New York’s First Cannabis Flower Products Now Available for Patients

9/24/2019

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Curaleaf has released its Ground Flower Pods on a limited basis in New York, marking the first time a flower product has been made available under the state’s medical cannabis program. The company said that while the pods – designed to be used with a vaporizer – are currently only available on a limited basis, they will be available throughout the state in the coming weeks.

Joseph Lusardi, CEO of Curaleaf, called the product “a win” for the state’s medical cannabis patients.  

“Flower is cannabis in its raw form and therefore the most affordable form of cannabis. We can increase patient access by providing more affordable products and offering more options for patients in the medical program.” – Lusardi, in a statement

The Health Department approved the addition of some flower products to the regime last year; however, sales of purely raw forms of cannabis are still not permitted. In the action, the agency also added lozenges, chewable tablets, and topicals to the list of products approved for sale in dispensaries. 

The Ground Flower Pods must be used with the company’s tabletop vaporizer. Each pod contains 350 milligrams of active cannabinoids in a 20:1 THC to CBD ratio in both Indica and Sativa strains. 

Curaleaf operates in 12 states with 49 dispensaries, 14 cultivation sites, and 13 processing centers. As of Sept. 17, there were 107,111 registered patients and 2,504 registered practitioners in the state. 

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The New Hampshire Capitol Building located in Concord, New Hampshire.

New Hampshire Lawmakers Override Medical Cannabis Bill Veto

9/24/2019

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New Hampshire lawmakers have overturned a veto by Gov. Chris Sununu (R) that would have cemented a three-month waiting period before a patient could get a medical cannabis recommendation from a provider, according to a New Hampshire Union Leader report. 

Sununu said he vetoed the measure to “preserve responsible prescribing,” according to an NHPR report. The Senate overrode the veto 17-7 after three Republican senators joined all 14 Democrats. The override passed in the House 238-117 – one vote more than the required two-thirds majority required to override a governor’s veto. 

Democratic State Sen. Tom Sherman, a licensed gastroenterologist, pointed out that patients didn’t have to wait at all to get other drugs like opioids and antipsychotics, which have more serious side effects than medical cannabis. The law does require that the patient have a relationship with the provider.

“With therapeutic cannabis, we are waiting three months. What do we call that? Malpractice, delay of care. This is a good bill.” – Sherman, during the debate, via the Union Leader 

The House had also overridden the governor’s veto of a bill allowing the state’s medical cannabis patients to grow their own cannabis, the Concord Monitor reports, but that measure was rejected in the Senate. The Senate had originally passed the bill by a 14-10 margin – two votes short of the two-thirds majority. 

The waiting period bill was just one of two vetoes overridden by the legislature this session. The first was in May after the governor vetoed a measure to repeal the state’s death penalty.

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EU Approves Epidiolex for Childhood Seizure Disorders

9/24/2019

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The European Union has approved GW Pharma’s cannabis-derived drug, Epidiolex, for two childhood epilepsy conditions, the BBC reports. The approval marks the first time the E.U. has approved a cannabis-based drug for use in the bloc. 

The drug has been approved as a treatment option for children as young as two who suffer from Lennox-Gastaut syndrome or Dravet syndrome. 

Ley Sander, Medical Director at the Epilepsy Society and Professor of Neurology at University College London, said the drug “will bring hope for some families and EU approval feels like a positive step.”

“CBD was not recommended by NICE for prescription on the NHS. It is important that the pharmaceutical industry continues to work with the medical advisory body to ensure that drugs are cost effective and that its long-term effects are clear.” – Sander, to the BBC

Last month, the National Institute for Health Care and Excellence – a United Kingdom policy group – decided not to recommend CBD with clobazam for the treatment-resistant epilepsy conditions, citing the unknown long-term efficacy. Epidiolex is made from CBD and clobazam.

In 2018, the United Kingdom approved some THC-containing medicines for treating conditions for which all other options have failed. Those prescriptions are rare in the country; however, the synthetic THC drug Nabilone is approved in the nation for people undergoing chemotherapy and Sativex has been approved for people with multiple sclerosis. 

In February, the E.U. passed a resolution to help member nations deschedule cannabis, following a recommendation from the World Health Organization. That resolution seeks to prioritize scientific and clinical studies related to cannabis.

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NIH Awards $3 Million for Study of Cannabinoids, Terpenes

9/23/2019

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The National Center for Complementary and Integrative Health (NCCIH), a section of the National Institute of Health, has issued nine research grants to study the “potential pain-relieving properties and mechanisms of actions of the diverse phytochemicals in cannabis, including both minor cannabinoids and terpenes.” Totaling three million dollars, the awards include an impressive list of institutions and research topics.

The grant recipients and subsequent studies include:

  • Boston Children’s Hospital — Mechanism and Optimization of CBD-Mediated Analgesic Effects
  • University of California, San Francisco — Neuroimmune Mechanisms of Minor Cannabinoids in Inflammatory and Neuropathic Pain
  • Research Triangle Institute, Research Triangle Park, North Carolina — Minor Cannabinoids and Terpenes: Preclinical Evaluation as Analgesics
  • New York University School of Medicine — Identifying the Mechanisms of Action for CBD on Chronic Arthritis Pain
  • University of Texas, Austin — Synthetic Biology for the Chemogenetic Manipulation of Pain Pathways
  • University of Utah, Salt Lake City — Exploring the Mechanisms Underlying the Analgesic Effect of Cannabidiol Using Proton Magnetic Resonance Spectroscopy
  • Emory University, Atlanta — Mechanistic Studies of Analgesic Effects of Terpene Enriched Extracts from Hops
  • University of Illinois at Urbana-Champaign — Systematic Investigation of Rare Cannabinoids With Pain Receptors
  • Temple University, Philadelphia — Analgesic Efficacy of Single and Combined Minor Cannabinoids and Terpenes

Minor cannabinoids and certain terpenes found in the cannabis plant may have analgesic properties but there has been little research on these substances to understand their effects and underlying mechanisms. The cannabis plant contains more than 110 cannabinoids and 120 terpenes, but the only compound that’s been studied extensively is THC.

According to David Shurtleff, Ph.D. and deputy director of the NCCIH, “There’s an urgent need for more effective and safer options.”

“THC may help relieve pain, but its value as an analgesic is limited by its psychoactive effects and abuse potential. These new projects will investigate substances from cannabis that don’t have THC’s disadvantages, looking at their basic biological activity and their potential mechanisms of action as pain relievers.” — Shurtleff, in a press release

 

 

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New Mexico Hemp Company Nets State Job Training Grant

9/23/2019

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Santa Rosa, New Mexico-based New Mexico Hemp Services will receive $250,000 from the state Economic Development Department for job training, the Associated Press reports. The funds come from a $2 million state Job Training Incentive Program.

New Mexico Hemp Services will use the funds to train 17 employees at an average wage of $19.42 per hour. The JTIP reimburses 50 percent to 75 percent of employee wages for classroom and on-the-job training. New Mexico Hemp Services plans to have its operations up and running by the end of the year, with plans to hire lab technicians, extraction chemists, storage clerks, and an electrician.

In 2018, the state finalized rules allowing hemp to be cultivated in the state so long as farmers work with New Mexico State University.

Brad Lewis, Department of Agriculture division director who manages the state’s hemp program, told New Mexico Political Report that the agency is working “in pretty close cooperation” with the state’s hemp industry and was “cautiously optimistic” that growers would be able to make money off of their crops next year.

Consultant MJ Balizan said the industry was taking small steps this year towards bigger cultivation opportunities for next year.

“This is a learning year. It’s a year for farmers, if they’re interested in this market, to start small.” — Balizan, via New Mexico Political Report

New Mexico Hemp Services is one of 10 businesses to receive a JTIP grant during the round. The economic development agency has $10 million in JTIP funds to award in the fiscal year 2020.

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Massachusetts’ Host Community Rules Under Fire by Cannabis Board Chairman

9/23/2019

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Massachusetts social equity applicants have been stymied by the state’s host community rules paired with a lack of funds, Cannabis Control Commission Chairman Steven Hoffman said in an interview with MassLive. Of the 537 applications first submitted to the commission, just 14 came from “economic empowerment” applicants; and from the 122 economic empowerment businesses given the priority status, only 28 were minority-owned.

“The biggest issue is they don’t have any money,” Hoffman said in the interview, noting that if a lender is willing to invest in a cannabusiness, “they will not lend to someone who lives in Boston, has a criminal record and $8 net worth.”

Hoffman also said that the host community agreements – which require businesses to pay a 3 percent community impact fee – also pose problems for social equity applicants because larger businesses can, and do, pay more than the 3 percent required by law.

Those host agreements have come under fire recently after the arrest of Fall River Mayor Jasiel Correia, who allegedly used the host agreement to extort tens-of-thousands of dollars from cannabis companies. The Springfield City Council is also investigating a donation from a cannabis company to ensure it is not a bribe.

“It does give a disproportionate advantage to bigger companies that can afford to throw in a fire truck on top of their 3 percent.” – Hoffman, in an interview with MassLive

Hoffman said that officials need to “find other sources of financing” for economic empowerment applicants and that he floated the idea of a state-run bank to lend to the applicants but Gov. Charlie Baker did not approve the idea. He indicated he was working on developing a public-private partnership to create no- or low-interested loans for disadvantaged applicants and that some banks have approved the idea so long as the loans are guaranteed by the state.

Hoffman also noted that the commission is set to vote this week on rules that would authorize both home delivery and social-use of cannabis which would provide more potential licenses for minority-owned businesses.

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18 of 42 Ontario Second-Round Lottery Winners Disqualified

9/23/2019

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Nearly half of Ontario, Canada’s 42 cannabis license applicants have been disqualified from the second round lottery for breaching lottery rules and failing to submit all of the required documents, according to a Mondaq report. The disqualifications have sparked a legal action against the Alcohol and Gaming Commission of Ontario (AGCO) by 11 applicants.

The disqualifications are due, in part, to banks refusing to provide the companies with so-called “comfort letters” which prove to the government that the applicants have $300,000 in cash available.

According to the report, banks were “inundated” with requests, forcing them to stop providing the letters and 12 were rejected for failure to submit all required application documents. One winning firm withdrew its application.

The lawsuit against the AGCO by the rejected applicant claims the agency failed to follow its own rules for the lottery process; an Ontario court has issued a two-week stay of the lottery process and licensing results which prevents the AGCO from advancing the applications of the second-round winners.

The second lottery round opened on Aug. 7. During the first round in January, Ontario officials received 17,300 applications for just 25 licenses. Following the disqualifications, officials accepted just 23 applications.

Assuming this hiccup does not disrupt the industry roll-out, Ontario’s cannabis retailers are expected to open their doors on July 3, 2020.

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SAFE Banking Act Likely Getting a House Vote Next Week

9/20/2019

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Despite opposition from some cannabis legalization and social justice groups, the SAFE Banking Act is set for a House vote next week, Politico reports. One of the banking bill’s sponsors, Rep. Ed Perlmutter (D-Colorado), said he believes he has a two-thirds majority in the chamber which would allow the measure to be passed with no amendments and limited debate.

According to the report, the House version has been amended to include language specifically for hemp companies – likely included, in part, to get the attention of Senate Majority Leader Mitch McConnell to increase the odds of the bill being voted on in the Senate. It also includes language to prevent the revival of Operation Choke Point – a program enacted by former President Barack Obama that discouraged banks from doing business with wrongdoing merchants.

Rep. Andy Barr (R-Kentucky) told Politico that the anti-Choke Point language will likely get the attention of Senate Banking Chairman Mike Crapo. Crapo has previously indicated there would be amendments to the bill before it received a vote in the chamber.

Rep. Alexandria Ocasio-Cortez (D-New York) told Politico that she would likely vote “no” on the bill if it receives a vote before cannabis-related criminal justice legislation. The letter from activists sent to House leaders on Tuesday urged lawmakers to bring the Marijuana Opportunity Reinvestment and Expungement (MORE) Act up for a vote before the SAFE Banking Act.

“The winners of the war on drugs are going to become the winners on legalization. … This is only going to worsen the racial wealth gap and increase the legacy of the war on drugs.” – Ocasio-Cortez, to Politico

Ocasio-Cortez previously voted for the measure as a member of the House Financial Services Committee.

If the bill is approved by a two-thirds majority in the House it would put pressure on the Republican-led Senate to bring it up for a vote in the chamber.

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California Cannabis Companies Outnumbered 3:1 By Illegal Operators

9/20/2019

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A United Cannabis Business Association report has found about 2,835 unlicensed cannabis companies in California, with just 873 licensed operators, according to an NBC News report. The illegal operators, including storefronts and delivery services, outnumber legal operators 3-to-1 in the state.

UCBA president Jerred Kiloh said the numbers show that California is the only state with adult-use laws to “see a year-over-year reduction in legal sales.”

“We’ve yelled it from the mountaintop. We want better enforcement.” – Kiloh, to NBC News

Kiloh said that illegal businesses are thriving, in part, because of Weedmaps. Last year the Bureau of Cannabis Control sent a cease-and-desist letter to the company warning them to stop advertising unlicensed retailers on their site, or risk criminal and civil penalties. In August CEO Chris Beals announced the firm would no longer allow unlicensed businesses to advertise on the site, saying the U.S. retailers would be required to provide a state-issued license number on their listing. He said Weedmaps would restrict the use of its point-of-sale, online orders, delivery logistics, and wholesale exchange software-as-a-service platforms exclusively to licensed operators. Beals told NBC News that illegal operators would be completely removed from the platform by the end of the year.

“We don’t want to let Weedmaps dictate when they’re going to stop breaking the law,” Kiloh said in the report. “That doesn’t make sense.”

However, Kiloh said the that Weedmaps – and other places to find illegal operators, such as Google and Yelp – are “superficial” and the “underlying problem” is “insufficient licenses address market demand.”

In California, less than 25 percent of the state’s municipalities allow for cannabis businesses as the law allows towns and cities to ban operations.

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Nielsen: U.S. Cannabis Umbrella Could Reach $40B by 2025

9/20/2019

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According to Nielsen’s Total Consumer Report, legal U.S. cannabis sales could reach more than $40 billion by 2025. In 2018, the sector was estimated at $8 billion. The estimate includes both recreational and medical sales along with hemp-derived revenues.

“If recreational marijuana use were to become legal in all of the states in which it’s actively being considered today, we could very soon be living in a country where over one-third of U.S. adults reside in a legal recreational use state for marijuana consumption.” – Nielsen, “Brace for Impact: U.S. CPG Cannabis Sales to Rise by the Billions” report

In their “Brace for Impact” report, the analysis firm notes that cannabis flower sold in dispensaries fell from a 77 percent share in 2014 to a 48 percent share last year. A 2014 measure of legal cannabis sales in Colorado and Washington found that just 4 percent of cannabis sales in those states were vape pens, 9 percent were edibles, and 10 percent were “other formats.” In 2018, vape pen sales in Colorado, Washington, Nevada, and California comprised 19 percent of sales, edibles sales represented 11 percent of the markets, and “other formats” rose to 22 percent.

Nielsen also points out that in 2014 there were just 166 brands across the two legalized states; by 2018, that figure jumped to 2,600 brands across four states.

The agency also found that legalized cannabis would likely have an impact on other “sin” industries – with 41 percent of survey respondents who used cannabis saying they would try using cannabis to quit smoking tobacco, and 1 out of 5 saying they would spend less on store-bought beer due to their cannabis use. Another 35 percent said they would forgo over-the-counter pain relievers in favor of cannabis for back and neck pain.

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New D.C. Law Allows Medical Cannabis In Schools

9/20/2019

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Washington D.C. has passed emergency legislation to allow children enrolled in the District’s medical cannabis system to receive their medical cannabis at school. Sponsored by City Councilman David Grosso, the bill permits medical cannabis to be administered to students in the nurse’s office like other medications.

Prior to this bill passing, D.C. residents, including children registered as medical cannabis patients, could only consume cannabis at home or at a medical cannabis treatment facility, causing undue hardships for many parents and students.   

Councilman David Grosso said when he introduced the bill:

“No student should have to choose between attending school or receiving effective treatment for a medical condition. With the cautious approach, we have often made life harder for those who need treatment. That is the reason for this emergency legislation.” — Councilman David Grosso, in his opening statement

Because cannabis is still illegal federally, and most schools receive support from the federal government, many school districts have been reluctant to allow medical cannabis on school campuses. However, D.C. joins a growing list of jurisdictions around the country who are allowing students to receive their medical cannabis at schools.

The Department of Education has not released a statement addressing this issue. 

 

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Legalization Advocates Call on House to Delay SAFE Vote

9/19/2019

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A cadre of legalization activists have sent a letter to House Speaker Nancy Pelosi (D-California) and Majority Leader Steny Hoyer (D-Maryland) calling on them to postpone a vote on the SAFE Banking Act until broad cannabis legalization – including criminal justice reform – gets a vote on the House floor.

The letter is authored by the American Civil Liberties Union, Center for American Progress, the Drug Policy Alliance, Human Rights Watch, JustLeadershipUSA, and the Leadership Conference on Civil and Human Rights.

The authors note that while they “recognize the challenges facing marijuana businesses that lack access to financial services,” they “believe it is a mistake to move this issue forward while many of the other consequences of marijuana prohibition remain unresolved.”

“The banking bill does not address marijuana reform holistically. Instead, it narrowly addresses the issues of banking and improved access to financial services, measures that would benefit the marijuana industry, not communities who have felt the brunt of prohibition.” – Sept. 17 letter to Reps. Pelosi and Hoyer, via Politico

Earlier this week Hoyer said he was planning on bringing the SAFE Act up for a vote this month; according to Politico, the Majority Leader planned on bringing the bill up for a vote next week.

Before reaching the Senate, Senate Banking Committee Chairman Sen. Mike Crapo (R-Idaho) has indicated he would likely make amendments to the bill but none of the co-sponsors interviewed by Politico knew the specifics of what Crapo wanted to change.

The activists are urging the Democratic House leaders to consider bringing the Marijuana Opportunity Reinvestment and Expungement (MORE) Act up for a vote before considering the banking legislation. The MORE Act is sponsored by Democratic presidential candidate Sen. Kamala Harris (D-California) and counts other presidential candidates Sens. Corey Booker (D-New Jersey), and Sen. Elizabeth Warren (D-Massachusetts) among its co-sponsors. That bill remains in the Senate Finance Committee.

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Startup Announces Line of CBD-Infused Sportswear

9/19/2019

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You’ve seen CBD-infused foods and beverages, dog treats, transdermal patches, toothpaste, and maybe even sunscreen, but have you ever seen CBD-infused clothing — specifically, sportswear? A new CBD-infused activewear line from New York-based Acabada is going all-in on the CBD trend using high-tech transdermal technology.

According to a press release, company leaders were inspired by the many top athletes who have endorsed CBD as part of their training and post-workout ritual.

“While typical CBD products such as tinctures and edibles are growing exponentially in popularity, we began to envision a product that addressed health and wellness through a different lens. By physically infusing CBD into our garments, our product lives at the intersection of fashion, fitness, and wellness.” — Acabada CEO and Co-Founder Seth Baum, in the release

The clothes utilize a process called microencapsulation — which has been used to infuse garments with other ingredients such as aloe vera or antioxidants — wherein microscopic droplets of hemp-derived CBD molecules are infused into high-performance fabrics. The CBD is infused with a protective coating, which supposedly keeps the cannabinoids available over dozens of uses. According to the company, each article of clothing can withstand up to 40 high-intensity wear and wash cycles, after which users can upcycle their garments through the company for a 30% discount on their next Acabada purchase.

Prices break down at $120 for sports bras and tank tops, $160 for leggings, and $250 for jackets and one-piece jumpsuits.

There remain many unknowns, however, such as whether or not the CBD would withstand months to years of sitting in your closet, or if the CBD is activated by heat, friction, or sweat — or all three.

Robert Carson, a Vanderbilt University pediatric neurologist who studies CBD, said the clothes’ delivery method, at least, is well-proven. “My first feeling is this is crazy,” Carson told The Cut. “But, in actually thinking about it, and it kind of pains me to say it, this could be plausible.”

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Nevada Investigates Cannabis Testing Labs After Failed Product Tests

9/19/2019

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The Nevada Department of Taxation on Tuesday issued a health advisory for four cannabis strains sold at four dispensaries for failed yeast and mold tests, while one strain failed for aspergillus, coliforms, and bile tolerant gram-negative bacteria.

The affected batches include strains Gelato #41, Northern Lights Blue Flower, Funky Malawi, and BWID sold at Acres Medical, LLC, D.H. Flamingo, Inc, Naturex II, LLC, and Desert Aire Wellness, LLC.

The strains were cultivated by D.H. Aldebaran Inc., and Natural Caregivers, LLC and was harvested between May and July. There have been no reports of illness related to the products.

Officials told the Las Vegas Review-Journal that there was “no reason to believe that the dispensaries or cultivators had any knowledge that the products exceeded allowable limits.”

The advisory comes as health officials are investigating cannabis being sold in the state that exceeds THC limits and whether THC levels are being doctored to make products appear more potent.

The failed product tests and potential inflation has caused the agency to launch an investigation into cannabis testing laboratories. Department of Taxation spokeswoman Eden Larson told the Journal that the department will investigate “the integrity of cannabis lab testing.”

The health advisory is the second issued by the state in the past month.

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New Mexico Officials Withholding Non-Resident Medical Cannabis ID Cards

9/19/2019

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The New Mexico Department of Health is still refusing to issue medical cannabis patient cards to out-of-state residents as the agency awaits a decision from the judge that ordered the department to begin issuing cards to non-residents, the Albuquerque Journal reports. The ruling stems from an amendment to the medical cannabis law that removed the residency requirement from the definition of “qualified patient.”

District Judge Bryan Biedscheid made the ruling last month; the medical cannabis law reform bill was signed by Gov. Michelle Lujan Grisham earlier this year. State attorneys argued that the change was a drafting error and it was not designed to allow non-residents to obtain medical cannabis cards in New Mexico. The state argues that the changes would encourage cannabis transport across state lines, which is illegal under state and federal law.

Following the ruling, the Health Department did issue ID cards to three individuals who were included in the lawsuit against the state.

Attorney Brian Egolf, who is also the speaker of the state House of Representatives, told the Journal the Health Department has “no legal authority … to ignore the court’s orders and commands and not to comply with the court’s directives.”

Health Department Spokesman David Morgan indicated that the court battle is ongoing, and the judge’s decision is not yet final.

“Due to the pendency of the motions before the District Court, the court’s ruling is not yet final, and as noted, the court’s ruling may be stayed pending an appeal.” – Morgan, to the Journal

The state contends that, if upheld, the number of patients enrolled in the state’s cannabis program could double. As of August, there were 77,141 enrolled patients in the state.

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First U.S. Hemp Strain Patent Awarded for Charlotte’s Web

9/18/2019

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Charlotte’s Web Holdings (CWB) has received what appears to be first-ever U.S. patent for a hemp plant cultivar.

The news was first broken by Leafly on Friday but it appears that the patent was actually awarded on July 2, according to documents from the U.S. Patent and Trademark Office.

Specifically, the documents reveal that the Denver-based Charlotte’s Web Holdings’ CEO Joel Stanley was awarded a patent for “a new and distinct hemp cultivar designated as ‘CW2A.’”

“‘CW2A’ is a selection resulting from controlled-crosses using hemp germplasm from different regions of the United States. The primary goal of the breeding program was to develop a new hemp variety with high cannabidiolic acid (CBDA) concentrations and low tetrahydrocannabinolic acid (THCA) concentrations in its mature female flowers. Of the females tracing back to the original cross, the healthiest and most vigorous individual that showed no monoecious tendencies without stress manipulation was chosen to be ‘CW2A’.” — Excerpt from U.S. Patent and Trademark Office filing documents

The patent puts CWB — which is currently listed on the Canadian Securities Exchange — in the unique position of being one of the world’s most recognizable CBD brands and the first firm to receive an official patent for its low-THC, CBD-rich cannabis cultivar.

In 2017, CWB received a letter from the FDA warning against specific anti-cancer claims found on the company’s website.

 

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Medical cannabis plants housed in grow cages inside of an indoor grow.

Health Canada Suspends CannTrust Cannabis License

9/18/2019

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Health Canada has suspended the license of CannTrust Holdings Inc. more than two months after the agency found the company had grown and sold cannabis in and from unlicensed rooms, built two rooms at one of its facilities without approval, and didn’t maintain documents in a way that allowed it to complete an audit in a timely manner.

The license suspension prevents the company from selling any products and from propagating new lots or batches of cannabis, but it can complete existing lots and perform other tasks related to those lots like drying, trimming, and milling.

Health Canada will reinstate the license if the firm can show they can produce and ship only product cultivated in licensed facilities and control the movement of its products, attempt to recover cannabis grown in the unlicensed greenhouses, show that key personnel understand the law, and improve their record-keeping practices.

“Over the past two months, the Company has moved swiftly to assess and address Health Canada’s concerns, including areas of operational non-compliance. The Company remains committed to being in full regulatory compliance.” – CannTrust, in a Sept. 17 statement

The license suspension is just the latest for the embattled company who was forced to put 12,000 kilograms of cannabis “on hold” in July after Health Canada discovered the unlicensed rooms at the company’s Pelham, Ontario facility. Two days later, Danish company StenoCare quarantined oil derived from the facility.

The following month, the company’s auditor, KPMG, withdrew its financial audits of CannTrust saying they were completed with unreliable information from representatives – namely former Chief Executive Peter Aceto and former President Eric Paul – who were fired after emails were published showing they knew about the illegal grows.

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Former Army Camp Approved as Cannabis Manufacturing Site

9/18/2019

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The Pittsburg, California City Council has approved a plan to allow cannabis manufacturing in an industrial area that was once home to the U.S. Army’s Camp Stoneman, the East Bay Times reports. It will be the first cannabis manufacturing site in Pittsburg and was approved by the council 4-1.

Stoneman Laboratories LLC. will accept raw materials – generally trim, rather than flower – containing both THC and CBD, process, package, and distribute them to approved retailers. Stoneman representative Pat O’Keefe said the business would initially create 20 jobs but could ultimately employee about 100 people.

The site was originally approved for another cannabis business, Canyon Laboratories, but that company opted out before launching; instead, Stoneman Laboratories will take its place but in a slightly changed location.

The company will pay a 5 percent tax in the first $10 million in gross receipts, another 2.5 percent for every additional $10 million to $20 million, 2 percent more for $20 million to $50 million, another 1 percent for up to $100 million, and .5 percent for anything exceeding $100 million.

The council also agreed to extend the buffer zone between dispensaries and “sensitive areas,” such as city parks, libraries, and schools, from 600 feet to 1,000 feet. Currently, dispensaries are not allowed in the city and there are just four licensed distributors in all of Costa County, all of which are in Richmond, according to ABC7.

Stoneman Laboratories still needs approval from the state, but it could be up and running by next summer.

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Salt Lake City, Utah

Utah Lawmakers Scrap Plan for Health Dept. to Dispense Medical Cannabis

9/18/2019

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Utah lawmakers have scrapped plans to dispense cannabis out of county health departments and, instead, approved a plan to allow 14 privately-run dispensaries, Fox13 reports. The plan, which was approved by lawmakers amending the voter-approved medical cannabis ballot measure, came under fire by county attorneys who said dispensing at health departments would turn state employees into drug dealers who could face federal charges for their role in the system.

Last month, Jennifer Moughalian, the acting assistant secretary for financial resources at the U.S. Department of Health and Human Services sent a letter to Gov. Gary Herbert (R) approving the legislature’s plan and assuring him that the plan would “not affect the State’s eligibility to apply for HHS grants nor will it affect the outcome of the State’s application.” Despite the assurance, state lawmakers made the changes, which puts the state’s medical cannabis law more in line with what was approved by voters last year.

The legislature-approved replacement law is still being fought in court by activists who led the ballot initiative; in August a judge ruled against activist group the People’s Right, who claimed that the legislature ran afoul of the state constitution by replacing the measure. The case brought by the Epilepsy Association of Utah, and Together for Responsible Use and Cannabis Education (TRUCE) claims that the legislature’s version of the program will stymie patient access – that case is still working its way through the courts.

Christine Stenquist, founder of TRUCE, said that while the recent changes move the bill more in line with what voters approved, it’s not happening fast enough.

“Because we are dealing with patients, with a fragile population, and we don’t have time for political games and that’s what we’re dealing with, is political pandering to the powers in the state.” – Stenquist, to Fox13

The legislature’s bill was a compromise between supporters – like the Utah Patients Coalition and Libertas Institute – and opponents like the Utah Medical Association and The Church of Jesus Christ of Latter-day Saints.

The vote to reform the dispensing changes were approved by the legislature unanimously during a special session.

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USDA Submits Draft Hemp Rules to White House

9/17/2019

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The U.S. Department of Agriculture has submitted its hemp regulations to the White House Office of Management and Budget for approval, according to a UPI report. The rules are expected to designate hemp as a commodity crop and allow tribal councils and U.S. territories to cultivate hemp crops.

Geoff Whaling, chair of the Washington, D.C.-based National Hemp Association, told UPI that he expects the rules will be released “in a matter of weeks.”

The OMB has scheduled meetings to hear public comments on the proposed regulations. Following the removal of hemp from the federal drug schedule last year, several state legislatures passed hemp legalization legislation that included state regulations for the crop; however, the USDA must approve those plans before they can be permanently enacted — these regulations are the first step toward the approval of those state plans.

Last month, the USDA Risk Management Agency announced that hemp qualifies for federal crop insurance as long as farmers are compliant with state and federal regulations. In May, the agency issued its first organic certification for a hemp flower product; although the agency had certified other hemp products in the past, such as Food and Drug Administration-approved food products. In April, the USDA released guidance for importing hemp seeds, which previously required Drug Enforcement Administration approval.

The agency had up to one year to finalize the regulations following the bill’s passage in December. The USDA initially predicted the rules would be in place by August.

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Amazon Pulls Products Used for Counterfeit Vape Carts

9/17/2019

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Online retailer Amazon has pulled products that could be used to make counterfeit cannabis products, including packaging connected to products used by people in New York who fell ill with a vape-linked pulmonary disease, according to an MPR News report.

Packaging for Chronic Carts and Dank Vape has been removed from the Amazon website – vape cartridges sold illegally in New York were purchased in those companies’ packaging and contained Vitamin E acetate, which the state Health Department linked to cases of the illness. Amazon also pulled counterfeit packages for Exotic Carts and “Cali Plug Carts,” along with fake “California Compliant” stickers.

The company did not remove empty cartridges.

“We require all sellers to follow our selling guidelines and have dedicated teams that use sophisticated tools, including machine learning, to keep prohibited products out of our store. We take action on those who violate our policies, including removal of selling privileges and withholding of funds.” – Amazon, in a statement to MPR News.

So far, six people have died from the vape-linked disease and those who have fallen ill have used both cannabis- and nicotine-filled cartridges. Last week, the Centers for Disease Control and Prevention said that 60 percent of the patients affected by the illness used both THC and nicotine vape devices, while 20 percent only used nicotine. Officials were not ready to definitively link the illness to cannabis cartridges.

The CDC – and Leafly – is recommending people stop using vaping devices entirely until the cause can be determined.

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New Study Shows Crime Reduction Near Colorado Dispensaries

9/17/2019

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A new study published in The Journal of Regional Science and Urban Economics shows a substantial reduction in crime rates near cannabis dispensaries in Colorado. The study uses data collected in Denver, Colorado between 2013 and 2016 and the results mirror those of other, similar studies that have been conducted in the past.

“The results imply that an additional dispensary in a neighborhood leads to a reduction of 17 crimes per month per 10,000 residents, which corresponds to roughly a 19 percent decline relative to the average crime rate over the sample period.” — Excerpt from the study’s abstract

The researchers point out the reduction in crime is highly localized and goes counter to the overall crime rate in Denver, which increased by 1.7% between 2013 and 2014. They found the majority of the decrease in crime was for mostly nonviolent offenses, with a 2.3% decrease in drug offense per ten thousand residents.  

“Our results are consistent with theories that predict that marijuana legalization will displace illicit criminal organizations and decrease crime through changes in security behaviors or substitution toward more harmful substances,” the study authors wrote.

Over the years since adult-use cannabis was first legalized in Colorado and then Washington, multiple studies have suggested that legalization — and the subsequent proliferation of legal cannabis shops — does not cause an overall uptick in crime rates, which is a prohibitionist claim often made by those who oppose legalization.

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Springfield, Massachusetts City Council to Investigate Cannabis Company’s Donation

9/17/2019

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The Springfield, Massachusetts City Council are investigating why a cannabis business is planning to spend $200,000 over a five-year period on a school environmental program and park in the city, hoping to determine whether the company made a deal with the mayor’s office in exchange for an operator’s license, according to a WGBH report.

The inquiry comes less than two weeks after Fall River Mayor Jasiel Correia was arrested for attempting to extort at least four cannabusinesses for $250,000 each in exchange for “non-opposition letters” to operate in the city. Correia is alleged to have generated about $600,000 in the scheme.

Springfield City Council President Justin Hurst said the council was doing its “due diligence” to make sure the local government is “transparent.”

“Springfield residents want to believe their government is doing the right thing, and that the government is not doing the wrong thing just to get a few extra dollars.” – Hurst, to WGBH

Mark Zatyrka, CEO for the cannabis company, I.N.S.A, told WGBH that the donations were “strictly voluntary” and the company is “happy to provide as much back to the community” as they can.

Melinda Phelps, an attorney for I.N.S.A., said three of the four owners of the company participated in the Environmental Center for Our Schools program – to which the company plans to give $20,000 per year for five years. The company promised another $20,000 per year over five years to renovate the city’s Forest Park, which is adjacent to the site of the company’s proposed dispensary. I.N.S.A. already operates a dispensary in the city and none of the other three companies seeking a host agreement are offering any similar donations.

Hurst said that some citizens “might feel as though [the] money could be better spent.”

In their agreement with Easthampton, I.N.S.A paid the city $10,000 – which exceeds the 3 percent cap – with no justification.

Peter Bernard, executive director of the Massachusetts Growers Advocacy Council, said that the donations sometimes turn big companies against smaller ones in a “bidding war.”

“But it shouldn’t be a bidding war, it’s a licensing process,” he said in the report. “[Municipalities] are not supposed to be looking for the highest bidder.”

The city council will vote this week on whether to approve the agreement or send it back to the committee.

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Plus Products Offers Hemp CBD Edibles Nationwide In Partnership with John Legend, Casper

9/17/2019

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San Mateo, CA – September 17, 2019 – Plus Products Inc. (CSE: PLUS) (OTCQX: PLPRF) (the “Company” or “PLUS”), the company behind the #1 & #2 best-selling THC edibles in California1, today announced the nationwide launch of its first-ever 100% hemp CBD product line.

John Legend Partnership

The launch is being supported by a newly established brand partnership between PLUS and American superstar and philanthropist John Legend, who will advocate on behalf of the Company’s new nationwide hemp CBD product offering.

“I have been a believer in the benefits of CBD for some time,” stated Legend. “I was drawn to the PLUS team because they’re an innovative, family-run company, and they use science to deliver a consistent, high-quality product. I appreciate that they’re committed to setting a high standard within an industry that has to date been fairly unregulated.”

Casper Partnership

PLUS is also partnering with global sleep company Casper Sleep Inc. (“Casper”) to introduce its melatonin- and CBD-infused SLEEP product. Casper is the award-winning sleep company on a mission to bring better sleep to more people around the world.

“We’re always exploring new ways to improve sleep across the entire sleep arc — from sunset to sunrise,” said Neil Parikh, co-founder and chief strategy officer at Casper. “Like PLUS, we believe sleep is a key part of the wellness equation. Partnering with their team of experts to introduce CBD sleep gummies brings a new way to relax and rest to those who need it.”

Product Offering & New Nationwide E-Commerce Platform

The new CBD line will include three distinct products, developed by PLUS’s team of scientists, entrepreneurs and chefs: BALANCE in Blueberry flavor, UPLIFT in Grapefruit flavor, and SLEEP in Blackberry Tea flavor. All three products are available for purchase through the Company’s newly launched e-commerce platform at www.plusproducts.com.

“We established our reputation in edibles by offering customers a consistent and precisely-dosed gummy using high-quality extracts,” stated Jake Heimark, CEO and co-founder of PLUS. “Our CBD line will build off that expertise, and the earned trust we’ve established, while offering a new experience for consumers designed to help them find their just right.”

“Giving the world a simple way to achieve balance has always been our mission, and the PLUS CBD line allows us to expand from California to nearly all fifty states overnight. We are thrilled that John Legend and Casper have partnered with our team to support this exciting new initiative.”

(1) Over the last twelve months by dollars of retail sales according to BDS Analytics GreenEdgetm Platform.

Availability
PLUS 100% Hemp CBD infused Edibles with no THC are available for purchase at plusproducts.com

About PLUS
PLUS Products is a California-based edibles company focused on using nature to bring balance to consumers’ lives. PLUS is headquartered in San Mateo, CA with 80 employees.

The CSE does not accept responsibility for the adequacy or accuracy of this release.

For further information contact:
Jake Heimark
CEO & Co-founder
ir@plusproducts.com

Investors:
Blake Brennan
Head of Investor Relations
Tel +1 213.282.6987
ir@plusproducts.com

Media:
Bill Harrison
Third Street Media Group
Tel +1 323.651.3200  or 1 213.712.8811
bill@thirdstreetmediagroup.com

Forward-Looking Statements:
This press release includes statements containing certain “forward-looking information” within the meaning of applicable securities law (each, a “forward-looking statement”). Forward-looking statements are frequently characterized by words such as “plan”, “continue”, “expect”, “project”, “intend”, “believe”, “anticipate”, “estimate”, “may”, “will”, “potential”, “proposed” and other similar words, or statements that certain events or conditions “may” or “will” occur.

These forward-looking statements are only predictions. Various assumptions were used in drawing the conclusions or making the projections contained in the forward-looking statements throughout this press release. Forward-looking statements are based on the opinions and estimates of management at the date the statements are made and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking statements. These risks include, but are not limited to, the success of the Company’s investments, the ability to retain key personnel, the ability to continue investing in infrastructure to support growth, the ability to obtain financing on acceptable terms, the continued quality of the Company’s products, customer experience and retention, the continued development of adult-use sales channels, managements estimation of consumer demand in in jurisdictions where the Company exports, expectations of future results and expenses, the availability of additional capital to complete capital projects and facilities improvements, the ability to expand and maintain distribution capabilities, the impact of competition, the ability of the Company to implement initiatives and the possibility for changes in laws, rules, and regulations in the industry. The Company is under no obligation, and expressly disclaims any intention or obligation, to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as expressly required by applicable law. 

 

 

 

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