannabinols in hemp.
Boos writes: “Accordingly, cannabinoids extracted from the cannabis plant that have a D9-THC concentration of not more than 0.3 percent on a dry weight basis meet the definition of ‘hemp’ and thus are not controlled under the CSA.”
At face value, solventless processing is a simple concept. You and your team are using heat and pressure in a lab setting to develop a spectrum of concentrated end products for the cannabis consumer.
And while there are many ways to go about that task, there are several commonalities among all successful solventless producers—and several things you’ll want to make sure you avoid along the way.
Efficiency is key, says Mallory Tjaden, Marketing Coordinator for PurePressure, and she’s seen how brands of all sizes can save time and money while turning out top-tier products for dispensaries. It’s a delicate and studied process, but the solventless technique provides the full expression of the cannabis plant to consumers, and you’ll want to bear that in mind as you and your team are going about the day-to-day work.
DO: Develop a five-year plan with phased rollouts
Earning a processing license can be a major challenge in most cannabis markets, so it’s natural that an upstart business team will want to focus all energy on that task. But the brand’s long-term needs are important, right from the jump. With solventless products currently ranking as the fastest-growing concentrates segment in the U.S., your team will want to keep a close eye on short-, mid- and long-term time horizons--and plan accordingly.
“You want to know where you want to be eventually,” Tjaden says. “You want to start a lab based on where you think you’ll be--not where you currently are.”
Massachusetts is one of four states where voters passed adult-use cannabis legalization measures five years ago today, providing the most populated market in New England a head start on its neighbors.
While it took Massachusetts two years before launching adult-use sales in November 2018, it was the first state east of Colorado to serve adult-use consumers.
Also passing adult-use ballot measures in the 2016 election, Nevada voters approved Question 2 with a 54.5% majority, California voters passed Proposition 64 with a 57.1% majority, and Maine voters squeezed through Question 1 with a 50.3% majority
Launching adult-use sales July 1, 2017, Nevada was the quickest among the four states to roll out a retail program. In its fourth fiscal year (from July 2020 through June 2021), Nevada became a billion-dollar market, averaging $83.6 million in sales each month, according to data from the Nevada Department of Taxation.
Representing the largest cannabis market in the world, California launched adult-use sales Jan. 1, 2018. The retail behemoth averaged $430 million in monthly sales through the first half of 2021, according to data from the California Department of Tax and Fee Administration.
Maine took the longest, launching adult-use sales on Oct. 9, 2020. Still finding its footing, Maine has averaged $6.4 million per month in sales this calendar year, according to data from the state’s Office of Marijuana Policy.
The Washington, D.C., City Council removed proposed penalties on “gift” businesses and extended medical eligibility, but the last-minute change highlights the uncertainty and debate clouding District cannabis.
Last week, the council voted to expand its medical cannabis program by extending the eligibility of patients whose cards expired after March 2020. Patients with cards expiring after this date can now purchase medical cannabis through January 2022.
The move comes in response to a significant slowdown in medical cannabis sales during the pandemic. Council Chairman Phil Mendelson, who proposed the bill, says that more than half of all medical cannabis patient registrations have expired since spring 2020, in part due to a slowdown in government operations because of COVID-19. The new bill also doubled the amount of cannabis District patients are allowed to purchase each month up to eight ounces.
Included in Mendelson’s original proposal was a section penalizing “gift” businesses that skirt the law by selling legitimate items and providing cannabis for free. Dozens of such outfits have sprung up since cannabis was legalized in the District in 2015—many lease retail storefronts and pay taxes like any normal business. The original bill would have allowed these operators to face criminal charges and fines of up to $30,000.
After significant backlash, the suggested penalties were removed the day before vote. But the original proposal represents yet another example of the uneasy peace in the District’s cannabis industry, an undesirable situation created by a combination of Congressional interference and an inadequate medical program.
The District’s Gift Industry
The big event of the week was Election Day, although cannabis was far from the main story. We’ve got our roundup of reform narratives (see below), and the new Republican governor in Virginia will give us a transfer of power worth watching, but overall this is a season of transition for those of us in the industry. Last year brought big wins (and so did early 2021!), and next year promises more of the same.
In between now and then, though: winter.
We’re featuring a short piece from columnist Kenneth “K” Morrow this week, one that will give outdoor growers a few things to think about as early frosts come across the weather forecast. Here’s a tip: “Outdoor growers in areas prone to extreme winter conditions may want to proactively design and construct frames that allow them to easily cover plants in the event of unseasonably cold weather and/or extreme weather conditions.” There’s almost no doubt that those conditions are on their way.
It’s the first full week of November. What are you doing to prepare your business for the winter? Drop me a line and share your own tips!
We’ve rounded up some of the key cannabis headlines from the week right here.
Election Day 2021 brought its share of cannabis storylines, although it was a fairly quiet year between the watershed of 2020 and the anticipated wave of legalization coming in 2022. Read more In South Dakota, adult-use cannabis legalization advocates are racing to meet a Nov. 8 signature-gathering deadline as the state’s Supreme Court draws out its decision on the adult-use legalization measure that voters already approved one year ago. It’s a tangled web of uncertainties. Associate Editor Tony Lange has the story. Read more JPMorgan Chase & Co. has issued a letter to its prime brokerage clients informing them that they can no longer purchase certain U.S. cannabis-related securities. Read more Montana’s adult-use cannabis law prohibits licensees from growing and selling hemp, which means licensed cannabis businesses are also prohibited from producing and selling CBD products. Read more Louisiana will regulate delta-8 THC in food products as the state health department has started reviewing manufacturers’ and distributors’ plans, registering products, and issuing permits. Read moreAnd elsewhere on the web, here are the stories we’ve been reading this week:
The Guardian: “Five years after cannabis legalization, California is awash with signs of an apparently booming industry. But behind the flashy facade, the legal weed industry remains far from the law-abiding, prosperous sector many had hoped for. In fact, it’s a mess.” Read more Rapid City Journal: Rapid City, S.D., gets its first medical dispensary as the state awaits a ruling on the expected adult-use market. Read more KWTV: “The Oklahoma Bureau of Narcotics says Oklahoma is now the number one black market supplier of illegal marijuana in the country.” Read more The Vermont Journal: Ludlow, Vt., shoots down cannabis retail. Read more KTVQ: Same goes for Billings, Mont., where voters rejected an adult-use retail opt-in provision on the ballot this week. Read more ]]>A second group has filed an adult-use cannabis ballot initiative in Arkansas, according to a KATV report.
Arkansans for Cannabis Reform filed an amendment Nov. 4 to put adult-use legalization on the state’s 2022 ballot, the news outlet reported.
The proposal would allow adults 21 and older to possess and consume cannabis, as well as cultivate up to six cannabis seedlings and six mature plants at home, according to KATV.
The measure also includes criminal justice provisions that would allow those convicted of low-level cannabis-related offenses to petition the courts for release from incarceration and expungement of their records, KATV reported.
The proposal would allow the Arkansas Legislature to levy a tax on adult-use cannabis sales, according to the news outlet, and the measure allocates the tax revenue to support specific programs in the state. Fifty percent of the revenue would fund public pre-K and after-school programs, 40% would support operations at the University of Arkansas for Medical Sciences (UAMS) cancer institute and research center, and 10% would go to the state’s general fund.
Vessel, a leader in the luxury cannabis consumer technology market, will diversify Flora’s premium brand portfolio.Pending acquisition represents opportunity to fast-forward Flora’s penetration into U.S. and Canadian cannabis markets by acquiring a rapidly expanding, industry-leading company with strong revenue growth.Vessel leadership to integrate with Flora’s core management team and leverage its extensive brand building, marketing and sales experience to amplify and accelerate growth across Flora’s global portfolio.
MIAMI and TORONTO, Nov. 3, 2021 – PRESS RELEASE – Flora Growth Corp., a leading all-outdoor cultivator and manufacturer of global cannabis products and brands, announced it has entered into a definitive agreement in respect of the previously announced acquisition of 100% of Vessel Brand Inc. As set forth below, upon the closing of the transaction, Flora will acquire Vessel for aggregate consideration of U.S. $30 million, consisting of a combination of cash and the issuance of Flora common shares.
“The Flora team has been working diligently to execute on our various business initiatives and the signing of this agreement represents another significant step forward for the company in 2021,” Flora Growth President and CEO Luis Merchan said. “We are incredibly excited to have reached an agreement to add Vessel to the Flora portfolio. Not only does Vessel have an exceptional product line with strong revenue growth, but its leadership team is second to none. Integration plans with the Vessel team are already well advanced and we expect step-change improvements to the marketing and sales strategies for our core consumer brands like Stardog and Mind Naturals, as well as new brand development in support of our global growth initiatives.”
Vessel will bring a proven go-to-market strategy for direct-to-consumer sales for U.S. and international cannabis markets. Vessel has also established relationships with U.S. multistate operators and Canadian LP’s who seek access to Vessel’s premium technology offering through its white labeling business. Headquartered in Carlsbad, Calif., Vessel will serve as a key component of Flora’s North American cannabis strategy across its entire product portfolio.
Vessel launched in 2018 with a singular focus—create a more thoughtful consumer experience at all touchpoints. With significant revenue growth year-over-year, Vessel finds continued success by bringing to market innovative products and experiences that elevate consumer expectations. It has a unique lineup of high-end, dry-herb accessories and vape pen batteries, bespoke product programs for brands, and decades of go-to-market experience. These high-margin products, along with its development pipeline, are expected to drive incremental revenue and market share growth in new and existing categories.
The acquisition of Vessel is also expected to strengthen Flora’s executive leadership team with the addition of the Vessel team’s experienced cannabis, sales, marketing, design and production professionals, including founder and CEO James Choe, Chief Financial Officer Garrett Potter, VP of Marketing Jessie Casner and VP of Performance Jason Choe.
