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Poll: Support for Cannabis Legalization in the U.S. Remains at Record High

11/16/2022

According to a Gallup poll released Tuesday, Americans’ support for cannabis legalization remains at the record high of 68% recorded by the pollster over the last two years. The poll found a majority support for the reforms among most subgroups, including 81% of Democrats and 51% of Republicans.

The only subgroups that did not back the reforms were conservatives (49%) and respondents who attend church weekly (46%). Support was highest among the non-religious (89%) and liberals (84%). Support among older adults and Hispanic adults was also below the national average at 53% and 56%, respectively.

The majority of individuals aged 18-29 from all political ideologies backed cannabis legalization, including 65% of young conservatives, 82% of young moderates, and 86% of young liberals. Fifty-nine percent of conservatives aged 30-49 favored legalization, along with 78% of the moderate cohort and 85% of liberals of the same age. Support among 50- 64-year-old conservatives was 49%, while 70% of moderates and 82% of liberals from the same age group backed the reforms. Just 32% of conservatives 65 and older supported legalization, along with 62% of moderates and 81% of liberals of the same age.

When Gallup first asked about legalizing cannabis in 1969, just 12% of Americans were in favor. Support reached 31% in 2000 and surpassed the majority level in 2013. Since 2016, at least six in 10 have been in favor.

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Bell County, Texas DA Asks Police Chief to Resume Low-Level Cannabis Crime Enforcement

11/16/2022

Bell County, Texas District Attorney Henry Garza has sent a letter to Killeen Police Chief Charles Kimble asking him to rescind an order to end enforcement of low-level cannabis possession crimes, the Killeen Daily Herald reports. Killeen was one of five cities where voters approved a cannabis decriminalization ballot question on Election Day.

Two days after voters approved the reforms, Kimble issued “special order 22-07″ to end the enforcement of the state law.

“No arrests will be made for misdemeanor possession of marijuana,” the order states. “In lieu of a marijuana arrest, officers will not arrest for possession of drug paraphernalia or drug residue.”

Garza told the Herald that he expects to meet with the police chief about the request, which was also signed by County Attorney Jim Nichols.

“In that order, you instruct your employees, among other things, not to make arrests for the possession of misdemeanor amounts of marijuana nor to consider the odor of marijuana or hemp as probable cause for any search and seizure. I am writing to respectfully request that you rescind this order.” — Garza, in the letter, via the Herald

Louie Minor, an activist with Ground Game Texas — the group behind the campaign — and who was elected as a Bell County Commissioner on the same night voters approved the decriminalization initiative, called Garza’s request “a non-binding opinion” and described it as “worthless as the paper it is written on.”

“The DA handles felonies, not misdemeanors,” Minor told the Herald. “The people voted on it, and the city is moving in the right direction. I praise the chief for giving a special order to comply with the will of the voters.”

In the letter, Garza said the non-enforcement of cannabis crimes runs afoul of Texas state law.

The city council is scheduled to canvass the election’s results on November 22. City Council member Jose Segarra said the issue is something the city attorney would have to discuss with council members and give them legal guidance.

In Killeen, the measure was approved by almost 70% of voters.

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Texas Medical Cannabis Patient Count Steadily Increasing

11/15/2022

Over the last 18 months, patient registration in Texas’ medical cannabis program has increased by an average of 10% month-over-month, Chief Wayne Mueller, of the Texas Department of Public Safety, told KXAN. Mueller described the increase as “significant” and expects between the next 18 to 24 months, there will be 100,000 patients enrolled in the state program.

To assist with the program’s growth, officials plan to hire a consultant to help them add more licenses as there are still only three throughout the state.

“While we are in this fledgling stage with this program, I think bringing in a person or an entity that has experience with other state programs that were at the same point (at some) time will give us some vital insights so that we’re not trying to reinvent any wheels.” — Mueller to KXAN

Recently, public safety commissioners passed a working group that would help facilitate any changes to the program approved by state lawmakers. They also approved a resolution to allow the current licensees to open satellite locations throughout the state to help with patient access.

A poll published in August conducted by the University of Texas at Tyler and the Dallas Morning News found 72% of registered voters back the state’s medical cannabis reforms.

Last summer, Texas Agriculture Commissioner Sid Miller (R) campaigned to support medical cannabis access in the state, saying officials needed “to open it up to everybody and quit picking winners and losers.” In July, Miller penned an op-ed calling for the end of cannabis prohibition in Texas.

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Tyson 2.0 Partners with Evander Holyfield on ‘Holy Ears’ Gummy Line

11/15/2022

World-famous professional boxers and longtime ring opponents Mike Tyson and Evander Holyfield have announced the launch of a delta-9 and delta-8 THC line of ear-shaped gummies. Tyson famously bit off a chunk of Holyfield’s ear in a heavyweight championship boxing match in 1997.

Tyson is the co-founder and chief brand officer of Tyson 2.0.

Now the duo is releasing the gummies, known as Holy Ears, as part of the Tyson 2.0 line under a newly formed brand house called Carma Holdings. The company already sells a gummy line shaped like an ear with a bite mark called Mike Bites.

“From Mike Bites to Holy Ears, now cannabis fans around the world can experience the same wellness benefits that plant-based products have brought me. It’s a privilege to reunite with my former opponent and now long-time friend, and turn years of fights and knockouts into a partnership that can make a positive impact and heal people.” — Tyson in a press release

“Mike and I have a long history of competition and respect for one another. And that night changed both of our lives. Back then, we didn’t realize that even as power athletes, we were also in a lot of pain,” Holyfield said in a statement. “Now, nearly 20 years later, we have the opportunity to share the medicine we really needed throughout our careers.”

Holy Ears will be available next month online and in stores in Arizona, Illinois, Nevada, and New Jersey.

Professional wrestler Ric Flair’s cannabis line, Drip, is also under the Carma brand house.

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Minnesota Governor Believes Cannabis Legalization Could Happen Next Session

11/15/2022

Minnesota Gov. Tim Walz (D) said during a radio appearance last week that the state could pass cannabis legalization reforms as soon as the next session after the election saw Democrats take control over both chambers of the legislature and Walz was reelected, CBS Minnesota reports.

During a podcast last Thursday, former Gov. Jesse Ventura said Walz has indicated cannabis legalization would be one of the first bills passed by the new Democratic-led legislature.

“It just makes sense. Prohibition didn’t work. We get better regulation. I just mentioned that I think it would be important to recognize [Ventura], asked him if he would be there when we get this done.” — Walz during an appearance on WCCO radio via CBS News

House Speaker Melissa Hortman (D) told CBS News that the “caucus supports adult-use cannabis” and that she believes lawmakers “will pass that bill.”

In the last session, the House passed a broad cannabis legalization bill but the measure was blocked by the Republican-led Senate.

Ventura, the former professional wrestler and actor who served as governor of Minnesota from 1999 to 2003, floated the idea of cannabis legalization during his tenure. Walz said Ventura “would have been on the front line of the first states to do this.”

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Milwaukee, Wisconsin Voters Back Non-Binding Referendum to Legalize Cannabis

11/15/2022

Voters in Milwaukee County, Wisconsin on Election Day passed an advisory referendum backing the legalization of cannabis in the state, the Milwaukee Journal reports. Voters in the county were asked: “Do you favor allowing adults 21 years of age and older to engage in the personal use of marijuana, while also regulating commercial marijuana-related activities, and imposing a tax on the sale of marijuana?”

In all, more than 74% of voters backed the referendum, which is nonbinding.

In September, Gov. Tony Evers (D) said that were he to be reelected, he would include adult-use cannabis legalization in his next state budget. Evers retained the governorship during last week’s election.

Evers had included legalization in his 2021 state budget but was blocked by the Republican-led Legislature. During the midterm elections, Democrats picked up seats in the state Assembly and Senate; however, only enough to prevent Republicans from maintaining their two-thirds majorities, rather than majorities, according to the Associated Press.

Under Evers’ previous legalization plan, his office estimated legal cannabis sales could generate $166 million in revenue that the governor proposed could be used to help fund schools.

Last year, Evers said he was “tired” of Illinois Gov. JB Pritzker thanking him for the Wisconsin residents that crossed state lines to buy legal cannabis.

“Frankly I’m kind of tired of talking to the governor from Illinois,” Evers said in a video posted to Twitter. “Whenever I get with him, he thanks me for having Wisconsinites cross the border to buy marijuana.”

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Matt Garippa: How Purchasing Strategies Create More Financial Options in Cannabis

11/15/2022

Cannabis companies can provide a solid foundation for their businesses in an otherwise volatile emerging industry by simplifying their business operations and maximizing their spending efficiency. Order.co is a spend efficiency platform that manages a cannabis company’s entire purchasing process, freeing up the operators’ time to focus on growing and scaling their business. Through the platform, companies can pay vendors, consolidate invoices, automate invoice creation, customize workflows, forecast budgets, and more.

Prior to his role as CBO for Order.co, Matt Garippa worked in fixed-income trading after training in data science. In this interview, Matt shares how the Order.co SaaS works for cannabis companies, the true role of spend efficiency in operating a business, and gives advice for entrepreneurs seeking funding.

Check out the interview below.

Ganjapreneur: What is Order.co and how does the platform support cannabis businesses?

Matt Garippa: Order.co is a Spend Efficiency Platform that simplifies how businesses purchase and pay for everything they need to operate. In building this technology, we’ve found unbelievable partners in cannabis businesses.

Because of financial constraints and unfulfilled market demand, we’ve discovered that many cannabis entrepreneurs are already thinking about how to scale efficiently with high overhead in physical goods.

So, our mission aligns with theirs, and for our 100+ cannabis customers, we’ve seen that they can push the boundaries on how they grow by focusing on efficient spend.

What was your professional background prior to co-founding Order.co with your brother Zachary?

Before Order.co, I was heavily involved in finance – specifically fixed-income trading. I’m a data scientist by training, so the intersection of data and financial products has always been my passion.

Since Order.co has started supporting cannabis industry businesses, what are some of the most common financial obstacles you’ve seen such companies struggle with?

Cannabis businesses struggle to access traditional financial products like working capital loans or revolving credit. Building a business is really challenging in itself, and the obstacle we continue to hear from the cannabis industry is that the lack of access to capital compounds these challenges.

We’ve seen cannabis businesses forced to make business decisions that optimize freeing up cash flow immediately instead of focusing on growth or margin.

For example, we’ve seen companies turn down large POs because they don’t have enough cash to produce and package. Or they’ll sell inventory for less of a profit to distributors versus selling directly into retail because they need the cash influx immediately.

We noticed these issues frequently, so we created different methods for our cannabis customers to access trade credit and cash advances.

What options does a cannabis business have when it comes to securing financing??

Right now, the “easiest” form of financing for a cannabis business is probably through an equity offering – but that’s dilutive to owners. Borrowing should be the better option, but most traditional lenders still won’t play in the space. Leveraging trade finance (extended terms and working capital from existing supply chain partners) is one of the best options available to cannabis businesses today, and it’s often faster and easier versus borrowing from banks or private lenders.

And for cannabis companies looking to avoid additional operational complexity or borrowing, a Spend Efficiency Platform like Order.co helps businesses access these financing options in their normal buying processes.

Does the role of spend efficiency become more critical for a business once funds have been raised? How much can a company actually save by routing all expenses through a centralized tracking system?

Businesses proactively looking for solutions post-fundraising are prime candidates for a Spend Efficiency Platform because they need to spend with purpose and have total clarity into every dollar of their business spend.

Businesses that are pre-funding might not be aware that there’s a problem with their purchasing process, so subscribing to a Spend Efficiency Platform may be premature. However, once a business becomes aware of a problem and has raised funds in some capacity, they either proactively seek a solution or remain reactive.

The ROI on a Spend Efficiency Platform is so highly positive between hard dollar savings, human capital cost savings, and time savings that companies can realize up to 20% of their monthly expenditures as savings using a platform like Order.co. You’re leaving money on the table by not utilizing a Spend Efficiency Platform, no matter your industry.

How do you think the paradigm for financing in the cannabis industry will change once banks are formally allowed to serve the industry at the federal level?

Competition spurs innovation. As cannabis becomes more accepted at the federal level, more traditional finance players will enter the cannabis financing space and offer cannabis companies more traditional financial products.

We’re already bringing the best of those financial options to our customers so they can make strategic purchasing decisions without cash flow constraints. When financing becomes more readily available to all in the space, there may be a boom in initial expansions and growth plans.

But, longer term, it comes down to HOW those businesses are spending the money they’re now able to raise. So, I think the clear winners will emerge over time of who is efficiently spending the money they can now access.

In the current paradigm of state-level legal markets during federal prohibition, would you say it is probably better to pursue market share & brand awareness, or profitability at a smaller scale?

I don’t think there is a one-size fits all strategy for cannabis. Early on, the focus was clearly on market share and brand awareness. Still, in today’s market, there seems to be a clear emphasis on ensuring you can run a sustainable, profitable business.

Whether you’re a single-site operation or a multi-state operator, I recommend investing early in a solid operating model that drives efficiency as you grow so you can scale when the time comes.

It’s much easier to have efficient processes in place and then grow versus growing too fast with a back office full of chaos and trying to bring order to that chaos after the fact.

Investing in brand awareness is a long-term asset, but you might not realize the benefit of it if you’re burning through cash and unable to keep operations afloat and inventory in stock.

What advice would you offer to a cannabis entrepreneur who is deciding between self-funding their business, taking out a loan, or finding outside investors?

I recommend being thoughtful about what kind of business the entrepreneur wants to build, how quickly they want to build it, and what partners they want to be accountable to as they grow.

More capital generally opens up possibilities to grow faster, but it also means making strategic decisions about the kind of business you want to run.

My advice to those entrepreneurs who aren’t sure yet is to solve for financial optionality: take advantage of the financial products that give your businesses more flexibility without giving away control.

If an entrepreneur is pursuing venture capital to help grow their business, how important is it to find the right investor, as opposed to any investor? How should you go about identifying good prospective investors?

I can talk for hours about the importance of finding the ‘right’ investor for your business because of how much of a force multiplier I have experienced here at Order.co.

Our investors share our vision for Order.co – to simplify how businesses buy – which means they are supportive but challenge us when they have to. They’re pioneers in SAAS+, go-to-market vanguards, and fintech experts.

So finding the right combination for your own business is, in itself, a competitive advantage.

What is the best way to introduce yourself to prospective investors, and how much detail should you include in your initial outreach?

Whenever talking to investors, I recommend being authentic about who you are and clear and concise about your business and vision.

What are some things to avoid, and/or red flags to watch out for in conversations with prospective investors?

I always recommend focusing on alignment when speaking to investors and ensuring a mutual fit.

What makes for a good pitch deck? And what is the most important part of the deck?

A pitch deck is a great way to introduce yourself and your business to investors, so the same rules apply: be authentic, clear, and concise.

Thank you, Matt, for sharing your insight and spending efficiency expertise! Visit Order.co to learn more or click here to request access to the company’s cannabis financing tool kit.

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New Cannabis Drug Delivery Tech to Provide Cheaper Cannabinoid Vapor

11/14/2022

Stillwater, MN, November 2022 — Vapor Cartridge Technology LLC, based in Stillwater Minnesota, has invented and patented a groundbreaking technology with the power to change the entire recreational cannabis industry.

Vapor Cartridge Technology LLC has invented and patented an FDA-approvable, environmentally friendly, and cost-effective process for extracting the essential oils and resins from botanical plants (e.g., cannabis) and an FDA-approvable device for delivering a pure and exact dose of the extracted oils/resins as a consistently reliable precise inhalable vapor.

It seeks to be the most cost-efficient manner of delivering cannabinoid vapors as measured by $/mg/ml of cannabinoids in the bloodstream. It seeks to be the only technology that can provide the dose control, formulation control, and purity assurance of inhaled botanical vapors required of an FDA approved drug.

“Once commercialized, the Vapor Cartridge Technology will quickly become the overwhelming preference of retail recreational adult users,” according to a spokesperson for the company.

Vapor Cartridge Technology LLC is currently seeking licensing opportunities for their new technology and have launched a data rich website (https://vaporcartridgetechnology.com) towards this objective. The website contains a detailed explanation of the science behind the technology, a competitive analysis, the benefits of the technology, the patent portfolio, potential licensees, and a way to contact the company.

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Study: Majority of Hemp Flower Purchased Online Exceeds Federal THC Limits

11/14/2022

A study published last month by the National Institute of Standards and Technology and the National Institute of Justice found 49 of 53 samples of hemp flower products obtained through online vendors were incorrectly labeled and “technically fit the federal classification for marijuana.”

The study bought flower labeled as hemp from five online vendors and found that just two of the 34 products purchased from vendor one contained less than the 0.3% THC threshold, none of the eight samples from vendors two and three would be considered hemp under federal rules, along with just two of the 11 samples from vendors four and five.

The study notes that “of the inaccurately labeled samples, virtually all had total THC concentrations under 1 percent but above the legal threshold of 0.3 percent.”

“Although these results cannot be taken as indicative of the entire field of commercial hemp products, they validate the notion that at least some products that are marketed as hemp (and appear official and reliable from a scientific point of view) can be legally classified as marijuana. These products pose a particular challenge for labs attempting to quantify small amounts of THC, as well as consumers who may be unaware of what is contained in the product.” — “Study Reveals Inaccurate Labeling of Marijuana as Hemp,” Oct. 17, 2022

Each of the vendor websites indicated that “all products contain less than 0.3 percent THC” or “Products are lab tested to ensure their THC content is less than 0.3 percent.”

Hemp was legalized federally in 2018 under the Farm Bill and since then, the presence of THC in seized cannabis is no longer sufficient to classify it as a controlled substance under federal law. Most crime labs also do not have the capability to test for THC concentrations which has led law enforcement in some states that still outlaw cannabis to stop prosecuting simple possession cases as defendants can argue the products are hemp.

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Missouri Releases Adult-Use Cannabis Draft Rules While Officials Set Timeline

11/14/2022

Missouri officials have released draft rules for the state’s upcoming adult-use cannabis industry, less than a week after voters approved the reforms. The publishing of the draft rules is the first step to rolling out the industry, which Department of Health and Senior Services spokeswoman Lisa Cox said could happen before February, the St. Louis Post-Dispatch reports.

Under the voter-backed measure, the state is required to take action within 60 days, making February 6 the date the state must approve conversion applications from current medical cannabis operators submitted on December 8.

Cox told the Post-Dispatch that officials expect to convert licenses “before the 60-day deadline, as soon as we have rules for comprehensive facilities filed.”

“We anticipate comprehensive dispensaries will be able to begin selling to adult use consumers as soon as their license is approved for conversion.” — Cox to the Post-Dispatch

Jack Cardetti, spokesperson for the Missouri Medical Cannabis Trade Association, told the Post-Dispatch that the timeline “likely means that Missouri will have one of the quickest and smoothest transitions to adult-use sales in the nation.”

Cox also indicated that the state will start accepting applications for adult personal cultivation “during or before the first week of January,” and microbusiness licenses “during or before the first week of September 2023.”

Voters approved the reforms by a 53%-to-47% margin. The state is accepting public comments on the draft rules until November 25.

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Minnesota Pro-Cannabis Party Loses Major Party Status

11/14/2022

Minnesota’s Grassroots-Legalize Cannabis Party lost its major party status after it failed to have a statewide candidate garner 5% of the vote in the past two general elections, the Star Tribune reports. The 5% threshold is required for parties to maintain the major party status.

Grassroots-Legalize Cannabis Party candidates had run in last week’s election in the governor and state auditor races, but both drew less than 2% of the vote, the report says. Steve Patterson has sought the governorship on the party line, while Will Finn ran for auditor.

The other pro-cannabis party, Legal Marijuana Now, still has its major party status because its U.S. Senate candidate, Kevin O’Connor, received nearly 6% of the vote in 2020, allowing the party to maintain the designation for four years.

Grassroots–Legalize Cannabis Party Chairman Oliver Steinberg told the Star Tribune that the major party designation “is the worst thing that happened to the cannabis parties” because it opened up the party to having “bogus” candidates, often Republican-aligned, to run under the party’s banner.

In an October 29 update posted to the party’s website, Steinberg wrote that the party was “established in 1986” and “sabotaged in 2022” and that the party did not want people to vote for Patterson or Matt Huff, who ran for lieutenant governor.

“Patterson stated that his intention was to hijack the party’s nomination,” Steinberg wrote. “He has no background as a cannabis activist, has never supported or donated to the party, and refused an opportunity to let the Party’s endorsed candidate – a disabled military veteran – obtain a place on the ballot.”

According to a statement by the party in August, its endorsed candidate, Kevin “NeSe” Shores was kept off the ballot.

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Colorado Legalizes Psychedelic Mushrooms for Personal and Medical Use

11/11/2022

Colorado voters on Tuesday approved a ballot initiative to legalize psychedelic plants and fungi for adults by a 52.3% to 47.7% margin, according to Associated Press data. The measure will allow people 21 and older to grow and share psychedelic mushrooms and create state-regulated “healing centers” where people could make appointments to consume psilocybin but does not permit retail sales.

In a statement to the Colorado Sun, co-proponents, Kevin Matthews and Veronica Lightening Horse Perez, said voters “saw the benefit of regulated access to natural medicines, including psilocybin, so people with PTSD, terminal illness, depression, anxiety, and other mental health issues can heal.”

Luke Niforatos, chairman of Protect Colorado’s Kids, told the Sun that voters are allowing “billionaires, startups, and entrepreneurs” to take control of medicine in this state instead of “scientists, medical doctors, and the [Food and Drug Administration.]”

“We now need to have a very frank and public conversation about who is in charge of medicine. This is now the second time our state has rejected the FDA process.” — Niforatos to the Sun

The measure will also allow facilities to expand to three more plant-based psychedelics in 2026, including ibogaine, mescaline, and DMT. Mental health centers and substance abuse treatment clinics also could seek licenses to offer psychedelic treatment.

Colorado joins Oregon and Washington D.C. in reforming their laws related to natural psychedelics.

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Florida Clinical Trials Company Testing First Drug for People With Cannabis Use Disorder

11/11/2022

Miami-based clinical trial company Segal Trials, which operates a network of South Florida clinical research sites, announced a Phase 2B study to investigate a new drug designed to treat cannabis use disorder.

The drug under trial, AEF0117-202, was created by Aelis Farma and is the first clinical candidate in a new pharmacological class of drugs, sCB1-SSi, according to a press release. Under the randomized, double-blind, parallel-group trial, the orally administered drug will be issued to a group of study participants while a second group will be given a placebo.

Segal Trials’ Chief Scientific Officer and Medical Director Rishi Kakar, MD, said in a press release that the drug will seek to help people who consume cannabis at least five days per week to “end their dependence” on the plant.

“Chronic marijuana use can drastically impact individuals’ social and professional lives in many ways, from poor work or school performance to mood disorders. This Phase 2B study gets us closer to the prospect of effectively treating people who want to end their reliance on cannabis but don’t have the tools to quit.” — Dr. Kakar, via press release

There is not currently an FDA-approved pharmacological treatment for people experiencing cannabis use disorder, which is described medically as the continued use of cannabis despite psychological, physical, or social impairments.

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New York Judge Halts Retail Cannabis Licensing Due to Michigan Firm’s Lawsuit

11/11/2022

A New York federal district court judge on Thursday blocked officials from issuing the first batch of retail cannabis licenses pending the resolution of a lawsuit filed by a Michigan-based company challenging the license selection requirements, the New York Times reports. The injunction by Judge Gary L. Sharpe affects 63 of the 150 licenses set to be awarded to social-equity applicants.

The affected licenses include those set to be issued for Brooklyn, Central New York, the Finger Lakes, the Mid-Hudson Area, and Western New York.

The case, brought by Variscite NY One, argues that requirements that applicants must have a cannabis-related conviction under New York state law and significant ties to the state violate constitutional protections of interstate commerce. Regulators accepted applications for the first 150 retail licenses in August and September. The requirements excluded people who had been arrested on cannabis-related charges in New York, but not convicted and those who had only federal or out-of-state convictions. Applicants must also have been headquartered in the state.

Variscite argued that it would face irreparable harm if it had to wait for the next round of licenses and that the state could achieve its goals by other means, such as establishing business incubators and job training programs. In his decision, Sharpe said the company has “demonstrated a clear likelihood of success on the merits” of their case.

Variscite did not qualify for one of the first licenses, according to the complaint, because the company is based in Michigan, where its majority owner, Kenneth Gay, was convicted of a cannabis offense. But the company applied anyway, listing the five regions affected by the injunction as preferred locations on its application.

Officials had previously indicated that retail cannabis sales would commence before the end of the year, but this lawsuit could delay the industry’s rollout, at least in the five affected regions.

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Illinois Announces $8.75M Loan Program for Social Equity Businesses

11/11/2022

The Illinois Department of Commerce and Economic Opportunity is set to release $8.75 million in state-backed loans for cannabis industry social-equity licensees that are expected to open in the spring, the Chicago Sun-Times reports. Eligible companies will be able to access up to $500,000 at zero interest for 18 months.

Businesses that receive the funds and use them for rent, payroll, utility bills, and some other costs will not have to repay the loan, Emily Bolton, spokeswoman for the commerce department, told the Sun-Times.

Under the loan program, licensees looking to start craft cultivation operations are eligible for $500,000 – the maximum amount – infusion businesses are eligible for up to $250,000, and transportation licensees can get as much as $50,000. Bolton said the $8.75 million should cover the max amount for the 37 businesses that are expected to open in the spring.

The loan announcement comes less than a week after members of the state’s minority cannabis community indicated as many as eight of 10 social equity licensees were in danger of missing the March deadline to have their businesses operational.

Lisbeth Vargas Jaimes, executive director of the Illinois Independent Craft Growers Association, said the loan announcement was “great news” but she is “waiting to see the implementation.”

In a statement, Gov. JB Pritzker (D), said the loans are necessary to “create a truly equitable cannabis industry” in Illinois.

“That’s why we are launching this Direct Forgivable Loan Program to provide a much-needed jumpstart for social equity applicants who’ve faced hurdles in pursuit of capital funding,” he said. “This $8.75 million will help our social equity licensees open their doors for business – a major step towards creating a prosperous cannabis industry here in Illinois.”

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Five Texas Cities Vote to Decriminalize Cannabis on Election Day

11/10/2022

Five Texas cities on Election Day voted to decriminalize low-level cannabis possession, the Texas Tribune reports. The reforms passed in Denton, Elgin, Harker Heights, Killeen, and San Marcos.

The campaigns were backed by Ground Game Texas which earlier this year led a similar, successful, effort in Austin.

In San Marcos, home of Texas State University, voters approved the measure with nearly 82% of the vote, the report says. The Killeen measure passed by a near-70% margin. In Elgin, almost 75% of voters backed the reforms. In Harker Hill, more than 60% of voters approved the initiative.

Mike Siegel, political director of Ground Game Texas, told the Tribune that the organization is “extremely happy” with the results.

“These meaningful reforms will keep people out of jail and save scarce public resources for more important public safety needs.” — Siegal to the Tribune

The propositions establish local ordinances that end low-level enforcement, including citations and arrests for possessing less than four ounces of cannabis and related paraphernalia, in most cases. They also largely prohibit using city funds and staff to test substances for THC.

Siegel said the organization plans next to put the measure on San Antionio ballots in May 2023 and potentially on ballots in Dallas, Fort Worth, and Houston in 2024. Those campaigns could also focus on other social justice issues.

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Another Lawsuit Claims California Brand Inflated THC Levels on Packaging

11/10/2022

Another lawsuit filed in California accuses a state-licensed cannabis company of inflating THC levels in its products. The lawsuit, filed in the state Superior Court in Monterey County by Dover & Luner, LLP, alleges that Greenfield Organix Inc. and LPF JV Corporation, which produce and market the King Roll brand, “overcharged consumers by illegally selling products whose THC content was represented as substantially higher than it actually was.”

In court documents, plaintiffs claim that the labeling on King Roll products claims THC concentrations as high as 48.54% but independent laboratory testing found the products contained between 33% and 36% THC, which is more than the 10% margin of error allowed under California regulations.

“Defendants know, or reasonably should know, that they are misleading consumers. Defendants know that THC content is highly material to consumers, and have a direct financial incentive to overstate the THC content of their products. Moreover, as a significant player in the cannabis industry, Defendants are aware of industry trends, aware of the rampant testing fraud in the cannabis market, and know which labs participate in the fraud. Accordingly, Defendants are intentionally and knowingly causing the THC content declared on the label of their products to be substantially, and systematically, overstated, either by misstating the results themselves or by intentionally and knowingly causing testing labs, which are their agents, to report fraudulently high THC content results.” — Rocky Willeford vs. Greenfield Organix Inc., and LPF JV Corporation

The lawsuit, in which attorneys are seeking to make a class action, says the companies broke the Unfair Competition Law, False Advertising Law, and Consumer Legal Remedies Act while accusing the firm of breaching express warranty, negligent misrepresentation, intentional misrepresentation, and unjust enrichment.

“Defendants are systematically overstating the THC content to deceive consumers into thinking that the effects of their prerolls are more potent than they truly are,” the complaint alleges. “This is false and misleading.”

The lawsuit seeks unnamed damages, restitution, attorney’s fees, and an injunction.

In a statement, Christin Cho of Dovel & Luner said the plaintiffs “look forward to holding defendants accountable for their actions.”

A separate lawsuit filed by the law firm last month makes similar claims against DreamFields Brands Inc. / Med for America Inc., claiming the company inflates the THC levels on the packaging of its Jeeter brand.

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Oakland Announces City’s First-Ever Cannabis Equity Week

11/10/2022

Oakland will hold its first-ever cannabis equity week from November 14-18, 2022, according to a city press release. Oakland was the first city in the U.S. in 2017 to start a cannabis social equity program to help those most affected by the War on Drugs find a foothold in the regulated cannabis industry. The celebration will highlight equity operators who they say “have suffered from a lack of consumer awareness and marketing,” which has led to fewer dispensaries carrying equity products on their shelves and on their online menus. During the event, select dispensaries will be offering special deals for equity brands.

“When you buy from an Equity brand, you are buying excellent cannabis products while helping your fellow Oaklanders. Oakland has a deeply rooted history of supporting its own and social justice. Equity cannabis is the next chapter in our story.” — Greg Minor, Assistant to the City Administrator and manager of the Special Activity Permits Division

The city said its equity program to date has “included prioritized permitting for equity applicants, exemption from application and permit fees, free legal and technical assistance, the purchase of a shared kitchen to advance manufacturing opportunities and financial assistance via the Equity Loan and Grant Programs.”

Oakland has issued over 190 equity licenses and dispersed $7 million in grant money to social equity operators. Over 80% of businesses approved for the grant funding are owned by African Americans.

Oakland has used city cannabis taxes, state grants from the Governor’s Office of Business and Economic Development (Go-Biz), and funds from California‘s Department of Cannabis Control to fund the social equity program, the press release notes.

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The 3 Types of Videos You Need for Your Cannabis Business

11/10/2022

Video marketing has officially gone viral. With the onset of TikTok during the pandemic, short-form video content has rocket-launched into popularity with nearly every app coming up with some version of it: Instagram Reels, YouTube Shorts, Pinterest Idea Pins, and so on.

As video becomes entrenched in marketing, brands are feeling the pressure to churn out quality video content. Not to mention, it improves SEO, enables easy content repurposing, and increases customer engagement.

For cannabis businesses, in particular, video marketing comes with unease. If social media antagonizes brands for images of flower or people smoking, how can video be safely used?

That’s where cannabis-specific video marketing strategy comes in. Whether you’re working as a direct-to-consumer brand or a business-to-business (B2B) brand, video content is an essential part of building trust with your potential customers and clients.

We’ve rounded up the three types of video your cannabis business needs ASAP:

1. Educational Videos

The cannabis industry is complex. Everything from the anatomy of a vape pen to what to expect when visiting a dispensary is met with consumer uncertainty. These things not only vary by state but oftentimes are culturally or even internally stigmatized.

Educational videos are a great way to help destigmatize cannabis by spreading legitimate information. Videos with Q&As or product demonstrations allow you to lower that barrier of uncertainty by sharing exactly what customers can expect.

Moreover, educational videos are one of the best ways to build a strong relationship with your customers over time. As you continue to put out helpful content, your audience will slowly associate you with all their cannabis needs.

You’ll go from being the go-to source for their questions to being their top choice on the market when they’re ready to shop.

Overall, educational videos are essential when you’re looking to level up your cannabis video marketing game because they naturally help establish your brand as knowledgeable and slowly, but steadily, build the foundation of the relationship with your customer.

2. Customer Testimonials

Customer testimonials are perhaps the most underrated type of video in the cannabis industry. While other markets, like beauty and skincare, thrive with customer testimonials and have flourishing user-generated content communities, cannabis is behind.

Think of customer testimonials as brand ambassadorships or influencer partnerships, but with your real-life, everyday, loyal customers. Featuring client testimonials or transformations helps humanize your brand and also takes on-the-fence or first-time customers, well, off the fence.

The cold hard truth is that no one wants to buy your product or service. They want to buy your outcome, your transformation. Whatever story you can share to show what your exact outcome is will get people through the door faster than any full-blown marketing campaign ever could.

3. Behind-the-Scenes Videos

Lastly, you need BTS videos. No, not the K-pop group, but the intimate, sneak peek into a day in the life of being on your team.

When users online can put a face to your brand name – or a few faces – and form a genuine connection, they are more likely to feel a sense of loyalty. For instance, a dispensary sharing the cannabis journey of its budtenders may spark some viewers to say “I would love to be their friend,” or even better, “I have a similar journey; I want to buy from them.”

Behind-the-scenes videos showcase your brand with transparency and authenticity that gives your customers the feeling that they are in the know with you.

The Time for Video is Now

If you’re a cannabis brand that hasn’t jumped on the video marketing train yet, it’s not too late to start. You don’t need an entire team of producers, directors, videographers, and editors to get started.

With cannabis becoming such a saturated market, video could be your key to standing out from the crowd. Begin today just by picking up your cell phone! Experiment with creative approaches to educational videos, customer testimonials, and behind-the-scenes content to organically establish thought leadership, reduce sales friction, and build brand loyalty.

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Maryland Voters Approve Cannabis Legalization Initiative

11/09/2022

Maryland voters on Election Day approved a Legislature-backed ballot question to legalize cannabis for adult use, according to New York Times election results with 82% of the vote counted. Voters handily backed the measure by a 65.5%-34.5% margin.

Polling prior to Tuesday’s vote had repeatedly found strong support for the reforms, with an October poll from the Washington Post and the University of Maryland gauging support at 74%.

Unlike most citizen-backed initiatives, Maryland’s adult-use question was proposed by state lawmakers and gives the Legislature the green light to set up the industry. The approval by voters triggers some cannabis-related legislation that was passed by lawmakers during the 2022 session, according to the Baltimore Sun. The legislation impacted includes a bill that starts a transitional period between January 1 and July 1 where some cannabis-related penalties related to possession would be reduced; criminal penalties for possession up to an ounce-and-a-half can be fined $100, while criminal penalties for possession up to two-and-a-half ounces will be replaced with civil citations.

Lawmakers also passed a bill that allows for the expungement of some prior cannabis convictions.

Starting July 1, adults 21 and older will be allowed to cultivate up to two plants for personal use at home, and up to four plants per household. At the earliest, adult-use sales could commence on July 1; however, when the General Assembly approved medical cannabis reforms in 2014, the first dispensaries in the state didn’t open until 2017.

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Missouri Legalizes Cannabis for Adult Use

11/09/2022

Missourians on Election Day voted to legalize cannabis for adult use by a 53%-47% margin. It marks the first time a mid-western state has backed an initiative to legalize cannabis for adults.

In a statement posted to Twitter, Legal MO 2022 Campaign Director John Payne noted the vote was also historic in that it is the “first state in the nation to automatically expunge past, nonviolent, marijuana offenses by a vote of the people.”

“This enormous step forward for criminal justice reform will result in hundreds of thousands of Missourians having their records cleared, at no cost to them, for an activity that is now legal. Missouri will see millions in new revenue pour in each year for veterans’ health care, drug treatment, and our severely underfunded public defender’s office. Today’s vote immediately puts an end to nearly 20,000 arrests each year for minor marijuana violations, freeing up vital law enforcement resources to fight serious and violent crime.” — Payne in a statement

The measure allows adults to possess up to three ounces of cannabis and to cultivate up to six flowering plants, six immature plants, and six plants under 14 inches at their homes for personal use. At the earliest, sales to adults could begin by Feb. 6, 2023. The Missouri Department of Health and Senior Services will oversee the new industry and is tasked with awarding adult-use licenses to established medical cannabis facilities.

Adult-use cannabis will be taxed at 6%, the Kansas City Star reports. Officials estimate the industry will cost the state about $5.5 million each year but bring in at least $40.8 million in annual revenue. It is expected to cost local governments at least $35,000 each year but bring in at least $13.8 million per year.

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Colorado Psychedelic Reform Initiative Too Close To Call

11/09/2022

The vote to decriminalize and regulate some psychedelics for adults 21 and older in Colorado is still too close to call, according to New York Times figures, which show 51%-49% in favor with 80% of the vote counted. Under state law, a recount is triggered when a margin of victory is less than or equal to 0.5% of the winner’s vote, The Denver Post reports.

The measure aims to legalize psilocybin and psilocin, two compounds found in “magic mushrooms,” for use in therapeutic settings and create “healing centers” where adults 21 and older can use the substances under the supervision of licensed professionals.

The measure would also decriminalize the personal cultivation, use, and sharing of psilocybin and psilocin, as well as ibogaine, mescaline, and DMT, for adults.

Oregon is the only other state to legalize psychedelics for therapy after voters approved the reforms in 2020. Similar reforms were also approved that year by voters in Washington, D.C. In 2019, voters in Denver decriminalized possession of psychedelic fungi, becoming the first U.S. city to do so.

In the statewide vote, neither advocates nor opponents have claimed victory and the vote tally will continue throughout Wednesday.

Natural Medicine Colorado, which got Proposition 122 on ballots, spent nearly $4.5 million through October 26, while raising $6 million through Monday, the Colorado Sun reports.

New Approach, a political action committee, and the Center for Voter Information each donated $1.2 million to Natural Medicine, according to campaign finance reports outlined by the Sun. Natural Medicine donated $224,000 to another super PAC called Rocky Mountain Voter Guide, which published an online voting guide backing the measure.

Protect Colorado’s Kids, the main opposition, raised about $51,000 from the nonprofit of the same name against the measure, with most of the spending going to a digital advertising and texting campaign.

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1. Educational Videos

2. Customer Testimonials

3. Behind-the-Scenes Videos

The Time for Video is Now

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