Canopy Growth is laying off another 200 employees at its facilities in Canada, the U.S., and the United Kingdom, Yahoo Finance Canada reports. The company did not indicate which departments the cuts are coming from.
The round of cuts follows the shutdown of two of the company’s large greenhouses and layoffs of about 500 employees last month. The firm also laid off 200 retail employees recently – albeit temporarily – amid the coronavirus pandemic, according to the report. Two weeks ago, the company announced it was taking steps to restructure its global operations, announcing it was selling off its operations in South Africa and Lethoso, shuttering its indoor cultivation facility in Saskatchewan, ending its hemp farming operations in New York, and closing its Colombia-based growing facility. Those changes led to the loss of about 85 full-time positions, nearly half of them from the Colombia operation.
CEO David Klein told Yahoo that a “new vision” for the company will be revealed when it reports its quarterly earnings on May 29.
“Although difficult, the decisions that have been made over the last few months are to allow Canopy Growth to remain focused on the areas where we are winning and ensure that we are delivering the highest quality products to our consumers in every market where we operate.” – Klein in a statement to Yahoo
In February, about a month after he took over for longtime CEO and founder Bruce Linton, Klein alluded to “right-sizing” the business over 90 days.
Advanced Nutrients, one of the cannabis industry’s biggest and most successful cultivation nutrient brands, reported this week that a truck carrying a shipment of $250,000 worth of nutrients was stolen.
The truck and trailer — which were en route from the company’s main facility in Woodland, Washington to a warehouse in Valencia, California — were reported stolen in Riverdale and later recovered in Oakland, but the truck had been “ransacked;” its contents, $250,000 worth of cannabis nutrients, were missing.
The stolen truck, which was eventually recovered in Oakland, California. Photo credit: Advanced Nutrients
Advanced Nutrients founder Michael Straumietis said that the cannabis growers who rely on their product will emerge as the theft’s “real victims” once the supply chain break is fully realized.
“Cultivating high-quality cannabis is how they make a living. I can only hope that the cannabis grown from these stolen nutrients will go toward easing some of the pain and suffering in the world right now. Because make no mistake, cannabis is helping to heal humanity. However, it’s unfortunate someone felt the need to steal from our community.” — Straumietis, in a press release
Clarie Darnell, a spokesperson for Advanced Nutrients, told the Fresno Bee that the firm had hired a shipping company to deliver the product and the driver had stopped overnight when the grand theft occurred. Darnell said that the shipment was insured.
Illinois Gov. J.B. Pritzker (D) has indefinitely pushed back the date for awarding the state’s social-equity cannabis licenses amid the coronavirus pandemic, the Chicago Sun-Times reports. The approvals were expected on Friday, but the governor plans to sign an executive order delaying the licenses until his coronavirus-related disaster order is lifted or the state Department of Financial and Professional Regulation sets a new date.
Toi Hutchinson, Pritzker’s senior adviser for cannabis control, told the Sun-Times that the administration “remains committed to creating a legal cannabis industry that reflects the diversity of Illinois residents.”
“We recognize that countless entrepreneurs were looking forward to May 1 and the next step it represented for Illinois’ adult use cannabis industry. However, the ongoing COVID-19 pandemic has caused delays in the application review process. This executive order will help ensure that we continue to build out this industry in a deliberate and equity-centric manner.” – Hutchinson to the Sun-Times
According to the Financial and Professional Regulation Department, more than 600 of about 700 applicants for dispensary licenses qualified for extra points on their applications by meeting the state’s social equity criteria: living in an area adversely affected by the War on Drugs, having a cannabis-related criminal record, or having a family member that meets the criteria, the report says.
Dan Pettigrew, who runs Viola Brands, which he started with former National Basketball Association player Al Harrington, said that dispensaries – which are considered essential businesses during the state’s coronavirus shutdown – are “killing it with limited competition” and that the current operators are all majority-owned by white people.
“They’re getting a huge advantage,” Pettigrew said to the Sun-Times. “That situation has nothing to do with coronavirus.”
Illinois‘ stay-at-home order is set to expire May 31. The state has reported 50,355 confirmed coronavirus cases and 2,125 deaths.
Cannabis prisoners in the U.S. — whether they are pre-trial or serving a life sentence — have had their punishments de-facto upgraded to potential death sentences in the wake of COVID-19, which has swept rapidly through penitentiaries around the country.
Advocates have repeatedly called for the release of at-risk individuals and nonviolent drug offenders over the past month in light of the coronavirus pandemic and the unique threat it poses to prisoners who, due to the overcrowded state of U.S. prisons, are incapable of practicing social distancing and, in many cases, even maintaining sanitary conditions and personal hygiene.
In total there are more than 40,000 prisoners still locked up for nonviolent cannabis-related infractions, with hundreds of thousands more imprisoned for other nonviolent drug charges. These stories highlight just some of the prisoners who remain locked up despite the country’s political and cultural shift with regard to cannabis.
Facing death over a dub-sack
Fate Winslow, 52, is serving a life sentence without parole at the famously-overcrowded Lousiana State Penitentiary in Angola, the site of a former slave plantation and, now, the country’s largest prison.
Winslow, who is black, was convicted in 2008 after he was caught selling $20 worth of cannabis to an undercover police officer. His case also represents the intense racial disparities present in the U.S. criminal justice system — he was sentenced to spend his life in prison based on votes by 10 white jurors; only two jurors, both black, voted not to convict. Just last week, the Supreme Court banned non-unanimous jury convictions for serious crimes, due to concerns about racial prejudice in the justice system. Following Winslow’s conviction, prior nonviolent offenses on his record bumped him up to a mandatory life sentence with no chance for parole.
Fate Winslow, imprisoned for life without parole over cannabis charges. Image credit: Last Prisoner Project, via Change.org.
Today, Winslow faces a new threat: COVID-19.
“We are still packed in like sardines,” Winslow told The Appeal several weeks ago, shortly after the pandemic started dictating the mainstream news cycle. “The prison doesn’t supply anything for us. No sanitizer, no masks, no hand soap, nothing.”
Winslow said there had been an intense sickness that swept the prison and spooked the guards, who started wearing masks while on duty.
“We aren’t sure what it was, but I thought I was going to die. I felt so bad when I had it,” he said. “Just last night, an inmate was taken out by an ambulance team. I’m not sure what was wrong with him, but the guards refused to come inside the dorm to punch the time clock until he was taken out of the dorm.”
Imprisoned licensee
Skylar Walker, a former multi-state cannabis licensee who is now serving a five-year prison sentence in Florida, was arrested in Texas for illegally transporting cannabis that had been legally grown in California. Before his imprisonment, the Walker family business, Pharm Aide Pharms, was licensed in California, Colorado, and Oklahoma.
Skylar Walker of Pharm Aide Pharms was sentenced to five years in prison for moving cannabis that was legally grown in California through Texas. He is now housed at a Federal Prison Camp in Florida and his life is in danger due to the coronavirus pandemic. pic.twitter.com/pa8rY6mh8W
— The Last Prisoner Project (@lastprisonerprj) April 24, 2020
Skylar’s father Wade Walker said his son did something “that he shouldn’t have done” but that prosecutors ultimately gave him “a sentence that was just crazy in this day and time,” Edibles Magazine reports.
“There was definitely time to be done, but it should’ve been around 24 months,” Walker said. Prosecutors, however, were able to use Walker’s involvement in various state-legal cannabis markets as evidence of “relevant conduct” and increased his prison sentence.
Today, Walker is serving his sentence in a Florida prison and spends his days confined to a small dorm room with 11 other men. Most of the inmates around him are also imprisoned on nonviolent drug charges.
16 years for running a dispensary
Heavy-handed punishment for legal cannabis industry operators is nothing new. Just last year, Michigan cannabis dispensary operator Danny Trevino was arrested and sentenced to nearly 16 years in federal prison for his conduct in the medical cannabis industry.
Before his imprisonment, Trevino ran the Hydroworld dispensaries in Lansing, Grand Rapids, Jackson, Flint, and Mount Pleasant. According to prosecutors, however, Trevino was doing so illegally because drug-related charges on his criminal record should have prevented him from entering the medical cannabis space.
On Tuesday, a judge sentenced Danny Trevino to 16 YEARS in federal prison for operating a medical marijuana facility in Michigan, where recreational sales are now legal. To learn more about the case go to @lastprisonerprj@GovWhitmerpic.twitter.com/i8AJbRg4Ez
Trevino’s attorney said, “He thought he was legal,” but the entrepreneur was ultimately convicted of 10 federal felony charges and given a 15 years and 6 months sentence. Some legal experts have suggested that the sentence was “on the very lower end” considering that he faced federal charges, but 15+ years for growing a plant in a state where it has been legalized for medical use is the definition of cruel and unusual punishment.
Additionally, Trevino and his family believe that he was “selectively prosecuted” for being Mexican, MLive reported.
COVID is claiming prisoners already
It’s important to reiterate that COVID-19 is not a looming or potential threat — innocent people are dying now, today, as a result of our gross over-incarceration and the inhumane criminalization of drug users.
The first federal prisoner to die from coronavirus was Patrick Jones, a nonviolent drug offender who passed away in March only 13 years into his 27-year sentence. Since Jones’ death, at least 29 other inmates in the federal system have died.
This week, officials announced the first female federal prisoner to fall victim to the virus: Andrea Circle Bear, a South Dakota Native American woman who was pregnant when she was admitted to prison in March, died from coronavirus complications this week. She had been sentenced to 26 months in prison for “maintaining a drug-involved premises,” NBC News reports.
Circle Bear’s baby was born via C-section before she passed, though the baby’s condition was not immediately clear. However, as a result of our nation’s callous and inhumane treatment of drug users — sentencing them to prison rather than providing the treatment they need — her child will be forced to grow up without a mother.
Ending the cruelty
The cannabis industry strives to present itself as a progressive and loving community, but it’s time to step up or shut up. Those who would argue that cannabis is apolitical or “just like any other industry” are ignoring the severe injustice faced by drug war prisoners in the age of the coronavirus pandemic. Anyone who is profiting from cannabis or the culture of this movement owes a debt to those who made the current reality of legalization possible with their civil disobedience.
Want to help? The Last Prisoner Project has published a variety of resources for those who want to take action, including a petition that has received over 17000 signatures since its launch, and a relief fund which has raised over $40,000 to help incarcerated people directly with assistance to fund phone calls, medical care, commissary funds, and legal fees. Licensed cannabis retailers can also join the LPP’s “Roll it Up for Freedom” change donation program. If you are unable to donate, please contact your local officials and pressure them to make the right decision and release cannabis and nonviolent prisoners before more lives are lost.
Santa Clara County, California officials are expected today to reduce or expunge more than 11,500 backlogged cannabis convictions for more than 9,000 people, NBC Bay Area reports.
Presiding Judge Deborah A. Ryan said she hopes the process “will provide a sense of closure to those individuals” impacted by the reforms. Cannabis convictions that involved firearms possession, child endangerment, or destruction of the environment are not subject to the criminal reform provisions under the state’s legalization law.
“Having a clear record also will assist those seeking employment, an issue that is especially important as businesses begin the process of reopening.” – Ryan in a statement via NBC Bay Area
In 2018, then-Gov. Jerry Brown signed a bill to help streamline cannabis conviction record expungement. Experts estimate up to 220,000 cases could be converted to a lesser charge or removed from records.
Last year, Los Angeles County worked with Code for America to expunge 62,000 felony cannabis convictions and 4,000 misdemeanor convictions dating back to 1961. The tech firm also worked with the city of San Francisco to expunge 9,362 felony and misdemeanor cannabis convictions dating from as far back as 1975.
The process of identifying convictions eligible for expungement or reduction was completed through a collaboration between the Santa Clara County District Attorney’s Office, the Santa Clara County Office of the Public Defender, the Santa Clara County Technology Services and Solutions, and the Superior Court Information Services Bureau.
From 2018 to 2019, legal cannabis sales worldwide grew 46 percent to $14.7 billion, according to market researchers BDSA and Arcview Market Research. Comparatively, the sector saw a 16 percent growth in 2018.
The analysts say recreational cannabis sales in Canada, California, and Massachusetts, and medical cannabis expansions in Florida and Oklahoma represented the largest contributors to 2019’s sales growth.
Roy Bingham, BDSA co-Founder and CEO said that the industry is expected to experience a revenue growth rate of 21 percent through 2025 and that it “may soon reach a watershed moment when U.S. states, faced with a looming global recession, consider cannabis legalization as a new and potentially lucrative source of tax revenues.”
“By relaxing product restrictions and adopting more of a free-market approach to licensing, states like Florida are realizing the potential of medical cannabis sales. In addition, light regulation and low tax rates in states like Oklahoma enable citizen access, greater performance over the illicit markets and a healthy tax revenue stream for the state.” – Bingham in a statement
The analysis forecasts global cannabis sales will reach $47 billion by 2025 and U.S. legal cannabis sales would represent 72 percent of those total global sales by 2025 – down from 84 percent in 2019. BDSA projects that U.S. legal cannabis sales will increase at an 18 percent compound annual growth rate.
The report also notes that international medical cannabis spending – excluding the U.S. and Canada – jumped 64 percent in 2019, from $446 million to $732 million. The researches attribute the rise to the expansion of medical cannabis programs in the Germany, Australia, and Mexico.
The authors note that the report is “unchanged in the context” of the coronavirus pandemic.
The number of class action lawsuits in the U.S. against publicly traded cannabis companies more than doubled from 2018 to 2019 from six to 13, according to a report from global law firm Goodwin. Most of the legal actions focused on company disclosures related to operations, transactions, or financial restatements and internal controls, the report says.
More than half of the class action lawsuits against cannabis companies filed in the U.S. have been against Canadian firms traded on U.S. stock exchanges. Class action lawsuits in the cannabis industry from 2018 to 2019 include:
– The 2018 lawsuit against Paragon Coin Inc. who were sued over their initial crypto coin offering – PRG Tokens – after plaintiffs alleged that the tokens were unregistered securities. That case is ongoing.
– The 2018 lawsuit against CV Sciences, a CBD company accused of making false and misleading statements about its infused chewing gum product’s patent application. That case is ongoing.
– The 2018 lawsuit against licensed Canadian producer Cronos Group over alleged misleading and false statements over the size of its distribution agreements and positive statements about the state of its businesses. That case was ultimately consolidated with another case and dismissed.
– The 2018 lawsuit against Namaste Technologies Inc. over their claim that they were close to selling U.S. subsidiary Dollinger Enterprises US Inc. and, instead, just sold the company to other Namaste executives. That case was voluntarily dismissed by the plaintiff.
– The 2018 lawsuit against India Global Capital, Inc. over false and misleading claims about the quality of one of the company’s manufacturers of a CBD-infused beverage. That case is ongoing.
– The 2018 investor-led lawsuit against Canadian-based licensed producer Aphria over false and misleading statements over its Latin American assets. The case is ongoing.
– The 2019 lawsuit against Liberty Health Sciences Inc., a Canadian company that serves as the U.S. operational entity for Aphria that was sued over false and misleading statements in connection with the company’s investments and transactions. That case is ongoing.
– The 2019 lawsuit against 22nd Century Inc. over alleged false and misleading statements about the company’s attempt to raise capital. The case is ongoing.
– The 2019 lawsuit against KushCo Holdings Inc. accusing current and former business officers and the company auditor about misleading and false statements about the firm’s financial position. That case is ongoing.
– The 2019 lawsuit against Pyxus International Inc. which accuses the company’s CEO and CFO of false and misleading statements about the firm’s financial position. That case was voluntarily dismissed by plaintiffs.
– The 2019 investor-led lawsuit against CannTrust Holdings. Inc., over failure to disclose that the company’s Pelham, Ontario facility was out of compliance with Health Canada rules. That case is ongoing.
– The 2019 lawsuit against Curaleaf Holdings Inc. over false and misleading statements about the company’s CBD products. The case is ongoing.
– The 2019 lawsuit against Greenlane Holdings, Inc. claiming the company made false and misleading statements about its e-cigarette business. The company also distributes CBD and vaporizers. That case is ongoing.
– The 2019 lawsuit against Sundial Growers Inc. over alleged U.S. Securities Act violations. The case is ongoing.
– The 2019 case against Zynerba Pharmaceuticals Inc. over false and misleading statements and failing to disclose events adverse to its business. The case is ongoing.
– The 2019 case against Canopy Growth Corp. which alleges that the company filed to disclose to investors that the company was experiencing weak demand for its soft gel and oil products. The case is ongoing.
– The 2019 lawsuit against Canada’s Aurora Cannabis Inc. over its alleged failure to disclose it was planning to pause construction at one of its facilities. That case is ongoing.
– The 2019 lawsuit against Hexo Corp. alleged that the Canadian firm made false and misleading statements about its inventory and internal revenue figures. The case is ongoing.
– The 2019 lawsuit against Trulieve Cannabis Corp. over false and misleading statements about the value of its biological assets. The case is ongoing.
Michael Jones, partner in Goodwin’s securities and shareholder litigation, white collar defense, and cannabis practices, said that cannabis companies might be a “bigger target for securities class action lawsuits” due to “regulatory uncertainties and overall market volatility in the industry.”
Denver – April 23, 2020 – Simplifya, the leading provider of regulatory and operational compliance software for the cannabis industry, announced today that it has closed $1.5 million of its currently over-subscribed bridge round. Based on strong interest and preliminary commitments, Simplifya expects to close an additional $1 million as part of the expanded round in the next 30-45 days.
EDITOR’S NOTE: Simplifya recently published a free compliance guide for licensed cannabis operators, outlining their top 8 tips for an ironclad compliance workflow. Click here to download your free copy!
At a time when investment and deal-making in the cannabis industry have seen a sharp downturn, Simplifya’s ability to close on funding is a significant demonstration of confidence by both new and existing investors. Over the course of 2019, Simplifya’s client base and revenue have nearly doubled. The company continues to diversify its core product offerings to help streamline and manage operational compliance, and establish channel partnerships and collaborations, such as the collaboration announced on April 6, 2020, with industry leader Akerna (Nasdaq: KERN), developer of the cannabis industry’s first seed-to-sale enterprise resource planning (ERP) software technology (MJ Platform®). Simplifya’s ongoing conversations with major channel partners, industry associations, financial institutions, and insurance companies continue to drive awareness around the critical importance of compliance and risk mitigation to an industry as challenging as cannabis.
Simplifya’s newest product, Simplifya Verified has been designed to provide businesses with an independent verification system of cannabis licenses in markets across the country and in Canada. Simplifya Verified is a fast, easy-to-use search engine that provides all of the data points needed for cannabis license verification, taking the guesswork out of business transactions and delivering ancillary service companies, like insurance providers and financial institutions, a much-needed risk management and mitigation tool.
“We have been incredibly fortunate to have investors and a board of directors who understand the value of compliance, and the need for risk mitigation in this industry,” said Marion Mariathasan, Simplifya CEO. “Their support, combined with the passion of our team, is what has allowed us to build and innovate the type of content-driven compliance technology that we are bringing to the industry on an enterprise-level.”
While cannabis has been deemed an essential business during the COVID-19 pandemic, operators are still faced with ever-changing regulatory challenges related to sales, delivery, and distribution. Compliance, especially during this time, remains a critical component of success and survival; Simplifya’s regulatory content and easy-to-use interface enable licensed operators to manage and maintain compliance in an efficient and effective manner.
Simplifya’s core operational compliance product takes the guesswork out of the confusing and continually changing regulations for licensed operators. Currently available in 18 states, key features include straightforward self-audit checklists, SOP templates customized by license type and tied directly to the state regulations, and an online Smart Cabinet document storage system.
“At the rate and pace at which we are growing, it is our hope that Simplifya will someday serve as the nucleus for compliance and risk mitigation standards and services for the cannabis industry,” continued Mariathasan. “We know that compliance will be critical to the expansion and legitimacy of the cannabis industry as it continues to grow, and we are proud to do our part to support it.”
About Simplifya Simplifya is the nation’s leading regulatory and operational compliance tool for the cannabis industry, empowering small and large businesses to proactively manage compliance tasks across all facilities and license types. Simplifya’s web-based self-auditing system distills complex state and local regulations into a series of simple yes-or-no questions to facilitate self-audits, identify areas of non-compliance, manage remediation efforts, and generate management and audit reports. Simplifya’s SOP feature automates the assignment, tracking, and versioning of standard operating procedures, while its Smart Cabinet digital filing system houses all of a business’s required compliance and operational documents in one place.
The Food and Drug Administration has issued warnings to two companies over their claims that CBD could treat opioid addiction or serve as alternatives to pharmaceutical drugs. The letters were sent to Washington’s BIOTA Biosciences LLC and New Hampshire’s Homero Corp which does business as Natures CBD Oil Distribution.
FDA Principal Deputy Commissioner Amy Abernethy said the agency would crack down on companies claiming CBD is a treatment for opioid addiction and that the cannabinoid “has not been shown to treat opioid addiction.”
“Opioid addiction is a real problem in our country, and those who are addicted need to seek out proper treatment from a health care provider. There are many unanswered questions about the science, safety, effectiveness and quality of unapproved products containing CBD, and we will continue to work to protect the health and safety of American consumers from products that are being marketed in violation of the law.” – Abernathy in a statement
BIOTA was marketing injectable CBD products as well as an injectable curcumin products claiming they could treat opioid addiction. Natures CBD was selling a variety of CBD products making similar claims.
Last month, the FDA provided an update on its work on CBD policy and indicated that it was “monitoring the marketplace” and “would take appropriate action against unlawful CBD products that pose a risk of harm to the public,” including those making therapeutic claims.
The agency has given the CBD companies 15 business days to correct the violations or face potential action.
Denver, Colorado-based cannabis tech company Veriheal is offering $10,000 in scholarships to students interested in the cannabis industry. The scholarship, however, is not limited to any specific academic concentration. Winning applicants will be selected based on the best combination of “sustainability, community, awareness, and innovation for the future of cannabis not only as an industry but as a medical medium,” the company said.
In a press release, the company indicated that focuses such as pharmacology, botany, and business would be relevant for the scholarships. The scholarships will be awarded to 10 students at $1,000 each, according to the application website.
“Higher education is certainly an investment in the future. Veriheal is willing to take stock in motivated students who want to innovate and contribute extensively to the cannabis sector. In a budding industry that is constantly experiencing new developments, it’s crucial to have circulation of intrigue, and fresh minds that are devoted to strengthening progress. Veriheal recognizes this importance and is inspired to lend a helping hand wherever possible to promote worldwide accessibility to medical cannabis.” – Veriheal in a press release
Traditional colleges and universities throughout the U.S. have launched cannabis-centric degree and certificate programs in the wake of medical, recreational, and hemp legalization, along with several cannabis industry-specific colleges.
Veriheal’s scholarship is open to high school seniors who have signed college letters of intent and current college students. The deadline for applications is July 30.
Police in North Macedonia have issued an arrest warrant for Israeli cannabis company Medivie Therapeutic CEO Menachem Cohen over alleged criminal activities related to the company’s subsidiary in North Macedonia, according to a Globes report. Cohen controls 51 percent of the subsidiary, Kannatek.
Police claim that Medivie has been cultivating crops over the 0.1 percent threshold allowed in the nation, the report says. According to a News1 report, Macedonian authorities tested the company’s plants on April 24 and found THC residue.
In an interview with Globes, Cohen called the situation “Kafkaesque.”
“Our legal advisors say that simple laboratory tests will prove this wrong and that our plants have only 0.037 percent of THC – less than half the minimal permitted amount. We also have all the documents that show that the value chain is managed according to Macedonian regulations including buying the seeds and the police presence at the location during the harvest.” – Cohen to Globes
Cohen told Calcalist that the “mistake…will become evident when the results of the laboratory tests are obtained.”
Medical cannabis under 1 percent THC has been legal in Macedonia since 2016. The law only permits concentrates and tinctures. Lawmakers were set to consider legislation to allow flower products but it was tabled amid the government’s coronavirus response.
In 2018, Medivie inked a $110 million deal to produce medical cannabis for an unnamed European buyer in what was the biggest agreement of its kind by an Israeli cannabis firm at that time.
The U.S. Department of Agriculture has approved Florida’s hemp program bringing the total approved by the agency to 16. The state is set to begin accepting industry applications today.
Agriculture Commissioner Nikki Fried said the approval gives the state’s agriculture industry “a new alternative crop for many years to come” as the Sunshine State deals with the financial impact of the coronavirus pandemic.
“After months of incorporating feedback from the public, growers, and industry stakeholders, we are thrilled that Florida’s hemp industry officially begins now. I thank the USDA for their swift review and approval of our state hemp program. By working closely with our farmers, processors, retailers, and consumers, Florida’s state hemp program will become a model for the nation, will set a gold standard for this emerging industry, and will create billions in economic opportunity for Florida.” – Fried in a statement
According to the agency, the USDA approval took less than a week.
Jeff Greene, co-founder of the Florida Hemp Council, told Hemp Grower that while there are many opportunities for prospective hemp farmers – such as CBD, fiber, and grain production – the industry is “trying to establish itself.”
“For the longest time, it was every man out for themselves, survival of the fittest,” Greene said in the report. “I’ve seen with the collaboration of the Florida Hemp Council board and members that the industry is starting to see itself as a real industry – not just a cutthroat, first-come, first-served. That’s what we’ve been pushing.”
Greene said that with 16 state approvals there will be a “bump in supply” but “with shadowbanning … difficulty in export,” and the pandemic, there is “a limitation in demand.”
Under the state’s rules, there are no application fees for hemp cultivation licenses, but the process requires applicants to be fingerprinted and undergo a background check. Individuals convicted of a drug-related felony over the last 10 years are not eligible for a permit.
Programs from three states and the U.S. Virgin Islands are still listed as “under review,” according to USDA data. Another 18 states will keep operating under their 2014 pilot programs, while just two are pending resubmission to the agency. The USDA has also approved hemp programs for 20 Native American tribes.
Ontario’s cannabis wholesaler entity is reportedly planning to create regulations for a craft cannabis market and to allow for on-site cannabis shops at licensed growers/producers, Marijuana Business Daily reports.
The changes, which were revealed during a recent Reddit “Ask Me Anything” with Ontario Cannabis Store (OCS) Chief Commercial Officer Cheri Mara, are expected to launch after the coronavirus pandemic.
The craft regulations framework would define “what craft means for the Ontario market,” Mara said. “And this definition is going to go beyond just marketing and actually reflect into the roots of craft cannabis growing in the legacy market.”
Mara said OCS will seek feedback when it has finished the regulations.
“The recognition from Canada’s largest cannabis distributor that craft products are substantially different from the factory-farmed options that currently dominate the shelves is a significant development,” said Mark Spear, CEO of Wildfire Collective, an Ottowa-based small-batch craft cannabis producer.
“How the OCS will define craft is the question that remains, but it appears they are taking this exercise seriously and have some of the industry’s top minds working on it.” — Spear, in a statement to MJBizDaily
Additionally, Mara revealed that OCS will be allowing on-site retail locations for licensed cannabis growers and producers. The plan to allow farm-gate sales would allow cultivators to sell directly to consumers.
Mara also announced that OCS indends to reduce retail prices and establish new rules for handling old inventory, selling cannabis seeds and, eventually, selling clones.
Mike Tyson’s cannabis company is hoping to secure the naming rights to Barcelona Spain’s Nou Camp soccer stadium, the BBC reports. It is the first time Barcelona is selling the naming rights to the stadium and they plan to use the revenues fighting the coronavirus.
Tyson’s business partner, Alki David, told the BBC that naming a stadium after the company – SwissX – is something the firm has “specifically been looking for.” SwissX is a Tyson Ranch CBD brand.
“My company is a cannabis company and Spain has a long tradition within the European Union as being a leader or a liberal in the road towards legalization, so it’s evolved quite naturally.” – David to6 the BBC
David said that it “remains to be seen” whether naming the stadium after a cannabis company would tarnish the reputation of LaLiga, the club that calls the ground home.
“This is an opportunity that I am bullish about. It is an historic moment in the history of sport and it fits well with my current plans,” David said in a This Day report. “Contact was opened at the start of the week and I am quietly confident the deal will be secured.”
David indicated that the company is interested in selling “plant medicine products” in the stadium’s concession stands.
The stadium is the largest in Europe by capacity, totaling 99,354 seats. Barcelona gave the naming rights to the Barca Foundation and the organization is seeking a partner for the 2020/21 season. The stadium has never had another name since its opening in 1957.
If approved, it would be the first sports stadium in the world branded by a cannabis company.
The Rochester, New York City Council is considering legislation that would eliminate pre-employment cannabis drug testing for city workers except for public safety positions and those requiring a commercial driver’s license, the Democrat & Chronicle reports.
Mayor Lovely Warren and City Council President Loretta Scott submitted the legislation last week and, in a letter to the City Council, said that removal of the pre-employment drug testing requirement “avoids unfair discrimination against individuals for an activity conducted during non-work hours that may have no effect on their ability to perform the job for which they are applying.”
In an interview with the Democrat & Chronicle, Greater Rochester Chamber of Commerce President and CEO Robert Duffy – a former police chief – noted that THC can remain in the body long after the point of intoxication, while alcohol disappears after a matter of hours and that, “to be fair, those types of things have to be considered.” He added that some chamber members have already stopped testing for THC and there is considerable discussion in human resource circles around the region.
On May 10, New York City will ban all employers from drug testing applicants for THC. In Nevada and Maine – both of which have legalized cannabis for adults – it is illegal to deny someone employment because of a positive drug test for THC.
The Rochester City Council will consider the bill in committee next month before deciding to bring it to a vote. If approved, the changes would take effect immediately.
Democrats in the U.S. House of Representatives have introduced a measure to include cannabis businesses in congressional coronavirus stimulus packages.
The Emergency Cannabis Small Business Health and Safety Act was introduced by Reps. Earl Blumenauer (D-OR) and Ed Perlmutter (D-CO) who last week sent a letter to House leadership urging them to support the legalized cannabis industry in the packages – including pushing for the SAFE Banking Act to be included in relief legislation. Sens. Jacky Rosen (D-NV) and Ron Wyden (D-OR) sent a similar letter to Senate leaders on Wednesday.
Aaron Smith, executive director of the National Cannabis Industry Association, said that the industry employs about 250,000 Americans and has been deemed an “essential service” amid the pandemic but many cannabusinesses will not survive the financial fallout of the pandemic without assistance.
“They already face disproportionate financial burdens during normal conditions, and the strains created by the coronavirus response are putting them at an even greater disadvantage and jeopardizing their ability to provide vital healthcare services. We are incredibly grateful for the dozens of lawmakers who are urging their colleagues to give cannabis businesses fair access to federal relief funds in these difficult times.” – Smith in a statement
Under current federal policy, the cannabis industry and cannabis-adjacent firms are ineligible for any Small Business Administration programs, including those created as part of the coronavirus response. State-approved hemp businesses, however, are eligible for some relief under the CARES Act.
Last month industry advocates – including the NCIA, National Cannabis Roundtable, Minority Cannabis Business Association, Global Alliance for Cannabis Commerce, and Cannabis Trade Federation – sent a letter to Congressional leadership urging them to open up the programs to the industry.
A SERIES OF VIRTUAL CONCERTS KICKING OFF 4/24 — THE FIRST SESSION WILL FEATURE PERFORMANCES FROM ERIC RACHMANY (REBELUTION), THE EXPENDABLES, OZOMATLI, G LOVE, HIRIE, SATSANG, AND MORE!
MONTEREY, Calif – The California Roots Music & Arts Festival is proud to announce the “The Isolation Sessions.” The festival joins forces with the Last Prisoner Project, a nonprofit coalition of cannabis industry leaders, executives, and artists dedicated to bringing restorative justice to the cannabis industry. The Last Prisoner Project, one of Cali Roots’ nonprofit partners for 2020, is working around the clock to provide assistance and advocate for the emergency release of our incarcerated community during this crisis. During the upcoming stream, fans will be able to donate to Last Prisoner Project’s COVID-19 relief fund for cannabis prisoners. For more information, please visit www.lastprisonerproject.org/covid-19.
The first session will be broadcast online on Friday, April 24th at 6pm PT featuring performances by Eric Rachmany of Rebelution, The Expendables, EarthKry, G Love, Hirie, Ozomatli, Satsang, and more. RSVP at https://bit.ly/2yySU0e
For the past decade, Cali Roots have paved its own unique way in the festival circuit, leading by example on how their event can do more than just entertain. Cali Roots has become synonymous with a lineup heavy with the top performers in the genre, unique, cultivated fan experiences, dedicated to greening initiatives and a commitment to giving back to incredible non-profits. Cali Roots’ ethos is to reduce their impact on the environment by aligning with other like-minded organizations, making earth-wise choices regarding the products purchased, promoting environmental awareness to fans, staff & artists, and continuing to set the bar higher each year in their commitment to sustainability. Their efforts have been recognized by FestX, which selected the event as a finalist for “Outstanding Green Festival” for two years in a row!
The Last Prisoner was founded by long time cannabis activists, Steve and Andrew DeAngelo as well as artist manager Dean Raise. As the United States moves away from the criminalization of cannabis, giving rise to a major new industry, there remains the fundamental injustice inflicted upon those who have suffered criminal convictions and the consequences of those convictions. Through intervention, advocacy and awareness campaigns, the forces behind the Last Prisoner Project will work to redress the past and continuing harms of these unjust laws and policies and are dedicated to making sure that every last victimless cannabis prisoner walks free. Visitwww.LastPrisonerProject.org or text FREEDOM to 24365 to donate and learn more.
Dan Sheehan, co-producer of Cali Roots states, “We are proud to partner with Last Prisoner Project on such important issues during these uncertain times. The Cali Roots community can watch live sets from some of their favorite artists, while positively contributing to Last Prisoner Project’s emergency relief funds.”
Join Cali Roots and Last Prisoner Project on April 24th and take center stage on the virtual screen, streaming into the homes of music fans around the world. Through the innovation of live streaming, join the efforts in providing social distancing approved intimate concerts, while helping to raise money and awareness for the release of nonviolent cannabis prisoners.
Intro by Steve DeAngelo Aaron Frazer (Durand Jones & The Indications) Eric Rachmany (Rebelution) EarthKry The Expendables G Love Hirie Howi Spangler (Ballyhoo!) Kyle Ahern Ozomatli Satsang Ted Bowne (Passafire) Through The Roots
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California Roots Music & Arts Festival Press Contact: Press Junkie PR Ryan Romana // ryan@pressjunkiepr.com and Mercedes Romana // MercedesR@pressjunkiepr.com
Last Prisoner Project Press Contacts: Press Here, Linda Carbone // linda@presshereproductions.com and Katie Leggett // katie@pressherepublicity.com
Medicine Man Technologies Inc. has announced it’s changed its corporate brand name to Schwazze – the name originates from the company’s cultivation technique from the Three A Light methodology.
Shane Sampson, chief marketing and merchandising officer, said the change will help the company realize its vision “of becoming the most admired cannabis company by positively impacting the health, well-being and happiness of our customers, team members and communities.”
“Our new brand, Schwazze enables differentiation as a true leader across all facets of cannabis and marks the next stage of our strategic growth. After finalizing the announced acquisitions, Schwazze will be one of the largest vertically integrated cannabis operators from seed to sale. We are proud to be building a great cannabis company at Schwazze.” – Sampson in a statement
The firm also announced it completed its acquisition of Mesa Organics and its Purplebee’s business. The deal is Schwazze’s first under the new brand and its first since it entered the Colorado market. Mesa operates four southern Colorado dispensaries. Purplebee’s is a cannabis extraction and manufacturing company.
Schwazze CEO Justin Dye called Mesa “a terrific business with strong leadership, talent and strong manufacturing and retail operations.”
“We are excited to take the first step in our acquisition strategy and Mesa Organics and Purplebee’s are a great strategic fit,” Dye said in a statement.
Under the terms of the agreement, which had been unanimously approved by the Medicine Man board of directors, the purchase consideration for the merger is about $2.6 million in cash and approximately 2.6 million in shares of common stock, subject to certain holdback and adjustment provisions.
The company began trading as Schwazze on over-the-counter markets on Tuesday.
The Last Prisoner Project and 4Front Ventures announced this week they would partner to provide liquid disinfectant products to low-security prisons to help reduce the spread of coronavirus among nonviolent drug offenders, Benzinga reports.
4Front announced on Monday that it would dedicate part of its Washington-based production facility to the creation of hand sanitizer, some of which would be donated to prisons who need the supplies. Last Prisoner Project will be in charge of coordinating the donated disinfectant’s distribution with the Department of Corrections.
4Front CEO Leo Gontmakher said the decision was a “no-brainer.”
“We don’t believe anyone should be incarcerated for a cannabis-related offense, much less during a global pandemic. Inmates face tight living conditions which allows the coronavirus to ravage through the population thus making it a breeding ground for illness.” — Gontmakher, in a statement
When the likely effects of the coronavirus pandemic were fully realized last month, Last Prisoner Project founder Steve DeAngelo announced a petition for the release of nonviolent cannabis offenders. Some weeks later, the advocacy group also announced its “Roll It Up for Freedom” change donation program for dispensaries — the proceeds of which will be used to fight for the freedom of cannabis prisoners and to help them rebuild their lives after incarceration.
“Its really a matter of life or death now,” DeAngelo said in a video posted on April 2. “We need to do everything we can to take care of [cannabis prisoners] and get them home.”
A Monmouth University poll found 61 percent of New Jersey voters said they will vote to legalize adult cannabis use in the state when the issue appears on November ballots; 34 percent said they would oppose the reforms.
The poll found the legalization measure was supported by 74 percent of Democrats, 64 percent of independents, and 40 percent of Republicans.
Patrick Murray, director of the Monmouth University Polling Institute, noted that just 5 percent of respondents said they had “no opinion” on legalization, which may have attributed to its popularity in the poll.
“Support for the marijuana ballot measure is widespread in part because many who have no opinion on whether legalization is a good idea figure they might as well vote for it.” – Murray
Nearly the same amount who support legalization (62 percent) said that legalizing cannabis would help the state’s economy, while just 10 percent said it would hurt the economy and 21 percent it would have neither a positive nor negative impact.
Just 27 percent of respondents said that cannabis legalization would lead to an increase in other drug crimes, while 22 percent it would lead to a decrease in other drug crimes, but 46 percent of those polled said it would not have an impact on other drug crimes either way.
Overall, 64 percent of respondents said that they support legalizing possession of small amounts of cannabis for personal use, with 32 percent opposed.
The legalization question, which is set for November ballots in New Jersey, currently reads as follows:
“Do you approve amending the Constitution to legalize a controlled form of marijuana called ‘cannabis’? Only adults at least 21 years of age could use cannabis. The State commission created to oversee the State’s medical cannabis program would also oversee the new, personal use cannabis market. Cannabis products would be subject to the State sales tax. If authorized by the Legislature, a municipality may pass a local ordinance to charge a local tax on cannabis products.”
The ballot question was approved by lawmakers after they were unable to reach a deal during session.
An April 20 YouGov poll found 45 percent of respondents believed that recreational cannabis legislation has been “more of a success than a failure” or “success only,” with 19 percent saying that it was “more of a failure than success” or “failure only.”
Another 26 percent said they didn’t know.
Nearly one in four Democrats polled called adult-use cannabis legislation a success, while 43 percent said it was “more success than a failure.” Just 10 percent of the bloc believed legalization legislation was a failure. Among Republicans, 41 percent said the reforms had some success, compared to 34 percent who believed they were a failure. The majority of independents – 54 percent – agreed that cannabis legalization laws were a success, compared to 27 percent who said they were a failure.
23 percent of respondents 18 to 24-years-old called cannabis legalization laws a “success only” along with 28 percent of those 25-34, 24 percent of respondents 35-44, 17 percent of those 45 to 54, and 13 percent of those surveyed who are 55-plus. At least 32 percent of all age demographics called the reforms “more success than failure.”
Not more than 8 percent of each age group believed cannabis legalization legislation has been “a failure only,” while 17 percent of those 55-and-older believed the laws are “more failure” than success – the age group had the largest share. Twelve percent of polled 18 to 24-year-olds said it was more of a failure, along with 10 percent of those 25 to 34, 9 percent of 35-44-year-olds, and 12 percent of people 45 to 54.
By gender, 22 percent of men and 17 percent of women called the laws a “success only” along with 35 percent of both and women who said they were more success than failure. Another 15 percent of men and 12 percent of women said the reforms were more failure than success.
No region mustered a majority for calling the reforms a failure – the highest was the West at 21 percent. The region also registered the highest number – 70 percent – for calling the reforms a success or more success than failure.
Multi-state cannabis operator iAnthus Capital Holdings is facing a class action lawsuit and its stock trading on the Canadian Securities Exchange was halted for about four hours yesterday after the firm announced earlier this month that it defaulted on its interest payments.
On April 6, iAnthus said it was unable to pay interest obligations of $4.4 million on $157.5 million in debt. In a statement, the company said it was unable to make the payments due to “the decline in the overall public equity cannabis markets, coupled with the extraordinary market conditions” caused by the novel coronavirus outbreak. The firm said it had been unable to secure further financing since December 20, 2019.
CEO Hadley Ford in a statement called the default “a difficult decision” but the management team and board of directors decided it was in the best interest of the company and its stakeholders to spend cash “to maintain the inherent value” of iAnthus’ business operations.
In the April 6 announcement, the company indicated the board had convened a special committee to investigate potential conflict of interest by Ford, determine the prospects of liquidity alternatives, and renegotiate financing arrangements and contracts. The firm also hired Canaccord Genuity Corp. as a financial advisor.
“Additionally, the company will continue to pursue financing options to infuse additional cash into the business, while also exploring other strategic and financial opportunities. At present, there can be no assurance as to what, if any, alternative might be pursued by the company and there can be no assurance that the company will reach any solution with the company’s holders of the secured debentures and unsecured debentures, or as to the terms of any solution, if achieved.” – iAnthus in a press release
On Tuesday, law firm Wolf Haldenstein Adler Freeman & Herz LLP announced they had filed a federal securities class-action lawsuit against iAnthus in the United States District Court for the Southern District of New York. The complaint alleges that the cannabis company “failed to disclose that they had the ability to withhold use of the interest payment escrow or that the interest escrow payment was exhausted, diminished, or otherwise unavailable to satisfy the company’s interest payment obligations.”
The lawsuit announcement notes that iAnthus shares fell 62 percent on “unusually heavy trading volume” on the news of the default and the internal investigation into Ford.
In a news release on Wednesday, iAnthus acknowledged the 4-hour CSE stock shutdown but pointed to the April 6 release for more information. It did not comment on the reason for the halt or the pending lawsuit.
iAnthus currently operates 33 dispensaries in 11 states.
The Department of Health and Human Services (HHS) has awarded a contract to build a federal COVID-19 tracking database to Palantir, a data surveillance firm founded by venture capitalist and cannabis investor Peter Thiel. Thiel is one of the investors behind Privateer Holdings, which owns the cannabis brand Marley Naturals and formerly owned Leafly; Thiel is also President Trump’s most prominent supporter in Silicone Valley.
The COVID-19 tracking database is named “HHS Protect Now” and will rely on data entered by medical facilities, universities, and national, state and local authorities, the Daily Beast reports.
“Trace, track and isolate” is an essential strategy needed to re-open the economy in light of the current COVID-19 crisis, many experts say.
“HHS Protect Now” will include 187 data entry fields, including information like hospital capacity and inventories, supply chain data from the government and industry, diagnostic and geographic testing data, demographic statistics, and state policy actions.” According to the Daily Beast report, President Trump and the COVID-19 task force lead Dr. Deborah Birx have already started using data collected on the platform in the president’s daily COVID-19 press briefings.
“We are using the data aggregated… to paint a picture for the Task Force, and state and local leaders to show the impact of their strategic decisions. For instance, if there are a number of cases concentrated at a hospital next to an airport and a mass transit stop, we can build a predictive model using a transmission chain to predict how quickly the disease will spread, taking into account these factors.” — HHS spokesperson statement, via the Daily Beast
In 2015, Thiel’s venture capital firm “The Founders Fund” made waves by investing heavily in Privateer Holdings, the Seattle-based cannabis investment firm behind many major cannabis brands including Marley Natural, Leafly, and Tilray.
Thiel was a co-founder of PayPal and was the first Silicon Valley mogul to endorse Donald Trump for president in 2016. He has pledged to support President Trump’s re-election in 2020, leading many to question the White House’s choice of Palantir to build out the tracking database.
The Ware, Massachusetts Board of Selectmen have approved a bid by Curaleaf to co-locate a medical cannabis dispensary at the same location as the one in Ware the company currently has licensed for recreational sales, MassLive reports. The company is seeking the medical cannabis license after adult-use sales in the state were halted by Gov. Charlie Baker (R) as part of the response to the coronavirus pandmic.
Curaleaf Massachusetts President Patrik Jonsson told the board that the building has room for 16 sales counters and two would be dedicated to medical cannabis sales.
The company must negotiate a new host agreement with the town and obtain a special permit to operate, the report says. Jonsson indicated the approvals would be in place and the company could begin selling medical cannabis at the location by the end of the year. The firm already operates two medical cannabis dispensaries in Hanover and Oxford.
The Ware store had only been operational for 10 days prior to Baker’s shutdown order on March 23. That order is set to expire on May 4. Baker has extended that order for schools through the end of the academic year but has not said the business shutdown would be extended along with the order for schools; however, he has said the state would need to meet certain prerequisites – including a decline in coronavirus test results and COVID-19 hospitalizations over multiple, consecutive, days – before the order for businesses would be lifted.
Massachusetts is the only state to shut down recreational cannabis sales but deem medical cannabis “essential.” Earlier this month, five cannabis companies and one medical cannabis patient sued the state over the closures and last week a judge ruled that Baker acted within his authority to close the businesses.
In the ruling, Suffolk Superior Court Judge Kenneth Salinger said that state law only requires the governor to have some “rational basis” for shuttering the shops amid a pandemic and the plaintiffs would have “little chance” to prove Baker did not have that rational basis.
