Rhode Island announced it will delay its long-awaited lottery to choose six more medical cannabis licensees, WPRI reports. The holding pattern comes after one of the applicants appealed their exclusion from the list of qualified applicants and is expected to remain in place until after August.
Complicating the issue further, the state’s plan to have a third-party administrator conduct the lottery failed after finding zero interest. Instead, the lottery will now be conducted by the Rhode Island Department of Business Regulation.
The license finalists were chosen by state regulators after a four-month review of 45 applications filed by 25 applicants — 41 made it to the lottery stage.
“We’re hopeful that we’ll have a final determination sometime in the month of July, which will allow us to flip the switch and turn the lights on for a lottery hopefully that first week in August.” — Matthew Santacroce, head of the Office of Cannabis Regulation, via WPRI
According to public record request documents, Atlas Enterprises Inc. filed the appeal that caused the delay. According to the report, the “notice of denial” says Atlas was denied entry into the lottery for not submitting proper zoning approval documents from Newport, Rhode Island, where there is a moratorium on cannabis retail operations. Additionally, the documents revealed that Atlas did not disclose that their Board Chair, former state Rep. Robert Flaherty, was also involved with a second lottery applicant, Ascend Rhode Island Compassion Center.
“Generally speaking, what we were looking for was completeness and demonstrated compliance with local zoning and real estate requirements,” Santacroce told WPRI.
The setback will delay the final licensing of new medical cannabis operators in the state until the final quarter of this year, according to the report. However, Santacroce is optimistic the new centers will open in late 2021 or early 2022, despite the delay.
“Depending on the turnkey readiness of whoever gets picked from the lottery,” he said, “I’m very confident and very hopeful that we’ll have at the very least a couple of these compassion centers opening their doors by the end of the calendar year to our patient population.”
The industry-leading cannabis business exposition CannaCon is returning to Detroit, Michigan this year for an in-person event from June 25-26, 2021.
Over the years, CannaCon has established itself as the premier destination for cannabis industry networking and professional insights, with unbridled opportunities for business-to-business networking on its exposition floor. And, with well over 200 exhibitors already registered, CannaCon Midwest is now set to be one of Detroit’s biggest in-person events since the pandemic.
Each CannaCon expo is uniquely catered to the needs of the local industry — the upcoming event will feature a brand-building seminar by the Pot Brothers at Law as well as a regulations/licensing-focused seminar by Andrew Brisbo, the Executive Director of the Michigan Marijuana Regulatory Agency. Other seminar subjects will cover advice for investment fundraising, RFID-based compliance tips, the hidden costs of constructing a cannabis cultivation facility, how technology is offsetting the cannabis industry’s climate impact, and more!
“CannaCon is very excited to be back in one of our team’s favorite cities,” said Angela Grelle, the Director of Marketing for CannaCon. “We have been putting on expos here since the very beginning of recreational legalization and it has been amazing to watch Michigan’s industry grow.”
Every CannaCon event neatly demonstrates how the cannabis industry encompasses a lot more than just licensed cultivators and dispensaries — the expo floor is host to many important ancillary companies including technology firms, security specialists, software designers, and advertising consultants.
Currently, you can get your two-day pass to the CannaCon Midwest seminars and exposition floor for just $175. The advanced ticket pricing period ends on June 24.
Register now to secure your spot at the biggest in-person cannabis industry networking event in over a year!
About CannaCon
CannaCon is dedicated to creating and strengthening lifelong partnerships within the emerging cannabis industry. It is our mission to provide a global B2B venue for cannabis businesses, marijuana entrepreneurs, investors and community partners to showcase industry products, people, innovations and technology. We are committed to cultivating business values within the cannabis industry through education and responsible community involvement.
Adult-use cannabis legalization in the U.S. has led so far to a combined total tax revenue of $7.9 billion in states that have approved the reforms, according to a Marijuana Policy Project report. Washington state, which launched adult-use sales in 2014, has seen the most cannabis-derived income with nearly $2.6 billion in revenues from sales, according to the analysis.
Colorado, which also launched sales in 2014, has taken in more than $1.5 billion and, as of April, the state’s public schools have received $404.5 million of the total revenue generated from adult-use cannabis sales in the state.
California, where adult-use sales began in 2018 despite being the first state to legalize cannabis for medical use, has collected about $2.1 billion from adult-use sales. The state saw a 62% revenue increase from cannabis sales from 2019 – about $638 million – to 2020 when revenues reached $1 billion for the first time.
Oregon, which launched adult-use sales in 2016, has garnered slightly more than $540 million over nearly six years of sales, which 40% of revenues being distributed to schools.
Nevada has generated $374 million from cannabis sales since they began in the state in 2017. In the first two months of 2021, the state had netted about one-fifth of the total tax revenues it saw in 2020.
Illinois, which launched adult-use sales six months after the Legislature approved the reforms, has already added nearly $295 million to its coffers from adult-use cannabis sales. In 2020 – the first year of sales – the state generated $174.9 million from sales and almost $120 million already this year.
Massachusetts, the first New England state to allow sales, despite being the second (after Maine) to approve the reforms, has gleaned more than $260 million from adult-use sales, which began in 2018. Through the first two months of this year, the state has already collected nearly half (about $64 million) of what it saw it collected in all of last year (about $118.5 million).
Michigan has reaped about $137 million from adult-use sales since 2019. The state Department of Treasury reported in March that nearly $10 million has been disbursed to municipalities and counties and around $11.6 million will be sent, this year, to the School Aid Fund for K-12 education and another $11.6 million to the Michigan Transportation Fund, once appropriated.
Alaska, the least populated of all the states to legalize adult-use sales, has garnered $78.2 million since the retail launch in 2016. The MPP notes that “a number of factors initially resulted in slower revenue generation than in some other states,” including the lack of dispensaries allowed under the state’s medical cannabis program, which limited the number of businesses that could transition to the adult-use market. The report also said that, due to a limited supply chain, “many stores closed for large stretches of January 2017 or operated with reduced hours.”
Maine has, so far, seen the lowest amount of revenue from adult-use sales, with just $1.7 million since last year. The rollout of retail sales, which voters approved in 2016, was marred by vetoes from former Republican Gov. Paul LePage and then slowed by the coronavirus pandemic.
So far this year, lawmakers in New York, New Mexico, and Virginia have approved the reforms, but sales have not commenced. During the 2020 election, voters in New Jersey, Arizona, Montana, and South Dakota approved adult-use sales; however, in South Dakota the amendment is being challenged in the state Supreme Court.
In Vermont, which legalized use, possession, and cultivation but not sales in 2018, an adult-use market is expected to open next year.
A cannabis industry social equity licensing bill on Wednesday passed the Illinois House and would add 110 new industry licenses through two lotteries that would prioritize applicants from communities most impacted by the War on Drugs, the Chicago Defender reports. As part of the qualifying criteria, one of the lotteries would give preference to individuals previously arrested or convicted of cannabis-related crimes.
State Rep. La Shawn K. Ford (D), told the Defender that the state’s licensing rollout was “like the War on Drugs,” having “disproportionately impacted communities of color.”
“We now have an opportunity to correct the missteps of the original lottery process by refocusing on the intent of the legalization bill. Instead of allowing the wealthy few to maintain control of this new industry, let’s give people in areas that have been left behind a real opportunity to start a local business that is owned and operated by members of the community.” – Ford to the Defender
The new licenses would be in addition to 75 previously approved licenses that were set to be awarded last year, but have been delayed due to lawsuits and issues with the scoring system, the report says.
“As expected, the cannabis industry has been and will continue to be very lucrative,” Ford said in the report. “It’s important as we continue to distribute licenses that we keep track of ownership data and ensure nobody is left behind. I’m hopeful that this proposal will put us on a more equitable path this year.”
A report last year found that none of the state’s cannabusinesses were majority-owned by a person of color.
Due to rising demand, Delaware is set to double the number of vertically integrated licensees in the state with three new medical cannabis business licenses, Marijuana Business Daily reports.
The three new licenses will cover four dispensary locations and must be veteran- or minority-owned. According to state numbers, Delaware’s medical cannabis sales more than doubled from $11 million in 2018 to over $27 million in 2020 (accompanied by complaints from patients of high prices and product shortages, the report notes), demonstrating the need to expand cannabis capacity. The state is forecasted to reach $37 million in medical cannabis sales in 2021.
“With new companies and new product lines coming out, we expect sales to jump considerably.” — Paul Hyland, Delaware’s medical marijuana director, via MJBizDaily
Despite the growing sales numbers, Delaware medical cannabis licensees are wary of a legislative proposal to legalize adult-use cannabis. In its current form, the bill would license 30 retail stores, 30 processors, and 60 producers, but medical cannabis license holders are alarmed because the legislation does not automatically include them in the retail license pool. Current licensees also argue that the large number of licenses will create a surplus of cannabis in the state.
Aaron Epstein, the Chief Operating Officer for Canntech Delaware — one of the state’s upcoming minority-owned cannabis companies — said the adult-use bill would “put us out of business before we even have a chance to open our doors.”
But Zoe Patchell, executive director of the Delaware Cannabis Advocacy Network, disagrees, telling Marijuana Business Daily that Delaware‘s medical cannabis businesses should apply for a license “like everyone else.”
“They want us to give them special privileges that would create an unfair advantage and undermine our social equity and small-business provisions,” Patchell said.
Pennsylvania Gov. Tom Wolf (D) has pardoned an ophthalmologist who served six months in jail in 2014 for growing cannabis for his sick wife before the state legalized the plant for medical use. Dr. Paul Ezell lost his ability to practice medicine as a result of his conviction.
At the time of his arrest, Ezell said he began growing cannabis to help his wife reduce the use of prescription opioids. The grow was discovered after someone reported Ezell after finding some plant clippings in the trash as the doctor was disassembling the operation.
According to a press release from Lt. Gov. John Fetterman’s (D) office, the pardon will allow Ezell, now 65, to return to his profession as an eye doctor.
“Here’s a doctor of 30 years who had not so much as a speeding ticket, and then his whole life is ruined for giving his wife medicine that’s now legal in Pennsylvania. This is a prime example of the destructive power of reefer madness. … He lost his wife, his career, everything. Today, Dr. Ezell can start to rebuild his life. Cases like his illustrate why we must end marijuana prohibition before it destroys one more life.” – Fetterman in a statement
Fetterman chairs the Pennsylvania Board of Pardons and is a proponent for cannabis law reforms.
The case of Ezell’s daughter, who also lost her nursing license due to the charges, is set to be heard by the pardon board next month.
Cannabis concentrates have proven to be one of the most rapidly-growing segments of the cannabis industry. Over the years, discoveries in cannabis extraction have largely driven industry expectations when it comes to determining a high-quality product — for example, the first CO2 extracts were praised as a replacement for butane-based products, while those same butane solvents had been raised above the handmade and bubble hash products from previous years.
Today, live resin is generally considered top-tier among solvent-based concentrates for its fresh-plant flavors and well-preserved terpene profiles. However, its solventless cousin in live rosin has recently earned an even bigger and better reputation among cannabis flavor aficionados. But despite there being genuine hype around each of these products — and despite sharing similarly fresh-frozen source material — there are important and significant differences between live resin and live rosin that we will highlight over the course of this article.
A brief history of cannabis extraction
As the popularity of cannabis concentrates grew, cannabis patients and entrepreneurs developed numerous new methods over the years of creating the extracts. This resulted in many products with wildly different viscosities and appearances, with different names to describe them such as wax, shatter, budder, and sauce.
But still, all of these products shared at least one characteristic: they were all made by dissolving cannabinoids from their source material through the use of a solvent — typically alcohol, butane, CO2, or ethanol — and subjecting them to high pressures and post-extraction solvent purging.
Mandarin Butter shatter from KushMasters (@kmlabs.co) in Boulder, CO
Live resin
Live resin has become nearly ubiquitous among solvent-based cannabis extracts. Named for its fresh, almost “living” flavor profile, it is made using freshly cut and frozen cannabis plants as its source material.
While the drying/curing process is well-established for cannabis flower, this process ultimately sheds many of the cannabis plant’s distinctive flavors and terpenes (often by more than 50%, according to some estimates). But by freezing the cannabis material freshly after harvest and keeping the material frozen during the entire extraction process, industry operators can preserve their crop’s terpene profile at its most defined moment. This carries certain advantages for cannabis operators beyond just the flavor and aromatic improvements — for one, it reduces production time by cutting out the multi-week curing process entirely. Additionally, this would also mean extra space for your production facility and/or grow site.
Researchers have also demonstrated that the best way to preserve cannabis materials for long-term storage is by freezing it.
The use of fresh-frozen material, however, does pose unique challenges. Not only does the material need to maintain its sub-zero temperatures throughout the extraction process, but live resin extracts can also only be made through hydrocarbon extraction. This is a complicated process that requires the use of a compliant C1D1 Extraction Facility (meaning it must be fully capable of housing and evacuating flammable or potential explosive gasses). And while that alone can be extremely cost-prohibitive, there are even more cost considerations in terms of supercritical extraction machines, employee expertise, and steep power requirements and other utilities.
But despite these difficulties, live resin is widely considered the top-tier solvent-based concentrate, particularly with the recent awareness and hype around complex terpene profiles and cannabis flavor preservation.
The rise of rosin
Moving away from solvent-based cannabis extracts, however, there also came cannabis rosin, which is a solventless extract that likewise rose to prominence alongside the legal cannabis industry. The earliest cannabis rosins were popularized through online communities of cannabis grower forums and social media platforms like YouTube. In those early days, connoisseurs would demonstrate in step-by-step video guides how to create extraordinarily clean and flavorful concentrates using just cannabis flower, wax paper, and a typical consumer hair straightener — no solvents necessary.
Aficionados had put together that all you really need to make a delightful cannabis rosin was high-quality flower and the ability to subject it to intense heat and pressure. Eventually, experts engineered specially-made rosin presses capable of fine-tuning and mass reproducing each batch of product. Today, there are dozens of purpose-made cannabis rosin presses that range from compact commercial models to the massive Longs Peak rosin press by PurePressure, which is capable of processing enormous amounts of material per day.
PurePressure Longs Peak rosin press
While solventless might seem simpler than other concentrates, some cannabis manufacturers are concerned that adding solventless concentrates to their portfolio might overly complicate their operations — but in reality, rosin is capable of matching literally any solvent-based concentrate in terms of appearances, viscosity, and potency (not to mention its ability to out-perform in flavor/aromatics). In fact, with only minimal preparations and practice, cannabis operators can easily add high-quality rosin SKUs to their portfolio to achieve even more versatility alongside their solvent-based products.
Solventless hash and live rosin SKUs by Eric Simpson (@simpsonsolventless)
In fact, one of the only disadvantages facing operators who specialize in solventless extracts is that they cannot remediate any lower-quality cannabis harvests into concentrates, as the pressing process actually carries over problematic issues such as mold or mildew (unlike other forms of extraction, which involve “blasting” the plant through a solvent).
As PurePressure’s marketing director Eric Vlosky puts it: “You can’t cheat in solventless — what you put in is what you get out.”
But while this is a drawback in one sense, there’s an upside to it as well, as many cannabis consumers want their experience to be as close to nature as possible — as close to the actual plant as they can get it — and the use of solvents will always carry that slight caveat as a potential (albeit hopefully negligible) contaminant. That fact alone can help bestow a reputation of quality to solventless cannabis brands.
How to make live rosin
Live rosin is made by putting one of the oldest and best-known forms of cannabis concentrates (bubble hash) through a rosin press. The entire process is lengthy but can be summed up in essentially three steps:
Harvesting the cannabis — the plants/source material should be freshly frozen immediately after harvest
Making the bubble hash — while this is a centuries-old process, modern hashmakers have perfected their methods of ice-washing and agitating the cannabis so as to break off and separate the plant material from its cannabinoid and terpene-rich trichomes
Pressing the hash into live rosin, which results in a delightfully flavorful and true-to-the-plant dabbing experience
As more and more operators make the pivot, solventless extraction equipment manufacturers like PurePressure have stepped up to provide specially designed hardware for safely mass-producing high quality ice water hash for the express purposes of pressing into live rosin. From their custom Bruteless hash-washing vessels to the Axis Trichome Separator, scaling up a commercial solventless cannabis operation has never been more possible.
Ice water hash being washed in a 44-gallon PurePressure Bruteless vessel with the Axis trichome separator at KushMasters (kmlabs.co)
Is live rosin worth it for cannabis operators?
Cannabis consumers are certainly catching up with the solventless craze: national sales of rosin concentrates have risen 202.4% from the first quarter of last year, according to data compiled by Headset (covered by MJBizDaily).
There are a lot of advantages to solventless cannabis extraction: because the process involves no “blasting” or supercritical extraction, employee expertise and more importantly safety is of slightly less concern. Additionally, while commercial rosin presses can certainly carry a hefty price tag, the costs still pale in comparison to that of the supercritical extraction process (and the hyper-compliant facilities that such an operation requires).
Ultimately, live rosin may not be the easiest method of extraction for cannabis manufacturers to pursue, but having at least one such solventless offering is guaranteed to at least catch the attention of cannabis flavor aficionados — and that can send an important message about your brand’s identity. And for some, that’s all it takes to turn a one-time customer into a life-long fan.
Maryland’s former Attorney General Douglas F. Gansler announced he is runnning for governor and embraced the legalization of adult-use cannabis in his first remarks as a candidate, according to a Maryland Matters report. Additionally, the two-term attorney general and former prosecuting attorney said that expungement should be included in any such legislation.
“Look, it’s time. It will allow us to regulate the product for safety [and] educate people on how to consume it responsibly.” — Douglas F. Gansler, in remarks announcing his candidacy
Joining an already crowded field, Gansler previously ran for the governorship in 2014 but lost after a number of campaign missteps, including being photographed at an underage party hosted by his son at a Delaware beach house.
Regardless of his re-branding challenges, Gansler’s stance on cannabis could play in his favor.
Although Maryland’s adult-use cannabis legislation stalled this year in committee, a super-majority of Marylanders support legalizing adult-use cannabis and the state recently passed the $1 billion milestone in medical cannabis sales.
Meanwhile, earlier this year, the Maryland legislature passed a bill prohibiting police from performing any “stop and frisk” searches based on cannabis odor.
Acting Solicitor General Elizabeth Prelogar on Monday filed a brief with the U.S. Supreme Court supporting decisions by lower courts that allow the Internal Revenue Service to investigate state-legal cannabis business for potential Section 280-E violations, Marijuana Business Daily reports.
Prelogar is the fourth-highest-ranking official in the U.S. Department of Justice.
“…The court of appeals merely explained, correctly, that the federal prohibition on trafficking marijuana is itself a sufficient basis for the IRS to investigate potential violations of Section 280E by petitioners, irrespective of state law. … The court of appeals was also plainly correct that the Controlled Substances Act would preempt Colorado law in the event of any conflict. Colorado may, of course, choose not to prohibit conduct that federal law prohibits. … Under the Supremacy Clause, however, Colorado may not authorize individuals or businesses to violate federal law.” – Prelogar in the May 24, 2020 brief
Section 280E of the federal tax code does not allow “any trade or business…that consists of trafficking controlled substances” to deduct normal business expenses, whether or not their business is approved by the state in which they operate.
In February, Prelogar filed a brief in another 280E case with the Supreme Court, brought by Denver, Colorado-based Standing Akimbo, making the same arguments, according to a Colorado Politics report.
“Marijuana is listed on Schedule I of the Controlled Substances Act … without any exception for ‘state-legal’ marijuana,” Prelogar wrote in the February 12 brief. “States may not countermand Congress’s decision to prohibit trafficking in marijuana. Such activity violates federal law even when it does not independently violate state law (and even when it is affirmatively permitted by state law).”
James D. Thorburn, the attorney for Standing Akimbo, told Colorado Politics that the filing shows the administration of President Joe Biden (D) is continuing to argue state-approved cannabis legalization is essentially legally void.
The Texas Senate on Tuesday approved a bill expanding the state’s medical cannabis program but it makes significant changes to the measure passed by the House last month, including dropping THC limits from 5% to 1%, the Dallas Morning News reports. Currently, only products containing .5% THC are allowed under the regime.
The Senate-passed proposal also removes patients with chronic pain who otherwise would be treated with opioids from the qualifying condition list – another change that had been approved by the lower chamber.
The Senate version does allow all patients with cancer and post-traumatic stress disorder access to the program.
Morris Denton, CEO of Texas Original Compassionate Cultivation, called removing patients with chronic pain “a step in the wrong direction” but was “pleased with the forward progress” of the legislation.
“Obviously, as big believers in the medicine that this plant can create, we’re disappointed to see they left out the millions of Texans suffering from chronic pain whose only real avenues are opioids, over-the-counter pain medicine or being forced to go to the illegal market in order to self medicate.” – Denton to the Morning News
The bill, which still requires House approval of the Senate-added amendments before moving to Republican Gov. Greg Abbot for his signature, also creates a medical cannabis research program under the purview of Texas Health and Human Services.
The bill increases, by far, the potential number of patients that will be allowed to access medical cannabis products in the state. When created in 2015, the program only included patients with intractable epilepsy. Two years later the program was expanded to include patients with terminal cancer, multiple sclerosis, and seizure disorders.
A Minnesota Grassroots Legalize Cannabis Party candidate for Congress is accusing a Republican strategist of encouraging him to launch his campaign in order to siphon votes from Democrats, Fox 9 reports. Kevin Ne Se Shores said Kip Christianson, who was on the payroll of the Republican National Committee, misrepresented himself when he recruited Shores to make his congressional bid.
Shores, a disabled military veteran suffering from Gulf War Illness, said Christianson made a seven-hour roundtrip to pick up his Affidavit of Candidacy and deliver it to the Secretary of State’s Office 45 minutes before the filing deadline and that the GOP operative paid the $300 filing fee. Shores would ultimately lose in a primary to Rae Hart Anderson, who twice ran for office, unsuccessfully, as a Republican.
The Minnesota Reformer first reported the scheme last June, noting that Republican strategists were recruiting independents and other Republicans to run on the Grassroots Legalize Cannabis Party or the Legal Marijuana Now Party to pull votes from Democrats. Other candidates include Robyn Smith, whose social media campaign focused on support for the GOP and then-President Donald Trump (R); Jason Hoschette, who has ties to Republican Senate aide Pat Kaluza; Tyler Becvar, whose Facebook page shows support for Trump; and Adam Charles Weeks, whose social media profile showed support for Trump, but he would later walk back those comments.
Weeks died in September 2020 – 42 days before the General Election – but still garnered 6% of the final tally.
Christenson told Fox 9 that he never misrepresented himself as a member of the Grassroots Legalize Cannabis Party but when asked about whether he told Shores he was a GOP strategist, he replied “no comment.” Christianson is a Harvard graduate, served as a Trump delegate to the 2016 Republican National Convention, a treasurer for the Minnesota Young Republicans, and a candidate tracker for the MN Jobs Coalition, and had an unsuccessful bid for Minnesota Party Co-Chair.
Flavor Fix is a unique publishing platform that educates consumers on how to combine cannabis and spirits while cross fading responsibly. The platform can be an essential marketing component for brands seeking to gain momentum in this space. The company was founded by ad executives who previously worked in alcohol and spirits and noticed cross-over in advertising challenges between the alcohol and cannabis industries.
According to founder Lavall Chichester, Flavor Fix has a mission of balance and its platform can be used as an advertising tool across both industries. Lavall is an SEO expert who was named in Ad Age’s 40 Under 40, which honors those shaping the world of media, marketing, and advertising. The company founder brings these skills to the strategy and execution of Flavor Fix and is working to influence how the world looks at the concept of the cross fade.
Before founding Flavor Fix, Lavall worked on advertising campaigns for Rémy Martin and Diageo brands. In his time marketing spirits, he dealt with ADA compliance and other challenges while following the rules of Google and Facebook — which are also both prominent hurdles for cannabis businesses. The regulatory complications led the team to run campaigns on publishing sites to advertise and build valuable organic SEO.
While running these alcohol campaigns, Lavall was approached to spend $50,000 promoting a CBD product on Google and Facebook, but he quickly realized this was a near-impossible feat. He experienced the same issues that many cannabis companies face, having ads flagged and removed for ‘violating terms of service.’ He turned to B2C cannabis publishing sites and noticed a lack when it came to focusing on the experience of responsibly enjoying alcoholic beverages alongside regulated cannabis products.
Ultimately, Flavor Fix was created to bring value to an audience who uses cannabis and spirits while also educating others on how to enjoy this combination without the infamously negative cross faded experience.
“CBD, cannabis and alcohol brands have a very difficult time advertising online. We built Flavor Fix as a destination to educate this audience and connect them with brands in the space, making it easier for customers to find and fall in love with your brand,” said Lavall Chichester. “This is especially true for cannabis-infused beverages because Flavor Fix will be one of the main ways people who like alcohol, will get introduced to the glorious infused brands that are being made. On top of all of this, we have taken on the duty to teach people how to consume alcohol and spirits in a responsible way.”
Cross Fade Responsibly is a Flavor Fix tagline that emphasizes balance, seeking quality products, and approaching the experience with respect. This brand mission can be seen in AVO, letters taken from the brand name itself. The A represents a little more, the V stands for a little less, and the O is neutral. The site pairs premium cannabis strains with cocktails and other adult beverages, and accompanies the pairings with music recommendations and suggestions for other experiences that would fit the mood. They are adamant that a cross fade shouldn’t make a person pass out, blackout, or get the spins — instead, getting cross faded should be a comfortable way to unwind after a long week or to enjoy a holiday with family.
The Flavor Fix publishing platform gives readers the tools to have fun and unique experiences while avoiding drinking or smoking too much. This is a crucial education-focused prong of the brand’s philosophy. The other arm of Flavor Fix specializes in executing multi-dimensional marketing campaigns that can help a company meet their brand awareness goals while still operating in compliance.
“One of the only ways you can reach this audience is either on social media through influencers and through hardcore, organic SEO powered by outstanding content.,” said Lavall.
The Flavor Fix site is optimized to rank for search engines and features strain pairings and recipes with dispensary and distillery directories. The publishing site works together with their vetted influencer network and branded luxury items to provide custom-tailored marketing programs that fit their client’s specific needs.
Those looking to reach the Flavor Fix audience can buy packages on the site, including things like content marketing or e-blasts. Or, clients can choose to be part of a campaign that the expert team builds for them. Lavall’s extensive background in SEO adds value to these campaigns because he will always look at the customer’s sites and help improve how they rank overall and help them also dominate their own geo-locations because “near me” searches for local dispensaries, distilleries and business have increase more than 300% since 2020. He guides those who need extra help with their site to his growth marketing company and helps to optimize their site for a reasonable price to ensure they get the most out of their Flavor Fix buy.
“We didn’t just want to create a publishing site, we wanted to add value in many different ways to our customers,” said Lavall. “Then in turn when we do campaigns for brands we can do custom rolling trays and custom wooden items for contests and giveaways.”
Customized ad buys with Flavor Fix can feature social media promotions with influencers who have a proven follower base with interest in the intersection of cannabis and spirits. They currently work with around 75 influencers in the space. They also offer high-quality, small-batch wooden products made with fine Canadian maple. These luxury stash boxes, flight paddles, cutting boards, and rolling trays can be branded and offered as giveaways that build brand awareness. The platform optimized for publishing quality content, valued influencers with proven results, and products that fit seamlessly into your home together build campaign possibilities that meet the goals of both cannabis and spirits brands.
Moving forward, Flavor Fix will continue publishing optimized content and growing the platform. Their phased approach will eventually include brewery and winery directories alongside dispensaries and distilleries. They also plan to test alcohol subscription boxes, create ‘Cocktails & Cannabis’ shirts, and write a recipe book. The company is also considering an app that will allow users to plug in a strain name and receive instant cocktail pairings to complement the flavor and effect. As they grow, they hope to be a launching point for people who want to try infused adult beverages as these novel products enter the market. The team is curious to see what interest is out there and is looking to begin fundraising as they grow alongside this blossoming confluence of responsible cannabis and alcohol use.
A bill to allow Missouri’s medical cannabis companies to deduct ordinary business expenses on their state tax returns is headed to Republican Gov. Mike Parson’s desk after near-unanimous legislative approval, St. Louis Public Radio reports.
The law is expected to ease the tax burden of licensed cannabis operators as they are not allowed to take such deductions on their federal filings due to cannabis’ Schedule I status.
The measure simply allows state-approved medical cannabis businesses to claim an income tax deduction in an amount equal to any expenditures which would otherwise be allowed as a federal income tax deduction.
David Smith, a certified public accountant who works with medical cannabis companies, told lawmakers during a hearing that existing law could mean effective tax rates for cannabusinesses of 70% or higher and “some companies may even be subject to income taxes while operating at a loss.”
Section 280E of the federal tax code does not allow “any trade or business…that consists of trafficking controlled substances” to deduct normal business expenses, whether or not their business is approved by the state.
During a Senate hearing last year, Ncholas Rinella, CEO of Hippos Cannabis, said the level of taxation “limits the industry’s ability to serve patients, supply jobs and reinvest in the communities” they serve.
The law is the first of its kind in the nation, despite Missouri only legalizing cannabis in 2018 – far behind the majority of states that have approved the reforms.
Increased cannabis legalization entails the growing need for managed IT services
It is no secret that the cannabis business is booming. So far in 2021, the states of New Jersey, New York, Virginia, and New Mexico have passed legislation to fully legalize the recreational use of marijuana. States such as Pennsylvania, Florida, Maryland, and many more have already legalized cannabis for medical use.
Aspiring business owners and entrepreneurs are taking full advantage of this — growing, processing, and selling their own products.
Owning any business of any kind, however, comes with a higher demand to protect all aspects of said business. Everything from finances, products, physical security, and cybersecurity constitutes an ever-growing need for cannabis business owners. Cannabis companies can reach out to IT companies for their help in maximizing the value in various aspects of their business.
Benefits of hiring IT service providers in cannabis
Having a reliable IT infrastructure in the cannabis business is an absolute must. Cannabis businesses that do not have an IT professional on staff can greatly benefit from hiring IT service providers. Moreover, even businesses that already have an IT professional on staff can still reap the benefits of hiring service providers to help support their IT infrastructure. As cannabis becomes increasingly available, the reliance on digital solutions, powerful cannabis CRMs, and knowledgeable professionals in the digital sphere will become more and more valuable.
Aspects such as surveillance, regulation compliance, and cybersecurity will be improved with the hiring of IT support, thus furthermore optimizing a business.
IT services for security and surveillance in the cannabis industry
Dispensaries and growing locations being robbed are all too evident. With the popularity of cannabis ever-increasing, its value is only growing, which makes businesses more at risk of security breaches.
The market value for legal cannabis is projected to reach $66.3 billion by the end of 2025.
In hiring dependable IT assistance, facilities that grow, process, and distribute cannabis products can better guard against the possibility of theft. The installation of security systems cameras, and key cards are just a few of the many ways that IT service providers could aid in the safekeeping of cannabis businesses.
Cannabis industry’s need for cybersecurity
Many times, cannabis businesses make the mistake of focusing on just physical security. Not only do cannabis companies require physical security to keep their location guarded. They also require reliable monitored cybersecurity. Valuable data such as financial information, passwords, and customer records are meant, often required to be kept safe. The cannabis industry is a high-risk cybercrime target due to factors such as its recent progressiveness, the value of the industry, and the current lack of IT support for many cannabis businesses.
The average cost of a data breach in the cannabis business is $3 million, mostly due to the cost of legal action, system remediation, and customer awareness. According to the national cybersecurity alliance, 60% of small businesses go out of business within 6 months following a security breach. This percentage could very easily be higher in the make it or break it competition often seen in states with newly passed pro-cannabis legislation. To avoid losing millions of dollars and potentially one’s business, there are many actions and precautions to be considered, including:
Security risk assessments
System hardening
Software and hardware updates
Data loss prevention
Dark web monitoring
IT support aiding in compliance with HIPAA laws
With its expanding popularity, many individuals are looking to medical marijuana as an option to help with injuries and other ailments. Keeping track and securing all of the patient data to comply with the Health Insurance Portability and Accountability Act (HIPAA) becomes very overwhelming.
In 2020, a leak of 85,000 dispensary files containing 30,000 customer files occurred. This leak exposed personally identifiable information and possibly the protected health information of medical cannabis users. While this is a violation of HIPAA laws, fines of up to $50,000 can be given for each record that is exposed. Solutions can be reached with the help of IT support such as:
Advanced user authentication
Encryption of data at rest and in motion
Intrusion detection and prevention
(new frontier data)
How we can maximize the value of our clients’ cannabis business
As always, we are dedicated to helping our clients reach their full potential in their business. In the cannabis industry, dependable IT support is pivotal in the success of a business. At Your Tech Team, we can provide services such as:
Installing and managing security systems, cameras, key cards, etc
Managing and maintaining POS systems
HIPAA and PCI compliance
Provide reliable cybersecurity, deterring cybercrimes
Design scalable IT infrastructure solutions
We look to provide affordable, reliable, and efficient IT solutions for all of our clients. As the cannabis industry grows ever upward, we look to help our clients grow along with it.
Licensed cannabis retailers in Massachusetts can now sell most consumer-ready hemp-derived products following new guidance from the Cannabis Control Commission, JD Supra reports. Under the rules, the products must be displayed in a dedicated section of the store.
The state’s cannabis retailers can now sell hemp seeds, oils, powders, proteins, hemp-derived clothing, and items made from hemp fiber, hemp building materials, and non-food CBD products that do not make any health claims or marketed as a dietary supplement unless it has received approval from the U.S. Food and Drug Administration.
The retailers cannot sell any food product with CBD, including animal feed, unprocessed hemp flower, or any CBD products that make therapeutic claims or marketed as a dietary supplement, unless FDA-approved.
Medical cannabis dispensaries are not allowed to sell the products, the guidance clarifies.
The products must be obtained from a licensed Massachusetts hemp processor and all products must carry a label including the language:
“This product was produced, packaged, and labeled by a Massachusetts hemp processor licensed by the Massachusetts Department of Agricultural Resources (MDAR). It is not regulated by the Massachusetts Cannabis Control Commission and the product may not be consistent with the requirements of M.G.L. c. 94G or 935 CMR 500.000. Consumers that have questions or concerns about this product are encouraged to contact the manufacturer, MDAR, or the appropriate state or federal agencies.”
Retailers are not required to track the products through the state’s seed-to-sale system, but a record of sale should be maintained, the report says.
The MDAR has also published a Q&A site for retailers interested in selling the newly-approved products.
The Texas Senate voted over the weekend to study the effectiveness of certain psychedelics in treating veterans with PTSD, according to Marijuana Moment.
Having originated in the Texas House, HB 1802 was amended and passed by the Senate in a 25-5 vote on Sunday and now heads back to the House for final approval. Senate lawmakers also approved a House bill to reduce penalties for the possession of cannabis concentrates.
If passed and ultimately signed into law by the governor, the psychedelics legislation would require the state to partner with Baylor College of Medicine and a military-focused treatment center to study the effectiveness and risks of psilocybin, MDMA, and ketamine in treating veterans with PTSD, according to the report.
Furthermore, the bill would mandate a clinical trial for veterans using psilocybin to treat PTSD and a deeper dive into current literature on the topic.
In an uncharacteristic show of support for drug policy liberalization, former Texas Gov. Rick Perry (R) reportedly championed the bill in the state legislature.
The cannabis concentrates bill seeks to reduce the penalty for possessing up to two ounces of concentrate from a felony to a Class B misdemeanor. If approved, it would be the first time since the 1970s that Texas reduces its penalties for cannabis possession.
Additionally, in a move to regulate Delta 8 THC, senators amended the bill to consider all forms of THC to calculate hemp potency in the state, according to the report.
Researchers at the University of California, San Diego have launched the first known randomized, double-blind, placebo-controlled, clinical trial to study whether cannabis is effective at treating acute migraines, La Jolla Light reports. There are about 20 participants currently enrolled in the study.
Dr. Nathaniel Schuster, a pain management specialist and headache neurologist at UC San Diego Health and a researcher at the university’s Center for Medicinal Cannabis Research, acknowledged that many people already self-treat their migraines – some with cannabis.
“Many patients who suffer from migraines have experienced them for many years but have never discussed them with their physicians. … Right now, when patients ask us if cannabis works for migraines, we do not have evidence-based data to answer that question.” – Schuster to the Light
The team hopes to enroll 90 participants to treat four types of migraines with four different treatments: THC, CBD, a combination, and a placebo. The study participants will use a vaporizer, which Schuster said, “may be more effective for those patients who have nausea or gastrointestinal issues with their migraines.”
To qualify for the study, patients must be 21-65-years-old, experience migraines every month, and must not be a regular cannabis or opioid user.
A 2017 study presented at the 3rd Congress of the European Academy of Neurology found a medical cannabis compound reduced migraine frequency by 40.4% and pain intensity by 43.5%.
A Washington State University study in 2019 found patients self-reported a reduction of migraine severity by 47.3% after using inhaled cannabis.
A study published last year by Migraine Buddy and Healint found 82% of migraine patients said cannabis provided them relief.
New York has joined the growing number of states to ban Delta-8 and Delta-10 THC after the Department of Health (DOH) issued hemp regulations last week clarifying that hemp-derived cannabinoid products may “not contain synthetic cannabinoids, or cannabinoids created through isomerization.”
The regulations also keep intact a proposed ban on smokable hemp – which was initially released last year – but the sale of hemp flower would be permitted as long as it is not marketed or branded as a smokable product.
“It is the mission of the (DOH) to protect, improve and promote the health, productivity and wellbeing of all New Yorkers, and the commitment to a smoke–free society is consistent with that mission,” the agency said in response to concerns about the smokable product ban raised in public comments on the regulations.
The new industry rules also set $1,000 application fees for hemp producers who seek to process cannabinoids and $500 application fees for those seeking to manufacture – rather than extract – hemp cannabinoids. Retailers will have to pay a $300 license fee per location.
The guidelines also require all hemp manufacturers to show evidence of a Good Manufacturing Practices audit under the new rules.
The DOH rules also require out-of-state manufacturers and distributors of cannabinoid hemp products to “adhere to the requirements of the program, to the extent they intend to sell products” in the state.
Regulators in Colorado, Vermont, and Alaska have also banned the hemp-derived cannabinoids, while Washington state has implemented a temporary ban on the products.
Greece’s Parliament last week passed a measure to legalize the cultivation and sale of medical cannabis, according to the Greek Reporter. The vote comes nearly four years after a decision by the health and justice ministers to downgrade cannabis from under the nation’s drug control guidelines, but those reforms did not include cultivation or sale.
Christos Kellas, a spokesperson for the New Democracy party, said the law will implement “an integrated framework for the development of the cannabis industry” in Greece and supporters “expect that there will be benefits for [the] economy through investments and the creation of new jobs.”
“[The bill offers] new options in the fields of agriculture and processing, but most importantly, to those who use the final products of medical cannabis. Medical marijuana can relieve their diseases and help them respond better to treatments, if this is deemed necessary by the treating physicians.” – Kellas to the Greek Reporter
The measure was approved 158-33; however, the SYRIZA party, which introduced the bill, abstained from the vote in protest because the rollcall was not carried out in person. The party’s protest also led the Movement for Change party to abstain claiming that holding SYRIZA-requested rollcall when that party does not participate in them undermines parliamentary procedures.
The Communist Party of Greece, Greek Solution, and MeRA 25, all rejected the proposal.
“We run to restore our communities that are devastated by the racially motivated War on Drugs,” said Saskia VannJames. Activists from a Massachusetts-based local nonprofit, MRCC, will run the virtual 5k run, ‘Restore Our Communities’ continuing their annual tradition of cannabis consumers, previously as part of the Cambridge 5k, running to raise awareness for their communities.
Pre-pandemic life, MRCC consumers ran in the Cambridge 5k publicized to beer drinkers, the annual race which runs through East Cambridge and Inman Square, draws a crowd of mostly 25- to 34-year-olds with a slogan of “We run for freedom and local beer.”
But the cooperatively ran nonprofit Massachusetts Recreational Consumer Council (MRCC), wants to switch up this year’s focus with a virtual run focusing on their communities.
“We run to support transformative justice for our communities still drowning from the War on Drugs and break the ‘lazy stoner’ stigma as zero funds from cannabis tax revenue have gone towards restorative justice and the racial disparity between black vs white MA consumers has only increased since legalization and decriminalization,” said Saskia VannJames, Lobbyist of MRCC.
MRCC is also running to bring awareness to Senate Bill H.2119 filed by Representative Liz Miranda to further support that substance abuse is a public health issue, not a criminal one, and for people with possession to be met with a public health screening or fine, instead of prison.
“As cannabis consumers who advocate for responsible consumption, we are acutely aware of the need to treat substance abuse,” VannJames said.
MEDIA CONTACT
Saskia VannJames, lobbyist
saskia@massreccouncil.com
617-221-6397 (cell)
Montana Gov. Greg Gianforte (R) last week signed the bill to implement the state’s voter-approved adult-use cannabis law, KTVH reports. The measure was approved by the Legislature last month.
The legislation allows only the state’s current medical cannabis operators to obtain adult-use retail license for the first 18 months of sales, which are expected January 1, 2022. Recreational cannabis sales will not immediately commence in counties where voters rejected the reforms – instead, localities will have to hold elections to opt into sales. Counties where the reforms were approved will automatically opted in and would require a local election to opt out. Counties can also hold elections to implement a 3% local tax on cannabis sales.
The bill signed by Gianforte maintains a 20% tax on retail cannabis sales, directing up to $6 million annually to a fund for mental health and substance abuse treatment, known as the “HEART Fund.”
“Since January, we’ve been focused on implementing the will of Montana voters in a safe, responsible, and appropriately regulated manner. House Bill 701 accomplishes this. From the start, I’ve been clear that we need to bring more resources to bear to combat the drug epidemic that’s devastating our communities. Funding a full continuum of substance abuse prevention and treatment programs for communities, the HEART Fund will offer new supports to Montanans who want to get clean, sober, and healthy.” – Gianforte via KTVH
Under the measure, Montanans will be allowed to cultivate four plants per household – two mature and two immature per person. It also includes expungement provisions for crimes now legal under the new law and provides each of the state’s native American tribes one recreational license each.
After the Mississippi Supreme Court threw out the state’s successful medical cannabis legalization initiative I-65 last week, deeming the voter-approved measure “unconstitutional” on the grounds that the state’s ballot initiative process is flawed, the Department of Health said it is stopping program development. The agency said it would help the legislature, which failed to pass a replacement bill this session, to develop a new “statutory” program instead, WLBT reports.
But the sudden halt has put Mississippi‘s emerging medical cannabis industry in jeopardy by stalling millions of investment dollars, according to a Mississippi Today report.
Companies like Colorado-based Grow Generation and Southern Sky Brands have stopped plans to lease land and build new facilities, delaying millions of investment dollars in the Deep South state’s economy. Quentin Whitwell, who owns a testing laboratory in Marshall County and is waiting to hire employees, told Mississippi Today, “Tens of millions of dollars have already been spent in anticipation of the program and hundreds of millions of dollars have been raised. The state stands to lose one of its highest GDP producing industries because of a politically driven court decision.”
Supporters of I-65 — the state’s successful but overturned medical cannabis initiative — including Ken Newburger, executive director of the Mississippi Medical Marijuana Association (MMMA), are requesting a special legislative session to pass a replacement bill.
“This is not only an affront to voters, but to patients and to the businesses and people who were investing in Mississippi, ready to open in Mississippi. They’re all, at worst, at a loss and, at best, a time lag.” — Newburger, via Mississippi Today
Cindy Ayers-Elliott — the owner of Footprint Farms, an urban farm in Jackson — has continued to plan for the eventual arrival of medical cannabis. She believes that the business of cannabis will help raise Mississippi’s communities of color.
“It’s a clear pathway as an economic engine to help create entrepreneurs, more business owners, more opportunities for a new caliber of training for our workforce, so we can have a livable wage in this state. Something is wrong with the jobs we have here and we continue to repress opportunities,” Ayers-Elliott said in the report.
A bill to ban the sale of psychoactive cannabinoids synthesized from hemp – such as Delta-8 THC – at shops not licensed as cannabis retailers in Michigan is headed to the House after passing the Committee on Regulatory Reform, MLive reports.
The bill expands the definition of cannabis to include THC “regardless of whether it is artificially or naturally derived” and put regulation of the cannabinoids under the state’s Marijuana Regulatory Agency.
Currently, the products can be found at some traditional retailers in the state, such as convenience stores.
Republican state Rep. Pat Outman said the unregulated cannabinoids remind him of other “sketchy substances that are working their way into gas stations and other retail places” and that there are “no consumer protections or any sort of regulatory structure” for the products.
Dave Crabill, a spokesman for trade group iHemp Michigan, said hemp that can be used for Delta-8 has “the highest value right now” for producers.
“Everyone that is in the market is going in understanding that it’s a short-lived game that makes some profits in the meantime.” – Crabill to MLive
Under the proposal, hemp-derived THC products will still be allowed to be produced and sold in the state, but only by individuals and shops licensed by state cannabis regulators.
Last week, Colorado regulators banned the compounds from state-licensed cannabis dispensaries, dietary supplements, and cosmetics. Other states with legalized cannabis, such as Alaska and Vermont, have banned the cannabinoids, while lawmakers in Illinois and Oregon are considering their own prohibition on the products. Washington state has implemented a temporary ban on both Delta-8 and Delta-10.
If the Michigan House approves the measure, it would still require approval from the Senate and Gov. Gretchen Whitmer (D) to become law.
Colorado Gov. Jared Polis (D) signed a bill on Thursday increasing cannabis possession limits in the state from one ounce to two and expanding criminal justice reforms, including streamlining the records-sealing process and eligibility for other cannabis offenses, Western Slope Now reports.
The measure adds possession to the list of offenses that can be sealed without notification of the prosecuting district attorney, which is expected to make the process less time-consuming and expensive while increasing record-sealing for financially challenged individuals.
The new law also extends record-sealing eligibility to those convicted of a Class C felony for cultivation.
During the signing ceremony, Polis described the bill as “very exciting.”
“Because for far too long the consequences for people who had a personal amount of cannabis – while before it had been legalized – still have a long shadow on them. So for doing something that is fully legal today, they might have something on their record – and of course that is disproportionately people of color – that might get in the way of them getting loans or leases or licenses or jobs or mortgages or many other things. … So with this bill the General Assembly … raises the possession limit to two ounces. Now we will be able to look at using that pardon authority, which we plan to do.” – Polis, during the May 20, 2021 signing ceremony
The governor added that several law enforcement agencies, including the Colorado Bureau of Investigation, Department of Public Safety, worked on the bill alongside lawmakers.
