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Ayr Wellness Hosting Expungement Clinics in Five States Next Weekend

2/16/2023

Multistate cannabis company Ayr Wellness is holding expungement clinics in five states on February 25 and 26. The Changing Legacies series is part of the company’s Corporate Social Responsibility Program and the company is partnering with community and non-profit organizations on the endeavor.

The event in Hartford, Connecticut on February 25, in partnership with Councilwoman Tiana Hercules, Lady Jane, UConn Law, and Rooted Community Education Group, will be held at Capitol Community College from 10:00 a.m. to 2:00 p.m. The Massachusetts event on February 25, in partnership with MassCultivatED, will be held from noon to 2:00 p.m. at the Connexion United Methodist Church in Somerville.

In New Jersey, the event will be held in partnership with Blaze Responsibly on February 25 at 1579 Irving Street, Rahway from 10:00 a.m. to 2:00 p.m. In New York, the event is a partnership with Center for Community Alternatives which will be held at BKLYN Commons on Flatbush Avenue in Brooklyn from 1:00 p.m. to 3:00 p.m. The Pennsylvania clinic is in partnership with Cannabis Noire and will take place on February 25 at Cedar Works, located at 4919 Pentridge Street, Philadelphia.

Participants must pre-register for the Connecticut and New Jersey events, while walk-ins are permitted at the Massachusetts, New York, and Pennsylvania clinics.

In a statement, Khari Edwards, head of Corporate Social Responsibility at Ayr Wellness, said the Changing Legacies program’s goal “is to empower those most harmed by the War on Drugs with a fresh start.”

“Despite shifting public sentiment in favor of cannabis and an ever-evolving legislative and regulatory landscape, far too many individuals continue to face significant barriers to housing, employment, social services and more because of non-violent cannabis convictions.” — Edwards in a press release

Each expungement clinic will provide attendees with access to legal services, connect individuals with re-entry and wrap-around programs and, where applicable, offer financial support for obtaining critical documentation and processing fees.

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Report: Half of Wisconsin Residents Live Within 75 Minutes of Out-of-State Dispensary

2/16/2023

A new report from the Wisconsin Policy Forum found that half of the state’s residents aged 21 or older (about 2.16 million people) already live within 75 minutes of an adult-use dispensary in a nearby state and another 30% live within an hour’s drive.

“As recently as November 2019, those numbers were zero. Both Michigan (2018) and Illinois (2019) have passed laws legalizing marijuana, with Michigan opening its first recreational dispensaries in December 2019 and Illinois stores debuting in January 2020. Since then, more than 100 locations in Illinois and 600 locations in Michigan have begun sales. Meanwhile, Minnesota lawmakers have legalized marijuana for medical purposes and appear poised to approve recreational use of the drug by the end of the year.” — Wisconsin Policy Forum, “Changing Midwest Marijuana Landscape Impacts Wisconsin,” February 2023

The report notes that Wisconsin lawmakers have yet to introduce any legislation this session to legalize cannabis for any purpose, and Gov. Tony Evers (D) and Democratic lawmakers have indicated they want to legalize both medical and adult-use cannabis but no movement on the reforms is possible without the support of at least some Assembly and Senate Republicans.

Cannabis possession remains a criminal act in Wisconsin except in Madison where individuals can carry up to 28 grams, the report says. Other cities, including Eau Claire, Green Bay, and Oshkosh, have all loosened restrictions on possession in recent years. In 2021, the Milwaukee County Board of Supervisors lowered the fine for the possession of under 25 grams of cannabis and for smoking in public both to $1. However, the report notes that law enforcement officers can still choose to enforce state cannabis laws, which carry much higher fines.

“So while marijuana is not available for legal purchase in Wisconsin, it is sold at retail locations less than a mile from the state border in East Dubuque and South Beloit, Illinois,” the report says. “Meanwhile, in some Wisconsin localities it is legal to possess and consume it – but it is still illegal to do so under state and federal law. This combination of factors makes for a complicated legal and regulatory environment.”

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IndicaOnline Launches Social Equity Program to Help Promote Inclusivity and Diversity in the Cannabis Industry

2/16/2023

IndicaOnline Launches Its Social Equity Program To Help Promote Inclusivity and Diversity in the Cannabis Industry

In an effort to repair the harm caused by the War on Drugs and create an equitable ownership and employment environment, companies in the cannabis industry are coming up with offers to eligible entrepreneurs. IndicaOnline is one of the first POS software providers in the cannabis industry to launch its own Social Equity Program by offering a one-year free subscription to its Elite plan for qualified Social Equity license holders.

IndicaOnline aims to give a head start to those who may have been previously disadvantaged due to the War on Drugs or their minority status.

To be eligible for the IndicaOnline Social Equity Program, candidates must meet one or more of the following criteria:

Currently not an IndicaOnline customer;
The store is owned by a member of an underrepresented group in the cannabis industry (such as a minority, woman, or service-disabled veteran);
The store owner has had previous marijuana convictions or has been negatively impacted by the War on Drugs before state legalization but does not have a history of selling to minors or a violent criminal record;
The store currently holds a social equity license issued by a state agency.

IndicaOnline offers a range of services and solutions for cannabis businesses. The Elite plan is its most comprehensive offering, designed to help cannabis businesses thrive and grow. A one-year subscription saves companies 6000$, a significant benefit to a newly created cannabis dispensary.

Some of the benefits of the IndicaOnline Elite plan include the following:

Advanced inventory management tools, including real-time tracking and alerts for low stock levels;
A customizable point-of-sale system with support for multiple payment methods;
Advanced reporting and analytics, including sales trends, customer data, and employee performance;
Customizable marketing campaigns to help drive customer engagement and retention;
Integration with leading industry software and hardware providers.

Historical Background Of The Issue

The War on Drugs in the United States has significantly impacted communities and individuals, particularly those from minority backgrounds. The campaign began in the 1970s and aimed to combat drug abuse and trafficking. Over the years, it disproportionately affected people of color and led to disproportionate arrests and incarceration for drug offenses.

The impact of the War on Drugs has been devastating, leading to the destruction of families and communities and contributing to the mass incarceration crisis in the United States. It has also had a lasting effect on those who have been caught up in the criminal justice system, making it difficult for them to find employment and rebuild their lives after serving their sentences.

The Government Social Equity Program

Despite the negative consequences of the War on Drugs, lately, the cannabis industry has presented a new opportunity for those disproportionately affected. As more and more states legalize marijuana for medicinal and recreational use, the cannabis industry has grown significantly, providing new employment and business opportunities.

However, these opportunities have not been equally available to all, with those from minority backgrounds often being left behind. The government launched the social equity program to help social equity license holders by providing financial assistance or grants to cover the costs of starting and operating a cannabis business; This could include funding for business plan development, marketing and branding, legal fees, and other operational expenses.

In addition, the government can provide access to resources such as business development support, mentorship, and networking opportunities to help social equity license holders succeed in the industry. The government can also work to ensure that social equity license holders have access to the same opportunities as non-social equity license holders, such as by providing fair and equal access to licensing and permitting processes and implementing regulations that level the playing field for all businesses.

Conclusion

The War on Drugs in the United States has devastated communities and individuals, particularly those from minority backgrounds. Social equity programs in the cannabis industry are a way to address this imbalance and create a more just and equitable industry. Companies like IndicaOnline are taking steps to provide resources and support to individuals from disproportionately impacted communities to enter the cannabis industry. While implementing a social equity program in the cannabis industry can be complex and challenging, it is an essential step toward creating a more inclusive and diverse industry that benefits everyone.

You can apply to our social equity program here.

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Twitter Now Allowing Cannabis Ads on Platform

2/15/2023

Twitter is allowing the advertising of cannabis products on its platform, marking a departure from the social media giant’s old rules for the industry which mostly barred cannabis ads. Under the rules, businesses can only sell topical, help-derived CBD products on the site but can advertise all cannabis products as long as advertisers are “licensed by the appropriate authorities, and pre-authorized by Twitter.”

The updated rules require that cannabis advertisers “only target jurisdictions in which they are licensed to promote these products or services online,” and note that “advertisers are responsible for complying with all applicable laws, rules, regulations, and advertising guidelines” and “may not target customers under the age of 21.”

“Any advertisement for Cannabis (including CBD– cannabinoids) content that is allowed, subject to the above restrictions, must in addition:

Not appeal to minors in the creative, and landing pages must be age gated and sales must be age verified.
Not use characters, sports-persons, celebrities, or images/icons appealing to minors.
Not use minors or pregnant women as models in advertising.
Not make claims of efficacy or health benefits.
Not make false/misleading claims.
Not show depiction of cannabis product use.
Not depict people using or under the influence.
Not encourage transport across state lines.”

The policy also outlines cannabis rules for Canadian cannabis companies, requiring that the companies are licensed by Health Canada, may only promote informational or brand-preference content, may only target jurisdictions in which they are licensed to promote these products or services online, and are responsible for complying with all laws and regulations.

“In general, advertisers are prohibited from promoting cannabis content:

by communicating information about cannabis price or distribution;
by doing so in a manner that there are reasonable grounds to believe could be appealing to young persons (anyone under 18);
by means of testimonial or endorsement, however displayed or communicated;
by means of depiction of a person, character or animal, whether real or fictional; or
by presenting cannabis or any of its brand elements in a manner that associates it or the brand element with, or evokes a positive or negative emotion about or image of, a way of life such as one that includes glamour, recreation, excitement, vitality, risk or daring.”

The company indicated that its updated cannabis policies still do not allow advertisements for illegal drugs, recreational and herbal drugs, accessories associated with drug use, drug dispensaries, and depictions of hard drug use.

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Cannabis Decriminalization Bill Getting Hearing in Indiana for First Time Ever

2/15/2023

For the first time ever, a cannabis decriminalization bill is getting a hearing in Indiana’s House of Representatives, FOX 59 reports. The measure, expected to be heard today in the chamber’s Committee on Courts and Criminal Code, would decriminalize the possession of up to two ounces.

Senate Minority Leader Greg Taylor (D) told FOX 59 that he thinks lawmakers should take steps to reform the state’s cannabis policy believing that “the federal government’s going to do something.”

Indiana remains one of just a handful of states that does not allow any cannabis use and has not enacted even a low-THC medical cannabis regime.

The measure would also raise the possession limits for cannabis possession to be considered a Level 6 felony in the state from 30 grams to four ounces.

The measure includes two Republican representatives – Jim Lucas and Becky Cash – as cosponsors but does not appear to have support from Republican leadership and all three levels of Indiana’s government are controlled by the GOP. House Speaker Todd Huston (R) last month told FOX 59 that he remains “skeptical” on cannabis reforms but also recognizes “that people want to have that conversation.”

Republican leaders in the state have indicated that other cannabis-related regulations, including on delta-8 THC, could be included in that conversation.

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OLCC Director Asked to Resign Amid Claims the Agency Allowed Diversion of Rare Bourbon to Staff & Executives

2/15/2023

Earlier this month, Oregon Gov. Tina Kotek (D) asked the head of the state’s Liquor and Cannabis Commission (OLCC) to step down and last week the state Department of Justice announced it is opening a criminal investigation into OLCC officials who allegedly diverted scarce bottles of Kentucky bourbon for their own use, the Seattle Times reports.

The practice has allegedly been common at the agency during the entirety of Steve Marks’ tenure. In his February 13 resignation letter, Marks wrote that he was stepping down as requested because he believes “that the Governor is entitled to have her own management team.” His resignation takes effect today at 5:00 p.m.

Attorney General Ellen Rosenblum last week opened a criminal investigation into “the matter involving ethics violations related to the purchase of liquor by some staff of the Oregon Liquor and Cannabis Commission (OLCC) and possibly others.”

During the investigation, Marks admitted he had asked a warehouse manager to “divert warehoused liquor for his personal use” several times, and that he had specifically sought Pappy Van Winkle’s 23-year-old whiskey, according to the Times report. The suggested retail price for the rare spirit last year was $299.99; however, bourbon connoisseurs said it could sell for $2,000 to $4,000 on the illegal market. Marks and the five other officials implicated in the scheme said they had whiskey sent to a liquor store, where they purchased it and kept it for personal use or used it as gifts.

The liquor is so sought after and limited that Oregon holds lotteries for consumers. According to the OLCC, the odds of winning the lottery for the 2021 vintage of Pappy’s in 2021 was 1 in 5,373, the report says.

Chris Mayton, the director of the distilled spirits program, told the human resources investigator that he has taken orders for particular, hard to find, spirits “hundreds of times” including from state lawmakers.

In a report on the diversion scheme, Travis Hampton, a retired Oregon State Police superintendent who works for the OLCC human resource department, said Mayton had secured bottles of rare liquor for “scores of employees, from warehouse workers to executive managers,” including Marks.

Kotek has called the conduct “wholly unacceptable.”

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DEA Says Novel Cannabinoids Including Delta-9 THCO Are Illegal

2/14/2023

The DEA disclosed in a letter this week that it considers products containing novel cannabinoids such as Delta-9 and Delta-8 THCO, also known as THC acetate ester, to be federally illegal Schedule I substances even if they were sourced from hemp.

The notice was sent to cannabis industry attorney Rod Kight, who contacted the agency last August to inquire about the control status of THCO products under the Controlled Substances Act. After a follow-up email on February 7, the agency responded to Kight on Monday, stating it does not consider THC acetate ester products to be legal under the 2018 Farm Bill, which federally legalized hemp, because the novel cannabinoids can only be made via synthetic means.

“Delta-9-THCO and delta-8-THCO do not occur naturally in the cannabis plant and can only be obtained synthetically, and therefore do not fall under the definition of hemp.” — DEA, in the letter to attorney Rob Kight

In a blog post about the development, Kight said the letter confirms his concerns about “the proliferation of THC acetate ester,” which can be easily found in products sold via online marketplaces alongside other cannabinoids such as CBD and delta-8 THC.

Kight notes that delta-8 THC “falls within the definition of ‘hemp’ because it is a ‘derivative’ as set forth in the 2018 Farm Bill.”

“For this reason, many people assume that THCO also meets the definition of a hemp derivative since it is typically created from a starter cannabinoid. This is not correct,” Kight wrote. “D8 is distinguishable from THCO because the hemp plant naturally produces D8; however, it does not produce THCO. From this perspective … THCO is properly seen as synthetic THC, not ‘hemp.'”

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California Cannabis Cafes Bill Would Allow Live Performances, Food and Drink

2/14/2023

The bill that would legalize cannabis cafes in California includes provisions allowing live performances at cannabis-friendly clubs, and allowing food and non-alcoholic beverages to be served at the locations, the Los Angeles Times reports. The measure would require municipalities to opt in to allow the cafes and create their own guidelines.

Assemblyman Matt Haney (D), the bill’s sponsor, said allowing cannabis cafes is necessary if the state wants the regulated cannabis industry “to survive.” He described the businesses operating under the current system, which allows on-site consumption but no food or beverage sales, as “pretty sad places.”

“They’re losing to the illegal cannabis industry, and one thing that the legal cannabis small business can offer is an experience. Cannabis businesses told us that they may have to close their doors unless the laws change. The regulations that prohibit them from offering other products like food are a huge burden.” — Haney via the Times

Some California businesses have found workarounds to the current laws. In West Hollywood, at the Artist Tree Dispensary & Weed Delivery on Santa Monica Boulevard, cannabis-consuming customers can gather at the second-floor lounge as if dining at a restaurant and order food from Fresh Corn Grill, a restaurant that has a deal with the Artist Tree.

Lauren Fontein, a co-owner of the Artist Tree, told the Times the setup mimics “the experience of being in a restaurant” even though they don’t sell customers food.

The bill has not yet been sent to a legislative committee but a note attached to the measure indicates it could be heard by a House panel next month.

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Study: No Link Between Cannabis Legalization and Increased Psychosis-Related Health Conditions

2/14/2023

A new study published this month in Jama Network Open shows no links to an increase in psychosis-related conditions or incidents in states that have legalized cannabis for adult or medical use.

Researchers used the Optum Clinformatics Data Mart Database, which contains commercial and Medicare Advantage claims of more than 63 million unique individuals followed between January 1, 2003, and December 31, 2017. All beneficiaries aged 16-and-older with at least one month of insurance eligibility during the period were included in the study.

The study used a panel fixed-effects design. The state-month was the unit used to analyze the association of state cannabis policies with the rate of psychosis-related healthcare claims. The study authors used the number of unique claims with psychosis-related diagnoses, prescribed, antipsychotics, and enrolled individuals for each state-month of follow-up and merged the data with time-varying categorical measures of state cannabis policy level and state-level demographic, economic, and social characteristics.

The researchers found more than 7 million psychosis-related diagnoses and recorded more than 20 million filled prescriptions for antipsychotic drugs over the study period. And, during the research period, medical or adult-use cannabis reforms were approved in 29 states.

“In this retrospective cohort study of commercial and Medicare Advantage claims data, state medical and recreational cannabis policies were not associated with a statistically significant increase in rates of psychosis-related health outcomes.” — “State Cannabis Legalization and Psychosis – Related Health Care Utilization

In their secondary analysis, researchers did find that rates of psychosis-related diagnoses increased slightly among men during the study period, particularly those aged 55 to 64 years and those who were Asian, in states that permit adult cannabis use compared with states that do not.

“Results from fully-adjusted models showed that, compared with no legalization policy, states with legalization policies experienced no statistically significant increase in rates of psychosis-related diagnoses,” the authors write.

The study was conducted by researchers at the University of Philadelphia, Stanford University, and Veterans Affairs Palo Alto Health Care System.

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Massachusetts Extends Pandemic Policies Including Medical Cannabis Telehealth & Curbside Pickup Services

2/14/2023

The Massachusetts Cannabis Control Commission (CCC) has voted to extend several coronavirus pandemic-related medical cannabis policies, including telehealth consultations and curbside pickup, according to a Boston University Statehouse Program report. The initial policies were approved in March 2020 and since then 80% of first-time medical cannabis consultations were conducted via telehealth, the report says.

Even as the pandemic waned and pandemic-related restrictions loosened, the majority – 53% – of initial consultations were conducted remotely, according to CCC data outlined in the report. The agency voted to extend the telehealth policies until the end of the year.

During the vote last week, Commissioner Kimberly Roy called the extension “at odds with existing regulations.” Then-Gov. Charlie Baker (R) lifted the state’s pandemic emergency policies last spring.

“The pandemic is winding down, so we can’t just keep kicking the can. If we are voting on an extension, I hope it’s the last one and that we are able to address this in regulation at some time.” — Roy via the Statehouse Program report

Some commission members voiced concerns that extending curbside pickup rules could lead to drive-thru windows, which are not permitted under the state’s medical or adult-use cannabis laws. Currently, there are 13 medical dispensaries offering curbside pickup, compared to 30 in December 2021.

The curbside pickup policies were also extended through the end of the year.

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Ohio Bill Would Change State’s DUI Laws for Cannabis

2/13/2023

A bill proposed in Ohio would overhaul the state’s Operating a Vehicle Impaired (OVI) laws related to cannabis by eliminating the requirement that motorists be automatically charged under the law after failing a drug test for cannabis, WCMH reports. Under the measure proposed by state Sen. Nathan Manning (R), drivers could argue that despite the positive test, they weren’t under the influence and a judge or jury would ultimately determine whether to convict someone on the OVI charge.

“I think it’s time that we updated the code and look at the science behind it and make sure that we’re holding people accountable who are driving under the influence or intoxicated or high, but not holding those people that maybe have taken marijuana days or weeks earlier accountable when they’re not under the influence whatsoever.” — Manning to WCMH

Under current Ohio law, drivers can be arrested if law enforcement believes there’s probable cause for impairment, which is typically determined by a roadside sobriety test. The arrested individual then undergoes a blood or urine test, and if the sample shows a certain concentration of THC, the driver is automatically charged with an OVI.

Under Manning’s bill, laboratories would also solely screen for delta-9 THC, as opposed to existing law that looks for any trace of cannabis, including its inactive ingredients.

Criminal defense attorney Dan Sabol told WCMH that under current state law, “You’re not exactly testing to see whether someone is under the influence or not, you’re testing to see if they’ve used THC within the last week or months.”

Sabol noted that medical cannabis patients are particularly at risk under current state law because of how long cannabis is detectible in a person’s system, which he described as “inherently unfair.”

“You can get a recommendation to use marijuana to treat a medical condition – and that’s good by the state of Ohio – but if you were to drive days or weeks after, we’re gonna treat you just like the drunk driver hobbling away from the bar at 2 a.m.,” he said in the report.

The measure is currently in the Senate Judiciary Committee.

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Amsterdam Bans Cannabis Use on Streets of Red Light District

2/13/2023

Officials in Amsterdam, Netherlands are banning the use of cannabis on the streets of the red light district, CNN reports. The new policies include discouraging alcohol in the district as local leaders attempt to improve the quality of life for city residents.

“Residents of the old city center experience a lot of nuisance from mass tourism and alcohol and drug abuse on the street. … Tourists also attract street dealers, who in turn promote criminality and insecurity. Especially at night, the atmosphere can become grim. People who are under the influence also stick around longer. … Residents cannot sleep well and the neighborhood is becoming unsafe and unliveable.” — The Municipality of Amsterdam in a statement via CNN

Alcohol sales in the city are already banned after 4 p.m. Thursday to Sunday and officials may take further steps, requiring alcohol to be hidden from view or removed from stores during those hours. City officials are also considering a ban on take-out purchases of soft drugs at certain times, and banning cannabis smoking at outdoor seating areas of coffee shops. There are 166 so-called coffee shops in Amsterdam, according to Health Ministry and city data.

The reforms were spurned by the “We Live Here” campaign which is meant to make visitors more aware that people live in the red light district and to take this into account, according to the campaign website. Toward the end of last year, residents of the De Wallen neighborhood launched a “stay away” campaign hoping to keep tourists out of the area.

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New Jersey Poll Finds Majority Support for Putting Cannabis Taxes Into Education

2/13/2023

A majority of New Jersians would like cannabis-derived tax revenues to be used on education, according to a Rutgers-Eagleton Poll outlined by ROI NJ. The survey found 23% of respondents preferred cannabis taxes were spent on education; 21% wanted the funds used for public and community health initiatives, including drug treatment centers; 15% said it would be spent on affordable housing development; 13% preferred the revenues were used for transportation and infrastructure projects; and 11% wanted the money used for court and prisons.

Just 4% of respondents supported using the revenue for campaigns on the dangers of substance use.

Nathan Link, assistant professor and graduate director in the Department of Sociology, Anthropology and Criminal Justice at Rutgers-Camden, one of the poll’s partner organizations, described the results as “a big deal and a needed conversation.”

“What sets this legislation apart from that of the other states that have legalized and decriminalized cannabis are the critical benefits for social and racial justice that arise from implementing a permanent funding structure that potentially targets schools, health and the well-being of people living in New Jersey’s most disadvantaged communities.” — Link via ROI NJ

Democrats and independents – 25% each – were more likely than Republicans (16%) to prefer education funding as the top priority. For Republicans, the top priority for cannabis tax revenue should be funding police, courts, and prisons (21%). Black residents (38%) polled were more likely than residents of other races and ethnicities to believe the state should primarily invest the revenue in affordable housing development.

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Kansas Bill Would Free Cannabis Prisoners and Expunge Records

2/10/2023

A bill proposed in Kansas would allow individuals to have cannabis-related crimes expunged from their records and release anyone serving probation, parole, prison or jail sentences, the Kansas Reflector reports. The measure is sponsored by House Minority Leader Vic Miller (D) and includes 24 co-sponsors.

“It doesn’t legalize it per se, but it eliminates the serving a sentence punishment. … This is sort of a backdoor way of relieving people of the penalty. And in and of itself, it would save in my mind, probably tens of millions of dollars related to those prosecutions in those incarcerations.” — Miller to the Reflector

Kansas is one of four states where cannabis remains outlawed for any purpose. If approved, the measure would take effect July 1. The state is bordered by Missouri and Colorado, which both allow adult-use cannabis access, and Oklahoma which allows medical cannabis in one of the U.S.’s most permissive programs.

Kansas House lawmakers approved a medical cannabis bill in 2021 but the measure died in a Senate committee.

The cannabis penalty reform bill has been sent to the House Corrections and Juvenile Justice Committee. Committee Chairman Rep. Stephen Owens (R) told the Recorder that he needed to review the bill before making any comments.

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Canopy Growth Announces Layoffs and Facility Closure

2/10/2023

Canadian cannabis company Canopy Growth on Thursday announced staff reductions of about 60%, including 800 positions, of which 40% were cut immediately. Canopy said it also plans to shut down its Hershey Drive facility in Smith Falls, Ontario.

The moves are part of a cost reduction program that will save the firm between $140 million to $160 million over the next year.

In a press release, CEO Dave Klein said Canopy was transitioning to an “asset-light model and significantly reducing the overall size” of the organization.

“Canopy must reach profitability to achieve our ambition of long-term North American cannabis market leadership. … These changes are difficult but necessary to drive our business to profitability and growth.” — Klein in a statement

The company said the transition to the asset-light model includes third-party sourcing for cannabis beverages, edibles, vapes, and extracts.

In a statement, CFO Judy Hong described the plan as a “right-sizing” of its Canadian business which is “expected to significantly reduce” Canopy’s cash costs.

“Canopy is firmly on the path to deliver at least quarterly breakeven adjusted EBITDA in our Canadian cannabis business in fiscal 2024,” she said, “even at current revenue run-rate.”

Canopy indicated that the company’s net revenues declined 28% in the third quarter of the year versus the third quarter of last year. The decrease, the company said, is “primarily attributable” to increased competition in Canada’s adult-use cannabis market, the divestiture of C3 Cannabinoid Compound Company GmbH, a decline in its U.S. CBD business, and “softer performance” from Storz & Bickel and This Works.

“When adjusting for both the impact of the divestiture of C3 and our Canadian retail business, revenues for the period decreased 23% in Q3 FY2023 versus Q3 FY2022,” Canopy said.

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CAKE Arrives in Arizona, Confirms “She Does Hit Different”

2/09/2023

Phoenix, AZ — Highly sought-after California cannabis brand CAKE She Hits Different has announced its partnership with Atlas Street Ventures to bring CAKE to the Arizona recreational market, the brand’s third national market.

Many have heard the name, but you may not know their background. Here’s the brief: CAKE’s founders have over three decades of combined experience in the industry including award-winning cultivation, boutique extraction methods, engaging brand design, and an acute pulse on the cannabis market. Their ability to rapidly evolve and innovate beyond the status-quo has established CAKE as a leader in the cannabis industry.

“We are so excited to launch CAKE in Arizona with our partners at Atlas Street Ventures. The ASV team shares our passion and commitment to delivering the CAKE quality products and unforgettable experiences that we are known for. Their genuine love for the CAKE brand and culture makes them the perfect partner to roll out CAKE in one of the strongest cannabis markets in the country. Expect to see big things from us!” Chloe, Co-Founder of CAKE She Hits Different.

CAKE’s signature line of Cryo-Cured Resin Pods are now featured in over 35 retailers across the state and set to be in over 100 by summer. As a lifestyle brand, the CAKE experience goes far beyond the dispensary and Arizona can expect the company to deliver unique events centered around music, cannabis, and fashion that bring together the community.

“Working with CAKE ‘She Hits Different’ is a dream come true. The CAKE team is obsessed with curating the ultimate customer experience and they never stop innovating. We are just getting started in Arizona but early retail partner sell through is greatly exceeding expectations. The excitement around the CAKE launch in Arizona is like nothing we have ever seen.” — Kent Haehl, President of Atlas Street Ventures AZ.

To celebrate their Arizona launch in proper CAKE style, they will be co-presenting sponsor of “Stoner Bowl 2023” on Sunday, February 12th. Stoner Bowl is a first of its kind industry-only private consumption event held on Super Bowl Sunday, and produced by craft cannabis company Sonoran Roots.

CAKE CryoCured Resin Pods are now available at premium retailers across Arizona.

Available Now:
-All Greens
-Debbie’s (All Locations)
-Saints
-Prime Leaf (All Locations)
-Ponderosa
-AZ Natural Concepts
-Phoenix Relief Center

Available February:
-Zenleaf (All Locations)
-Herbal Wellness Center (All Locations)
-Local Joint
-Arizona Cannabis Society
-The MINT (All Locations)

For more information about CAKE She Hits Different please visit the company’s website at shehitsdifferent.com.

About CAKE She Hits Different
Founded in 2019, CAKE is a multi-state woman and BIPOC-owned lifestyle cannabis brand offering innovative cannabis products, street wear apparel, and exclusive events. From their cryo-cured resin vapes to small batch indoor flower, CAKE is dedicated to offering the highest quality and most innovative cannabis products in the industry.

About Atlas Street Ventures
Atlas Street Ventures is a licensed cannabis product manufacturer, distributor, and innovator that brings best in class cannabis brands to market directly or through co-packing partnerships.

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Maker of RAW Rolling Papers Ordered to Cease Marketing Claims

2/09/2023

Rolling paper company Republic Brands has won a permanent injunction in a federal lawsuit against HBI International, the maker of RAW® Organic Hemp rolling papers, which requires HBI to cease promoting and selling certain products and stop making certain promotional statements. The plaintiff, Republic Brands, is the rolling paper company behind OCB®, JOB®, and other rolling paper brands.

Following a jury verdict last month that HBI International engaged in unfair business practices and violated the Illinois Uniform Deceptive Trade Practices Act, the rolling paper company has been barred from suggesting that its products are made by artisanal craftsmen in Alcoy, Spain — the birthplace of the modern rolling paper — and that it contributes its proceeds to a charitable entity or foundation known as the “RAW Foundation,” which the court found did not actually exist.

In total, the United States District Court for the Northern District of Illinois on January 31, 2023, permanently enjoined HBI International from communicating or otherwise implying — whether via marketing material or statements by personnel — any of the following:

That HBI and/or RAW® contributes its funds or proceeds to a charitable entity/foundation dubbed the “RAW Foundation”
That RAW® Organic Hemp rolling papers are “unrefined”
That RAW® Organic Hemp rolling paper adhesives are made from natural hemp gum
That RAW® Organic Hemp rolling papers are the world’s first or only organic (or organic hemp) rolling papers
That RAW® Organic Hemp rolling papers are made in Alcoy, Spain
That HBI International shall not include a packaging “stamp” using the word Alcoy or referring to Alcoy
That RAW® Organic Hemp rolling papers utilize wind power
That RAW® Organic Hemp rolling papers are made from the center of hemp stalks
That HBI or its founder Joshua Kesselmen invented rolling paper pre-rolled cones
That OCB® Organic Hemp papers are knock-offs, “RAWnabees,” copies, or fake versions of RAW® rolling papers

The court ordered HBI to stop promoting, selling, or distributing products in any way that would violate the enjoinment. Additionally, after May 31, 2023, HBI is foribbden from promoting, selling, or otherwise distributing rolling paper products under any of its other brands (which includes Elements®, Juicy Jays®, and others) in packaging that includes an Alcoy stamp.

HBI International did not immediately respond to a request for comment.

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Illinois to Conduct Disparity Study for Adult-Use Cannabis Industry

2/09/2023

The Illinois Cannabis Regulation Oversight Office (CROO) on Tuesday announced the commissioning of a Disparity and Availability Study for adult-use cannabis licenses as required by the state’s Cannabis Regulation and Tax Act.

The study will collect and analyze data and will report on whether discrimination exists in the Illinois cannabis industry. The CROO said that if the study finds that discrimination exists, it will evaluate the impact of the discrimination on the state and its residents regarding entering and participating in the cannabis industry. The study will include recommendations for reducing or eliminating any identified barriers to entry.

In a press release, Acting Cannabis Regulation Oversight Officer Erin Johnson called the study “a vital assessment of the state’s cannabis social equity licensing system.”

Last year, the state published a formal request for proposals to find a vendor to conduct a Disparity Study of the cannabis licensing system. The request resulted in a contract with the Nerevu Group, which is a 100% minority- and women-owned group of contractors and subcontractors from Peoria, Decatur, Springfield, Chicago, and additional locations across the country.

Nerevu Group Founder and President Reuben Cummings described the work as “essential in identifying potential disparities and suitable remedies.”

The final report to the governor is due in one year and updates will be posted to the CROO website.

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New Jersey’s First Black Woman-Owned Dispensary Opens This Week

2/09/2023

New Jersey’s first Black woman-owned retail cannabis dispensary opens this week in Waterford. The dispensary, Holistic Solutions, is owned by Suzan Nickelson, who was the first Black woman to majority own and operate a medical cannabis dispensary in the state.

Nickelson is also the first woman to own a cannabis license in the Garden State.

“Like the women who raised me, I believe cannabis is a plant of reverence and spirituality that has been given to people to heal – however intentional stigmatization led to what we went through in the War on Drugs that disproportionately hurt entire communities of Black and brown people. This is what fueled me to work relentlessly to open the doors of Holistic Solutions. The women in my family passed down generational knowledge of working with various herbs for healing and spirituality to me, and I look forward to using that knowledge to run my own cannabis business so others can understand just how powerful this plant can be in a pursuit of wellness and healing.” — Nickelson in a press release

Nickelson also runs Ital Daughters LLC, a cannabis and hemp consulting company that specializes in assisting minorities, women, and veterans in addition to local municipalities and stakeholders in understanding compliance and regulatory aspects of the industry.

Holistic Solutions is partnered with Eastbound Collective, which serves as a minority partner, and was founded by Patrik Jonsson last April.

“I am delighted to support Holistic Solutions on this important project. While there is now a large number of conditional cannabis licenses in NJ, there is a very limited number of operators with the funding, site control, and experience to capitalize on having a license,” Jonsson said in a statement. “Our team does. This does not only ensure that we can follow through with our commitments, but we can open quickly and provide tax revenue to the Township in 2023.”

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Former NFL Star Calvin Johnson’s Cannabis Company Launches Nano-Cannabinoid Product Line

2/09/2023

Primitiv, the cannabis company owned by former Detroit Lions teammates Calvin Johnson Jr. and Rob Sims, last week launched their Primitiv Performance line which uses a proprietary blend of electrolytes, vitamins, and water-mixable nano phytocannabinoids – including CBD, CBG, CBC, and CBN – which aims to aid in rehydration, recovery, and support the immune system.

The company describes the product as “designed for people living an athletic lifestyle to use before, during and after a workout.” The product line includes 25-milligram nano-CBD stick packs which come in four flavors and a broad-spectrum transdermal topical cream.

“I’ve long been an advocate of cannabis as a holistic way to help my body recover from the trauma it faced each day on the gridiron and knew there were many other ways to unleash the power of this plant into our daily lives. Primitiv Performance was designed to showcase these non-psychoactive phytocannabinoids by showcasing them in a way that is familiar to people already incorporating a rehydration drink mix or topical cream into their daily lives, all while further educating consumers about the power of this plant.” — Johnson in a press release

Primitiv Performance was developed in collaboration with CYP, a company that focuses on innovating higher standards of cannabis consumption by developing the fastest-acting, most bioavailable, and predictable products for the cannabis and healthcare markets through the integration of its High-Performance Nano Emulsion technology.

In a statement, James Barr, co-founder of CYP, said the nanotechnology used in the Primitiv Performance line “allows consumers to feel the active ingredients shortly after use because the cannabinoids are so small that they mostly bypass the intestinal system and enter directly into the bloodstream, therefore creating a more targeted, predictable, and bioavailable product.”

The product line is currently available online via the Primitiv Performance website.

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Five Marketing Mistakes Cannabis Companies Should Avoid

2/09/2023

Editor’s note: This guest editorial was contributed by Steve Knapp, the founder and CEO of SM Services.

A complex, technical, and attention-grabbing sector? That description applies to both cannabis and marketing. But many cannabis insiders aren’t equally versed on the ins and outs of effective marketing campaigns. Whether you run a B2B or B2C business, connecting effectively with customers requires a fair bit of know-how and understanding of the digital advertising landscape.

It’s easy to think a DIY approach to marketing your business will get customers in the door, but organic growth is easier said than done. Here are five common marketing mistakes and how you can avoid these pitfalls to get your brand in front of the right people.

1. When Marketers Wear Too Many Hats

Time and money aren’t always as plentiful as terpenes and cannabinoids in this industry. It can be tempting to overload your team with marketing tasks outside their expertise or capacity. Even if you can hire qualified marketing specialists, it’s easy to overextend those staff until they’re no longer nimble or effective.

Harnessing an effective omnichannel approach becomes difficult when marketers are distracted with too many responsibilities. Instead of piling on so many hats that your marketing team resembles a British wedding, go back to basics to ensure your strategy is clear and focused.

Establish a clear accountability map so each marketing team member knows exactly what they’re responsible for. Clear up communication roadblocks so that each stakeholder is both empowered and informed. Be honest about bandwidth. And don’t be afraid to rely on outside advertising experts and experienced strategists to establish up-to-date best practices or take over tasks beyond your team’s capacity.

2. Not Leveraging Website Traffic

Driving web traffic is a key goal of any digital marketing strategy. Your web presence can be invaluable to the success and longevity of your business. But you might be leaving crucial resources on the table if you don’t leverage all the data that comes with each visitor to your website.

Be sure to collect email addresses, phone numbers, names, product preferences, and more from all your digital visitors. Earned media platforms like Twitter, Facebook, Instagram, and LinkedIn might be the web equivalent of rental properties, but your email list is one of your business’s most valuable assets.

The more information you collect (within compliance regulations, of course), the better you can understand what makes your customers tick— and what appeal you hold for prospects. Use Google Analytics and other free developer tools to learn more about traffic behavior like top landing pages, button engagement, daily page visits and other trends.

3. Not Using Modern Technology for Programmatic Ads

Speaking of data-driven marketing tactics, programmatic advertising — which automates your media buying process — has grown by leaps and bounds in step with tech advances. While geofencing is a great way to serve ads and collect information about smartphone users in a specific area, it’s a mistake to treat that blanket approach as if it were a real strategy.

It’s best to only serve ads to active cannabis or CBD shoppers — this ensures your ads reach the most relevant audience possible. Retargeting — that is, serving ads to someone who has already visited your site or is otherwise flagged as a lead — ensures your programmatic/geo-targeting efforts are successful. Retargeted ads do this by increasing the number of customer touchpoints for relevant audiences and keeping your brand top of mind as they make purchasing decisions.

That’s not the only way to target your programmatic ads. Spending your advertising dollars on placements where your core audience is spending their free time is also smart. If you can catch your audience at leisure on websites and gaming apps when they are in a relaxed, positive, and comfortable state of mind, you increase the chances of not only positive associations but also impulse purchases.

4. Not Following Critical Cannabis and CBD Ad Regulations

One of the biggest mistakes cannabis operators can make is to think marketing compliance isn’t as important as OSHA regulations or childproof packaging. Different legal states have their own marketing or advertising regulations for cannabis and CBD, of course. But digital advertising is subject to extra scrutiny because it must be compliant with state regulations as well as the terms of service set by Google and other major search engines, as well as social media platforms.

Be sure your marketing team is deeply familiar with local guidelines on restricted verbiage and imagery, as well as required verbiage and regulations on ad placement. Don’t rest on your laurels, either — regulations can and do change over time, so it’s important to stay up to date. It’s important, too, to keep one eye on developments in the alcohol, tobacco, and Big Agriculture industries to see what kinds of regulations the federal government might impose when cannabis is eventually legalized.

5. Not Selecting a Workable e-Commerce & Merchant Processing Solution

It might seem like federally legal CBD is the darling of e-commerce platforms large and small. But not all e-com solutions and merchant processors are hemp friendly. This is a critical consideration for new CBD brands and startups hoping to have an online retail presence.

Before you invest in building a website, make sure you have an online store solution and a merchant bank that will support your business. Vet your vendors and financial networks carefully — you don’t want your site to get shut down, or for critical revenue to get tied up in electronic banking purgatory.

And of course, do ask trusted partners and marketing experts for recommendations that have proven out. It’s easy to avoid many marketing mistakes if you go to your community for a gut check, and follow the lead of experts who have been finding effective solutions year after year.

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Survey: 61% of Americans Plan to Incorporate Cannabis on Valentine’s Day

2/08/2023

A survey conducted by Wired Research found 61% of American adults intend to incorporate cannabis into their Valentine’s Day plans. The survey, which was commissioned by Verano Holdings, found childless adults were more likely to include cannabis in their plans (69% vs. 57%) and men were more likely than women to plan to use cannabis on Valentine’s Day (66% vs. 57%).

The survey found a perceived increase in romance and sexual performance by incorporating cannabis with 24% of respondents saying cannabis use will put them in a more romantic mood. Another 23% of those surveyed said that cannabis improves their sex life.

In a statement, CannaSexual sex coach Ashley Manta said that “Cannabis can have a decidedly positive impact on romance and intimacy, especially on occasions like Valentine’s Day where there are so many external stresses and pressures to make the day special.”

Dr. Shannon Chavez, a psychologist and nationally recognized sex therapist, added that the survey’s data shows “Americans use cannabis to relax or improve their mood, which can help people be present and more connected, which is crucial to a better love life.”

“Valentine’s Day is a great opportunity for couples to try something new together and try a more dynamic and less formulaic approach to intimacy, which cannabis can help inspire.” — Chavez in a statement

The survey found that Gen Z and Millennials polled were significantly more likely than Gen X and Boomers to include cannabis in their Valentine’s Day plans (70% vs. 57%). Additionally, individuals living in the Northeast were the most likely to use or gift cannabis this year (66%) compared to 55% of respondents in the Midwest, 61% in the West, and 63% in the South.

Another 37% of respondents said they would be happy to receive a gift of cannabis on Valentine’s Day.

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NYPD Files Lawsuits Seeking to Shut Down Unlicensed Cannabis Sales

2/08/2023

The New York City Police Department (NYPD) on Tuesday filed four lawsuits against companies it accuses of selling cannabis illegally in Manhattan. The complaints allege that a police officer observed the sale of cannabis products at these establishments to underage individuals and seeks to shut them down for the illegal sale of cannabis products and operating without a license.

Additionally, the Manhattan district attorney’s office mailed letters to more than 400 known smoke shops in the borough, warning them of the potential for eviction proceedings for unlawful cannabis sales.

In a press release, New York City Mayor Eric Adams (D) said that while cannabis legalization “was a major step forward for equity and justice” city officials are “not going to take two steps back by letting illegal smoke shops take over this emerging market.”

“We are laser-focused on protecting the health and well-being of New Yorkers and ensuring this emerging industry delivers equity to those who deserve it the most. I also want to acknowledge the tireless work of the New York City Police Department and the Sheriff’s Office to combat the proliferation of unlicensed smoke shops across our city and keep New Yorkers safe.” — Adams in a statement

District Attorney Alvin Bragg said that shops have been selling “unlicensed, unregulated, and untaxed cannabis products” for nearly two years throughout Manhattan.

“Just as we don’t allow endless unlicensed bars and liquor stores to open on every corner, we cannot allow that for cannabis. It’s not safe to sell products that aren’t properly inspected and regulated for dosage, purity, and contaminants,” he said in a statement. “And it certainly isn’t fair to competing businesses. Advocates fought hard to put racial equity at the center of New York’s cannabis legalization regime.”

Bragg added that officials “want to give New York’s legal cannabis market a fair chance to thrive and give New Yorkers the security of knowing that a safe, orderly system is in place for cannabis dispensaries.”

“Together, we can level the playing field for New York’s legal cannabis market and deliver on the promise of equity and fairness that legalization advocates fought so long and hard for,” Bragg said in the statement.

The four lawsuits were filed against Runtz Tobacco, Saint Marks Convenience & Smoke Shop, Sogie Mart Rolls & Puffs, and Broadway.

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Historical Background Of The Issue

The Government Social Equity Program

Conclusion

1. When Marketers Wear Too Many Hats

2. Not Leveraging Website Traffic

3. Not Using Modern Technology for Programmatic Ads

4. Not Following Critical Cannabis and CBD Ad Regulations

5. Not Selecting a Workable e-Commerce & Merchant Processing Solution

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