Michigan Businessman Sentenced to 2+ Years In Prison for Cannabis Industry Bribes

A Michigan businessman on Thursday was sentenced to more than two years in federal prison for bribing the former head of the state cannabis licensing board, the Associated Press reports. John Dalaly pleaded guilty to the charges in April, admitting that he had paid Rick Johnson at least $68,200 in cash and other benefits, including two private flights to Canada, and hired Johnson’s wife, who helped him fill out forms that would end up in front of the state Medical Marihuana Licensing Board, as a consultant for $4,000 a month. 

Johnson, a Republican who served as House speaker from 2001 to 2004 chaired the board for two years before it was disbanded in 2019. He has admitted to accepting at least $110,000 in bribes while head of the board and is currently awaiting sentencing. Prosecutors are recommending a six-year prison term for Johnson.

Two lobbyists have also pled guilty in the scheme.

Following Dalaly’s sentencing, U.S. Attorney Mark Totten said, “Public corruption is a poison to our democracy, and we will hold offenders accountable whenever and wherever we find them.”

In a sentencing memo in Johnson’s case unveiled on Thursday, prosecutors detailed that Johnson also received “thousands of dollars’ worth of commercial sex with a woman in the adult entertainment industry.” the Detroit Free Press reports. Dalaly’s attorney said his client “had nothing to do with having a sex worker” involved with Johnson.

End


Minnesota Supreme Court: Cannabis Odor Does Not Justify Vehicle Search

The Minnesota Supreme Court on Wednesday affirmed that cannabis odor is not enough reason for police to search a vehicle without a warrant, WCCO reports. The decision was in relation to an appeal made by the state in a 2021 case in which a man’s vehicle was searched after officers claimed they smelled cannabis during a traffic stop. The search turned up methamphetamine and drug paraphernalia and the individual was charged with possession. 

The court found that the only justification for the search was the odor of cannabis, which a district court ruled was insufficient reason to conduct a search and subsequently suppressed the evidence and the man’s charges were dismissed. 

“Because we conclude that the odor of marijuana emanating from a vehicle, alone, is insufficient to create the requisite probable cause to search a vehicle under the automobile exception to the warrant requirement, we affirm.” — Minnesota Supreme Court decision via WCCO 

The Minnesota Appeals Court had also affirmed the district court ruling.  

In its decision, the Supreme Court noted that nothing in the defendant’s actions during the stop was enough “to give suspicion that he was under the influence while driving, no drug paraphernalia or other evidence to indicate that the marijuana was being used in a manner, or was of such a quantity, so as to be criminally illegal, and no evidence showing that any use was not for legal medicinal purposes,” according to a KARE11 report.   

“In the absence of any other evidence as part of the totality of the circumstances analysis, the evidence of the medium-strength odor of marijuana, on its own, is insufficient to establish a fair probability that the search would yield evidence of criminally illegal drug-related contraband or conduct,” the court said in its opinion.  

The case originated prior to Minnesota legalizing cannabis for adult use; however, the state established a medical cannabis program in 2014 and cannabis possession had been decriminalized in the state since 1976.  

End


Former Cannabis CEO Hired to Oversee Connecticut Cannabis Program

The Connecticut Department of Consumer Protection (DCP) has tapped the former CEO of the state’s first licensed cannabis grower as state program manager for cannabis, CT Insider reports. Jennifer Mandzuk worked at Theraplant from 2014 until January and served as the company’s CEO since July 2022, the report says. 

DCP spokesperson Kaitlyn Krasselt told Insider that “Agencies often hire subject matter experts from the industry to ensure high quality, experienced staff.” 

“There is no formal conflict of interest when a former employee of an industry that we regulate comes to work for the regulating agency. … There is no requirement to obtain a formal approval from the Office of the State Ethics.” — Krasselt to CT Insider 

The state ethics office told Insider that the state’s code of ethics “does not contain a blanket prohibition against a current public official making decisions that would affect his or her former employer.”      

From 2019 to 2020, Theraplant spent $337,213.45 on lobbying efforts, according to a CT Post report in March. In 2021 and 2022 the firm spent $320,974.35, the report says. 

Theraplant is one of four active cannabis cultivators in the state, and was the first when medical cannabis was legalized in 2015. The company was acquired by Greenrose Holding in 2021, and again this year by New York-based DXR Holdco subsidiary NewCo, according to Security and Exchange Commission filings outlined by Insider.   

According to the job post, the state program manager for cannabis “is responsible for the management of the cannabis program in the Department of Consumer Protection, and may be responsible for management and oversight of other programs within the Drug Control Division and reports to the Director of the Drug Control Division.”  

End


Woman Awarded $75K After City Tried to Take Her Baby Over Cannabis Use

A woman in the Bronx was awarded $75,000 from the New York City Administration for Children’s Services (ACS) after the agency attempted to put her newborn son in foster care because the woman smoked cannabis, legally, hours before giving birth, the New York Times reports. Chanetto Rivers sued the city in May and a federal judge last week signed off on the settlement.  

Rivers, who is Black, had claimed the ACS had targeted her because of her race. The agency has long faced criticism for its treatment of Black families and its harsh policies against parents who consume cannabis, the report says. 

In August 2021, five months after New York lawmakers passed adult-use cannabis reforms, Rivers smoked cannabis at a family cookout and started having contractions a short time later and went to the hospital to give birth. According to her lawyers, Rivers was asked, while giving birth, whether she had consumed drugs or alcohol, and she admitted to having smoked cannabis. A drug test was subsequently performed on Rivers and the newborn, which came back positive for cannabis, and two days later ACS said it was opening a neglect case and moved to place the child in foster care. Under ACS policy, cannabis in a baby’s system is not enough for removal unless the child is found to be impaired, and Rivers’ infant was not found to be impaired. Rivers was ultimately granted permission by a judge to gain custody of the child. 

Niji Jain, Rivers’ lead attorney, told the Times that the settlement shows “actions speak louder than words.” 

“You don’t pay somebody $75,000 before any discovery is exchanged at all in the case based on allegations alone unless there is some ‘there’ there,” she said in the report.  

In a statement, the city’s Law Department said it had “carefully reviewed the case and determined that this settlement was in the best interest of all parties.”  

End


Third Lawsuit Filed Over Alabama’s Bungled Cannabis Licensing Process

The embattled Alabama Medical Cannabis Commission (AMCC) is facing another lawsuit tied to its medical cannabis application process, WBRC reports. Medella LLC is suing the agency for defamation claiming the AMCC evaluations implied, inaccurately, that one of the company’s owners or senior directors had a criminal record. 

The overview of applicant evaluations submitted to the AMCC included a column labeled “Pass/Fail Items noted,” with letters of the alphabet included to indicate different kinds of pass/fail issues. The letter “A,” according to the summary given to Commissioners, indicated “Criminal Conviction History (felony or controlled-substance-related misdemeanor /ten years).” Medella is listed with an “A” in that summary, despite not having any ownership or senior members with such a conviction. 

The AMCC on Monday updated its website with a new version of the evaluations which removed the letter “A” from all but one applicant, including Medella. The AMCC defended Medella’s inclusion on the original, published, evaluation saying the “A” designation was due to the agency not receiving all of the company’s required criminal background checks. 

The lawsuit is asking a judge to issue an injunction prohibiting the Commission from “continuing to make defamatory statements against” the company and is seeking damages.  

The AMCC is facing two additional lawsuits – one stemming from its alleged failure to follow the state’s open meetings law, and another from Verano Holdings which claims regulators had no right to revoke prior medical cannabis licenses it had awarded.  

Late last month, regulators said they planned to “start back at square one” in the licensing process – and would follow the open meetings law guidelines. The agency then announced an administrative stay on the licensing process.   

End


Connecticut Cannabis Sales Hit Record High of $25M in August

Cannabis sales in Connecticut continue to set records, topping $25 million in August, according to the Department of Consumer Protection (DCP). In August, adult-use sales in the state totaled $14 million, while medical cannabis sales reached $11 million. 

It’s the seventh month in a row that adult-use sales in the state have increased. Medical cannabis sales also saw a slight increase of about 8,000 purchases after declining for four straight months. 

In all, 52% of combined cannabis sales were flower, with vape products comprising 30%, and edibles another 11%. In August, medical cannabis patients purchased 278,395 products, and adult-use consumers purchased 354,700 products. The average product price for medical cannabis patients was $39.36 in August, while the average price of adult-use products was $39.49, the DCP said in a press release. The figures represent a slight decline from average product prices in the state the prior month – $39.92 for adult-use products and $36.66 for products sold to registered patients. 

The data does not include taxes collected at the point of sale on adult-use transactions and is subject to further review by the department. Medical cannabis patients do not pay taxes on the purchase of their medicine. 

End


New York to Open General Cannabis Licensing Next Month

New York state plans to open cannabis industry applications to the general public starting October 4, including for current medical cannabis companies. The Cannabis Control Board on Tuesday approved regulations that provide a pathway for more companies to companies to enter the state’s market – which has been beleaguered by a slow rollout and a recent lawsuit that has all but halted licensing in the state entirely.  

The regulations include requirements for plant nurseries, cultivators, processors, cooperatives, distributors, dispensaries, delivery services, and microbusinesses. The regulations require the state’s currently, vertically integrated, medical cannabis companies to pay a special licensing fee of $20 million which would allow them to open three adult-use dispensaries in locations where they currently operate. 

Current conditional license holders will be able to obtain a nonconditional license if they are in good standing with state regulations. 

Application and licensing fees for new licenses run between $750 and $300,000 and social equity applicants will be eligible for discounted fees. The regulations do not include caps on any license types. 

New York’s legalization law does include social-use provisions; however, the new rules make no mention of cannabis lounges, clubs, or cafes. 

It is expected that once the application process opens next month, the injunction imposed by a state Supreme Court judge will be lifted.  

End


California Bill to Allow Cannabis Cafes Moves to Gov.

The California Assembly on Monday passed a bill to allow cannabis cafes in the state, moving it to Gov. Gavin Newsom (D) for final approval. The measure passed the Assembly 66-9 after being approved last week 34-3 by the state Senate.  

Under the measure, local jurisdictions could allow cannabis retailers to prepare and serve non-cannabis food and beverages, and to hold and sell tickets to live musical or other performances, “in the area of the premises” where consumption of cannabis and cannabis goods is authorized, according to a legislative summary. The summary notes that, under the law, cannabis retailers cannot prepare or sell hemp products, retailers with suspended licenses are not allowed to engage in activities permitted under the bill, and all non-cannabis food and beverages present on the premises of a retailer must “be stored and displayed separately and distinctly from all cannabis and cannabis products” present at the site.  

Some cities already allow social cannabis use; however, they are not permitted to sell non-cannabis food or drinks.   

The law also prohibits alcohol from being served at the cafes or events that allow cannabis consumption, and that the events must also prohibit tobacco use, according to the bill text. 

If approved by Newsom, the measure would take effect next year. 

End


Nebraska Advocates Launch Third Medical Cannabis Ballot Initiative Campaign

Cannabis advocates in Nebraska are making their third attempt to get an initiative to legalize medical cannabis to voters as they host a signature drive kickoff today. Nebraskans for Medical Marijuana (NMM) has twice failed to get the issue on ballots – in 2020 after the state Supreme Court ruled the question’s wording violated the state’s single subject provision for initiatives, and in 2022 after the campaign failed to gather enough signatures.

In a press release, the campaign said the 2022 effort was unsuccessful because the “campaign lost two major financial backers who had provided significant funding during the initial effort, which at that time helped with the hiring of paid circulators.”

The campaign needs to collect 125,000 raw signatures on two complementary petitions by July 3, 2024.

The NMM is co-chaired by state Sen. Anna Wishart (D) and former state Sen. Adam Morfeld (D). Wishart has long backed medical cannabis legalization in the state and has sponsored legislation in the state Senate with little success.

A University of Nebraska-Lincoln survey from May 2022 estimated that in 2020 and 2021 83% of Nebraskans supported the reforms. The figures matched internal polling conducted by NMM, which four 80% support for medical cannabis legalization in the state.

End


Glove Essentials: Cannabis Industry Must-Knows

Gloves. We all use them. What the hell for? Which type is best? In this three-part series we’ll break it down into the basics of disposable gloves, how they directly affect your bottom line and why gloves are vital in regulatory compliance.

When you buy the right cannabis glove from a trustworthy supplier, you shouldn’t have to think about gloves ever again. Sounds nice to get something off your plate? Let’s dive into that mythical ‘perfect glove’ we are looking for and what it means.

Nitrile, Latex, Vinyl … Oh My!

There are four main glove materials: nitrile, latex, vinyl and polyethylene.

In the majority of the cannabis industry, we recommend using nitrile gloves due to their overall durability, puncture resistance, and chemical protection.

Polyethylene is a great glove that can cut costs. It should be used for light work of a few minutes or less, for instance, gathering products for sale in a dispensary.

It is much less common, but we do see vinyl gloves being used in the cannabis industry. Although it may be seen as an advantage that vinyl gloves’ surface provides a slightly reduced ’stick’ factor, we do not recommend using vinyl gloves due to their permeability and potentially toxic raw materials. There are global concerns over toxic pollution during vinyl glove manufacture and disposal that causes adverse health effects on glove users. Chemicals in vinyl gloves have also been shown to migrate onto the product being handled. Read more about it here.

Latex gloves provide durable protection and puncture resistance but aren’t commonly used due to some people being allergic to a protein in the latex glove. This allergy, which can be severe, could affect the glove wearer or consumer who ingests the product handled by the glove.

Ok, we got it. Nitrile gloves are the solution. Now what?

Disposable gloves are a simple safety item. Let’s not overcomplicate it, but there are a few best practices to keep in mind when selecting the right nitrile cannabis glove.

1. How Thick of a Glove Should I Use and Where?

We commonly see cannabis companies buying one glove for everyone in the facility. Depending on the stage of the seed-to-sale process, we recommend using slightly different gloves tailored to the task at hand…no pun intended. For instance, critical areas requiring gloves are:

Cultivation – Disposable gloves are essential to both preventing cross-contamination as well as protecting the staff from the cannabis plants, soil, and fertilizers being handled. We’ve found a slightly textured 3mil nitrile glove provides the strength needed as well as an enhanced grip. If workers are reaching through and between plants where more arm protection is needed, we recommend using a nitrile glove that offers more protection with an extended cuff. In a few stages of the process, cannabis plants and stems can snag gloves during processing which requires the durability of 6mil gloves.

Trimming – Whether dry or wet trimming, gloves need to be considerably durable as they can become caked in resin. But this is the stage where details matter and your beautiful bud gains its shelf appeal power. Trimmers must be able to feel exactly what they are doing. We’ve found that a thinner high-quality 3mil nitrile glove allows for the necessary tactility, without sacrificing strength.

Extraction – Certain stages of the extraction process require a higher level of chemical protection and durability to withstand the ‘stick’ factor. Always verify a glove’s level of chemical protection with the supplier. In our experience, a quality 6mil nitrile glove does the trick – protecting both you and your product.

Edibles – The best glove for making edibles depends on the product being made. For example, a 4mil works for making brownies, while you will most likely do better with a 5mil when working with gummies.

Dispensaries – A thin nitrile glove (2.6mil) or a cheaper polyethylene glove will suffice for the lighter tasks in a dispensary. This prevents direct contact with the product as well as provides a professional look.

Labs – A dexterous glove is needed for the intricate movements involved in lab testing. We recommend using a 3mil glove and strongly warn you to source your gloves carefully. If a lab uses contaminated gloves, as the cannabis producer processor did in this recall, the lab could contaminate the product being handled and wrongfully impact the test results – potentially giving a false positive! We tested disposable gloves right out of a new box and were shocked at what we found! As a result, we developed our Delta Zero™ glove testing program to mitigate the risk of glove contamination.

After that mouthful sinks in, it’ll be easy to understand why different stages of the cannabis process require different gloves. Typically, we find that two glove thicknesses, in the appropriate sizes for your team, will do just fine.

2. Glove Strength & Durability

Glove thickness can be misleading. It’s a common misconception that thicker gloves are more durable. We are glove gurus, not math wizards, but there is a huge variable in that equation being missed. The quality of ingredients used to make the glove is paramount in determining its durability. Gloves made with superior ingredients are:

  • Stronger – allows them to be thinner, but just as strong. This is key because it reduces glove ripping and, in turn, decreases overall glove use – directly impacting your overhead costs. It also allows your team to be more efficient by reducing the amount of time wasted when changing ripped gloves.
  • Stretchier (Elongation) – enhancing workers’ comfort and fit.
  • Skin Friendly – Shameless plug on behalf of your staff, a glove made with higher quality ingredients is less likely to cause skin irritation and allergies. When you think about it, a glove is a pretty gnarly environment for your hands to be in all day. It’s warm, moist (yeah, we said it) and quite harsh on hands. Skin issues can often be caused by cheap glove chemicals, enhanced by a warm, sweaty environment.

It is a frequent complaint that we hear, but believe it or not, disposable gloves should not rip all of the time. Finding the ‘right glove’ makes all the difference.

3. Texture

Disposable glove texture is a way to enhance your grip. A glove can be fully textured or just on the fingertips. We recommend looking for a glove with at least textured fingertips.

4. Fit

The correct glove fit is vital to your staff working efficiently and effectively. A glove with a ‘fat guy in a little coat’ fit is too tight, increasing the chances of it ripping when putting it on, and it puts unneeded stress on the wearer’s hand with each movement. A glove that fits like JNCO pants in the 90s is likely to rip or have the loose material cut during use, possibly contaminating your product.

5. Color

Some larger facilities use glove colors to differentiate safety zones and help the quality manager to recognize workers and mitigate cross-contamination. It’s also, hands down (see what we did there), the easiest way to enhance the cool factor in your IG posts.

6. Medical vs. Food-Grade

The ‘grade’ of gloves depends on the testing and/or documentation submitted prior to importing them. Medical gloves have different regulations for quality, safety, and performance than food-grade gloves. Overall, it’s a decent system, but what we find disturbing is that neither medical nor food-grade gloves are verified free of contamination — unless they are sterile gloves such as those used during surgery.

Disposable gloves touch your final product, which in turn gets tested before being sold. You can unknowingly contaminate your product before sending it off for testing by simply using a glove you didn’t realize was contaminated. Sadly, it’s happened.

We’re all for living life on the edge, but that’s a bit risqué even for us. So, we developed our proprietary glove testing program, Delta Zero™, to mitigate the risk of glove contamination.

Now that you are glove experts, it may be time to check that you have the right box of gloves on the shelf. Tune in next month to find out how disposable gloves directly affect your bottom line.

End


Cannabis Sales in Massachusetts Total $5B Since Adult-Use Launch

Adult-use cannabis sales in Massachusetts reached $5 billion on August 31 after record-breaking monthly sales in June, July, and August, according to the state Cannabis Control Commission (CCC). Sales surpassed the $4 billion mark just eight months prior to hitting $5 billion, which the CCC said makes the period the shortest it’s taken for Massachusetts businesses to generate another $1 billion dollars in gross sales.

Cannabis sales commenced in Massachusetts in 2018. So far this year, adult-use cannabis sales have totaled more than $1 billion. 

In a statement, Commission Executive Director Shawn Collins noted that the milestone comes even as Maine, Rhode Island, and Connecticut also experienced record sales over the summer.  

“Demand for tested, quality cannabis products remains strong in the region, and consumers shopping in other states have not impacted Massachusetts’ success.” — Collins in a press release 

The agency also noted that, to date, just five cannabis retailers in the state have surrendered or allowed their license to expire, while just 16 of all cannabis businesses have either let their license expire, surrendered their license, or had it revoked. The state currently has 317 cannabis retailers, nine delivery couriers, eight delivery operators, and one microbusiness with a delivery endorsement.  

The CCC notes that it is also currently undergoing a regulatory review to implement new social equity rules and regulations. The agency has until November 9 to issue the updated program regulations.    

End


Poll: 60% of Floridians Back Adult-Use Cannabis Legalization

A poll released last week from the University of South Florida and Florida Atlantic University found that 60% of respondents back adult-use cannabis legalization in the state, while 83% backed the state’s current medical cannabis program. 

The survey found about 29% of respondents wanted cannabis to remain illegal for adult use in the state with about 11% unsure.  

The poll also found that less than half – 45% – of respondents believed medical cannabis “is being abused” (50% disagreed) with 39% saying medical cannabis is too easy to obtain in the state (57% disagreed), and 40% believing there should be “harsh penalties” for sharing medical cannabis (52% disagreed). Another 44% of those surveyed said medical cannabis should be taxed (45% opposed).    

In June, the campaign seeking to put an adult-use cannabis question to Florida voters in 2024 surpassed the signature threshold to get the issue on ballots; however, the initiative is being challenged by state Attorney General Ashley Moody over concerns that, if approved, cannabis consumers would face “devastating criminal liability under federal law.” In a brief filed on behalf of Moody last month, Solicitor General Henry Whitaker argued that the ballot summary “misleads in ways that, though sometimes subtle, are likely to influence voters – and to do so in a way that entrenches the sponsor’s monopolistic stranglehold on the marijuana market to the detriment of Floridians.”

The state Supreme Court will ultimately determine whether the ballot initiative covers only a single subject as required under state law, is not confusing to voters, and whether it will allow it on ballots.

End


Lawsuit Filed Challenging Virginia’s THC Limits on Hemp Products

A lawsuit challenging Virginia’s newly imposed THC limits on hemp products in the state was filed in federal court last week, the Virginia Mercury reports. The plaintiffs include two hemp businesses and a private citizen who argue that the new restrictions, which took effect July 1, cause financial harm to hemp businesses and interfere in interstate commerce.  

The law, passed in February, set the maximum amount of THC in hemp products at 0.3% concentration and 2 milligrams per package, and imposes fines on businesses that break the rules.  

The lawsuit was filed by hemp retailer Northern Virginia Hemp and Agriculture, North Carolina-based hemp producer and distributor Franny’s Operations, and Rose Lane, a hemp customer. The lawsuit argues that, if not halted, the law will cause millions of dollars of irreparable harm” and “cause the Banned Products to be unavailable in the Commonwealth, exacerbating potential health problems to thousands of Virginians.” The plaintiffs claim the law is counter to the U.S. Constitution’s supremacy clause.  

The lawsuit contends that the state’s definition of legal hemp conflicts with the federal definition – cannabis with less than 0.3% of delta-9 THC content. Virginia’s law defines legal hemp products as those with less than 0.3% total THC content, which includes not just delta-9 THC but also delta-8 THC and all other natural and synthetic isomers combined, the report says. 

In an interview with the Mercury, Jason Amatucci, president of the Virginia Hemp Coalition, which helped find plaintiffs and fundraise for the lawsuit, described the law as “irresponsible” and taking “a straight sword” to “cut the industry down.”  

A study published in March – prior to the bill’s passage – by Whitney Economics found that the crackdown could cost the state more than 4,000 hemp industry related jobs.  

Virginia lawmakers in 2021 passed a bill to legalize cannabis for adult use in the state; however, in 2022 Republican Glenn Youngkin was elected governor and his administration has no plans to facilitate the launch of the program.  

End


California Increasing Incentives to Get Municipalities On Board with Cannabis Licensing

The California Department of Cannabis Control (DCC) is increasing eligibility for its Local Jurisdiction Retail Access Grant (LJRAG) along with the award amounts for municipalities that are given grants under the program. 

The LJRAG program is part of the state’s efforts to expand legal cannabis access in jurisdictions where adult-use cannabis operations do not currently exist. The Phase II funding is tied to the local jurisdiction’s issuance of local permits or licenses authorizing cannabis retail. Under the revised Phase II guidelines, eligible local jurisdictions may apply for funding regardless of whether they participated in Phase I. The DCC said the new guidelines will allow more than 300 cities and counties to pursue funding in Phase II. 

The state will award $15 million in grants under the Phase II program. Phase I awarded $4.1 million in grants to 18 cities and counties throughout the state.  

In a statement, DCC Director Nicole Elliott said “There are still many locations throughout the state where cannabis usage is notable, but existing consumers do not have convenient access to legal retail cannabis.” 

“We know that cannabis consumers often make purchasing choices based on convenience, so sufficient access to legal retail reinforces extremely important consumer safeguards.” — Elliot in a press release 

Phase II eligible applicants include jurisdictions that prior to July 1, 2022, did not have a cannabis retail licensing program in existence; have a plan to develop and implement a cannabis retail licensing program; and have issued one or more cannabis retail licenses to cannabis businesses within the jurisdiction of the city or county pursuant to that program. 

The Phase II funding amounts for the issuance of a retailer license and equity retailer license have been doubled. Jurisdictions may now receive $150,000 per eligible retailer license and $300,000 per eligible equity retailer license issued. The previous amounts were $75,000 and $150,000, respectively. 

End


High Times Intellectual Property Acquired By Canadian Firm

Longtime cannabis and counterculture company High Times last week entered an intellectual property partnership with Canada-based Lucy Scientific. The deal includes all of High Times’ existing licensing agreements, including rights to the High Times magazine, Cannabis Cup, 420.com brands, and respective domain names.  

Lucy Scientific Discovery Inc. (NASDAQ: LSDI) is a Vancouver, British Columbia, Canada-based Nasdaq-listed company with holdings and operations in a variety of psychotropic businesses. The company holds a Controlled Drugs and Substances Dealer’s License granted by Health Canada’s Office of Controlled Substances. 

Under the deal, Lucy will issue 19.9% of its outstanding stock to High Times and make payments semi-annually for the next five years based on EBITDA generated from the acquired IP. Lucy will license the right to operate retail stores and manufacture and sell THC products in the U.S. back to High Times, in return for a license fee of $1 million per year, increasing to $2 million per year upon federal legalization. The company expects the acquisition of High Times IP to add at least $10 million of revenue and $5 million of EBITDA to its 2024 results. 

In a statement, Richard Nanula, CEO and executive chairman at Lucy, said the firm expects the partnership “to drive high margin revenue quickly and sustainably across the cannabis sector around the world.” 

“This is a great opportunity to grow the market presence of the nearly 50-year-old High Times brand globally through licensing and online distribution. We are confident that this opportunity can add significant value for our shareholders.” — Nanula in a press release 

Adam Levin, executive chairman of High Times, added that “there is no better partner than Lucy” to drive the brand forward. 

“This transaction will open up tremendous new opportunities to grow and expand the High Times brand,” he said in a statement.  

High Times currently owns eight retail cannabis stores and several retail brands. 

End


Missouri Combined Cannabis Sales Surpass $1B

Combined cannabis sales in Missouri last week topped the $1 billion mark, according to state Division of Cannabis Regulations data outlined by KRCG. Medical cannabis sales in the state commenced in October 2020, while adult-use sales began last February.  

Since the launch of adult-use sales on February 3 through the end of May, adult-use sales have totaled $256.2 million while medical cannabis sales have totaled another $94 million, the report says.  

According to the Missouri Cannabis Trade Association (MoCannTrade), there are now more than 14,800 direct cannabis industry jobs in Missouri. The trade group also notes that more than 31,000 cannabis-related criminal records have also been automatically expunged. Missouri was the first state to include automatic expungement of non-violent cannabis crimes as part of its legalization initiative.  

The state’s cannabis industry was rocked last month by the recall of nearly 63,000 cannabis products that regulators said were not tracked in the state’s seed-to-sale tracking system.  

The state’s Auditor’s Office also announced last month that it planned to investigate the state’s adult-use and medical cannabis programs to make sure they are operating legally. That audit will review a five-year period from 2018 through June 30, 2023. Auditor Scott Fitzpatrick noted that the cannabis legalization amendments “represent some of the most substantial changes” to the state’s constitution “in recent memory” and “now make up more than one-fifth of the language” in the state constitution.   

End


California Sues Multiple Hemp Companies Claiming State Law Violations

California is suing several hemp brands throughout the U.S. claiming violations of the state’s Proposition 65 rules, which require products “known to the State to cause cancer or reproductive toxicity” to carry a “clear and reasonable” warning label. Although the 2018 Farm Bill effectively legalized hemp containing 0.3% THC or less at the federal level, in California’s legal system, delta-9 THC is considered a chemical “known to cause harm to the developing fetus” and having any amount present makes a product subject to the Prop 65 rules.

The state is also accusing the businesses of unfair practices for selling “inhalable hemp products,” which are prohibited under a 2021 law clarifying the state’s hemp rules. The lawsuit claims the companies sold inhalable hemp products through their websites to customers in California, violating state law.

“This complaint seeks to remedy the defendants’ illegal sale of inhalable hemp products and their failure to protect consumers from highly toxic chemicals that are present in all commercial hemp products and their failure to warn consumers about the risks these products pose,” the lawsuit states. 

The companies targeted by the lawsuit include:

  • Oregon-based G.E.T. Agriculture LTD
  • Nevada-based Hempacco Company, Inc.
  • California-based Cheef Holdings
  • Wyoming-based IHF Online LLC
  • New Mexico-based Eagle Moon Farm, LLC and EMH Wholesale
  • Massachusetts-based Berkshire CBD
  • Vermont-based Berkshire Farm Collective

In a conversation with Ganjapreneur, CEO of Hempacco Company, Inc. Sandro Piancone stated that the company does not sell products to California consumers and that the company was in full compliance with Prop 65.

The other brands named in the suit did not immediately respond to a request for comment but this article will be updated if and when they do. The companies face potential penalties of up to $1,000 for each sales violation, $2,500 per day for each violation of the Prop. 65 Warning law, and $2,500 for each violation of the state’s unfair practices law.

The lawsuit was filed on August 31 in the Superior Court of Alameda County. To view a copy of the filing, click here.

End


California Lawmakers Give Final Approval to Psychedelic Plant and Fungi Decriminalization Bill

California lawmakers on Thursday gave final approval to a bill to decriminalize personal possession and use of psilocybin mushrooms and several plant-based psychedelics including DMT and mescaline for adults 21-and-older. The measure passed 21-3-6 and moves next to Gov. Gavin Newsom (D) for his signature. 

The legislation also requires the California Health and Human Services Agency to convene a workgroup to study and make recommendations on the establishment of a framework governing therapeutic use, including facilitated or supported use, of the substances. The bill requires the workgroup to send a report with its recommendations to the legislature on or before January 1, 2025, according to the bill text. 

Two other states, Oregon and Colorado, have also reformed state laws related to possession of psychedelic plants. In November 2022, Colorado voters approved a ballot question to decriminalize personal possession of psychedelic plants and fungi and establish a regulated therapy system to provide people with therapeutic access to the substances. 

In 2020, Oregon voters approved a ballot question to decriminalize possession of all drugs, including psychedelics and another to establish a regulated psilocybin therapy system. 

In 2020, Washington, D.C. voters approved a measure to decriminalize and deprioritize the possession and use of psychedelic plants and fungi with 76% voter approval.  

The City Councils of Oakland, Santa Cruz, Cruz and San Francisco have already passed resolutions deprioritizing the enforcement of the possession and use psychedelic plants and fungi, effectively decriminalizing in those cities.  

Since June 2019, the cities of Ann Arbor, Michigan, and Somerville and Cambridge, Massachusetts have each decriminalized the possession and use of psychedelic plants and fungi at the local level.  

End


Eastern Band of Cherokee Indians Legalizes Cannabis

Citizens of the Eastern Band of Cherokee Indians (EBCI) on Thursday voted to legalize cannabis, WSOC-TV reports. The vote was 2,464-1,057, according to the unofficial poll results.  

EBCI is the only territory in North Carolina where cannabis is legal. In July, North Carolina House Speaker Tim Moore (R) said that the medical cannabis legalization bill being considered by lawmakers was likely dead for the session and the proposal has not gotten any additional movement in the legislature. 

Workers near Cherokee told WSOC-TV that they have been growing cannabis plants for the last year preparing for the tribe to enact the reforms, they estimate that they have more than 4 tons of plants. ECBI has 57,000 acres of land inside North Carolina. 

The tribe legalized medical cannabis in 2021 and the first medical cannabis dispensary is expected to open in the fall, EBCI Secretary of Agriculture and Natural Resources Joey Owle told Blue Ridge Public Radio. 

Earlier this month, U.S. Rep. Chuck Edwards (R-NC) introduced legislation to withhold some federal funds from states and tribes that allow adult cannabis use. The law is a reaction to the planned vote by EBCI. The action would not apply to states and tribes that legalize or have legalized cannabis for medical use. 

End


4th Annual Black Cannabis Week Amplifies the Black Experience and Fosters Equity in Cannabis

Virtual and In-Person Programs – September 17-24, 2023 – Black Cannabis Week (BCW) returns for the 4th edition of this transformative virtual global event amplifying the Black experience in cannabis, September 17-24, 2023. BCW will culminate with the in-person free DACO Cannabis Opportunities Conference in partnership with Pennsylvania State Senator Sharif Street, on September 22-23, 2023 at the prestigious Temple University Lewis Katz School of Medicine.

The DACO Cannabis Opportunities Conference serves as an unparalleled platform that provides educational and informational experiences including panels, engaging speakers, and legal and career support. In its 6th year, the conference remains free to attend and offers entrepreneurs, investors, job seekers, adult patients, policy makers, advocates, and the “cannabis curious” a chance to gain priceless insight into opportunities in the industry, network and develop solutions for making cannabis more equitable.

“Black Cannabis Week has grown exponentially over the past years, driven by our commitment to genuine access and opportunities for all. As a driving force in the cannabis industry, our mission with BCW and the DACO Cannabis Opportunities Conference is to amplify Black voices and create an inclusive space for wellness, innovation,, and restorative justice,” shares Cherron Perry-Thomas, Co-Founder and Director of Social Impact at The Diasporic Alliance for Cannabis Opportunities (DACO).

Highlights of the 2023 BCW program include: Rooted & Invested Pitch Contest, DACO 2023 RISE UP Award to highlight Black centering advocate(s), groups, and businesses working to transform the cannabis industry’s current norms, Elevated Expressions: An Art Encounter, the Homecoming Activation, a showcase of licensed cannabis suppliers of color, and Keynote Speaker, Gary Chambers Jr., a Baton Rouge native and dedicated advocate for social justice and community upliftment.

Registration is now open for the DACO Cannabis Opportunities Conference and applications for Black Cannabis Week vendors, and sponsors will be accepted through September 8.

Learn More & Register Now:
linktr.ee/blackcannabisweek
www.blackcannabisweek.com

Black Cannabis Week Locations:
Black Cannabis Week Virtual Events
Sunday, September 17 through Thursday September 21,2023

Free 2-Day Gathering at Temple University School of Medicine
Friday/Saturday: Temple University, Lewis Katz School of Medicine 3500 N. Broad Street Philadelphia, PA 19140

For media inquiries and interview requests, contact:
Muhammida El Muhajir
WaxPrint Media
muhammida@waxprint.media
215-607-4223

 

End


Josh Kesselman: How RAW Papers Went from Niche Product to Global Phenomenon

Josh Kesselman is the founder and CEO of RAW®, a rolling paper brand that has become a favorite of cannabis smokers around the world, from celebrity musicians to everyday tokers. In this interview, Josh discusses how cannabis legalization has impacted the rolling paper and smoke shop industries, how RAW was able to build an audience using guerilla marketing and word of mouth in the days before social media, and how he came to realize that what he originally thought was a niche-focused product actually had widespread appeal.

Read the full interview below!


Ganjapreneur: Having sold rolling papers for decades, how would you say that the spread of cannabis legalization in recent years has affected the rolling paper industry?

Josh Kesselman: One of the biggest changes that helped RAW was the shift of the market. It finally broke up the stranglehold that mega tobacco had on convenience stores. Some convenience stores – especially large chains – would only carry rolling papers from one manufacturer. And that would block all the other brands out of the marketplace and decrease competition. With legalization, it shifted the market because people began going to new places to get their rolling papers and get their smoking supplies. By doing that alone, it shifted into more of an open marketplace. My belief is that whenever we have an open marketplace, RAW wins. Because I believe RAW has the better product. And I think that’s the way competition should always be – whoever has the best product, wins. Not just the person who’s able to get someone to sign an exclusive agreement.

I liked how legalization changed consumer behavior, in that they started looking for better quality. They started becoming much more focused on having the ultimate, best experience. I think that’s what has caused RAW to really blow up with success – the shift in perception from getting what’s cheapest, to getting what’s best.

How has legalization impacted the smoke shop industry in states that have created regulated cannabis markets? Are these businesses finding it difficult to compete with dispensaries?

It depends. Some have thrived because they’re near a dispensary. Many dispensaries don’t often carry the whole smokeshop array of goods, especially the big chain dispensaries who are really very limited in what they carry. So for some smokeshops, it’s an opportunity to thrive really just by proximity. There’s a dispensary here in Arizona with a smokeshop next door. And I think they’re owned by the same company, and the smokeshop just kills it. People get their material from the dispensary, and then they go next door and get all their smokeshop items. So it definitely hurts some stores, but it also creates opportunity for others.

Obviously, taste varies widely among individuals as well as across demographics and regions, but in general, are there some qualities that people who smoke cannabis tend to look for in a rolling paper vs. people who roll their own cigarettes?

Sometimes yes, sometimes no – it depends! There’s an older segment of tobacco smokers who really like these antiquated bright white, bleached papers with chalk in them. It gives you a whiter ash on the end of your cigarette. There is that segment that still exists. I believe a cannabis smoker is even more attuned to quality and is going to enjoy a slower-burning unbleached rolling paper even more. So for the overall market, legalization has really shifted everyone’s focus towards quality. Not just quality in terms of how it burns, but the flavor it imparts to you. Most people are looking for much more of a minimal natural flavor. I think consumers are increasingly less likely to choose rolling papers with chalk in them, than they were in the past because I believe they can taste it. In my experience, chalk kind of changes the flavor. It gives you that whiter ash at the end of your smoke. However you don’t need that when you’re smoking good weed. You want to experience the weed itself without something coming between you and it. You want a more raw experience.

These days, “influencer” marketing is a big deal for B2C brands looking to get the word out about their products. But when you founded RAW, social media was in its infancy. How did you go about building influence and reputation in the early days?

The key for us was smoke circles. We gave away a lot of free product in order to get it into people’s smoke circles. Back then, almost every rolling paper on the market was bleached-white. Getting people to switch to a completely different type of paper that didn’t have chalk in it and wasn’t bleached out – it was something they were very hesitant to try. Their grandfather and great-grandfather and so on had probably all smoked that typical bleached-white chalked paper, and now we were trying to get them to shift it up. So when I came out with RAW, we needed to establish the market. So what I did was I gave a lot of it away, because I knew once it got into the smoke circles, once they tried it, they would love it and understand what I was creating for them – and that’s what worked. One person in the circle would get a packet of RAW, often for free in the beginning, and then everyone in that smoke circle on a Saturday night would experience that RAW paper, and they would have a different type of enjoyment, a more connected experience with their material. And after that, they’d ask, ‘What was that? Wow, that’s really cool, I like that!’ and then they would go into a smokeshop and maybe buy a pack of RAW and bring it into their own smoke circle. And it spread like that – from smoke circle to smoke circle. That’s how we spread. It wasn’t social media at all, it was really just the smoke circles and getting through to them with an experience they had never had before.

Who was the first celebrity you met who loved RAW papers, and how did you get introduced?

The rapper, Curren$y. He loved RAW papers and sang about it in a song. He’s the one who introduced Wiz Khalifa to RAW, who eventually sang about RAW, too. But Curren$y was the first bigger artist who really stood up and sang about us. I got to meet him when his manager got in touch with me, because Curren$y wanted some RAW cones. And I was like, hell yeah, I couldn’t wait to meet him. When the Jet Life Tour came through Phoenix, Arizona, I got invited to hang out with him on the bus, and we ended up staying on the bus with him for a couple days, having a fucking blast. Smoking and telling stories. We had a great time. The tour was an incredible experience for me. I learned a lot about the market. Up until that point, I had been thinking my whole market was more of a natural-minded hippy, like my vegan friends. Once I met Curren$y and his whole circle, I realized I was completely not understanding the market. That it wasn’t just my hippy friends who wanted to smoke the best, it was that everyone wanted to smoke the best. And once I understood that, it shifted my mentality about the product. And then I watched RAW really explode. I had completely underestimated my own product. I thought this would just be a little, niche item. When I was in college, I learned all about niche marketing. It’s what I enjoyed. I’m not good at mass marketing. I’ve always focused on making products for a specific person – my friend with dreads, super vegan, incredibly naturalist, I get him. I can make him a product and for people like him. So I thought I was making a niche product for a niche market. I didn’t understand mass marketing, which is why I didn’t understand that everyone wanted to smoke the absolute best.

What do you think is the best social media platform for cannabis-adjacent brands right now, and why?

When it comes to reaching consumers, there’s no place better than Instagram. People spend the most amount of time on Instagram, so it’s the ultimate goal. But it’s a conundrum because it doesn’t feel like Instagram wants us on there, but they want the amount of traction they get from us. Our videos blow up and we get millions and millions of views, and people want the product.

Overall, would you say that consumers in states with legal cannabis are becoming more educated about the plant and its potential to heal and bring people together, or do you think that over-commercialization of cannabis runs the risk of stifling these ideas?

I think ideas are already starting to be stifled. You need a real open market in order for people to succeed. I think the larger the companies get, the more that smaller ideas get brushed under. I really wish there were more smaller businesses in cannabis, because that’s where innovation happens. The bigger you get, the harder it is to innovate.

In addition to papers, RAW has designed numerous devices intended to enhance the smoking experience over the years. What advice would you give to someone with an idea for a new gadget or type of paraphernalia, but is unsure how to turn their idea into a business?

Not all my inventions are profitable. Many are not. My advice would be: to be careful with going too niche. Some of the stuff I’ve made is too, too, too niche. You know, there are just so few people that could actually want that thing, even if it’s funny. Like, my handsfree joint holder that comes around your neck and is flexible, you can hold a joint while you play video games. It’s hilarious. The people that get it absolutely love it. But you wouldn’t want to build a business off that. RAW sold enough of them to break even, and it’s great. It made me laugh, it made all my friends laugh. But I wouldn’t want to try to make a living off that one contraption. That would be a really bad living. I run into that a lot with people. Sometimes people try to give me ideas and I say, ‘dude, almost nobody is going to want that.’ A lot of people think that by combining items, that’s the way. For example: I want to make a kit that holds these things. But my experience is that no, they rarely want kits. They like things to be individual. So my advice is to not go too niche, but to make sure there’s a viable thing there that people will actually want. Because if it’s just one little item, you can’t build a business off that. You need a lot! A lot of viable items.


Thank you, Josh, for answering our questions! Readers can learn more about Josh Kesselman and RAW® Rolling Papers by visiting www.rawthentic.com.

End


South Dakota Considers Increasing Possession Limits for Cannabis Patients

Proposed medical cannabis rule changes in South Dakota would allow for higher possession limits for edibles and would raise registration fees for medical cannabis companies from $5,000 to $5,310, KELO reports. Under the proposal, patients could possess up to 15 grams of edible oils and 2,000 milligrams of THC of other edibles products, up from 500 milligrams. 

The allowable THC in edibles would also be raised from 100 milligrams to 500 milligrams. 

The rules would also allow the size of infused topical products to be 16 ounces, instead of the current 1 ounce limit. Medical cannabis businesses would also have to use scales that are certified under the state’s weight and measures law. 

The new rules would also require medical cannabis to be manufactured with unadulterated ingredients. 

“No botanical, synthetic, or artificial terpenes may be added to any cannabis product during the manufacturing process. No artificial, synthetic, or hemp-based cannabinoids, including Delta-8 THC, may be added to any cannabis product during the manufacturing process.” — South Dakota Medical Cannabis Draft Rules 

The draft rules would also require medical cannabis products to be sold only in opaque packaging and require packages to have expiration or use-by dates, which could not be altered by a dispensary. 

Additionally, the proposal would allow cannabis testing facilities to complete accreditation within 32 months, rather than the current 18 months, and require dispensaries that are not seeking license renewal to notify the South Dakota Department of Health 45 days prior to the expiration of its operating certificate.  

End


Workers at Three Illinois Rise Dispensaries Ratify Contract

Workers at three Rise dispensaries in Illinois have ratified their first collective bargaining agreement. Rise is a subsidiary of multi-state operator Green Thumb Industries (GTI), and the contract covers workers at two locations in Joliet and one in Niles.

The agreement marks the end of what the Teamsters Local 777 described as a “protracted fight” with GTI that included a 13-day work stoppage that ended in May. Jim Glimco, Local 777 president, said the “fight should be a lesson to cannabis companies all across the country and not just Illinois – Teamsters don’t back down.”

“A lot of people who went through what these men and women went through would’ve thrown in the towel. Not this group. They’re young, energetic, tough, smart; they look out for one another, and they embody what being a part of this union is all about.” — Glimco in a press release

The agreement includes wage increases of 18% over the lifetime of the agreement, attendance bonuses, a scheduling policy based on seniority, guaranteed tips and discounts, improved safety standards, and protection against unjust termination or discipline.

Reilly Drew, a Rise worker who served on the bargaining committee, described the agreement as “historic.”

“We started as a small but united group of workers,” Drew said in a statement. “Over the last year and a half, we have grown to be a strong union, changed our workplace for the better, and forged a bright path forward for workers in our industry.”

The 13-day strike was the longest at a cannabis retailer in history.

End


Maryland Releases Social Equity Rules and Interactive Maps of ‘Disproportionately Impacted Areas’

Maryland has released its social equity applicant criteria, including an interactive map outlining Disproportionately Impacted Areas in the state — meaning areas that were disproportionately affected by cannabis prohibition. The Office of Social Equity (OSE) also provided documents that outline open public schools, higher education institutions, and zip codes in the areas.  

Under the rules, eligible social equity applicants must have lived in a Disproportionately Impacted Area for five of the last 10 years immediately preceding the submission of the application; attended a public school in a Disproportionately Impacted Area for at least five years; or for at least two years, attended a four-year institution of higher education in Maryland where at least 40% of the individuals who attend the institution are eligible for a Pell Grant. 

The OSE also launched the Social Equity Verification Portal for individuals interested in obtaining a cannabis business license. The portal opens September 8 and will allow prospective applicants to confirm their social equity status before the license application round opens later this year. The portal will be open for 60 days, closing on November 7. 

Maryland’s first round of adult-use cannabis licensing will be limited to qualified social equity applicants and the release of the social equity criteria allows potential applicants to start the process of establishing their qualifications. 

End