Maryland Cannabis Companies Face Exorbitant Fees To Access Banking Services

6/21/2021

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This article was written by Meghan Thompson and originally published by Outlaw Report.

If you’ve ever used a debit card at a Maryland dispensary, it’s more than likely that the company has a bank account opened with one of the three banks in Maryland that services the cannabis industry: Severn Bank, Bulldog Federal Credit Union, or the newest addition—CFG Bank.

Out of more than 80 different banks in Maryland, those three are the only ones that will service the state’s medical cannabis businesses. That’s because cannabis is still federally illegal and as a result, cannabis companies are typically denied traditional banking services. Financial institutions who service the cannabis industry are technically holding what the federal government still considers to be “drug money.”

Severn Bank in Annapolis was the first in Maryland to venture into the cannabis industry when sales began in 2017. It was joined by Gaithersburg-based Bulldog Federal Credit Union in 2018. Then, just last month, Baltimore’s CFG Bank became the third bank to announce they are servicing Maryland cannabis businesses.

Cannabis companies with bank accounts can accept debit cards, purchase products from other businesses via wire transfer and pay their employees directly from a bank account—services accessible to almost every other legal industry in the U.S.

In an interview with the Baltimore Business Journal in 2018, the president of Bulldog Federal Credit Union said “these people are business owners just like anybody else…they’re businesses that are just trying to serve a need in Maryland. So we want to do the same for them.”

Severn, Bulldog and CFG are all willing to open bank accounts for Maryland’s cannabis businesses, but not before charging hefty fees to accommodate risk incurred by the bank and the additional compliance legwork.

Severn Bank charges cannabis businesses $3,000 to open an account and $1,750 monthly, whereas Bulldog Federal Credit Union in Gaithersburg charges $2,500 initially and $1,500 monthly. That’s a $20,500 per year expense, at least, just to open and operate a bank account.

For this reason, 70% of cannabis businesses in the U.S. are still cash-only, and while the number of banks willing to service cannabis companies is increasing, the vast majority of banks won’t budge until cannabis is legal.

But there’s a lot of money to be made by banks who choose to service Maryland’s cannabis industry, especially considering the state’s cannabis sales hit $1 billion within three years of medical cannabis dispensaries being operational.

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Connecticut Passes Adult-Use Cannabis Legalization

6/18/2021

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The Connecticut Senate on Thursday passed a bill to legalize adult-use cannabis in the state, WFSB reports. The legislation was approved on Tuesday by the House and moves next to Democratic Gov. Ned Lamont who is expected to sign the reforms into law.

In a statement, Lamont noted that the bill passed the Legislature on the 50-year anniversary of President Richard Nixon’s declaration of the War on Drugs.

“The war on cannabis, which was at its core a war on people in Black and Brown communities, not only caused injustices and increased disparities in our state, it did little to protect public health and safety. That’s why I introduced a bill and worked hard with our partners in the legislature and other stakeholders to create a comprehensive framework for a securely regulated market that prioritizes public health, public safety, social justice, and equity. It will help eliminate the dangerous unregulated market and support a new, growing sector of our economy which will create jobs. … By allowing adults to possess cannabis, regulating its sale and content, training police officers in the latest techniques of detecting and preventing impaired driving, and expunging the criminal records of people with certain cannabis crimes, we’re not only effectively modernizing our laws and addressing inequities, we’re keeping Connecticut economically competitive with our neighboring states.  … This measure is comprehensive, protects our children and the most vulnerable in our communities, and will be viewed as a national model for regulating the adult-use cannabis marketplace.”—Lamont in a statement

Cannabis use and possession for adults 21-and-older will be legal on July 1 and retail sales are expected to roll out by May 2022. The law allows adults to purchase and possess up to 1.5 ounces of cannabis, including up to five ounces at home or in a vehicle’s glove box or trunk.

Once signed by the governor, Connecticut will be the 19th state to end cannabis prohibition and the fifth state this year to pass the reforms.

The bill passed 16-11 with four Democrats joining all of the Republicans in voting against the proposal. Nine senators were absent for the vote.

Once the bill is signed into law, New Hampshire and Rhode Island will be the only New England states where cannabis remains prohibited.

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Federal Judge: Detroit’s ‘Legacy’ Licensing Rules are ‘Likely Unconstitutional’

6/18/2021

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A U.S. District Court judge on Thursday blocked the city of Detroit, Michigan from issuing cannabis industry licenses, ruling that the provisions in the city’s industry ordinance giving preference to long-time city residents is “likely unconstitutional,” the Detroit News reports.

U.S. District Judge Bernard Friedman wrote in his opinion that the Motor City’s rules give “an unfair, irrational, and likely unconstitutional advantage to long-term Detroit residents over all other applicants.”

“At a minimum, the ordinance must pass rational basis review to be deemed constitutional under both the United States and Michigan constitutions. However, the challenged provisions of the Detroit ordinance do not appear to be rationally related to the stated purpose of rectifying the harm done to city residents by the war on drugs.”—Friedman, in his ruling, via the News

The Detroit ordinance gives preferential status to “legacy” Detroiters who have lived in the city for 15 of the last 30 years; or for 13 of the last 30 years and are low-income; or for 10 of the last 30 years and have a past cannabis-related conviction.

This is the second time Friedman ruled against the city’s cannabis licensing plan. In April, he issued a temporary restraining order which prevented officials from receiving any more industry applications.

The city’s ordinance includes language that says no licenses will be issued or renewed if any part of the local law is deemed unconstitutional or otherwise struck down. The city had planned to begin issuing licenses on May 1.

The lawsuit against the rules was brought by city resident Crystal Lowe who argued that she was “almost certainly denied” a license because the city’s cannabis ordinance “favors certain Detroit residents over other Michiganders based on the duration of their residency,” according to court documents outlined by the News.

Detroit Councilman James Tate, who sponsored the cannabis ordinance, said the rules were “never to prevent anyone from participating” in the industry but to ensure that those city residents most disproportionately impacted by the War on Drugs “have a fair shot of participating in a potentially lucrative opportunity for Detroit.”

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Florida Supreme Court Rules Cannabis Legalization Ballot Question ‘Misleading’

6/18/2021

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The Florida Supreme Court on Thursday ruled that a proposed ballot initiative to legalize cannabis in the state was misleading due to an unclear use of the word “use,” the Miami Herald reports. The case, brought by state Attorney General Ashley Moody, challenges a 2019 proposed constitutional amendment.

The 75-word summary of the proposal that would have appeared on ballots indicated that the amendment would regulate cannabis “for limited use and growing by persons twenty-one years of age or older.” In the 5-2 ruling, the Justices determined that could mean the initiative’s supporters were claiming to set limits on the amount of cannabis an individual could personally consume; however, the justices ruled that the text of the amendment set no such limits.

“The ballot summary plainly tells voters that the proposed amendment ‘limit[s]’ the personal use —i.e., consumption—of recreational marijuana by age-eligible persons. But the proposed amendment itself does not do so. The relevant provision in the proposed amendment is section (c), titled ‘Personal use of cannabis.’ That section provides in part that it shall not be unlawful for an age-eligible person to engage in certain acts including ‘using . . . cannabis, and cannabis products in quantities reasonably indicative of personal use or for use by household members.’ Even if this language, when viewed in isolation, could somehow be argued to establish a limitation on personal use in an amount equal to a ‘quantit[y] reasonably indicative of personal use or for use by household members,’ any such argument is undermined by the fact that the same section of the proposed amendment further provides that the enumerated quantities ‘are minimum quantities, subject to increase by state, county, or municipal legislation, but not subject to decrease.’”—Florida Supreme Court advisory opinion, June 17, 2021

The initiative backer, attorney Michael Minardi, said his group—Sensible Florida—has alternative adult-use legalization proposals prepared and he called the Supreme Court opinion “really a welcome thing” after a two-year wait. The organization had collected just 29,172 of the necessary 891,589 valid signatures required to put the issue to voters prior to the court challenge.

He indicated plans to put the issue to Florida voters during next year’s midterm elections.

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Fmr. Colorado Govs Back Initiative to Raise Cannabis Taxes

6/18/2021

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A bi-partisan pair of former Colorado governors have endorsed a proposed initiative to raise cannabis taxes to pay for extra tutoring and services to help students make up for academic losses suffered during the coronavirus pandemic, the Associated Press reports. The campaign behind the proposal, Learning Opportunities for Colorado’s Kids, announced the endorsements from former governors Bill Ritter (D) and Bill Owens (R) on Wednesday.

The campaign—I-25—needs 250,000 signatures by Aug. 2 to be put to voters. The proposal would supplement a plan proposed by Democratic Gov. Jared Polis which would serve the state’s low-income students and those who are falling behind by creating the Colorado Learning Authority. The new office in the Department of Education would be tasked with helping kids ages 5 to 17 with English language learning, out-of-school tutoring, special needs instruction, mental health services, and career training.

In order to pay for the program, the initiative would raise the state’s cannabis excise tax from 15% to 20% by 2024. It is expected to raise over $137 million. Under the initiative, other funds may be raised from leases and rents on state land and possibly outside sources. Currently, in addition to the 15% excise tax, adult-use cannabis in Colorado carries a 2.9% state sales tax, but the funds can only be used for school construction and maintenance, the report says.

In addition to the endorsement from the former governors, the initiative is supported by Democratic and Republican lawmakers and a host of service and education organizations serving Black and Latino kids.

Papa Dia, executive director of the Aurora-based African Leadership Group, said that the “initiative helps level the playing field and lift up those for whom there are too few opportunities.”

“With LEAP, we can narrow the opportunity gaps between the rich and poor, between students from homes where English is not the first or primary language spoken, and between those attending high-performing schools and those who do not.”—Papa Dia in a statement

Notably, the AP points out the Colorado cannabis industry is “wary” of the tax increase and has raised concerns about the increase encouraging the state’s unregulated cannabis market. In April, Colorado collected over $25 million in excise tax revenues from over $166 million in adult-use cannabis sales, according to the AP.

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Connecticut House Passes Legalization Bill, Senate Vote Expected Today

6/17/2021

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The Connecticut House on Wednesday approved a cannabis legalization bill with the Senate expected to vote on the proposal today, the Hartford Courant reports. The vote came during a special session, which Democratic leaders called after the House failed to vote on a Senate-approved legalization bill before the end of the state’s regular session.

The Senate has approved the measure twice in eight days but had recently amended social equity provisions in the bill enough to force Democratic Gov. Ned Lamont—a strong supporter of legalization —to threaten a veto, according to CT New Junkie. The changes included an amendment that would have included wealthy relatives of anyone who had previously been arrested on cannabis charges to be considered a social equity applicant.

House Speaker Matt Ritter (D) told the Courant that most of the caucus members were comfortable removing the language opposed by the governor as it was not part of the original bill drafted in coordination with Lamont’s office.

The House plans to restore the initial definition of equity applicants to only include individuals from areas most disproportionately impacted by the enforcement of cannabis laws—those with the highest rates of drug-related arrests—high unemployment rates, and those with incomes less than 300% of the state median.

Following the House vote, Rep. Steven Stafstrom (D) said the state’s “time has finally come” for broad cannabis legalization.

“We take the next step as this chamber in recognizing the war on drugs has failed us and the criminalization of cannabis was the wrong course of action for our state and for our nation.”— Stafstrom to the Courant

As currently drafted, the measure would allow adults 21-and-older to purchase and possess up to 1.5 ounces of cannabis, including up to five ounces at home or in a vehicle’s glove box or trunk, starting on July 1. Retail sales in Connecticut are not expected to start until May 2022.

The bill passed the House 76-62. During the regular session, the Senate passed the bill by just two votes.

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Florida Supreme Court Upholds Vertically Integrated Medical Cannabis Structure

6/17/2021

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Florida’s Supreme Court has ruled that the state’s current medical cannabis industry rules are constitutional, Florida Political Review reports. The legal challenge against the state’s vertical integration structure was filed by Florigrown, which was denied an operator license in the state in 2018.

Vertical integration requires that the same company grow, process, and distribute cannabis products in order to get a license. The initiative approved by voters in 2016 did not require a vertically integrated system; however, the structure was included in subsequent regulations approved by lawmakers.

In the 6-1 ruling, the Supreme Court found that the vertical integration system has neither made medical cannabis unavailable to patients nor limits the number of dispensaries that can be licensed.

Ben Pollara, who ran the campaign to legalize medical cannabis in Florida, said the decision “should surprise no one” which “comes as a giant relief to the medical marijuana companies.”

“That probably doesn’t mean a whole lot to folks that want to get medical marijuana in Florida, and who aren’t in it, because most of those folks gave up the goat a long time ago.”—Pollara to the Political Review

Pollara also noted that the decision, paired with recent bills to limit the amount of THC in medical cannabis products, makes broad cannabis legalization unlikely “anytime in the future.”

“…This is the ball game,” he said in the report.

Justice Alan Lawson wrote the lone dissent with the majority opinion, concluding that the state’s medical cannabis law grants “privileges to corporations.”

There are only 22 entities licensed as medical cannabis operators in the Sunshine State.

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Weedmaps Begins Trading on the Nasdaq

6/17/2021

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Cannabis technology and software company Weedmaps Holding Company LLC on Wednesday began trading on the Nasdaq following a takeover of Silver Spike Acquisition Corp. In connection to the closing, Silver Spike changed its name to WM Technology and its ticker symbol was changed to “MAPS.”

Chris Beals, Weedmaps CEO, said the merger advances the company’s mission “to power a transparent and inclusive global cannabis economy, further solidify [its] position as a leading technology platform to the cannabis industry, and accelerate … growth.”

“We continue to benefit from strong, sustainable macro tailwinds as cannabis legalization advances throughout the U.S. and internationally. As a public company, we now have an even stronger platform to advocate for legalization, social equity and licensing in many jurisdictions, while providing cannabis businesses with the tools needed to succeed in a highly complex world of regulations. We are well positioned to continue scaling the Weedmaps marketplace in service of our users, while expanding the functionality of our WM Business SaaS offerings in service of our clients.”—Beals in a press release

The company indicated that from fiscal year 2014 through 2020, its revenue grew at a compound annual growth rate of 35% and its gross margin rate expanded from 92% to 95%. By the end of 2020, Weedmaps generated $162 million in revenues, a net income of $39 million, and adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) of $43 million, it said.

The deal provides $579 million of gross proceeds primarily comprised of $254 million of cash from Silver Spike’s former trust account and $325 million of cash from a private investment in public equity, not including transaction fees.

Weedmaps announced its intent to take the company public last year, and, at that time, the cannabis tech firm was valued at $1.5 billion.

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Inkbrite: Compliant Cannabis Packaging Solutions in California

6/17/2021

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Compliance errors in cannabis packaging can create costly errors. They can trigger a recall if products have made it to dispensary shelves, or result in fines — in January, for example, Maine-based SeaWeed Co. was slapped with a $10,000 fine over product packaging that featured the company’s logo, a cartoon mermaid that regulators said could be construed as appealing to children. Additionally, because there are still only state-level cannabis legalization laws, each state may have different cannabis packaging requirements and compliance rules, meaning that cannabis packaging rules in Arizona, for example, may be wildly different from the rules in California.

Cannabis companies and brands don’t have to handle these issues alone, however, because there are cannabis packaging companies like Inkbrite who understand the need for embedding regulatory intelligence into the actual creation of cannabis packaging. Inkbrite is a California-based cannabis packaging company that helps both emerging and legacy brands get a foothold in the cannabis market through impactful packaging. Their platform offers an easy way to create stylish compliant packaging so that cannabis companies can focus on what they do best.

We recently chatted with Inkbrite co-founder Laurie Peterson about the company’s launch and how important it is for cannabis business owners to be on top of compliance issues related to their packaging.

“What if we shine a light on the good you can do when you are free to follow your own vision?” Peterson said.

Founding story

Inkbrite is a woman-founded and owned company led by serial entrepreneur Laurie Peterson and business partner Marya Gomez. Peterson came from a background in toy construction and Gomez has a varied background in compliance and software development. Together, they launched Inkbrite in 2019, backed by a group of investors and advisors.

“A small percentage of funded startups are led by women. I think this is in part because of how we talk about entrepreneurship,” said co-founder Laurie Peterson. “We glorify the risk-taking and the wild ride, rather than the impact you can make. We imagine the young guy in the hoodie who has nothing to lose, leaping off a cliff. What if instead, we imagine the woman with a lifetime of experiences to give, taking one step at a time?”

Who does Inkbrite serve?

Inkbrite was created “to make impactful cannabis packaging accessible to the independent businesses that have built the cannabis industry,” said Peterson.

The startup’s primary role as a company is to offer the easiest way of creating custom cannabis packaging — even for people who have little design skills, little knowledge of industry compliance, and/or a small budget. The company empowers cannabis brands to make powerful impressions that are on-trend and meet the ever-evolving regulatory market requirements in California.

“Go on, give those big-money brands something to sweat about.” — Excerpt from Inkbrite.com

Inkbrite vows that their cannabis packaging options are:

  • Stylish: Co-create custom packaging to unlock the unique potential of your cannabis brand.
  • Compliant: Proceed with confidence knowing that Inkbrite’s design platform is rooted in regulations.
  • Affordable: Design making is free! Once you’re ready to order, enjoy all-inclusive per-unit pricing.

“My long-game view has been an advantage for me as a female founder,” Peterson said of Inkbrite, which is her sixth entrepreneurial venture. “I’ve learned not to get too caught up as my entrepreneurial peers skyrocket and then fizzle as I just keep putting one foot in front of the other, keeping faith that even when I can’t see around the corner, we must be headed somewhere meaningful.”

Inkbrite’s services also include compliance reviews for cannabis product labels, as well as a checklist review of current cannabis product packaging against the company’s compliance checklists. Ultimately, their goal is to ensure that any and all California-based clients are using only 100% compliant packaging.

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Louisiana Gov. Signs Bill Reducing Penalties for Low-Level Possession

6/17/2021

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Louisiana Gov. John Bel Edwards (D) on Wednesday signed a bill making possession of small amounts of cannabis a misdemeanor, according to the Associated Press. Sponsored by Shreveport Rep. Cedric Glover (D), the measure makes up to 14 grams of cannabis flower a misdemeanor punishable by a $100 fine with no possibility of jail time.

The bill narrowly passed the state Senate in early June and takes effect August 1.

In a statement announcing the signing, Edwards said the bill was part of Louisiana’s “criminal justice reform efforts” and it was not a decision he made lightly.

“In addition to carefully reviewing the bill, I also believe deeply that the state of Louisiana should no longer incarcerate people for minor legal infractions, especially those that are legal in many states, that can ruin lives and destroy families, as well as cost taxpayers greatly.” — Edwards via the AP

Glover worked with conservative Republican Rep. Alan Seabaugh on the legislation. Seabaugh’s amendments set the penalty parameters outlined in the legislation, the Lafayette Daily Advertiser reports.

“One thing I think we can find common ground on is the belief that the possession of small amounts of marijuana should not lead you to jail or to become a felon,” Glover told the Daily Advertiser.

Although the bill falls short of Louisiana’s attempts to pass broad cannabis legalization, it represents progress in the Deep South state. This session, lawmakers also passed a bill allowing smokable products in the state’s medical cannabis program.

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Federal Bill to Decriminalize All Drugs Introduced in House

6/16/2021

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Congressional Democrats on Tuesday introduced a bill to decriminalize all drugs at the federal level and shift authority for the substances from the Attorney General to the Secretary of Health and Human Services.

The measure, introduced by Reps. Bonnie Watson Coleman (NJ) and Cori Bush (MO) also includes social justice provisions including records expungement and sealing, and relief for people currently incarcerated or on supervision for certain drug-related convictions. The proposal would also eliminate the consequences associated with drug convictions, including denial of employment, public benefits, immigration status, drivers’ licenses, and voting rights.

The measure was introduced ahead of the 50-year anniversary of the declaration of the War on Drugs— on June 17—by then-Republican President Richard Nixon.

In a statement, Coleman described the War on Drugs “as a stain on our national conscience since its very inception.”

“Begun in 1972 as a cynical political tactic of the Nixon Administration, the War on Drugs has destroyed the lives of countless Americans and their families. As we work to solve this issue, it is essential that we change tactics in how we address drug use away from the failed punitive approach and towards a health-based and evidence-based approach.”—Coleman in a press release

In a story for Harper’s in 2016, reporter Dan Baum interviewed Nixon’s former Chief Domestic Policy Advisor John Ehrlichman who said that the War on Drugs was a weapon against two of the disgraced former president’s “enemies”: the antiwar left and Black people.

“We knew we couldn’t make it illegal to be either against the war or Black, but by getting the public to associate the hippies with marijuana and Blacks with heroin, and then criminalizing both heavily, we could disrupt those communities,” Ehrlichman told Baum. “We could arrest their leaders, raid their homes, break up their meetings, and vilify them night after night on the evening news. Did we know we were lying about the drugs? Of course we did.”

Bush described the crack-cocaine epidemic robbing her community “of so many lives” and called the war on cannabis “malicious.” She added the Black people are arrested for cannabis possession at three times the rates of their white counterparts despite similar usage rates.

“As a nurse, I’ve watched Black families criminalized for heroin use while white families are treated for opioid use. And now, as a Congresswoman, I am seeing the pattern repeat itself with fentanyl, as the DEA presses for an expanded classification that would criminalize possession and use,” she said in a statement. “This punitive approach creates more pain, increases substance use, and leaves millions of people to live in shame and isolation with limited support and healing.”

The bill was drafted by the Drug Policy Alliance whose Manager for the Office of National Affairs Queen Adesuyi added in a press release that someone’s “life is ruined” for drug possession every 23 seconds.

“We will not be subjugated any longer by an offensive that was created solely with the purpose of ‘disrupting’ our communities,” she said in a statement. “This bill gives us a way out—a chance to reimagine what the next 50 years can be. It allows us to offer people support instead of punishment. And it gives people who have been harmed by these draconian laws a chance to move forward and embrace some semblance of the life they have long been denied.”

Democrats hold slim majorities in both chambers of Congress and, were the measure approved by the House, it would face very long odds in the Senate.

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Columbia Care to Acquire Medicine Man in $42M Deal

6/16/2021

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New York-based multi-state cannabis operator Columbia Care Inc announced on Tuesday a deal to acquire Colorado’s Medicine Man Denver for $42 million in cash and stock. Medicine Man last year outperformed the broader Colorado market with sales growth of 42% compared to 24% for the state and 64% year-to-year through May versus 24% for the state, Columbia said in a press release.

The acquisition will add three adult-use dispensaries, one facility that serves both medical and adult-use clients, and a 35,000-square-foot cultivation facility that produces three million grams of flower annually.

Nicholas Vita, CEO of Columbia Care, said the deal “will further cement” the company’s “position as the leading vertically integrated operator in Colorado.”

In 2019, Columbia announced it would acquire The Green Solution for $140 million. Vita said that the Medicine Man acquisition “in tandem with [the] ongoing integration of The Green Solution … will have a positive impact on [Columbia’s] financial performance for years to come.”

Medicine Man President and Co-founder Andy Williams said that the cannabis industry “is changing and growing now faster than ever” and that the company recognizes “the need to partner with others in order to continue to compete within, and help to responsibly transform, the industry as it grows.”

$8.4 million of the deal’s considerations will be paid in cash with $33.6 million in stock. A potential milestone payment is included next year if certain performance targets are met. The transaction is expected to close in the fourth quarter of this year.

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California Legislature Approves $100M Aid for Cannabis Businesses

6/16/2021

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The California legislature has approved Democratic Governor Gavin Newsom’s $100 million plan to help legal cannabis businesses transition from temporary to permanent licenses, the Los Angeles Times reports. Under the plan, which is part of the State budget, cities and towns can apply for grants to help provisional licensees obtain the California Environmental Quality Act (CEQA) mandated environmental review needed for final license approval.

According to the report, as of April, 82% of California cannabis businesses hold temporary licenses.

Assemblyman Phil Ting (D), chairman of the Assembly Budget Committee, said that despite the legalization of cannabis in the state five years ago, California has “yet to reach the goal” of a “well-regulated cannabis market.”

In addition to the grants, the governor is seeking a six-month extension to the January 1, 2022 deadline for temporary license holders to obtain the environmental review needed to upgrade to an annual license. The extension, which did not pass in the state budget with the grant proposal but remains in negotiations, is opposed by a coalition of seven environmental groups, including Sierra Club California, Defenders of Wildlife, and the Nature Conservancy. In a letter to Newsom, they called the proposal “wholly inadequate to protect local communities and the environment.”

On the other hand, industry leaders say the funds, although needed, are inadequate and may not help licensees, some of whom may still face years of red tape to obtain annual licenses.

President of the United Cannabis Business Association, Jerred Kiloh, told the Times that “it is a significant amount of money,” but, that he wasn’t sure “that it actually answers the problem of provisional licenses making it through CEQA analysis in a timely manner to get an annual license.”

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Joe Exotic Launching Cannabis Brand from Prison

6/16/2021

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Joe Exotic, whose life was chronicled in the Netflix documentary “Tiger King: Murder, Mayhem and Madness,” is planning to launch his own cannabis brand, Joe Exotic Cannabis, in partnership with Tango Hotel Charlie Group LLC and Cannaxxs LTD, according to a TMZ report.

Exotic has been working on the deal from prison, where he is serving a 22-year federal sentence for plotting to murder his rival, Carole Baskin.

According to the report, the line will include CBD edibles and will be rolled out in California, Colorado, and Exotic’s former home state of Oklahoma. His attorney, Brad Small, told TMZ that he expects the launch to happen within weeks.

A share of the proceeds from the line will be donated for captive tiger care, the report says.

Exotic, 58, whose real name is Joseph Maldonado-Passage, is reportedly also suffering from prostate cancer.

In May, Exotic launched a clothing brand with Odaingerous which, according to TMZ, sold out in minutes and made more than $20,000 in online sales.

Exotic had sought a pardon from former President Donald Trump but was not included on the outgoing president’s final list. In April 2019, he was also sentenced for killing five tigers, selling tiger cubs, and falsifying wildlife records, according to an Associated Press report.

Exotic has maintained his innocence in the murder-for-hire conspiracy and his attorneys argued in his pardon application that he was “railroaded and betrayed” by others which led to his conviction, according to the AP. He is scheduled for release in 2037.

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Rick Egan: Vaporizer Innovations & White Labeling

6/16/2021

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As more and more consumers choose to vape instead of smoke their cannabis, vaporizer manufacturers are motivated to improve and innovate their offerings. Today, there are myriad different methods for consuming cannabis concentrates but dabbing and vaping still reign supreme.

In this written Q&A, Rick explains how the vape manufacturer Ispire dreamed up their award-winning invention, The Wand, as well other hardware options by Ispire including the ubiquitous Ducore vape cartridges. The interview also covers the benefits of working with a white label vape manufacturer, the future of the vaporizer industry, how to improve consumer education, and more!

Scroll down to read the full interview.

Ganjapreneur: When was Ispire founded and what is the goal of the company?

Rick Egan: Ispire was founded in April 2020 with the goal of delivering elite quality life experiences and revolutionizing the cannabis industry forever through innovative solutions, technology, and hardware.

How have the Ispire R&D and engineer teams redesigned the 510 threaded cartridge design? What benefits does this design create?

Our team is the catalyst in designing the modern-day vape pen we all know and love, whose design was the blueprint for the standard 510 thread we see today used by Cannabis’s biggest brands. In the spirit of innovation, we transformed the carts with our patented Ducore Technology (TM) which uses our ceramic coil system with a leak-resistant design to prevent flooding and clogging, along with our chambered airflow system that on some of our carts is fully customizable to the user’s liking. The adjustable airflow controls allow for a tighter hit and large clouds for a seasoned consumer, or a smoother, more breathable hit that allows for easy consumption and minimal coughing.

Our tech and hardware is a game-changer for brands that are sick of their hardware leaking, clogging and simply not doing their product justice, and for the consumers sick of burning their concentrates or their lips and coughing every time they want a hit of their pen. Our cartridges are also universally compatible with all 510 threaded batteries.

What are the benefits of dabbing with The Wand? How does it differ from an e-nail or common dab rig?

The Wand is our latest innovation at Ispire, launching only two months ago and already 2x Award-Winning. We won the John McKay Award for Scientific Advancement and Innovation in the industry because this product has truly revolutionized the dabbing community—and cannabis industry as a whole—forever. The Wand is the first of its kind dabbing device that uses induction heating paired with our food-grade glass bangers and inner cups to allow users to dab without fire. No more smoking harsh chemicals, having cans of butane and a blowtorch lying around your house and needing to refill after heating two dabs, and no more e-nails with faulty wiring! As opposed to other e-nails that require you to put your concentrate directly onto plastics or metal to heat it up, The Wand uses standard 14mm food-grade glass bangers and inner cups to allow the safest experience possible and to get the tastiest flavor profile, every time.

The Wand allows for custom temperature settings in 5 degree intervals from 450-800 degrees, putting the power back in the hands of the consumer. This eliminates the need for a dab thermometer or other expensive, excessive tools. This also allows you to take either a low-temp dab or high-temp dab depending on your preference. We’ve created a true hassle-free dabbing experience that’s safer, customizable, and compatible with almost any bong or rig of your choice, making The Wand not only portable and convenient, but the clear best choice when it comes to dabbing.

The Wand and Ispire cartridges allow the consumer to vape at lower temperatures compared to comparable tech, what are the benefits of low-temperature consumption?

Lower temperatures allow for better flavor since terpenes burn at a lower temperature than THC concentrates. By lowering the temperature consumers are able to experience the flavor profile of the product which provides a better experience and allows for the consumer to taste each terpene at its intended temperature. Not only is it more flavorful and beneficial, it also allows for a smoother hit and puts less stress on the lungs/esophagus than a hot dab as the vapor is less hot when inhaled.

Can companies white label Ispire batteries? How can these products be branded and utilized as a marketing tool for brands?

Yes. All of our carts and batteries are fully customizable, and our brand partners are able to white label or create custom colors, proprietary molds, and custom packaging all through Ispire’s amazing Marketing and Business Development Teams. Brands can add their logo to our Batteries, and we work with them to create custom packaging which eliminates their need to shop around and find different vendor partners for each step of their supply chain.

Unlike many of our competitors, we are a team of US-based cannabis industry professionals able to see the needs of our cannabis community and meet them head-on while also remaining forward-thinking. This is what has allowed us to create innovations that have and will change the future of our industry forever.

Once a client chooses to use Ispire technology what kind of client support is provided to their team?

We offer white-glove service to our brand partners including co-branded Marketing efforts such as product and lifestyle photo shoots, space on our social media and website, and other digital and physical assets to help make our partners truly stand out.

We are in the business of long-term partnerships, and supply our colleagues with the best hardware and technology possible to ensure their top quality product gets into the hands of the consumer the way it should. It is our partnership promise that sets us apart from our competitors.

Does Ispire sell products directly to consumers? Where can people find the Ispire Wand, batteries, and other quality vape products?

We do currently sell only The Wand And its accessories directly to consumers! You can purchase The Wand and its accessories on our website or from our retail partners. Get yours today!

As far as our carts and batteries, we only provide these to our industry brand partners. The best way for brand partners, dispensaries, or wholesalers to find our carts and batteries to white label is through reaching out to us directly via our website.

Consumers often opt for lower-cost batteries for vaping — does this pose any challenges for high-end cartridge design?

In short, no. We are seeing the cannabis industry pivot to putting quality first and Ispire does just that. Anyone can buy cheap carts or batteries online for much less than they do in a store, but with that decision comes a heavy burden. They would be smoking heavy metals, using faulty wiring that could burn their lips, and have many other risks involved with the cheaper options.

We are seeing now more than ever that you can have the best concentrates in the world, but the minute you put it in sub-par hardware you degrade its quality. With Ispire, that’s something they never have to worry about.

Unlike our competitors, our batteries are built to last and come at a surprisingly cost-effective price competitive with others in the industry. The price is great, the quality is even better and the partnership will last years into the future.

How can the industry better educate cannabis consumers on the relevance of buying a quality battery for vape cartridges?

It all starts from within. We as a community can put a focus on creating educational content for industry professionals and consumers alike. It’s important that we educate ourselves and our colleagues, and then share that information with the world through our social platforms, websites, and beyond.

Rather than focusing on the small, short-term savings provided by inferior products, we need to focus on the long-term benefits and reputability that come with choosing quality.

How does Ispire educate consumers and retail associates on the importance of purchasing a quality battery for vaping?

We create educational content around these topics that can be found on our social channels such as Youtube, Instagram, and Linkedin.

How do you continue evolving to meet consumers’ needs?

Our answer is simple; we care, we focus on innovation, and we think outside the box. Our owner takes pride in immersing himself in the industry to see what the current needs are, and then spends countless months researching and testing to create new, never before seen products that are the best in cannabis.

Combined with our white-glove service and partnership promise to always deliver the best quality experience to our partners and consumers alike, Ispire has taken the industry by storm and will always stand out from the rest.

Thanks, Rick, for answering these questions for us! Visit GetIspire.com to learn more.

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Study: More than Half of Delta-8 Products Contain Illegal Amounts of Delta-9 THC

6/15/2021

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More than half—53%— of Delta-8 THC products sent for independent testing by Leafreport contained Delta-9 THC over limits allowed under U.S. federal law, while 68% contained less Delta-8 than advertised.

The study included 38 Delta-8 products in all with 12 products being deemed “excellent,” 10 rated “decent,” four considered “poor,” and 12 failing.

Products received their ratings based on how close Delta-8 levels were to the packaging. A product received an excellent rating if independent lab tests showed Delta-8 levels within 10% of what was stated on the label; products were considered decent if the lab tests showed Delta-8 levels within 20% of the label; poor products were within 30% of the label; while failing products differed from the label by more than 30%. Products with no information automatically received the worst rating.

At least one product contained 15.2% Delta-9 THC, which far exceeds the 0.3% federal threshold.

Just 12 of the 38 products tested had the advertised amount of Delta-8, the researchers found, adding that “the rest were off by 10.7% to 102.7% from the label.”

Leafreport also noted that Delta-8 pre-rolls and gummies were more likely to have inaccurate levels than tinctures and vape products and all of the products passed tests for heavy metals. The names of most products tested were obscured in Leafreport’s results, so it is unclear which Delta-8 brands contained Delta-9.

For clarification on the science involved, Ganjapreneur reached out to Kristen Goedde of Trichome Analytical, who did not test the products from Leafreport’s study directly, but who has tested numerous Delta-8 products for various manufacturers.

According to Goedde, nearly all of the Delta-8 products tested by Trichome Analytical have contained levels of Delta-9 THC that would make them illegal under federal law. She believes this may be due to the process by which Delta-8 THC is synthesized from CBD isolate.

“In the conversion process from CBD isolate into Delta-8 THC, other THC isomers including Delta-9 THC are created in varying amounts. At Trichome, we have yet to see a compliant, high potency Delta-8 product that can be manufactured on a large scale. It is quite likely that all Delta-8 vape cartridges on the market contain non-compliant levels of Delta-9 THC.” – Kristen Goedde, in a statement to Ganjapreneur

One way for labs to ensure they are detecting any Delta-9 THC in a product, Goedde says, is to implement an “orthoganal” approach when it comes to testing Delta-8 products — in other words, using two different testing methodologies to verify results.

However, Goedde believes that many Delta-8 brands may be intentionally working with labs that are not configured to thoroughly test for Delta-9 THC, in order to get compliant certificates of analysis.

If one lab tells a brand that their product is non-compliant, the brand can simply send their product to another lab that is less-equipped to handle such specialized testing, and they could still wind up with a compliant certificate to show retailers and consumers. As Goedde points out, this reality makes it “difficult for the consumer or store owner to figure out the true composition of these products.”

 

 

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Cronos Reaches Deal with Pharmacann That Would Allow 10.5% Ownership Stake

6/15/2021

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Licensed Canadian cannabis company Cronos Group Inc. announced on Monday it had reached a deal with Pharmacann that would allow a subsidiary of the Toronto-based firm to acquire a potential 10.5% ownership stake Chicago, Illinois-based cannabis operator.

The option would be exercised based on various factors, Cronos said in a press release, including U.S. federal legalization and regulatory approvals in the states where Pharmacann operates. The company operates both medical and adult-use locations in Ohio, Pennsylvania, Massachusetts, New York, Illinois, and Maryland, according to the Pharmacann website.

Kurt Schmidt, president and CEO of Cronos Group, said the company was attracted to Pharmacann “because of their disciplined capital allocation, strong track-record, and compelling licensed manufacturing and retail footprint.”

“Our U.S. growth strategy focuses on delivering long term shareholder value by assembling a best-in-class brand and intellectual property portfolio and positioning to deploy our products in the U.S. market through investments and opportunities with U.S. leaders who share our vision and commitment to responsibly distributing disruptive cannabinoid products that improve people’s lives.”—Schmidt in a statement

Cronos paid $110.4 million for the option which will be distributed directly to Pharmacann shareholders, the company said.

Pharmacann CEO Brett Novey said the investment “validates [the company’s] position as a leading vertically integrated U.S. cannabis company” while highlighting the firm’s “ability to continue to expand and enhance” its asset base.

Cronos trades in the U.S. on the NASDAQ under the CRON symbol.

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California Ruling Prevents State From Disciplining Employees Over Positive Cannabis Test

6/15/2021

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A California State Personnel Board (SPB) ruling limits using positive cannabis drug tests in disciplining state workers. The “precedential decision” determined that urine samples do not accurately reflect whether an employee is under the influence of cannabis while at work.

“…The Board notes that it does not take a position on whether using marijuana is a good thing or a bad thing. The voters have spoken and legalized it in the State of California. Given that reality, State Agencies are powerless to discipline employees, like Appellant, whose test showed only that marijuana had been ingested or used sometime in the past, but that Appellant was not under the influence of marijuana while on duty.” – California State Personnel Board decision No. 21-01, Darrin Harper v. California Department of Transportation

Darrin Harper, a Caltrans maintenance worker, brought the case against the Transportation Department after he was fired following a positive cannabis test. The SPB noted that Caltrans “did not contend” Harper was under the influence while on the job and Caltrans never made such allegations in their Notice of Adverse Action against Harper or during an evidentiary hearing.

The board further acknowledged that Harper’s behavior was “no different from the personal consumption of wine, beer, or other alcoholic beverages.”

“It is a social and recreational activity that is legal and permissible in California,” the board said.

The decision does note that some state jobs are considered “safety sensitive” but state law only bars “the use, possession, or being under the influence of illegal or unauthorized mind-altering substances” while on duty or on standby for duty.

The SPB ruling does clarify that the decision neither covers federal government employees or federal contractors in California, nor law enforcement officers.

The decision was adopted at the SPB’s March 4 meeting.

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Montana Group That Brought Lawsuit Against Legalization Requests Dismissal

6/15/2021

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Wrong for Montana last week filed a motion to dismiss its own lawsuit challenging the state’s voter-approved adult-use cannabis initiative the Helena Independent Record reports. The lawsuit challenged provisions in I-109 that allocated tax revenue to specific projects, which is not allowed under the state Constitution.

The lawsuit became irrelevant when Gov. Greg Gianforte (R) signed HB 701—the bill to implement adult-use legalization— into law.

Despite filing the motion, Steve Zabawa, founder of the anti-cannabis organization, maintained voters were “tricked” into passing I-109, but was “confident” in the bill signed by the governor.

“It seems like everything is side-boarded,” he said in an interview with the Independent Record. “I think we’re ready to move on to the next chapter.”

Prior to Wrong for Montana’s motion, the state Attorney General’s Office filed its own motion to dismiss on the grounds HB 701 had replaced I-109. In their filing, the AG’s office described the lawsuit as “moot.”

The group behind the successful legalization campaign, New Approach Montana—now known as the Montana Cannabis Guild—also filed a motion to dismiss.

Cannabis Guild President and CEO J.D. “Pepper” Petersen told the Independent Record that “the lawsuit never had any merit in the first place.” He added that he doesn’t “put any merit in” anything Zabawa says.

Although Zabawa is walking away from the lawsuit, he does not appear to be backing down—a message on Wrong for Montana’s website reads: “Let’s make 2023 the year we rectify the great wrong of 2020.”

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Review: Flavor Fix Handcrafted Stash Boxes & More

6/14/2021

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Flavor Fix is a publishing platform working to bridge the chasm between cannabis and spirits. On their website, the Flavor Fix team provides education on cannabis strains, distilled spirits, recipes, dispensaries, distilleries, and recent industry news. They also make recommendations for pairing strains with specific spirits, and which activities and music might best complement said experience. The site promotes a lifestyle of responsibly enjoying legal beverages and cannabis products together in a way that is relaxing, fun, and/or creative.

To further promote these experiences and support their clients looking to advertise their brands, Flavor Fix makes and sells a variety of handcrafted products made from fine Canadian woods. The stash box can not only contain all of your cannabis accessories and products but it looks good on a coffee or side table. The rolling tray is so finely made it can double as a place to put a candle when you’re not rolling up. And on the spirits side of things, the cutting board looks beautiful alongside the flight paddle, which is outfitted with holes sized for Glencairn whiskey glasses — perfect for entertaining.

For brands that are looking for a classy but effective advertising campaign or promotional product, each item can be branded with their logo for the perfect subtle touch. If a brand is looking for an extra something special, Flavor Fix can utilize their master woodworker and source materials to make custom items similar to their other product offerings, such as wine boxes or containers for edibles.

Stash Box

The Flavor Fix stash box is crafted with Canadian walnut, accented with maple wood and outfitted with brass hardware that snaps it closed. Mine is currently filled with an array of things — personally, I was surprised it all fit. There is a jar that fits a quarter-ounce of cannabis flower, a dry herb vape, a vape pen, a couple of loose bowl pieces for the bong, and more. To add to the value, it looks so finely made that I’m just fine leaving it on the coffee table when my in-laws come to visit knowing it looks beautiful and intentional on our rustic wood coffee table.

Rolling Tray

Like each of the Flavor Fix products, the rolling tray has a classic look that integrates well into most living room designs. It is made with locally sourced Canadian walnut and the size allows it to be easily stashed away when not in use. To ensure nothing comes off on your bud, the rolling tray is finished with an all-natural food safe finish. For those who prefer to keep their accessories at arm’s length, it looks nice on a side table with a candle or small vase. Functionally, the tray works great whether you’re rolling up on your lap or a table. The edges catch errant buds and it’s big enough to fit a grinder, papers, tips and whatever else you prefer to use.

Cutting Board

A fine wood cutting board is both a necessity and a luxury, especially the one in the Flavor Fix shop. It is a top sought-after item and rightfully so as it is made with rich bands of Walnut, Cherry, Maple, and Bloodwood with an all-natural, food-safe finish. It’s also designed with thoughtful touches like small feet that ensure it won’t slide around or wobble on any surface. We love using it for slicing lemons, limes, and other cocktail garnishes but it also works beautifully for a charcuterie spread to serve alongside evening drinks and tokes. These can be branded on the bottom for a subtle but impactful touch that is sure to leave an impression.

Flight Paddle

Having a flight paddle at the ready can truly bring the VIP experience home. It is a wonderful touch when entertaining a spirit-enthused friend or just while tasting whiskeys with a partner. As legal social use becomes more prominent and infused beverages get introduced to the market, it will be an ideal promotional product for such infusions. The paddle has a gorgeous live edge and is made with Canadian walnut. Like the other products, the flight paddle can be outfitted with a logo just above the handle.

Each of these products can be purchased directly from the Flavor Fix site for any cannabis and spirits enthusiast to use at home. But they are also valuable for advertising and marketing clients of Flavor Fix to build out customized promotions using the stash box, rolling tray, cutting board, flight paddle, and even special items that can be made just for one company. Luckily, the team at Flavor Fix has extensive experience in marketing spirits and are well versed in how to make a lasting impression on the right consumer base.

 

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In Maryland, Dispensaries Are Healthcare Settings And Still Require You Wear A Mask

6/14/2021

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This article was written by Meghan Thompson and originally published by Outlaw Report.

Last month, Maryland Governor Larry Hogan lifted the statewide mask mandate in Maryland with three exceptions: schools, public transportation, and healthcare settings.

This includes medical cannabis dispensaries. In Maryland, all dispensary visitors (regardless of their vaccination status) are still required to wear a mask while inside any cannabis storefront across the state. Maryland’s updated mask mandate states: “All persons in Maryland over the age of five (5) years old are required to wear a face covering when they are: obtaining healthcare services, including without limitation, in offices of physicians and dentists, hospitals, pharmacies, and laboratories.”

Medical dispensaries are considered healthcare settings and were deemed essential at the start of the pandemic in March 2020.

On May 21, the Maryland Medical Cannabis Commission released a bulletin stating “dispensaries must continue to require face coverings,” though masks are no longer required in cultivation and processing facilities.

While vaccinated people are not required to wear masks while indoors anymore in most public places, Maryland’s vaccination rate is still below 50% and many medical cannabis patients are at an increased risk of death or hospitalization due to COVID-19.

“It’s extremely important for people to continue wearing masks in dispensaries because it’s still a healthcare facility,” Jessica Morgan, a dispensary manager in Towson told The Outlaw Report. “Every day we see patients with immunocompromised systems, whether it be from an autoimmune disease or chemotherapy.”

“At least one to three patients a day are struggling with a compromised immune system,” Morgan said. “This makes them susceptible to things like a cold, let alone COVID-19.”

In fact, many of the qualifying conditions to receive a medical cannabis certification from a physician are also common comorbidities for COVID-19. This includes cancer, dementia, and substance use disorder—conditions that many patients use cannabis to treat that also put them at greater risk of hospitalization or death should they contract COVID-19, according to the Center for Disease Control (CDC).

Morgan also noted that there are many patients and dispensary employees without compromised immune systems who are using cannabis to treat underlying medical conditions that could be exacerbated by the stress of contracting COVID-19. This could include anything from chronic pain to anxiety, depression or post-traumatic stress disorder.

“[Dispensaries are a] medical facility, and you have to think about others who come in on their worst days who cannot afford to catch COVID-19,” Morgan said.

Existing COVID-19 restrictions vary in dispensaries across the U.S. An informal poll conducted by MJBizDaily of 163 cannabis retailers found that 50% still require masks and social distancing for customers in their stores. Conversely, 20% have no COVID-19 restrictions at all.

“You wouldn’t go see your friend on chemo without a mask—COVID or not—so you shouldn’t walk into a dispensary without one either,” Morgan said, “you have no idea whose life you could potentially be putting at risk.”

 

 

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Study: States With Legal Cannabis See Reduction in Workers’ Compensation Claims

6/14/2021

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Researchers at Temple University found about a 20% reduction in the probability that a person reports having any income from workers’ compensation following statewide cannabis legalization, the Philadelphia Inquirer reports. The study found a 7% reduction in states post medical cannabis legalization and 13.3% in medical cannabis states that provide employment protections for cannabis patients.

Professor Johanna Catherine Maclean, an economist who studies the impact of substance use on the labor market who authored the study, said the research focused on adults 40 to 62-years-old who self-reported workers’ compensation income. The study focused on workers’ compensation because the researchers “viewed it as one proxy for work capacity, which we define as the ability to work productively,” she said in an interview with the Inquirer.

“There’s also some literature from other economists that shows when you legalize marijuana either for medical or recreational use, we see changes in utilization of therapeutic substitutes, like opioids, in insurance claims data. That might mean, say, before you were using opioids to manage your chronic pain. But when we adopt a medical or recreational marijuana law, we see a reduction in prescriptions for refills for things like opioids.”—Maclean to the Inquirer

The researchers also found that non-fatal workplace injuries declined following recreational cannabis legalization.

Maclean added that fewer workers’ compensation claims likely means less workplace disruption as employees may have shorter—or no—work separation due to an injury and don’t require formal health care which helps employers reduce workers’ compensation-related costs.

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British Columbia Government Urges Cannabis Consumers to Use Legal Market

6/14/2021

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The British Columbia, Canada government is urging cannabis consumers to purchase legal cannabis after finding contaminants in confiscated unregulated cannabis, Marijuana Business Daily reports. The issues were detected when the province’s legalization and regulation secretariat ordered the testing of dried flower seized from illegal dispensaries in Vancouver.

According to the report, legal cannabis sales in Vancouver are the lowest in Canada.

Minister of Public Safety and Solicitor General Mike Farnworth told reporters last week that “the samples went to a federally licensed lab for testing, and the results are concerning.”

Farnworth indicated the tests found 24 distinct pesticides and “unacceptable levels of bacteria, fungi or heavy metals.” The testing was part of a pilot program by the BC Centre for Disease Control and the National Collaborating Centre for Environmental Health (NCCEH). Just three samples of the 24 samples would have been acceptable for the legal Canadian market and only two of those had no detectable pesticide residues.

Farnworth said many consumers think the cannabis found in the illegal dispensaries is grown in organic clean environments. “The reality is, what we’re finding— it’s not, he said in the report.

“And the best way to avoid that is to shop at a legal retail store, where people are abiding by the rules, the product is tested, they pay the proper licensing fee, they’ve invested money into the business legally.”—Farnworth via Marijuana Business Daily

He encouraged consumers to avoid the illicit market and shop at legal cannabis stores.

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Staten Island MTA Employee Sues Hemp Tea Company After Failed Drug Test

6/14/2021

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A former Staten Island, New York MTA bus driver is suing the makers of a weight loss tea after the product led to a failed drug test and subsequent demotion, according to an SI Live report. The former driver, Roy Hunter, filed his lawsuit against Michigan-based Total Life Changes over its raspberry flavored “Broad-Spectrum Hemp THC Tea Product,” which is advertised to assist in weight loss and contain zero percent THC.

Hunter was hired in 2012 as an MTA driver and last July failed a random drug test and was demoted to bus cleaner. As part of the demotion, he was subject to 64 drug tests over an eight-month period and passed each one. In April he sent individual tea packets for testing and found the product contained THC, which, he claims in the lawsuit, led to his positive drug test.

His attorney, Scott Richman, of Richman Law Firm PLLC, called the lawsuit “a classic case of a multi-million dollar company putting profits over people.”

“The misrepresentations on the packaging of the Total Life Changes tea product were clear, unequivocal, misleading, and with the sole intention to induce prospective purchasers to buy their product. … Now, instead of taking responsibility for what they did, Total Life Changes would rather take the position that these people ‘got what they paid for.’ We will not let that stand.” – Richman to SI Live

The lawsuit is filed in Brooklyn Federal Court.

The product is also subject to a class-action lawsuit over THC levels, which the lawsuit claims are “false, deceptive and/or misleading.” Total Life was also the recipient of a Federal Trade Commission warning letter in April 2020 for social media posts made by the company’s business representatives that “unlawfully advertise that certain products treat or prevent” COVID-19.

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