Former DNC Political Operative Sued for Fraud by South Dakota Cannabis Companies

2/24/2023

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A former political operative for the Democratic National Committee (DNC) is being sued in South Dakota, accused of defrauding two medical cannabis companies and their investors of about $1.7 million, the Star Tribune reports. Dakota Natural Growers, 605 Cannabis, and more than 20 of their investors filed the lawsuit last month against Will Hailer, eSt Ventures LLC, Badlands Fund GP LLC, and Badlands Ventures LLC claiming that Hailer and the three funds, which Hailer manages, solicited a total of $3.5 million in investments with the “intention of stealing and/or misappropriating most of the money.”

Hailer has served as a senior advisor for the DNC, as a campaign manager for current Minnesota Attorney General Keith Ellison, and as executive director for the Texas Democratic Party.

According to the lawsuit, the cannabis firms had found investors who would invest $3.5 million into the companies but Hailer approached the owners early last year and allegedly promised if they entrusted him with that $3.5 million, he could raise another $10 million to equally invest in Dakota Natural Growers and 605 Cannabis. The capital raise was controlled through eSt Ventures and the investors.

The investors obliged and put the $3.5 million into the Badlands Ventures fund, according to the lawsuit. In court documents, the plaintiffs argue that “the defendants never secured any other investor, for any amount.” Hailer and Badlands GP ultimately returned $1.8 million but the remaining balance was never returned. The parties reached a settlement agreement last year that would have had Badlands Ventures pay about $1 million to Dakota Natural Growers and about $600,000 to 605 Cannabis, and a document filed in court shows the agreement was signed by Hailer but the money was never sent, according to the lawsuit.

The plaintiffs are seeking the return of $1.68 million plus attorney fees and unspecified “punitive damages.”

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Dr. Greenthumb’s Ends Los Angeles Partnership with LAHC Inc.

2/24/2023

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Dr. Greenthumb’s Worldwide, founded by legendary hip-hop artist B Real of Cypress Hill, and LAHC Inc., a multi-year partner at Dr. Greenthumb’s dTLA dispensary location, have mutually decided to part ways, according to a recent press release.

The shift is due to the quickly changing landscape of California’s cannabis industry, the press release said, as both parties have sought more control over the brand’s direction and operations. After finding themselves unable to negotiate an agreeable path, both parties elected to move forward each focused on their own enterprises.

Going forward, customers should see a gradual change at DTLA’s 2019 Pasadena Ave. Los Angeles store. Furthermore, Dr. Greenthumb’s Worldwide has begun construction at a new Van Nuys dispensary, opening later in the spring of 2023, and a location in Oxnard, expected shortly after the Van Nuys site.

Dr. Greenthumb’s Worldwide representatives said the brand was grateful for the ongoing support of the store’s employees and the service provided to the brand’s fanbase.

“LAHC has played an integral part in the overall brand’s success and we wish them the best as they step in a different direction.” — Dr. Greenthumb’s Worldwide statement

B Real announced plans to build a more active and hands-on managerial model to continue scaling his enterprise and vision, with the mission of amplifying and extending a “culture that honors individuals who are unapologetically themselves.”

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Massachusetts’ Harpoon Brewery Launches its First THC Beverage

2/24/2023

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Harpoon Brewery has launched its first THC-based beverage, Rec. Weed, in partnership with Novel Beverage Company. The company describes Rec. Weed as “hop-forward yet approachable.” It contains no alcohol, 5 milligrams of THC, real passionfruit puree, green tea, and hops. 

Dan Kenary, CEO and co-founder of Harpoon, said it partnered with Novel on the product because of its “vast knowledge” of the cannabis industry and “strong New England roots.” Both companies are based in Massachusetts.

“The adult beverage space is constantly evolving. With THC now legalized in states across much of the country – especially here in the Northeast – we saw not only high demand for a THC-based beverage, but an opportunity to experiment in a way that would uniquely leverage our strengths in the beer world.” — Kenary in a press release 

Rec. Weed is the second cannabis-inspired product from Harpoon’s parent company, Mass. Bay Brewing Company, after previously launching Long Trail’s CBD Seltzer. The CBD Seltzer is available in Connecticut, Massachusetts, New Jersey, Rhode Island, and Vermont.  

Rec. Weed is currently only available at adult-use dispensaries in Massachusetts. Novel products are available at adult-use cannabis dispensaries in Maine and Massachusetts. Novel has also worked with Shipyard Brewing and Sea Dog Brewing on cannabis beverages.  

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Dr. Dabber XS Mini-E-Rig Review

2/24/2023

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The Dr. Dabber XS is the latest offering from a leader in the E-rig space that takes portable dabbing to the next, but smaller, level. Known for their Boost Evo and Switch rigs, Dr Dabber’s latest piece puts filtered concentrate consumption in your pocket or hand bag. But, don’t be fooled, the devices’ minimal size does not take away from the unit’s functionality, however.

The Dr. Dabber XS is made up of four pieces: a spill-proof glass bubbler attachment, a ceramic atomizer, the glass carb cap, and the battery unit/base. The XS fits together easily — just screw in the atomizer to the battery; place the glass bubbler, after adding the water, over the atomizer, noticing the tight seal; and lastly, add the carb cap, another tight fit, and the Dr. Dabber XS is just about ready to fire. There are a few more accessories that make the unit complete: a dab tool, a silicon collar to hold the carb cap, a handy tiny funnel — it’s so cute — to fill the bubbler, and even some alcohol-infused cotton q-tips to clean the atomizer and glass bubbler.

Once it’s all put together, the bubbler is bubbling, and the concentrate is loaded, it only takes five clicks on the power button and then a five-second hold before the vape gets flowing. The XS has four temperature settings: 475°, 525°, 575° and 625°. Three quick taps on the power button will change the temp, which is indicated by different colors with green being the hottest. The XS takes about 20 seconds to heat up and is hot just long enough for a tasty dab hit.

There are lots of things I like about the Dr. Dabber XS. Besides the great vapor production, ergonomic heavy base/long-lasting battery unit, and glass bubbler, it is extremely easy to add concentrates, a great feature for patients like myself, blind, who have trouble using traditional concentrate devices. The battery heft gives the XS a solid feel, and if it tips over, the no-spill bubbler saves the day. The alcohol-soaked q-tips will come in handy pretty quickly though, so be ready to keep the XS cleaned up.

Visit the company website to find out more about the Dr. Dabber XS or to purchase an XS for yourself.

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California Launches Grant Program to Expand Retail Cannabis Access

2/23/2023

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The California Department of Cannabis Control (DCC) last week launched a $20 million grant program to expand consumer access to regulated cannabis, which the agency is calling “a national first-of-its-kind.”

The grant will prioritize areas where national surveys find high cannabis consumption but have little to no access to cannabis retailers, the DCC said in a press release. The program “seeks to incentivize local best practices by prioritizing programs that support equity operators and utilize existing licensing and permitting practices,” the agency said.

In a statement, DCC Director Nicole Elliott called expanding access to retail cannabis sales “an important step towards protecting consumer safety and supporting a balanced market.”

“The retail access grant program ultimately seeks to encourage legal retail operations in areas where existing consumers do not have convenient access to regulated cannabis.” — Elliott in a statement

The DCC indicates that more than 60% of California jurisdictions do not offer local licensing for adult-use cannabis sales and that the grants “can provide much-needed assistance to cities and counties.”

The DCC said that of the 33 counties in California that currently do not offer cannabis licenses, there are nine where the rates of cannabis consumption are substantial despite only having zero or one licensed retailer. In four of the nine counties – Butte, Glenn, Madera, and Sutter – there are no licensed cannabis retailers.

Localities can use the funds to support equity applicants and licensees, for environmental reviews, permitting expenses, and personnel costs. The agency will initially award up to $10 million in grants by June 20, 2023 and after June 30, 2023, an additional $10 million will be available to previous awardees as they issue licenses.

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Washington Senate Passes Ban on Cannabis-Related Hiring Discrimination

2/23/2023

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The Washington Senate voted 28-21 in favor of a bill on Wednesday that would block employers in the state from refusing to hire someone because they tested positive for cannabis on a drug test, the Seattle Times reports.

The bill’s sponsor, Sen. Karen Keiser (D), introduced a similar bill last year but the proposal never reached the floor for consideration. The proposal moves next to the Washington House of Representatives.

The Senate-approved ban would not apply to positions where on-duty impairment could carry “substantial risk of death,” such as in the airline and aerospace industries. Other positions that are exempt from the ban include those which require federal background checks or security clearances, the report said. Additionally, the bill only applies to drug tests performed during the hiring process and would not affect employers’ ability to drug test current employees.

“If your employer wants to test you every week after you’re hired, they’re still able to do that. This is simply opening the front door of getting into a job. Because too many people who see that they have to take a drug test to even apply, don’t even apply.” — Keiser, via the Seattle Times

Sen. Derek Stanford (D) — one of the bill’s co-sponsors — told KOMO News that, ”When people are using legal substances like cannabis away from work, we don’t think that should be a barrier to just applying for the job.”

In 2019, Nevada became the first state to prohibit employers from drug testing applicants for cannabis use during pre-employment.

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Vermont Cannabis Sales Reach $5.7M in January

2/23/2023

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Cannabis sales in Vermont reached $5.7 million in January, according to Agency of Administration data released last week. The state collected more than $1 million in tax revenues from cannabis sales.  

Vermont collected $799,102 from the 14% excise tax on cannabis sales and $342,472 from the state’s regular 6% sales tax. Under the state’s adult-use law, cannabis excise tax revenues are used to “backfill” any deficit in the Cannabis Control Board’s budget and, after that, 70% is sent to the state’s general fund with 30% earmarked for substance misuse and prevention programs. Cannabis-derived sales taxes are used for after-school and summer education programs.      

There are currently about 40 licensed cannabis retailers in the state. 

The state legislature’s Joint Fiscal Office estimated that annual cannabis-derived taxes would range from $3.3 million to $9.1 million, according to a Seven Days report, which equates to monthly excise tax revenues between $275,000 and $758,000.  

The Cannabis Control Board projects the state will make about $16 million from the cannabis excise tax in its first full fiscal year, WCAX reports. According to state data outlined by Heady Vermont, retail cannabis sales surpassed $6 million last year. 

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Connecticut Bill Would Create Cannabis Ombudsman Position

2/23/2023

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A bill proposed in Connecticut would create the position of Cannabis Ombudsman – an independent person that would serve as a liaison between medical cannabis patients and the state to address concerns, NBC Connecticut reports. The move comes about a month after adult-use cannabis sales commenced in the state which has caused complaints among registered patients of reduced choices for medical cannabis products.

House Majority Leader Jason Rojas (D), who sponsored the legislation, said the measure would improve quality and safety for medical cannabis patients.

In a statement, Department of Consumer Protection Commissioner Michelle Seagull said the agency is “aware some patients have expressed concerns regarding the availability of certain products following the opening of the adult-use market and the increase in the allotment for medical marijuana patients to five ounces per month.”

“The department is monitoring and evaluating the information in the seed-to-sale tracking system, complaints, and the medical preservation plans, as well as communicating with the producers as necessary.” — Seagull in a statement

Medical Cannabis Patient Advocate Lou Rinaldi told NBC Connecticut that oversight in the state “so far has largely not been in service to patients.”

“They do not have a voice in the program,” he said.

The proposal is currently in the Connecticut– House and Senate committees on General Law.

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North Carolina Medical Cannabis Bill Passes First Senate Committee

2/22/2023

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The North Carolina Senate Judiciary Committee on Tuesday approved a proposed medical cannabis bill, moving it next to the chamber’s Finance Committee, the News & Observer reports. It’s the first vote for the measure that was introduced last month. 

The legislation would allow patients with qualifying conditions to access medical cannabis in the state. The qualifying conditions list includes cancer, epilepsy, HIV, AIDS, amyotrophic lateral sclerosis (ALS), Crohn’s disease, sickle cell anemia, Parkinson’s disease, post-traumatic stress disorder (PTSD), multiple sclerosis, cachexia or wasting syndrome, severe or persistent nausea in a person who is not pregnant that is related to end-of-life or hospice care, or who is bedridden or homebound because of a condition, terminal illness when the patient’s remaining life expectancy is less than six months, and conditions resulting in the individual receiving hospice care, according to the bill text. 

State Sen. Bill Rabon (R), one of the bill sponsors, told the News & Observer that the legislation’s goal “is to only make changes to existing state law that are necessary to protect patients and their doctors from criminal and civil penalties and would not intend to change current civil and criminal laws for the use of non medical marijuana.” 

The Judiciary Committee amended the measure to allow law enforcement agencies to contact the Department of Health and Human Services to confirm a medical cardholder’s identity if they are unable to do so through the registry system.  

Last year, a medical cannabis bill passed the Senate with bipartisan support but died in the House.  

If approved by the Finance Committee, the bill would move next to the Senate Rules and Operations Committee.  

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Connecticut AG Sues Over Delta-8 Products that Mimic Child-Friendly Products

2/22/2023

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Connecticut Attorney General William Tong is suing five retailers over the illegal sale of delta-8 THC products that mimic products that appeal to children under the state’s Unfair Trade Practices Act. Tong is also sending letters to all vape products retailers in the state warning them of selling such products without the proper license. 

“If you offer delta-8 THC products for sale in your establishment that exceed .3 percent THC on a dry weight basis and you do not hold such a license, you are in violation of Connecticut law. For your information, we have included below photographs of products that were recently purchased from retailers in Connecticut that purport to contain delta-8 THC. The sale of such products may expose you to criminal and civil liability. Please remove any such products from your shelves and dispose of them immediately.” — Tong in the letter 

In a statement, Tong said that, “Any unlicensed Connecticut retailer selling delta-8 THC products that purport to contain high levels of THC is breaking the law and may be subject to both criminal and civil penalties.” 

Tong said the letter and lawsuits follow an undercover investigation that “revealed widespread sale of untested, unregulated, delta-8 edibles mimicking popular youth snacks” and that the five retailers served with lawsuits “offered some of the most egregious look-alike edibles posing the worst risks for accidental youth poisoning.”

The attorney general’s investigation uncovered products that mimicked popular candies and snacks such as Skittles, Warheads, Lifesavers Gummies, Nerds Rope, Gobstopper Chewy, Sour Patch Kids, Airheads, Fritos, Rice Krispies, and Cocoa Pebbles.

The lawsuits were filed against Raheem Mini Mart and AZ Smoke Shop and Wireless in Manchester, Smokers Paradise and 7 Puff in East Hartford, and Anthony’s Service Station Inc. In Plainville.

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Iowa Democrats Unveil Adult-Use Cannabis Legalization Bill

2/22/2023

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Iowa House Democrats on Tuesday unveiled legislation to legalize cannabis for adult use, Iowa Capital Dispatch reports. Lawmakers, however, stopped short of formally introducing the measure which would legalize cannabis products with up to 500 milligrams of THC for adults 21-and-older. 

House Minority Whip Rep. Lindsay James said the proposal “will keep Iowans safe” while preventing tax dollars from “going to neighboring states.” She said the measure would also “improve the quality of life for Iowans suffering from chronic illnesses and stop wasting state resources to unfairly punish Iowans.”  

Iowa is bordered by Illinois which legalized adult cannabis use in 2020 and Missouri where adult-use cannabis sales launched this month.   

Iowa does have a low-THC medical cannabis program. In 2022, medical cannabis sales in the state reached $10 million. 

The legalization bill includes a 10% excise tax on cannabis sales and counties would have the option of imposing an addition 1% surcharge on state and local taxes derived from cannabis sales. Under the measure, cannabis excise taxes would be used for education, mental health services, and local public safety. 

The measure faces an uphill battle as Republicans control both legislative chambers and the governor’s office. Last year, Rep. Steven Holt, chair of the House Judiciary Committee, said he would “never support” cannabis legalization, according to the Capital Dispatch. 

A poll released in 2020 found 53% of Iowans support the reforms. 

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Is Spain Likely to Pass Cannabis Reforms In 2023?

2/22/2023

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Editor’s note: This editorial was contributed by Johnny Green, Media and Content Director for the International Cannabis Business Conference.

Cannabis reform is on the move across the globe, with the European continent being particularly ripe for adult-use cannabis legalization right now. It is no secret that lawmakers in Germany are pushing for legalization and that a measure is expected to be formally introduced in the first quarter of this year. When that happens, it will likely set off a cannabis reform butterfly effect in many countries across Europe. Will that extend to Spain?

Spain is home to one of the best cannabis communities on earth, with Barcelona in particular serving as the social cannabis use capital of the world. You will be hard-pressed to find a better place on the planet to be a cannabis consumer than in Spain, with hundreds of private cannabis clubs operating in a legal grey market. However, the current situation in Spain has yielded a populace that is seemingly complacent about cannabis reform, and that has historically complicated legalization efforts.

What Is The Current Status Of Cannabis Policy In Spain?

Cannabis policy in Spain is unique in many ways, with the current approach to cannabis regulation being very limited despite commerce being so commonplace. Private cannabis activity is not prohibited in Spain per se, which is why private cannabis clubs have become so popular. Yet it’s a situation that is not likely sustainable and it would greatly benefit consumers, patients, entrepreneurs, investors, and taxpayers if Spain updated its cannabis laws and regulations.

Cannabis reform efforts in Spain are set to be a very popular topic at the upcoming International Cannabis Business Conference in Barcelona, taking place on March 9.

Attorney Bernardo Soriano Guzmán, from the leading cannabis firm S & F Abogados, will serve as the moderator for the ‘Squaring The Circle Of Industrial Hemp In Spain’ panel at the event. I recently reached out to Bernardo Soriano Guzmán leading up to the conference to get the real scoop about what is going on in Spain.

“During this legislative term, four laws have been presented in the Congress and Senate to regulate adult-use cannabis. One of them has been drafted by S&F lawyers along with other collaborators. A law that fully regulates the production and distribution cycle of cannabis and non-psychoactive cannabis. Despite this intense legislative activity, none of the laws currently have the necessary majority for approval. So, without a doubt, this electoral year that we begin, the regulation of cannabis will be an important point in the political programs and possible electoral alliances for the formation of the next government of Spain, as has happened in Germany in 2021 with the coalition of the traffic light.” — Bernardo Soriano Guzmán, in a statement

Medical Cannabis In Spain

Medical cannabis is already legal in Spain to some degree, and medical cannabis industry licenses are already on the books. With that being said, the regulated medical cannabis industry in Spain is focused on exports and research. Updated domestic safe access provisions and regulations are desperately needed, and fortunately, various lawmakers and advocates are pushing for them.

“Last year 2021, a resolution in the form of a report of conclusions was approved in the Congress of Spain to give access to patients of medicinal cannabis,” Guzmán said. “This report is pending to be implemented once the Spanish Medicines and Health Products Agency (AEMPS) proposes how to do it. The regulation proposed is quite restricted to strictly pharmaceutical channels, with flowers of cannabis not having a predominant role, rather finished products and magistral formulas.”

“Self-cultivation for medicinal use is also not allowed. Additionally in Spain for years licenses for research and production of medicinal cannabis have been granted, a total of 21 licenses having been granted to date December 2022.

In terms of industrial hemp: “The position of the Spanish authorities is very restrictive beyond the classic industrial uses of hemp (production of fiber and seeds). The use of hemp flowers is prohibited, even for the extraction of unregulated cannabinoids (Cannabidiol, cannabigerol, cannabidiol…),” Guzmán said.

“This situation has generated a multitude of proceedings in the courts that have made the Supreme Court recently confirm in a ruling the restrictive vision of the Spanish authorities. This situation clashes quite with the wave of positive changes regarding hemp that are taking place in Europe, especially as a result of the position of the Court of Justice of the European Union. Countries such as France which recently, in a completely contrary line to that of the Spanish authorities, has finally authorized the use of hemp flowers for all uses,” Guzmán concluded.

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SC Labs Expands into Southern California, Opening a New Cannabis Testing Lab in Los Angeles

2/21/2023

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SC Labs, the leading cannabis and hemp testing company, has officially opened its new lab in Southern California.

The 12,000+ square foot facility, located in the Van Nuys neighborhood of Los Angeles, conducts both R&D and compliance cannabis testing – similar to its Santa Cruz counterpart – providing faster turnaround times to process samples for customers south of Santa Barbara. The new lab offers the full suite of California compliance testing (potency, pesticides, heavy metals, residual solvents, microbials, water activity, filth and foreign material) as well as terpenes. Shelf stability testing will soon be available in the lab to help customers determine the expiration date of their products. By opening this new state of the art facility, SC Labs will deliver added testing capacity to meet the needs of Southern California’s regulated cannabis market.

Similar to SC’s operations in Santa Cruz, the new lab will maintain the same technology stack (Laboratory Information Systems and the SC Client Services Portal) and chemometric reporting for customers conducting both Cannabinoid and Terpenoid assays.

“We are thrilled to bring more high-quality testing to a wider swath of the Golden State,” said Jeff Journey, CEO of SC Labs. “With this expansion, we are doubling down on California as a leading market that we believe has the regulatory oversight to enforce proper testing requirements. We’re excited to get to work in Southern California supporting even more customers with the high-quality, accurate testing they need as this market continues to mature and grow.”

“Our customers have been asking us to open a Southern California lab for years and we’re excited to finally deliver on that ask,” added Jeff Gray, Co-Founder and Chief Innovation Officer of SC Labs. “This new state of the art lab more than doubles our California testing capacity, enabling us to do more R&D, and more importantly, provides ample and excess testing capacity for all of our customers.”

Combined U.S. medical and recreational cannabis sales are estimated to be upwards of $52.6 billion by 2026 – and California is currently the largest legal cannabis market in the world. In regulated cannabis markets like California, products for sale are required to undergo a series of tests by a state-accredited lab to help ensure that products are safe to consume and accurately labeled. SC Labs is allowing its customers to meet those requirements and ultimately help them meet the demand in the market.

In addition to L.A., SC Labs currently has cannabis testing labs in Santa Cruz, CA., Colorado, Michigan, and Oregon. With this growth, SC Labs is hiring for both California locations.

About SC Labs
SC Labs is the nation’s leading cannabis and hemp testing laboratory with more than 12 years of experience helping companies deliver safe products to the emerging marketplace. Focused on establishing new testing standards and methodologies designed for speed, efficiency, and safety, SC labs helps its clients navigate complex regulatory requirements while providing them unmatched scientific expertise and state-of-the-art resources. SC Labs is licensed and accredited in California, Oregon, Colorado, and Michigan with a growth strategy designed to serve quality cannabis and hemp brands across the nation and around the world. To learn more, visit SCLabs.com.

 

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Texas Bill Seeks to Allow Municipalities to Legalize Cannabis

2/21/2023

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A bill proposed in Texas would allow municipalities to legalize cannabis within their borders and direct the state Commission of Licensing and Regulation to adopt all necessary rules for the administration and enforcement of this bill, including licensing, regulation, testing standards, and transportation. 

Under the measure, adults 21 and older would be allowed to possess and transport up to 2.5 ounces of cannabis and up to 15 grams of concentrate. At their homes, adults would be allowed to possess or process no more than 10 ounces of cannabis and if any more than 2.5 ounces is in a person’s home, the excess must be securely stored. 

In a statement announcing the legislation, State Rep. Jessica González (D) said the bill would allow “local communities to make the best decision for themselves regarding cannabis legalization.” 

“Twenty-one states in America have legalized cannabis, and 27 states have decriminalized the use of cannabis. In a recent study, a majority of Texans supported some form of legalization of cannabis use. While Texas has made progress with the Compassionate Use Act, we have been left behind on a potential revenue source that would increase investments in public education, stop unnecessary arrests for cannabis possession, and create jobs in our state.” — González in a press release 

The measure would impose a 10% tax on cannabis products and direct the revenue to cannabis regulation (10%), testing and quality control (10%), to participating local governments for oversight purposes (20%), with the remainder earmarked to the Foundation School Fund. 

During the midterm elections, five Texas cities – Denton, Elgin, Harker Heights, Killeen, and San Marcos – voted to decriminalize cannabis possession within their borders. Last year, voters in Austin passed similar reforms. 

 

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Vermont Cannabis Regulators Investigating Curaleaf’s Ties to Russian Oligarch

2/21/2023

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Cannabis regulators in Vermont are investigating the links between Russian oligarch Roman Abramovich and multi-state cannabis operator Curaleaf, VT Digger reports. The inquiry follows a report by Vice that found Abramovich invested $130 million and provided $194 million in loans to US cannabis firms between 2016 and 2018, with Curaleaf as the main beneficiary.  

In Vermont, Curaleaf owns Phytocare Vermont in Bennington and Vermont Patients Alliance in Montpelier. 

According to the Vice report, which come from the leak of 30,000 files from Cyprus-based accounting company Meritservus, of which Abramovich was a customer, onto the non-profit Distributed Denial of Secrets website last month, Abramovich allegedly invested $225 million into Curaleaf, then known as Palliatech, between 2015 and 2017 via a British Virgin Islands-registered company called Cetus Investments. Abramovich was allegedly referred to by Cetus staff as “Mr. Blue.” Abramovich owns Chelsea Football Club which is nicknamed the Blues. 

Vermont Cannabis Control Board chair James Pepper told VTDigger that he was unaware of the Vice report but following a VTDigger inquiry, he instructed board staff to contact Massachusetts and Connecticut to find out what they had learned. Pepper told VT Digger that Curaleaf had not mentioned Abramovich when it applied for a license to operate in Vermont’s adult-use cannabis market.  

Applicants in Vermont are required to disclose individuals with an ownership interest of 10% of more and that being dishonest could lead to a revocation of a license, Pepper told VT Digger. 

A Curaleaf spokesperson has previously told Barron’s that Abramovich “is no longer a creditor to or investor in Curaleaf.” 

Representatives for Phytocare and Vermont Patients Alliance have not commented on the allegations, while Curaleaf spokesperson Stephanie Cunha told VT Digger that the company has “fully complied with all requirements regarding disclosure of our ownership and financing in the state of Vermont.”   

According to the Curaleaf website, the company operates in Arizona, Connecticut, Florida, Illinois, Maine, Maryland, Massachusetts, Michigan, Nevada, New Jersey, New York, North Dakota, Ohio, Oregon, Pennsylvania, Utah, and Vermont.  

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First-of-Its-Kind Automated Cannabis Vending Machine Debuts in Aurora, Colorado

2/21/2023

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A first-of-its-kind cannabis vending machine is online in Aurora, Colorado, 9News reports. The ACE – Automated Cannabis Experience – was installed by Boulder-based company Terrapin at its retail dispensary.

The machine, was developed in partnership with BMC Universal Technologies, and is the first fully-automated cannabis vending machine on the market to fully package, live label, and dispense cannabis products while meeting or exceeding compliance requirements, the report says. Customers first scan and verify their ID, follow the instructions on the screen and pay to complete the purchase. Customers can watch the packaging process through a window in the kiosk.

Terrapin CEO Chris Woods told 9News that the ACE illustrates the “increasingly mainstream nature of the cannabis space.”

“ACE not only improves sales but also provides unique benefits to consumers, including faster checkouts, expanded education, and the ability to engage in multiple languages. As the cannabis industry evolves, companies must pivot to meet changing consumer preferences and demands. ACE offers a genuinely game-changing way for consumers to purchase cannabis.” — Woods to 9News

Terrapin said the machine will allow faster checkouts, allow budtenders to provide more consultation to other customers, and can be programmed in multiple languages.

Trevor Vaughn, manager of licensing for the city of Aurora, said the city is “happy to support innovation in business and appreciate Terrapin for choosing Aurora to implement” the machine, which he described as “impressive.”

“Our highest priority is public safety,” he said, “and Terrapin acknowledges this with their implementation of this retail option by adding an automated layer of safeguards to human verification to ensure that only those legally allowed to consume cannabis are purchasing those products.”

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Study: Cannabis Has Positive Impact on Sexual Quality

2/20/2023

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A study published last month in the Journal of Cannabis Research suggests that cannabis use has a positive impact on sexual quality. In the study, an online survey of 811 people, more than 70% of respondents reported increased sexual desire and orgasm intensity with cannabis use and more than 40% of the women surveyed indicated an “increased ability to have more than one orgasm per sexual encounter.” 

The majority of study participants identified as female (64.9%), white (78.9%), and college-educated (80.1%). Twenty-three percent of the participants identified as LGBTQ and 73.7% of the participants said they were in a monogamous sexual relationship.

A majority of participants also indicated that cannabis enhanced their pleasure while masturbating (62.5%) and that cannabis enhanced their sense of taste (71.9%) and touch (71.0%). Another 87.7% of respondents reported slight-to-significant increases in relaxation during sex when using cannabis. 

“This study updates the current literature on cannabis and sexuality and provides implications for improving sexual quality. Medical implications of this study include the possible use of cannabis for treating sexual dysfunctions, especially within women.” — “The influence of cannabis on sexual functioning and satisfaction,” Jan. 20, 23, Journal of Cannabis Research 

The researchers note that previous studies have found more than 90% of men report usually experiencing orgasm during sex, while less than 50% of women regularly experience orgasm during intercourse, and just 6% of women reported always experiencing an orgasm during sex. 

A study published last year found similar results, concluding people between the ages of 18 to 30 who use cannabis and alcohol may have better sexual functions and orgasms than those who abstain from the substances.  

A 2017 study found that individuals who consume cannabis have an average of about 20% more heterosexual sex than those who don’t. That study by the Stanford School of Medicine found women who consumed cannabis daily had sex an average of 7.1 times during the previous four-week period, compared to 6 times for women who didn’t consume cannabis in the last year. For men, the rate was 6.9 percent for consumers, compared to 5.6 percent for those who abstain. 

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Kentucky Bill Would Outlaw Delta-8 THC Products

2/20/2023

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A bill introduced last week in Kentucky would ban delta-8 THC products in the state, the Louisville Courier-Journal reports. Kentucky Hemp Association President Katie Moyer told the Journal that if the bill is approved it would “probably end Kentucky’s hemp industry as we know it.” 

“We are at the point where Kentucky (hemp) farmers, processors and retailers are grasping at straws, trying to sell anything that we possibly are allowed to sell.” — Moyer to the Courier Journal 

The measure is nearly identical to a bill proposed in the state last year that passed the Senate but died in the House. One of the bill’s co-sponsors, Rep. Rebecca Raymer (R), told the journal that she has concerns over the cannabinoid due to questions over potential “long-term side effects.” 

“As a health care provider and a mother, I’m hopeful this bill will lead to meaningful conversations about these substances and their impact on minors and public health,” she said in a statement to the Courier-Journal.

Moyer said the legislation could lead to a ban on other full-spectrum hemp products, including non-intoxicating ones.  

Gov. Andy Beshear (D) has said he would oppose a delta-8 ban. In his executive orders issued last fall that allow some people to acquire medical cannabis products out-of-state and possess them in Kentucky, he specified that delta-8 products must meet certain rules, including packaging and labeling requirements. 

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New Mexico Bills Would Ban Edibles That Could Appeal to Children & Create Cannabis Education Plan

2/20/2023

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Two legislative proposals in New Mexico would tweak the state’s cannabis laws, including a ban on edibles that could appeal to children, the creation of educational materials for teachers to identify cannabis products and when students consumed them, and ad campaigns aimed to prevent children from using cannabis, KOB4 reports.  

The bill sponsored by Rep. Andrea Reeb (R) would prohibit edible cannabis products from mimicking the design or style of other products that are safe for children, including a ban on cartoon characters, celebrities, or other visuals commonly used to advertise to children. Andrew Vallejos, Cannabis Control Division acting director, said those rules already exist under the state’s legalization law but that the proposal would enhance those regulations. 

“It’s little tweaks like that, that the industry didn’t, you know, that nobody saw the first time around. So you don’t see until you implement it. Any areas where the Legislature can clarify legislative intent, we welcome it.” — Vallejos to KOB4 

The education and advertising bill, also sponsored by Reeb comes after elementary school students in the state were hospitalized after ingesting cannabis-infused candies last April.  

The packaging bill was unanimously approved by the House and Human Services Committee last week. The education measure is in the same committee.  

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Hawaii Senate Committees Advance Cannabis Legalization Measure

2/17/2023

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Two Hawaii Senate committees on Thursday advanced a bill to legalize cannabis for adult use, KHON2 reports. The measure passed out of the Health and Human Services Committee 2-1 with two excused, and out of the Commerce and Consumer Protection Committee 3-1 with one excused. 

The measure would allow retail sales to adults 21-and-older and impose a tax on those sales. Medical cannabis sales would be exempt from the cannabis excise tax. The legislation would also create the Hawaii Cannabis Authority and regulators would have to adopt industry rules by Dec. 1, 2024, begin the application process by Jan. 31, 2025, and issue licenses by Mar. 30, 2025. 

Under the measure, adults would be allowed to legally possess up to four ounces of cannabis. 

Sen. Joy San Buenaventura (D), chair of the Health and Human Services Committee, said the reforms would “bring about not just a triumph for individual liberties and reform of the criminal justice system, but it would also create prospects for fresh sources of income and economic advancement in the state.”  

Sen. Brenton Awa (R), a member of the health committee, voted “yes” but “with reservations” due to his concern about high dispensary prices and the bill allegedly favoring commercial growers over small farms. 

“The dispensaries are the problem. You go into a dispensary, I don’t know who could afford it,” Awa said during his remarks, according to a Honolulu Civil Beat report. “To me when you legalize marijuana – if I got to farm, and I’m a grower, I should be able to sell marijuana. Not, I got to go to a dispensary, get a permit and deal with all this stuff.”  

The measure moves next to the chamber’s Judiciary Committee and Ways and Means Committee. 

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Senate Panel Advances Bill Requiring Medical Cannabis Clinical Trials for Veterans

2/17/2023

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The U.S. Senate Committee on Veterans’ Affairs on Thursday advanced a measure that would require Veterans Affairs (VA) officials to hold clinical trials investigating medical cannabis for the treatment of chronic pain and post-traumatic stress disorder, Military Times reports. The approval marks the first time medical cannabis-related legislation has been approved by the Senate panel. 

In a statement accompanying the legislation’s introduction last week, committee Chairman Jon Tester (D) said it “ensures VA is listening to the growing number of veterans who find critical relief from alternative treatments like medicinal cannabis, while working to empower veterans in making safe and informed decisions about their health.”   

“Our nation’s veterans deserve options when it comes to treating the wounds of war, which is why VA needs to have a better understanding of how medicinal cannabis plays a role in their healing.” — Tester via Military Times 

If approved by Congress, the bill would authorize VA to implement a research plan into medical cannabis to investigate how its use could impact the quality of life for veterans. The proposed clinical trials would not only look at the impact of cannabis on specific ailments but also the effects of different forms, potencies, and methods of cannabis delivery. The bill does not specify how many veterans would be involved in the research but calls for a “large scale” study. 

Sen. Dan Sullivan (R-Alaska), the bill’s sponsor, noted in a statement that “thousands of veterans” are already using medical cannabis under state-approved programs.  

“…But we don’t yet have the data we need to understand the potential benefits and side effects associated with this alternative therapy,” he said. 

In a statement, Jeremy Butler, CEO of Iraq and Afghanistan Veterans of America (IAVA), said that 80% of the organization’s members supported the research of cannabis for medical use. 

“Since 2017, IAVA has made it one of our top priorities to empower veterans who are calling for the medicinal use of cannabis,” he said in the statement. “…Veterans consistently and passionately have communicated that cannabis offers effective help in tackling some of the most pressing injuries we face when returning from war.” 

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Oklahoma AG to Prosecute Attorney Accused of ‘Ghost Owner’ Medical Cannabis Scheme

2/17/2023

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The Oklahoma Attorney General’s office is taking over the prosecution of the attorney accused of helping set up illegal cannabis businesses under the state’s medical cannabis program, KFOR reports. Matt Stacy is facing 13 charges related to the scheme in which he is accused of assisting nearly 400 illegal grow operations as so-called “ghost owner.”  

Oklahoma Attorney General Gentner Drummond told KFOR that Stacy’s role was not just “enabling” but that the attorney is “culpable of the crimes that were committed by his clients.”  

“He was in a position of authority and power and influence. And those are the people that we need to make an example of perfect. … His impact on the state of Oklahoma is remarkable. He’s basically been the consigliere to almost 400 illegal grow operations, which covers multiple counties. He needs the full force of the law against him.” — Drummond to KFOR 

The Oklahoma Bar Association told KFOR that Stacy remains in “in good standing” with the organization but Lori Rasmussen, director of communications for the association, said, “It is always concerning when an Oklahoma licensed attorney is charged with a crime.” 

In a statement, Stacy’s attorney, Joe White, denied that his client had broken any of the state’s laws.  

“On behalf of our clients whose operations fall under the medical marijuana laws and regulations, our firm was in regular communication with the [Oklahoma Bureau of Narcotics and Dangerous Drugs] for three years discussing the agency’s ever-changing interpretations of the statutes and rules that must be met for OBNDD licensure,” the statement says. “We have been and will continue to be extremely transparent and adaptable based on our understanding of the law and current regulations, even when we are in fundamental disagreement with some aspects of the agency’s interpretation and implementation of the licensing requirements.”  

White added that they “believe strongly in the Constitutional and statutory lawmaking process” and “have always worked within the bounds of the law, as it is written when advocating and representing our clients.”  

“This industry and the professionals that support it have been left to operate in a regulatory environment that is inconsistent and arbitrary,” White said. “Anytime we have taken a legal position or approach that encountered resistance we have asked for agency clarification, most times without response. Nonetheless, we have been and will continue to be transparent in all our interactions with Oklahoma’s medical marijuana regulatory agencies.” 

Last summer, two other attorneys were also charged with crimes related to setting up ghost owners for medical cannabis operations in the state. 

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Virginia Lawmakers Block Bill to Set Up Cannabis Retail

2/16/2023

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A Virginia House committee on Tuesday tabled the bill to set up the state’s adult-use cannabis industry, effectively killing it for this year’s session, Richmond BizSense reports. The Republican-led subcommittee considering the measure voted 5-3 to “pass by indefinitely.”

Earlier this month, two separate House panels rejected bills to move the state closer toward adult-use sales. Virginia lawmakers passed adult-use cannabis reforms in 2021 – when both chambers of the legislature and the governor’s office were controlled by Democrats. The laws have since faced pushback as Republicans made gains in both chambers in 2022 and Virginians elected Republican Glenn Youngkin as governor.

The measure tabled by the subcommittee was sponsored by Sen. Adam Ebbin (D) and would have allowed the Virginia Cannabis Control Authority to begin issuing licenses for adult-use cannabis businesses on July 1, 2024.

“It is legal to possess small amounts of cannabis, it is legal to grow your own cannabis. Yet we are kind of dragging our feet on establishing a retail market that could provide hundreds of millions of dollars in tax revenue, could provide a tested product for adults and could be kept out of the hands of children.” — Ebbin via BizSense

The measure passed the Senate on a 24-16 vote last week.

Currently, adults 21 and older in Virginia can possess up to an ounce of cannabis, grow up to four plants, receive cannabis as a gift, or buy it from a medical dispensary.

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Halo Infusions Announces Plans for Arizona’s Largest Dedicated Cannabis Kitchen

2/16/2023

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Tucson, AZ, February 16th, 2023 – Halo Infusions & Extractions, LLC (Halo Infusions), southern Arizona’s largest cannabis-infused product manufacturing operation, has announced plans for construction of the state’s largest dedicated infusion kitchen, with expectation of full production by mid-2023. The new, $2.5 million state-of-the-art kitchen will initially provide more than 7000 sq ft of manufacturing space, supporting seven separate production lines, and thousands of square feet of refrigerated storage and distribution space.

Only a year ago, as part of a $30M landmark sale of its retail and cultivation licenses, Halo Infusions spun off its infused product manufacturing business. “Selling the licenses enabled us to focus on our first true love – infused products,” said Murray Stein, CEO of Halo Infusions. “Without the distraction of the demands of retail, we felt that the ten years of infusion experience we’ve gained would prepare us for even greater opportunities.”

“This is really the original vision of our founders,” Stein related. “We are software, electronic, and optical engineers by training and vocation, so it’s easy to appreciate why we’re so formal and process-driven. We’ve always believed that we could create better infused products by applying the disciplines of science, engineering, and manufacturing that we learned elsewhere,” added Stein.

The new Halo Infusions kitchen will help realize those goals on a scale not possible until now. Plans include new automated gummie and candy lines, multiple beverage production systems, and multiple large ovens and freezers. “We’ve designed the space to employ an agile reconfiguration model that allows us to shift production lines based on our real-time needs and those of our customers,” remarked Brandon Hamm, Infrastructure Manager at Halo Infusions. “Every one of these production lines has a minimum of three stages, or as many as ten when we include product and lot packaging. Accomplishing this accurately requires that our production, packaging, and quality teams work together effectively. Scaling that model is our mission.”

Halo Infusions’ brands are among the longest available in the Arizona market and include Aunt Ellie’s, Cannabliss, Canna Confections, Chronic Health, and Pure & Simple. Soon to be released is a suite of canine pet products under the Canine CBD Therapy brand. “Our unique whole-plant approach using RSO extraction methodologies allow us to retain more of the plant’s compounds than many other approaches,” said Chad Johnson, Halo Infusions’ Infusion R&D Manager.

“Our infusion model relies on capturing minor cannabinoids, terpenes, and even flavanoids. We genuinely believe that the synergy between all of the cannabinoids and other compounds in the plant is lost when over processed or refined. Our infusion model minimizes that loss for a better product and experience,” he added.

Opportunities in the Arizona cannabis market exist are limited by the relatively small number of dispensary and cultivation licenses available through the state’s program. “Every infusion kitchen has to operate under a state-issued license.” added Hamm. “There is a lot of responsibility that comes with operating under that license. Maintaining compliance with Arizona’s strict rules requires dedicated staff and expertise. Semi-annual inspections of dispensary, cultivation, and kitchen operations determine how well the rules are adhered to, and not doing so can mean significant fines or worse. Arizona’s rigorous cannabis product testing program, now in its third year, places additional burden on operators. It is all about safety,” he said.

“We have a staff of five Quality Management & Quality Control staff, and we are still super busy,” stated Hamm. The team helped formalize a system that documents processes, procedures and responsibilities for achieving regulatory compliance, product safety and meeting customer expectations. “Every day we remind ourselves of the importance of the safety of our products. Patients and adult users alike look for consistency and quality. They don’t have to worry about the product safety because we do,” added Hamm.

While Arizona may have a limited number of licenses, it has not restricted the proliferation of new brands. “There are well over seventy-five individual infused product brands in Arizona, with more than thirty making gummies,” offered Suzy Tracy, Corporate Marketing Manager for Halo Infusions. “Many of these businesses are challenged by limited product space and operations staff. They are also at the whim of the license holder, who may not want the risk of an operation they do not fully control, using their license.” she added.

Another key factor affecting the Arizona cannabis market is the impact of multi-state operators. “MSOs like Curaleaf, Verano, and Harvest (now Trulieve) obtained their in-house brands through acquisition of the dispensary licenses they were associated with,” commented Tracy. “And while some of the brands and their products are decent quality, many are not”, Tracy added. “So we have a lot of independent brands in Arizona, some struggling in-house brands with multiple dispensary operators, and many small infusion companies hoping to build market share.”

As Halo Infusions began looking to the future, they realized that sharing their expertise and operations resources represented the greatest opportunity of all. “Our partners got together and decided that our greatest contribution to the infused product market would be to help others excel as well,” stressed Linda Bell, CFO for Halo Infusions. “Our new kitchen will enable us to do several exciting things we couldn’t before. For example, we’re planning a white label operation for smaller operators to help establish and build their own brands. And we expect to provide manufacturing facilities and support to enable independent – even currently out-of-state – brands to better penetrate this market,” Bell added.

“Using our new kitchen, our well-established current good manufacturing practices, our comprehensive testing program, and our state-wide distribution capabilities, we expect to become a real catalyst for maturity in our market,” said Bell. “It’s going to be a terrific ride.”

For additional information, the media is advised to contact:
Suzy Tracy
Halo Infusions & Extractions, LLC
Suzy.Tracy@haloinfusions.com
520-465-4966

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