Cannabis Distributors Compile List of Brands Who Don’t Pay

4/20/2020

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Two separate groups of licensed cannabis distributors in California have begun sharing information about which cannabis firms in the state tend to pay their bills and which don’t, Marijuana Business Daily reports. Businesses who become known for failing to pay could ultimately be blacklisted by the state’s distributors.

The effort stems from the ongoing pandemic, which has put most cannabis businesses in the uniquely difficult position of qualifying as an “essential service,” yet they are still being denied the federal coronavirus stimulus aid meant to help small businesses overcome the crisis.

One information network is headed by the Cannabis Distribution Association (CDA) — which includes some 30 businesses among its ranks, including 20 distributors — while the other is a smaller cadre of cannabis distributors called the Crisis Alliance, which is headed by Todd Kleparis, founder of Hardcar.

CDA board chair Lauren Fraser said their system gives distributors a chance to rate cannabis businesses on their likeliness to pay bills on time.

“Several of our members have built their own internal credit scoring and rating systems for businesses and we’re working on how we can synchronize those methods and those lists.” — Fraser, via MJBizDaily

Kleparis, meanwhile, is calling up a select few fellow distributors to ask for their “top-five most obvious really bad players” — those responses get added to “an industry blacklist that distributors can use to route out all the bad players and brokers that are doing illegal work or doing bad deals,” Kleparis said.

The groups are not working together yet, according to the report, and Kleparis said the Crisis Alliance would last only as long as the pandemic continues.

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L.A. Sued Over First-Come, First-Serve Cannabis Licensing

4/20/2020

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The city of Los Angeles, California is being sued by the Social Equity and Workers Assn. over its cannabis licensing process, the Los Angeles Times reports. The organization argues that the city’s application process in September was “flawed” and unfairly implemented and the lawsuit seeks to force the city to vet every single application turned in or roll out a new process that allows “an equal, fair and transparent opportunity.”

In September, Los Angeles opened up another 100 cannabis licenses on a first-come, first-serve process but it was later discovered that some started their applications prior to the launch time. An audit of the process by Sjoberg Evashenk Consulting found that some applicants were able to access the system early, but the city took “reasonable and appropriate steps” to prevent unfair advantages, including moving those applications back in line to where they would have been if they had began the application process when the system opened.

The audit found 226 applicants had accessed the online platform before the start time, but only 14 of them actually started their applications early. The Social Equity Owners and Workers Assn. argues in the lawsuit that those applicants had a “significant advantage” over others who waited until the start time. The audit also found that some applicants were told they couldn’t even log on to the system before the start time but that was untrue.

“Fundamental to any fair race is that the competitors must start at the same time or, at the very least, be given accurate information about when the race will begin. The record demonstrates that this did not occur.” – Social Equity Owners and Workers Assn. in the lawsuit

Cat Packer, executive director of the Department of Cannabis Regulation, released a report earlier this month addressing the audit and potential fixes to ensure fairness in the next round. Tightening social equity rules and giving shops shut out of the previous licensing round “priority processing” are among her recommendations.

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Oregon Cannabis Regulators Approve Random Product Testing

4/20/2020

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The Oregon Liquor Control Commission announced last Friday that it will begin random testing of the state’s cannabis products for undisclosed ingredients and additives. The agency said the change stems from last year’s vaping crisis.

“During the vaping crisis OLCC took the position that specific additives suspected of being contained in nicotine and cannabis vaping products were adulterants and based on existing OLCC rules should not to be contained in marijuana products. But the OLCC lacked specific authority to require random sampling and testing to detect adulterants and other contaminants in the marijuana products of licensees.” – OLCC in a April 17, 2020 press release

In Oregon, the vape-linked pulmonary illness was linked 22 cases and two deaths. A Centers for Disease Control and Prevention report indicated that most of the cannabis vape cartridges linked to the disease were produced and obtained outside of legal markets.

The agency also said for the next six months it will not require an in-person inspection by members of its staff for a proposed licensed premises due to the current coronavirus pandemic.

Steve Marks, OLCC executive director, called the suspension of in-person inspections a “temporary change” similar to rules allowing curbside delivery.

“We’re saying to the cannabis industry ‘we expect you to act responsibly’ and applicants are expected to abide by all of the rules,” Marks said in a statement. “If they do not, they will be subject to violations and the OLCC will act quickly in order to ensure public safety.”

The rule aligns with the state social distancing requirements, which do not, yet, have an end date. The random testing policy takes effect today.

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California Dispensary Uses ‘Virtual Budtender’ for Touch-Free Shopping

4/20/2020

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California’s Vallejo Holistic Health Center has rolled out a “virtual budtender” amid the coronavirus pandemic, KTVU reports. The system allows customers to order on an iPad, and communicate with staff via Skype, while a 6-foot long pole with an attached basket is used to collect the money and give the customer the order.

Ann Marie, a budtender at VHHC, said once the state implemented stay-at-home orders and implemented social distancing rules the dispensary started taking orders via curbside and nobody was allowed inside. She said that customers can still come inside the dispensary but have the option for contact-free shopping.

The dispensary started the system in an attempt to better serve customers on the 4/20 holiday. Ann Marie told KTVU that the shop often has a line that wraps around the building and they expected increased traffic on the holiday.

Throughout the U.S., states with stay-at-home orders have deemed cannabis dispensaries essential – except for Massachusetts, where Gov. Charlie Baker shut down recreational sales fearing they would draw people from out-of-state. Emergency pandemic rules for cannabis sales often include strict social distancing practices – such as limiting the number of customers in a store at one time – curbside pickup, and enhanced store sanitation.

Colorado, meanwhile, has allowed for online ordering and curbside pickup for the first time. Cannabis delivery companies throughout the U.S. have reported an uptick in business as most of the nation is ordered to stay at home.

Many virtual 4/20 events are also planned as large in-person gatherings have been shut down by states or organizers in an effort to slow the spread of the coronavirus.

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Here’s a List of All the Virtual 420 Events on April 20th

4/19/2020

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This year, 4/20 was supposed to be the ultimate 4/20 of all time — in addition to the month and year aligning to 4/20 for the entire month of April, you may have also heard that on 4/20/2020 at 4:20, there will be four 20’s. Although the cannabis community’s celebration of the holiday is hindered by social distancing measures that are in place to prevent the spread of Covid-19, a wide variety of virtual gatherings are available to those who want to socialize to mark this momentous occasion. Check out our list of livestream events for April 20th below!

Higher Together Logo

Higher Together

Donation drive for Last Prisoner Project hosted by The Smokers Club

Sesh with Wiz Khalifa and Tycho during their DJ sets, and light up a backwoods while Berner gives away $5k in Cookies merch all from the comfort of home. Those who log in can expect appearances from Stephen Marley, Tycho, Cam’ron, Bill Ray Cyrus, and even some surprises.

Tune in from 12 – 5 pm PST more details here.

420 World Record 2020

A community world record attempt, benefiting Last Prisoner Project

Be a part of history by taking part in this attempt to set the world record for “Most People Consuming Cannabis on Video Chat,” to raise money for Last Prisoner Project.  Featuring hosts Tony Diepenbrock of Emerald Galore & Flower Co, Mary Bailey of LPP, and Matt Gray of Herb.

Runs 4pm – 4:40pm PST, more details here.

Come and Toke It Event

COME AND TOKE IT

Hosted by Luck Reunion

Join a live stream variety show with highlights like the chance to pass the joint in a circle with Willie Nelson himself with their interactive #passleft challenge. Artists, chefs, educators, comedians, and more will hop in to the live stream on Twitch and Facebook to entertain while in quarantine.

Tune in from 4:20 – 8:40 pm CST, more details here.

Chronic Relief Logo

Chronic Relief

Hosted by Farechild Events

A livestreamed 420 extravaganza brought to you by the creators of Dope Magazine, Farechild Events. Featuring celebrity appearances and performances including Whoopi Goldberg, Tommy Chong, Montel Williams, and many more!

Tune in at 12:00PST to join in the fun, more details here.

BGR! FourTwenty

Presented by BLACK GIRLS ROCK!, CURALEAF and CANNACLUSIVE

Leading black women in the cannabis industry discuss the business opportunities, wellness benefits, and future of cannabis. Featuring Mary Pryor, Khadihaj Tribble, Jennifer Snowden, Joy Hollingsworth, Dr. Rachel Knox, and a DJ set from DJ Beverly Bond.

Tune in at 4:00pm EST on Instagram Live at @blackgirlsrock

 

420 Digital Disco

Digital Disco with Sassy Black Cat

Hosted by PAX, Heylo, and Hashtag

Let Sassy Black accompany your 4:20 session with a 1-hour DJ set of holographic funk and electronic psychedelic soul in the first-ever virtual Heylo Sessions disco. Have a digital dance party between the hours and hours of educational content offerings that this year’s virtual 420 has to offer.

Groove along from 4-5pm PST, read more here.

Chicago Cannabis and Color 420 Event

Chicago Cannabis Health Initiative Virtual Summit

Hosted by Chicago NORML, CANNAHEALTH Magazine, and ShopHitly.com

Prominent minds in medicine and cannabis converge in this 2nd annual community focused summit. Reserve a seat for free to hear Dr. Wilson-King speak on women’s health, Peter Vogel will speak to a post-COVID cannabis industry, a conversation on Cannabis + Color with E.A.T., Digital Venture Partners, and LinkUp and more. This educational summit will provide industry and consumer insights worth soaking up.

Learn more about this event on Monday, April 20th here.

Get Good at Weed

Get Good At Weed

Donation drive for Last Prisoner Project and COVID-19 Relief Fund hosted by Miss Grass

An action packed wellness focused 420 cannabis event which starts with Chelsea Handler and ends with a closing DJ set with Lola Langusta. Lizzy Jeff and other advocates will engage in conversation on sex and quarantine, Vanessa Lavorato from Bong Appétit will teach a 15 minute workshop, Steve DeAngelo will join other activists to teach us more about restorative justice in the cannabis industry and more. Attend for free or donate to Last Prisoner Project and COVID-19 Relief.

Tune in from 12-4:20pm PST, see the full schedule here.

The Great American Sesh In

The Great American Sesh In

Benefit for COVID-19 First Responders hosted by Direct Relief

Support our first responders by tuning in to this telethon style event featuring beloved cannabis activists like Steve DeAngelo and Maya Elisabeth. There will be entertainment from Too $hort, B-Real, and a huge list of talented celebrities from all walks of arts and culture. This one time event also features 420 specials from dispensaries all over California so you can stay at home and flatten the curve.

The fun starts goes on from 11am – 6pm PST, you’ve got to see the full lineup here.

Peter Tosh 420 Event

Peter Tosh Day

Hosted by Niambe Tosh

Celebrate 420 with Niambe Tosh, daughter of original Wailers member Peter Tosh, as she takes over Facebook Live. Enjoy a bevy of entertainment like DJ’s, giveaways, and guest speakers including Last Prisoner Project’s Steve DeAngelo. Log in to Facebook and groove out in honor of a founder of roots rock reggae who dedicated his life in hopes that we would ‘Legalize It’.

Festivities begin at 2pm EST, get more information here.

420 Convergence

420 Convergence

Hosted by CJLA and Femme.Canna

Focus in on wellness strategies, holistic mindsets, and the decriminalization of cannabis and psychedelics for the first ever 420 Convergence. Seven streaming hours of content will cover topics like psychedelic sobriety, activism integration, and even a Holotropic Breath Work workshop set to Liquid Drum & Bass, and even more. General admission is free but there are VIP tickets availabe with special perks including merch.

Log on from 11am – 6pm PST, get your ticket here.

 

 

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Green Line Expands to Los Angeles with GL.Delivery

4/17/2020

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Cannabis On-Demand Delivery Service Launches Ready for 420

Green Line Delivery, a leading Northern California cannabis company, announced today it is entering the Southern California market. GreenLine Delivery SoCal marks the beginning of rapid expansion efforts that initially includes cannabis delivery to more than 20 Southern California cities, with additional offerings for VIP customers in coming months.

GreenLine Delivery SoCal, going by the URL GL.Delivery, will serve more than 15,000 customers and growing, with big-name partners like Alien Labs, Connected, GoldDrop and Gas House.

The partnership plans to bring its full set of products and services to residents of Los Angeles, Beverly Hills, Santa Monica, Venice Beach, Hollywood, Calabasas, the beach cities and more. In addition to express delivery, GreenLine Delivery SoCal will offer personalized budtender experiences and knowledgeable customer support while continuing its best-in-class order fulfillment.

GL.DELIVERY DEALS
  • $30 an 1/8th(Jungle Glue, Tahoe OG, Wedding Cake and Gelato)
  • Referral Program – get 10% off entire menu
  • 420 Specials
    • 4 grams of top shelf flower for 20 bucks!
    • LOBO Presidente Cannagar 20% OFF

GreenLine Delivery SoCal has an old school “farmer’s choice” approach to genetics selection and product acquisition providing the exceptional ordering and delivery know-how consumers have grown to expect from a top-tier cannabis brand. With the partnerships deep local expertise, a network of drivers, and relationships with reputable farms, GreenLine Delivery SoCal is geared to offer consumers in the greater Los Angeles area a superior end-to-end experience that supports the growth of local brands and cultivators.

 

Green Line Delivery’s success in the Bay Area is based on its’ unwavering dedication to the needs of its customers and suppliers. We look forward to replicating that success in Southern California,” Justin Neal, COO of GreenLine Delivery SoCal said regarding the expansion. “Quality cannabis products, reliable and friendly customer experiences, competitive pricing, and support of local cultivators and manufacturers has been and will continue to be the Green Line guarantee.”

Terrence Taylor, CEO of Green Line Delivery says, “We’re thrilled to expand into Southern California and excited by the opportunity afforded us by this partnership to immediately provide Southern California residents with high-end products and a user-friendly platform that delivers an extraordinary experience.”

COMING SOON
  • Virtual budtender application
  • VIP offerings – networking events, hospitality experiences with celebrity chefs, exclusive activations at select estates and farms
  • Quarterly market intelligence reports
  • Full-service consulting
ADDITIONAL RESOURCES

Website: https://GL.Delivery

Instagram: instagram.com/greenlinesocal

Yelp: yelp.com/biz/green-line-delivery-socal-north-hollywood

420 Special for the month of April– 4 grams of top shelf flower for 20 bucks!

ORDER NOW and experience the difference.

Media Contact:
Justin Neal
Phone: 323-413-0758
Email: info@gl.delivery

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Lawmakers Push for Cannabis Banking & Stimulus Aid

4/17/2020

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Colorado Rep. Earl Perlmutter (D) is reportedly pushing for provisions of the SAFE Banking Act to be included in the next wave of coronavirus stimulus packages and for the cannabis industry to have access to Small Businesses Administration loans being made available amid the pandemic, NJ.com reports.

Meanwhile, Marijuana Moment reports that a bipartisan group of 34 lawmakers delivered a letter to House leadership in support of the cannabis industry’s right to access the $2 trillion federal coronavirus stimulus package like any other small business.

SAFE Banking

The SAFE Banking Act, which would provide cannabis businesses access to traditional financial services, passed the Democrat-controlled House of Representatives last year but has not been taken up in the Republican-led Senate. Perlmutter told NJ.com that while industry supporters in Congress want to pass the SAFE Act, they know banking alone “won’t be enough to give cannabis businesses the relief they need like other businesses.”

“I plan to keep pushing to ensure the cannabis industry has the ability to be eligible for SBA relief funds during this COVID-19 crisis. I have spoken to House leadership about this matter and I’m hopeful in one of the next two packages we can get this done.” – Perlmutter to NJ.com

Under the Coronavirus Aid, Relief, and Economic Security (CARES) Act passed earlier this month, both cannabis firms that touch the plant and cannabis adjacent companies – such as those that provide consulting, testing, or lighting – are barred from receiving SBA loans. State legal hemp companies, which are recognized by the federal government, do have access to the program.

Letter to House leadership

Today, Perlmutter’s push was reinforced by 34 members of Congress who delivered a letter to House leadership calling for the cannabis industry, which has been deemed an essential service in most markets, to be given access to federal coronavirus stimulus aid.

In the letter addressed to House Speaker Nancy Pelosi and Minority Leader Kevin McCarthy, lawmakers wrote:

“The state-legal cannabis industry is a major contributor to the U.S. economy and workforce, employing over 240,000 workers across 33 states and four territories, and generating $1.9 billion in state and local taxes in 2019. … State-legal cannabis businesses need access to CARES Act programs to ensure they have the financial capacity to undertake the public health and worker-focused measures experts are urging businesses to take.”

Oregon Rep. Earl Blumenauer (D) reportedly led the effort behind the letter while pro-cannabis senators are expected to deliver a similar letter to Senate leadership in the coming days.

Earlier this month, 11 U.S. Senators sent a letter to the SBA asking them to allow state-approved cannabis companies to qualify for the stimulus loans.

Banking first

Justin Strekal, political director for NORML, told NJ.com that the industry is going to need access to traditional banking services before they would even be able to access any SBA programs.

“If we get SBA access but don’t get banking, how can SBA distribute money to someone who is unbanked?” Strekal asked. “Are they going to get $10,000 cash?”

 

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Molson Coors-Hexo CBD Beverage Venture Launching in Colorado

4/17/2020

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Canadian licensed cannabis producer Hexo and beer-maker Molson Coors Brewing Company are launching a joint venture of non-alcoholic cannabis-derived CBD beverages in Colorado, according to a BevNet report. The new venture, Truss CBD USA, will be majority-owned by Molson Coors but operate independently with its own management team, resources, and board of directors.

The products will be produced in Colorado and only available for sale within the state, the report says. The two companies already have a partnership in Canada – Truss Beverages Co. – which was launched in 2018 to develop CBD drinks for the Canadian market. Molson Coors holds a 57.5 percent interest in that venture; Hexo holds the remaining 42.5 percent.

Molson Coors president of emerging growth Pete Marino indicated the structure of the U.S. venture is similar in structure to its Canadian counterpart. David Coors, vice president of Next Generation Beverages, which oversees Molson’s cannabis ventures, will serve on Truss CBD USA’s board of directors.

“CBD beverages are a growing segment within the non-alcohol beverage category and this JV provides us an opportunity to build capabilities in Colorado. We chose Colorado because of its established regulatory framework for CBD and we plan to approach any opportunities in full alignment with our commitment to commercial responsibility, transparency and compliance.” – Marino in a statement via BevNet

The venture will not see hemp-derived CBD drinks produced at Molson Coors facilities and the company did not offer specifics on how and when production would begin in Colorado. In Belleville, Ontario, Hexo is constructing a 2.5 million-square-foot facility for Truss cannabis beverages.

Molson Coors is the second-largest beer-maker in the U.S.

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MedMen Executives May Forfeit Mansions Over Unpaid Debts

4/17/2020

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Milestone Investments LLP, an early angel investor in MedMen, has filed an official complaint against co-founders Adam Bierman and Andrew Modlin as well as current Chief Strategy Officer Christopher Ganan that could see the executives forced to forfeit their homes, according to a Law360 report.

The trio reportedly offered their Los Angeles, California mansions as collateral on a $10.2 million loan. The Alaskan investment firm also loaned the executives $2 million for the purpose of purchasing 4.6 million shares of MedMen stock. The loan was granted on the condition that proceeds from selling the stock would go to paying back the loan.

In the official complaint Milestone Investments LP v. Ganan et al., Milestone asserts that they do not believe the men have any intention of paying off the loans.

Their luxurious homes were put up against the loan in December 2019 as the distribution chain began to crumble; Modlin had very publicly purchased a mansion in the Hollywood Hills the previous summer.

Within 15 days of executing the loan, Milestone claims that they repeatedly asked for the deeds of trust. The three men were sent notices of default by Milestone on March 26 but Modlin had sold his WeHo mansion to a YouTuber just six days prior for a meager profit.

Currently, only Ganan has complied with the request. Milestone Investments is seeking a court order requiring the men to surrender the deeds, sell off the shares they had purchased, and pay back the $2 million loan they used to acquire them.

In January 2020, MedMen informed many cannabis producers and growers that they wouldn’t be able to pay their invoices. Weeks after that development, Bierman stepped down as CEO — at this time, Bierman and Modlin both gave up their super shares, leaving each with just a 5% stake in the corporation.

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Massachusetts Judge Affirms Governor’s Order to Close Dispensaries

4/17/2020

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A Massachusetts judge has ruled that Gov. Charlie Baker (R) acted within his authority to shut down recreational cannabis sales in the state, although the judge said he believed the shops could be reopened safely, the Boston Globe reports. The lawsuit was filed last week on behalf of dispensary owners and one medical cannabis patient.

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.

“It was reasonable for the governor to be concerned that the relatively few adult-use marijuana establishments in Massachusetts are more likely than liquor stores or [medical marijuana dispensaries] to attract high volumes of customers, including people traveling from other states. The governor’s decision to treat medical marijuana facilities and liquor stores differently than adult-use marijuana establishments has a rational basis and therefore is constitutional.” – Salinger in his ruling via the Globe

Salinger added that the plaintiffs made a “convincing showing” in their argument that the dispensaries could reopen safely by limiting sales only to Massachusetts residents and requiring appointment-only shopping or curbside pickup.

Adam Fine, an attorney at Vicente Sederberg who represented the plaintiffs, called the decision “unfortunate” but that he and his clients were “pleased” that Salinger “rejected the governor’s stated rationale” for closing the dispensaries “by declaring he could ‘lawfully’ limit adult-use cannabis sales to Massachusetts residents.”

David Torrisi, the president of the Massachusetts Cannabis Dispensary Association, said he was “encouraged” by the ruling because the judge acknowledged the industry “has several tools at its disposal” that would allow the shops to reopen safely.

Attorneys said they were still deciding whether they would appeal the ruling.

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Study Suggests Cannabis Consumer Product Knowledge Is ‘Very Poor’

4/16/2020

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A study by the University of Buffalo and University of Michigan shows that even enthusiastic cannabis consumers can have a low level of knowledge about THC, CBD, and effective dosing.

The researchers surveyed about 500 attendees of the Hash Bash in Michigan, asking them to fill out a 24-item questionnaire. Of the respondents, two-thirds said they consumed cannabis daily – with 85 percent claiming use for health or medical benefits – and 78 percent said their cannabis knowledge came from their own experiences. Another 18 percent said their knowledge of cannabis dosing was from their primary care provider, while 23 percent said they got their information from a medical cannabis caregiver or dispensary.

The survey asked participants what amounts they considered to be effective doses for CBD and THC and included a box for “I don’t know.” The majority (53 percent) ticked the “I don’t know” box for THC dosages and 68 percent for CBD dosages. Another question asked what the participant thought were the percentages for high and low THC and CBD strains. The majority of respondents (58 percent) believed that a low-THC cannabis strain was 20 percent THC or higher – which is considered a high-THC strain. Another 22 percent said a low-THC strain was 40 percent THC or higher – a level that exceeds anything available commercially.

Cannabis products in Michigan‘s legal market are required to list cannabinoid content on product packaging.

The vast majority – 86 percent – of respondents believed that a low-CBD strain was 10 percent or higher – which would actually be considered a high-CBD strain. About half believed that a low-CBD strain contained 30 percent CBD or higher, which exceeds the CBD level of any existing strain.

Other participants gave estimates of 91 milligrams as an effective dose for THC and 177 milligrams for CBD, while one participant said that 1 million milligrams (or 1 kilogram) of THC was an effective dose. Daniel Kruger, PhD, lead author of the study and research investigator with the Population Studies Center at the University of Michigan, noted that a kilogram of THC would “fill an entire football stadium full of people and get them all high.”

“Even the people who are most enthusiastic have very poor knowledge of cannabinoid content. They greatly overestimated how much THC and how much CBD was in various strains, and what the effective dosages were. … We really have to educate people. This has very real consequences, because these compounds have differential effects.” – Kruger in a statement

While the survey certainly demonstrates a need for increased education among some cannabis consumers, it has obvious limitations, primarily sample size — the survey only features attendees at a specific event in Michigan — and potentially presentation, as many consumers do not think about cannabis doses in milligrams.

The study, “Frequent cannabis users demonstrate low knowledge of cannabinoid content and dosages,” is published in the Drugs: Education, Prevention and Policy journal.

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Canopy Growth Exits Multiple International Markets

4/16/2020

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Canopy Growth Corp. announced this morning that it is taking steps to dramatically restructure its global operations. The changes are meant to encourage “strategic focus” as the company seeks to align itself with the realities of the international cannabis market.

Specifically, the company announced it will sell off its operations in South Africa and Lesotho; it will shutter its indoor facility in Yorkton, Saskatchewan to “further align production in Canada with market conditions;” and it will shut down its hemp farming operations in Springfield, New York. The company’s Colombia-based cultivation facility will also be closed as the company moves to an “asset-light” model there that will rely on local suppliers for raw materials.

The changes will also lead to the loss of about 85 full-time positions at the company. According to Marijuana Business Daily, nearly half of the lost jobs come from the company’s Colombian operations.

“When I arrived at Canopy Growth in January, I committed to conducting a strategic review in order to optimize our cost structure and reduce our cash burn. I believe the changes outlined today are an important step in our continuing efforts to focus the Company’s priorities, and will result in a healthier, stronger organization that will continue to be an innovator and leader in this industry.” — David Klein, Canopy Growth CEO, in a press release

“I want to sincerely thank the members of the teams affected by these decisions for their contributions in helping build Canopy Growth,” Klein said.

MarketWatch reports that Canopy’s U.S.-listed shares have fallen 40.4% over the past three months.

In March, Canopy shuttered two major greenhouses in Canada and laid off about 500 workers.

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Florida Senate Asks Court to Block Adult-Use Cannabis Proposal

4/16/2020

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The Florida Senate is attempting to use a new state law to block a proposed recreational cannabis amendment from 2022 ballots, the Orlando Sentinel reports. The law calls on the state Supreme Court – which is responsible for approving ballot initiative language – to consider whether proposed amendments are “facially invalid under the United States Constitution.”

Senate attorneys argue that since the adult-use proposal championed by Make It Legal Florida runs afoul of federal law it should be considered invalid under the new state law, the report says. In Florida, the Supreme Court reviews ballot language and titles to determine whether they meet legal standards including whether the proposal is misleading. Florida Senate attorneys argue that the language does not adequately inform voters of the conflict of the proposal with federal law and is, therefore, misleading.

Make It Legal Attorneys argue that the failed 2014 medical cannabis proposal and the 2016 measure which was approved by voters set precedent because they both violate federal law but were approved for ballots by the Supreme Court.

“Under this (Supreme) Court’s precedent, ballot summaries are not required to recite the current state of federal law, or an amendment’s effect on federal law. Nor must a ballot summary remind voters that they are voting to amend Florida’s Constitution rather than federal statutes. … Florida voters do not require a lesson in these elementary civics principles, especially having voted on marijuana amendments in two out of the last three election cycles.” – Make It Legal Florida in a January 20, 2020 legal brief

On Monday, the Supreme Court issued an order inviting attorneys in the case to file briefs addressing the implications of the new law. The state House, Florida Chamber of Commerce, and Attorney General Ashley Moody have all filed briefs attacking the proposed amendment over its conflict with federal law.

The court is expected to hear arguments on the matter May 6.

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Montana Legalization Group Suing to Collect E-Signatures

4/16/2020

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Montana legalization advocates are suing the state saying they should be allowed to collect petition signatures electronically during the coronavirus emergency, KTVH reports. In the lawsuit, New Approach Montana argues that collecting signatures in-person in the middle of the state’s stay-at-home order would be “neither ethical nor permitted.” The group is also asking for the deadline for signatures to be submitted be moved from June 19 to August 3.

Pepper Petersen, New Approach Montana’s political director, said the organization already has a contract with DocuSign and the company can verify electronic signatures in a way that meets state requirements. He explained that the technology “isn’t new” or “novel” and that the state already accepts electronic signatures for many other uses.

“This is tried, true, tested technology. We’re just asking that for this emergency, we’re able to use that technology to protect the lives and well-being of Montanans – and also our democracy.” – Peterson to KTVH

New Approach Montana has already had two potential ballot initiatives to legalize recreational cannabis approved by the Secretary of State’s office. Initiative 90 would create the industry framework and impose a 20 percent tax on sales. I-90 requires at least 25,468 signatures to appear on November ballots. Constitutional Initiative 118 would amend the state Constitution to allow people 21-and-older to purchase and possess cannabis. CI-118 requires 50,936 signatures to be put to voters.

A competing proposal by MontanaCan would legalize cannabis for those 18 and older and impose a 5 percent tax; however, that measure has not passed legal review by the secretary of state.

At least two other cannabis initiatives have been stalled due to the coronavirus pandemic. In Missouri, advocates said the state’s stay-at-home order prevents them from signature gathering and will prohibit them from meeting the May deadline to turn in the petition. In Oklahoma, the secretary of state halted all campaign efforts, including signature gathering, until the state’s emergency declaration is withdrawn.

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Aurora Cannabis Announces Stock Consolidation Plan

4/15/2020

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Aurora Cannabis Inc. announced on Monday that it is taking steps to shore up liquidity and regain compliance with New York Stock Exchange requirements after its stock traded at less than $1 for more than 30 days.

The plan includes a 1-for-12 stock split which will see the company consolidate all of its outstanding common shares on the basis of one common share for every 12 common shares currently outstanding. That consolidation is expected to take effect on or about May 11.

Aurora said it currently has 1,313,494,990 common shares outstanding and, “assuming no additional common shares are issued prior to the consolidation,” the action will reduce the issued and outstanding common shares to about 109,457,915.

“The company expects the consolidation to restore compliance with the NYSE’s continued listing standards, and to provide access to a broad universe of investors, access to equity capital and trading liquidity.” – Aurora in a press release

The Canadian cannabis firm said it had $205 million in cash at the end of March, including all amounts raised in an at-the-market (ATM) offering program announced last May. The company is planning a new ATM program to raise additional equity capital on top of the roughly $350 million that remains available under its outstanding shelf prospectus. The firm indicated it plans to use a portion of those funds “to provide further balance sheet strength and preserve flexibility given macroeconomic uncertainty caused by COVID-19.”

Michael Singer, executive chairman and interim CEO, said the plans “are the appropriate actions” for the company to strengthen their cash position and “maintain financial flexibility.”

Aurora said that on April 8 they received notification from the NYSE that, as a result of its common share price falling below an average of $1.00 for a consecutive 30 trading-day period, it was not in compliance with one of the NYSE’s continued listing standards. That lack of compliance with the NYSE did not affect the company’s status on the Toronto Stock Exchange.

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Florida Judge Excuses Doctor Accused of Rubber-Stamping Cannabis Patients

4/15/2020

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A Florida administrative law judge has sided in favor of a physician who was accused by the state of having improper ties to medical cannabis dispensary Trulieve and not adequately evaluating an undercover investigator who sought a medical cannabis recommendation, CBS Miami reports.

Officials argued that Dr. Justin C.K. Davis violated the state’s medical cannabis law by subletting office space from a Trulieve dispensary in Lady Lake and that the physician served only as a “rubber stamp” when the investigator sought approval to use medical cannabis for purported post-traumatic stress disorder.

In the decision, Judge Garnett Chisenhall wrote that while it was “reasonable to infer” that Davis’ close proximity to a medical cannabis dispensary “facilitated the acquisition of patients” for the doctor and dispensary, the evidence showed that Davis and other physicians “were not receiving discounts on those subleases.” Additionally, Chisenhall determined that there was “no persuasive evidence” to suggest that Davis made referrals to Trulieve or that Trulieve referred prospective patients to Davis.

Chisenhall also determined that Davis “had a meaningful discussion” with the undercover investigator posing as a patient “and probably would have had a more in-depth discussion if [the investigator] had not been intentionally evasive.”

“Furthermore, the preponderance of the competent substantial evidence in this case demonstrates that Dr. Davis performed a meaningful review of [the investigator’s] medical history and symptoms, meaningfully discussed … PTSD symptoms with [the investigator], and in no way acted as a ‘rubber stamp’ of the prescription written.” – Judge Chisenhall in the decision

Under administrative law, Chisenhall’s recommendation will be sent back to the state’s Health Department for final action. Under the state’s cannabis law, physicians are prohibited from having “direct or indirect economic interest” in medical cannabis companies.

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Michigan Scraps Plan to Let Caregivers Supply Adult-Use Market

4/15/2020

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Michigan’s Marijuana Regulatory Agency has abruptly stopped the transferring of caregiver-grown flower to the state’s adult-use market. The April 8 announcement came less than a month after the agency said it would allow such transfers until October 1.

“Effective April 8, 2020, the MRA will not permit caregiver-produced or derived product to enter the adult-use market. Any equivalent license transfer request submitted to the MRA that includes caregiver-produced or derived products will be denied.” – MRA Advisory Bulletin, April 8, 2020

The sudden new rules apply to both caregiver cultivators and processors.

According to a Detroit Free Press report, those growers accounted for about 60 percent of both medical and recreational cannabis sold in the state. Medical cannabis dispensaries may still obtain products from licensed caregivers.

The MRA action comes after one large-scale licensed caregiver transferred more than 5,000 pounds of cannabis to the adult-use market within the last month, according to the Free Press. Under the state’s medical cannabis law, caregivers can only grow up to 72 plants total for as many as six registered patients.

David Harns, MRA spokesman, told the Free Press that allowing caregiver-derived products “was meant to supplement the medical market” and that the recreational market is “moving toward a self-sustaining eco-system.”

Adult-use dispensaries may sell caregiver-grown products they have remaining on the shelf, but the state will not authorize any new transfers. The MRA bulletin also notes that adult-use dispensaries may not transfer products or plants to medical cannabis establishments.

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Leafwire and MJBiz Enter Networking Partnership Amid COVID-19

4/15/2020

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Cannabis networking site Leafwire and Marijuana Business Daily, the publishing firm behind the largest B2B cannabis trade show, have decided to partner for a digital space dedicated to cannabis industry networking and education, Forbes reports.

MJBizDaily has already postponed or reenvisioned many of their events in the wake of COVID-19 and the new partnership with Leafwire — the self-described “LinkedIn of Cannabis” — will offer would-be event attendees a shot at engaging with other industry professionals while still honoring social distancing guidelines.

The companies plan to lead multiple discussion groups on the Leafwire platform focused on MJBizDaily content; subject matter experts will help to moderate questions from the digital crowd.

“Meeting people where they are online is key right now and without the benefit of traditional in-person gatherings, it’s even more important to provide ways for our passionate, active community to engage and communicate. We always want to meet people where they are and in their communication locations of preference. Leafwire has an excellent and growing community we want to support and engage with.” — Chris Day, MJBizDaily’s VP of External Relations, via Forbes

Leafwire founder and CEO Peter Vogel said, “We’re confident the Leafwire audience will be excited to have these groups laser-focused on the components of the industry that people care most about.”

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Profile: Brownie Mary Rathbun, Outlaw Caregiver

4/15/2020

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It’s April 2020 and we’re using the whole month to honor cannabis and counterculture activists who helped pave the way for society’s reacceptance of cannabis. Last week, we touched on the life and mission of Baba Ram Dass; the week before, we focused on fellow San Francisco activist Dennis Peron, who, alongside a host of other cannabis heroes (including Brownie Mary), helped write the first successful medical cannabis ballot initiative.

Early Life

Best-known for her famous edible infusions, having a “sailor’s mouth,” and for her polyester pants suits, Rathbun was born in Chicago, Illinois in 1922 to a conservative Irish Catholic mother. The family moved to Minneapolis, Minnesota where Rathbun spent the rest of her childhood. In her teen years she moved out of her conservative home and started waitressing to pay the bills, she would continue waitressing to make ends meet for her entire life. As a teen, her free time was spent fighting alongside fellow activists for abortion rights and the rights of miners to form unions.

During World War II Rathbun moved to San Francisco. She met a man at a USO dance and eventually wed and had a child named Ruth. The marriage didn’t last and she tragically lost her daughter in a car accident. By the 1960s, Rathbun had immersed herself in the anti-war movement while waitressing at an IHOP.

Eventually, Rathbun found herself at the iconic Cafe Flore smoking a joint with Dennis Peron. Soon after this 1974 meeting, Mary Jane Rathbun started baking cannabis into brownies to sell around the Castro neighborhood.

The intersection of 18th and Castro St in the famously LGBTQ San Francisco neighborhood.

Mary Jane Becomes Brownie Mary

The now sixty-year-old woman would advertise her brownies on local city bulletin boards citing them as “magically delicious” with other indicators that they weren’t your average baked goods. Mary was known around the Castro neighborhood for selling her treats out of a woven basket, and Peron would sell them at his pot shop in the area. Eventually, an undercover cop saw one of her coded signs and Mary Jane’s apartment was raided in January 1981. They found 18 pounds of dried cannabis flowers and 54 dozen freshly baked brownies, it’s said that she was making around 50 dozen brownies a day at this time.

After the arrest, the media nicknamed her ‘Brownie Mary’ and the public empathized with her due to her age and gender. She was given 500 hours of community service for the charge and started bouncing around different charities in the area. Those charity hours, much like the final arrest of Dennis Peron, would show Brownie Mary Rathbun her true calling.

Called to Action

One of the community service jobs that Rathbun was assigned to was the Shanti Project, a group that was responding and supporting those affected by the emerging HIV/AIDS crisis. While working with patients and familiar faces with the Shanti Project, Mary was still providing brownies for her peers. This is when she noticed something special — the cannabis in her brownies was helping her patients find relief from the wasting syndrome that ravaged their bodies.

Mary started baking hundreds of brownies and distributing them to HIV/AIDS and cancer patients free of charge, using her own social security check to pay for supplies. But her momentum was crushed after she was arrested again. Rathbun was walking down the street on her way to drop off a bag of four dozen cannabis brownies for a friend going through the rougher parts of chemotherapy and ran into the officer from her first arrest. He asked about the contents of her bag and she ended up in city jail until the district attorney eventually dropped the charges.

Proposition P

Despite her run-ins with local police, she dedicated much of her life in the 80s to volunteering in the AIDS ward. By the early 90s, Peron had asked her to speak at a meeting of the AIDS Coalition to Unleash Power (ACTUP) about how cannabis brownies could help relieve some of the pain of the epidemic. It was at this meeting where she publicly admitted to sneaking medicated brownies to patients in the AIDS war, which was one of her earliest displays of activism for safe medical cannabis access. Their work together at ACTUP evolved and Rathbun, Peron, worked together with a small team to write Proposition P.

The city-wide proposition was approved by 79% of San Franciscans in 1991 and recommended that the State of California and the California Medical Association make medical cannabis available for medical purposes. The proposition would also protect physicians who prescribed medical cannabis from penalties and persecution.

The win still didn’t stop Rathbun from being arrested a third time for her cannabis infusions less than one year later. This arrest brought international coverage as the district attorney attempted to prosecute her in the People v. Rathburn. She pleaded not guilty to two counts of felony possession and was eventually acquitted. Her legal defense relied on the fact that her brownies were a medical necessity. When she testified, she showed that her nobility in the act heavily outweighed the condemnation of the law she broke. She was most likely inspired by this experience when one month after her arrest she spoke in front of the San Francisco Board of Supervisors in defense of the plant. The board passed a resolution that day to make persecuting cultivators or people in possession of medical cannabis the city’s lowest enforcement priority. In the same meeting, they recognized her for her volunteerism and declared August 25 “Brownie Mary Day”.

Brownie Mary speaks to a crowd at People’s Park in Berkeley in 1995.

Mary’s next stop was DC, where she joined ACTUP for a protest against the medical cannabis policies of then-president George H.W. Bush. Months prior, the head of the United States Public Health Service (USPHS), James O. Mason, had discontinued a program that allowed a small group of patients to use medical cannabis. In a public speech on the matter, he made ignorant and disgraceful comments that implied giving AIDS patients medical cannabis would promote sexual deviance and promiscuity. ACTUP delivered Mason a letter that asked for a full restoration of the medical program or his resignation. At the protest outside of the USPHS Rathbun called on Mason to “follow me around for two days as I visit my kids in the wards, and then see where he stands on this”. The government official didn’t take her up on the offer, so the team went back to fight the local fight.

Cannabis Buyers Club

Rathbun opened the Cannabis Buyers Club alongside Dennis Peron in 1992 and was instrumental in the statewide campaign for Proposition 215 in 1996. The successful voter initiative allowed for the cultivation and possession of cannabis among patients with a physician’s recommendation. The vote passed with 55% percent approval in the state and ultimately opened the door for many other states to pass similar initiatives. The next year, Rathbun and Peron had the honor of serving as Grand Marshals in the San Francisco Gay Pride Parade for their work on behalf of the queer community; by this time, she was a colon cancer survivor walking on two artificial knees. She was consuming her own brownies so that she could walk despite her ailments. Her health would decline until she was eventually bed-ridden at Laguna Honda Hospital, a nursing home for the poor.

Mary Jane Rathbun passed away on April 10, 1999 of a heart attack at age 76. A candlelight vigil was held in her honor in the Castro district where she first began selling her iconic pot brownies. To this day, nonchalant passersby at Dolores Park will have pot brownies, truffles, and other treats for sale — just one small cog in her everlasting legacy.

As we continue celebrating holidays like 4/20 and 7/10 — which have admittedly foggy origins — I would suggest that the industry start celebrating “Brownie Mary Day” on August 25 to honor the Mother of Medical Marijuana.

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Massroots Investors Sued By SEC for Stock Scheme

4/14/2020

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Founder of Dutchess Capital (now Altar Rock Capital) and early investor in Massroots Doug Leighton is being sued by the Securities and Exchange Commission (SEC) for his involvement in an alleged scheme to manipulate the cost of Massroots stock, New Cannabis Ventures reports. The lawsuit alleges that Leighton funneled investors into the cannabis company’s stock, even instructing them how much and when to buy and sell. Leighton also failed to report sales or holdings of the stock, which is legally required.

Two other companies controlled by Leighton — Bass Point Capital and Azure Capital — are named in the suit as well as fellow investors Michael Sullivan, David Hall, Zachary Harvey, Paul Dutra, Jason Harman, and Jessica Geran. The defendants were responsible for about 90% of the stock purchased by a private placement which was raised from a group of friends before it was publicly traded. Between April 2015 and March 2016, the group booked profits of $3.2 million, according to the SEC.

The lawsuit claims that Leighton used traceable email, text, phone calls, and in-person meetings to create a complicated investment scheme, all of which took place prior to Massroots going public. Leighton was able to keep track of his transactions with the help of Massroots CEO Isaac Dietrich, who provided Leighton with a Non-Objecting Beneficial Owner list on more than one occasion.

The SEC is seeking a permanent injunction, demanding repayment of all ill-gotten gains and payment of civil penalties that apply to the case. Read the full complaint here.

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Federal Court Rules In Favor of Cannabis Patient Who Is Suing Amazon

4/14/2020

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A worker who was fired by Amazon for their medical cannabis use won a key federal court decision this week after the U.S. District Court agreed to push the case back to the New Jersey Supreme Court, Marijuana Moment reports.

The worker, who is only listed in the lawsuit by his initials D.J.C., filed his lawsuit against Amazon in 2019 after he was fired over a failed drug test. The suit originated in the New Jersey Superior Court but Amazon filed for the case to be moved to federal court, where the company’s targeting of cannabis patients would be protected by federal law.

D.J.C. successfully had the case returned to New Jersey, where he has a significantly better chance at a positive outcome, by amending his suit to include his former manager (who is based in New Jersey) and by removing references to the federal Americans with Disabilities Act.

The case transfer is especially good news for the former Amazon worker because New Jersey’s Supreme Court ruled in March that medical cannabis patients cannot be fired over a failed drug test for cannabis use. The protections do not, however, protect patients if they are intoxicated at work.

“The plaintiff’s case has only gotten legally stronger since March of this year,” attorney Matthew Collins said in the report.

“It puts Amazon in this situation of being bound by legal precedent that wasn’t really clear in 2018, but they’re going to be bound by it in 2020 and going forward.” — Matthew Collins, attorney for Brach Eichler LLC, via Marijuana Moment

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Denver Approves Cannabis R&D Licensing Plan

4/14/2020

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The Denver, Colorado City Council has approved a new cannabis business license for research and development, Denverite reports. Denver Department of Excise and Licenses executive director Ashley Kilroy called the license type “important” and would keep the city “at the forefront” of the industry.

The measure had one holdout on the city council, Councilwoman Candi CdeBaca, who said the license should be open only to Colorado residents and without that requirement, the licenses would be scooped up by tobacco or pharmaceutical companies.

The state passed a law in 2017 that includes cannabis R&D licensing but, according to a Denver Post report, only one company – MedPharm Holdings – has ever applied for the license. According to the report, Medpharm was granted a state R&D license in 2018 anticipating Denver would allow the licenses.

MedPharm told the Post that it plans to test the effect of cannabinoids on Alzheimer’s and dementia patients.

Denver is in the midst of updating its cannabis rules, which will include a lottery for new retail licenses and social equity rules, according to Denverite. Kilroy said the city is still working on how to define “social equity applicant.”

City licensing department spokesperson Eric Escudero called social equity the city’s “number one focus” when it comes to Denver’s cannabis industry.

Officials are also considering increasing the hours that dispensaries are allowed to stay open. Currently, dispensaries are only allowed to operate until 10 p.m. and some stakeholders are asking to push that to midnight. Kilroy said that the last time the city allowed later store hours, crimes against dispensaries increased.

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Colorado Allows Online Cannabis Sales, Delivery Not Included

4/14/2020

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Under Colorado’s emergency pandemic rules, cannabis dispensaries can now accept online orders and customers can pick them up at the shop, the Colorado Sun reports. Morgan Fox, a spokesman for the Denver-based National Cannabis Industry Association, said the changes are a step but it remains limited as credit card companies still shy away from doing business with the industry.

“We have an opportunity to prove that cannabis businesses can run these operations and do so effectively under extremely dire circumstances.” – Fox to the Sun

The order does not allow home delivery of adult-use products, which Cannabis Station manager Ben Prater called “a necessity at this point.” Lawmakers did approve cannabis delivery laws last year and companies can deliver medical cannabis this year; under the rules, adult-use products can be delivered in 2021, the report says. Localities can permit cannabis deliveries and Rachel Gillette, a board member for Colorado NORML, said municipalities should pass delivery laws as citizens are hunkered down amid the state’s stay-at-home order.

Gov. Jared Polis’ (D) office told the Sun that there are no plans to allow businesses to apply for recreational cannabis delivery licenses early and delivery of recreational products would not be allowed after the 120-day emergency order expires.

California, Massachusetts, Michigan, Illinois, and Oregon allow recreational cannabis delivery services, but the practice remains limited due to the lack of credit card processing companies that are willing to serve the industry.

Colorado‘s Marijuana Enforcement Division is unable to authorize online sales without changes in state law but can evaluate whether the emergency rules should be amended, renewed, or repealed.

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Cresco Labs Recruiting New Employees From Industries Hit by Coronavirus

4/14/2020

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Multi-state cannabis company Cresco Labs is seeking to hire retail employees for its Illinois Sunnyside dispensaries and is focusing its recruitment efforts on “industries significantly impacted” by the coronavirus outbreak, the company announced on Monday. Cresco said those industries include the restaurant and hospitality sectors.

The firm said it is looking to fill 250 full-time positions, including wellness advisors, inventory managers, managers, assistant managers, and security personnel.

Charlie Bachtell, Cresco Labs’ CEO and Co-Founder, said that during the pandemic, “the needs of patients and customers in Illinois is growing and demand continues to outpace supply.”

“The COVID-19 pandemic has altered the daily lives and disrupted the livelihoods of everyone in this country, with some communities, groups and individuals impacted more than others. As the states in which we operate have acknowledged cannabis as an ‘essential’ industry, we understand Cresco’s responsibility to continue operations, to be stewards of this industry and to be leaders in our communities. Cresco has a culture that focuses on, and prioritizes, the needs of all stakeholders – we are committed to do our part to maximize our impact and help those most affected by these unfortunate circumstances.” – Bachtell in a statement

Additionally, Cresco has implemented an essential pay program for “frontline” salaried and hourly workers at its dispensaries, and cultivation and distribution facilities. That program will see employees receive additional compensation during “these unprecedented times,” Bachtell said.

Cresco has also partnered with more than 90 restaurants over eight states in which it operates to purchase, pick up, and deliver more than 650 lunches to its workforce during the pandemic.

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