Los Angeles, California Cracks Down on Unlicensed Cannabis Operators; 160 Arrested

5/31/2018

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A crackdown on unlicensed commercial cannabis locations in Los Angeles, California yesterday resulted in 160 arrests and 36 criminal cases against 142 people, according to a KTLA report. Los Angeles Police Department Officer Stacy Spell said, since January, the department has served 54 search warrants on illegal shops, seizing more than 6,200 pounds of cannabis and 29 guns. Wednesday’s operation netted more than $300,000.

Under Prop. 64, the violations are misdemeanors. Those convicted face up to six months in jail and $1,000 in fines per violation. City Attorney Mike Feuer told KTLA that he believed every day they were operating would count as a violation.

“If you’re operating an illegal cannabis shop selling medical marijuana then you’re going to be subject to criminal prosecution.” – Feuer to KTLA

In April, the California Bureau of Cannabis Control sent more than 1,000 cease-and-desist letters to unlicensed operators. Regulators have used advertising platforms, such as Weedmaps, to find illegal shops. Weedmaps has argued that many of the unlicensed businesses advertising with the platform are protected under the state law until January because they are cannabis cooperatives and the state’s old medical cannabis laws allow such non-profits to operate until the new law’s sunset clause takes effect.

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Montana Hemp Farmer Wins Contract to Use Fed-Controlled Water for Irrigation

5/31/2018

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A Montana hemp farmer has secured a contract to use federally-controlled water to irrigate her plants, the Associated Press reports. Kim Phillips had battled the Helena Valley Irrigation District and the U.S. Bureau of Reclamation for more than a year to use water from the Canyon Ferry Reservoir to water her 12-acre hemp crop.

“It really is an extraordinary day for hemp and the hemp industry. It shouldn’t take this long to get water for your hemp, it just shouldn’t.” – Phillips to the AP

Phillips’ crop is legal under the state’s Industrial Hemp Pilot Program but the Bureau of Reclamation bans the use of water from federally-controlled reservoirs on controlled substances, including hemp – despite the fact that the 2014 Farm Bill allows states to implement industrial hemp research programs. Steve Davies, area manager for the Bureau of Reclamation, said the agency is “satisfied with the decision.”

“It’s important that we took the time and got the decision right. We had to make sure that the program she is operating under fits the exemption in the federal Farm Bill. Going forward, we will continue to evaluate these on a case-by-case basis.” – Davies to the AP

Last year, federal lawmakers blocked a proposed budget amendment explicitly allowing hemp cultivators use of federally-controlled water. That amendment, the Industrial Hemp Water Rights Act, was approved by the Senate Appropriations Committee but was removed from the final version of the budget bill.

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names for weed

Michigan Extends Deadline for Unlicensed Canna-businesses to Remain Operational

5/31/2018

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The Michigan Department of Licensing and Regulatory Affairs is allowing unlicensed medical cannabis dispensaries to remain open until Sept. 15 without risking future licensing eligibility. Operators had faced a June 15 deadline; however, regulators have been slow in issuing licenses under the new regime approved by lawmakers in 2016.

According to LARA, the extension allows the Medical Marihuana Licensing Board “enough time to investigate and authorize facility operator licenses in order to make sure that access to medical marihuana is maintained.”

“Extending the deadline to September 15th will make sure that this law is implemented correctly and assure that potential licensees are thoroughly reviewed. It is important that we ensure that medical marihuana patients have continued access to their medicine.” – LARA Director Shelly Edgerton, in a press release

Potential operators were required to turn in their state application by Feb 15. The licensing board said they had received more than 500 applications by the deadline and 141 of those were complete, while 411 still required municipality approval. In March, LARA sent more than 200 cease-and-desist letters to medical cannabis operators – 159 of them to businesses in Detroit.

The extension was included in emergency rules for the medical cannabis program approved by Gov. Rick Snyder yesterday. Those rules will remain in effect for six months.

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Canadian Licensed Producer INDIVA Ltd. Seeks An Edge with Cannabis Edibles

5/31/2018

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Ontario-based licensed cannabis producer INDIVA Ltd. has been busy preparing for recreational cannabis legalization in Canada later this year.  INDIVA Ltd. is a small to mid-cap licensed cannabis producer with production and processing facilities in London, Ontario. The company is publicly traded on the TSXv under the symbol NDVA.

INDIVA Ltd. believes in providing clients with high-quality products and customer service.  The company has invested heavily in refining production methods to develop a resource efficient process that delivers repeatability and a standardized product.  INDIVA Ltd. is also focused on conducting business in an environmentally and financially sustainable manner. From state-of-the-art production facilities, to the growing list of valuable partnerships and licensing agreements which are an integral part of a business framework designed to provide INDIVA Ltd. with multiple avenues to profit.

The INDIVA Ltd. advantage

A big problem with many smaller licensed producers in the cannabis sector is that they are in a state of “pre-production” and “pre-sale,” meaning that once legalization occurs, they may be left scrambling for ways to turn their investment into profits.  Many cannabis licensed producers are also neglecting to diversify or find a market niche they can compete in, which may mean that they can be easily overwhelmed by larger companies as they attempt to enter the market.

INDIVA Ltd. has been watching the developing cannabis sector closely, so instead of expanding rapidly in an effort to become one of the industry’s “big players,” they have focused on creating an effective, sustainable business.

INDIVA Ltd. owns its means of production at its 40,000 sq ft. facilities and is completing the expansion to full capacity in 2018. INDIVA’s Master Grower, Pete Young, is already providing cannabis products to over one thousand medical patients through a compassion program.  The company knows how to grow, how to package, and how to deliver. All that’s missing is for recreational cannabis to be legalized in the country so that full production can get underway.

“We focus our efforts on making sure that we are sustainable as a company, and are always able to stand on our own.  This has driven us to control all aspects of our business, from production, to branding and sales. We are cannabis producers, and that means flowers, but we’ve also been working hard to establish ourselves in some often-overlooked markets (such as edibles), to ensure we have the necessary revenue sources to achieve profits.  I think this approach makes us unique and gives us the opportunity to grow and become massively successful.” — Niel Marotta, CEO of INDIVA Ltd.

Recently, INDIVA Ltd. has made two important agreements, helping solidify access to revenue streams that are susceptible to rapid growth. First, a 15% stake in DeepCell Industries was acquired, then days later, a 50/50 joint venture with edibles licensor Bhang Corporation appeared in the news. INDIVA Ltd. is establishing itself in the edibles and derivative product market, and gaining several competitive advantages over many of its competitors.

The DeepCell Industries license gives INDIVA Ltd. exclusive rights to manufacture, market and sell the complete line of DeepCell products in Canada.  This includes the company’s innovative cannabis infused “Ruby™” sugar products and DeepCell’s patented Crystal Fusion™ technology.  This technology is unique in that it mechanically fuses cannabinoids, instead of using additives for chemical fusion. The process of chemical fusion is a main reason that cannabis edibles always taste like cannabis, and has been a major hurdle in creating edibles for the mass consumer market.  With Crystal Fusion™ and Ruby™ sugars, there is a huge variety of possible product applications. Everything from coffee or tea, to pancake mixes to energy drinks can become viable cannabis infused consumer products. Even salt can become a “flexible edible”, infused with cannabinoids. This technology is going to be a gamechanger for cannabis edibles.

The Bhang Corporation joint venture is similarly innovative and important.  INDIVA Ltd. has invested $1 million USD to purchase a 4.9% equity interest in Bhang Corp. on a fully diluted basis.   The joint venture gives INDIVA Ltd. exclusive Canadian rights of sale and manufacture, as well as rights to export the branded products internationally.  Created by a master chocolatier, Bhang licences cannabis edibles such as chocolate bars, mouth sprays, gums and vapes, as well as distillates and beverages in the United States.

With these two agreements in place, INDIVA Ltd. is establishing itself as a front runner in the cannabis edibles market.  INDIVA Ltd. has the tools to create and sell a superior cannabis edible product, and this is a very important thing to pay attention too.  Cannabis edibles offer a separate market for cannabis producers, especially when considering that edibles are the future for a large portion of cannabis users who do not “smoke” their cannabis.  This includes those looking for THC or CBD in pill form, or those who wish to remain discreet about their cannabis use.

A recent report published by Arcview Market Research and BDS Analytics, has placed a $57 billion USD valuation on global consumer cannabis spending.  Cannabis edibles will make up a large portion, if not the majority of that valuation, something INDIVA Ltd. plans to take full advantage of.

For now, the legalization of edibles is on hold due to regulations and the government focusing on rolling out recreational legalization first.  However, once the government understands and figures out how to regulate a cannabis edibles market, the race will be on to join in.

 

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The Sprinkles of Cannabis Offers Consumers a New Kind of Edible: Cupcakes

5/30/2018

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DENVER, CO, May. 23, 2018 — Cannabis cupcake company Jade & Jane broadens consumer’s choices in the edibles market with the recent introduction of single serving, recreational, 10mg THC-infused cupcakes. Jade & Jane’s products are available to retail customers through licensed Colorado recreational dispensaries. Wholesale dispensary customers may contact Jade & Jane to place orders. Ordering through LeafLink is coming soon.

Started in 2016, Jade & Jane offers cannasseurs a delicious, handmade alternative to typical, “herbal tasting” edibles. Attractive visual appeal makes Jade & Jane products highly desirable. “We want consumers to feel excited when opening our cupcakes for an anniversary, birthday, or treat,” said Jade & Jane CEO Stephanie Silva.

“Our products are genuinely unique in the Colorado cannabis industry. Jade and Jane cupcakes provide a high quality, reliable, and steady experience because they contain tasteless THC powder. To begin we’re offering traditional flavors like chocolate and vanilla bean, but more interesting options are coming soon. Cupcake edibles offer convenient cannabis consumption with familiarity and nostalgia. It’s my hope we can help remove the stigma from cannabis use by offering the first mainstream edible that’s as American as apple pie and as classic as a hostess cupcake,” said Mrs. Silva.

Jade & Jane plans to release a 90mg recreational cupcake multi-serving product in the near future. Notably, Jade & Jane’s cupcakes are allergen friendly and vegan/dairy free. Additionally, their packaging is child resistant and C.F.R. Title 16, Part 1700.15 & 1700.20 compliant. In an event on May 30th, 8 AM EST Jade & Jane will be doing a Reddit AMA on r/GlitterBongs.

About Jade & Jane: Jade & Jane is a female owned, licensed Denver, Colorado MIP (Marijuana Infused Products) manufacturer of recreational cannabis-infused cupcakes. Learn more at jadeandjane.com or call (720) 441-3209. Email Questions@JadeandJane.com, or follow Jade & Jane on Instagram, Facebook, Twitter, Pinterest, and LinkedIn.

If you would like more information please contact Stephanie Silva at (720) 441-3209 or email Questions@JadeandJane.com.

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California Lawmakers Kill Cannabis Bills as Session Winds Down; 7 Remain

5/30/2018

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Editor’s update: A previous version of this article indicated incorrectly that the delivery-focused bill outlined below had already been rejected by lawmakers. At the time of this update (12:05 pm PST), the bill is currently on the California Senate floor.

Several cannabis-related bills have failed in California just days before the deadline for them to pass the chamber in which they were introduced, East Bay Express reports. One would have cut the excise tax on retail cannabis sales and suspended the cultivation tax; another would have given medical cannabis patients the same rights as those prescribed opioids.

A third bill, currently on the Senate floor, would prohibit municipalities from banning delivery services.

The tax-reduction bill would have reduced retail excise rates from 15 percent to 11 percent and suspended the cultivation tax until June 1, 2021. The excise tax, paired with state sales taxes and local taxes, push total taxes in some localities to as much as 40 percent at the point-of-sale. Amy Jenkins, a lobbyist for the California Cannabis Industry Association, said “killing that bill is a big win for the black market.”

The medical cannabis patients’ rights bill would have allowed the population the same “reasonable accommodation” as other prescription medication takers under the Fair Employment and Housing Act. The measure was opposed by the Chamber of Commerce and Department of Justice.

The bill to prevent towns and cities from banning cannabis deliveries is opposed by two powerful lobbies. The League of California Cities and California State Association of Counties oppose the measure because it would prevent municipalities from self-direction. More than two-thirds of California counties have banned cannabis commerce, including deliveries.

Several other bills can still be considered by the Legislature, including measures allowing cannabis events at any venue in any city that allows them; cannabis farmers markets; the creation of an equity program; an expungement bill; allowing children to take their cannabis medications at school; the creation of a state-run cannabis bank; and allowing laboratories to test home-grown products.

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Federal Alcohol Regulators: No CBD in Beer

5/30/2018

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The Alcohol and Tobacco Tax and Trade Bureau has made it official: the agency will not approve any alcohol formulations containing CBD or THC. The announcement coincides with a report last week that the agency ordered a California brewery to cease production of its CBD infused brews.

But isn’t CBD legal in all 50 states? No, it’s not.

“The Controlled Substances Act (CSA) … defines marijuana as all parts of the Cannabis sativa L. plant (and its derivatives) with certain specific exclusions. Substances (such as tetrahydrocannabinols [THC], cannabidiols [CBD], or terpenes) that are derived from any part of the cannabis plant that is not excluded from the CSA definition of marijuana are controlled substances, regardless of whether such substances are lawful under State law.” – May 25 TTB directive

Yes, this is due to the Drug Enforcement Agency’s move last year to classify CBD as a Schedule I substance. Earlier this month, a court upheld the DEA reclassification – which was initially thought to be a tracking mechanism, rather than a reclassification of CBD; although, the DEA has long maintained that they have always classified CBD as “marijuana.”

The TTB directive indicates that some industrial hemp products can be added to alcoholic beverages. This includes hemp seed oil, sterilized hemp seeds, and non-resinous, mature hemp stalks, which are not considered “marijuana” under the CSA.  

Massachusetts regulators already blocked a brewery from adding CBD to a beer saying it would be a violation of Food and Drug Administration Rules. Brewers in other cannabis-legal states, such as Vermont and Colorado, have unveiled CBD-infused beer.

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Oklahoma State University Not Participating in Inaugural Hemp Pilot Program

5/30/2018

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Oklahoma State University, the state’s largest agricultural college, will not participate in the inaugural hemp pilot program because the law was passed too late in the year for school officials to develop a plan for the program, News9 reports. The bill was signed into law in late April and required 30-day notice in an application for universities to participate which, according to OSU Plant and Soil Sciences Director Dr. Jeff Edwards, didn’t provide enough time to get seed into the ground.

Edwards said the university plans to participate in the program next year and officials would spend the next six months deciding which aspects of the crop they would research.

“Do we need to devote our time to end markets, end uses, the agronomic production, all of the above? And we also need to look for funding opportunities as well.” – Edwards to News9

The university is currently accepting applications from potential subcontractors for the 2019 program. According to the form, the school is seeking research collaborators, cultivators, harvesters, processors, research dollars, and industrial partners.

So far, Pawnee Nation College and Langton University have confirmed that they will participate in the program this year. Pawnee Nation College is working with Oklahoma-based CBD producer Can-Tek Labs to transport its strains from Colorado.

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Indoor cannabis plants that belong to a medical cannabis patient in California.

Canopy Growth Acquires Lesotho MMJ Firm

5/30/2018

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Canadian medical cannabis firm Canopy Growth has acquired Kingdom of Lesotho-based Daddy Cann Lesotho PTY Ltd, trading as Highlands, which holds licenses to cultivate, manufacture, supply, hold, import, export, and transport cannabis and its resin in the African nation. The $29 million acquisition gives Canopy its first foothold in Africa. Canopy now has operations on five continents.

“Lesotho is Canopy Growth’s first step into Africa and we look forward to working with the strong local team at Highlands to establish production and distribution capabilities consistent with Canopy’s global standard for high-quality, regulated medical cannabis products.” — Canopy Growth President Mark Zekulin in a press release

Members of Highland’s management team will remain with Canopy Growth.

“We’re excited to join the Canopy Growth family and bring together our strong entrepreneurial experience and local knowledge in the region with Canopy Growth’s track record and quality standards in the global medical cannabis industry. Lesotho and Southern Africa have enormous potential and we look forward to building a responsible medical cannabis business across the region.” – Highlands Founder Jody Aufrichtig in a statement

Canopy now operates in North and South America, Europe, Oceania, and Africa. Last week, Canopy Growth began trading on the New York Stock Exchange under the “CGC” symbol.

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A homegrown, backyard cannabis plant a few weeks before harvest.

Florida Judge Rules MMJ Smoking Ban Unconstitutional; Stay Ordered as State Appeals

5/29/2018

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A Florida judge has ruled the state’s ban on smoking medical cannabis unconstitutional, calling the Legislature-approved ban “invalid and unenforceable.”

“Qualifying patients have the right to use the form of medical marijuana for [the] treatment of their debilitating medical condition as recommended by their certified physicians, including the use of smokable marijuana in private places.” – Leon County Circuit Court Judge Karen Gievers in the May 25 ruling

However patients will not be able to access smokable products immediately as the state Department of Health has appealed the ruling which imposes an automatic stay, the Associated Press reports.

The lawsuit was filed by attorney John Morgan who was also a key financial backer in the Amendment 2 campaign, which expanded the state’s limited medical cannabis program and added it to the state constitution. The Legislature was responsible for creating rules and implementing the regime.

This is the second blow to the Legislature-approved limits placed on the program in as many months. Last month, Gievers ruled that Count Joe Redner, a stage 4 lung cancer survivor and medical cannabis patient, could legally grow his own cannabis “solely for the purpose of his emulsifying the biomass he needs for the juicing protocol recommended by his physician.” The Legislature had banned patients from growing their own cannabis plants. That decision was also appealed by the Health Department and a stay ordered.   

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NCAA Won’t Allow Player to Use Low-THC Oil to Treat Seizures

5/29/2018

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A high school football player from Georgia has been barred from playing NCAA football due to his use of CBD oil to treat his seizures, according to a WGXA report. C.J. Harris, a senior at Warner Robins High School, received a preferred walk-on offer from Auburn University – his “dream school” – but the offer was later rescinded due to his CBD use.

He wouldn’t be able to pass a drug test because of his CBD oil use. The oil, which is legal to possess and use for medical purposes including seizures in Georgia, contains 0.3 percent THC; NCAA athletes are not allowed to have any THC in their systems.

His father Curtis said telling his son he couldn’t play college football was the hardest thing he’s had to do.

“You’re taking something away from a kid who’s worked so hard in his life to get there. And you’re just taking it away because he’s taking a medication that’s helping with his disability.” – Curtis Harris to WGXA

Harris is considering playing collegiate football at a lower level. He’s also considering replacing the cannabis oil – the only medicine that has stopped his seizures – with another medicine that would allow him to pass the NCAA drug test.

Update (5/29, 10:55 a.m.):

In a follow-up interview, an unnamed individual said to be familiar with this event told SEC Country that Harris was actually deemed ineligible due to his epilepsy diagnosis and the risk of having a seizure during a high-contact sport — not because of his use of low-THC, CBD-rich cannabis oils.

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MedMen Heads to Canadian Securities Exchange

5/29/2018

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MedMen, a U.S.-based medical cannabis company, is set to begin trading on the Canadian Securities Exchange today after acquiring Ladera Ventures Corp., an oil and gas shell company, the Financial Post reports. The company completed a $143 million raise before heading to the exchange and has an implied value of $2 billion, according to the report.

“The Canadian Securities Exchange … gives us the fastest access to liquid capital that we can get at this point. We’re already in three states and we have a lot of projects that are in the pipeline. Our ability to raise capital fast is what will also allow us to grow and build faster,” — Daniel Yi, MedMen senior vice-president of corporate communications, to the Post

In March, MedMen announced a joint venture with Canadian medical cannabis producer Cronos Group Inc. That venture, called MedMen Canada Inc. intends to bring MedMen-branded dispensaries to provinces where private retailers will be permitted under recreational cannabis regulations, such as Alberta and British Columbia. Currently, the company boasts 12 medical cannabis dispensaries throughout the U.S. in New York, Nevada, and California.

The financing round was led by Cormark Securities Inc. and Canaccord Genuity Corp. It saw MedMen shares sell for $5.25.

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Canopy Growth Reaches New York Stock Exchange

5/25/2018

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Canadian medical cannabis company Canopy Growth began trading on the New York Stock Exchange under the “CGC” symbol yesterday, but after opening as high as $32.00 in pre-market trading, shares dropped 6.66 percent to $28.20 by the market’s close.

It’s the first cannabis company to list on the NYSE and Midas Letter notes that their first day on the American exchange was similar to that of Canadian producer Cronos Group, who was listed on the Nasdaq in February – the first cannabis company to reach American markets. Cronos ended its first day down 1.80 percent after trading as high as $8.38 a share – 10.99 percent above its open. Both companies are also publicly traded in Canada.

Canopy CEO Bruce Linton said he planned on listing on the Nasdaq but pulled back to finalize the Constellation Brands deal. He added that listing on the NYSE instead of the Nasdaq adds more credibility to the company.

“Five years ago, as a small Smiths Falls based start-up in the cannabis sector, we could have never imagined this historic moment. I am exceptionally proud of our team for what they have built and what we will continue to build by continuing our focus on research, product innovation, and intellectual property to drive the industry forward around the world.” – Linton in a press release

Canopy Growth has signed deals with Quebec and Manitoba to supply the provinces with recreational cannabis.

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Arizona Supreme Court Tosses Law Criminalizing MMJ Possession on College Campuses

5/25/2018

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The Arizona Supreme Court has ruled that the state cannot criminally charge public college students for possessing and using cannabis on campus if they have a medical cannabis card, according to an AZCentral report. The court ruled that the 2012 Legislature-approved law violated the state constitution’s protections for voter-approved laws.

The court also tossed the conviction of the plaintiff. Andre Maestas was arrested in 2014 for obstructing traffic after he was found sitting in an intersection. During a search of his wallet, police found his medical cannabis card and Maestas admitted to having a small amount of cannabis in his dorm room. The police search yielded 0.4 grams – far less than the 2.5 ounces medical cannabis cardholders are allowed by law to possess.

The voter-approved 2010 medical cannabis law included language that barred medical cannabis use and possession from Pre-K through high school, and on school buses, but it did not include college campuses.

Colleges have their own rules and most of them, even in legal states, ban cannabis use and possession. The high court ruling effectively expunges the 2012 Legislature-passed law but does not shield medical cannabis patients – or adults 21-and-older in states with recreational-use laws – from disciplinary actions by a college for violating their rules.

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State Regulators, Canna Operators and Testing Experts Gather to Evaluate the Cannabis Industry at the Canna West Summit

5/24/2018

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After three successful Cannabis Compliance Summits on the east and west coasts, Infocast is proud to announce the return of the Canna West: Compliance, Testing & Product Safety Summit, taking place June 5-7, 2018 in Redondo Beach, CA. The Summit will bring regulators, policymakers and testing experts together with cannabis operators to share industry best practices.

Estimates suggest that the combined medical and adult-use market may be worth $5 billion by 2019 in California alone, while the forecasts for national and global canna markets are revised, upward, on a daily basis. To take advantage of these new opportunities, industry players must learn how to navigate through the evolving regulatory framework. The Summit will provide attendees with the opportunity to hear from regulators and learn best practices from their peers and industry experts.

Critical topics to be discussed revolve around navigating local, county, state and national regulations for all steps in the cannabis chain – from growing to extraction, infused products to retail, track & trace implementation to contaminant thresholds,  packaging, labelling, and so much more, all just in advance of California’s mandatory July 1 testing launch. State regulators and health officials will be sharing notes and driving operators toward uniform testing, labeling, operational standards, protocols and best practices.

High profile brands and growers participating at the Canna West Compliance Summit include MedMen, OutCo, Meadow, Big Moon Sky, Bud and Bloom, Chemistry, Constance Therapeutics, Berkeley Patients Group, Love’s Oven, LLC, and many more.

Additionally, Alexis Podesta, Secretary, California Business Consumer Services and Housing Agency, Reginald Byron Jones-Sawyer, Sr. of the California State Assembly, Alice Mead of GW Pharmaceuticals and Lindsay Robinson of the California Cannabis Industry Association are the featured keynote speakers.

“A most informative conference with lots of serious, important information for an emerging industry. The panelists were extremely prepared, articulate and transparent.” – Senator Eleanor Sobel, Consultant, ELEANOR SOBEL CONSULTANTS

To register or learn more information regarding the agenda, speakers, and sessions: visit http://infocastinc.com/event/cannabis-compliance-west/ or contact Infocast at 818-888-4444.

About Infocast:

For over 30 years, Infocast has produced the highest quality events, tailored to the needs of the industries we serve. We intensively research the marketplace, pulling from an extensive network of experts to give you the information and connections to succeed.

 

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7-Eleven Denies They Have Any Partnership with CBD Company

5/24/2018

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Convenience store chain 7-Eleven has rebuked the news that they will sell CBD products by the end of the year, calling Tuesday’s announcement false, Huffington Post reports. Denver, Colorado-based CBD company Phoenix Tears made the announcement in a press release earlier this week – and while it notes that the company’s agreement was made with MarketHub Retail Services, which according to the release works with 7-Eleven franchises, 7-Eleven Director of Communications Stephanie Shaw said she had no knowledge of the deal.

“We have made no agreement or partnership with this company and do not know why they said that.” — Shaw to Huffington Post

The Phoenix Tears press release stated that the partnership would see CBD products in 7-Eleven stores in Nevada, Colorado, Massachusetts, Illinois, Maryland, Florida, California and Washington, D.C. by year’s end. 

Suzanna Mattaboni, a spokeswoman for Phoenix Tears from the public relations firm Parallel Communications, Inc., told Huffington Post that the press release may have misstated some of the details and she was trying “to get to the bottom” of the issue. The release includes a statement from the president of MarketHub Retail Services and founder of Phoenix Tears but does not include a statement from any 7-Eleven officials.

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Feds Tell California Brewer to Cease CBD Beer Production

5/24/2018

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The federal Alcohol and Tobacco Tax and Trade Bureau have ordered a California brewery to cease production of their CBD-infused beer because hemp is a non-standard beer ingredient, the San Francisco Chronicle reports. Black Hammer Brewing unveiled Toke Back Mountain on Apr. 20 and released eight more CBD-infused beers, which owner Jim Furman said became the brewer’s most popular line.

The recipe also includes hemp-derived terpenes, and Furman said he will apply for special approval to use both the CBD and terpenes. They have already started the application process with the agency to get approval to use hemp in their beers. The brewery can continue to sell the beers they have already produced at their tap room.

It’s not just the feds. The Massachusetts Alcoholic Beverage Control Commission killed a plan by Down the Road Beer Co. to produce a CBD-infused beer, saying the recipe would violate the Food & Drug Administration’s Food, Drug, and Cosmetic Act.

Other brewers have had success with CBD infusions. Last August Lagunitas Brewing Company, also based in California, produced 120 kegs of its own CBD-infused beer; and Vermont’s Long Trail Brewing Company announced they would create their own beer using CBD-infused honey. Green Empire Brewing, a much smaller Vermont brewer, unveiled their own CBD-infused beer at September’s Hemp Fest.    

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The Toronto Stock Exchange Tower in Toronto, Ontario photographed at night.

Medical Cannabis Company with Colombian Operations Begins Trading on Canada’s TSX Venture Exchange

5/24/2018

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Canada-based medical cannabis company Khiron Life Sciences Corp begins trading on the TSX Venture Exchange today under the “KHRN” symbol. While the company is based in Canada, its core operations are in Colombia, where they were one of the first companies to receive a medical cannabis license in the Latin American nation.

“We are pleased to be able to offer investors the opportunity to participate in the realization of our strategic and operational objectives. With the completion of this listing, our team will continue to focus on executing on our goal to expand across Latin America, a region with over 640 million people with unmet medical needs. Our patient-centric business model supported by world-class cultivation and extraction processes, brand loyalty development and a doctor education platform, positions us to become a dominant company in this region.” – Khiron President and CEO Alvaro Torres, in a press release

It’s the latest in a series of firsts for Khiron as they are the first medical cannabis producer with core operations in Colombia to list on any securities exchange globally. The firm struck a partnership with the Colombian Neurological Association to host two medical cannabis conferences and was one of the first companies to receive cultivation quotas for high-THC plants in Colombia. It has raised $17 million of equity capital over three financing rounds.

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A young cannabis plant showing signs of growth under an LED grow light.

Pennsylvania Judge Stalls Health Department Plan to Issue Additional MMJ Licenses for Research

5/24/2018

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A Pennsylvania judge has issued a preliminary junction against the Health Department’s plan to hand out additional licenses to cannabis growers and dispensaries that would partner for research with medical schools, the Associated Press reports. The case against the agency was brought by other licensed dispensaries in the state.

The judge ruled that the research provisions go beyond the scope of the law. In the ruling, Commonwealth Court Judge Patricia McCullough said the “regulations appear to be inconsistent with the legislative intent of Chapter 20, which was to permit distribution of medical marijuana for purposes of and in conjunction with research studies conducted jointly” with medical schools.

The Health Department is considering its options to challenge the ruling.

“Research is a vital component of Pennsylvania’s medical marijuana program to improve treatment options for patients suffering from serious medical conditions, including opioid-use disorder. The research program was rolled out in consultation with the sponsors of the original legislation and our approach was meant to ensure lower costs, more accessibility and ground-breaking treatments.” – Department of Health spokeswoman April Hutcheson, to the AP

The plaintiffs’ attorney, Judith Cassel, says that her clients are not opposed to the research but the “clinical registrants” should be doing research exclusively.

“We are happy that the court saw fit to provide a preliminary injunction so that a careful review could be done on the regulations. And hopefully, in the end, the regulations will better reflect the act.” – Cassel to the AP

McCullough said that the Legislature did intend for clinical registrants “to exist exclusively for research purposes.”

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North Carolina Tire Retailer Transitions Into CBD Sales; Offering Product Trial Bundles

5/23/2018

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Pure Relief is a North Carolina-based CBD dispensary founded by entrepreneur and former tire retailer Mike Melton. The company, having transitioned from Melton’s former tire business into a holistic CBD center, may have a curious history but it has made big waves both online and in its local community via CBD product trial bundles.

The acceptance of CBD oils and products as a health alternative has spiked over the past few years, but, due to its origin in the cannabis plant, it has had a hard time growing in states that are less accepting of cannabis. Mike Melton made it his mission to bridge the gap between CBD and the people in his area through Pure Relief.

In 2001, Melton privately opened up a tire superstore. After over a decade of successful tire sales, he explains why he made the leap into the CBD industry:

“The magnitude of the national opioid epidemic, and its effect on people close to me battling drug addiction, really opened my eyes to CBD. Although the industry is growing, and from a business point of view it only makes sense to jump in now, my true reasoning is personally trying to change as many lives as I can for the positive; for the better.”

In January 2018, Melton officially launched Pure Relief online as an all natural product marketplace and changed the signage of the tire shop to reflect his new business. In order to boost interest and get CBD into people’s hands, he decided to keep prices low because he knew the CBD would ultimately sell itself to people who need it, once they’ve tried it.

When asked about his end goal in the CBD space, Melton said, “We obviously want to offer the highest-quality CBD to people around the world online, and we want to have hundreds of CBD dispensaries across the nation. But these are just steps leading to my ultimate goal, which is to cause a meaningful shift in the opioid crisis and save actual lives, one tincture at a time.”

Visit PureRelief.com to learn more.

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7-Eleven Stores to Carry CBD Products by Year’s End

5/23/2018

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Editor’s update: Since this news broke, 7-Eleven has denied having a partnership with CBD company Phoenix Tears and claims that the press release cited in the below article is false.

7-Eleven stores across the country will begin carrying CBD products by the end of 2018, CBD company Phoenix Tears announced today in a press release.

Founded in 2010, Denver, Colorado-based Phoenix Tears produces and distributes CBD tinctures, oral sprays, and other products that have been derived entirely from hemp.

According to the release, up to 4,500 7-Eleven locations should carry the products by the end of this year — that number could go as high as 7,000 different stores within the next three years. The roll-out will initially focus on Nevada, Colorado, Massachusetts, Illinois, Maryland, Florida, California, and Washington D.C.

“We are excited that 7-Eleven will bring the Phoenix Tears product line to millions of Americans who can benefit from these all-natural, safe, and market-proven health alternative products. In addition, this agreement confirms our belief that CBD’s status as a mainstream wellness option has arrived.” — Janet Rosendahl-Sweeney, Phoenix Tears’s founder, in a statement

The partnership between Phoenix Tears and 7-Eleven was facilitated by MarketHub Retail Services, a distributor who works with the convenience store giant.

“Phoenix Tears is a trusted brand that has served consumers’ wellness goals for nearly a decade. We’re delighted to introduce Phoenix Tears’ CBD products to hundreds of 7-Elevens across the country, and address the growing consumer demand for effective, safe CBD-based products that can now be easily sourced over-the-counter.” — Blake Patterson, president of MarketHub Retail Services

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Texas Health Officials Backing Off Retail CBD Confiscations, For Now

5/23/2018

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The Texas Department of State Health Services is backing off a plan – for now – to remove CBD products off retail store shelves, the Austin American-Statesman reports. The agency proposed an inspection protocol in April that would have subjected CBD products to confiscation during inspections.

Health regulators are holding off on the action while they consult with other government entities, including law enforcement, on CBD product policy.

“We’re trying to figure out our big picture. We are getting more information to try to decide on a more overarching policy.” – Lara Anton, spokeswomen for the Department of State Health Services, to the Statesman

The agency received about 1,000 comments on the proposed protocol, the bulk of which opposed the action, Anton said, and that people “wanted to be able to continue to buy CBD.” Although she indicated that the comments also made the agency aware just how many products containing CBD were being sold in the state.

“We weren’t aware of how many different products there were and how widely it was being sold. After reviewing the comments, we realized that we needed to gather more information about the use of CBD in other types of products before making any decisions on how to enforce existing laws that apply to foods, drugs and cosmetics.” – Anton to the Statesman

Texas’ medical cannabis law only allows CBD sales and only three dispensaries have been approved to sell the products.

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Class Action Lawsuit Filed Against Xzibit-Owned Vape Cartridge Company in California

5/23/2018

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A class action lawsuit against vape cartridge manufacturer Brass Knuckles has been filed in California which alleges breach of warranty, false advertising, unfair competition, misbranding, and adulteration of the THC concentrate pens, according to the Cannabis Law Report. The lawsuit also names SC Laboratories Inc. and company owner Alvin Nathaniel Jones, better known as Xzibit, as defendants.

The complaint alleges that the products are not as potent as they claim and contain high levels of pesticides.

“Defendants prominently advertise and label the Products as being ‘Lab Tested, Contaminant Free’ … when in fact they are contaminated by harmful pesticides. Defendants also prominently advertise and label the Products as being the ‘Most Potent THC Cartridge Available.’ However, the THC content of the Products is actually substantially lower than that of many competing vape cartridges. Defendants are able to charge substantially more for the Products than they would otherwise if consumers knew that the Products were contaminated with pesticides and not as potent as promised.” – Complaint text, via Cannabis Law Report

The plaintiff retained Steep Hill to test two Brass Knuckles vape pen products. The tests revealed amounts of the pesticides bifenazate, etoxazole, myclobutanil, trifloxystrobin, permethrin, bifenthrin, and carbaryl that exceed the “action level” for pesticides in California. The test also found that the products contained between 59 percent and 77.3 percent THC, while other products contained between 86 percent and 95 percent THC – rebuking the claim that Brass Knuckles is not the “most potent THC cartridge available” as claimed.

The lawsuit seeks compensatory damages, injunctive relief, disgorgement of profits, restitution, attorney’s fees and costs, and punitive damages. According to the Law Report, the case is not the first but is the highest profile class-action suit to be filed against a legal canna-business.

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Aurora Cannabis Invests $1M in Canadian Drug Delivery Company

5/23/2018

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Canadian cannabis producer Aurora Cannabis has invested $1 million in CCT Pharmaceutical Holdings, Inc, the developers of an oral dose-specific dissolving thin film wafer drug delivery technology. The investment, with a 5 percent convertible debenture, gives Aurora a 9.14 percent interest in CTT and the agreement includes issuance of warrants enabling Aurora to increase that ownership to 42.5 percent.

Aurora CEO Terry Booth said the investment reflects the company’s commitment “to science-based diversification into higher-margin drug delivery technologies for both the medical and adult consumer use markets.”

“The clinically-proven rapid onset of action of CTT’s wafers is a key differentiator that, we believe, will resonate strongly with physicians, patients and adult use consumers. This provides us with an important competitive advantage in the rapidly growing market segment for smoke-free form factors.” – Booth in a press release

Dr. Pankaj Modi, CTT CEO, said that Aurora’s investment increases the company’s “commercial and capital markets visibility.”

“We believe Aurora more than any other LP, provides the global distribution channels, regulatory affairs expertise, scale and manufacturing ability to successfully commercialize this unique technology on a global basis.” – Modi in a statement

Aurora has been busy this year as Canada moves toward federal cannabis legalization. Last week, the company announced it had come to terms to acquire cannabis producer MedReleaf in a $3.2 billion stock deal. In January, Aurora announced it had succeeded in its bid to take over CanniMed, and the company’s 800,000-square-foot Aurora Sky manufacturing facility received a cultivation license from Health Canada. In April, its wholly-owned German subsidiary became the first non-government supplier to ship medical cannabis to Italy.

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