MjLink Cannabis Business News and Press

CHICAGO--(BUSINESS WIRE)--PRESS RELEASE--Cresco Labs, one of the largest vertically integrated multistate cannabis operators in the United States, has announced that the company served 3,145 people on New Year’s Day at its five Sunnyside* Dispensaries located in Lakeview, Elmwood Park, Champaign, Buffalo Grove and Rockford, Illinois. Sunnyside* also sold 9,258 cannabis products, including Cresco’s house of brands and items from other Illinois suppliers, with an average ticket price totaling $135.

Customers began to form lines outside Sunnyside* locations as early as 8 p.m. on New Year’s Eve, and lines wrapped around the buildings throughout the day as recreational customers showed their excitement to be part of this historic day. The dispensaries opened at 6 a.m. to immediately start serving recreational customers, with the first sale in the state of Illinois taking place shortly thereafter at Sunnyside* Lakeview. Jacqueline Ryan from Forest Park was the first customer to purchase adult-use cannabis, followed by siblings Elise and Aaron Swopes, two participants in Cresco’s Chicago incubator program, which is part of the company’s SEED (Social Equity and Educational Development) initiative, and Illinois Lt. Gov. Juliana Stratton, who played a critical role in shaping the state’s cannabis legislation.

“We’re ecstatic for our Sunnyside* dispensaries to begin serving recreational customers on such a historic day that launches a new era of cannabis and the development of an industry that will bring greater justice, social equity and business ownership opportunities throughout the state,” said Charlie Bachtell, Cresco Labs CEO and co-founder. “With 13 million residents and 100 million annual tourists, Illinois is predicted to be one of the largest recreational cannabis markets in the United States. Cresco is uniquely positioned in the supply-constrained state, with permission for the largest cultivation footprint at 630,000 square feet and ten retail dispensaries, including three in high traffic areas in the city of Chicago.”

Joe Caltabiano, Cresco Labs President and Co-Founder, added, “We’re thrilled to be part of this historic day and to witness firsthand so much excitement from people on the first day of legal cannabis sales. Our dispensaries served thousands of customers on day one by educating new cannabis consumers, making product recommendations and making sure they had a seamless shopping experience. With five newly re-concepted Sunnyside* locations and an additional five dispensaries opening soon in high profile locations such as one next to Wrigley Field and two in Chicago’s downtown Central District, we expect to serve thousands more customers in response to strong demand. Our Sunnyside* concept is designed to move traffic efficiently, so despite the fact that long lines will likely continue in the first few days of adult-use legalization, we are positioned to ensure that each of our customers gets only the best possible service and the products they are looking for. Cresco is already the leader in Illinois, and we expect to be able to maintain this leadership position as the recreational cannabis market grows, contributing solidly to our overall revenue and our profitability.”

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

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

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

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

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

WAKEFIELD, Mass., Dec. 20, 2019 /PRNewswire/ -- PRESS RELEASE -- Curaleaf Holdings, Inc., a vertically integrated cannabis operator in the United States, has announced that the company has received commitments from a syndicate of lenders for a US$275 million Senior Secured Term Loan Facilitybearing interest at a rate of 13.0% per annum, payable quarterly in arrears, with a maturity 48 months from closing.

Curaleaf has received commitments for the facility from existing lenders as well as other United States based institutional investors. This transaction constitutes a broadly syndicated institutional deal led by sophisticated and long-term investors that have confidence in the cannabis industry and the Curaleaf team in particular. The proceeds will be used to refinance existing debt, satisfy transaction fees and expenses from previously announced acquisitions, fund capital expenditures and for general corporate purposes. The sole placement agent for the facility is Seaport Global Securities LLC.

"This transaction is a historic milestone for Curaleaf. Our track record of continuously improving results has attracted a strong group of institutional investors who share our belief that we have established a leading credit profile in the cannabis industry," said Joseph Lusardi, Chief Executive Officer of Curaleaf. "Importantly, we have raised debt capital at attractive terms without the need to dilute our shareholders. We believe this additional capital fortifies Curaleaf's balance sheet to take advantage of the significant market opportunities that exist in this space."

Neil Davidson, Chief Financial Officer of Curaleaf, continued, "As our business continues to scale and generate positive free cash flow, this additional capital puts us in a position of strength and provides us with ample liquidity to execute on our strategy. Further, we believe our pending acquisitions, most notably Select and Grassroots will benefit from our expanded balance sheet, both of which are expected to close early next year."

The facility is subject to completion of customary closing conditions, with expected completion of conditions precedent and drawdown on or about Jan. 10, 2020.

Illinois Gov. J.B. Pritzker announced Dec. 31, the eve of adult-use cannabis legalization in the state, that he was pardoning more than 11,000 low-level cannabis convictions.

“When Illinois’ first adult-use cannabis shops open their doors tomorrow, we must all remember that the purpose of this legislation is not to immediately make cannabis widely available or to maximize product on the shelves; that’s not the main purpose, that will come with time,” Pritzker said in his announcement. “But instead the defining purpose of legalization is to maximize equity for generations to come.”

The pardon means that convictions involving less than 30 grams of cannabis will be automatically expunged, and the 11,017 Pritzker pardoned Tuesday will receive notification via mail, the Chicago Tribune reported.

State officials estimate that there are hundreds of thousands of people in Illinois who could be eligible for expungement, according to the news outlet. Illinois State Police are searching criminal records to identify eligible cases and submitting them to the Prisoner Review Board, which reviews the cases and sends the names of those eligible for expungement to the governor’s office to be considered for a pardon.

While many of the cases will be automatically expunged in the next couple of years through this process, those with criminal convictions can get a copy of their record and start the process sooner, the Chicago Tribune reported.

New Mexico Rep. Javier Martinez (D-Albuquerque) will pre-file an adult-use cannabis legalization bill in the coming days that incorporates recommendations from the state’s governor-appointed work group, which was charged with suggesting what an adult-use program should entail.

Martinez’s legislation will establish a private adult-use cannabis industry in the state and regulate the market similar to alcohol, according to a local KRQE report.

In an effort to protect the state’s existing medical cannabis program, the legislation would remove sales tax on medical cannabis products and create subsidies for low-income patients, the news outlet reported.

Martinez participated in New Mexico’s work group alongside 21 other policy leaders from across the state, including law enforcement, medical professionals and politicians. The group submitted its recommendations for an adult-use cannabis program to elected officials in October, and focused on prioritizing the state’s medical cannabis patients and providing a large portion of adult-use proceeds to law enforcement and public health programs.

The New Mexico House passed an adult-use legalization bill last spring by a narrow margin of 36-34, but the legislation ultimately stalled in the Senate.

Now that we're on the far side of the holiday season, the Cannabis Conference team is extending its Early Bird registration deadline (originally Dec. 27) to Jan. 10. 

You don't want to miss out on this deal.

Savings at the Early Bird pricing level include: $500 off the All-Access pass, $400 off the Conference & Expo pass and $300 off the Expo Only pass.

Prices will shoot up another $100 after Jan. 10, so get your registration in now.

And while you're at the Cannabis Conference 2020 website, check out our education schedule and our list of speakers. We've been developing our education offerings with our Cannabis Conference 2020 advisory board, which includes some of the brightest minds in cannabis cultivation and retail, as well as the newly legal U.S. hemp industry. 

Cannabis Conference 2020 will be our fourth annual event, and our second visit to Las Vegas. The conference happens April 21-23 at the Paris Las Vegas Hotel & Casino. We're looking forward to gathering business owners from across the rapidly growing cannabis industry, and we're excited to have everyone share ideas and perspectives on how best to support this fascinating marketplace.

Long lines and mix of happy and frustrated customers marked the first day of adult-use cannabis sales in Illinois. While some of those customers encountered supply shortages or point-of-sale glitches (or dispensaries that they only thought were licensed for adult-use sales), many on the ground in this newest cannabis market reported smooth sailing.

Sales began at 6 a.m. at most retail locations, and businesses made sure to greet the customers who got up early to take advantage of this historic day.

“The early bird gets the herb!” Oak Park resident Jack Fitzgerald shouted as he left Seven Point in the morning, according to the Chicago Tribune’s roundup of the day’s activities. The Chicago Sun-Times noted that some customers had started lining up outside stores as early as Tuesday night.  

In stores throughout the state, the mood was often jovial—despite the frigid temperatures—and raucous cheers were a common refrain amid the day’s business.

At this point, the state has licensed 43 dispensaries to sell adult-use cannabis products. (On Jan. 1, six of those dispensaries were reportedly not ready yet, according to the Chicago Tribune.) More retail licenses are expected, and we’ve been watching the lottery process unfold in highly contentious neighborhoods in Chicago.

Among the first customers in the state was Lt. Gov. Juliana Stratton, who purchased gummies at the Clark Street Sunnyside* location.

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

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

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

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

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

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

Marijuana Hospitality Businesses (HB19-1230):

Regulated Marijuana Delivery (HB19-1234):

Michigan has granted three adult-use cannabis dispensaries approval for home deliveries.

Lit Provisionary in Evart, Battle Creek Provisioning in Battle Creek and Nature’s Releaf in Burton have all been licensed for delivery, according to a Michigan Radio report.

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

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

The U.S. Department of Agriculture approved three U.S. states’ hemp regulation plans in late December, allowing Ohio, Louisiana and New Jersey to proceed with licensed hemp cultivation. None of those states allowed hemp cultivation under the 2014 Farm Bill provisions, making this the first time farmers in Ohio, Louisiana and New Jersey may pursue this newly legal crop.

See each state’s plan here:

Ohio 

Louisiana 

New Jersey 

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

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

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

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

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

Stay Informed

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

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

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

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

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

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

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

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

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

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

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

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

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

Management Team

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

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

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

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

RELATED: Banking the Hemp Industry: 3 Tips for Success

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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