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Mastercard Directs Financial Institutions to Stop Allowing Cannabis Transactions on Debit Cards

7/28/2023

Mastercard has directed financial institutions to stop allowing cannabis transactions on its debit cards, Reuters reports. A spokesperson told Reuters that the change is directly linked to U.S. federal law.

“As we were made aware of this matter, we quickly investigated it. In accordance with our policies, we instructed the financial institutions that offer payment services to cannabis merchants and connects them to Mastercard to terminate the activity. … The federal government considers cannabis sales illegal, so these purchases are not allowed on our systems.” — Mastercard spokesperson via Reuters

The U.S. House has passed the SAFE Banking Act, which would normalize financial services for cannabis companies in states where it is legal, seven times but the proposal has never been given a vote in the Senate.

This year’s version of the legislation is currently in the Senate Committee on Banking, Housing, and Urban Affairs and the House Subcommittee on Economic Opportunity. In both chambers, the bill is sponsored by Republicans and Democrats. The proposal carries 42 co-sponsors in the Senate and 66 co-sponsors in the House.

A 2022 poll by Data for Progress found that 72% of U.S. voters, including nearly two-thirds of Republicans, support giving legal cannabis companies access to traditional financial services.

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Bipartisan Federal Bill Would End Ban on Cannabis Consumers Getting Security-Sensitive Jobs

7/28/2023

Legislation to prevent prior or current cannabis use from becoming grounds for failing to receive security clearance or for being found unsuitable for federal employment was introduced in the U.S. House on Tuesday.

The bill includes bipartisan support, sponsored by Reps. Nancy Mace (R-SC) and Jamie Raskin (D-MD).

The Cannabis Users Restoration of Eligibility (CURE) Act will also allow someone who has previously been denied a security clearance or a federal job opportunity based on cannabis use the chance to have that denial reviewed.

“Every year, qualified and dedicated individuals seeking to serve our country are unable to secure federal jobs and security clearances because the federal government has not caught up with the widely established legal use of medical and recreational cannabis. I am proud to partner with my friend Representative Mace to introduce the bipartisan CURE Act that will eliminate the draconian, failed and obsolete marijuana policies that prevent talented individuals from becoming honorable public servants in their own government.” — Raskin in a press release

The proposal has been endorsed by the Drug Policy Alliance, the Due Process Institute, Law Enforcement Action Partnership (LEAP), the National Organization for the Reform of Marijuana Laws (NORML), and the U.S. Cannabis Council.

In a statement, Morgan Fox, political director for the National Organization for the Reform of Marijuana Laws (NORML), called the current federal policies to deny cannabis consumers some federal jobs “discriminatory” and that the rule “unnecessarily shrinks the talent pool available for these important jobs.” Fox added that the CURE Act would replace the current policies with “fair and sensible hiring and clearance practices that will put America on much stronger footing on the global stage.”

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‘Operation Kandy Krush’ In Florida Uncovers Nearly 70k Hemp Products That Target Children

7/27/2023

Florida officials on Tuesday completed “Operation Kandy Krush,” uncovering nearly 70,000 packages of edible hemp products with packaging that target children due to their likeness to common, branded, candies such as Air Heads, Skittles, Trolli gummy candies, Jolly Ranchers, Sour Patch Kids, and Life Savers.

The products were outlawed by a measure passed during the 2023 legislative session. The bill defined the term “attractive to children” to mean manufactured in the shape of humans, cartoons, or animals; manufactured in a form that bears any reasonable resemblance to an existing candy product that is familiar to the public as a widely distributed, branded food product such that a product could be mistaken for the branded product, especially by children; or containing any color additives.

In a statement, Florida Commissioner of Agriculture Wilton Simpson said the action “sends a clear message that illegal and unsafe hemp products have no place” in the state, and officials “will continue diligently enforcing the law to keep … communities safe.”

“As part of our ongoing commitment to safeguarding Florida’s children and consumers, we launched ‘Operation Kandy Krush,’ Florida’s most extensive hemp inspection sweep ever. Today, we’re proud to announce the results, as we’ve uncovered nearly 70,000 hemp products – including euphoric, high-potency THC products – specifically designed to appeal to children, a blatant violation of Florida law.” — Simpson in a press release

The sweep included inspections of more than 475 food establishments in 37 Florida counties.

Under the law, consumers must be 21 or older to purchase hemp products that contain THC, requires such products to be packaged in a safe container, and requires ingestible hemp products to be held to the same health and safety standards as other food products.

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Alabama Medical Cannabis Firm Accuses Regulators of Erasing Meeting Records in Violation of Open Meetings Law

7/27/2023

A medical cannabis business applicant is accusing the Alabama Medical Cannabis Commission (AMCC) of improperly erasing recordings of its meetings, AL.com reports. The company says the recordings could include information relevant to its lawsuit against the agency.

The lawsuit by Alabama Always LLC and six other firms comes as the state paused all proceedings related to the issuance of medical cannabis licenses in the state after the agency’s “discovery of potential inconsistencies in the tabulation of scoring data.” The administrative hold was announced just days after the state awarded its first medical cannabis licenses.

The AMCC said it has not erased any meeting recordings since the lawsuit was filed on June 22 and would not do so while the case is pending. The agency said its policy has been to use recordings to create written minutes of meetings, and that the Opens Records Act does not require it to keep the recordings after minutes are approved.

The agency also accused Alabama Always of trying to circumvent the court’s position that discovery in the lawsuit is premature and of improperly asking an AMCC employee about meeting records without an AMCC lawyer present, the report says. The AMCC has asked the court to deny Alabama Always’ request for documents and depositions and to restrict company representatives from further contact with AMCC employees outside of the presence of counsel.

Alabama Always argues that the allegation against the AMCC lawyer was an effort to divert attention from the agency’s destruction of potentially relevant evidence in the case and that the AMCC has known the licensing process would be challenged in court since the first case was filed in March. Alabama Always said the requirement to preserve evidence in anticipation of litigation is well established in the law.

Other companies that have joined the litigation against the state include Capitol Medical LLC, FFD Alabama Holdings LLC, Specialty Medical Products of Alabama LLC, CRC of Alabama LLC, Sustainable Alabama LLC, and Medella LLC.

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Bipartisan Federal Proposal Seeks to Update Hemp-Derived CBD Rules

7/26/2023

A group of federal lawmakers last week introduced bipartisan, bicameral legislation aimed at updating federal hemp rules to ensure hemp-derived CBD products are regulated by the U.S. Food and Drug Administration (FDA) like other legal products used in dietary supplements, foods, and beverages.

In a press release, the lawmakers – Senators Ron Wyden (D-OR), Rand Paul (R-KY), and Jeff Merkley (D-OR) and Rep. Earl Blumenauer (D-OR) – said the Hemp Access and Consumer Safety Act “is essential to protecting consumer safety and treating hemp producers fairly.”

“For half a decade now, legal hemp-derived CBD products have been available to consumers across the country. Yet, these products lack common-sense safety regulations to keep consumers safe and support manufactures. It’s past time for Congress to act without reverting back to the misguided criminalization of hemp.” — Blumenauer in a statement

The legislation would give hemp-derived CBD products an opportunity to lawfully be used in dietary supplements, foods, and beverages under the federal Food, Drug and Cosmetic Act; prioritize consumer safety, requiring manufacturers to comply with all existing federal regulations for the products that contain CBD; and ensure that these products are properly labeled.

The lawmakers noted that the Food, Drug, and Cosmetics Act prohibits any new dietary ingredient, food, or beverage from entering the market if it hasn’t been studied or approved as a drug. The FDA has the authority to exempt items from this prohibition, but has yet to exempt hemp-derived CBD, despite congressional action to legalize its production and sale. By exempting hemp-derived CBD from the prohibition, the FDA would be permitted to regulate hemp-derived CBD like all other new dietary ingredients, foods, and beverages.

In a statement, Jonathan Miller, general counsel of the U.S. Hemp Roundtable, said the measure “provides a much needed pathway for FDA to establish a clear and consistent framework for the production, marketing, and sale of hemp-derived CBD to ensure consumer safety while fostering a thriving, regulated market.”

In January the FDA announced that that it does not plan to issue implementing regulations following the legalization of hemp in the 2018 Farm Bill. Instead, the agency said it would “work with Congress” on a regulatory pathway for CBD.

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Florida Supreme Court Grants AG’s Request for More Time to Challenge Cannabis Legalization Ballot Proposal

7/26/2023

The Florida Supreme Court on Monday granted a request from state Attorney General Ashley Moody for more time to challenge a proposed ballot initiative to legalize cannabis in the state, Forbes reports. Moody now has until August 2 to submit her arguments that the proposal does not meet state requirements to be put on ballots.

The American Civil Liberties Union (ACLU) on Monday also filed a brief with the Supreme Court related to the cannabis ballot question, calling their handling of ballot initiatives an “acrobatic exercise,” WFLA reports.

Will Cooper, a constitutional attorney, told WFLA that the “ACLU is arguing that the Supreme Court now has a history over the last several years in Florida of striking down these initiatives.”

The brief points out that during the past five years, the court has struck from ballots four out of nine citizen initiatives it reviewed and declined to review one. In the five years prior, the court struck down zero citizen initiatives out of the seven it reviewed, the report says.

“If the Supreme Court really does want to let the people speak and get out of the business of striking these initiatives down and acted by the people of Florida, I think they certainly have a sufficient basis to let it stand.” — Cooper via WFLA

In her filing, Moody cited the ACLU brief as part of the reason for the extension request. Moody said the court accepted the ACLU brief two days after the deadline for such filings and that she has “just three business days to respond to the arguments in that brief,” according to the Forbes report.

Smart & Safe Florida, the organization behind the initiative, opposed the seven-day extension requested by the attorney general but agreed to a two-day delay. The Supreme Court, however, granted the full extension but said in its response that further requests for more time may not be approved.

If the Florida Supreme Court approves the ballot measure or does not issue a ruling by April 1, 2024, the proposal will likely appear on the 2024 General Election ballots. The measure, a proposed constitutional amendment, must receive support from at least 60% of voters to pass.

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Ohio Cannabis Advocates Fall Short of Petition Goal, Must Find 679 Signatures By Aug. 4

7/26/2023

Advocates in Ohio seeking to put a cannabis legalization question to voters in 2024 are 679 signatures short of their goal and now have until August 4 to gather more, the Associated Press reports. Earlier this month, The Coalition to Regulate Marijuana Like Alcohol said they had collected more than 220,000 signatures – almost 100,000 more than needed – but a review by Secretary of State Frank LaRose determined they were short.

In a statement, Tom Haren, a coalition spokesperson, said that he was confident the organization could collect the remaining signatures by the deadline.

“It looks like we came up a little short in this first phase, but now we have 10 days to find just 679 voters to sign a supplemental petition – this is going to be easy, because a majority of Ohioans support our proposal to regulate and tax adult use marijuana.” — Haren, in a statement, via the AP

A USA TODAY Network/Suffolk University poll released Wednesday found 58.6% of respondents back adult-use cannabis legalization, with about 35% opposed and 6% undecided, The Columbus Dispatch reports. The issue has support from 77% of Democrats, 63% of independents, and 40% of Republicans.

The ballot measure proposes allowing adults 21-and-older to buy and possess up to 2.5 ounces of cannabis and to cultivate plants at home. A 10% tax on sales would fund administrative costs, addiction treatment, municipalities that host dispensaries, and social equity and jobs programs.

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Maryland Hemp Companies Sue State Officials After Cannabis Regulations Force Them Out of Business

7/25/2023

The Maryland Hemp Coalition, several hemp farmers, and other business owners on Monday filed a lawsuit against state officials and agencies over a new licensing process they claim is discriminatory and being monopolized, WBFF reports. The lawsuit names Gov. Wes Moore (D), the Maryland Cannabis Administration, and the Maryland Alcohol, Tobacco, and Cannabis Commission.

The lawsuit challenges provisions in the state’s adult-use cannabis law that cap levels of THC in hemp-derived products that could be sold without an adult-use cannabis license along with details surrounding the licensing process, the report says. Following the passage of the law, hemp businesses were forced to close on July 1.

In an interview with WBFF, Nevin Young, an attorney representing the hemp industry in the lawsuit, said the licensing process violates Maryland’s anti-monopoly laws “by creating a monopoly on licenses to sell cannabis-related products in the state of Maryland,” and the Equal Protection Act “by inventing certain categories of persons who will only be eligible to submit applications for the first round of licenses” – namely social-equity applicants.

“My clients, who have been lawfully selling these products for years, are suddenly in a position where they are being told they can’t sell their products without a license, and yet the obstacles to get a license are nearly insurmountable. … They know that when the state grants monopolies, it’s an invitation to graft favoritism, it eliminates competition, it raises prices, and it limits consumer choice. As soon as a lot of money is on the table, a lot of our elected officials seem to forget about those basic principles.” — Young via WBFF

The current licensing process in Maryland is a lottery and first-round applicants must qualify as social equity applicants, which in Maryland is defined as an applicant with at least 65% ownership and control held by at least one person who has lived in an area disproportionately impacted by drug law enforcement for at least five years of the last decade; attended a public school in a disproportionately impacted area for at least five years; or attended, for at least two years, a 4-year higher education institution in Maryland where at least 40% of the people attending the institution are eligible for a Pell Grant.

Maryland defines an area as disproportionately impacted as having above 150% of the state’s 10-year average for cannabis possession charges. A map of the zip codes that qualify has not yet been provided by state officials.

Young told WBFF that while the lawsuit plays out in court, he’s seeking a temporary restraining order and preliminary injunction to stop the state from enforcing the ban on hemp-derived products. A hearing date has not yet been scheduled for the case.

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Albania Legalizes Medical Cannabis and Industrial Hemp Production

7/25/2023

Albania’s Parliament last week voted to legalize medical cannabis and industrial hemp production, the Associated Press reports. The measure passed 69-23.

The law will create a National Cannabis Control Agency, which will operate under the purview of the health minister, according to a Forbes report. The agency will regulate both the medical cannabis and industrial hemp industries.

However, according to Forbes, the law appears to focus on the export of medical cannabis and industrial hemp, rather than the establishment of a domestic market.

Applicants must have at least three years of experience in at least three main activities related to the production, cultivation, and distribution of the cannabis plant for medical purposes and should own 51% of the company’s shares and have a company capital of at least of about $1 million.

Applicants must also be engaged in the production of cannabis plant by-products in an Organization for Economic Cooperation and Development (OECD) nation for a minimum of five years and be a holder of good manufacturing practices issued by either the European Medicines Agency or the U.S. Food and Drug Administration for at least three years, the report says. The law limits cannabis cultivation across the nation at 200 hectares and each licensee will be allowed to grow a minimum of five hectares and a maximum of 10 hectares.

According to Forbes, no Albanian company currently meets all of the conditions laid out in the law.

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Poll: Half of Pennsylvanians Support Cannabis Legalization

7/25/2023

According to Muhlenberg College Public Health Program’s 2023 Pennsylvania Health Survey, support for cannabis legalization in the state fell from 56% last year to 50% this year – marking the first time in a decade the survey has found a decrease in support for the reforms.

The survey found 38% opposed cannabis legalization with 18% neither in favor nor opposed, and 1% unsure.

In 2013, the poll found 33% in favor and 40% opposed to broad cannabis legalization in the Keystone state, and in 2021, the survey found 58% of respondents backed the reforms – the highest level recorded for the Health Survey.

The poll notes that the drop in support for cannabis legalization “may simply be the product of a sampling error.”

The poll also found a majority of respondents were concerned with the rise in cannabis use among young adults (18-22 years old) – with 22% of respondents saying they were “very concerned,” and 33% “somewhat concerned.” Twenty-seven percent of those polled said they were “not too concerned,” and 18% said they were “not at all concerned.”

Earlier this month, Democratic State Sen. Sharif Street and Republican State Sen. Dan Laughlin introduced a measure to legalize cannabis in the state. That measure is currently in the Senate Law and Justice Committee.

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Arkansas Ban on Hemp-Derived THC Products Takes Effect Aug. 1

7/24/2023

An Arkansas law banning THC products derived from hemp takes effect August 1, 40/29 News reports. The ban comes as the state’s medical cannabis sales are projected to reach a record $300 million this year.

Products covered under the ban include hemp-derived delta-9 THC, delta-8 THC, and delta-10 THC. Each will also be included on the state’s controlled substances list. The law also includes provisions requiring any retailer that wishes to sell any hemp-derived consumable products to get a permit from Arkansas Tobacco Control.

Dawn Harpell, the owner of a CBD and hemp store in Rogers, told 40/29 News that some of her customers have given up their medical cannabis registry cards and frequent her shop instead because her shop is “a little bit cheaper” than the medical cannabis dispensaries in the state.

“Our business has gone from CBD to predominantly delta-8 and all of those products. So it’s become 70% to 80% of my business over the last two years. So if they take that away, I’m pretty much going to have to close my doors because what am I going to sell?” — Harpell to 40/29 News

The measure was signed into law by Republican Gov. Sarah Huckabee Sanders in April.

The law does not prevent hemp-derived products from being transported through the state.

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NECANN & Medical Marijuana Caregivers of Maine to Partner for 2023 Maine Cannabis Convention

7/24/2023

The largest cannabis industry event in Maine is coming August 12-13 at the Augusta Civic Center. Presented by NECANN in partnership with the Medical Marijuana Caregivers of Maine, the event is designed specifically to help educate, promote, and develop state-wide cannabis resources and networking opportunities with 150+ exhibitors and 40+ expert speakers. Cannabis business professionals, investors, patients, entrepreneurs, growers, advocates, and consumers are invited to attend this locally focused, business-to-business convention.

NECANN Maine features two programming tracts, business/innovation and medical/recreational, and offers a full schedule of speakers both Saturday and Sunday with topics like finding a job in the cannabis industry, navigating local & state licensing requirements and using new technology in the cultivation sector, among others.

Every facet of the cannabis industry is represented at NECANN Maine including legalization, banking, payment processing, packaging, patient education, displays and fixtures, cultivation, manufacturing, hemp, hydroponics, legal resources, accessories, POS and management software, private equity and investment resources, among many other timely topics.

NECANN has developed a national reputation for bringing local, regional, and national players together with investors, entrepreneurs, career seekers, canna-businesses, canna advisors, medical marijuana patients, caregivers, advocates and others in the cannabis community. This collaborative approach has resulted in consistently high return-of-investments for exhibitors, sponsors, participants and the local cannabis market by facilitating growth for all who attend.

WHEN: Sat August 12th, 10am-3pm | Sunday August 13th, 10am-3pm
WHERE: Augusta Civic Center, 76 Community Drive, Augusta, ME 04330
COST: $20 for a one-day pass | $30 for a two-day pass

Includes all programming sessions and access to the exhibitor floor, must be 21+ years old unless accompanied by a guardian.

Event details: https://necann.com/maine/

Buy tickets here: bit.ly/Maine23tix

About MMCM
In 2010, Medical Marijuana Caregivers of Maine was one of the first volunteer trade associations organized in the United States and dedicated itself to the support and promotion of safe access to medical marijuana. MMCM continues to advocate for patient rights and access to safe, quality, cannabis medicines and the caregivers who provide for them. MMCM also developed a training program for those who wish to participate in Maines’ cannabis programs to help them stay in compliance and to promote safe practices. Education, Advocacy and Legislation is their motto.

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Black Farmers in Florida Receive Medical Cannabis Licenses

7/24/2023

Two Black farmers in Florida have received licenses to grow, process, and sell medical cannabis, News Service of Florida reports. The approval comes just weeks after Gov. Ron DeSantis (R) signed a bill to issue the licenses.

In October 2021, the state received 12 applications from Black farmers to grow medical cannabis, and in September officials awarded one license but the license was never finalized by regulators because of legal and administrative challenges. The provisions in the legislation about Black farmers satisfy federal requirements in place since 1999. For six years, the Legislature has sought to bring fairness to state licenses for cannabis production and come in line with the federal Pigford v. Glickman settlement under the U.S. Department of Agriculture, which prohibits government discrimination against minority farmers.

The Florida Department of Health issued the licenses on July 11 to Terry Donnell Gwinn and Shedrick McGriff, who each met a deadline last week to submit a required $5 million bond to begin operating, the report says. Both farmers had previously met “all requirements for licensure” by an administrative law judge.

The law gives cannabis industry hopefuls whose applications were found deficient a 90-day “cure” period to address the problems. It’s unclear how many new licenses will be awarded under the law because not all of the applicants met the criteria.

With the addition of Gwinn and McGriff, Florida now has 24 licensed medical cannabis operators.

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Cannabis Company Owes Oregon $27M in Back Taxes; Largest Sum in State

7/24/2023

A Medford, Oregon cannabis company owes the state more than $27 million in back taxes, the Salem Statesman Journal reports. The sum owed by American Patriot Brands represents the largest back-taxes total owed to the state.

The state this month published a list of people and companies that owe the state more than $50,000 in back taxes, following the approval of a 2019 law allowing the list to be made public with the goal of increasing revenue collections. The list’s publication was delayed during the coronavirus pandemic as officials recognized the financial hardship some taxpayers faced.

Notably, the U.S. Securities and Exchange Commission issued fraud charges in March against American Patriot Brands, its CEO, and five others for allegedly funneling investor funds into personal accounts and expenses.

Other cannabis companies on the list include:

CannaKing Marijuana Dispensaries: $319,622
Medical Marijuana Card Services and five other entities owned by Dana L. Weihman: $166,010
Marijuana Paradise: $61,214
Duzon Enterprises: $1,377,046
Sweet Leaf Cannabis LLC and five other companies owned by Jeremy Wheeler: $829,601
SC Holdings LLC and nine other companies owned by Man M. Vu: $691,806
South Lake Retail LLC, owners of Crush Cannabis and Gorgeous Green Retail LLC: $561,618
Elite Integrated LLC, owners of Canna Beach Junction, and Cannabis Corner: $272,608
Patrick B. Maher owner of Canna Beach Junction and Cannabis Corner: $265,299
Rooted Coast Cannabis LLC: $258,394
4.0 Belmont LLC, owners of 41st & Belmont, LLC, and Tetra Cannabis: $149,257
Peou Sea LLC, owners of Brothers Cannabis: $132,489
Singing Sands Cannabis Company LLC: $118, 395
ACNM LLC, owners of Phresh Cannabis: $102,267
Bert E. Gold, owner of Hightide and Oregon Cannabis Co-Op: $62,742
Cascade Cannabis Distributing LLC: $70,586
Austin, Texas-based Jacquelyn Mangione, Gras Cannabis: $82,109
Arlington, Texas-based Oluwaseun B. Adedeji/Elev8 Cannabis LLC: $70,597/$67,586

In May, Gov. Tina Kotek (D) directed the Department of Revenue and the Oregon Liquor and Cannabis Commission to withhold licenses and renewal of licenses from cannabis businesses delinquent on taxes in an effort to improve tax compliance in the industry.

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Imbucanna, Inc. Bolsters Team with Two Key Appointments in Science and Quality Control

7/21/2023

ROANOKE, VA – July 21, 2023 – Imbucanna, Inc., Virginia’s premier and only full-service contract manufacturer for superior quality, solid dose cannabis products, is proud to announce the appointment of Dr. Matthew Hemberger as Chief Technical Officer, and Luke Marine as Quality Control Manager.

Dr. Hemberger, a pharmaceutical industry veteran with diverse experience across multiple dosage forms and development strategies, brings his expertise to Imbucanna while continuing his valuable work as Senior Director of Chemistry, Manufacturing, and Controls (CMC) and Quality at ImmunoGenesis. Prior to his leadership role at ImmunoGenesis, he held various positions at GlaxoSmithKline (GSK), notably as the Director of Data Integrity for the GSK-Pfizer joint venture. His broad expertise includes global manufacturing, supply, asset commercialization, inspections, and regulatory responses.

Dr. Hemberger’s track record boasts significant contributions to the development of various high-profile pharmaceutical products, including Horizant, Cabenuva/Vocabria, and Blenrep. He began his professional journey at Mylan Pharmaceuticals in their Product Development group. Dr. Hemberger earned his PhD in Analytical Chemistry from Florida State University, and his BS in Chemistry from Viterbo University.

Luke Marine, the newly appointed Quality Control Manager, is a Roanoke College graduate with a BS in Chemistry and a minor in Mathematics. Prior to joining Imbucanna, Marine served as the QA/QC Manufacturing Supervisor Chemist in the cosmetics sector, where he ensured compliance with rigorous manufacturing regulations and the maintenance of high product quality standards.

“The addition of Dr. Hemberger and Luke Marine marks an exciting new chapter for Imbucanna,” said Leo Mendez, the CEO of Imbucanna, Inc. “Their diverse experience and innovative approaches to quality control and scientific leadership will be instrumental in our commitment to deliver safe, superior-quality cannabis products.”

Imbucanna, Inc. upholds its pledge to produce high-quality hemp-derived products, supported by its comprehensive in-house analytical laboratory tests and an FDA-registered facility adhering to strict Good Manufacturing Practices (GMP).

About Imbucanna, Inc.
Imbucanna, Inc., based in Roanoke, Virginia, specializes in the production of custom-manufactured, solid dosage products for the legal cannabis market. Founded in 2019, the company caters to the rapidly evolving industry with its patent-pending intermediates to facilitate cannabinoid solid dose formulations. For more information, visit https://imbucanna.com.

Press Contact
Rebecca D. Dillon
Marketing Manager
Imbucanna, Inc.
rebecca@imbucanna.com
(540) 597-2154

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New York Approves Plans to Allow Cannabis ‘Showcases’ & Sales at Public Events

7/21/2023

New York cannabis regulators on Wednesday voted to approve a “cannabis showcase” program that would allow growers to sell products to the public at events, NBC 5 reports. The Cannabis Showcase will allow growers to partner with adult-use cannabis retailers and processors to organize events for showcasing New York products.

The showcases must include a minimum of three licensed cultivators, partnering with a licensed adult-use dispensary to sell licensed and tested cannabis products to customers. The events are only allowed in municipalities that allow for retail cannabis sales and the events must have a predominantly adult population.

The Office of Cannabis Management also gave the green light for cannabis to be sold at concerts, festivals, and other events, the Times-Union reports. During the meeting, the agency approved another 212 conditional adult-use cannabis licenses.

The approval of the cannabis showcases and sales at events comes as New York farmers are sitting on hundreds of thousands of pounds of unsold cannabis due to the slow rollout of retail sales in the state. New York legalized cannabis more than two years ago but only 16 licensed dispensaries have opened across the state for retail sales, while another four have been approved for delivery-only sales as they work to build out their brick-and-mortar locations.

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Minneapolis Mayor Makes Some Psychedelics Enforcement Lowest Police Priority

7/21/2023

Minneapolis, Minnesota Mayor Jacob Frey (D) is set to issue an executive order today instructing the city’s policy to deprioritize the enforcement of laws related to some psychedelics, the New York Times reports. The move follows similar reforms enacted in Denver, Colorado, Detroit, Michigan, and Washington, D.C.

Frey acknowledged that some residents might oppose any loosened enforcement of drug laws, but that he hoped the changes would contribute to a national rethinking of drug laws and draw attention to the role plant-based psychedelics can play for people dealing with depression, trauma, and addiction – claims which have been bolstered by recent studies.

“We have a mass proliferation of deaths of despair. This is something that is known to help.” — Frey via the Times

Frey’s executive order does not legalize psychedelics but makes them the lowest enforcement priority for the city’s police. Psychedelic-related arrests in Minneapolis have been rare in recent years, city officials told the Times. The executive order would still allow people to be charged for distributing psychedelics in schools or for driving under their influence.

The order applies only to naturally occurring psychedelics, like magic mushrooms, ayahuasca, mescaline and iboga, and excludes synthetic drugs like LSD and MDMA.

Minnesota lawmakers in May created a task force that will outline a detailed proposal for legalizing medicinal psychedelics in the state.

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Teamsters Reach Agreement with Verano-Owned Chicago Dispensaries

7/21/2023

Teamsters Local 777 has reached tentative agreements for cannabis consultants and agents-in-charge at Chicago’s Zen Leaf dispensaries. Zen Leaf is owned by multi-state cannabis company Verano, and it is the third MSO the union has successfully bargained agreements with after it launched its campaign to organize the cannabis industry less than three years ago.

In a statement, Jim Glimco, president of Local 777, said the “contract includes monumental improvements that the workers on this committee fought incredibly hard to achieve.”

“…It’s been a pleasure working alongside such a dynamic, energetic, brilliant, and tenacious group of trade unionists. If past is prologue, the future of the Chicago cannabis industry belongs to us.” — Glimco, in a press release

The agreement includes wage increases ranging from 17% to 20% over the next three years, paid time off, employer-funded retirement contributions, overtime allocated by seniority, and the replacement of “at-will” employment with a just process for addressing disciplinary matters, the union said.

Peter Finn, Teamsters Western Region International vice president and director of the Teamsters Food Processing Division, called the contract “a guidebook on the various ways that MSOs can create a prosperous environment for their workforce, thereby incentivizing long-term careers in this business and reducing the loss of talent.”

The Zen Leaf workers will vote on ratifying the contracts within the next two weeks.

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Michael Brosgart: Cannabis Vaporizer Innovation & Development

7/20/2023

Vaporizers are frequently lauded as a “smoother” or even “safer” alternative to smoking, but whether or not that’s true depends on the quality of the vape hardware in question. Additionally, not all vaporizers were designed to be used exclusively with cannabis, meaning that vape consumers are frequently faced with inconsistent — and even undesirable — product experiences. U.S.-based Advanced Vapor Devices (AVD) was founded to address these concerns.

In this written Q&A, we ask Michael Brosgart — the Chief Operating Officer for AVD — about the evolution of their technology, the company’s founding and R&D process, and what separates AVD vaporizers from products by other vape manufacturers.

Read his answers, and more, in the full interview below!

What was your career path prior to joining AVD?

Born and raised in the Bay Area, I was surrounded by cannabis culture. But when I graduated college in 2005, there was no career path in cannabis.

I worked for over a decade in the Latin American finance industry, providing corporations, banks, and governments in the region with access to global investors. I also worked in the luxury beauty industry and gained valuable experience in consumer packaged goods and how to sell them through B2B channels. All that knowledge became an asset as I entered the cannabis industry.

Before joining the AVD team, I was the VP of Sales and Marketing at The Arcview Group and worked with some of the top brands in the cannabis industry. That’s where I met Alex Kwon, CEO and Co-Founder of AVD, who was in the process of launching the company in 2018. The rest, as they say, is history.

What separates AVD’s technology from other vaporizers?

Cannabis knowledge is key: Unlike most vaporizers in the market that leverage e-cigarette technology and adapt it for cannabis oil, our product innovation is rooted in our team’s decades of experience working with cannabis and extracting its compounds.

To this end, we have our own manufacturing facilities and control every facet of our operation – from raw material supply to product delivery. This way, we can translate our plant knowledge into vape hardware that delivers the best possible performance for cannabis.

We’re known for engineering devices that provide an exceptional flavor experience. A key feature is our No-Burn Technology™ consisting of various elements that work together to preserve authentic flavors, including our proprietary ceramic core that smoothly absorbs oil for consistent heating, vaporization, and flavor retention. By embedding the heating coil in the ceramic core, hot wires are not directly exposed to oils. Instead, heat is evenly transmitted, preventing burnt oil.

Most AVD batteries feature PowerWave™. As the name suggests, the battery sends short intermittent pulses to the cartridge for optimal heating that avoids heat spikes, an essential aspect of flavor preservation.

How has your vaporizer hardware changed and evolved over the years?

Our technology has evolved to keep up with oil producers’ pursuit of consistent reliability, flavor, and innovation. Over the years, we have continued refining our components and experimenting with new material sciences, carefully curating new products, including the ever-popular all-in-one devices that are so prevalent these days.

Our fundamental approach to product development has stayed the same over the years – extensive R&D, stringent quality control, and adherence to international quality standards.

We also continue our mission to innovate for our clients’ benefit and advocate for the cannabis industry. We recently shouldered the litigation burden and won a year-long patent infringement lawsuit initiated by Chinese e-cigarette maker Shenzhen Smoore Technology Limited (parent company of CCELL) against some 30 U.S. vape companies.

What is the R&D process like at AVD?

Our R&D process is informed by the market, trends, and our clients. It generally takes two paths: invention and building new products from the ground up; and refinement and enhancing our existing technologies to suit a client’s needs. For example, we recently helped a major MSO launch an exclusive product designed specifically for their consumers and markets.

How does AVD grow its customer base?

At a deeper level, we value our relationships over any one transaction. This approach builds and fosters meaningful industry relationships. The outcome is an established customer base who advocate for AVD and spread the word.

What is something you wish more vape consumers understood about vaping technology?

It comes down to education and consumers’ understanding of what distinguishes a high-quality vape from a low-quality one. Not all vapes are equal, and this is most evident in consumer feedback about vapes that taste terrible and burn their throat and lungs.

Many consumers pick their vapes by association, meaning they choose the brand instead of the actual hardware. I wish more consumers would ask about brands’ manufacturers: the technology, raw material inputs, and standards they adhere to. This understanding would help avoid the unpleasant experiences often reported by cannabis vape shoppers.

What do you think the future holds for cannabis vaporizers and vaping technology?

Vapes are already one of the most popular formats for consuming cannabis, and they are growing in popularity by the day. As for the promise of the technology, I believe it will transcend the cannabis industry and influence other dosing technologies and delivery systems. A great deal of innovation is taking place in cannabis vaporization technology that could potentially impact and change delivery systems for medicine, oil, and other liquids.

What is your advice for entrepreneurs who are looking to join the cannabis space, whether at the head of their own cannabis company or an ancillary business?

Expect to fail fast. This business is not for the faint of heart—try your best to “fail forward” and learn from setbacks.

Respect the plant. We are liberating the plant from decades of prohibitionist stigma, and someone entering the industry should respect that mission. A cannabis license is not a license just to make money but to invest in this meaningful cause.

Have a vision and execute it. When you disrespect the process or think you have it all figured out, the industry will humble you.

Thank you, Michael, for answering our questions! Readers can visit AVD710.com to learn more.

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New York City Business Owner Fined More Than $400k for Illegal Cannabis Sales

7/20/2023

A New York City business owner who illegally sold cannabis at several shops in Manhattan was ordered on Tuesday to pay more than $400,000 in taxes and proceeds from the sales, the Associated Press reports. The Manhattan District Attorney’s Office said that Rami Alzandani, the owner of the business, would not face litigation as part of a non-prosecution agreement and, as part of the deal can keep his stores open but cannot sell cannabis products.

Azandani must pay $103,000 in restitution to the state Department of Tax and Finance, and forfeit another $300,000 in illegal proceeds, the district attorney’s office said, according to the AP. Azandani’s stores will be subject to regular inspections over the next three years to ensure they are not selling cannabis products, Manhattan DA Alvin Bragg’s office said. All of the stores are located in Manhattan, except for one in Ridgewood, Queens.

Under the agreement, Alzandani pleaded guilty to a charge of criminal possession of cannabis in the second degree and received a $5,000 fine.

In a statement, Bragg said that public safety is undermined “when there is such a huge proliferation of unlicensed and unregulated storefronts selling cannabis products that have not been properly inspected.”

His office said that it is pursuing other criminal investigations and is “in active conversations” with landlords to evict shops in violation of state law. Earlier this month, the New York City Council Committee on Public Safety approved a bill that aims to hold landlords accountable for knowingly leasing a commercial premises to a tenant who sells cannabis without a license.

Under the measure, the first time an unlicensed retailer is found operating at a leased commercial site, either the Sheriff’s Office under the NYC Department of Finance or another enforcement agency will issue a written warning to the landlord, which will provide the landlord with knowledge of the tenant’s unlicensed activity and allow the landlord to evict the tenant, the report says. If an unlicensed retailer is found operating in the same commercial premises after a warning has been issued, the landlord will be fined $5,000 for the first violation, and $10,000 for each subsequent violation.

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Massachusetts Testing Lab Accuses Cannabis Regulators of Retaliation After CEO Voiced Lab Fraud Concerns

7/20/2023

A Massachusetts cannabis testing laboratory is accusing the Cannabis Control Commission (CCC) of retaliating against it after its CEO testified to lawmakers about public health concerns and lab fraud related to the state’s cannabis industry, the Boston Herald reports.

During a hearing Tuesday testifying on bills that would change the way the cannabis industry operates in the state, MCR Labs CEO Michael Kahn said the “CCC enforcement staff may be misusing investigations as a pretext to silence and harass licensees.”

“I reached out to the CCC with concerns about public health on multiple occasions over the past several years. Instead of listening or taking action, CCC staff, in my opinion, retaliated by opening an investigation into our laboratory.” — Kahn, during his testimony, via the Herald

Kahn said that after he had given a presentation about lab fraud in the cannabis industry, eight CCC staff arrived at his lab and conducted a six-hour inspection that he described as “unfocused and unprofessional.” He said that the staff demanded about 20,000 pages of documents and about 30,000 hours of video.

Dan Delaney, executive director of the Association of Cannabis Testing Laboratories, told lawmakers that Kahn’s experience is not unique.

“Licensees recognize the power that the CCC has and understandably fear retaliation if they contest the commission’s intent or actions,” he testified to the panel. “I’ve heard it from other labs, and I’ve heard it from other licensees outside the lab testing space. The real problem is structural.”

In a statement to the Herald, the CCC confirmed it “has several ongoing enforcement matters regarding MCR Labs.”

“Relative to this licensee’s testimony, Commission staff completed an unannounced inspection in March 2023 at another Independent Testing Lab (ITL) the week prior to the MCR Labs inspection for some of the same reasons and looking for similar records,” a CCC spokesperson told the Herald. “With regards to other investigations referenced during the hearing that remain ongoing, the agency will not comment at this time.”

The legislative panel was hearing testimony on S.58 and H.106, which aims to establish an internal special audit unit within the Cannabis Control Commission.

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Trulieve Sues Ohio Medical Cannabis Company Over Unpaid Debts

7/20/2023

Florida-based medical cannabis company Trulieve Cannabis Corp. filed a civil lawsuit last week against an Ohio medical cannabis company seeking payment of loans and other fees, Dayton Daily News reports. The lawsuit against Harvest of Ohio, which also operates Harvest Grows, is attempting to recover $23.8 million in debt from capital expenses, operating expenses, cash funding, payroll, licensing fees, and rent.

Trulieve also claims that the debt total includes $4 million in interest and alleges that Harvest executives used the loans to “pay themselves six-figure salaries while simultaneously asking (Trulieve) to lend them even more money.”

“We have a responsibility as a business and a fiduciary responsibility to our shareholders to collect this debt, and that is what this suit seeks to accomplish. … We agreed to loan them money and they agreed to pay us back, yet they have not paid a penny. Trulieve recognized that Harvest of Ohio and Harvest Grows were not negotiating in good faith and had no intention of repaying the almost $25 million debt and decided not to extend the terms any further.” — Trulieve, in a statement, via Dayton Daily News

According to the complaint, the Ohio Harvest companies entered into several agreements with a company called Harvest Health and Recreation Inc. in 2020. The following year, Trulieve acquired the firm and continued to provide financial assistance to the companies.

Nicole Yelland, executive director of communications for Trulieve, told Dayton Daily News that the company has offered more than a dozen deadline extensions for repayment and that the latest extension expires this month.

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Poll: 61% of U.S. Voters Back Legalizing Psychedelics for Therapeutic Use

7/19/2023

A majority – 61% – of registered voters in the U.S. back legalizing psychedelics for therapeutic use, according to the inaugural University of California, Berkeley Psychedelics Survey. Fifty-six percent of those surveyed supported obtaining Food and Drug Administration (FDA) approval for psychedelics by prescription.

A supermajority of respondents, 78%, backed making it easier for researchers to study psychedelic substances, while nearly half of those polled, 49%, supported removing criminal penalties for personal use and possession, and 44% supported allowing psychedelic use for spiritual and religious use.

Of the 61% who supported allowing therapeutic use of psychedelics, 63% said psychedelics are not “something for people like me,” 56% said psychedelics are not “something I am interested in learning more about,” while 47% said that psychedelics are not “good for society.”

Among those who agreed with the decriminalization of the substances, 57% said psychedelics were not for them, 39% were uninterested in learning more, and 41% said psychedelics were “not good for society.”

Just over half of respondents (51%) said they had a “first-degree” connection to psychedelic use – either they or someone close to them had used a psychedelic drug.

“Respondents with awareness and a first-degree connection to psychedelics are also more likely to support policy reforms, have positive perceptions of psychedelics, and trust in almost all sources of psychedelics information (with the exception of law enforcement). With the exception of research expansion, no psychedelic policy reform is majority-supported by voters who have no first-degree connection to use.” — UC Berkeley Center for the Science of Psychedelics Unveils Results of the First-Ever Berkeley Psychedelics Survey, July 12, 2023

The poll found that 47% of voters have heard something about psychedelics recently, with 48% of those saying that they have heard about psychedelics’ use for mental health treatments. Black people were least likely to have heard something about psychedelics recently (29%) and had a much lower first-degree connection to psychedelics use (26%) than other groups.

Among those polled, liberal voters backed legalized therapeutic access to psychedelics by a huge margin, 80%, compared to 66% of moderates and 45% of conservatives. The majority of voters polled were comfortable with psychedelic therapy being used to treat those suffering from terminal illnesses (80%), veterans (69%), and people suffering from treatment-resistant depression and anxiety (67%); fewer were comfortable with open access to psychedelic therapy for anyone over the age of 21 (44%), or the use of psychedelic therapy to treat addiction (45%).

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