Oklahoma medical cannabis sales set a new record last month, topping $61.4 million, despite the national coronavirus pandemic, the Oklahoman reports. The total represents nearly $217 spent per licensed patient.
According to Oklahoma Tax Commission data outlined in the report, dispensaries remitted almost $9.8 million in state taxes last month, which includes traditional sales taxes and the 7 percent medical cannabis levy. In March, the state collected $7.8 million in cannabis taxes – the previous record.
The Tax Commission figures don’t include sales volume, so the higher tax collections could be influenced by higher retail prices, the report says. Bud Scott, executive director of the Oklahoma Cannabis Industry Association, told the Oklahoman that many dispensaries offered deals in April to boost sales amid the state’s stay-at-home order which expires today.
“With the stay-home order in place, and medical marijuana dispensaries being categorized as essential health services, Oklahoma patients were afforded the ability to take their medicine on a more regular basis and sample a broader range of available medicines.” – Scott to the Oklahoman
According to the report, medical cannabis tax collections in Oklahoma are already more than half of last year’s totals.
Earlier this month, Republican State Rep. Scott Fetgatter said he was considering introducing a broad cannabis legalization bill to help the state fill its budget shortfall – $220 million this year and $250 million next year. Fetgatter estimates that recreational cannabis sales could bring the state $100 million annually in tax revenues.
Illinois also reported strong sales during the state’s stay-at-home order, recording its second-highest total since legal sales began in the state in January.
The owner of a medical cannabis dispensary has filed a lawsuit against the Maryland Medical Cannabis Commission over their denial to allow registered out-of-state residents to obtain a Maryland medical cannabis card, the Cumberland Times-News reports. Under current state law, out-of-state patients do not have access to medical cannabis in Maryland.
The lawsuit, a writ of mandamus filed by Allegany Medical Marijuana Dispensary owner George Merling, requests that “government officials properly fulfill their official duties or correct an abuse of discretion.”
While the state has accepted some applications for out-of-state patients, those applications were put on hold shortly after the launch of Maryland’s medical cannabis program in 2017, the report says. The lawsuit argues that it is a right of a U.S. citizen from one state to receive medical care while in another state. Moreover, Merling claims his defense is based on the 14th Amendment of the U.S. Constitution, which states, “No state shall make or enforce any law which shall abridge the privileges or immunities of citizens of the United States …”.
In the state medical cannabis law with regard to out-of-state patients, Maryland dispensaries must be approved by the Illinois-based Joint Commission of Accreditation of Health Care Organizations to offer care; however, due to federal law the commission will not approve any medical cannabis dispensary. Merling said the clause was included in the law because “no one could [get the accreditation].”
In 2018, the commission sent a letter to cannabis regulators in Maryland requesting that they remove the provision.
Last year, a similar writ of mandamus was filed in New Mexico and upheld. That decision forced officials to accept out-of-state patients, although state health officials refused to adhere to the decision and withheld medical cannabis ID cards from non-residents until lawmakers officially closed the ‘loophole.’
The case is scheduled to be heard May 27 unless a settlement is reached sooner.
The U.S. Department of Agriculture has released guidelines for hemp companies to apply for and receive federal loans, Marijuana Moment reports.
The guidelines, which were detailed in a memo issued last month, are part of the USDA‘s aim to align the federal hemp industry with other agricultural commodities — one piece of that effort is establishing the framework for hemp farmers to acquire federal loans.
“While it’s understood that this new commodity will likely produce some servicing challenges because of State and Federal regulations, it should be treated as closely as possible to any other agricultural commodity and serviced in the same manner.” — USDA memo excerpt
The memo lists the requirements that a hemp business must meet in order to qualify for a federal loan, which includes being licensed under a USDA-approved state or tribal hemp program and strict guidelines for reporting to the agency about any potential issues that arise with one’s hemp crop.
“Hemp will be considered like any other borrower produced commodity, if the hemp was produced under a license authorized by the 2014 or 2018 farm bills, and provided the crop is not abandoned or destroyed,” according to the memo.
USDA also clarified that federal loans cannot be used to pay for the disposal of hemp crops that test higher than the federal 0.3% THC cap.
The agency noted that, while access to a bank account is yet another requirement to receive a loan, not all banks are fully willing to cooperate with the hemp industry yet despite its federal legalization.
Amid the coronavirus pandemic, Illinois has recorded its second highest cannabis sales total since legal sales began in the state in January, according to Department of Financial and Professional Regulation figures outlined by the Chicago Sun-Times. April’s $37.3 million in adult-use sales trails only the $39.2 million worth sold in the state during January.
In Illinois, both adult-use and medical cannabis sales are considered “essential” businesses under the state’s stay-at-home order. The rules require shoppers to stand six feet apart in stores and in lines, and allow for curbside pickup for medical cannabis patients and their caregivers.
Toi Hutchinson, the governor’s senior adviser for cannabis control, said customer safety during the pandemic is the administration’s “top priority” for the industry.
“The steps we’ve taken to increase social distancing at dispensaries are accomplishing that, while also enabling this new industry to continue to grow.” – Hutchinson to the Sun-Times
Gov. J.B. Pritzker signed an executive order April 30 relaxing licensing requirements for industry employees, no longer requiring them to wait for the Department of Financial and Professional Regulation to issue them an identification card to start work, according to a Law360 report. The move comes as some cannabusinesses in the state are facing a staffing shortage due to sick or at-risk workers.
The order also temporarily ends the requirement that dispensary employees must have a current ID card and have it visible at all times while working, as long as they have submitted an application to the department.
According to regulators, Illinois residents purchased $29.7 million of the adult-use cannabis sold in the state in April, the rest was bought by out-of-state residents. In all, about 819,000 sales were counted over the course of the month.
Since January, recreational cannabis sales have topped $147 million in Illinois.
Panda Biotech is donating 60 tons of approved hemp fiber seed to Texas farmers hoping they will provide basic data about the crops. Although farmers are not required to provide data to receive the seed, all producers providing data will receive a free report generated from the promotion.
The promotion is developed in coordination with the Texas Industrial Hemp Council to help farmers experiment with, and gain experience from, their first trial hemp crops. Scott Evans, executive vice president of Panda Biotech, said the firm is giving away the seed because the company is “confident in American-grown hemp fiber’s potential to revolutionize several industries.”
“We are literally seeding Texas’ industrial hemp industry. … We’re making this donation to help ignite a new industry where Texas has the potential to be a global leader, and having access to real-world data is a necessary first step for that to occur.” – Evans in a statement
Panda will provide the data from farmers to Texas A&M AgriLife which will conduct the research and publish the report to share with participants.
Eloise Frischkorn, chairperson of the Texas Industrial Hemp Council, said the organization expects Texas to become “the nation’s leader in hemp production,” adding that “there is much yet to learn about how hemp will respond to Texas soil.”
“Panda is being farsighted in partnering with our farmers to help get our Texas hemp industry kickstarted,” she said in a press release. “Their generosity will put the state’s agricultural producers in a great position for the 2021 season.”
The distribution of the free seed began yesterday in Lubbock. Growers can test with as little seed as they want or up to 25-acres worth of seed, which is available on a first-come, first-served basis. Producers may use the resulting industrial hemp crop for any purpose they choose except for seed reproduction for 2021.
Panda announced plans last year to build the largest industrial hemp processing facility in the U.S. – the Panda High Plains Hemp Gin – in Shallowater which they expect to process 130,000 tons of industrial hemp annually of fiber, and cellulose. The company estimates that the two lines could generate $30 million per year for the state’s agricultural producers.
Columbus, Ohio City Attorney Zach Klein will continue to decline to prosecute low-level cannabis cases despite the state’s crime laboratories upgrading to have the capability to differentiate between legal hemp and illegal cannabis, the Columbus Dispatch reports.
Klein had joined some law enforcement officials and prosecutors throughout the U.S. who said they would not prosecute low-level cases following federal and state hemp legalization because their state did not have the infrastructure to conduct tests to determine THC levels. Klein said that the testing issue was one of many factors that led to his decision to decline to prosecute low-level cannabis crimes.
“Our decision to stop prosecuting low-level, misdemeanor marijuana possession was based on 1many factors, including the lack of testing capabilities at the time, our city council’s decision to institute a low-dollar fine for violations, and overall disparities and inequities in the criminal justice system. If anything, in light of the spread of the coronavirus in our jail and prison system, we believe our policy reflects a real-world approach that focuses on incarceration for only those that should be behind bars.”– Klein in a statement via Cleveland.com
Ohio Attorney General Dave Yost announced last week that the Ohio Bureau of Criminal Investigation upgraded its Richfield, London, and Bowling Green labs to measure quantities of THC, rather just the presence of the cannabinoid.
Louis Tobin, executive director of the Ohio Prosecuting Attorneys Association, said in a statement that prior to the upgrades, the only solution for law enforcement to test cannabis was “expensive private testing.”
Since the hemp reforms, Yost’s office provided law enforcement agencies $3,972 in grant funding to test samples in eight cases tied to over 20 felony charges. The state also provided $968,602 for drug testing equipment and, in all, $700,000 has been spent on the instruments necessary to conduct quantitative analysis.
Portage County Prosecutor Victor Vigluicci told the Dispatch that he could “probably count on one hand” the number of defense attorneys who attempted to use a hemp defense in a cannabis case in the state.
Constellation Brands Inc. has increased its stake in Canopy Growth Corp. by 5.1 percent, bringing its total stake in the Canadian cannabis producer to 38.6 percent. The company said it exercised C$245 million (USD$174.29 million) worth of warrants.
In addition to those shares, Constellation also has warrants and senior notes which, if exercised and converted, would bring its ownership stake in Canopy to 55.8 percent. Constellation said the company now holds over 142 million Canopy shares as well as almost 140 million warrants to purchase shares and senior notes worth C$200 million (USD$142.28).
Bill Newlands, Constellation president and CEO, described Canopy as the “best positioned to win in the emerging cannabis space” and the company is “confident in the strategic direction” of Canopy under CEO David Klein and his team.
“While global legalization of cannabis is still in its infancy, we continue to believe the long-term opportunity in this evolving market is substantial.” – Newlands in a statement
Klein is a former executive vice president and chief financial officer for Constellation who took over the reins of Canopy last December from Mark Zekulin, who took over as sole CEO following the ouster of company founder Bruce Linton.
Recently, however, Canopy has announced sweeping changes to its business. In March, the company shuttered two greenhouses in Delta and Aldergrove, British Columbia, Canada, cutting 500 jobs in the process.
The following month, the company said it would sell its operations in South Africa and Lesotho, close its indoor cultivation facility in Yorkton, Saskatchewan, shut down its hemp farming operations in Springfield, New York, and close its Colombia-based cultivation facility.
The firm laid off another 200 employees last month in the U.S., Canada, and the United Kingdom.
The warrants that were exercised were due to expire on May 1 if no investment was made. Constellation also has further warrants which expire in November 2023.
Hightimes Holding Corp. is continuing its push into the retail sector, announcing last week that the company had reached an agreement to acquire 13 planned and operational California dispensaries from Harvest Health & Recreation Inc. The terms of the mostly-stock deal were not disclosed.
Adam Levin, Hightimes Holding executive chairman, said the company has “enormous respect for the Harvest brand” and the firm is looking forward to “ushering in the next generation of retail experience with Harvest as a significant shareholder” in the company.
“We’ve long supported Harvest and the other cannabis-retail-trailblazers as they pushed forward despite changing legislation, insurmountable licensing fees, political stigma and, frankly, through a process that was designed to be difficult.” – Levin in a statement
Harvest is headquartered in Tempe, Arizona. In addition to California and Arizona, the company operates in Pennsylvania, Arkansas, Florida, Maryland, and North Dakota.
In March, Hightimes Holding signed a letter of intent to acquire California-based Humboldt Heritage Inc. and its subsidiaries Humboldt Sun Growers Guild and Grateful Eight LLC. The move to retail follows a January announcement that the firm had signed a deal with dispensary licensees in Los Angeles and Las Vegas with plans to open two flagship retail locations.
The company had acquired many of its competitors over the years – including magazines DOPE and Culture, and website Green Rush Daily. Earlier this month, Hightimes Holding announced it temporarily suspended publication of DOPE and Culture and furloughed the magazine’s employees amid the coronavirus pandemic which shut down most in-store dispensary shopping. The magazines are primarily print publications that are distributed to dispensaries monthly.
In February, Hightimes Holding received a trading symbol from the Financial Industry Regulatory Authority which advances the company’s plans of going public by next year.
Cannabis business event and media firm Jage Media is set to debut an exclusive 3D Virtual Summit series this month starting May 12 with a three-day, Colorado-focused event. TheMJ Unpacked event series — which promises actionable information tailored to help licensed cannabis brands and retailers find success — is the perfect post-COVID-19 solution to cannabis trade shows.
Attendees of MJ Unpacked Colorado will experience a unique online event complete with peer-to-peer networking, expert Q&As, round tables, and digital exhibition platforms where attendees and exhibitors can meet, learn, and network as if they were at an in-person trade show. Additionally, all attendees will be individually vetted by organizers to make sure everyone attending is equally invested in a successful event.
“We are excited we can convene the industry through a thoughtfully tailored and curated digital event series,” Jage Media CEO George Jage said in a statement. “Cannabis, like all industries, is responding to new realities in the wake of the Covid-19 pandemic. As we adapt, the ability for retailers and brands to convene and address the market landscape, state by state, is more important than ever.”
On the event’s first day, MJ Unpacked will feature its partner BDSA (formerly BDS Analytics) showcasing insights and never-before-shared information about the Colorado marketplace from the company’s market-leading industry intelligence. The presentation will be held in a digital auditorium and, according to BDSA CEO Roy Bingham, will offer “a deeper dive into the cannabis market than at any other event in the company’s history.”
The next day will feature a panel of successful executives focusing on the many challenges and opportunities of cannabis retail. Other event highlights include sessions focusing on customer acquisition, case studies from the industry, managing staff during a crisis, and more, all featuring notable panelists such as Bruce Linton, founder and former CEO of Canopy Growth Corp, and Tripp Keber, co-founder and former CEO of Dixie Brands, Inc.
The three-day event kicks off at 9:30 am each day with the opening of the Virtual Summit & Exhibit Halls. Each day features a diverse series of group discussions, workgroups, and Q&As — see thefull schedule for more details.
“Attendees to the first MJ Unpacked event should expect an engaging and experiential scene filled with exceptional programming, in-event networking, topic-driven roundtables, a social networking lounge, and even in-event games,” said Kim Jage, Chief Marketing Officer for Jage Media.
“With this new format, we can also invite brand and retail executives from outside the state of Colorado to this inaugural 3D Virtual Summit, giving them a great opportunity to build their network, and engage with leading Colorado executives,” Jage said.
MJ Unpacked Colorado is the first of multiple planned 3D Virtual Summits — Jage Media has also announced a digital summit for the California marketplace on July 23-35, followed by events for Oregon and a combined Southwest event.
Dr. Bronner’s has donated $1 million to the campaign to legalize psilocybin therapy in Oregon. The cash infusion, first reported by Double Blind Magazine, was announced last week by David Bronner, CEO of the Dr. Bronners brand, during a Reddit AMA (Ask Me Anything).
Oregon’s Initiative Petition 34 aims to legalize the therapeutic use of psilocybin, which is touted by many activists as the next step in progressive drug policy reform. Psilocybin is in the final stages of studies for FDA approval as therapy for treatment-resistant depression.
“My family’s no stranger to severe depression and anxiety. Pharma drugs and traditional therapies are often inadequate, and psilocybin therapy has shown remarkable promise in clinical trials at John Hopkins, NYU, and other universities, for depression and end-of-life anxiety. FDA has recently designated the therapy “breakthrough” status, and we want to see this therapy available for those who most need it. But also for all adults struggling with the dilemmas of life, this therapy is incredibly helpful.” — David Bronner, CEO of Dr. Bronner’s
The initiative currently has just over 130,000 signatures but will require 145,000 before it can be approved for November’s ballot. If approved, IP34 would establish a state framework for medical access to psilocybin, which is a Schedule I drug under federal law.
Specifically, the proposal would create a patient screening process as well as centers for distribution and administration which would all be overseen by the Oregon Health Authority. The state would create research-based programs to handle everything from spore to patient, including cultivating the mushrooms, overseeing the training for facilitators, and administration of the medicines.
When asked why he was supporting the medical initiative as opposed to a decriminalization-focused campaign, Bronner said that the measure wouldn’t rely on “exorbitant taxes beyond what’s needed to cover the program,” so it should be “relatively affordable versus otherwise.”
“Definitely programs sponsoring the most indigent and marginalized and traumatized communities should be developed and we’re actively looking at this with other donors,” Bronner said.
Editor’s note: A previous version of this article incorrectly listed the Yes On IP34 campaign as a part of the Decriminalize Nature advocacy group.
CBD company Swissx is continuing to seek sponsorship rights with a professional soccer club as the CEO Alki David is now in talks with Premier League club Everton to become a sponsor, according to a Goal report. David reportedly had already pitched a sponsorship plan to Barcelona for the naming rights to their home stadium Camp Nou.
David came under fire recently for claiming that he had entered a business partnership with Mike Tyson and his cannabis farm, Tyson Ranch; however, Tyson Ranch CEO told Goal that the company was not in business with David.
David told Insider that he is “keeping the door wide open” for a possible deal for the naming rights to Camp Nou but claimed Everton has already contacted him about advertising on the front of the team’s shirts and “offered designs.”
Barcelona has denied having any contact with David or anyone from his company. David claims the club are “just being dicks.”
“My door is open. The bottom line is they are being really precious about this being a cannabis brand, but they’ve got to realize that [Ultimate Fighting Championship] embraces cannabis, and other major sporting leagues accept cannabis. My brand is not a fucking marijuana brand, it’s a wellness CBD brand based on health, not based on recreation.” – David to Goal
David has previously said he was “bullish” about the opportunity to acquire the naming rights to Camp Nou, which he called “historic” as Swissx would be the first cannabis company to brand a professional sports stadium.
The legal cannabis industry has contributed $3.96 billion to Canada’s gross domestic product since the nation’s adult-use legalization reforms in October 2018 – an increase of 215 percent, according to Statistics Canada data outlined by Bloomberg News. The agency also reported that estimated illicit cannabis sales contributed $4.13 billion to the nation’s economy, down about 21 percent since October 2018.
According to agency data, 16.7 percent of Canadians used cannabis over the last three months. In all, that represents about five million people, a figure that remains unchanged from pre-legalization statistics.
In February, Canada reported cannabis tax revenues totaled $18 million during the first full fiscal year of legalization in the Great White North, falling short of the $35 million expected by government estimates. The shortfall prompted officials to cut their cannabis-related revenue forecast this year from $100 million to $66 million. Officials are still betting on cannabis tax revenues to reach $135 million next year and $220 million by 2023.
Canada’s cannabis industry has also seen employment numbers nearly quadruple from 2018 to 2019 – from 2,630 jobs to 9,200 jobs, according to Statistics Canada figures. In 2017, the industry employed about 1,438 people.
Statistics Canada figures from August 2019 found that 42.7 percent of Canadian cannabis consumers still obtained some cannabis products illegally.
Cannabis companies reported to Statistics Canada that, while their revenues rose 92 percent in the fiscal year 2018 and another 52 percent by April 2019, all companies reported overall losses.
New Zealand’s cannabis legalization bill has been unveiled, setting the legal purchase and consumption age at 20, allowing so-called ‘coffee shops,’ and permitting adults to grow up to two plants for personal use, with up to four plants per household, according to Stuff. The cannabis legalization measure is one of two referendums the nation’s voters will decide on this year.
The bill sets a jail term of four years for sales to minors and minors caught possessing cannabis would not face criminal charges. Instead, the bill sets forth a “health-based response” to minors caught with cannabis, including education, community service, or a small fine.
Individuals would be allowed to buy up to 14 grams of flower per purchase – which would be the only available products in the initial rollout of the industry, the report says. While the bill does provide for social use in the form of coffee shops, it also includes fines up to $500 for using in public.
The bill bans some specific products, including those mixed with alcohol or tobacco, injectable products, suppositories, and products that are meant for use in the eyes, ears, and nose. It also bans advertising, promotion, and sponsorships by cannabis products and cannabis businesses.
A cap would limit the amount of cannabis available for sale in the licensed market and no licensee would be allowed to hold more than 20 percent of that cap.
If the referendum is approved by more than 50 percent of voters, recreational cannabis wouldn’t become legal right away. After the election, the incoming government could introduce the legalization bill to Parliament.
A 2017 poll found 65 percent of New Zealand voters supported legalizing or decriminalizing personal cannabis possession, along with 55 percent who were in favor of personal cultivation. That poll found just 34 percent supported storefront sales.
Nevada dispensaries starting today can offer curbside pickup as part of the governor’s easing of restrictions on the cannabis industry amid the state’s coronavirus response, KSNV reports. Cultivate Dispensary Chief Operating Officer Matt McClure said that many operators had moved to in-house delivery services which forced most of them to develop, “essentially, a new business.”
“I think as everybody moves into this new phase, if we continue to be responsible operators and abide by the rules – making sure safety is the top priority – that we will be able to move to the next phase more comfortably and gradually and hopefully get things back to normal very soon.” – McClure to KSNV
The new rules set forth by Gov. Steve Sisolak (D) allow customers to order online or by phone. The dispensary will prepare the order and an employee will deliver the order to the customer waiting in a vehicle in the dispensary parking lot. The employee is required to check the IDs of everyone in the vehicle. Cash is allowed to be used in the transaction.
Clark County Commissioner Tick Segerblom noted that there are more than 5,000 people employed in the cannabis industry in the county and county revenues have been impacted by the state’s shutdown.
“Right now, our revenues are down so anything we can do to increase tax revenues for schools, for homeless, for the programs that we use it for, very important,” he said in the report. “Plus, it employs a lot of people.”
The majority of states with both recreational and medical cannabis industries have implemented social distancing measures to allow sales to continue – except for Massachusetts where Gov. Charlie Baker (R) shuttered recreational sales over concerns that they would draw in people from out-of-state.
Those measures often include curbside delivery, drive-thru, online ordering, and ‘virtual’ budtenders.
As we finish out our month of highlighting the cannabis heroes and activists who paved the way for the modern cannabis movement, today we celebrate the life of Jack Herer, aka ‘The Hemperor.’
So far, our profile series has featured Dennis Peron, Bob Marley, “Brownie” Mary Rathbun, and Baba Ram Das. However, as we move into the rest of 2020 and beyond, we must take special effort to remember all of the unnamed heroes of cannabis: the protestors, supporters, and countless drug war victims who sacrificed their freedom to upend our unjust laws.
Early life
Jack Herer was born in New York City on June 18, 1939, the youngest of three children. Even then he broke the norm, dropping out of high school to join the Army. As a young man, he served as an Army police officer in Korea, eventually returning to the States as a Pro-War Republican with conservative values. The young man was so conservative that he threatened to leave his first wife because she had tried smoking pot in the early ‘60s. He also resented the counter culture around him and adamantly believed that the hippy movement and smoking pot were for bad people with bad agendas. He and his wife relocated to Los Angeles, California in 1967. They divorced soon after.
In his years as a single young man in the epicenter of hippie culture, Herer eventually started dating a woman who regularly enjoyed cannabis. She tried to get him to smoke a few times and he kept blowing out each hit before inhaling, then would claim that pot had no effect on him. The excuse worked until she brought home an ounce of premium Acapulco Gold in the summer of 1969, the woman, whose name isn’t listed in any recounts of the story, made it clear that this was expensive stuff. Because of the cost and excitement over the new pheno, Herer made sure to hold it in and really try to get stoned — and oh, did he get stoned.
While Herer was coming up, his girlfriend clasped headphones over his ears and the 30-year-old had a synesthesia-like experience as his mind’s eye watched the notes interact and play with one another. As he said in a video interview, after smoking pot for the first time he found himself thinking, “I’m 30 years old and this is the first time that I ever knew music had music in it!”
After actually inhaling and understanding the beauty of expanding your awareness, there was a shift in Herer. It was as if he had awakened to a new part of reality. From that point forward, he threw himself into studying everything that he could about the plant and those who used it.
A passionate awakening
In 1973, Herer used his new expertise on the subject to co-author the comic ‘zine Great Revolutionary American Standard System: The Official Guide for Assessing the Quality of Marijuana on the 1 to 10 Scale, or G.R.A.S.S. for short. The coloring book for adults was sold at underground bookstores around LA and Herer toured to promote it. At these events, he learned amazing, random facts about the hemp plant from people who supported his work and for years would save each tidbit to be later included in his work.
At this time he was building smoking accessories and was part-owner of a hemp store called High Country on Venice Beach. He also set up a stand on the boardwalk where he became a fixture in the eclectic neighborhood of characters, talking to everyone and anyone about the wonders of hemp. His work with High Country eventually led him to Ed “Captain Ed” Adair, a fellow smoke shop owner, and the pair agreed to work together on legalization efforts until marijuana was legal, everyone imprisoned for cannabis was released, or they turned 84. Captain Ed passed in 1991, but legalization would continue to be the focus of Jack Herer’s life until the end.
Legendary activist
The straight-laced, Republican Army police officer was now a tie-dye wearing, Grateful Dead following hippie. Instead of hoping to befriend stars of the Los Angeles hippy generation like Jim Morrison and the Beach Boys, Herer spent his time with another crowd. He often found himself under bridges with local homeless veterans, learning about their plights and how necessary cannabis-use was to their mental health and wellbeing. Eventually, it was these same veterans that would help the Hemperor collect signatures for his many cannabis legalization initiatives. Though he was now a hippy, he was still a firm believer in the power of American democracy and spent much of his free time registering people to vote.
Jack Herer was given a $5 ticket one day in the early 1980’s while registering voters in an un-permitted area, he refused to pay the fine and in 1983 that landed him in federal prison for two weeks. This jail time became more important than he could have known because it is where he began writing The Emperor Wears No Clothes on looseleaf paper.
The Emperor Wears No Clothes book cover.
After his release, Herer relocated to Portland, Oregon where he opened The Third Eye Shoppe, a head shop in the hippie neighborhood of town. In 1985, The Emperor Wears No Clothes was published on hemp paper and Herer set out on a years-long cross-country-and-back-again road tour. He was so confident in his 12 years of research that he bravely offered $100k to anyone who could disprove his assertions about the hemp plant.
The 6’, 250 lb. activist was always a boisterous, noteworthy character and by the time he grew his wild beard, he had become somewhat of a legend in the legalization movement. He staged many protests in DC and was known to protest in colonial garb to highlight the fact that our forefathers were hemp growers. His fight for legalization and his pact with Captain Ed lived on until he suffered a heart attack backstage after speaking at an Oregon hemp rally in 2009.
Jack Herer delivers his famous last speech at the 2009 Hempstalk Festival in Portland, Oregon.
For months, Herer spent time with his wife Jeannie at their Eugene home until his passing on April 15, 2010, two years before cannabis legalization was approved in Colorado and four years before it would become available for legal sale in Oregon.
The Third Eye Shoppe would remain a family operation until 2017 when his son Mark was forced to sell to real estate developers. The sale was a shock to many Oregonians who cherished the cannabis legend’s memory, but the second generation shop owner had incurred a $600k loss due to the opening of cannabis dispensaries throughout Oregon the year prior. These shops now sold the same pipes, bongs, and accessories as a headshop, alongside legal weed. The irony of a store built by a founding father of cannabis legalization being shut down due to legalization isn’t lost on the many who know the tale. In fact, it is paralleled around the country as legacy growers are slowly edged out of a market that they once risked everything to maintain.
As we look back and pay our respects to the life and legacy of Jack Herer, it is important that we carry this irony with us into the newly minted cannabis industry. Those who have been cultivating in Humboldt for generations and those who are excited by their new business prospects and aim to enter this industry should be holding reverence for the people who made this possible. Similarly, we should all continue the pact of The Hemperor and Captain Ed, not stopping until every cannabis prisoner has been freed.
A cannabis legalization bill proposed in Mexico would permit possession and cultivation for people aged 18-and-older, tax sales at 12 percent, allow public consumption, cap personal possession at 1 ounce, and decriminalize possession up to 200 grams, according to a Bezinga report.
The bill allows personal cultivation up to 20 plants – which must be registered with the government – as long as the total yield doesn’t exceed 480 grams per year. Medical patients would be allowed to grow an additional 20 plants. Hemp and CBD would be exempt from regulations that apply to THC products.
Sen. Julio Ramón Menchaca Salaza of the ruling Morena party said the measure would allow cannabis to play a role in the nation’s economic recovery from the coronavirus pandemic.
In 2015, Mexico’s Supreme Court ruled that citizens should be allowed to grow and consume the plant freely, and 2018, the court took the ruling a step further, declaring that cannabis prohibition in the nation was unconstitutional. Both decisions set the stage for broad legalization and draft legislation was unveiled last October. That bill did not allow public use, capped personal cultivation at four plants, and did not outline a tax structure.
President Andrés Manuel López Obrador said following his election in 2018 that he would not interfere with the Supreme Court decisions and expressed support for broad legalization on the campaign trail. The 2018 Supreme Court ruling set a deadline for Congress to enact the reforms but it has been delayed several times, according to Benzinga.
If the law is approved – as is eventually required under the Supreme Court ruling – Mexico would be the third country, joining Canada and Uruguay, to allow cannabis possession, use, and sales.
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.
