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The Armoire: Empowering Beginner Cannabis Home Growers

11/03/2022

The Armoire is a self-contained, discreet bio chamber built for home growing a single oversized autoflower cannabis plant. Manufactured and distributed by e-commerce company Green Goddess Supply, The Armoire is made from waterproof, fire-retardant, and mold-resistant PVC polymer. The outer layer is coated with a vinyl veneer which gives the appearance of a wooden finish and the door is childproof locked. It uses a 13 Spectrum, high PAR, low-heat proprietary LED light specially designed to include a knob that controls photosynthetically active radiation (PAR). The 13 spectrums are ideal for The Armoire method and inhibit mold growth and deter unwanted pests. The feet were an additional ergonomic feature that allows home growers to pull up a chair and sit while tending to their plant, instead of bending over or crouching.

“We’re a seed-to-consumption company, so our mission is to empower everyone to grow simply, easily, conveniently, and also to be able to then have whatever they need to harvest, whatever they need to consume, storage, everything,” said Green Goddess COO Vince Bitetti. Bitetti met CEO Eric Robichaud while the pair worked at his high-profile gaming company. Knowing the serial entrepreneur was involved in the cannabis industry, Bitetti approached Robichaud with his idea.

Bringing The Armoire to life was a decades-long process that began in the 70s while Bitetti studied botany in college. He kept getting seeds in his bag of weed, plump brown ones with black tiger stripes. With his background in botany, he figured he’d start planting them in his backyard. Unfortunately, the city of Los Angeles sprayed an insecticide to battle a fruit-fly infestation, which dusted the whole crop. That experience inspired him to start growing his plants indoors. In the 1980s, after seeing him successfully cultivate good flower, his friends started asking him for instructions on growing just a single indoor plant, which wasn’t easy to do at the time. Dialing in the process remained a passion project throughout years of running his own software company, and then the day came when he approached Robichaud about The Armoire prototype. As soon as Robichaud saw it, the CEO said: “Let’s do it!” The pair continued developing the grow box for four years and eventually acquired a U.S. patent for the technology.

“The patent demonstrates the measurable, definable difference of our home grow cabinet versus home grow tents and other gadgets,” Robichaud said.

Robichaud hadn’t grown cannabis before using The Armoire but now he’s one of the most prolific growers in The Armoire family. And it does feel sort of like a family because of the supportive Concierge Support Service, which comes with purchasing a unit. Bitetti and East Coast Concierge Kyle Hamilton speak with their grower clients on a regular basis via phone, video calls, texting, and email to teach their method, ensure the process is dialed in, and — as was the case for me — help guarantee success. Bittetti said it’s an essential component of the product: “The Armoire as a product really has three key components that work together: it’s part hardware, part process, and part Concierge Support Service. It’s the combination of all three that makes it work.”

The first 90 days of the Concierge Support Service are complementary and from there, growers can purchase an extended support plan. I, someone who has tried and failed to grow a proper cannabis plant a few times, was sent an Armoire and assisted by the Concierge Support Service from sprout to harvest. And it went well, although I’m confident it wouldn’t have been possible without the Concierge Service Support.

Green Goddess had all of the supplies that I needed to get started, including a seed with solid genetics. Three days after planting, my seed sprouted. As soon as I saw the sprout, I started sending Bitetti a weekly photo of the plant. That’s how I learned firsthand that he was adept at diagnosing cultivation issues with just a picture. In the first week, my settings weren’t correct and he identified it based on the slight droopiness of the leaves. Once he noticed that, I was quickly in touch with the right person to help me adjust the settings and get the plant back on track. It was impressive how in tune with the plant Bitetti is, and he is adamant that everyone can do this whether they’re an expert or not. “You have to figure out what the plant needs by how it looks, it’s not hard once you do it a couple of times.”

The goal is to make growing in The Armoire as simple as growing a houseplant: “We want people to be able to do it easily, simply, and efficiently. After two or three grows, they are off and running,” Bitetti said.

Some may want a less expensive option, so Green Goddess has released the ATS-42 Grow Tent System, designed to use the same ‘High Yield + Easy Grow’ protocol as The Armoire and it includes a year of Concierge Support. This grow tent is larger, which is less discreet, but it’s half the price and can grow 2-4 plants at a time. It is a good option for someone looking for the same protocol and Concierge Support Service as The Armoire but at a more entry-level price.

The Armoire was a better fit for me, and I ultimately harvested two large mason jars filled to the brim with sparkling, dark purple buds of Black Strap from my first plant in the grow box. I am confident that I walked away from the experience with the tools to do even better next time. The bio chamber itself is nice and easily nestled into the corner of my living room where it exists without being an eyesore, but it’s not completely discreet while running. The chamber does make a persistent low fan noise while it is active, something every guest I had over would inquire about. For my next plant, I plan to put the unit where a humming sound wouldn’t be a bother.

The Armoire is worth the investment for someone interested in growing their own high-quality cannabis, and especially so for patients who want expert assistance in the production of their plant medicine. To learn more about The Armoire and other Green Goddess Supply offerings, visit greengoddesssupply.com

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Eteros Technologies Acquires Bloom Automation

11/03/2022

Automation Leader Eteros Acquires Bloom to Deliver Ground-Breaking Computer Vision and Artificial Intelligence to the Cannabis Industry

Las Vegas, NV, November 3, 2022 — Eteros Technologies USA, Inc., a global leader in cannabis harvesting equipment, acquired Bloom Automation, creating the first agricultural technology (Ag-tech) company focused on the post-harvest cannabis market.

Founded in Canada in 2016, Eteros Technologies is now the premier manufacturer of cannabis automation equipment globally. As the parent company of the Triminator and Mobius brands, Eteros seeks to provide post-harvest processing solutions for all levels of cannabis production. The acquisition of Bloom strengthens Eteros’ ability to deliver on that goal by bringing computer vision and artificial intelligence (AI) to cannabis producers.

Although Ag-tech has been one of the fastest-growing sectors in conventional farming and is expected to top 15.3 billion in 2025, Ag-tech in cannabis is still in its infancy. Eteros hopes to change this with the acquisition of Bloom. “As competitive as the cannabis market is today, this is only expected to increase as the market matures. In cannabis, there are so many areas where producers use manual labor because they need human intelligence. At Eteros, we see a tremendous opportunity to implement Bloom AI into harvest automation to gain a competitive advantage. By combining Bloom’s technology with Mobius, we can equip operators with a powerful new data set to help them make better decisions and enhance their level of automation,” said Aaron McKellar, CEO of Eteros.

This Ag-tech integration comes at a critical time for cannabis cultivators facing price reductions of up to 62% in mature markets like Colorado. These price reductions are forcing cultivators nationwide to evaluate their harvesting methods. Although many of the processes have been mechanized previously, Eteros believes that integrating Bloom technology, which uses a sensor array and AI-driven algorithms to collect data, will improve the precision, accuracy, and efficiency of existing automation. In addition, the technology will enable an entirely new wave of processing capabilities, including defoliation, harvest weight predictions, pathogen identification, and foliage density assessment, which was one of the main drivers for the acquisition. “Our mission has always been to bring AI and robotics to all areas of the cannabis industry. By joining Eteros, we can seamlessly create intelligent automation across a broad ecosystem of new and existing products,” said Jon Gowa, the CEO of Bloom.

With a shared vision for empowering cannabis farmers with actionable data, Eteros and Bloom expect to quickly begin offering turn-key AI automation across a broad spectrum of applications. For more information, contact Eteros at info@eteros.com.

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St. Louis Mayor Opposes Cannabis Legalization Initiative

11/03/2022

St. Louis, Missouri Mayor Tishaura Jones on Tuesday came out in opposition of the ballot initiative to legalize cannabis in the state, describing the proposal as inequitable and once it’s in the state constitution, “it can be difficult to alter,” the Missouri Independent reports.

“If we choose the path of a constitutional amendment to resolve the matter of legalization, it would have to be forward-thinking, flexible and most of all, equitable. This amendment fails to meet that lofty aim. Simply put, legalization does not equal decriminalization.” — Jones, in a statement, via the Independent

Jones’ opposition comes about a month after Democratic state Rep. Ashley Bland Manlove formed the Impactful Canna Reform Coalition to oppose the reforms. Bland Manlove, the chair of the Missouri Legislative Black Caucus, said she formed the group along with “like-minded community partners” because they realized “people from politicians to Bob on the street didn’t know the details” on the proposed constitutional amendment.

“The capitalism monster loves to exploit you,” Bland Manlove said last month when announcing the formation of the organization, “and that is what’s happening with this petition.”

The measure is also opposed by the Missouri NAACP. Both groups argue that, if approved, the amendment will create a “permanent exclusion” of minorities from the state’s cannabis industry.

Freedom Inc., a Black-led civil rights organization from Kansas City, and STL Power Project – which backed Jones’ election – are backing the reforms.

Rodney Bland, president of Freedom Inc. told the Independent, “Every day that goes by where cannabis is still illegal in Missouri, is a day when justice is not being served.”

The legalization amendment also recently received support from the Law Enforcement Action Partnership (LEAP), which is a non-profit group of criminal justice professionals, including police, prosecutors, and judges that aims to mobilize law enforcement in criminal justice reforms that promote public safety.

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Caroline Yeh: Standing Out With Savory Cannabis-Infused Snacks

11/02/2022

While infused edibles make up a larger cannabis market share year after year, gummies, chocolates, and candies still frequently dominate dispensary shelves. TSUMo Snacks chose to go another route with the release of savory edibles including zesty ranch chips, hint-of-lime chips, fiery hot and cheese crunchers, and now Uncle Snoop’s Snazzle-Os — because Snoop is “more of a Funyuns guy.”

Co-founder and CEO Caroline Yeh worked in the cannabis industry for more than six years before launching TSUMo — prior to that, she had a seasoned run in edible CPG. This interview dives into what led Caroline to start her own company, the process of infusing and developing the company’s savory edibles, and more!

Find the full interview below:

Ganjapreneur: How did you know that it was time to start your own company after working for other consumer packaged goods brands?

Caroline Yeh: I just happened to be in the right place at the right time. I had just left my job at Kiva at the end of January 2021. I was extremely burned out after everything with COVID, and had planned on taking a solid 6 months off to refocus and reevaluate. But the opportunity to lead TSUMo became available, and it was one I couldn’t turn down. I was back at work by mid March.

Why do you think savory cannabis edible products don’t take up more retail shelf space?

They’re actually pretty hard to make, and require a good amount of start-up capital, which a lot of smaller businesses can’t afford to do. Having been in cannabis for 6+ years, I know our industry tends to be very risk-averse — we don’t often jump into new categories or try to create new products, unless someone else has proven success in it first. We’ve seen that with chocolate, gummies and now beverages. Even though these types of savory edibles existed in the medical market, they were difficult to produce in the legal market, and people started to forget that it was even an option.

What is the significance of the capitalized letters in the brand name TSUMo Snacks?

It’s just a fun play on “tsunami.” The name originates from the idea that we bring a “tsunami of flavors,” so capitalizing the letters gives a visual representation of that.

What inputs are used to infuse TSUMo products? Were there challenges in ensuring each chip was precisely dosed?

We use distillate to infuse. And EACH chip is NOT precisely dosed, that’s basically impossible. The dosing is done over a serving size. For example, our 10 mg bags are dosed to the weight of the product, which is 1 oz.

Does the company have its own manufacturing facility or use a third-party manufacturer?

We are a not-plant-touching company, and as such, use a third party co-man.

How does TSUMo educate retail staff when onboarding a new store or releasing a new product?

We do a lot to educate retail staff. It starts with budtender trainings, which are conducted by TSUMo staff. We also reinforce this with a mobile education platform called Zoltrain. We provide samples to staff, and every time we’re back in the store conducting demos we’re educating not only the customer, but also the staff. In fact, the staff has often been the most excited about our demos, and has been overwhelmingly supportive of the brand.

What advice would you give to a brand that is currently seeking funding?

It’s a tough time to be raising. If you can hold off on raising in this economic environment, I would advise you to do that. We were very fortunate that the timing of our raise occurred before the current economic situation fully developed, and I’m sure it would have taken much longer to obtain the funding that we are so fortunate to have now.

How did you know that Casa Verde was the right finance partner?

Given the history of Casa Verde as a leader in investing in the cannabis space, and its experience investing in brands, there was no question that this was a partner that we wanted to work with. And with its deep connections in the cannabis space, we are incredibly fortunate to work with Casa Verde.

When did the brand start developing the Snoop Dogg Snazzle-Os collab?

As the largest LP in Casa Verde, Snoop was already an owner in TSUMo Snacks. However, when he first tried our products, his response was that he was more of a “Funyuns guy,” so we set out to make Snoop our version of Funyuns.

Was Snoop involved in the product development and/or branding of TSUMO Snazzle-o’s collab?

Yes. Snoop had final sign-off on the product, packaging and all the way through to the press release.

How does the product development process differ when releasing a new product versus a collab product?

With a collab product, it’s more complicated, because you’re waiting on feedback and sign-off from the other party. And it’s not just the product, but also the branding, packaging and other elements involved in releasing a product. So it’s certainly more time consuming than just creating and releasing a product on our own. However, it’s also amazing to get direction and feedback from outside parties, which pushes us past our comfort zone. I think that’s a really good thing.

What do you think the future of cannabis-edible CPG will look like?

At TSUMo, we dream of a future where edibles are the largest category in cannabis. At first, that might seem silly, because edibles currently make up only around 15% of the cannabis market. But we hope that with wider adoption, destigmatization, federal legalization and other major changes to our nascent industry, consuming cannabis edibles will be the most popular consumption method. After all, we all eat and drink, so it’s the most familiar consumption method for the vast majority of consumers.

Is the brand working on any new flavors or products for 2023?

Yes. I have always said that TSUMo doesn’t just make savory chips – we are a snack platform. And are open to exploring all snacking categories, provided that it’s not chocolate or gummies.

Thank you, Caroline, for answering our questions! Learn more about TSUMo Snacks at tsumosnacks.com.

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Jim Belushi Opens Retail Cannabis Dispensary on Tribal Land in Upstate New York

11/02/2022

A business in partnership with actor Jim Belushi’s cannabis company was awarded a license to sell cannabis on Saint Regis (Akwesasne) Mohawk Tribe territory in upstate New York. Belushi’s Farm Akwesasne, majority owned by Zachary Oakes, will operate as a license partner of the Oregon-based Belushi’s Farm, which has additional license partners in California, Colorado, Oklahoma, Illinois, Massachusetts, and other states.

The fees collected from the retail sale of cannabis products help support community programs and services for the Tribe and its members, the Saint Regis Mohawk Tribal Council said in a press release.

A tribal spokesperson told Syracuse.com that there are now at least a dozen licensed adult-use dispensaries on Akwesasne territory. The Tribe began issuing licenses last year after several unauthorized shops opened following the legalization of cannabis in New York. The state has not yet issued licenses for businesses under the purview of the state but last week released regulations for Conditional Adult-Use Retail Dispensary licenses, including guidance for in-house, drive-thru, and delivery options.

Belushi was previously a cast member of “Saturday Night Live,” appeared on “Twin Peaks,” and was the star of the television series “According to Jim.” He’s also appeared in the films “Trading Places” and “Only the Lonely.” His Oregon cannabis farm was featured in a Discovery Channel series called “Growing Belushi.”

Belushi was present at the October 27 ribbon-cutting and grand opening of the location along with members of the tribal community and government.

Editor’s note: A previous version of this article incorrectly said Belushi’s Farm was awarded the cannabis retail license by Saint Regis (Akwesasne) Mohawk tribal authorities but the license is actually held by Belushi’s Farm Akwesasne, owned by Zachary Oakes.

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Cannabis Legalization in Hawaii Could Amount to $50M Annually

11/02/2022

The Hawaii Tax Department estimates that cannabis legalization would amount to $50 million annually for state coffers, Hawaii News Now reports. But State Rep. Ryan Yamane (D), who sits on the government’s Dual Use of Cannabis Task Force, said the funds would not be enough and “difficult to use in order to establish a new program.”

Yamane indicated that $50 million annually may not be sufficient for the state to hire employees for the program, or for monitoring the new industry.

As of September 30, there were 33,725 medical cannabis patients in the state with eight licensed dispensaries. According to Tax Department data, the industry generated $2.5 million in taxes over the last fiscal year.

The Dual Use Task Force has so far held nine public meetings on the topic of adult-use legalization and is still gathering information to report back to lawmakers. Yamane said the task force wants “to dispel some of the myths and find out what is fact.”

Randy Gonce, director of the Hawaii Cannabis Industry Association, said the state is the closest it’s “ever been to legalizing cannabis” in its history.

In 2020, Hawaii decriminalized low-level cannabis possession, making possession of fewer than three grams punishable by a $130 fine. It is the smallest personal possession threshold limit enacted by any state. Previously, getting caught possessing any cannabis in Hawaii was punishable by $1,000 fines and 30 days in jail.

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Report: Florida Medical Cannabis Patient Base Grew 25% in FY2022

11/02/2022

According to the Physician Certification Pattern Review 2023, Florida’s medical cannabis market expanded in the fiscal year 2022, Florida Politics reports. There were 546 million ounces of cannabis sold to 757,600 qualifying patients during that time, representing a patient count increase of 25%.

Florida patients are categorized into the types of cannabis, low-THC, and high-THC, their doctor recommends, and the method of administration, either edible, inhalation, oral, smokable, sublingual, suppository, or topical. Depending on the consumption type, patients are eligible to purchase up to a 35-day or 70-day supply at a time. For low-THC cannabis, including edibles, inhalation, and oral, demand increased by 7%; sublingual increased by 8%; while suppositories and topical increased by 11%, the report says.

High-THC cannabis administered through inhalation and oral increased by 9%, while edibles grew by 10%. Three other categories saw double-digit increases with the sublingual, suppository, and topical coming in at 11%, 13%, and 16%, respectively.

Additionally, the Review found patients ordered 540 million ounces of smokable cannabis last fiscal year with an average purchase size of 2.47 ounces, up from 2.46 ounces in the prior fiscal year. Patients in 18 counties ordered on average the maximum amount of smokable cannabis allowed, 2.5 ounces, the report says.

The Review found that although the number of physicians certified to recommend medical cannabis in Florida fell by 4% to 2,144, the number of physicians who used their certification rose by 4% to 1,725. On average, qualified doctors had 662 medical cannabis patients in their care; however, one doctor issued 32,686 recommendations.

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South Dakota Cannabis Advocates Seek to Determine Whether State Officials Broke Law By Speaking Out Against Legalization Measure

11/02/2022

The organization that backed South Dakota’s successful medical cannabis initiative in 2020 has sent information requests to government offices throughout the state to determine whether officials have broken state law by publicly opposing this year’s adult-use legalization measure, Dakota News Now reports.

Per South Dakota law, government officials may speak their opinion on candidates or ballot measures in their personal capacity but may not influence the election of a candidate or ballot initiative in their official capacity, and doing so is a felony.

New Approach SD Deputy Director Ned Horsted told Dakota News Now that the decision to press forward with the inquiry was “not an easy one.”

“We’re submitting public record requests for multiple political officials throughout the state. And the decision to do that was not easy. These are dealing with a very powerful political establishment in the state. … However, under the South Dakota Constitution, they are not allowed to use taxpayer resources to promote a political agenda.” — Horsted to Dakota News Now

The group sent information requests to Sioux Falls Mayor Paul TenHaken, Minnehaha County Sheriff Mike Milstead, Rapid City Mayor Steve Allender, and others. The trio was among the speakers at a press conference in Sioux Falls last week. New Approach’s information requests are seeking to see whether those officials were “on the clock” and speaking in their official capacity or using government social media pages while speaking against the ballot measure.

The group’s inquiries were also sent to the Pennington County Sheriff’s Department; the Minnehaha County Sheriff’s Department; the Box Elder Police Department; Rapid City Mayor Steven Allender; Protecting South Dakota Kids; the South Dakota Police Chiefs Association; Jim Kinyon, executive director of Catholic Social Services; the South Dakota Catholic Association; Next Generation Leadership PAC Administrators; State Rep. Fred Deutsch; Sen. John Thune and his staff; Gov. Kristi Noem, her staff, and her Communications Director Ian Fury; State Rep. Scott Odenbach; State Rep. Doug Barthel; State Rep. Carl Perry; State Sen. Al Novstrup; Lt. Gov. Larry Rhoden and his staff; State Sen. Helene Duhamel; Pennington County Sheriff Kevin Thom; Minnehaha County Sheriff Mike Milstead; Pennington County Sheriff’s Deputy Brian Mueller; Meade County Sheriff-Elect Pat West; and Rapid City Assistant Police Chief Scott Sitz.

TenHaken told Dakota News Now that he is protected under the First Amendment and allowed to voice his opinion on ballot measures.

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Canopy Growth Announces ‘Fast Track’ Plan Into U.S. Market

11/01/2022

Canadian cannabis company Canopy Growth Corporation last week announced it plans to “fast track” its entry into the U.S. market. The company said it is consolidating its U.S. assets into a new holding company, Canopy USA LLC.

David Klein, Canopy CEO, said the strategy enables the firm to “take control” of its own destiny “and capitalize on the once-in-a-generation opportunity in the largest cannabis market in the world.”

“We expect to unleash the full power of Canopy’s scalable and ideally-positioned U.S. cannabis ecosystem to unlock potential expansion opportunities. This strategy and positioning are true differentiators, which we expect to enable our investors and brands to realize value in the near term while positioning Canopy for profitable growth and a fast start upon U.S. federal permissibility.” — Klein in a press release

The U.S. cannabis market is expected to reach $50 billion by 2026, according to MJBiz data outlined by Canopy.

Canopy’s U.S. portfolio includes Acreage Holdings Inc.; the option to acquire Moutain High Products LLC and its Wana brand; and the option to acquire Jetty, a top 10 California brand.

The firm also has the option to exercise warrants on approximately 13.7% of TerrAscend Corp.

Constellation Brands, the spirits giant that acquired a stake in Canopy in 2017 for $190 million, said it planned to transition existing common shares ownership interest in Canopy into new exchangeable shares, which would protect “Constellation shareholder value while retaining an interest in Canopy Growth through non-voting and non-participating shares.”

Bill Newlands, Constellation’s president and CEO, said the company believes the conversion “will maintain Constellation’s ability to realize the potential upside” of its investment in the cannabis firm.

“At the same time, this transaction and the surrender of our warrants are expected to eliminate the impact to our equity in earnings, mitigate risk to our organization, and further reinforce our intent to not deploy additional investment in Canopy aligned with Constellation’s previously stated capital allocation priorities,” he said in a statement.

Collectively, Canopy’s footprint currently spans 21 states, including Arizona, Arkansas, California, Colorado, Connecticut, Florida, Illinois, Maine, Maryland, Massachusetts, Michigan, Missouri, Nevada, New Hampshire, New Jersey, New Mexico, New York, Pennsylvania, Ohio, Oklahoma, and Oregon.

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MCBA to Hold Cannabis Industry Phone Bank In Support of Pennsylvania Senate Candidate John Fetterman

11/01/2022

October 31, 2022 – Washington, D.C. — The Minority Cannabis Business Association (MCBA) in partnership with All-In Pennsylvania, a coordinated campaign for PA Democrats and other industry trade groups, will hold a Cannabis Industry Phone Bank this Thursday, November 3 at 5:30pm ET in support of Senate candidate John Fetterman.

MCBA is calling on all cannabis industry employees, operators and supporters to join us on Thursday as we launch a virtual kick-off for All-In Pennsylvania’s phone bank to help drive voter turnout and expand the Democratic Senate majority.

“Next week’s election will determine a lot for the future of our country, including whether we’ll be closer or farther away from 60 votes for any cannabis legislation in the Senate. John Fetterman understands the damage cannabis prohibition has brought on Black and Latino communities and will fight to right those wrongs,” said Kaliko Castille, MCBA Board President. “I encourage all cannabis industry participants and operators to support pro-cannabis candidates across the country when they go to vote next week.”

All-In Pennsylvania has phone banks operating from 9am to 9pm ET on Saturdays and 12pm to 9pm ET on Sundays. The MCBA kick-off event will inform volunteers on the phone banking protocols to engage voters. Cannabis policies are on the line if we do not support candidates that are willing and eager to expand our industry through laws that will create a robust, diverse and equitable cannabis market. Tap HERE to join the virtual kick-off via zoom.

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Minority Cannabis Business Association
Founded in 2015, the Minority Cannabis Business Association (MCBA) is the largest national trade association dedicated to serving the needs of minority cannabis businesses and our communities. MCBA represents more than 300 minority and allied cannabis businesses and industry and community leaders who share a vision for an equitable, just, and responsible cannabis industry. Our mission is carried out by a 15-member Board of Directors composed of a diverse group of industry veterans, medical and legal professionals, advocates and community leaders. Learn more by visiting our website www.minoritycannabis.org

Contact:

Kaliko Castille, Board President

kaliko@minoritycannbis.org, 503-553-9955

Precious Osagie-Erese, Communications Manager

Precious@minoritycannabis.org, 973-874-3193

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New Jersey Assembly Approves Bill to Let Cannabis Licensees Take Business Deductions

11/01/2022

The New Jersey Assembly has passed a bill that will allow licensed cannabis businesses to deduct certain expenses from their state tax filings, Marijuana Moment reports. The law, which still needs to pass the Senate before going to the governor, is in contrast to the federal tax code known as section 280E, which does not allow companies working with Schedule I or II narcotics to take advantage of federal tax write-offs.

Sponsored by Assemblymember Annette Quijano (D), the bill passed the lower chamber 60-6 a month after it was introduced in committee. The bill dictates that the gross income of New Jersey cannabis businesses “shall be determined without regard to section 280E of the [federal] Internal Revenue Code,” the report says.

A fiscal analysis by the New Jersey Office of Legislative Services found the change may “result in an indeterminate annual loss of revenue” to the state as cannabis businesses’ tax burdens fall, and, on the provide “access to these deductions and credits may also help generate more economic activity by cannabis businesses,” while increasing revenue for “the state and local governments that tax cannabis businesses might indirectly realize an indeterminate amount of additional annual revenue.”

New Jersey passed adult-use cannabis reforms in 2020 via a legislature-approved ballot measure. It had regulations in place for the new system by August 2021 and by April 21, 2022, began selling cannabis to adults over 21.

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Another Poll Finds Majority Support for Cannabis Legalization in Maryland

11/01/2022

Another poll has found strong support for Maryland’s cannabis legalization ballot initiative, with 63% of likely voters in a Baltimore Sun Media and University of Baltimore poll backing the reforms. The survey found that 25% of respondents opposed the reforms with 12% unsure.

If approved by voters next week, adults 21 and older will be allowed to possess up to 1.5 ounces of cannabis and grow their own cannabis at home starting July 1, and, eventually, buy from licensed retailers. Maryland legalized medical cannabis in 2013 but the first dispensary didn’t open until 2017.

The poll found a slight majority of Republicans approve the reforms – 54% – along with 69% of Democrats polled. The survey of 562 Democratic, 247 Republican, and 180 unaffiliated likely voters was conducted by phone and online from October 20-23. The poll has a margin of error of plus or minus 3.1 percentage points.

A Goucher College Poll from September found that 59% of Maryland voters planned to back the reforms, with 34% opposed and 7% undecided. A Washington Post and University of Maryland poll released earlier this month found that 74% of voters said they planned to vote ‘yes’ on the legalization question with 23% opposed.

The legalization question is set for a statewide vote after state lawmakers passed House Bill 1 in April, which created the Constitutional Amendment that voters will consider.

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50 New York & New Jersey Cannabis Businesses Ask Chuck Schumer for ‘Restorative Justice Provisions’ on SAFE Act

11/01/2022

A cadre of New York and New Jersey cannabis businesses last week sent a letter to U.S. Senate Majority Leader Chuck Schumer (D-NY) urging him to bring the SAFE Banking Act up for a vote and include “potential restorative justice provisions” in the bill.

The letter, which includes 50 businesses as signatories, applauds Schumer’s leadership, along with Sens. Corey Booker (D-NJ) and Ron Wyden (D-OR), in introducing the Cannabis Administration and Opportunity Act (CAOA) but rightly warns that “the current political environment in Congress will preclude the CAOA from becoming law before the end of the year.”

“Therefore, we ask that you champion proposals that can get the necessary bipartisan support to become law and provide small operators and aspiring entrepreneurs the relief and opportunities they need to support or launch a new cannabis business,” the businesses request in the October 28 letter.

The signatories note that cannabis business startup costs can range from $150,000 to $2 million due to fees, real estate prices, insurance, security, and regulatory costs. Additionally, the authors state, many social equity operators are charged “exorbitant rates” from 20-40% by private investors “if they are even able to raise funds in the first place.”

The letter contends that the lack of access to basic and essential banking services is “blunting the impact” of social equity programs instituted by some states and exposes them to security risks.

The groups also argue that some states’ social equity programs have preconditions that are “far too restrictive” as some programs require applicants to prove they have had, or currently have, a profitable business, years of financial statements, and “other preconditions that are difficult for those with an old criminal record to obtain.”

“While the SAFE Banking Act is not the solution to all of these issues,” the letter states, “we firmly believe that if paired with restorative justice measures that remove past convictions as a barrier, thousands of people trying to enter or survive in this industry would have a fighting chance to be successful.”

Since Democrats took control of both the House and Senate and White House in 2020, they have been so far unable to pass any meaningful cannabis-related legislation through both chambers. Earlier this month, President Joe Biden (D) issued a pardon for federal cannabis possession cases, while urging state governors to issue their own pardons.

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Survey: 71% of Americans Believe Cannabis Improves State Economies

10/31/2022

A survey by Real Estate Witch found that 71% of Americans believe cannabis legalization improves states’ economies and that while just over half – 52% – of respondents would consider buying a home next to an adult-use cannabis dispensary, 69% said they would buy a home within a mile of one.

Seventy percent of those surveyed said they would pay fair market value or above for a house near cannabis-related entities, with 56% saying they would buy a home next door to a medical cannabis dispensary.

The survey of 1,000 Americans also found 37% of respondents most commonly referred to cannabis as “weed” – the highest number – followed by “marijuana” (33%), “cannabis” (12%), “pot” (10%), “bud” (4%), and “ganja” (2%). Just 1% of respondents referred to cannabis as “herb” or “reefer,” with 0.6% calling cannabis “grass.”

Eight percent of respondents said cannabis legalization was the more important issue in the U.S. today: inflation ranked first, while LGBTQ rights were the only issue covered which ranked lower than cannabis among those surveyed. es

A supermajority of respondents said they would vote to legalize both medical cannabis (84%) and adult-use cannabis (70%). Fifty-nine percent of respondents who said they do not support cannabis legalization in any form also admitted they do not feel knowledgeable on the topic of legalization.

Another 41% of those surveyed believed that migration would occur toward states that have approved adult-use cannabis reforms. Twenty-seven percent of respondents believe cannabis legalization increases home values where it’s legal while one in six wrongly believe legalization decreases home values.

Less than half – 48% – of those surveyed say they strongly support expunging nonviolent, cannabis-related records of convicted offenders; however, 84% of those who say they support full cannabis legalization also support removing or expunging records of convicted offenders. That makes full-legalization supporters five times more likely than those who don’t support legalization in any form to approve of expunging records.

Only 17% of those who don’t support legalization in any form support expunging records.

In all, the survey found that 19% of respondents strongly supported keeping cannabis illegal at the federal level, followed by 11% who “somewhat” support keeping it illegal federally.

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California Cannabis Industry Association Warns of Hemp-Derived Cannabinoid Dangers

10/31/2022

The California Cannabis Industry Association (CCIA) has published a white paper that describes the national market for intoxicating hemp products as a growing public health crisis. The article, Pandora’s Box: The Dangers of a National, Unregulated, Hemp-Derived Intoxicating Cannabinoid Market, argues that while most industry stakeholders assumed the 2018 Farm Bill would regulate nonintoxicating hemp-derived cannabinoids like CBD, “loopholes in the federal definition of hemp are being exploited … to sell extremely potent, often chemically synthesized intoxicants that are more powerful than anything available in licensed cannabis dispensaries.”

When the 2018 Farm Bill legalized industrial hemp nationwide, the move not only legalized hemp agriculture but also the plant material and all of its byproducts. The issue CCIA highlights stems from a Ninth Circuit Court ruling in May that products containing delta-8 THC — a rare cannabinoid that is chemically similar to delta-9 THC, the cannabinoid most commonly associated with the intoxicating effects of cannabis, but which has been researched far less than other cannabinoids — technically meets “the statutory definition of industrial hemp.”

“Intentionally or not, the 2018 Farm Bill left the barn door open and so-called ‘hemp’ manufacturers have run right through it, creating a rapidly growing market for dangerous intoxicants.” — Tiffany Devitt, the paper’s primary author and CCIA board Vice President

The paper outlines and recommends four steps to help remedy the issue:

Create a unified federal framework for regulating intoxicating cannabinoids, which would include the federal regulation and legalization of cannabis and normalizing the regulations for all plants being grown for cannabinoid content.
Congressional action to close “unintended loopholes” in the Farm Bill for the unregulated sale of intoxicating cannabinoids.
Action by the FDA to either approve or disapprove the commercial availability of any synthetic compounds from the plant material.
Enforce state laws around the country that prohibit the sale of intoxicating cannabinoids outside of state-regulated cannabis markets.

The CCIA white paper echoes sentiments from a Project CBD special report published in June which highlighted the potential for “hidden dangers” when manufacturers synthetically alter the cannabinoids in their products.

Earlier this month, a mother in Virginia was charged with felony murder and child neglect following the death of her four-year-old in May after he reportedly ingested a “large amount” of delta-8 THC gummies. State health authorities have ruled that while accidental, “the cause of death [was] delta-8 toxicity.”

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New York Issues Retail Dispensary Guidance

10/31/2022

New York regulators last week released regulations for Conditional Adult-Use Retail Dispensary licenses, including guidance for in-house, drive-thru, and delivery options. The rules include recordkeeping requirements and those for staffing, training, and hours of operation.

The rules also outline packaging restrictions, prohibiting fonts and images that could be “attractive to individuals under 21,” and products with “similarities to products or words that refer to products that are commonly associated with or marketed in a manner so as to be attractive to individuals,” according to the guidance. The regulations also ban the terms “candy” or “candies,” including variants such as “kandy” or “kandeez,” unless it is a strain name or licensee’s name, entity’s name, or doing business as name.

Licensees are also barred from misrepresenting their retail dispensary as a medical cannabis dispensary, and as such are unable to use the terms “drug,” “drug store,” “medicine,” “apothecary,” “doctor,” or “pharmacy”; including similar terms like “pharma-” or “medi-” along terms not included on the list that have the same meaning as the terms on the list.

Adult-use cannabis businesses will only be allowed to operate from 8:00am until midnight unless municipalities approve a local ordinance allowing operation beyond those hours.

Licensed businesses will be allowed cannabis products only obtain from licensed distributors, hemp products, cannabis paraphernalia, stationary, gifts, and “other minor incidentals,” and branded merchandise for the licensee’s brand (in adult sizes only). Businesses will not be allowed to sell branded merchandise for other brands and cannabis giveaway promotions are also banned.

Dispensaries cannot be on the same street or within 500 feet of school grounds, nor on the same street or within 200 feet of a building exclusively used as a house of worship, the guidance states.

State officials have not yet provided a firm date for adult-use cannabis sales to commence; however, earlier this month New York Office of Cannabis Management Director Chris Alexander indicated they could begin before the year’s end.

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Missouri Law Enforcement Group Calls for Voters to Pass Cannabis Legalization

10/31/2022

A Missouri law enforcement group is urging voters to back the adult-use cannabis legalization question on the upcoming midterm ballot, KMOV reports. The Law Enforcement Action Partnership (LEAP) LEAP is a non-profit group of criminal justice professionals, including police, prosecutors, and judges that aims to mobilize law enforcement in criminal justice reforms that promote public safety.

Retired Lt. Diane Goldstein, executive director of LEAP, said the organization has “watched as marijuana arrests and convictions taxed the resources of our local police departments and caused real harm to neighborhoods.”

“What people don’t see behind the scenes is that law enforcement has a duty to respond any time dispatch receives a call about these low-level marijuana offenses. They divert our attention from responding to and solving more serious crimes. These calls are a distraction and don’t serve the public interest.” — Goldstein via KMOV

John Payne, Campaign Manager for Legal Missouri 2022, the campaign behind the initiative, said passing the legalization law “will return critical resources to local police, but it will also bring new revenue streams to Missouri’s veterans.”

“The tax revenues will be used equally to support veterans’ services, pay for drug treatment and counseling, as well as fund public defenders,” he told KMOV.

Earlier this month, the Missouri State Highway Patrol filed a copyright claim against one of Legal Missouri 2022’s ads which featured an individual wearing the agency’s uniform. The claim led to the ads being pulled from YouTube.

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New California Cannabis Enforcement Taskforce Eradicates 7,500+ Plants

10/28/2022

California officials are continuing their aggressive crackdown on unregulated cannabis operators, announcing on Wednesday the eradication of 7,503 plants and more than 936 pounds of cannabis flower in enforcement actions between October 18 and 19. The Unified Cannabis Enforcement Taskforce (UCETF) said the plants and processed flower had an estimated value of nearly $8 million.

State officials announced the creation of the UCETF earlier this month which is co-chaired by the Department of Cannabis Control (DCC) and the California Department of Fish and Wildlife (CDFW) and is coordinated by the Governor’s Office of Emergency Services (Cal OES) through its Homeland Security Division.

The operation included 13 search warrants on unlicensed indoor cultivation operations in the Sun Valley suburb.

In a statement, DCC Director Nicole Elliott said the agency “works hard to support the transition of legacy operators into the legal market” but “have zero tolerance for this behavior.” She added the DCC will work with its “partners across the state, local, and the federal government to shut it down.”

“Criminal cannabis operators, like those we enforced against in this operation, jeopardize the health of their workers by using toxic chemicals to help fertilize indoor cultivations that undercut the legal market and present safety risks to consumers.” — Elliot in a press release

Charlton H. Bonham, director of CDFW, described the cultivation operation as “a perfect example of the disregard for health and safety and the lengths people will go to grow illegal cannabis.”

“This type of activity is a huge threat,” he said, “and detrimental to the burgeoning legal market we are working to support.”

Criminal investigations are ongoing, and the cases will be submitted to the Los Angeles County District Attorney’s Office. Cases for civil penalties may be submitted to the California Attorney General’s Office and the Los Angeles City Attorney’s Office.

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Supermajority of Alabamans Back Medical Cannabis Reforms

10/28/2022

A strong supermajority of Alabama voters favor medical cannabis as a recent Mowery Consulting Group poll conducted in partnership with the Alabama Medical Cannabis Association found 79% back the reforms with just 9% opposed, according to Alabama Political Reporter. The state’s medical cannabis law was signed by Republican Gov. Kay Ivey in May, just days after lawmakers approved the legislation.

In a statement, Alabama Medical Cannabis Association Executive Director Patrick Lindsey described the poll results as “a little better” than the organization expected.

“It shows both the need for the product, and that this process is establishing an industry that is here to stay.”— Lindsey, in a statement, via the Political Reporter

Medical cannabis is not yet available in Alabama as the state Medical Cannabis Commission is just starting to accept industry applications. The state is accepting licenses until December 30 but sales are not expected to commence until 2023.

David Mowery, Chairman of Mowery Consulting Group, said in a statement that the firm “rarely” sees the level of support “for a product or service that is not currently allowed in the state.”

“These are the types of numbers any politician would be happy to use as a vehicle for signature legislation,” he said in the statement. “Anyone wishing to revert the laws on this issue is going to have a tough row to hoe when it comes to the next election.”

During the last legislative session, state lawmakers on the Judiciary Committee approved a bill to decriminalize cannabis possession in the state, but that measure didn’t make it to the full chamber for a vote.

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Mississippi Officials Expect Patients to Have Medical Cannabis Access by Early 2023

10/28/2022

Mississippi regulators have issued medical cannabis licenses to medical practitioners, patients, dispensaries, cultivators, processors, laboratories, disposal companies, and workers in the two years since voters approved the reforms; but patients still don’t have access to products, the Clarion Ledger reports. Kris Jones Adcock, director of the Medical Cannabis Program, though, said patients should have access to products by the beginning of 2023.

As of Thursday, officials have permitted 406 patients, 117 practitioners, 138 dispensaries, 47 cultivators, eight processors, three disposal companies, two testing labs, and issued 491 work permits to businesses. The provisional licenses are valid for 120 days and allow the Mississippi State Department of Health to monitor the companies before issuing a long-term license.

State Health Officer Daniel Edney told the Ledger that he believes the state has “enough practitioners now to take care of the patients that are currently certified” but that officials “will be recruiting more.”

“We’re seeing increases every day in the number of practitioners that are interested in the program,” Edney told the Ledger, “and we’re seeing increases every day in the number of patients interested in the program.”

Edney added that officials are doing everything allowable under the state medical cannabis law “to keep diversion as low as possible” but that they “will not get that to zero.”

Mississippi’s medical cannabis law officially took effect on July 1. Under the program, patients will be allowed to purchase up to 3.5 grams of cannabis per day, or about three ounces per month. The law covers individuals with cancer, HIV/AIDS, sickle cell disease, terminal illness, and debilitating medical conditions that cause cachexia, chronic pain, seizures, severe or intractable nausea, or severe and persistent muscle spasms.

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Nevada Judge Rules Pharmacy Board Not Allowed to Regulate Cannabis

10/28/2022

A district judge in Clarke County, Nevada has ruled that the Nevada Board of Pharmacy is not allowed to regulate cannabis and must remove the plant and its derivatives from the state’s controlled substances list, the Nevada Independent reports.

“If the [pharmacy] board designates a substance as a ‘controlled substance’ but the designation falls outside the authority delegated by the Legislature, the designation is invalid,” District Court Judge Joe Hardy Jr. ruled.

This ruling comes on the heels of a September decision by the same judge that ordered the board to remove cannabis from the state’s drug schedule and focused on the board’s authority to regulate cannabis. The judge said he was waiting on the two sides to submit draft orders on October 5 to rule on the regulatory question, according to the report.

Attorneys for the plaintiff, the Cannabis, Equity and Inclusion Community (CEIC), on behalf of Antoine Poole, who was convicted of felony cannabis possession in 2017, argued that although Nevadans could purchase cannabis in dispensaries since 2000, the state continued to list the substance in the same categories as illicit drugs like heroin and methamphetamine, the Independent says.

After the first hearing in July, Athar Haseebullah, the executive director of the American Civil Liberties Union of Nevada (ACLU), which represented CEIC, said, “The notion that a state agency is able to engage in unlawful actions because it’s happening at the federal government – it’s just not the way it works.”

“They don’t work for the feds. We didn’t sue the DEA here. We sued the State Board of Pharmacy because this is a state action.” — Haseebullah, via the Independent

Judge Hardy said in his ruling, “the board exceeded its authority when it placed, or failed to remove marijuana, cannabis, and cannabis derivatives on its list as Schedule I substances.” He said medical cannabis is “enshrined” in Nevada law and that under a 2019 law, the regulation of cannabis falls to the state Cannabis Compliance Board.

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Ganjapreneur Partners with Outlaw Report for Cross-Platform Promotions

10/27/2022

Cannabis business journal Ganjapreneur has partnered with Outlaw Report, a platform focused on Eastern US and Washington D.C. cannabis policy and business developments, enabling advertisers and brands to leverage both audiences simultaneously. Cross-platform advertising campaigns will be coordinated through Ganjapreneur’s in-house creative agency, Blue Dream, which also offers branding, website development, packaging design, and lead generation for plant-touching and ancillary organizations.

Ganjapreneur CEO Noel Abbott described the partnership as “a great opportunity for any cannabis-focused or cannabis-adjacent advertiser to reach professional audiences in emerging markets. At Ganjapreneur we have national reach, but with Outlaw Report’s following in Maryland, Virginia, D.C., and surrounding states, we can now help brands be laser-focused about building awareness in these regions.”

Outlaw Report was founded in 2019 by John McGowan and Meredith Kinner of Kinner & McGowan PLLC, a Washington D.C. law firm primarily focused on providing counsel to cannabis businesses and startups. The Outlaw Report’s co-founders “are excited about this affiliation with Ganjapreneur and the opportunity it presents to expand the footprint of The Outlaw Report’s cannabis news coverage. This coverage will be even more important as the East Coast cannabis market continues to grow.”

In addition to a weekly newsletter providing informed context for regional news in the world of regulated (and unregulated) cannabis business, Outlaw Report also works with a network of freelance journalists to cover new policy developments and conducts occasional interviews with regulators, experts, and business owners.

To learn more about the advertising offerings available through Ganjapreneur’s partnership with Outlaw Report, cannabis industry marketers can request an advertising media kit through Ganjapreneur’s website.

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Germany Unveils Cannabis Legalization Plans

10/27/2022

Germany this week officially unveiled its cannabis legalization plans, allowing the possession of up to 30 grams of cannabis and regulated sales to adults, the Associated Press reports. There are still questions about whether the plan will be approved by the Cabinet as officials want to first be sure the legislation is compatible with European Union law.

Health Minister Karl Lauterbach said the legalization plan aims to combat illegal cannabis sales in the nation and that the government would tightly regulate the market. Under the plan, the “social effects” of the reforms would be examined after four years.

According to a draft plan outlined last week, THC in cannabis products would be limited to 15% and adults would be allowed to cultivate up to two plants for personal use. Individuals under 18 caught with cannabis would be exempt from criminal punishment but youth welfare officers could advise that young people participate in prevention courses and the cannabis would be confiscated, according to the draft document.

Following the release of the draft document, Niklas Kouparanis, CEO of Bloomwell Group, Germany’s largest cannabis company, warned that the THC limits “may play into the hands of the illegal market.”

Lauterbach has estimated that about 4 million adults in Germany consume cannabis.

Last month, German officials visited cannabis businesses in California. In a tweet, the German consulate in San Francisco said officials “examined products of dispensaries with equity licenses” to better understand “cannabis legalization opportunities and risks.”

In July, officials from Germany, Luxemburg, Malta, and The Netherlands discussed how Europe could move forward in legalizing adult-use cannabis.

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