Massachusetts Bill Seeks Cannabis Social Equity Fund & Loan Forgiveness

2/23/2021

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Massachusetts state Sen. Nick Collins (D) recently unveiled a new proposal for awarding business loans and loan forgiveness to social equity applicants.

Specifically, SD.2072 would establish a “Cannabis Social Equity Loan Trust Fund” that would make “no-interest loans, forgivable loans, or grants” for equity program participants in order to “encourage the full participation of entrepreneurs from communities … disproportionately impacted by … marijuana prohibition and enforcement.” The account would be funded by 25 percent of the state’s Cannabis Excise Tax revenue, as well as funds from private sources including gifts, grants, and donations. Additionally, regulators would be tasked with developing procedures “to forgive all or a portion of these loans subject to an analysis of anticipated revenues.”

The proposal was lauded by activists with the Massachusetts Recreational Consumer Council (MRCC), an advocacy group that lobbies for restorative justice and the decolonization of the cannabis industry.

“This legislation is a major win for us,” said Saskia VannJames, an MRCC lobbyist and board member.

“When s.2650 was originally proposed only loans and a 10% was offered and originally presented favorably to the public by our commissioners, and surprisingly backed by many industry leaders. MRCC knew the addition of grants, loan forgiveness, and the increase for 25% set aside was vital for our communities and have been pushing for Massachusetts to at least MATCH what has already been done in other states. This is the community’s win and we are glad to be the people’s champion and will continue to work as the voice of the consumer.” — VannJames, in an email

Massachusetts lawmakers are also considering bills that would allow for the automatic expungement of previous minor cannabis crimes, the decriminalization of all drugs, and the study/regulation of psychedelics including psilocybin, Marijuana Moment reports.

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Parallel Enters Deal with SPAC, Eyes on Going Public

2/23/2021

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Parallel, the cannabis company owned by William “Beau” Wrigley, Jr., the former chairman and CEO of the candy company that shares his name, has entered into an agreement with special purpose acquisition company (SPAC) Ceres Acquisition Corp that would see the combined company go public.

Wrigley, who will remain the company’s chairman and CEO, with Ceres Group co-founder Scooter Braun serving as special advisor, and Ceres Acquisition Corp. Chairman and CEO Joe Crouthers, serving as a company director.

“As a public company, we will have access to capital to grow our national footprint through new licenses and M&A, improve our cultivation and production capacity, expand our established retail footprint, develop and launch rare cannabinoids products with therapeutic benefits, and conduct important clinical research in partnership with the University of Pittsburgh School of Medicine. We look forward to working with the Ceres team and benefiting from Scooter Braun’s expertise and extensive influencer network to reach our diverse consumers with creative omnichannel approaches that will fuel Parallel’s leadership in the cannabis industry.” – Wrigley in a statement

The deal sets Parallel’s implied enterprise value at $1.884 billion, and Ceres has received commitments from a group of investors in an over-subscribed [Private Investment in Public Equity] of $225 million at a price of $10.00 per share issuable immediately prior to, and conditional on, completion of the deal. Parallel estimates net revenues of  $447 million this year, pro forma cash on hand of $430 million at close, including US$225 million from the PIPE, and $120 million in cash held in Ceres’ escrow account assuming no redemptions.

The combined publicly listed company is anticipated to have Class A Subordinate Voting Stock and Class B Multiple Voting Stock, the companies said. The Class B Multiple Voting Stock will have 15 votes per share and will be held by Wrigley and his affiliate entities upon the transaction’s close.

Other members of the proposed company’s board of directors include Marina Bozilenko, Strategic Advisor to William Blair and Company; Kevin Douglas, M.D., who currently serves as medical director of U.S. Rheumatology and Study Designated Physician/Therapeutic medical director at Abbvie, Inc.; Sarah Hassan, who was a founding partner of IM HealthScience; Linda McGoldrick, who has served as CEO and independent board member of several healthcare and life sciences companies; and Parallel’s General Counsel Phil Harris.

Parallel operates in Florida, Pennsylvania, Massachusetts, Texas, and Nevada.

The deal is expected to close this summer.

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Tennessee Bill Would Form Medical Cannabis Commission if Federal Reforms Enacted

2/23/2021

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Republican lawmakers in Tennessee have introduced legislation to create a medical cannabis commission to analyze what steps it should take if cannabis were removed from its Schedule I classification under federal law, Fox 17 News reports. Tennessee is one of just six states that do not have a medical cannabis program.

According to the bill text, the nine-person commission would examine potential patient qualification and registration, how health professionals prescribe – and how pharmacists dispense – medical cannabis, testing, guidelines, and licensing and regulation of facilities and suppliers. Additionally, it would consider cannabis taxes and fees on cannabis and current state cannabis laws.

The commission would be comprised of members – experts in health care, mental health, business, management, agriculture, and law enforcement – representing each of the state’s three grand divisions along with a physician and a pharmacist.

A cannabis decriminalization proposal was introduced in the state House in January, followed by a broad adult-use bill in the Senate. Medical cannabis bills are also expected to be introduced in the House.

In the Senate, the medical cannabis commission bill is in the chamber’s Government Operations Committee, with a scheduled hearing on Thursday. In the House, it was referred to the Health Subcommittee.

Earlier this month, Senate Democratic Majority Leader Chuck Schumer (NY), and Sens. Cory Booker (NJ) and Ron Wyden (OR) said they would release a draft discussion bill on legalization “in the early part of this year.” Last year, the House approved the MORE Act, which would legalize cannabis federally, but the Senate – then Republican-controlled – did not take up the legislation. Were the measure to pass, it would trigger the creation of the medical cannabis commission in Tennessee under the proposal.

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New Jersey Gov. Signs Bill to Legalize Cannabis

2/22/2021

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After over three months since voters approved the state’s cannabis legalization ballot question, New Jersey Gov. Phil Murphy (D) today signed into law a series of bills that ultimately legalize the adult use of cannabis.

The New Jersey Cannabis Regulatory, Enforcement Assistance, and Marketplace Modernization Act was only signed after lawmakers, at the governor’s behest, advanced accompanying legislation aimed at clarifying penalties for underage possession.

The legislation will remove criminal penalties for cannabis possession and legalize its use and possession by adults aged 21 and older. The laws also establish a five-member Cannabis Regulatory Commission (CRC) tasked with creating regulations and overseeing the industry’s launch. The application period for cannabis business licenses will open 30 days after the CRC releases its regulations, which are expected this summer.

“Our current marijuana prohibition laws have failed every test of social justice, which is why for years I’ve strongly supported the legalization of adult-use cannabis. Maintaining a status quo that allows tens of thousands, disproportionately people of color, to be arrested in New Jersey each year for low-level drug offenses is unjust and indefensible. This November, New Jerseyans voted overwhelmingly in support of creating a well-regulated adult-use cannabis market. Although this process has taken longer than anticipated, I believe it is ending in the right place and will ultimately serve as a national model.” — Gov. Phil Murphy, in an announcement

New Jersey is the 13th U.S. state to legalize cannabis and the fourth on the East Coast, having followed in the footsteps of Maine, Vermont, and Massachusetts. Neighboring New York, meanwhile, is expected to legalize later this year.

To the dismay of advocates, New Jersey is the second state after Washington to legalize cannabis but not allow residents to grow cannabis plants in their own homes.

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Montana May Delay Voter-Backed Cannabis Legalization Plan

2/22/2021

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Montana state Rep. Bill Mercer, a Republican, is seeking to delay cannabis sales – approved by voters last year – until 2023, saying the time frame “doesn’t make any sense,” the Missoula Current reports. Under the measure, sales would commence in January 2022.

“I wonder if the voters had any idea when they adopted this initiative that they were going to increase the state bureaucracy by 100 people within nine months. You’re talking about this massive expansion of government. … In order to try to do this in a coherent and rational way, to say that this can all be stood up by October 1, is a mistake.” – Mercer to MTN News via the Current

Mercer added that the Department of Revenue alone would need 76 new employees.

The reforms were approved by 58% of Montana voters last November. The bill’s provisions require the state to have rules in place to accept industry applications by October.

Last month, state lawmakers rejected a $1.35 million request from the state Department of Revenue for implementing the program. Gov. Greg Gianforte’s administration is working on how it will implement the reforms, including changing how the revenues derived from the 20% tax on cannabis sales would be spent, the report says.

The anti-legalization group Wrong for Montana has filed a lawsuit challenging the measure claiming the financial allocation provisions in the measure violate the state constitution. Mercer argues that implementing a legalization plan should be delayed in the event the court throws out the measure.

The delay bill is set to be heard this week in the House Business and Labor Committee.

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CBD Brands Go to Court Over Trademark Dispute

2/22/2021

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Two U.S.-based CBD companies are in court over the use of the branding “CBD MD,” according to a Life Sciences Preview report. CBD Industries LLC, based in North Carolina, is suing Louisiana-based Majik Medicine saying its use of “CBD MD” is confusing to consumers and “likely to cause consumers into erroneously believing that Majik’s products are lawful food and dietary supplements, which they are not,” according to court documents.

CBD Industries is registered as cbdMD and trades under that name. Majik also sells products using the moniker.

Majik was granted the trademark for “CBD MD” by the U.S. Patent and Trademark Office (USPTO) in 2017 and CBD Industries argues the company should have never received the mark because at the time CBD products were illegal under federal law. Hemp was legalized federally in 2018.

“The USPTO instructed that for applications filed before December 20, 2018, that identify goods encompassing CBD or other cannabis products, registration will be refused due to the unlawful use or lack of bona fide intent to use in lawful commerce under the [Controlled Substances Act]. Such applications did not have a valid basis to support registration at the time of filing because, according to the USPTO, the goods violated federal law.” – CBD Industries, in court documents, via Hemp Today

CBD Industries is asking the USTPO to cancel the trademark, prohibit Majik from using it in the future, and $75,000 in damages for the alleged infringement and attorney’s fees, the report says. CBD Industries also alleges that it attempted to settle the dispute privately in 2019 but was rebuffed with no counteroffer.

Update (4/20/2021): In a statement provided to Ganjapreneur, Majik Medicine, LLC said it has filed multiple counterclaims against cbdMD in court including claims such as Trademark Infringement, Cyber-Piracy, Unfair and Deceptive Trade Practices, and Unfair Competition.

“Majik Medicine, LLC has responded in court to what they have categorized as an attempt by cbdMD, Inc to usurp their trademark CBD MD that has been used by them and federally registered since 2017. They assert that cbdMD, Inc has engaged in willful trademark infringement with the deceptive use of a number of CBDMD marks, cyber-piracy in the use of the domain www.cbdmd.com, and further that cbdMD, Inc even changed their corporate name from Level Brands, Inc to cbdMD, Inc in 2019 (after being advised of Majik Medicine and their mark in 2018) in a nefarious plot to steal the CBD MD brand of Majik Medicine.” — Majik Medicine, in a statement

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Entrepreneurial Ethos: Building a Deep-Rooted CBD Brand

2/22/2021

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When serial entrepreneur Vithurs Thiru had the idea for what would eventually become Blessed CBD, he was 21 years old and already had six solid years in the digital marketing industry behind him. Turning a profit using his finely tuned digital marketing skills had become his groove but, with Blessed CBD, Vithurs ultimately sought to create a brand with meaning and ethos, and which stemmed from a deep personal importance to himself.

Back in 2017, Vithurs’ mother was on the phone to a relative, sharing with them how bothersome her aching joints were. From the other end of the line, she heard about CBD for the very first time; a derivative of the cannabis plant, it was said to have incredible natural therapeutic effect. After hanging up the phone, she asked her son for more information on the subject, and so Vithurs was set on a research path into the CBD market, both internationally and in the United Kingdom.

“In my teenage years, I’d always been told that weed was bad — it had this really negative stigma around it, and my parents had made their stance crystal clear. With my experience, though, I had this fascination for the cannabis plant to begin with, especially for its ability to calm the mind, and when my mother mentioned CBD to me, that has the psychoactive compounds of cannabis completely taken out of the equation, this fascination was kind of switched back on again.” — Vithurs Thiru, Founder of Blessed CBD

What he found after approximately 12 months of solid, in-depth research was a seemingly untapped potential market share in the UK. While there were a range of high-quality suppliers of CBD products across the Atlantic, things back home were still sorely lacking. Vithurs entered into partnerships with a range of farms in the US and Europe to operate as a highly involved and quality-driven CBD producer out of his home country. Blessed CBD was founded in 2018, a year after cannabidiol had been made legal in the United Kingdom, and was a near-instant hit. It didn’t take long for his new venture to receive awards and recognition from a variety of well-known publications, showcasing its strong product line.

“We started making good sales very quickly; the feedback took longer, though. But in about three months’ time, we began receiving emails and reviews back from our customers. And that’s when it really dawned on me: Blessed CBD was helping people. Really helping them.”

Emails started pouring into Vithurs’ inbox, some with long-form accounts of how the CBD products had helped improve everything from arthritis to anxiety. The mental health feedback became the penny-dropping moment for the founder. About a year and a half earlier, his father had committed suicide, after a long and silent struggle with depression. Vithurs had been estranged from his father for several years prior to this, and so his passing came as a substantial and heartbreaking shock.

“There were so many things I didn’t get to say to him — and that’s regret I have to live with and work through today. But also the fact that he was alone with his pain; that he didn’t speak up, and that no one reached out to help him.”

When the product reviews came in, Vithurs made the connection between his father’s passing and the customers his products were now helping. It was the shift that made him focus all his attention and energy to making Blessed CBD a success; to help as many people as possible. Now he hadn’t just founded this company out of a life-long fascination for its key selling ingredient; his venture was helping people through the kind of mental health struggles his father had lived with, and that Vithurs himself had experienced after his death.

“It really changed the game for me. I was invested in Blessed CBD before making that connection, but this was such a lightbulb moment. It switched the ethos on for me, in a completely new way, and now I’m determined to make this a brand that’s going to make a lasting impression. A brand that helps improve people’s lives.”

There’s no doubt the CBD market is a growing and profitable space to be in. In their first year of operations, Blessed CBD garnered over £5million in sales. For Vithurs, though, the company is so much more than his biggest entrepreneurial success — it’s become a drive on a different level, because of his own personal experiences and because he sees how it’s possible to balance serious profits with doing good.

“The thing is, if you find a way of helping people, the money will come. It’ll come quicker and for longer, too – and you’ll be making a positive impact. Being able to combine profits with helping people is one of the best things I’ve experienced as an entrepreneur to date. It’s also amazing to have talented and globally recognized athletes such as Israel Adesanya as part of the Blessed CBD family. It truly is wonderful.”

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Former NBA Star Isiah Thomas Invests $3M Into Colombia-Based Cannabis Company

2/22/2021

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Former National Basketball Association player and coach Isiah Thomas, through ISIAH International, LLC, is investing $3 million into One World Pharma, Inc. a licensed, pure-play hemp and cannabis ingredient producer based in Colombia.

Thomas currently serves as One World’s vice chairman and CEO.

The investment will be used to build out an extraction facility and obtain additional Good Agricultural Practices certification for THC-rich cannabis seeds. ISIAH has already provided One World $250,000 and the remainder of the funds will be disbursed over six months.

“After extensive analysis of Colombia, the world market and these most recent developments at the Company, I passionately believe there is a tremendous opportunity to build a world class, valuable, enviro6nmentally and socially conscious company that is a significant player in the global cannabis and industrial hemp industries. There are few, if any, reliable, industrial scale, global supply chain companies in this space and we intend to be one.  I am pleased to initiate this next chapter of growth.” – Thomas in a press release

One World was founded in 2017 and has corporate offices in both Colombia and Las Vegas, Nevada.

Thomas played 13 NBA seasons with the Detroit Pistons, winning championships in 1989 and 1990. He was a 12-time All-Star, 2-time All-Star Game Most Valuable Player, and Finals MVP in 1990. Thomas also coached the Indiana Pacers and New York Knicks.

He is joined by former NBA players Chris Webber, Al Harrington, Larry Hughes, John Salley, and Shawn Kemp as having investment in – or ownership of – a cannabis company.

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Federal Court Rules Cannabis Brand Liable for $4.2M in Taxes

2/19/2021

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The U.S. Tax Court on Wednesday ruled that California medical cannabis operator San Jose Wellness, a subsidiary of Harborside, is liable for $4.2 million in taxes because federal law prohibits it from claiming depreciation and charitable contribution deductions, Law 360 reports.

In the opinion, U.S. Tax Court Judge Emin Toro determined that the Internal Revenue Service had lawfully denied the company’s depreciation and charitable giving claims because they are associated with the cannabis trade and the company files taxes under IRS Code 280E which prohibits deductions because the code is used for businesses that buy or sell federally prohibited substances.

Toro said in his ruling that “the requirements of Section 280E are clear.”

Harborside had argued that the tax code requirements were unconstitutional because 280E results in a tax that is not an income tax, running afoul of the 16th Amendment. The Tax Court also ruled against the company in 2018, determining Harborside is “a giant drug trafficker, unentitled to the usual deductions that legitimate businesses can claim.”

Toro cited a separate 2019 case, Patients Mutual Assistance Collective Corp. v. Commissioner, in his ruling, which determined taxing cannabis companies under 280E was lawful, according to Law 360. Additionally, Toro said that just because San Jose Wellness sold other goods, such as t-shirts, and services, such as acupuncture, it does not qualify for any tax breaks.

The judge also suggested that the company failed to consider previous IRS guidance, case law, and legislative history “to determine its proper tax liability” before filing its petition with the court.

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New Jersey to Resume Medical Cannabis License Application Process

2/19/2021

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New Jersey regulators can resume its review of medical cannabis license applications – delayed more than a year – after an appellate court found in favor of the state Department of Health’s application review process, NJ.com reports.

Eight industry applicants had sued the state in 2019 claiming the Health Department wrongly rejected their applications due, in part, to corrupt PDF files and local approval denials. A lower court had issued a stay in the case, which prevented regulators from reviewing or issuing new industry licenses.

The court ruled that applicants were given clear instructions about application guidelines – including a webinar – to assist them with the process.

The court did rule favorably for ZY Labs, whose application had included three letters of support from prominent community members but not from the municipality. The decision sent the application back to the Health Department for further review, determining that the three letters constituted community approval under the agency’s guidance, the report says.

Joshua Bauchner, an attorney who represented several of the appellants, said in a statement to NJ.com that he and his clients are “disappointed in the Court’s decision,” saying it “anachronistically relied on an agency investigation occurring after the disqualification decision – confirming the decision, itself, was baseless.”

Craig Provorny, another attorney on the case, called the Health Department investigation insufficient.

“Community Wellness of New Jersey is very disappointed in the decision. Community Wellness is a 100% minority-owned business that is the type of operation you would think the state would like to participate in this program. We believe the appellate division ignored the facts about the system crashing, and other mismanagement on behalf of the Department of Health.” – Provorny to NJ.com

The Health Department will review a total of 146 applications for as many as 24 new licenses.

The ruling comes as state lawmakers extended the date for Gov. Phil Murphy (D) to act on the cannabis legalization bill approved in December from today to Monday as lawmakers and the governor continue to negotiate a clean-up bill on cannabis possession by minors that the governor wants before he agrees to sign the legislation. The bill is required under a constitutional amendment approved by voters last November.

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Adult-Use Cannabis Bill Passes Minnesota Legislative Committee

2/19/2021

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An adult-use cannabis legalization bill has, for the first time, passed a legislative committee in Minnesota, the Star Tribune reports. The measure passed the House Commerce Committee on a 10-7 party-line vote with all Democrats in favor and all Republicans opposed.

House Democratic-Farmer-Labor (DFL) Party Majority Leader Ryan Winkler has signaled strong support for the reforms but the bill faces long odds in the Republican-led Senate. The chamber’s Majority Leader Paul Gazelka said in an interview last month that legalization is “not right for the state.” Gov. Tim Walz (DFL) has said he would sign a cannabis legalization bill were it to reach his desk.

“It’s coming. It’s time to get it right. We have an opportunity to go from an illegal, criminal-justice approach that hurts a lot of people and move to a system where we can actually address the real concerns, create real opportunity and right some past wrongs.” – Winkler to the Star Tribune

The measure includes expungement of low-level cannabis crimes that would be legal under the reforms. In Minnesota, Black people are 5.4 times more likely to be arrested for cannabis than their White counterparts.

The measure has been discussed at 15 town hall meetings throughout the state and has been scrutinized for 18 months by criminal justice groups, businesses, and other stakeholders, the report says. Opponents argue that legalization would lead to increased traffic accidents, substance abuse, and workplace issues. Proponents are pointing to the potential revenues as the state faces a budget hole brought, in part, by the coronavirus pandemic.

A 2019 Marijuana Policy Group report suggested Minnesota could see $300 million annually from cannabis derived revenues on sales of $1.12 billion, according to MPR. The report also suggested the industry would create 20,000 jobs in the state.

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Florida Lawmakers Reject Disproven Anti-Cannabis Rhetoric

2/19/2021

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Several Florida lawmakers pushed back on a Harvard professor’s recent assertions that cannabis causes psychosis in youth and other anti-cannabis statements during a Florida House Professions & Public Health Subcommittee meeting, Florida Politics reports.

In her presentation to legislators, Bertha Madras — a Harvard professor of psychobiology who has made anti-cannabis statements online and was a member of former President Trump’s Commission on Combating Drug Addiction and the Opioid Crisis — said, “People who go into the emergency department with psychosis, due to their initiation into marijuana use, and they continue to use, they’re more likely to convert to full-blown schizophrenia, and the conversion rate is between 20% and 40%.”

Madras would later admit that there is no scientific consensus when it comes to correlations and causation surrounding schizophrenia and cannabis use.

In his follow-up comments, Rep. Carlos Guillermo Smith. raised concerns about the doctor’s presentation saying,

“We have to be very careful about not conflating there being a causality here. … Currently, we have a medical cannabis program, but we already know that the physician needs to basically acknowledge that the benefits outweigh any of the risk.” — State Rep. Carlos Guillermo Smith (D), in follow-up comments

During her presentation, Dr. Madras cited an 1895 study from the Bengal Insane Asylum that observed 25-40 percent of its residents were long-time cannabis users. She went on to express concerns around youth access, even comparing cannabis to crack cocaine and crystal meth at one point.

Rep. Smith reminded the panel that a 2019 CDC study in Colorado, Oregon, and Washington found there was no increase in youth cannabis use after legalization.

According to the CDC, “use of marijuana at an early age can affect memory, school performance, attention and learning; conclusions have been mixed regarding its impact on metal health conditions, including psychosis, depression, and anxiety.”

Florida state Rep. Michele Rayner-Goolsby (D) also took issue with the presenter’s comments, remarking on Twitter, “So this woman is comparing marijuana to crack cocaine and methamphetamine,” and later calling her “dangerous” and “irresponsible.”

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TriLabs Manufacturing: Empowering CBD Brands with Quality White Labeling

2/18/2021

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TriLabs Manufacturing provides effective white label products to brands of all sizes using a combination of proprietary recipes and pharmaceutical grade quality control. Glenn Reynolds, CEO of TriLabs, has been manufacturing and packaging hemp CBD products since founding his first business in 2014. Two years ago, he applied that expertise to TriLabs Manufacturing, an operation based in Redlands, California. They have scaled up from a couple doing their own thing crafting quality products to a large facility in Southern California, but their basic philosophy remains the same. Despite the size of the order or the client, they remain ethical and transparent without compromise.

CEO Glenn Reynolds said, “Having been in the industry as long as we have now, we try to advise customers one way or the other based on pitfalls we’ve seen in the past to help them avoid those pitfalls and navigate their way through the industry the best that we can.”

The company recently moved to a larger facility which allows them to serve all clients at a reasonable price. Some of the recipes in their formulations have been in use for years, perfected by personal use by Glenn. Glenn and his wife have also over the years perfected base recipes for gummies and pet treats. Their family recipes help to solve common problems faced by fledgling cannabis brands, including heat degradation, achieving desired flavors, and consistency.

TriLabs’ base recipes are formulated by a scientist who has worked with many nutraceutical companies. This formulator built all of the base lotions and cosmetics available through the white label company. With these formulations, the team puts together a unique product for each client to fit their goals. They can easily manipulate their base recipes to feature a unique flavoring or to meet specific goals.

Adam Bushey, Vice President of Sales, told Ganjapreneur that customer care is one of TriLabs’ top priorities. They apply their industry knowledge to ensure that client investments in TriLabs products are as successful as possible. When a client is looking to take on a full R&D product or to reverse engineer something from the ground up, sometimes they are guided to work with a base formulation to save money. This — helping to mitigate costs that aren’t always necessary to bring a successful product to market — is just one example of how TriLabs considers its clients above its bottom line.

“You can still specialize without starting from the ground up and avoid a lot of that time delay and upfront cost, we tailor our approach to each project as it comes up and we find the best fit for that customer,” Bushey said.

At one time, Glenn explored the idea of vertical integration but he ultimately decided it isn’t right for the company. Over the years Glenn has owned and operated cultivation operations, working with a variety of extraction processes, and has acquired more than 12 years of manufacturing experience. However, staying solely focused on formulation and manufacturing allows the company to perfect products and processes to the most finite degree.

This continued goal of perfection is what makes TriLabs a company that gets effective tinctures, topicals, gummies, pet treats, and more to their clients on their timeline. Instead of focusing on farming or extraction, they build quality relationships with a small handful of extractors with various specialties. If someone is looking to create a CBN-focused tincture or topical made with organic hemp, TriLabs can source that from one of their heavily-vetted extraction companies.

Any ingredient that enters the TriLabs inventory is analyzed by a third-party lab against COAs for cannabinoid content and microbials. Even flavorings and non-cannabis products are inspected before ever being included in a formulation. Each ingredient is traceable and cataloged using three lines of code to trace each ingredient back to its specific batch, the products it is used for, and the expiration dates. Before formulating there is a taste test on individual ingredients since every extraction comes with a somewhat unique set of flavonoids. In every production line, there are a series of reliable steps in place so that the team can stay one step ahead of quality control. These protocols also create a full line of traceability down the manufacturing line.

“We only do things the right way, we pride ourselves on that,” said Reynolds. “We’re very ethically driven, very morality driven, and very dedicated to everything that we do. If we tell you we’re going to do something, we’re going to do it. If it’s something we can’t do we’re not going to tell you we can and take your money. The bottom line of it is how we do business and what the drive is behind that.”

To provide their wide range of clients with superior service, TriLabs split them into three categories. For the small business owners who are setting out to start a small CBD-side business, the team offers low MOQs, low customization costs, drop shipping, and more services that can otherwise overwhelm a new business owner. If they bring on an established brand that requires larger quantities per order, TriLabs takes a more consultative approach — this helps the team identify areas where their new client could expand their business using the TriLabs product line and expertise.

The final type of client that the team has experience in serving doesn’t require consultation but is more focused on how to get products shipped at a low bottom line. For these brands, TriLabs delivers the lowest bottom line while keeping an eye on where the company could innovate or build strategic partnerships. Before taking on a client of any size, the team will lay out a realistic timeline to complete their goals. On the rare occasion when there is a delay, they call the client immediately to keep them informed.

TriLabs recently moved into a facility three times the size of their former space in San Bernardino. The updated facility features new machines that will take production to the next level. They have transitioned from making 50k gummies daily to 1.2M gummies per day. They can also formulate 18k to 22k tinctures and 12k topicals daily. Their updated cookie depositor will take the daily output from 4,000 to 150k pet treats produced daily. Batch runs on the depositor can be customized to add supplements, which will better serve pet treat clients. Their site will also continue operating on the smaller scale machinery to serve brands of any size. This setup allows them to easily take a smaller brand to a larger capacity by simply moving production to a new room.

The main goal at TriLabs Manufacturing is to create the best CBD products possible for their clients. Many large white label companies will not work with fledgling companies, but TriLabs has built out a facility that not only serves small businesses but is fully ready to help them scale up. They also get consistent feedback from all clients that their products are the most effective white label tinctures, topicals, gummies, and pet treats they’ve encountered. This success is attributed to a finite focus on workflow to develop procedures and formulations that cannot be duplicated, and deep respect for their clients.

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Former Eaze CEO Facing Bank Fraud Charges

2/18/2021

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Federal prosecutors will charge the former CEO of cannabis technology and delivery platform Eaze in connection with a case against two businessmen who allegedly duped banks into processing $100 million worth of illegal credit and debit payments, Law360 reports.

Eaze’s former CEO Jim Patterson — who stepped down as CEO in 2019 and later left the company — is expected to plead guilty tomorrow to the undisclosed charges. Notably, Eaze was not charged and a representative said the company has been cooperating with investigators.

The case centers around businessmen Ruben Weigand and Hamid Akhavan, who are accused of conspiracy to commit bank fraud in a “transaction laundering scheme,” Law360 reports, citing court records. The men argued the case against them is invalid because officials have not alleged an intent to harm or steal from banks, and because the money involved was only transferred through banks, not actually acquired from the banks. But in August, U.S. District Judge Jed Rakoff said that argument “borders on the frivolous.”

Their trial is currently set for March 1 in the U.S District Court of the Southern District of New York in what would be the district’s first white-collar criminal trial of the year, according to the report.

Patterson’s charges call to mind a California lawsuit filed in 2019 by Eaze competitor DionyMed, who accused the company of committing bank fraud in order to process customers’ credit and debit card payments. Eaze decried the case — which was later dismissed — and called it an attempt by DionyMed to publicize its subsidiary cannabis delivery platform Chill.

Originally founded as a cannabis delivery app, Eaze announced last year that it would pivot from just a technology platform to a touch-the-plant, retail business model.

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Cannabis Lounge Serves as Warming Station and Homeless Shelter Amid Winter Storm

2/18/2021

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A cannabis lounge in Wagoner, Oklahoma has lent itself as a warming station and shelter for the town’s homeless population amid a dangerous and ongoing winter storm, the Frontier reports. Budz Lounge on Main started offering food, clothing, and blankets on Saturday after a discussion on Facebook about the homeless population caught in the subzero temperatures.

Co-owner Sarah Hutt-Greenman said the business has transformed into a “warming station during the day and welcoming any overnight guests if they have a need, food and clothing.” She said they had provided food, clothing, and blankets to 24 people as of Wednesday, including seven children. About 20 people have used the warming station per day.

“We were watching it unfold on Facebook, people crying out for a need. We watched it for about half an hour and saw no one step up and said forget that. We’re going to cease anything we were doing in here and step and be what the community needs us to be. We’re going to show what compassion and love look like.” – Hutt-Greenman to the Frontier

The town does not have a homeless shelter and Deputy Wagoner Police Chief Tony Ponds said the lounge was the only option for warming or overnight shelter.

“We have people, unfortunately, who don’t have anything,” Ponds said to the Frontier. “We’re just glad Budz stepped up to the plate to do what they did.”

Hutt-Greenman said the community has provided donations of clothing, blankets, and food, along with the police department, the Toppers Volunteer Fire Department, and Toppers Neighborhood Watch. Budz has also partnered with Healthy Food Oklahoma on the effort.

On Tuesday, the Southwest Power Pool (SPP) declared an Emergency Energy Alert Level 2, which requires SPP to direct its members companies to issue public conservations appeals, CBS19 News reports. As of Wednesday afternoon, more than 2.8 million Texans remained without power due to the storm and below-zero temperatures.

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Tobacco Executive Calls CBD ‘Exciting Area of Growth’

2/18/2021

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In an interview with CNBC’s “Squawk Box Europe” on Wednesday, British American Tobacco Chief Marketing Officer Kingsley Wheaton called CBD “an exciting growth area” for the company’s “business for the future.”

British American is the world’s second-largest tobacco company in the world by market capitalization behind Philip Morris.

“We draw a very big distinction between CBD and other forms of cannabis. We’re interested in CBD. But I think the bigger point is we’re trying to build the portfolio of the future for our business. We’re trying to build the brands of the future. We’re trying to meet consumer needs that smoking used to meet with a new transformed portfolio.” – Wheaton, “Squawk Box,” Feb. 17, 2021

The company’s brands include American Spirit, Camel, Pall Mall, Rothman’s, Newport, Lucky Strike, Kent, and Dunhill cigarettes, oral tobacco brands Camel Snus and Grizzly, and vape and non-combustible brands Vuse, Vype, Glo, and Velo.

Vuse launched a CBD vaping product pilot in Manchester, England last month that comes in two strengths and three flavors. Wheaton said the program is helping the company learn and understand the potential for a CBD product and “indeed signaled” the company is seeking to meet consumer needs beyond its traditional tobacco business.

In January, the world’s third-largest tobacco company, Altria Group, registered in Virginia to lobby on cannabis policy. Last year the company hired Denver, Colorado-based Brownstein Hyatt Farber Shreck, one of the nation’s top cannabis and hemp law firms, to lobby Congress on federal policies related to CBD and “non-tobacco excise taxes.” Altria owns 45% of Canadian licensed producer Cronos Group after investing $1.8 billion in the company in 2018. It also filed for two cannabis vaporizer technology patents in 2020.

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Verano Lists on Canadian Securities Exchange

2/18/2021

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Chicago, Illinois-based Verano Holdings Corp. began trading on the Canadian Securities Exchange (CSE) on Wednesday, following a reverse takeover of, and merger with, Majesta Minerals Inc. The company will trade under the VRNO symbol.

In the reverse merger, completed last week, the company raised $100 million through a subscription offering that valued Verano at $2.9 billion. The deal included a merger with Florida’s Alternative Medical Enterprises. The company now operates in 14 states – active in 11 – under the Zen Leaf and MÜV brands.

MÜV is both the dispensary name and the company’s branded products.

Verano CEO and Co-Founder George Archos said the public listing provides the firm “with access to capital to execute our growth plan, including the organic growth of our retail presence and product portfolio in addition to the pursuit of strategic acquisitions, with the goal of being a top three operator in the states in which we operate.”

Verano is the third Chicago-headquartered cannabis company to list on the CSE, joining Green Thumb and Cresco Labs, the Chicago Tribune reports. Choice Consolidation, also based in the Windy City and led by former Cresco President Joe Caltabiano, filed an updated prospectus on February 12 seeking to raise $150 million through an initial public offering also for listing on the CSE.

In a Green Thumb IPO last week registered with the Securities and Exchange Commission an undisclosed institutional investor bought $100 million worth of the subordinate voting shares, according to the Tribune.

Verano launched in Illinois as a medical cannabis company in 2014.

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New Jersey Has Arrested Over 6,000 People for Cannabis Since Legalization Vote

2/17/2021

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New Jersey police have arrested more than 6,000 people for low-level cannabis possession despite voters approving legalization reforms last November, according to a state judiciary report outlined by NJ.com. In January, police arrested 2,378 people for possessing less than 50 grams of cannabis, an increase from the 2,125 people arrested for possession in November and 1,703 arrested in December.

Prior to the November 2020 vote, police in the state arrested more than 100 people a day for possession, the report says. Shortly after voters approved the legalization bill state Attorney General Gurbir Grewal directed all prosecutors to hold off on trying low-level cannabis crimes but the guidance stopped short of prohibiting arrests.

The low-level possession arrests come as lawmakers and Democratic Gov. Phil Murphy attempt to come to an agreement on legalization bills required by the ballot initiative, which was approved by 2.7 million Garden State voters. The Legislature has approved a bill to enact the reform; however, Murphy has so far refused to sign it, seeking a companion measure to ensure there are penalties for underage use and possession. Earlier this month an Assembly committee approved so-called “clean-up” legislation to meet the governor’s demands.

Chris Goldstein, of NORML, told NJ.com that the arrests are a “huge concern.”

“I think the confusion – the dangerous confusion – isn’t among consumers. I think there’s a dangerous confusion among the police and prosecutors out there. The problem is police are still enforcing prohibition. I think they need a clearer directive.” – Goldstein to NJ.com

Amol Sinha, executive director of the ACLU of New Jersey, described the continued arrests as “an injustice.”

“The numbers should be zero,” he said in an interview with NJ.com. “The fact that we are making significant numbers of arrests every single day – dozens of people whose lives are being upended. Even though they’re not being prosecuted, that interaction with law enforcement could escalate.”

Once Murphy signs the legalization bill into law, the low-level possession charges become moot and Grewal’s directive all but ensures those arrested since November will not be prosecuted. Moreover, some argue that the possession clause of the initiative took effect on January 1 and that the arrests are unlawful.

The deadline for the governor to act on the bills is February 25. If he doesn’t sign them or veto them, they will take effect without his signature.

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Former NBA All-Star Chris Webber Launches $100M Cannabis Social Equity Fund

2/17/2021

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Former National Basketball Association (NBA) All-Star Chris Webber has launched a $100 million cannabis-focused private equity fund to invest in companies led by entrepreneurs of color. The fund is in partnership with Jason Wild and his firm JW Asset Management LLC.

JW has actively invested in the cannabis space since 2014 with over $2 billion in assets under management, investing in numerous industry leaders spanning multi-state operators, technology, and retail companies, according to a press release.

Webber, who founded Webber Wellness as part of the partnership, said it is “crucial that we diversify leadership within the cannabis industry and level the playing field for people from our communities.”

“As our country moves closer to federal legalization, I believe it is more important than ever to empower the next generation of cannabis leaders in a tangible way. I’m thrilled to team up with Jason on this endeavor – he’s a visionary in this industry and understands the urgency of supporting minority business leaders in this space.” – Webber in a statement

Wild, founder and chief investment officer of JW, said “the legal cannabis industry can only grow to its full potential when all stakeholders have a seat at the table.”

“…I feel that it is my responsibility to play an active role in eliminating barriers to entry for individuals that have been disproportionately targeted by the War on Drugs,” Wild said in a statement. “I look forward to partnering with Chris and his team to elevate talented entrepreneurs and build a more inclusive industry.”

According to a Marijuana Business Daily report, more than 80% of cannabusinesses are owned by White people, with just 10% owned by Black and Hispanic people.

Webber joins several former NBA players in the cannabis space, including Viola Brands CEO Al Harrington, who also operates an industry incubator program for Black industry entrepreneurs and partnered with former teammate Larry Hughes on two dispensaries and a cultivation and processing center in St. Louis, Missouri; John Salley, who owns Deuces22, a stake in GreenSpace Labs, and an industry insurance plan; and Shawn Kemp who holds an ownership stake in a dispensary the bears his name.

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Delaware Awards New Medical Cannabis Licenses

2/17/2021

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Delaware has issued three new medical cannabis licenses, essentially doubling the state’s number of access points for cannabis patients by the end of the year, The Cape Gazette reports.

After requesting applications for licenses in the fall, the state’s medical cannabis program announced the three license awardees last week. The three vendors — Valor Craft Cannabis Company, CannaTech Research Inc., and EzyCure — were selected out of ten other applicants and plan to open five new dispensaries across Delaware over the next year. The additional locations will essentially double the state’s number of dispensaries, of which there are currently six.

Delaware has historically struggled to provide for cannabis patients after grossly underestimating the number of people in the state who would sign up for the program. According to Paul Hyland, Director of the Office of Medical Marijuana, the state estimated when the program was first established in 2011 that 4,700 to 5,000 people would sign up. Today, the state has 11,500 registered patients with several card types available.

Adult-use considerations

Delaware state Auditor Kathy McGuiness, meanwhile, has put her support behind adult-use cannabis reforms. Citing high poll numbers for legalization and other East Coast states adopting the policy, she said in a special report issued in January, “It’s time to legalize it.”

“Each year that we fail to capitalize on this opportunity means more money could flow to neighboring states instead of being invested here. It is time Delaware pursue legalizing marijuana.” — McGuiness, via The Cape Gazette

According to McGuiness’ report, Delaware could add up to 1,400 jobs in a five-year period upon the passage of adult-use cannabis reforms. She does remain cautious in the report, however, noting that her support for legalization does not mean she supports cannabis consumption. Instead, she notes that adult-use legalization in the state would curb “black market” activity, as well as reduce access for minors and lead to additional tax dollars.

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Report: Majority of Nevada Cannabis Industry is White and Male

2/17/2021

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The majority of cannabis industry operators in Nevada are white, male, and older than 34-years-old, according to a Cannabis Compliance Board (CCB) report dated January 29. The 5,501 returned surveys by registered industry agents included a 100% response rate from company owners, officers, or board members of cannabis companies. In all, the CCB sent 9,890 surveys.

The survey found 58% of respondents were male, with 38% female (2% declined to answer); 53% identified as white, 24% identified as Hispanic, Latino, or Spanish, 11% identified as Black, 6% identified as Asian, and about 3% identified as American Indian.

CCB Executive Director Tyler Klimas told the Nevada Independent that the report could help address the industry’s lack of diversity and potentially lead to the creation of social equity licenses. He added that the first Cannabis Advisory Commission subcommittee would be focused on social equity issues.

“If something like that moves forward, then that right there is an opportunity to bring some new people into the industry and focus on diversity if we’re going to issue new license types.” – Klimas to the Independent

Most company officers and executive board members were 35 to 44-years-old, while the majority of owners or managers, employees, and consultants were between 25 to 34. Twenty percent of responding consultants were 18 to 24-years-old; the demographic also comprised about 18% of industry employees. Those 55 to 64-years-old predominately served on the board of directors or as an executive board member, 13% and 11%, respectively.

Of the respondents, 49% were affiliated with a retail dispensary, 42% with cultivation, 28% with production, 12% with distribution, 7% with testing laboratories, and 8% with “another type” of establishment, including consulting and delivery.

The U.S. Census Bureau estimates that 48% of Nevadans are white, 29% are Hispanic or Latino, 10% are Black, 8.7% are Asian, and 1.7% are Native American.

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Marijuana Gardens AZ Now Selling Outdoor Grow House Kits

2/16/2021

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Tempe, Arizona, February 16, 2021 — Tempe, Arizona-based, Marijuana Gardens AZ, LLC announces the production and sales of turnkey Outdoor Marijuana Grow House Kits and premium gardening services for those who suffer chronic pain or like to enjoy the use of recreational marijuana.

With the passage of the Smart and Safe Act (Arizona Proposition 207), the use of recreational marijuana is not only legal in Arizona, but also, residents are allowed to grow and harvest for personal use up to 12 marijuana plants per household. With a Prop 207-compliant outdoor marijuana grow house, Arizona residents can start growing their own marijuana garden today.

With a small, upfront investment, Marijuana Gardens will construct an attractive and secure outdoor grow house with all equipment and soils needed to grow marijuana plants. Furthermore, using seeds customers obtain through a third-party provider, the company will plant its customers’ first harvest.

With a 6 plant grow house at the residence and employing proper cultivation, customers can expect their marijuana grow house to produce between 50 to 70 ounces of marijuana each year. Double that for 12 plants.

“With marijuana selling for upwards of $250 per ounce, our customers can save a significant amount of money growing their own,” says co-founder Dante Schettino.

Marijuana Home Gardens also offers optional service contracts where skilled marijuana growers will come to its customers’ homes on a weekly basis and cultivate the plants and treat the soil to ensure a constant crop.

“This isn’t your mother’s vegetable garden where you jam some seeds in the ground and walk away,” says Shettino. “If you don’t have experience in growing marijuana you are going to waste a lot of time and money, not to mention risking a complete loss.”

Marijuana Home Gardens provides premium organic soil and nutrients and combines them with expertise in cultivation to maximize growth. “Using highly popular auto flower seeds, we can take you from seed to smoke in 90 days,” says Schettino.

About Marijuana Home Gardens
Based in Tempe, Arizona, Marijuana Home Gardens provides outdoor grow house kits, gardening services, and other marijuana harvesting services for Arizona residents. For more information on Marijuana Home Gardens, visit marijuanahomegardens.com or contact us at sales@marijuanahomegardens.com or call (480) 780-6763.

For more information on Marijuana Seed Connect, visit Marijuana Seed Connect.

MEDIA ONLY CONTACT
Dante Schettino
Co-Founder, Marijuana Home Gardens
(480) 780-6763
info@marijuanahomegardens.com

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humboldt hemp

Humboldt County Bans Hemp Production

2/16/2021

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The Humboldt County, California Board of Supervisors last week made permanent its ban on hemp production in incorporated areas, the Times-Standard reports. The unanimous decision extends the county’s current hemp ban, which was enacted in 2018 and was set to expire in May.

The board will likely amend the ban to allow noncommercial hemp cultivation for research purposes, the report said, noting that the College of the Redwoods expressed interest in cultivating hemp for educational and research purposes last year. The board drafted an exception last year for the college.

The ban does not apply to cities and towns, who are allowed to set their own rules, but Humboldt County Agricultural Commissioner Jeff Dolf said that there were “only two (hemp) registrants within the incorporated jurisdictions of Arcata and Rio Dell.”

The Planning Commission sought the ban in 2019 to address concerns from medical and adult-use cannabis growers who said hemp cultivation could lead to cross-pollination and the introduction of new pests and pathogens. Humboldt County is widely recognized for its long history of high-quality cannabis cultivation.

Ross Gordon, policy director for the Humboldt County Grower’s Alliance, told the Times-Standard that the vote is “the outcome of over two years of discussion and public process.”

“To begin with, the moratorium that was passed in 2018 was continued in 2019 with several town halls and community discussions…at which many cannabis farmers attended and explained the many risks that industrial hemp poses to the cannabis industry here. …We have a world-renowned cannabis industry. We have the highest density of cannabis farms of anywhere in North America and perhaps the world. Protecting that industry should be our top priority.” – Gordon to the Times-Standard

However, during public comments, some residents opposed the ban. Benjamin Franklin Grant called it “a job killing bill.”

“Tragically, businesses that have started here that make hemp-derived products are moving to Oregon and other places because they can’t function or operate here,” he said during his comments. “We’re losing money in multiple ways and robbing our community members of the opportunity to create jobs and make money for themselves.”

Sunshine Johnston, owner and operator of Sunboldt Grown Farms, warned the ban would “just go from one prohibition to another,” adding that products high in CBD and low in THC are often classified as industrial hemp.

“We could be a premier growing region for medicinal CBD and there’s a lot a lot of people that desire that medicine,” Johnston said during her comments.

Supervisor Mike Wilson suggested that the board could implement a “special permit” for some hemp production in the future.

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kentucky cannabis

Cannabis Legalization Bill Introduced in Kentucky

2/16/2021

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Democratic Kentucky state Rep. Rachel Roberts has filed a bill to legalize cannabis and expunge low-level cannabis crimes in the state. The measure would allow home cultivation of up to five mature and five immature plants but requires home growers to pay $250 for a permit.

The Alcoholic Beverage Control Board would oversee industry licensing and those possessing one license type could not hold a license from another category. Retail licensees could have, with some restrictions, multiple locations in the state, according to a press release.

Roberts said the approach, which mirrors the state’s alcohol regulations, “keeps any company from monopolizing the market and artificially raising prices.”

“Fifteen states, including neighboring Illinois, have legalized cannabis and are reaping its considerable benefits. Kentucky has been desperate for new revenue for years to deal with rising costs in education, public employee pensions and healthcare. It is time to take advantage of the revenue from this growing market and stop the illegal trafficking of marijuana. By doing this, we could see as much as $100 million annually in new tax revenue, money that could make a real and lasting difference. Many Kentuckians would also be helped by having their criminal record expunged, while farmers would have a new crop rivaling what tobacco was for many decades.” – Roberts in a statement

Under the proposal, 25% of cannabis-derived revenues would be used for addiction treatment and for social equity programs. The remainder would be deposited into the state’s general fund.

The measure was introduced last week and is currently in the House Committee on Committees.

A Foundation for a Healthy Kentucky’s Health Issues Poll last year found 59% support for allowing adults to buy and use cannabis “under any circumstances” while 49% of respondents supported recreational cannabis legalization.

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