The South Dakota Supreme Court on Wednesday heard arguments in the challenge to the voter-approved ballot initiative to legalize cannabis in the state, the Brookings Register reports. Lawyers for the plaintiffs argued that the constitutional amendment violates the one-subject rule for initiatives and that the law would elevate the Department of Revenue to a fourth branch of government.
In February, Circuit Judge Christina Klinger ruled in favor of the plaintiffs and struck down the reforms. She determined that the amendment violated the one-issue clause associated with constitutional amendment ballot questions.
Brendan Johnson, an attorney representing South Dakotans for Better Marijuana Laws and other activists, argued that while the amendment was lengthy, it does not mean it should be disqualified and that there would be “damage” if the state’s highest court “literally throws out 417,000 votes that were cast on a piece of legislation,” according to the report.
Republican Gov. Kristi Noem has strongly opposed the measure and in an executive order issued in January the governor said the plaintiffs in the case – Highway Patrol Superintendent Col. Rick Miller and Pennington County Sheriff Kevin Thom – had standing to sue over the amendment because they are acting on her behalf.
Noem applauded the Circuit Court decision as protecting and safeguarding the state’s constitution. She said at the time she was “confident” the state’s highest court would come to the same conclusion as the lower court.
The measure was approved by 54% of voters during the 2020 General Election and was set to take effect July 1. The court could strike down the law entirely, keep parts of it that it determines do not violate the one-issue rule, or dismiss the lawsuit outright.
The Washington State Liquor and Cannabis Board (WSLCB) issued a policy statement this week to clarify that neither Delta-8 THC products nor the conversion of CBD, hemp products, or Delta-9 THC to Delta-8 THC, or any other cannabinoid, are currently allowed under Washington law.
In their statement, the LCB said it is aware of edibles and concentrates in Washington’s cannabis market that contain Delta-8 THC and has confirmed the presence of Delta-8 THC products in markets outside of their jurisdiction. According to the statement, the controlled substances section of the Revised Code of Washington (RCW) indeed regulates “cis – or trans tetrahydrocannabinol” and their optical isomers.
Regulators additionally cited the RCW covering unfair business practices and said, “It is an unfair or deceptive practice … for any person or entity to distribute … or sell to a purchaser any product that contains any amount of any synthetic cannabinoid.”
“For these reasons, delta-8 THC, as well as derivatives, extracts, cannabinoids, isomers, and CBD isolate from hemp or other sources that are genetically or chemically altered into compounds may not be produced or processed in LCB licensed facilities, and may not be sold in licensed marijuana retail stores.” — WSLCB policy statement excerpt
In the statement, the WSLCB raises other concerns about unnatural chemicals produced during Delta-8 THC synthesis, lacking concentration and potency thresholds, and a shortage of labs capable of testing for the cannabinoid. Despite their ban on “genetically or chemically” derived Delta-8, however, regulators said they will allow “cultivated” Delta-8 THC, seeming to carve out an exception for the cannabinoid if produced naturally by the cannabis plant.
Washington joins a growing list of states that have enacted or clarified cannabis industry rules related to the manufacturing and sale of Delta-8 THC products.
A lawsuit filed by Oklahoma medical cannabis businesses has forced the state to put on hold the rollout of the seed-to-sale tracking program over claims the system would allow a single private business a monopoly, News On 6 reports. The state has tabbed Florida-based Metrc to run the system.
The tracking system was supposed to start today but on Thursday a judge issued a temporary restraining order against rolling out the program, which will remain in effect until the next hearing on June 29.
Attorney Ron Durbin, representing the state’s medical cannabis operators in the lawsuit, said that the plaintiffs “don’t have an issue with the seed-to-sell tracking program” but rather “an issue with the manner in which the state has adopted this one.”
“They are at least taking this seriously that they are going to look at this issue and that this needs to be something that is more and focused on the entire state.” – Durbin to News On 6
Brandon Rust, owner of Majestic Craft Cannabis, said he would like to see Metrc pushed out of Oklahoma and that too much money would be diverted to the out-of-state firm.
“This is really important that we fight back,” he said in the report. “We need the funds to stay in Oklahoma this needs to stay for the people.”
The Oklahoma Medical Marijuana Authority has not commented on the lawsuit; however, director Kelly Williams told News 4 earlier this month, prior to the filing of the legal challenge, that the seed-to-sale system would help “protect patient safety.”
Tobacco giant Phillip Morris — the international firm behind Marlboro-brand cigarettes — is warming up to the idea of entering the cannabis industry with what would likely be smoke-free cannabis products, according to a Bloomberg report.
In a recent interview, Phillip Morris’ CEO Andre Calantzopoulos said they are weighing the potential of a future cannabinoid-based offering. Specifically, the company is currently looking at cannabis’s efficacy/toxicity and is weighing the differences between pharmaceutical and consumer cannabis products. However, the still-nascent market’s lack of regulations has kept the company in only the planning stage, he said.
“We are doing all this work and will determine one day what avenues to pursue. But our priority is what we’re doing with our smoke-free products, and that’s where I would stay on cannabis.” — Calantzopoulos, in an interview with Bloomberg News
Phillip Morris announced a new “Beyond Nicotine” strategy earlier this year that will involve botanical-based products and a pivot away from cigarettes and smoking in general; they also teased the idea of sleep aid products, as well as offerings to promote calm and/or boosts of energy, during a February meeting of investors.
The Marlboro-maker would not be the first Big Tobacco firm to dabble in the cannabis space: earlier this year, British American Tobacco Chief Marketing Officer Kingsley Wheaton called CBD “an exciting growth area” for the company. And in 2018, Altria Group Inc. — the U.S.-based distributor of Marlboro cigarettes — invested a whopping $1.8 billion into The Cronos Group, a Canada-based cannabinoid producer and manufacturer.
The Texas House on Wednesday granted approval to House Bill 1535, which seeks to expand the state’s limited medical cannabis program to include chronic pain patients, cancer patients, and people with PTSD, the Texas Tribune reports. The proposal also seeks to raise the THC limit for cannabis products in the program from 0.5% to 5% and would allow the Department of State Health Services to adopt new qualifying conditions for the program rather than relying on lawmakers to expand eligibility through the passage of new state laws.
The proposal is sponsored by Rep. Stephanie Klick (R-Fort Worth), who authored Texas’ original medical cannabis legislation in 2015. However, the current structure has been characterized by many advocates as a “medical CBD” program, not a medical cannabis program, and it has been made all but obsolete following the federal legalization of hemp and subsequent national proliferation of hemp-based CBD products.
Heather Fazio, Director of Texans for Responsible Marijuana Policy, told the Tribune that the increased THC limit is “a step in the right direction,” but she still called it an “incredibly restrictive cap.”
“Low levels of THC will work for some people but it doesn’t work for others. And so what we think is that doctors need to be the ones making these decisions, not lawmakers.” — Fazio, via the Tribune
The bill heads next to the Senate for consideration.
The Philadelphia, Pennsylvania City Council has passed a measure to prohibit pre-employment drug screening for cannabis for most of the businesses in the city, according to a Patch.com report. Drug testing is still permitted for safety-sensitive positions such as law enforcement, childcare workers, those who oversee medical patients, and “any position in which the employee could significantly impact the health or safety of other employees or members of the public.”
Employees who are federally mandated to undergo pre-employment drug screenings are also exempt from the legislation. The bill also doesn’t prevent union employees from drug tests if it’s included in their collective bargaining agreements.
The bill, which was approved 15-1, “prohibits employers from requiring prospective employees to undergo testing for the presence of marijuana as a condition of employment, under certain terms and conditions.”
Councilmember Derek Green, the bill’s sponsor, noted prior to the vote last week that medical cannabis is legal in the state.
“We’re using pre-employment testing for a product that is being recommended by physicians, for individuals within the city of Philadelphia, that’s authorized for them to be used. That seems very contradictory.” – Green to the Philadelphia Inquirer
In 2019, Nevada became the first state to ban most employers from drug testing applicants for cannabis use during pre-employment. Washington, DC, Atlanta, Georgia, and New York City have also moved to limit employers’ ability to test most employees for off-the-clock cannabis use, according to Pre-Employ.com
Mayor Jim Kenney is expected to sign the bill into law, according to the Inquirer, and it would take effect January 1.
Syracuse University is partnering with cannabis education provider Green Flower on an industry certificate program, which will include three eight-week, fully online classes. The program will cover the Business of Cannabis, Agriculture and Horticulture, Law and Policy, and Healthcare and Medicine.
The announcement comes about a month after lawmakers passed, and Gov. Andrew Cuomo (D) signed, cannabis legalization reforms.
Michael Frasciello, dean of University College, said the “new market-sensitive certificates” represent the university’s “role in supporting growth-oriented economic initiatives in New York state.”
University College is the academic college of continuing education and professional studies at Syracuse University. These certificates are meant to complement existing credentials and advance the knowledge and practice of cannabis for professionals across multiple sectors, the University said in a press release.
Green Flower has also partnered with Florida Atlantic University on a six-month, non-credit certificate program. Its other academic partners include Northern Michigan University, the University of California at Riverside, the University of San Diego, Mount Aloysius College, Northwest Missouri State University, Western Washington University and St. Joseph’s University according to a University Business report.
“We saw the commitment by the university of expanding offerings for working adults and lifelong learners as an obvious sign that the university wants to serve all types of students in every stage of their growth and careers.” – Daniel Kalef, Green Flower vice president of higher education, in a statement.
“With the new legalization of cannabis in New York and neighboring states, cannabis knowledge and education will be in high demand and extremely popular as people begin to navigate the legal cannabis landscape and find ways to be a part of the predicted record growth,” he said.
There are at least six financial institutions serving Massachusetts’ cannabis industry – double the number from just three years ago, MassLive reports. The new banking institutions include Eastern Bank, which is taking over Century and its cannabis division, and Avidia Bank, but Cannabis Control Commission Chair Steven Hoffman declined to name the third.
“I continue to have conversations … with new banks who are starting due diligence around entering the industry. We will continue to see new entrants.” – Hoffman to MassLive
In 2018, just Century, BayCoast Bank, and GFA Federal Credit Union served cannabis clients. Hoffman noted that he knows that, given federal law, “any bank that is servicing the cannabis business is taking some risk” but that he is “grateful for those who have stepped up because they have made an incredible contribution to public safety.”
Last week, the U.S. House of Representatives passed – for the second time in as many sessions – the SAFE Banking Act which would remove that risk from the equation for financial institutions as it would explicitly allow state-approved cannabusinesses to access financial services.
That bill was squashed last session by the then-Republican-led Senate.
Gary Vierra, senior vice president and chief risk officer for BayCoast, said some of its clients are “looking for a lending relationship.”
“With the risk of the industry, there is a lot of restrictions in the space. Our commercial lending group underwrites,” he said to MassLive. “We require the relationship be with us so we can oversee it from a compliance standpoint as well.”
Last month, the federal Financial Crimes Enforcement Network (FinCEN) reported that, as of November 2020, 515 banks and 169 credit unions served the cannabis industry nationwide. The number of banks and credit unions had initially fallen from November 2019 to December 2020.
In this episode of Fresh Cut, host Cara Wietstock meets with Veronica Castillo, also known as Vee, who is a contributor to numerous cannabis industry publications including Ganjapreneur, as well as the founder of the Traveling Vegan Cannabis Writer Blog. For her blog, Vee takes onsite assignments at cannabis businesses all around the country — allowing her to experience their operations first-hand and share their knowledge and expertise with the world. Cara and Vee also discuss plant-based living, from practicing veganism to microdosing hallucinogenic mushrooms.
To learn more about Vee and read about where she’s headed next, visit her website!
Lawmakers in Louisiana’s House Administration of Criminal Justice Committee voted 7-5 yesterday in favor of advancing House Bill 524, the state’s adult-use cannabis legalization proposal.
The bill now advances to the House floor for consideration although it is expected to face heavy opposition in the Republican-controlled body. If approved there, it would face further opposition in the Senate and then potentially from Gov. John Bel Edwards (D), who has said he supports medical cannabis but opposes adult-use legalization.
“As I almost always do, I’ll take a bill as it arrives on my desk and see what it contains. I’m not going to speculate now on that. But I do have great interest in that bill and what it says especially if it does make it up to the fourth floor.” — Gov. Edwards, in a statement on Tuesday, via The Advocate
The bill originally would have put the legalization question to voters as a November 2022 referendum and then decriminalized cannabis if voters approved the reforms, but the primary sponsor Rep. Richard Nelson (R) later shifted away from that strategy. The now-updated legislation instead would allow municipalities to opt out of the industry at the local level.
Despite many lawmakers’ opposition, a two-thirds majority of Louisiana voters support legalizing adult-use cannabis, according to a recent poll.
Committee members yesterday also advanced cannabis decriminalization legislation in a 6-5 vote that — like the aforementioned voter referendum plan — would only take effect if lawmakers first approve a plan to legalize and regulate adult-use cannabis.
The Vermont Agency of Agriculture, Farms, and Markets (AAFM) informed all registered hemp cultivators that Delta-8 THC products are not regarded as legal hemp products in an email sent out last Friday, April 23.
With this statute, Vermont joins 12 other states that have categorized the manufacturing and sale of Delta-8 THC products as illegal under state law; Delta-8 THC has also been banned in Alaska, Arizona, Arkansas, Colorado, Delaware, Idaho, Iowa, Mississippi, Montana, Rhode Island, and Utah.
On their website, Vermont AAFM clarifies the state’s position further by acknowledging that hemp plants naturally produce Delta-8 THC in trace amounts. However, products with intoxicating levels of the cannabinoid are created using isomerization, which synthetically converts CBD to THC.
The Vermont Hemp Rules state that, “A processor shall not use synthetic cannabinoids in the production of any hemp product or hemp-infused product” (6.3). With this rule, the manufacturing, labeling, or sale of any Delta-8 product in the state of Vermont would violate state law. As such, anyone who distributes, uses, or possesses one of these products may face criminal penalties in the state.
Many CBD retailers have seen great financial gains due to the recent proliferation of Delta-8 throughout the states. This clarification may heavily impact their newfound revenues.
Meanwhile, the hemp industry in Alabama recently praised lawmakers there after they pulled an amendment proposal that would have categorized Delta-8 THC and Delta-10 THC as controlled substances.
Editor’s note: A previous version of this article incorrectly stated that Kentucky was among the states that have banned Delta-8 THC products.
40 months after its 2017 launch, Maryland’s medical cannabis market has reached the milestone of $1 billion in sales, the Baltimore Business Journal reports.
Quarterly sales have steadily grown from year to year in Maryland, with sales nearly doubling from $60.5 million in 2019 to $115 million in 2020. This year alone, dispensaries have raked in $135 million in the first three months, setting a pace to reach $500 million by the end of the year, according to the report.
Maryland Medical Cannabis Commission (MMCC) Executive Director William Tilburg said he believes the increased number of medical cannabis patients and dispensaries have led to the growing sales figures (registered cannabis patients in Maryland grew from 87,019 to 123,376 from December 2019 to December 2020). Those impressive growth numbers were followed by another 1,959 patients signing up for medical cannabis in January, bringing Maryland’s total patient number to 125,335. Additionally, dispensary numbers have increased by about 10 percent over that same time period.
Tilburg said he believes the next billion will come much faster due to Maryland’s likely next step of legalizing adult-use cannabis sales.
Although Maryland failed to pass adult-use reforms this session, the state is nonetheless predicted to follow in the footsteps of nearby New York, New Jersey, and Virginia with a new pass on the reforms next year. If Maryland passes adult-use cannabis, cannabis market research firm BDS Analytics predicts the state could reach its next billion in sales by 2024, with recreational sales accounting for two-thirds of the total, according to the report.
Lawmakers in Minnesota’s House Public Safety and Criminal Justice Reform Finance and Policy Committee advanced the state’s cannabis legalization proposal in an 11-7 vote on Tuesday, Marijuana Moment reports. It was the ninth House committee so far to advance the proposal along its path to the full House floor.
The bill — sponsored by House Majority Leader Ryan Winkler (D), Speaker Melissa Hortman (D), and others — seeks to legalize the possession and regulated sale of cannabis products for adults aged 21 or older and would allow adults to grow up to eight cannabis plants (four mature and four immature) at home.
“Our effort as a society and as a state to use the criminal justice system to ban, prohibit and criminalize cannabis is a public policy failure. As a public safety and criminal justice matter, cannabis prohibition has had a disproportionate effect on communities of color, especially Black Minnesotans. Our [current] policy is a failure and it creates harm. This bill is about correcting that harm of cannabis prohibition using the criminal justice system.” — Winkler, in a statement before the vote
The committee added several amendments to the bill, according to the report, including one that clarifies a person caught possessing cannabis in excess of the personal possession limit of 1.5 ounces would face lower penalties if said cannabis product has a legal source (as opposed to an illegal/unregulated source). Another amendment adds language to the bill’s expungement provision that calls on courts to automatically vacate and dismiss records for low-level possession cases.
The proposal now moves to the House Health Finance and Policy Committee.
If the bill is ultimately approved by the House, it is expected to face steep opposition in the Republican-controlled Senate.
Three members of Congress have sent a letter to the executive director of the Washington, D.C.-based U.S. Botanic Garden seeking to have hemp plants on display. The letter was sent by Democratic Reps. Eleanor Holmes Norton (DC), Barbara Lee (CA), and Earl Blumenauer (OR).
If approved, it would be the first time the Botanic Garden would display cannabis in its collection.
“Hemp has a long history of cultivation in the U.S. Hemp was grown by most of the Founders, and in 2018, George Washington’s Mount Vernon Estate harvested its first hemp crop since 1799. All ships in every war prior to World War II had ropes and sails made from hemp grown in the U.S. Until the Marijuana Tax Act of 1937, which was found to be unconstitutional in 1969, hemp was a major agricultural commodity in the U.S. Given that hemp is legal and enjoys national, bipartisan support, now is an appropriate time for the Botanic Garden to display hemp plants.” – Reps. Norton, Lee, and Blumenauer in the April 20 letter
Blumenauer is one of the founding members of the Congressional Cannabis Caucus and Lee joined the group during the 116th Congress after Jared Polis left Congress following his successful bid for governor of Colorado.
The letter notes that hemp was federally legalized in 2018 following the passage of the Farm Bill.
“The market has grown exponentially since the implementation of the pilot programs and some expect the market to reach $26.6 billion by 2025,” the letter states, noting the differences between industrial hemp and THC-rich cannabis – which remains federally outlawed.
The representatives have asked for a response to the request by May 4.
At least two New York Native American tribes are looking to get into the state’s cannabis industry following the legislature-approved reforms last month, Syracuse.com reports. Other New York-based Native American Nations have not released statements on their post-legalization plans.
Long Island’s Shinnecock Indian Nation plans to break ground on a cannabis facility in the next few weeks – with hopes of rolling out sales later this year – while the Saint Regis Mohawks are considering an ordinance to allow sales on its territory in Franklin County.
New York government officials have indicated they do not anticipate sales until next year.
The Saint Regis Mohawk Tribe recently sent cease and desist orders to unlicensed and unregulated cannabis dispensaries operating in its jurisdiction, the Plattsburgh Press-Republican reports. Until the tribe approves an ordinance, cannabis sales remain a violation of tribal law, the Nation said in a statement. Officials also urged residents “to refrain from purchasing any goods from these unregulated establishments for their own safety.”
Other New York tribes have not yet indicated their plans following broad legalization in the state. Central New York’s Oneida Indian Nation Vice President for Communications, Joel Barkin, told Syracuse.com that the tribe is “studying the idea.”
The Seneca Nation of Indians President Rickey Armstrong Sr. told Buffalo’s WKBW in 2019 that the tribe is “like a snake ready to strike” on legal cannabis opportunities and that the Tribal Council would “pull the trigger whenever they feel appropriate.” The Seneca Nation is based in Western New York.
In all, there are eight federally recognized tribes in the state.
You may not know them by name, but you’ve likely seen their work in that trendy coffee shop, that modern hotel, or that cool craft brewery everyone is talking about. Rarely does a sign make you smile, but Oat Foundry’s mechanical Split Flap message board has been pleasing spectators around the world since its launch.
In this Q&A, we learn from Mark Kuhn, CEO of Oat Foundry, about why their acclaimed creative engineering team is anything but a sign company and how their experience building systems has earned them a reputation as a Swiss Army Knife for manufacturing and production automation. This interview covers the growing use of Split Flaps for dispensary signage, Oat Foundry’s entry to the cannabis space, and the team’s vision for cannabis manufacturing solutions.
Read the full interview below!
Ganjapreneur: What drew Oat Foundry to the cannabis industry?
Mark Kuhn: Serendipity of the best kind! We had come off of a project designing and building a 220-gallon automated cold brew coffee reactor and were beginning to release project photos and videos. In the ultimate small world story, Ashish Joseph, CEO of SC Botanicals (a South Carolina-based hemp processor) happened to be my roommate in college and has been an avid Oat Foundry fan since the beginning. A late afternoon chat happened to time up perfectly with their team’s desire to turn their proprietary system into a fully fledged shippable product. The SC team had devised a novel remediation method to extract THC from hemp without the use of solvents, and were producing incredible results, but their system was in the lab stage.
We were DM’ing back and forth about product design and what goes into PLC cabinets and industrial automation and that led to a working meeting with both teams – all of us sitting around our conference room and sketching out the future. Ash wanted our engineering design, system design, and automation design brains to help SC Botanicals go from where they were, to full scale ship-a-machine-across-the-country-and-have-it-just-work territory.
We learned quickly that our experience in building both software and hardware to create automated systems for food and beverage were hyper-relevant to the cannabis space. When you take a knowledge expert like Ashish and multiply it by our engineering team at Oat Foundry, we’re able to create some really cool stuff.
Speaking of Cool Stuff — Oat Foundry’s mission is literally to Build Cool Stuff. What is the coolest thing Oat Foundry has built?
Such a tough question to answer! As we speak, I can hear the team in the back working with liquid nitrogen. We once sent a can of La Colombe into space. We’ve helped the Philadelphia Eagles save eight seconds off the play clock by building a carbon fiber play-calling tool called Fast Box. That cold brew machine I mentioned produces cold brew 100 times faster using less coffee. It’s non-stop candyland here
We’re also unique in that we have our own products in Split Flap (a modern, connected take on the iconic mechanical airport departure boards) and Picture Flap (Split Flap’s sister product based on moving images).
We’ve found this sets us apart as an engineering firm because we have a deeper understanding of the bottom line. We run our own P&Ls for our products. We built the marketing and sales teams from scratch. We support our customers in places as far as Azerbaijan and Hong Kong. So, it’s not just about building something cool — it’s about building something that creates an impact for our partners. Something that they can scale and open new lines of business.
Why do you think the Split Flap is becoming so popular for dispensaries?
Years back, we were given a brief: We want to share information with our customers from our point of sale system, but we cant under any circumstances use TV screens. Oat Foundry set out to create something that could be evergreen in its ability to update content as quickly and seamlessly as a screen, but that could elicit a visceral yet positive response.
Our love for all-things analog led us to developing the Split Flap, and since that time we’ve been privileged to build displays for clients like Google, Starbucks, American Airlines, Nike, and more. There’s really nothing like the feeling you get when you see the letters flip and hear that iconic clack clack clack noise as the flaps rotate to reveal the next message.
What is exciting about the dispensary space is we’re seeing the level of care and dedication groups like Jushi, Rise, Airfield and many, many others are putting into their in-store experiences. They’re cultivating their spaces to represent not only their brand, but to also be an extension of the relief and benefit customers are feeling from their products. Dispensaries are truly one of the only ‘trips to the store’ that people are genuinely excited to make – for some it’s self-love – and we delight in adding to that excitement with Split Flap and Picture Flap.
We didn’t set out to build these products specifically for dispensaries, but we’re hearing from our customers that it is the perfect way to welcome guests into their experience. First you hear it, and then you can’t take your eyes off it. That’s great to highlight products and specials, but the real magic is that it creates a moment of surprise and delight in an otherwise static location.
We’re really proud of Split Flap because it’s become perfect example of our team’s ability to take a challenge and turn it into an opportunity.
What other challenges in cannabis has the Oat Foundry team identified?
I think we’re witnessing a really interesting moment in history where the rapid legalization and newly-cemented essential status of cannabis is creating an incubator for innovation. Using a standard candy depositor for edibles may have worked when you were fulfilling state-level orders, but when you’re manufacturing for the nation, you’re going to want to be sure your machine has an agitator. We heard recently that RAW rolling papers make their pre-rolled cones by hand because no one has been able to build a machine that is delicate enough to automate the process. I don’t know if that is true, but that is exactly the type of challenge that excites our team.
As these pain points become further elucidated through legalization, we want to be a trusted partner you can reach out to to develop solutions that rise to the occasion.
How can cannabis companies get in touch with Oat Foundry?
For all things Split Flap or Picture Flap, you can reach out to Kristy@OatFoundry.com and for anything System or Product Related, email Josh@OatFoundry.com. You can find our latest projects any time at oatfoundry.com or on instagram @oatfoundrybuilds
Thanks, Mark, for answering these questions! Learn more at OatFoundry.com.
Canopy Growth last week agreed to a distribution deal with Southern Glazer’s Wine & Spirits, one of the largest alcohol distributors in the U.S., for its line of CBD beverages. The announcement comes on the heels of the Canadian company’s launch of Quatreau – its first line of CBD-infused drinks.
David Chaplin, Chief Growth Officer for Southern Glazer’s, said the agreement reinforces the company’s “consumer-focused approach to identifying emerging growth areas” where it can add value for its customers.
“There is strong consumer interest in the CBD-infused beverage category and our distribution network is uniquely positioned to deliver the most efficient and effective route-to-market for CBD suppliers and retail customers. We’re proud to align with Canopy Growth, a company well-positioned to lead this product category with a portfolio of premium, highly desirable consumer brands.” – Chaplin in a press release
Notably, alcohol distributor Constellation Brands Inc., owns a 38.6% stake in Canopy and, according to a Drinks Business report, the firm recently tabbed Southern Glazer’s to handle about 70% of its wines and spirits.
Julious Grant, Chief Commercial Officer for Canopy Growth, described the deal as “groundbreaking.”
“The leadership team at Southern Glazer’s shares our values, priorities, and future-forward view of the category,” he said in a statement. “Together, we are committed to creating an immediate strategic route to market for Canopy’s premium CBD beverages.”
Initially, Southern Glazer’s will distribute the Quatreau line – a sparkling water beverage – in seven states.
New Mexico’s adoption of adult-use cannabis is expected to disrupt the Southern Colorado cannabis economy, according to the Albuquerque Journal.
The report highlights Trinidad, Colorado as a “boom and bust” town that saw an exodus of professional workers in the early 2000s after the local coal and natural gas industries closed down. But Trinidad, located 15 miles from the New Mexico border, saw an economic resurgence after Colorado legalized cannabis, with eager investors from Denver and beyond filling the town’s vacant buildings with cannabis-related businesses.
“We’ve had a bunch of people migrate here from Denver … and bring a whole new culture and a whole new age group to Trinidad,” Kim Schultz, co-owner of Trinidad’s Higher Calling U, told the Journal.
Today, Trinidad — a mountain town with only 9,000 residents — has nearly 30 dispensaries, the Journal reports, and they are heavily frequented by New Mexico residents who have crossed the border to purchase regulated cannabis products.
“We are concerned,” said Dustin Sisneros, a worker at a dispensary in Antonito, Colorado, who acknowledged that roughly 60 percent of the dispensary’s customers travel from New Mexico.
Ironically, as New Mexico moves into a regulated cannabis marketplace, some entrepreneurs are looking to mimic the success of Colorado border towns by appealing to out-of-staters who are still living in prohibition states like Texas and Oklahoma.
“Things are going as planned,” said Duke Rodriguez, CEO of the New Mexico licensee Ultra Health. Rodriguez estimates that Texans will eventually make up about 40 percent of New Mexico’s adult-use cannabis sales.
“It’s more than a hope – we fully intend to impact the need for New Mexico residents to cross into Colorado,” he said.
Towns on the Texas and Oklahoma borders like Clayton, New Mexico have already started looking at re-zoning options to accommodate the expected cannabis boom, according to the report.
Missouri Gov. Mike Parson (R) is attending a fundraiser hosted by medical cannabis licensees, “raising some eyebrows,” according to a Missouri Independent report.
Invites for the event — scheduled for Tuesday, April 27 — were sent by the Missouri Medical Cannabis Trade Association’s Executive Director Andrew Mullins and the event is occurring at the home of Hamid Hamrah, who is associated with medical cannabis licensee Green Farms, the report reveals.
Additionally, while Gov. Parson has said he will not seek further political office and is in fact barred from running for governor again due to term limits, the money raised at the event will go to his PAC, Uniting Missouri. According to state disclosure forms, Uniting Missouri — which was formed in 2018 to help Parson run for a full term — has raised $100,000 and spent $110,000 this year alone, mostly going toward consultant fees, the Independent reports.
However, the amount of money the governor is raising is not what has concerned some observers; rather, it is the influence such fundraisers provide for the donors. Missouri’s medical cannabis program has been under intense scrutiny by the Missouri House of Representatives for improperly scoring license applications, and by the FBI, who is investigating a pair of utility contracts connected to the state’s medical cannabis industry.
Gov. Parson’s long-time friend and advisor Steve Tilley, who is also a lobbyist for the Missouri Medical Cannabis Trade Association and who has previously lobbied for Green Farms, has so far been connected to each of the FBI investigations, according to the report.
“When someone sees industry leaders are able to, not even have a seat at the table but actually pay for the table, that doesn’t speak well for how policy decisions are going to be made.” — Beth Rotman, Common Cause’s Director of Money in Politics and Ethics, via the Missouri Independent
Venice, California-based Ispire is redefining vape hardware innovation. The first-of-its-kind cannabis hardware and technology firm launched in mid-2020, and their sleek designs and never-before-seen technology have caused quite a buzz.
Ispire holds over 1,000 patents globally and is responsible for inventing the bottom-fed coil technology used in most modern vaping hardware. Choosing not to rest on their laurels, Ispire took it a step further with their patented Ducore, or dual-core, technology, which offers a larger surface area for more even heating and improved flavor profile delivery. Additionally, Ispire offers adjustable airflow control options, putting the power back in the user’s hands to control each hit’s breathability or intensity.
Ispire’s cartridges, batteries, and disposables are also fully customizable, from colors and finishes to custom molds and packaging (and so much more). Cannabis brands choose Ispire time and time again for their vape hardware, and consumers have also shown increased demand, now being able to purchase from brands directly through sites like VPM.com. Ispire cartridges work with oils of different viscosity, which has caught the interest of partners in the regulated THC market and the CBD, Delta 8, Delta 9, and other cannabinoid spaces.
The Wand, Ispire’s latest innovation, just launched in March 2021 and has already changed the future of dabbing. The only tool of its kind, The Wand replaces messy and dangerous dab tools like blowtorches or other e-nails, which have the potential for faulty wiring and have you putting your concentrates on plastic or metal (gross).
Instead, the Wand uses induction heating and food-grade quartz glass to seemingly “magic” heat into the banger, doing away with the need for a blowtorch or butane. The Wand heats a small cup insert that the user places inside the banger before heating. This process allows for precision temperature control in 5-degree intervals from 450-800 degrees, so you control how hot or cold your dab is. The Wand also includes cup inserts with holes in the bottom to be used with flower and, because this device is fire-less, The Wand heats and vaporizes the flower rather than combusting it, producing the most flavorful hit you’ve ever taken. And to answer your question — yes, it rips.
Because of this innovation in portable e-nails, Ispire has already received the John MacKay Best Scientific Advancement Award for advancing the cannabis industry.
Ispire imagines a day when we’ll all look back and think about how wild it was to have blowtorches and butane lying around our houses as casually as you see today. Their first direct-to-consumer product is available directly on their website at www.getispire.com for $169.99.
A bill introduced last week in the House aims to protect the gun rights of cannabis consumers in states with legal cannabis. Under current federal law, registered medical cannabis patients and those in states with adult-use laws can be disqualified from purchasing a firearm due to a question on Department of Justice Form 4473 that asks about cannabis use.
If the cannabis-using buyer answers the question in the affirmative, they can be disqualified from purchasing a firearm or they risk perjuring themselves. The question requires the buyer to attest that they are “not an unlawful user of, or addicted to, marijuana or any depressant, stimulant, narcotic drug, or any other controlled substance.” The form further clarifies that, “The use or possession of marijuana remains unlawful under Federal law regardless of whether it has been legalized or decriminalized.”
The bill – the Gun Rights and Marijuana (GRAM) Act – is sponsored by Republican Reps. Don Young (AK), Brian Mast (FL), and Rodney Davis (IL). Young and Davis represent states that allow adult cannabis use, while Mast represents Florida, which allows medical cannabis use.
Young, who co-chairs the Congressional Cannabis Caucus, said the proposal has “two main pillars” that make it important: protecting the Second Amendment for individuals seeking to exercise their Constitutional rights to own firearms and defending the Tenth Amendment right of states to determine their own cannabis laws.
“The federal government has no business unduly restricting responsible citizens from exercising their rights or restricting states from listening to their constituents and reforming marijuana laws. The GRAM Act bridges this gap. Given that it deals with both gun and marijuana rights, there really is something for those on both sides of the aisle to support.” – Young in a press release
Davis said that legal cannabis use “should not be used as a pretext to bar individuals from purchasing or possessing firearms,” which he described as “a clear and well-defined Constitutional right.”
“With more and more states legalizing marijuana each year, we have to make sure that we are protecting the Second Amendment rights of Americans who reside in those states and use marijuana legally based on their state’s laws,” he said in a statement.
The proposal was referred to the House Committee on the Judiciary.
A recently-published University of Minnesota study following sets of twins from age 11 to adulthood suggests that cannabis use has little impact on long-term cognitive abilities, according to an Associated Press report on the research. The 20-year study followed 2,410 sets of identical twins from Minnesota but only 364 had differing cannabis use, making them eligible for the study.
The study, which remains ongoing, observes cognitive, mental health, and socioeconomic outcomes of cannabis use. The twins have been given a baseline assessment every two years which includes an electroencephalogram and asks the sets of twins to self-report on topics such as the frequency of their cannabis use and the physical effects.
Dr. Jonathan Schaefer, an Institute for Child Development (ICD) postdoctoral researcher at the University of Minnesota, told the AP that the researchers have so far concluded that “there’s very little evidence that cannabis has dramatic effects on cognitive ability, at least from adolescence into adulthood.”
Dr. Steve Malone, the study co-author, said that while the twins who use more cannabis are meeting criteria for more mental health problems, are doing worse in terms of socioeconomic status, and scoring slightly lower on vocabulary tests, those results are not directly linked to cannabis use. Rather the results suggest that adolescent cannabis use may cause educational or motivational difficulties that may affect a person’s academic and occupational status later in life.
The researchers found 76% of the twins that were heavier cannabis users continued education beyond high school, compared to 82% of the lighter-use or sober twins. The grade point average between the siblings differed by an average of about 0.2 points, the study found.
Malone noted that “the sample of twins is representative of the population of the whole state of Minnesota.
“But I think it’s a really important feature of the design, that these samples are representative of the population of us as a whole.” – Malone to the AP
Researchers at the University of Colorado Boulder have also been conducting a complementary study that can be used to compare the results in both states which would help researchers observe the impact of legalization on substance abuse.
The Montana Senate last Friday approved a bill to implement the voter-approved recreational cannabis program, the Associated Press reports. The bill was approved by the House earlier this month but because it does not follow the voter-approved revenue plan, it was not supported by the chamber’s Democrats.
The version passed by the Senate included amendments more closely aligned to the ballot initiative language and did include Democratic support. The House must re-vote on the Senate-amended version of the bill, which now includes cannabis-derived sales revenues earmarked for addiction treatment and nature conservation.
Under the Senate-approved version of the legislation, recreational cannabis sales would include a 20% tax. Of the cannabis-generated revenues, $6 million per year would go towards addiction treatment; 20% for conservation; 4% – up to $650,000 each – would go to state parks, trails, recreational facilities, and wildlife protection; up to $200,000 would go to veterans services and improving veterans’ cemeteries; $300,000 would go toward a one-time purchase of drug detection dogs; $150,000 would fund a one-time police training; and the remaining funds would be directed to the state’s general fund.
The voter-approved ballot initiative language directed 10.5% of revenue towards the general fund, with the remaining set aside for conservation, substance abuse treatment, veterans’ services, health care costs associated with legalization, and localities where cannabis is sold. Under the proposal approved by lawmakers, counties that approved the initiative would be automatically opted-in to legalized sales, while those where the majority opposed the reforms would need to separately opt-in. The bill also allows the state’s Native American tribes to sell cannabis within 150 miles of their reservations. Earlier this month, the Crow Tribe approved its own cannabis ordinance.
The legislation also includes language nullifying the law if the measure is found to be illegal. The initiative currently faces opposition in court from the anti-legalization group Wrong for Montana.
Nebraska’s Secretary of State Bob Evnen has given final go-ahead to Legal Marijuana Now (LMN) to begin activities as a political party in the state, the Associated Press reports. Evnen said the party can now register candidates for the 2022 election, voters can register as party members, and elected officials can nominate candidates for office.
In order to qualify, activists Mark Elworth Jr. and Krystal Gabel needed to collect at least one percent of the total number of votes in the latest governor’s race in Nebraska’s three Congressional Districts. They gathered over 10,000 valid signatures over a four-year period, which far exceeded the estimated 6,800 needed for approval.
“The Legal Marijuana Now Party is a political party organized in the United States to oppose drug prohibition. Legal Marijuana Now was established in 1998 in St. Paul, MN. It is a progression from the Grassroots party.” — LMN party website
Originally founded in Minnesota, LMN endorsed Senate candidate Kevin O’Connor, House District 2 candidate Adam Charles Weeks, and a host of others running for state office in 2020. The party’s platform includes the legalization of cannabis homegrows, the erasure of marijuana convictions, an end to employee drug testing, abolishing the Drug Enforcement Agency, and combating pollution with hemp agriculture.
“The voters of Nebraska have experienced many failed referendum petitions in the past and are currently witnessing a gridlocked Unicameral,” said Krystal Gabel, Legal Marijuana NOW’s National Party Chair. “The process of obtaining ballot access with the LMN petition breaks a decades-long political stalemate with the State of Nebraska on the issue of cannabis.”
After submitting the necessary signatures last year, Elworth stated his goal for the party in Nebraska was to discourage young people from leaving the state, saying that young Nebraskans feel “hopeless” when it comes to the state’s future and are leaving in droves.
Editor’s note: This article was updated to include the statement by Krystal Gabel of the LMN.
