MjLink Cannabis Business News and Press
In a Nov. 3 meeting, the New York Cannabis Control Board (CCB) approved new rules for the state's hemp program, allowing for the sale of hemp flower but prohibiting the sale of delta-8 THC products in the state.
During the meeting, the CCB addressed several issues regarding the advertising, processing, manufacturing, testing and packaging of hemp and hemp-derived products in New York.
The state Department of Health (DOH) initially issued the regulations for public comment before they were formally filed by the Office of Cannabis Management (OCM), which was given oversight of the state's hemp program under the enactment of the Marijuana Regulation & Taxation Act (MRTA) earlier this year, Morning AgClips reported.
Changes in Place
The regulations allow for hemp flower products to be sold as long as they are not "marketed or advertised for the purpose of smoking or [are] in the form of a pre-roll, cigar or joint," the news outlet reported.
The new rules also prohibit the sale of delta-8 THC products because they contain "intoxicating qualities." According to the news outlet, the OCM believes these products should be regulated under the state's future adult-use program.
Matthew Schweich has started every Thursday morning for the past six months by logging onto the South Dakota Supreme Court’s opinion page and hitting the refresh button.
Twenty-seven straight weeks, the campaign director for South Dakotans for Better Marijuana Laws (SDBML), a statewide ballot question committee based out of Sioux Falls, has been met by disappointment, as time and time again he finds that the five-justice court remains a no-decision on the constitutionality of Amendment A—the 2020 voter-approved adult-use cannabis ballot measure.
In addition to being the SDBML campaign director, Schweich also serves as the deputy director of reform organization Marijuana Policy Project (MPP).
“Eight o’clock sharp every Thursday morning,” Schweich said about when the South Dakota Supreme Court updates its issued opinions online each week. “I’d hate to count up all those Thursdays that there’s been no ruling on the Amendment A case.”
Last November, 54.2% of South Dakota voters cast ballots in favor of Amendment A, to legalize adult-use cannabis, but Republican Gov. Kristi Noem launched a taxpayer-funded lawsuit challenging the ballot measure, claiming it violated the state’s one-subject rule.
Without the Supreme Court’s decision, Amendment A currently sits unconstitutional, which Circuit Judge Christina Klinger ruled in February. Noem, who opposed legalization leading up to the 2020 election, nominated Klinger to the state’s Sixth Circuit Court in early 2019.
If you are a cannabis business owner who believes it is only a matter of time before cannabis becomes federally legal, you also probably believe that competition from big pharma, big tobacco, or big alcohol will be your biggest worry when that day arrives. Or, you may think that the moment legalization happens, you have to sprint across state lines to grow quickly to defend your market share. Without minimizing any of these concerns, which I share, a much bigger risk, because it is not being discussed, is poised to jump you when you are not looking—this risk: being sued.
As the climate changes and becomes more volatile, growers must learn to expect the unexpected, such as some geographic locations having fierce hailstorms or unseasonably early snowstorms.
Last growing season, I saw social media posts in which outdoor farmers dealt with both situations: plants beaten down and destroyed by hailstorms, as well as snow-covered plants a few days before harvest. In Canada, I saw a video of a grower harvesting outdoor plants in an October sleet storm that was earlier than any previous storm on record.
With that in mind, 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.
While this is not a solution for cannabis farmers, Napa Valley vineyards have 20-foot wind machines/air movers in them; these are essentially 20-foot-tall round poles with two propellers attached to motors on top. Among the grape vines are smudge pots (also known as orchard heaters), oil-burning devices used to prevent fruit trees from freezing. These smudge pots can be filled with diesel fuel and set ablaze to keep crops warm. The smudge pots create heat, and the propellers move the warm air throughout the vineyard. While tempting to try, the smoke from the burning fuel could contaminate cannabis crops.
Temperatures are not likely to get so low for so long before a cannabis harvest that it would require the use of heaters, but weather patterns can be problematic. Cannabis growers can use quick-rising hoop houses to protect their crops from snow and/or ice storms. Covering crops is a time-tested solution used in other large-scale produce industries, including blueberry farms.
Read more: 5 Common Outdoor Cannabis Cultivation Problems (and 14 Tips For How to Solve Them)
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, according to a Reuters report.
The restrictions pertain to businesses with U.S. operations that are not listed on the Nasdaq, the New York Stock Exchange or the Toronto Stock Exchange, and have a “direct nexus to marijuana-related activities,” according to the news outlet.
Effective Nov. 8, the bank will not allow new purchases or short positions in the related businesses, Reuters reported, although clients with existing positions can liquidate them.
“J.P. Morgan (JPMS) has introduced a framework that is designed to comply with U.S. money laundering laws and regulations by restricting certain activities in the securities of U.S. Marijuana Related Businesses," the bank wrote to clients, as reported by Reuters.
Other banks have taken similar action, according to the news outlet, after a high-profile collapse of private fund Archegos Capital earlier this year prompted financial institutions to evaluate how much risk they are willing to take on in their prime brokerage businesses.
In early 2021, U.S. Customs and Border Protection (CBP) agents seized cannabis extraction equipment from Root Sciences LLC at a Los Angeles port.
Root Sciences repeatedly—and unsuccessfully—attempted to contact CBP, as reported by Law Street, and eventually assumed that CBP improperly excluded the import of the equipment. Root Sciences submitted a protest, which also received no response from CBP.
The company then filed a lawsuit in March after it assumed its protest of the merchandise exclusion was denied, according to Law Street.
Root Sciences argues in its lawsuit that cannabis and cannabis processing equipment is legal under California law, meaning that the seized merchandise is exempt from Section 863 of Title 21 of the United States Code, which prohibits the import of drug paraphernalia, Law Street reported.
The case was ultimately dismissed last month by the U.S. Court of International Trade, where the presiding judge said the federal body did not have the jurisdiction to hear the case.
There were no statewide votes to legalize medicinal or adult-use cannabis in the 2021 general election, but that’s not to say balloters didn’t have a say in cannabis-related measures Tuesday night.
In Philadelphia, 73% of voters supported Question 1 to call on the Pennsylvania General Assembly and their governor to legalized adult-use cannabis for those 21 and older.
In Ohio, six of 14 municipalities approved local decriminalization measures to lower the penalty for misdemeanor cannabis offenses to the lowest penalty allowed by state law.
In Virginia, Republican Glenn Youngkin defeated Democrat Terry McAuliffe, 50.7% to 48.6%, to take control of the governor’s seat ahead of the state’s 2022 reenactment by the General Assembly to finalize legal adult-use cannabis sales provisions passed by the 2021 Legislature.
In New Jersey, as of Wednesday morning, Republican challenger Jack Ciattarelli was leading by the slimmest of margins to unseat Democratic incumbent Gov. Phil Murphy in a too-close-to-call race ahead of the state’s implementation of its voter-approved, adult-use legalization measure.
And, in Colorado, voters said “no” to Proposition 119, which aimed to increase the cannabis sales tax by 5% to provide additional revenue to charter schools.
Adds four Denver-metro retail locations and a 35,000-square-foot indoor cultivation facilityImmediately accretive to Columbia Care’s adjusted EBITDA and cash flow from operationsSolidifies Columbia Care’s position as the leading retailer, cultivator and manufacturer in Colorado
NEW YORK, Nov. 1, 2021 – PRESS RELEASE – Columbia Care Inc., one of the largest and most experienced cultivators, manufacturers and distributors of cannabis products in the United States, announced it has completed its acquisition of Medicine Man, a premier, vertically integrated Colorado-based cannabis company that has been serving the Denver metro area since 2009.
The total upfront consideration was $42 million, comprised of $8.4 million in cash and $33.6 million in stock, with the potential for an additional milestone payment based on 2021 performance. The transaction is immediately accretive to adjusted EBITDA and cash flow from operations. The upfront consideration of $42 million represents a multiple of approximately 4.5 times projected 2021 EBITDA.
“As the second largest cannabis market in the world, Colorado has become a global bellwether for adult-use programs and continues to show strong organic growth. The acquisition of Medicine Man enhances our position as the leader in the state by combining with a recognized operator that has been a consistent outperformer in the Colorado market since its founding,” Columbia Care CEO Nicholas Vita said. “We are grateful to the cities of Aurora, Denver and Thornton, and the state of Colorado, for their support, as well as to the Medicine Man team that has been terrific to work with throughout this process. Our vision and values are aligned, and we look forward to expanding our Columbia Care family with the addition of those who made Medicine Man such a successful company.”
This acquisition adds one cultivation facility and four dispensaries to Columbia Care’s Colorado operations, including the Medicine Man Longmont location, which is anticipated to close in Q1 2022. Columbia Care’s footprint in Colorado will now total 26 dispensaries and six cultivation and manufacturing facilities, including those under The Green Solution brand.
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, according to the Montana Free Press.
House Bill 701, which implements the state’s voter-approved adult-use cannabis program, also bars licensees from selling other brands’ CBD products, meaning that consumers will likely purchase CBD from gas stations and other non-specialty retailers, the Montana Free Press reported.
RELATED: Montana House Advances Three Republican Bills to Implement Adult-Use Cannabis
The Montana Department of Revenue and some cannabis industry stakeholders were caught off guard by the rule, according to the news outlet.
“Frankly, I feel like we stumbled upon it,” Kristan Barbour, administrator of the Department of Revenue’s Cannabis Control Division, told the Montana Free Press. “It wasn’t on our radar at all.”
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, according to a Law360 report.
RELATED: Texas Officials Declare Delta-8 THC Illegal
Manufacturers and distributors seeking permits must submit floor plans of their facilities, plans for processing and recalls, and proofs of the labels that they plan to use on their products, according to Law360. They will also have to undergo an initial “preoperational” inspection in order to receive the permits.
Permit fees are based on the businesses’ annual sales and can cost up to $1,375, Law360 reported.
It will take the Louisiana Department of Health 10 days to issue a permit to allow a facility to manufacture and distribute consumable hemp, according to Law360.
LOS ANGELES, Nov. 2, 2021 – PRESS RELEASE – Hervé, maker of luxury French–inspired and cannabis-infused desserts, announced the launch of its signature macarons in California, the world's largest cannabis market. The announcement marks Hervé's first expansion outside of Nevada. Since launching in Nevada in February 2020, Hervé has created a novel category of edibles for the discerning cannabis consumer. Hervé's macarons have outsold all premium edibles in the market and, due to the quality, have commanded retail prices on average two to three times higher than competing products.
California launch flavors include raspberry, chocolate, salted caramel and celebration birthday cake. The macarons will be sold in a box containing three macarons with each macaron containing 10 milligrams of premium THC cannabis distillate, with a total of 30 mg per box. MSRP will be $20 per box plus applicable taxes. Consumers can purchase all four flavors of macarons at select retailers, including Atrium and Medicine Woman in LA, California Street Cannabis in San Francisco, One Plant in Goleta and Antioch and Planet 13 in Santa Ana, with more than 60 additional California dispensaries coming online in the coming months.
Hervé macarons will also be available for delivery direct to home throughout California at shop.herve.fr beginning Oct. 21.
"We couldn't be more excited to launch in California and are thrilled with consumer demand even ahead of our official product launch," said Cheyne Nadeau, vice president of marketing for Hervé. "We always felt that California represented exactly the type of knowledgeable consumer that would appreciate the care and quality that go into our Hervé products, and we are thrilled with all the excitement around our launch.”
Edibles have been increasing in popularity in California, with sales growing over 5% in Q1 of 2021 (from Q4 of 2020) and growing over 20% in Q1 of 2021 year over year. California also has the second largest edibles market share after Michigan.
Ball Family Farms, one of the first social equity cannabis licensees in Los Angeles, relied heavily on social media, particularly Instagram, to launch its business and promote new products before its page was shut down two months ago, wiping away the 120,000 followers the company had worked so hard to build.
Their story—and their frustration—is familiar in the cannabis industry, where businesses have long fought “shadow bans” on Facebook (when the platform omits cannabis-related pages and hashtags from users’ search results) and posts that are flagged and taken down for less-than-clear reasons.
RELATED: Facebook Users Can Search for Cannabis Pages Again, But Confusion and Obstacles Abound
While it can be difficult for cannabis businesses to navigate social media, Ball says it is well worth the effort.
Mississippi Gov. Tate Reeves wants lawmakers to include limits on how much cannabis a patient can purchase in their medical cannabis legalization proposal before he will call a special session on the legislation.
"The key piece is how much marijuana any one individual can get," Reeves told WAPT. "Really, the one key piece that is left [is] with respect to how much marijuana can any one individual get at any one point in time and what is the THC content of that marijuana?"
Mississippi lawmakers have been working on a medical cannabis legalization proposal to restore the will of their constituents after the Mississippi Supreme Court overturned a voter-approved legalization measure in May.
Lawmakers reached a deal on medical cannabis legislation in September before revising some aspects of the proposal last month to allow larger cultivation facilities and restructure the excise tax on medical cannabis products, among other changes.
The latest version of the bill allows patients to purchase a maximum of 4 ounces of medical cannabis per month, WAPT reported. That’s an ounce less than the maximum amount that was outlined in the voter-approved ballot initiative, according to the news outlet.
London, Nov. 1, 2021 – PRESS RELEASE – Curaleaf International (formerly EMMAC Life Sciences Group), part of Curaleaf Holdings, Europe’s largest vertically integrated cannabis company, is pleased to announce its official rebrand to the European market. It has been three years to the day since the U.K. government’s landmark decision to legalize cannabis-based products for medicinal use, paving the way for further significant developments to the cannabis sector. In this time, Curaleaf International has experienced exponential growth in cannabis revenues, as the demand for premium medicinal cannabis continues to grow.
Curaleaf International’s cannabis flower products and extracted cannabis-based products now supply five separate markets, including Germany, Europe’s largest market for medicinal cannabis, which is expected to be worth over €840 million by 2025. In the U.K., specifically over the last 12 months, the number of patients using the company’s products have increased fivefold.
Building on the momentum within the European medicinal cannabis market, Curaleaf International expects to see significant regulatory change across Europe for adult-use cannabis over the coming years with expectations that the total European cannabis market will be worth €3.2 billion by 2025. Curaleaf International expects the trends to follow that of Canada and the U.S., which both started with the legalization of medicinal cannabis before moving to legalize cannabis for adult use. With a population of approximately 740 million people, Europe presents a greater market size than that of North America.
The potential commercial impact of cannabis legalization in Europe is significant. One in 10 Europeans use cannabis every year, while a quarter of people admit to having used cannabis at least once in their lifetime. The annual sales in illicit market cannabis are estimated at around €11 billion. As highlighted in The European Cannabis Report: 6th Edition, it is projected that sales of adult-use cannabis will reach €200 million by 2023, coming close to €800 million in 2025. Taking into account growth in the adult-use sector due to decreasing stigma and ease of access, Prohibition Partners increased its total market estimate from €800 million to €3.2 billion by 2025.
The Curaleaf International expects that over the next three to four years significant regulatory changes will occur across the continent. Recent progress has notably occurred in Switzerland, the Netherlands, Italy and Germany. Since May 2021, Switzerland allows the sale of adult-use cannabis under a trial basis. In Zurich, the country’s largest city, consumers will be allowed to buy cannabis products from pharmacies and social clubs. In the Netherlands, 10 licenses have been issued for an adult-use cannabis pilot project to supply 79 “coffee shops” in 10 municipalities. In Germany, the likely new coalition government under the SPD, Greens and FDP parties are all in favor of legalizing adult-use cannabis.
Additionally, Italy could be the first European nation to make adult-use cannabis legal. The country is due to have a referendum proposing the legalization of adult-use cannabis in 2022, with an expected result of 57% voting in favor of legalizing. The potential market presents a lucrative opportunity for first movers such as Curaleaf International.
EDMONTON, Alberta, Oct. 28, 2021 – PRESS RELEASE – Aurora Cannabis Inc., a Canadian company focused on defining the future of cannabinoids worldwide, announced a manufacturing agreement with The Valens Company Inc., a leading manufacturer of cannabis products, to manufacture a new seasonal offering in the mint category.
Launching under Drift Turbo, Aurora's mainstream adult-use brand, the new Canna Cane Mints are a two-piece hard peppermint candy containing 10 milligrams of THC (5mg THC per piece). This is the first product offering under the manufacturing arrangement, which is expected to expand in the coming months.
"We know that Canadian cannabis consumers are looking for novelty and variety, and seasonal offerings are a key approach to strategically expanding our portfolio of adult-use products," Aurora Cannabis CEO Miguel Martin said. "Valens' exceptional manufacturing capabilities complement our product lineup this upcoming holiday season. Our strategic relationship is designed to unlock efficiencies as we seek to bring innovation to market with speed and differentiation that connects with consumers."
The cannabis edibles will be manufactured using SōRSE by Valens emulsion technology, a patented, in-house emulsion technology that transforms cannabis oils into water-soluble forms to infuse foods, liquids and topicals without the taste or smell of cannabis.
Tyler Robson, CEO, co-founder and chair of The Valens Company, said, "This is an important milestone for the Canadian cannabis market as two of the largest companies in this sector come together. We have admired Aurora for their leadership and continuing to elevate and challenge industry standards. Our companies share the same ethos when it comes to bringing the highest quality products to market and offering a premium experience to consumers."
Aurora's upcoming holiday portfolio will also include a new 510 Vape cartridge launching under the company's adult-use brand, Daily Special. The new Cranberry Sauce 1-gram 510 Vape is a high-THC distillate vape and is infused with the classic sweet-tart flavor of festive cranberries.
Pennsylvania State Rep. Melissa Shusterman introduced legislation to expand the number of medical cannabis growers in the state, according to an Oct. 29 press release from the Democratic lawmaker.
The measure would prioritize smaller enterprises and farmers, allowing them a chance to compete in the medical cannabis market and to acquire a growing license, the release states.
The legislation is an effort to "lessen the burden on consumers" and help alleviate supply-chain issues, which Shusterman believes is caused by the state's strict laws of how many growers can be in one zone.
"The monopoly of several big corporations over this industry has created a supply shortage, which drives up prices and hurts consumers who need their prescribed medication," the release states.
Shusterman said in the release that Pennsylvania medical cannabis patients should not have trouble accessing medication and that the current restrictions only hurt farmers, businesses and patients.
"The studies have shown again and again the benefits of medical marijuana for certain medical conditions," she said. "It's not fair that only big corporations control the market, hurting consumers and small businesses."
In week nine of "Operation Hammer Strike" from Oct. 25-31, the San Bernardino County Sheriff's Department (SBSD) Marijuana Enforcement Team (MET) issued 32 search warrants for various locations throughout nine cities in its California jurisdiction.
The cities include Lucerne Valley, Landers, Adelanto, Hesperia, Helendale, Newberry Springs, Pinon Hills, Phelan and San Gabriel.
In week nine of the investigation, law enforcement personnel eradicated over 18,000 illicit cannabis plants, roughly 3,500 pounds of processed cannabis, 13 guns and more than $114,000 in illegal narcotics proceeds, according to a press release from SBSD headquarters.
Officials also located 104 greenhouses, four indoor cultivation facilities, one electrical bypass and two THC extraction labs. Twenty-three suspects were cited or arrested on "charges of Cultivation of Cannabis, over six plants, Possession for Sales of Marijuana, Utility Theft, Manufacturing a Controlled Substance and Felon in Possession of a Firearm," the release states.
Read more Cannabis Business Times Operation Hammer Strike coverage here:
Five new medical cannabis dispensaries are fixing to open their doors next year in Rhode Island after winning licenses during a luck-of-the draw lottery by the state’s Department of Business Regulation (DBR) on Oct. 29.
The lottery—which featured a blindfolded former FBI agent picking numbered balls out of a casino tumbler—came after former Democratic Gov. Gina Raimondo signed a 2019 state budget that allowed for the state’s medical cannabis retail footprint to expand from three to nine dispensaries.
A sixth dispensary selection was supposed to be included in the expansion lottery, but the winner from Zone 6 will be determined at a later date because a rejected applicant from that geographic boundary brought forth an administrative appeal. Zone 6 includes Barrington, Bristol, East Providence, Jamestown, Little Compton, Middletown, Newport, New Shoreham, Pawtucket, Portsmouth, Tiverton and Warren.
Rather than delay the entire process, the DBR’s Office of Cannabis Regulation moved forward with selecting winners from the other five zones:
Those winners were selected from 23 pre-approved companies that submitted 37 applications. They will operate in cities and towns that do not currently have a dispensary.
Rhode Island’s three already established medical dispensaries include Thomas C. Slater Compassion Center in Providence, Greenleaf Compassionate Care Center in Portsmouth and Summit Medical Compassion Center in Warwick.
MIAMI, Florida, October 26, 2021 - PRESS RELEASE - Ayr Wellness Inc., a vertically integrated cannabis multi-state operator, announced the launch of Kynd premium flower in Arizona.
“We’re excited to introduce Kynd premium flower to Arizona consumers," said Jon Sandelman, Ayr Wellness founder, chairman and CEO. "With strong genetic backing and an artful growing process, the brand has been incredibly successful in its original state of Nevada. We look forward to expanding Kynd as one of our core national brands alongside Origyn Extracts and Levia1 THC-infused seltzer."
Kynd’s initial launch in Arizona will be exclusive to Ayr’s Oasis Cannabis stores. The premium cannabis brand is comprised of carefully curated genetics that produces flower offering exceptional effect and flavor. The first Kynd drop features twelve popular strains, including Mai Thai, Black Water and MTF.
The sale of Kynd premium flower in other stores throughout Arizona will begin following the exclusive launch in Ayr’s Oasis dispensaries.
]]>New York’s first adult-use cannabis licenses will not be issued until 2023, according to the chair of the state's Cannabis Control Board (CCB).
CCB Chair Tremaine Wright said last week during a cannabis symposium in Rochester that the board is working on an 18-month timeline to launch the state’s adult-use cannabis market, according to a WXXI report. She said that the first adult-use dispensaries will likely be licensed in the spring of 2023 at the earliest.
“What we do control is getting [dispensaries] licensing and giving them all the tools so they can work within our systems,” Wright said, according to WXXI. “That’s what we are saying will be achieved in 18 months. Not that they’re open, not that they’ll be full-blown operations, because we don’t know that.”
The five-member CCB was established by Gov. Kathy Hochul in September to govern the Office of Cannabis Management (OCM), which will oversee New York’s adult-use cannabis market, as well as its existing medical cannabis and hemp programs.
The Marijuana Regulation and Tax Act (MRTA), New York’s adult-use cannabis law, marks April 1, 2022, as the earliest date for the launch of the adult-use market, according to WXXI.
