Two Convicted in Ponzi Scheme Involving Cattle and Cannabis

9/01/2022

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Two people accused of running a $650 million Ponzi- like scheme involving cattle farms and cannabis have been convicted on a variety of charges, according to a report from Drovers, a beef industry trade magazine.

The pair — Reva J. Stachniw, 70, of Galesburg, Illinois, and Ron Throgmartin, 58, of Buford, Georgia — was convicted last week by a federal grand jury on one count of conspiracy to commit wire fraud, five counts of actual wire fraud, and one count of conspiracy to commit money laundering.

Court documents outlined by Drovers said the pair ran the scheme from 2017 to 2019 and that the victims were roped into the scheme with promises that their money was backed up by short-term investments in cattle. Victims were also solicited to invest in a fraudulent Colorado dispensary, Universal Herbs LLC. Prosecutors say the defendants made millions from the theft but used very little of their own money.   

“Other victim-investors gave the conspirators money based on false promises that investment money would be used for legitimate business activities related to cattle or marijuana, without having the investment money linked to specific investment opportunities.” — Federal prosecutors, via the Gwinnett Daily Post

Defrauded investors were promised returns of up to 10% to 20% in a matter of weeks. At no point were victim-investors told their money was being used to pay back other investors in the Ponzi scheme, the report says. 

The pair faces up to 20 years for each wire fraud case and 10 years for the money laundering charge. Their sentencing is expected on January 6, 2023.

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Missouri Democrat Launches Group Opposing Cannabis Legalization Ballot Initiative

9/01/2022

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A Missouri Democratic state representative on Tuesday announced the formation of the Impactful Canna Reform Coalition, a group opposing the ballot measure seeking to legalize cannabis in the state, the Kansas City Star reports. Rep. Ashley Bland Manlove 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, and that is what’s happening with this petition.” — Bland Manlove, in a statement, via the Star 

The question was approved for November ballots earlier this month and early data from the campaign suggests voters will pass the reforms. Impactful Canna Reform Coalition is criticizing the amendment for not offering social equity provisions and for civil penalties included in the question, including a $100 fine for smoking cannabis in public, the report says.

The group includes the founders of the Kansas City-based WyldKard Lyfestyle Veteran Creative Lifestyle Brand which specializes in cooking and catering; Alycia Hightower, COO of holistic wellness company The Natural High Company; Makeda Peterson, a Kansas City community organizer and founder of Inyanga Herbal Remedies; Andrew McDowell, the co-founder of The Funky Skunk, a medical cannabis company; and Mac Mayberry with cannabis company Major Pac. 

The coalition also criticized the amendment’s automatic expungement provision for non-violent cannabis crimes, saying that the state’s poor rehabilitation programs would leave those who have their records expunged at the risk of “repeating the mistakes that caused their run-ins with the law in the first place,” according to the group’s statement outlined by the Star. 

In a statement, Adolphus Pruitt, president of the St. Louis NAACP, said that while the group applauds Bland Manlove’s “leadership on the issue,” it does “not believe that the Missouri General Assembly will be willing to pass a comprehensive marijuana legalization measure anytime in the near future.” 

“The legislature has had years to act on this and has been either unwilling or unable to do so,” Pruitt said in a statement, “and know from long experience that the politicians in Jefferson City are rarely allies in the fight for equity and justice.” 

A SurveyUSA poll released in May found 76% of Missouri Democrats supported adult-use legalization, with 14% opposed, along with 49% of Republicans (38% opposed) and 66% of independent voters (20% opposed). 

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Tyson 2.0 Partners with Hexo to Bring Product Line to Canada

9/01/2022

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Cannabis company Hexo Corp. is partnering with Mike Tyson’s cannabis brand, Tyson 2.0, to bring its products to Canada. The exclusive partnership includes Tyson 2.0’s full line of flower, pre-rolls, edibles, and vape products.

Tyson 2.0 products are slated to roll out in Canada in the fall.

In a statement, Hexo CEO Charlie Bowman said the Tyson 2.0 brand “fits perfectly into Hexo’s market-leading portfolio.”

“We know that Canadians have been eager to try the Tyson 2.0 line and we’re excited to have signed this deal with Hexo, the ideal partner to produce the high-quality premium and affordable, cannabis flower, concentrates and consumables that we’re known for.” — Tyson in a press release 

In Canada, Hexo’s brand portfolio includes Hexo, Redecan, UP Cannabis, Original Stash, 48North, Trail Mix, Bake Sale, and Latitude. The firm also operates in the nation’s medical cannabis market, along with Israel’s. In the U.S., Hexo products are available through Truss CBD USA, a joint venture with beer maker Molson-Coors.

Chad Bronstein, co-founder, president, and chairman of Tyson 2.0, called Hexo “the obvious choice in Canada” due to the company’s dedication “to bringing innovative cannabis products to market and Hexo’s strong reputation as the leader in quality standards.”

Tyson, a multi-time boxing world champion, serves as Tyson 2.0’s chief brand officer.

Bronstein last year raised $100 million for his companies which include Tyson 2.0, Fyllo, and Wesana. 

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Lilli Keinaenen: Sustainable Cannabis Branding & Packaging Designs

8/31/2022

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Cannabis packaging creates a large volume of landfill waste and much of this can be traced back to compliance requirements. As the industry has developed, design experts have stepped into the space to encourage growth toward compliant yet more sustainable cannabis product packaging options.

Lilli Keinaenen started Changemaker Creative because she needed change, loved sustainable design, and was very interested in cannabis. What has proliferated is a consulting and design business that is changing how we package and unwrap our cannabis products. This Q&A covers why Lilli first moved into the cannabis space, the most common issues with cannabis packaging, upcoming projects that most excite her, and more!

Keep scrolling to read the full interview.

Ganjapreneur: Why did you leave the environmental and social justice nonprofit design for cannabis?

Lilli Keinaenen: The honest answer? I was tired of the work, having been doing it for over a decade by then. Every nonprofit functions on the same cycle with fundraising and campaigns, so my life was a rollercoaster of busy and slow seasons. It felt like it was time for something new, and I had already shifted to working with sustainable consumer products at the time, and one cannabis client, when the opportunity to jump into cannabis came along.

It’s a funny story, really: someone I knew had gone to a cannabis event, she realized the cannabis market had matured and finally “arrived” – moving away from the bongs and thongs look into a more sophisticated consumer product. She called me the next day, pitching the idea to start a cannabis agency together, and I said “sure, why not?!”. That’s how the agency was born, in late 2016. I jumped in both feet into cannabis, learning everything I could about the industry. I left Cannawise to start Changemaker Creative on my own.

Have you always had an interest in sustainability?

I know it’s a cliche, but yes, I’ve always been a little eco warrior. I’ve always wanted to save the planet: from convincing my sister to stop using bad-for-the-ozone layer hairspray back in the 80s (and she had big big hair!), to saving earth worms from drowning during the rain (which made me chronically late for school), and asking my parents if I could go join a protest where people were chaining themselves to trees to keep them from being cut down (I was like 8 years old at the time), it’s always been a thing for me.

What is Changemaker Creative? How many people work at the company?

Changemaker Creative is my solo agency; it’s just me, working with a network of other talented folks. It’s mainly focused on working with cannabis products with soul. What that means to me, is, that the companies I work with, have the products and a vision to make the world a better place. I come in to help them create a brand that matches the quality of the product, and reflects that ethos, connecting emotionally to the new conscious consumer.

I have designed award-winning brands that stand out on crowded dispensary shelves and connect with consumers. As a classically trained designer with a Bachelor of Arts and decades of experience, you can often find me presenting about packaging sustainability and cannabis brand marketing. My advocacy work includes cannabis legalization locally and globally, and ecology efforts. I am the Changemaker, and Changemaker is me – when your day is filled with passion projects, work is fun!

You wear many hats at Changemaker, what type of continued education or courses have you utilized to stay knowledgeable about copywriting, web design, packaging, and other skills?

You know how you know you’re old? I’ve started to become annoyed when design software changes and they add new stuff! Old lady yelling at clouds… Things change, and one has to keep with the times! Despite being a curmudgeon on software updates, I do subscribe to a ton of design newsletters, just to keep on top of trends. Also read books on strategy and design thinking, just finished a really good one called OBSESSED, which is about creating brands people feel emotionally connected to, great read. Print design I learned back in college, and the basics of it haven’t changed so so much. Packaging on the other hand, is constantly changing; new materials, new shapes, new inventions for function. Love checking out websites like the Dieline to keep up with the newest packaging inspiration, going to packaging tradeshows, as well as following people and companies in the packaging field, who come up with cool things like algae plastics or augmented reality for print design. The world has so much cool shit happening!

If I were to go back to school, I’ve been toying with the idea of taking a course on sustainability – there’s a lot there to understand more deeply, on a scientific STEM level. Last course I took was a workshop on modern calligraphy and lettering at the Typeform Archive. It was really fun to break out the brushes and ink and do things by hand, so much of my regular day-to-day is digital nowadays.

What’s keeping me the most busy, though? It’s how much there is to keep up with with cannabis! New regulations, new states, new science, new products – sometimes it’s dizzying. Spent many an afternoon reading up regulations text with a highlighter, most recently reviewed the New York state new regs, and gave commentary on the environmental packaging aspects they propose.

How does the company center sustainability?

It’s really coming from my personal passion for saving the planet (and general climate angst). It’s also a great way to focus working with good people – I have very little interest in working with broey douches, and with the sustainability focus, I am attracting the kind of people I love to work with, and probably repel the ones in it to just make a quick buck.

Sustainability is part of everything I do: my home office runs on renewable energy, I guide my clients towards sustainable packaging options, speak about sustainability issues and the new conscious consumer widely. Even how websites and email newsletters are designed has an effect on the carbon footprint!

Do you take courses or keep up with newsletters or publications to help you stay at the forefront of sustainable packaging design?

It’s a constant effort – there’s so much innovation happening at all times, and also lots of conflicting information. It’s sometimes a struggle, weeding through the greenwashing into what’s actually true. I follow sustainability news, and also packaging industry news a lot, and my background working with environmental nonprofits also helps me understand some of the nuances. Do I feel like an expert? Some days, and some days I feel like I know nothing – it’s one of those things, where the more you know, the more you know you don’t know anything! Imposter syndrome can be a real bitch sometimes. But I approach it with an open mind – I’m constantly learning, and if I make a mistake, I’ll fess up to it and change. I guess that’s also a part of Changemaker ethos – constantly learning and improving.

What do you find inspiring about packaging concepts and design?

The world is filled with wonder and beauty! Consumer product packaging is such a fun field to be in, because a $500 bottle of artisanal tequila and a $5 can of beans can both have amazing design, for completely different audiences, but both can be taken in as inspiration for cannabis packaging. That’s the coolest thing about working in weed: it’s so many things all at once. It’s an everyday wellness supplement, it’s serious medicine, it’s a relaxing treat for winding down, and also a fun times for Saturday night kind of product. It’s for young people, and old people, and parents, and surfers and lawyers and moms and people from all walks of life. So it’s really like designing for many different kinds of products – luxury cosmetics, alcohol, food, snacks, personal care, vitamins, pharma… it’s all of the things, all at once.

What projects have you been working on?

One project I’m currently working on will feature some interesting plays with shine – the name of the brand implies movement, so really wanting to implement some kinetic energy into the design. We’re also toying with the idea of an augmented reality design, where reading the container with a QR code reader would open and unscramble a secret message!

Another project I’m proud of on a form factor side is an oldie but a goodie – back in the early days of recreational cannabis in California in the olden days of 2017-2018. At the time, this was all new, so finding child resistant packaging for an eye cream and face serum, while retaining the luxury cosmetics feels, was a tall order. And I mean that literally – had a hard time finding any boxes to fit the product! We ended up with a gorgeous heavy duty rigid box from Contempo, with custom metallic foil, and custom coated heavy glass bottles on the inside. Infused every single detail, down to the tamper-evident sticker, with some delightful design element. We get so many compliments on the packaging, it has that special something. (I’m a co-owner in Green Bee Botanicals).

Favorite project I finished up recently? The Honeybee Collective, it’s just 100% serotonin and happiness as a brand. The preroll case has a “day of the week” design on the inner tray, you get one a day on weekdays and two on Saturday! We wanted to go with aluminum for the flower jar and preroll multipack, and the singles tube is a compostable plastic with a compostable label. Honeybee also gives 10% back to the community, and works with small farms.

What is the most common design mistake you see in the industry?

Thinking your product target market is for everyone. Everyone CAN buy your product, but you have to have a clear target audience in mind who you’re selling to, otherwise you end up making your product brand so bland and generic it won’t tug anyone’s heart strings. And a great brand has an emotional connection, where the product feels like your personal friend. Also, in some products, you, the company owner, might not be the target market yourself, so what you like is not relevant. Of course, a lot of times, the product idea comes from a personal problem they wanted to solve, in which case you can be the target audience yourself.

When did Changemaker add website building services its services? Why expand into the web design space?

My original freelance business was a little all over the place, due to the fact I know how to do so many different kinds of things, from Powerpoints to animation and illustration to book layout and even textile pattern design. So with Changemaker Creative, I wanted to truly focus, so I scrapped everything except branding and packaging. But now, with clients are asking me for more things, I’m slowly adding some of the things back to the mix.

Copywriting, for example, is one of those things. Despite not being an English major (or even a native English speaker), I help most of my clients with their copywriting. While brilliant at what they do, most of my clients are not particularly good at talking about their product in a clear and emotionally compelling way. Instead, too often they’re focused on listing all the technical features, nuts and bolts, rather than explaining how it makes people’s lives better. In these projects, there often isn’t a budget for hiring a professional copywriter, so I step in! Messaging work is always a part of my strategic branding projects anyways, and that often turns into a pitchdeck project (also something I offer).

With the new addition of website creation as a service – the answer to your question is that I got tired of seeing my clients hire some rando to make them a website, where the content is terrible and the design doesn’t match the branding at all. There were some truly terrible websites my clients were paying way too much money for. They needed my help! Simple as that – there was a need, I can help, and truly, websites are more about the content, design, and messaging than about the coding (I code like it’s 1999, but luckily, that doesn’t matter with the modern website frameworks, it’s more about vision than your coding chops).

What aspects of the market, product, and stores does Changemaker consider while building the creative marketing strategy for a product launch?

Part of my branding strategy is a deep dive into finding the “secret sauce”, the magical “why this matters to anyone”. We collect inspiration from all over the world and different markets, do comparisons with competitors making sure we’re differentiating and finding the white space in the market that is currently underserved. A lot of thought and planning and talking goes into strategic branding, it’s so much more than just the visuals. It’s the whole big idea behind the company, condensed into a snappy message and visuals that are uniquely yours. I also guide my clients towards thinking about visibility and promotions as part of their brand building – thinking about where their clients hang out, and what would be appropriate venues for reaching their audience, connecting them with professionals who can help them get there.

Would Changemaker take a client who is uninterested in sustainable packaging options?

Most of my clients come to me specifically for the sustainability angle.

As with everything, things aren’t so black and white, sometimes budgets and ROI mean some compromises need to be made. And that’s okay. All of my clients care about these things, and make the best decision for their company based on analyzing the options. Sometimes it means moving forward with something that gets the job done, and leaving the supergreen custom packaging option on the wishlist for a later production run after the initial launch.

I have a strict “no assholes” rule, and I’ve dropped clients in the past. Usually due to them not respecting me as a professional, or those who spew sexist, or racist, or ableist hate. In my experience, those are also the people who have come to cannabis in hopes of making easy money, usually cutting corners and screwing people over and wrecking the planet in the pursuit of the mighty dollar. And that’s just not my scene. They typically don’t like me, and I don’t like them, and I’m in the privileged position where I can be selective of who I decide to work with.

As a result, my clients are awesome. A lot of them are women, or POC, typically self- or crowdfunded, and with a solid triple bottom line approach to business, people-planet-profit. And that’s what makes me smile every day – I’m helping good people helping other people, for a hopefully better tomorrow.

Thank you Lilli, for taking the time to answer our questions. If you’d like to learn more about Changemaker Creative check out changemakercreative.com.

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California Passes Law to Protect Workers from Punishment for Off-the-Clock Cannabis Use

8/31/2022

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California lawmakers on Tuesday approved a measure that would stop employers from punishing workers that fail urine or drug tests for cannabis, ABC News reports. Under the bill, employers could still punish employees for failing other types of drug tests, such as saliva tests, that are meant to determine whether someone is currently under the influence of drugs.  

Cannabis is legal for adult use in California.

Assemblymember Bill Quirk (D), the bill’s author, told ABC News that “nothing” in the bill “would allow someone” to be under the influence of drugs while at work.

Matt Bell, secretary-treasurer for the United Food and Commercial Workers Local 324, told ABC News that the legislation is necessary as “using outdated cannabis tests only causes employees to feel unsafe and harassed at work, it does not increase workplace safety.”

The measure does not protect employees at companies that receive federal funding or comply with federal contracts or anyone working in the building and construction trades, which benefits from federal funding.

The California Chamber of Commerce opposes the bill, saying in a letter to lawmakers that it would “create a protected status for marijuana use” in state law that bans discrimination in the workplace.

“Put simply: marijuana use is not the same as protecting workers against discrimination based on race or national origin,” the letter states.

The measure moves next to Gov. Gavin Newsom (D), who has until the end of September to decide whether to sign it into law. If approved by the governor, it would take effect on January 1, 2024.

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Florida Sets New Limits for Medical Cannabis Purchases

8/31/2022

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Medical cannabis patients in Florida are facing stricter purchasing limits starting this week after new rules took effect on Monday, Yahoo News reports.

The limits are the result of an emergency action taken by the Florida Office of Medical Marijuana as requested by the legislature, which wants to crack down on what they see as overprescribing by some doctors.

Florida’s 745,000 medical cannabis patients are now limited to 24.5 grams of THC every 70 days (350 milligrams a day) or 2.5 ounces of dried flower every 35 days, the report says.

“Patients are settling in and finding out what they need, and they woke up this morning and their supply has been cut in a third,” Jodie James, president of Florida Cannabis Action Network, said in the report. James is worried some cannabis patients will now either go without or simply turn to the unregulated market.

Josephine Cannella-Krehl, head of clinical community relations for Flowery Dispensary, said patients who use multiple types of cannabis products would be most affected by the law.

“So, a patient who uses inhalation at the maximum levels is now not even going to be eligible to qualify to use a topical.” — Cannella-Krehl to Yahoo

“And we want to make sure that our patients who are trying to do the right thing never have to wonder about whether or not they have too much medicine and they’re over their legal limits or worse that they’re not going to get enough medicine,” she said.

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Michigan Judge Dismisses Lawsuits Challenging Detroit’s Adult-Use Cannabis Laws

8/31/2022

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A Wayne County, Michigan judge on Tuesday dismissed two lawsuits challenging Detroit’s adult-use cannabis licensing ordinance, the Detroit Free Press reports. While Wayne County Circuit Judge Leslie Kim Smith called the city’s ordinance “a complicated scheme,” she ruled it is “unambiguous and provides a fair licensing process” comporting with the mandates of the state’s legalization law. 

The ordinance was approved by the city in April but was challenged in two separate lawsuits. One brought by medical cannabis operators in Detroit asked the court to allow existing, licensed, medical cannabis companies to also receive adult-use licenses; while another, also brought by a currently-licensed medical cannabis firm operating in the city, asked the court to stop the licensing process altogether. In the latter lawsuit, Smith said there was no preference for social equity applicants because non-equity applicants may apply at the same time and that nothing in state law limits a municipality from developing its own criteria and scoring system for awarding cannabis licenses.

In the lawsuit asking that medical cannabis companies also receive adult-use licenses, Smith ruled that the plaintiffs were incorrect in their interpretation that the ordinance prevents them from applying for adult-use licenses until 2027.

Mike DiLauria, general counsel for House of Dank, one of the plaintiffs, told the Free Press that “there’s no doubt” they would appeal the ruling.

Detroit’s adult-use cannabis business ordinance sets aside half of the planned licenses for so-called equity applicants, which includes longtime Detroiters and people who live in communities where cannabis-related convictions are greater than the Michigan average.

John Roach, a spokesperson for the city of Detroit, told the Free Press that “the law department is reviewing the recent rulings and … will know more about the licensing process and application timeline in the next couple of days.”

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Singapore Suspends Gold Medalist Swimmer from Competition for Admitting to Smoking Cannabis

8/31/2022

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Singapore’s first Olympic gold medalist, swimmer Joseph Schooling, has been suspended from competition after admitting to smoking cannabis in Vietnam in May, the BBC reports. Schooling won his gold medal at the 2016 Rio Games.  

Singapore’s harsh drug laws ban the consumption of drugs within its territory and prosecutes individuals who take drugs abroad. Citizens or permanent residents who fail urine tests for illegal drugs face up to 10 years in prison and fines as much as S$20,000 ($14,300). The country also has a mandatory death penalty for drug trafficking.

“I demonstrated bad judgement and I am sorry. I gave in to a moment of weakness after going through a very tough period of my life.” — Schooling, in a statement, via the BBC

Singapore’s Ministry of Defense said on Tuesday that while Schooling had passed a urine test, he confessed to consuming cannabis while on a break from his military service to train and participate in the Southeast Asian Games in Hanoi in May. Cannabis use is also illegal in Vietnam.

The ministry said Schooling would be barred from taking leave or disrupting his military service to train or compete due to the “abuse of disruption privileges.” He will also be put on a supervised urine test for six months and faces up to nine months of detention if he tests positive.

Another Singapore swimmer, Amanda Lim, also admitted to consuming cannabis and was given a warning by the Central Narcotics Bureau following an investigation.

“There is no excuse,” she said in a statement, “and I will take the warning given to me seriously and reflect on my mistakes.”

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Small Pre-Roll Producers Get Big Equipment Upgrade: Mobius Releases New Cannabis Grinder Based on Trickle-Down Tech

8/30/2022

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Las Vegas, NV — Mobius, a leading manufacturer of pharmaceutical-grade cannabis processing equipment, today released a scaled-down cannabis mill that delivers the precision and grind quality of industrial mills at a lower price point.

The newly released M60 Mill draws technology from Mobius’s flagship M210 Mill. Both utilize slow rotational speeds to reduce heat degradation, and precision cutting matrixes to maintain uniform particle sizes without THC loss.

Precision milling is important because an inconsistent grind can adversely affect how ground cannabis packs within the cone, how it burns, and if the cone breaks during transport or consumption.

In a crowded market sector like pre-rolls, brands need to deliver consistent quality to survive and thrive.

“We’re excited to fit full-scale technology into our Mobius M60 Mill,” said Amanda James, Director of Strategy at Mobius. “It empowers smaller pre-roll and extract producers to achieve a top-quality grind at a much lower price point.”

Conventional cannabis mills destroy high-value cannabinoids (e.g., THC) by creating unnecessary heat. Mobius mills use low-friction internal mechanisms that prevent temperature elevation to optimize potency and smokeability.

The Mobius M60 has the in-demand features of the flagship M210 Mill, including:

  • Low-friction rotational system for enhanced product preservation
  • Precision milling configurations for 1/16”, 1/8″ and 3/16” grind sizes
  • Tool-free disassembly and easy maintenance
  • GMP-readiness

The Mobius M60 Mill — which processes up to 20 pounds of dry cannabis flower per hour — will enable small and medium-sized pre-roll producers to thrive in the competitive and ever-expanding pre-roll market.

Smaller extract producers will also benefit because grind consistency improves cannabinoid-extraction completion rates, oil yield percentages, and revenue.

“At 20 pounds per hour, the Mobius M60 Mill will serve a wide range of established licenses, as well as market entrants looking to access the pre-roll niche,” said James. “We’re shipping the new units starting this week.”

For more information about the Mobius M60 Cannabis Mill, contact a Mobius representative at info@mobiustrimmer.com.

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More Americans Smoke Cannabis Than Tobacco

8/30/2022

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A new Gallup poll found that more Americans smoked cannabis in the past week than tobacco, according to a report from The Hill.

Up from 12% last year, 16% of Americans polled said they smoked cannabis in the past week, more than double the all-time low of 7%. Only 11% of those polled said they smoked tobacco, however, down from 16% a year ago and far less than the 45% of Americans who reported smoking tobacco in the 1950s.

This is the highest level of cannabis consumption Gallup has tallied since it began asking the question in 2013 and the lowest result for the tobacco question since 1944 when it began asking that question, The Hill notes.

Although almost half of Americans report having used cannabis at least once — up from 4% in 1969, the first year Gallup polled Americans on their cannabis use — the country remains split on whether cannabis legalization is proving to be a positive or negative influence on society. The poll found that 68% of Americans believe cannabis should be legal.

Thirty-eight states and Washington D.C. have legalized cannabis for medical use in the U.S., while 19 states and D.C. have passed adult-use cannabis reforms.

States including Missouri, Arkansas, and possibly Oklahoma may pass their own adult-use cannabis legalization policies via voter initiative this November.

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Study: Cannabis Consumers Had Better Clinical Outcomes for COVID-19 than Non-Consumers

8/30/2022

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A preliminary study published this month in the Journal of Cannabis Research suggests that active cannabis consumers diagnosed with COVID-19 had better clinical outcomes than non-cannabis consumers, including the decreased need for ICU admission or mechanical ventilation.

However, the researchers warn that the study results “need to be interpreted with caution given the limitations of a retrospective analysis.” The study included two hospitals in the Los Angeles, California area, and out of the 1,831 covid patients in the study, just 69 patients reported active cannabis use, which was 4% of the total patients.

Active cannabis consumers were also younger, less often diabetic, and more frequently active tobacco smokers. The cannabis-consuming cohort was found to have a lower level of inflammatory markers upon hospital admission than non-consumers.

“Consistent with our understanding of how cannabis may play a role as an immunomodulator, non-cannabis users were found to have greater elevations in inflammatory biomarkers at the time of admission and during their hospital course. Thus, based on our current understanding of cannabis’ immunomodulatory effects, the link between cannabis usage and better COVID outcomes is sensible.” — “Cannabis consumption is associated with lower COVID-19 severity among hospitalized patients: a retrospective cohort analysis,” Journal of Cannabis Research, Aug. 5, 2022

The cannabis consumers in this study were younger, 62% male and 38% female, 48% were white, 15% were Black, 4% were Asian, and 28% were Latinx. Twenty percent of cannabis consumers also smoked tobacco, compared to just 4% of overall patients.

“Consistent with known trends, active cannabis users were overall younger than non-users,” the authors said. “However, when adjusting for age, these outcomes remained consistent.”

The study was conducted by researchers at the David Geffen School of Medicine at the University of California, Department of Medicine Statistics Core, the Division of Infectious Diseases, and Division of Pulmonary & Critical Care Medicine.

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Data Suggests South Dakota Cannabis Initiative Faces Uphill Battle

8/30/2022

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A recent poll suggests that a majority of South Dakota voters disapprove of cannabis legalization in the state, with 54.4% of respondents opposing the reforms and 43.8% in support, the Argus Leader reports. A question to enact the reforms will appear on November ballots.  

The poll was conducted by Mason-Dixon Polling & Strategy of Florida on behalf of South Dakota News Watch and the Chiesman Center for Democracy at the University of South Dakota from July 19-22.  

The poll found 27.4% of registered South Dakota voters strongly supported legalization while 16.4% were somewhat supportive. Another 39.4% strongly opposed legalization while 15% were somewhat in opposition, and 1.8% said they were unsure. 

Matthew Schweich, campaign director for South Dakotans for Better Marijuana Laws, the campaign behind the initiative, told the Leader that when he looked “a litter deeper” at the poll some things just didn’t make sense and that some of the numbers “conflict strongly with previous data” seen by the campaign. For example, the July poll showed 38.6% of respondents in the Sioux Falls metro area supported legalization, with 58.0% opposed, but that population showed the highest level of support in the 2020 statewide vote on a question to legalize cannabis, which ultimately passed but was struck down by the state Supreme Court.  

“I see this as a flawed poll, but one that I still need to keep in the back of my head as motivation to keep working hard. I’m not going to dismiss this poll entirely, and it’s a reminder that we have to work really hard and not take anything for granted because in recent times, it’s gotten harder and harder to predict what an electorate will look like.” — Schweich to the Leader

Jim Kinyon, the chairman of opposition group Protecting South Dakota’s Kids, said the poll shows voters in the state are coming to their senses and “starting to see that this isn’t going to make us free and happy.” 

“This stuff attacks the organ of the brain, and our kids and our young adults won’t be better citizens,” he told the Leader. “Our kids are struggling in our state, and we already don’t have adequate resources to help them. We have to defend our kids because they deserve better.” 

In 2020, voters approved both medical and adult cannabis reforms – the first time any state has approved both during one election. The medical cannabis initiative was approved by 70% of voters while the adult-use question was approved 54%-46% but was found by the Supreme Court to be too broad and a violation of state law on ballot questions.

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Vermont Credit Union Head Says Pause on Cannabis Accounts is ‘Temporary’

8/30/2022

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The Vermont credit union that announced last week it would stop accepting cannabis accounts due to an uptick in applications said that the pause is likely temporary. Vermont State Credit Union (VSCU) CEO Robert Miller told WCAX that the pause was necessary in order for the financial institution to meet its current demand.    

“I fully intend that this is going to be temporary. I don’t have a timeline in terms of when we will be making that available again. But fortunately, we have been traditionally the really, the only financial institution serving the industry previously.” — Miller to WCAX 

The increase in demand for accounts comes as Vermont gets ready to launch adult-use sales on October 1.   

James Pepper, chair of the state’s Cannabis Control Board (CCB), told WCAX last week that the credit union’s decision is not surprising as it had said in July that 50 to 75 cannabis accounts would be “doable” but 200 to 300 would be a “risk.”

On its website, the CCB lists just four financial institutions that open cannabusiness accounts, including VSECU, New England Federal Credit Union (NEFCU), Vermont Federal Credit Union, and Dama Financial. Pepper indicated that NEFCU “has the capacity” to open accounts for cannabis industry operators.  

The agency notes that if applicants “can document their unsuccessful good faith efforts to open a bank account, they may still apply for licensure by submitting a cash management plan along with their application.”

Applicants are required under the state’s legalization law to make a “good faith effort” to open a bank account as part of the application process. 

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Cannabis on Fire: How Debt Financing Harms Small to Midsize Cannabis Companies

8/30/2022

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Editor’s note: This editorial was contributed by Christine De La Rosa, co-founder and CEO of The People’s Ecosystem, a California-based and equity-focused multistate cannabis operator.

No one will say it because no one really wants to acknowledge it: the cannabis industry is on fire. We are seeing massive downturns in many first-mover states due to a market contraction and, of course, over-taxation. Still, we’ve known about that for a while and understood the danger that over-taxation poses to small and midsize businesses in particular. This is also an issue for large companies, but the glaring difference is that large companies have access to more capital than small to midsize businesses. Many small to midsize businesses are owned by women, people of color, and immigrants who don’t have access to capital during this or any downturn.

It’s a three-alarm fire. What do we do?

We often say to be in the cannabis industry is to constantly be putting out fires. What actionable items need to happen to put out the three-alarm fire we currently find ourselves in or at least slow it down until federal legalization? Some people would say that means we have to lower taxes, but we aren’t going to see a significant lowering of taxes because states need the money. Despite the rhetoric, there is no state in the union legalizing because of the plant — they are legalizing because of the cash.

And taxation is not the only fire. Anyone currently raising capital for plant-touching operations knows that it has become increasingly difficult to raise equity funding in the last few months. It used to be that funders were looking for unicorns to invest in. This has shifted, and now businesses are looking for funders willing to make equity investments into small to midsize companies. Those equity funders, well, they have become the unicorns. To say the equity financing has dried up in the last few months is an understatement, as shown by the Viridian graph below.

Equity funding dries up

The bottom dark green bars on each chart represent equity issues of under $10M in size. They have always represented a small fraction of the capital raised in the plant-touching business. This year that bar has disappeared. Small companies are being locked out of the market right before our eyes. The dark blue bars represent deals from $10M to $25M disappearing for mid-size companies. Do you see the area that is lit up? That light blue area shows the debt financing available to a few in the industry. Right now, equity funding is nearly impossible to find if you’re a small to midsize business. Any equity funding that is out there, more than 90% is going to established multi-state operators, who have already gotten a lot of equity funding and lost it. Now the billions of dollars being raised are for debt financing, and this is where the cannabis industry has set itself on fire.

Shifting from equity financing to debt financing as a primary way of funding the cannabis industry is awful, especially considering some of the debt structures being offered. These debt facilities are often complex and punitive, hello 28% interest, or as we call them, payday loans.

Creditworthiness in crisis

But what type of funding is needed? Before we can understand what kind of financial products we should be putting together for the cannabis industry, specifically for small to mid-size companies and especially for social equity companies, we need to understand the failure of our financial institutions. In general, we have to understand the rubric currently used to identify who has creditworthiness for investment, equity, or debt, who would be the most likely to succeed at scale, and who has market share. This does not work in the cannabis industry. It leaves many people getting first licenses behind, which is not an issue in normal industries because there was not a whole marketplace before non-cannabis industries stood up.

We have to begin to open our minds to different ways of identifying the creditworthiness of cannabis companies led by people who have traditionally not been considered creditworthy for anything in the entirety of the existence of this country. We have to value the power of their intellectual property for the last 80+ years, their ability to create and transition a market for their companies, and the innovation they contributed and continue to contribute to the industry. They have a true value which is a bang for your investment buck.

When considering this in terms of upcoming recreational states, we have to look at New York.

What will New York do?

To use the creditworthiness rubric as it exists today in the cannabis financing industry is to understand that equity (ideal) and debt (less ideal) funding does not exist for the people getting the first licenses in New York. It certainly did not help those who got their first licenses in California. It also hasn’t helped the social equity people that came as an afterthought in Colorado and other states. We need new, creative financial products that are more equitable without giving up reasonable-to-excellent returns. We need to create a thriving legal marketplace, not just in New York but across the U.S. We have to change the rubric funders, financial institutions, and foundations use in the future to truly underwrite this groundbreaking industry and equitably provide financial products for people less likely to qualify but more likely to be successful in the cannabis industry.

Although New York is starting with a $200 million debt fund, it is for real estate, not for start-up or the OPEX capital that will be needed to actually open a retail store. Without the cost of real estate, starting a cannabis retail shop takes anywhere between $1 to $2.5 million to open the doors. Then add 30% to that number for New York City.

Where will this capital come from, and in what form? What are the options for low-cost start-ups and OPEX capital? And where do we start?

Financial education beyond Quickbooks

We start by providing financial education on how to run a capital-intensive business beyond just using Quickbooks. The financial sector, which is putting together equity deals, debt facilities, and everything in between, needs to talk with formerly incarcerated people, BIPOC, or women at scale to see what they need from their financial products. Financial products should be solving a problem, not creating a new one. What good is a golden ticket if you can never use it because you don’t have access to equitable capital, and the capital you do have access to, you may not understand how to take full advantage of it, or it can be so detrimental that you risk losing your business? Building capital stacks for every possible eventuality is not something that is taught to new founders coming into this complex industry.

On the flip side, funders must create attractive financial products that support the entire industry, not just a select few. And last but certainly not least, governments — local, state, and federal — need to prepare to step up and step in to create the low-interest loans and grants required to stand up a new industry, as they did for electric cars, solar power, wind, steel, railroads, etc., but that’s my next op-ed.

Continuing to act like the cannabis industry is like any other industry is to continue to fund an industry that will not realize its full potential. This will be reflected in the bottom line of your investment dollar. It is in the best interest of the industry and its investors that small, medium, and large operators exist synergistically. We must all work together to move together, or we will remain a fractured industry and marketplace that willingly contributes to a continued prison pipeline for the very people who built the industry.

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California Seizes More Than $1B Worth of Illegal Cannabis In 13 Months

8/29/2022

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The California Department of Cannabis Control (DCC) says it has seized more than $1 billion of illegal cannabis over the last 13 months. The agency, alongside local, state, and federal law enforcement, has executed 232 search warrants, seized more than a half million pounds of illegal cannabis, and eradicated more than 1.4 million plants, the DCC said in a press release. 

Additionally, the law enforcement actions have led to the discovery of 120 illegal firearms and the seizure of $2.3 million in additional assets.   

“These enforcement activities are important in eliminating unfair competition, protecting natural resources, and safeguarding our communities.. However, this represents only one part of California’s larger strategy to help create a safe, sustainable, and equitable legal cannabis market.” — DCC statement via press release

The DCC said the actions are part of its efforts “to expand access to tested cannabis products for consumers and lower barriers of participation for businesses,” noting that it had recently been allocated $20 million “to grant cities and counties with funding that will support the creation of cannabis retail access in areas that currently do not allow it.” 

According to state data, 56% of California cities and counties do not allow any type of cannabis business (304 of 539) while 61% do not allow any retail cannabis business (330 of 539). Less than half (44%) allow one type of cannabusiness. 

 

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Michigan State Police Crime Lab Halts Cannabis Blood Tests After False Positives for THC

8/29/2022

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The Michigan State Police (MSP) crime lab is halting cannabis blood tests after false positives for THC were discovered, MI Tech News reports. The Michigan State Police Forensic Science Division has launched an investigation following a discrepancy found last week in THC blood testing results in which the presence of CBD in a blood sample may have led to a positive result for THC.   

Shanon Banner, manager of the Public Affairs Section at the Michigan State Police, said the agency was “immediately halting the processing of all THC blood samples” out of an “abundance of caution” as the agency works “to learn more” or “institute another validated method of testing to ensure accuracy.” 

The issue came to light when freelance reporter Eric VanDussen posted an interview he conducted with MSP Toxicology Unit Supervisor, Geoffrey French, in which French confirmed that his department’s testing for THC levels in blood samples is unreliable and that the MSP Forensic Science Division has been using the faulty testing process for more than 20 years. 

VanDussen: “So this could have implications on prior convictions, as well as pending cases?” 

French: “It is possible. Yes, sir.” 

VanDussen: “How was it that MSP came to the conclusion that they can’t differentiate between THC and CBD after using this method for 20 years?” 

French: “It’s a part of our procedure that worked perfectly fine for analysis for THC and carboxy THC. But unbeknownst to us, there’s an issue if there may also be CBD and carboxy CBD in that blood sample. And we were unaware that some substances may also, be essentially looking like THC and carboxy THC.” 

Cannabis Counsel Principal Thomas Lavigne told MI Tech News that the revelation could overturn some convictions and dismiss others “because juries and judges were misled with fake scientific testimony based on defective lab tests.” 

Frech told VanDussen that the problem wasn’t with the testing instruments, but rather the reagents used in the process. He added that other laboratories have “moved on to other technologies” and that his lab “hopefully” would be moving on to newer technologies as well. 

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Oregon Municipalities Seeking to Ban Psilocybin Therapy

8/29/2022

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More than 40 Oregon cities and towns are putting questions on November ballots seeking to ban psilocybin treatment centers before Measure 109, which was approved by voters across the state in 2020, takes effect January 1, Boise State Public Radio reports. Most of the proposals are in the rural eastern, central, and southern parts of the state. 

Sam Chapman, executive director of the Healing Advocacy Fund and the campaign manager for Measure 109, said the bans would make the treatment inaccessible to rural Oregonians. 

“These are people who, often in rural communities, already have a hard time accessing mental health care if at all. To take one additional option away from them, I do feel is unfortunate.” — Chapman to Boise State Public Radio 

The voter-approved law allows for local governments to enact bans or put the issue to voters. in Deschutes County 52% of voters approved Measure 109 but county commissioners voted 2-1 to ask voters whether or not to enact a ban.   

Measure 109 was approved by 56% of Oregon voters in 2020, becoming the first state to approve psilocybin therapy. Under the initiative, the Oregon Health Authority was tasked with creating a psilocybin-assisted therapy program where licensed facilities will administer the drug in a controlled, therapeutic setting. 

A recent study conducted by the New York University Langone Center for Psychedelic Medicine found psilocybin therapy may help people who struggle with alcohol dependence better manage their drinking, according to a CNN report. The study, which is considered the first published randomized trial to examine the effects of psilocybin on any type of addiction, found people who underwent two psychedelic mushroom “trips” with the help of a psychotherapist reduced “their days of heavy drinking by 83% over eight months,” Dr. Michael Bogenschutz, director of the NYU Langone Center for Psychedelic Medicine, said. 

At the end of the eight-month study, nearly half (48%) of the patients who used psilocybin reported quitting alcohol use entirely.  

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Federal Regulators to Refund $21k Worth of CBD Purchases Due to Misleading Health Claims

8/26/2022

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The Federal Trade Commission (FTC) has announced it will refund consumers for CBD products that made misleading medical claims, Marijuana Moment reports. The agency said it will be refunding 576 people approximately $36 each, totaling $21,000, for products sold by Kushly Industries LLC.

The action appears to be related to a 2021 complaint filed by the FTC that claimed the Arizona-based company said CBD could cure everything from acne to cancer, the report says.

The FTC and Food and Drug Administration (FDA) have largely taken a hands-off approach to misleading CBD labeling, making this a first-of-its-kind refund by the FTC.

“Consumers will receive either a PayPal payment or a check in the mail. The deadline for consumers to cash their checks is November 22, 2022. PayPal payments must be claimed by September 23, 2022.” — FTC statement via Marijuana Moment

The actions come two years after the FTC began investigating six CBD companies for making false claims. The operation, named CBDeceit, did not include Kushly, however. Additionally, the FDA has stepped up its enforcement of cannabinoids, sending out five warning letters to companies selling delta-8 THC and four others to CBD companies making false claims about animals and CBD.

Congressional pressure has been mounting for FDA Commissioner Robert Califf to do more to regulate the CBD industry. He did recognize in a recent hearing that the agency has not regulated CBD as well as perhaps they should have, but said Congress could make it easier for the agency to make the rules.

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New York Opens Cannabis Retail Licenses for Social Equity Applicants

8/26/2022

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New York on Thursday opened applications for conditional cannabis retail licenses exclusively to social equity applicants and nonprofit organizations that assist justice-involved individuals. 

According to the application website, eligible individuals or entities must have a significant presence in the state; the business must be majority-owned or controlled by “a justice-involved person (or people) with qualifying business ownership experience;” all applicants and board members must be 21-years-old, and everyone involved must be a U.S. citizen or permanent resident.

Eligible nonprofits must have a significant presence in the state; be recognized as a legitimate nonprofit under federal law; must work with “current or formerly incarcerated individuals, including justice-involved individuals and communities with historically high rates of arrest, conviction, incarceration or other indicators of law enforcement activity” for cannabis-related offenses; show a “history of creating vocational opportunities for current or formerly incarcerated individuals, including justice-involved individuals;” have at least five full-time employees; have operated and managed a profitable social enterprise for at least two years; and all applicants and board members must be 21.

Damian Fagon, the chief equity officer for the state Office of Cannabis Management, told LoHud that state regulators are “not hiding from the dark history that has plagued” the state, but rather “shining a light on it and moving forward together.”

The office will issue 150 dispensary licenses and those businesses will receive support via a $200 million fund to help with identifying locations and running the business. Applicants must pay a nonrefundable $2,000 fee and indicate five of New York’s 14 regions they prefer to operate the business.  

Retail dispensaries are set to open by the end of the year and will be stocked with cannabis grown by one of the 220 farms that received conditional cultivation licenses earlier this year.

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Vermont Credit Union Stops Accepting Cannabis Accounts

8/26/2022

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The Vermont State Employees Credit Union (VSECU) this week announced it has stopped taking on new cannabis business accounts due to a “sudden spike in cannabis accounts,” WCAX reports. The move comes as the state gears up to open retail cannabis sales on October 1. 

James Pepper, chair of the state’s Cannabis Control Board (CCB), told WCAX that the credit union’s decision is not surprising as the firm said in July that 50 to 75 cannabis accounts would be “doable” but 200 to 300 would be a “risk.” 

Pepper said there are other options, both in-state and out-of-state, for the industry to access financial services.  

“The New England Federal Credit Union (NEFCU) has capacity. There are also out-of-state options, and frankly, we are working with our partners over at (the Vermont Department of) Financial Regulation and with the financial institutions themselves to get them more comfortable with the idea of banking cannabis money.” — Pepper via WCAX 

VSECU has worked with medical cannabis companies in the state for years and state officials are trying to determine how many cannabis companies already have accounts with the credit union and how many other would be turned down under the new policy. Currently, Vermont has issued about 160 cannabis cultivation licenses. 

On its website, the CCB lists just four financial institutions that allow cannabusiness accounts, including VSECU and NEFCU, along with Vermont Federal Credit Union and Dama Financial.

The agency notes that if applicants “can document their unsuccessful good faith efforts to open a bank account, they may still apply for licensure by submitting a cash management plan along with their application.”

Applicants are required under the state’s legalization law to make a “good faith effort” to open a bank account as part of the application process.

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New York College Launches Cannabis Science Program

8/26/2022

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The State University of New York (SUNY) at Cobleskill is launching a cannabis science program for the upcoming semester, News10 reports. The seven-credit specialization minor is open to current students. 

The program requirements include: 

  • Cannabis Management (online class, two credits) 
  • Cannabis Harvest & Analysis (hands-on class, two credits) 
  • Cannabis Cultivation (hands-on class, three credits) 

The hands-on classes have been incorporated into the college’s plant science program, which introduces hemp production techniques, varietal trials in the field and greenhouse, and the agronomics of production.

Extraction, plant and extract analysis, and field and greenhouse work are being added to the curriculum. The college’s industrial hemp program launched in 2018 and partners with businesses that use cannabis for food, fiber, and fuel. Last year, SUNY Cobleskill was awarded $50,000 by the state to develop two acres of industrial hemp for CBD and other cannabinoids.

The cannabis science curriculum covers the cannabis production process, management and cultivation, breeding, laws and regulations, harvesting, and extraction. After completing the minor, students should be able to show an understanding of the cannabis industry, and a variety of production and processing techniques, and be able to evaluate market trends.

In July, Gov. Kathy Hochul (D) announced $5 million in funding for three SUNY colleges and one City University of New York (CUNY) for cannabis-related credential programs or course offerings that provide pathways to the cannabis industry.

The three SUNY campuses, which will receive $1 million each, include Schenectady County Community College (SCCC), Niagara County Community College, (NCCC), and Orange County Community College (OCCC), while the CUNY Borough of Manhattan Community College will receive $2 million.

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Nebraska Medical Cannabis Campaigns Fail to Reach Ballot

8/25/2022

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The Nebraska campaigns seeking to put a medical cannabis legalization question on midterm election ballots failed to collect enough signatures, Secretary of State Robert Evnen announced on Monday. However, state Sen. Jen Day (D) told Iowa Capital Dispatch on Tuesday that she will introduce a bill during the next legislative session to enact the reforms. 

In a press release, Evnen’s office said the ballot initiatives “failed to meet the Nebraska Constitutional signature requirements” which require a total of 7% of registered voters as of July 7, 2022, and 5% of registered voters in at least 38 of Nebraska’s 93 counties.  

The number of valid signatures required statewide is 86,776, Evnen’s office said. 

The Medical Cannabis Patient Protections Initiative submitted 77,843 valid signatures, reaching the 5% threshold in 26 counties, while the Medical Cannabis Regulation initiative submitted 77,119 valid signatures, meeting the 5% threshold in 27 counties, Evnen’s office said. 

Day told the Capital Dispatch that she, along with advocates, “will exhaust every measure possible to get Nebraskans the medical freedom they deserve and want.” Medical cannabis legalization advocates have also pledged to launch another petition drive following the failure of this year’s campaign.   

A survey published in May by the University of Nebraska-Lincoln estimated that in 2020 and 2021, 83% of Nebraskans supported medical cannabis legalization in the state and that in 2020, 40% of state residents supported adult-use reforms and support for those reforms increased to 46% last year.   

Medical cannabis legalization is opposed by Republican Gov. Pete Ricketts who, in December, appeared in an anti-cannabis ad saying cannabis “is not medicine.” The comments in the ad were less inflammatory than a statement he made in March 2021 when he said legalizing medical cannabis would “kill your kids” and it was a “dangerous drug.” 

Nebraska’s 2023 session begins January 4. 

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Vertosa: Developing Proprietary Emulsions for Cannabis Brands

8/25/2022

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After one conversation with Dr. Harold Han – co-founder and Chief Science Officer at Vertosa – it’s clear that the chemist cares about people. Before entering the space, Dr. Han founded a company in Silicon Valley. But he was ultimately distressed to see the development of apps and devices that weren’t contributing good to humanity. He wanted to use science and technology to help people but at the time, wasn’t accomplishing that in his position. As he honed in on what was missing, he noticed that anxiety and stress were plaguing most people.

After California legalized adult-use cannabis, a coworker gifted Dr. Han a bag of cannabis and over time he realized the benefits of using cannabis products for general wellbeing. The chemist began attending events and meeting cannabis professionals to identify a need in the industry, and they all urged him to focus on emulsifying a cannabis-infused fat into liquid. There was not yet a stable, homogenous, dilutable cannabis emulsion for the production of edibles. What better problem for an emulsion chemist, right? Soon, Dr. Han and fellow Silicon Valley veterans Ben Larson and Austin Stevenson co-founded Vertosa and built a reputation for white-glove service helping customers bring their ideas to life. Vertosa produces emulsions that can be used in various ingestible cannabis products like beverages and gummies. The company has researched and developed beverages with a 5-minute onset, artisanal ingredients, and superfoods, among other products.

Dr. Han is excited to play a role in releasing precise, ingestible products because he believes such products serve a wide swath of curious consumers, specifically: those who are interested in cannabis for relaxation and relief but aren’t interested in inhalation.

Since their products often focus on newer consumers and require proprietary technologies, the service company is dedicated to education. Since then, the brand has built a catalog of emulsions that Dr. Han confidently deems proven and reliable. Each input and resulting emulsion are third-party tested for potency, microbial, heavy metals, solvents, mycotoxins, and pesticides which increases the cost of production but is worth it to the brand as it ensures that each batch is safe and consistent.

The team is hands-on throughout the R&D process when developing a new product. At the start, educated sales teams help clients find the perfect emulsion for the future SKU. From there, Vertosa learns as much about the product as possible, factors like pH density, packaging materials, ingredients, and details about the production facility. Many customers work with a co-packer so at this point in the process, Vertosa reps will go to that facility and ensure they know the nuances of using the emulsion. There can be factors to address once the product hits shelves, as well. The team stands by their customers for support throughout the product journey.

The science-first lab also publishes case studies, white papers, and educational videos. The research team most recently developed an emulsion formula for gummies that delivers a 5-minute onset. The formula is currently in pharmacokinetic (PK) testing to identify the time it takes to get into the bloodstream. Dr. Han expressed that the team would love to implement a more streamlined R&D process but, looking at the published case studies, it’s clear why they pay detailed attention to each customer.

“We love our customers. Our mission is to unlock the healing power of the cannabinoids and make it accessible to all. We can’t just sell the consumer just this,” Dr. Han said as he lifted a jar of Vertosa emulsion into the camera view and pointed at it. “We need them to fulfill our mission.”

On top of its overarching mission of helping more people access the benefits of cannabis and its tangible mission of creating perfect cannabis emulsions, the company is growing in all directions. Geographically, they’ll be moving into new state markets in the coming year, and horizontally, they continue to develop new SKUs and fortify new applications of their technology.

To learn more about Vertosa or dig into their research, check out vertosa.com.

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37,000 Cannabis-Infused Colas Recalled In Canada

8/25/2022

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Truss Limited, an Ontario-based cannabis operator, issued a product recall for three lots of its XMG Cola cannabis drink over concerns that tiny “pinhole leaks” could form in the cans, leading to product leakage and loss of carbonation, Marijuana Business Daily reports. The recall was posted on Health Canada’s website and affects roughly 37,379 units.

The packaging-based recall was issued for cans sold between April 29, 2022, and August 10, 2022. The products were sold for $7.00, and the affected lots are 520413041, 520504051, and 520606051.

Currently, neither Truss nor Health Canada has received consumer complaints related to the drinks or any reported adverse effects, the report says.

The 355-milliliter cans of XMG Cola cannabis drinks had the number one market share in Ontario in the last quarter of 2021, making up 19% of sales. Consumers should contact the store where they purchased the drinks to inquire about the recall.

Health Canada issued a reminder to consumers on its official announcement for the recall that Canadians should report “any health or safety complaints related to the use of this cannabis product or any other cannabis product by filling out the online complaint form,” located here.

Truss Limited is operated as a joint venture between the international brewing company Molson Coors Canada and Hexo Corp., a Canadian cannabis producer, according to the report.

(All figures in Canadian dollars)

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