Canopy Growth Divests Its Retail Businesses Throughout Canada

9/28/2022

by

Canadian cannabis company Canopy Growth Corporation on Tuesday announced that it is divesting itself of its retail cannabis businesses across the nation, including its stores operating under the Tweed and Tokyo Smoke banners. The company said the move reinforces its “focus on advancing its path to profitability as a premium brand-focused cannabis and consumer packaged goods company.”  

In a statement, CEO David Klein described the plan as “the next critical step in advancing Canopy as a leading premium brand-focused [consumer packaged goods] cannabis company while furthering the company’s strategy of investing in product innovation and distribution to drive revenue growth in the Canadian recreational market.” 

Under the agreement, OEG Retail Cannabis (OEGRC), an existing Canopy Growth licensee partner that currently owns and operates the company’s franchised Tokyo Smoke stores in Ontario, will acquire all Tokyo Smoke-related intellectual property. Canopy said it has also reached an agreement with 420 Investments Ltd. in which 420 will acquire the ownership of five retail locations in Alberta.  

Both transactions are subject to regulatory approvals and other customary closing conditions. 

“By realizing these agreements with organizations that possess proven cannabis retail expertise, we are providing continuity for consumers and team members. Through the best-in-class retail leadership that OEGRC and 420 have demonstrated, they will continue to serve Canadian consumers with the high-quality in-store experiences that are essential for success in a new industry.” — Klein, in a statement 

The plan will also terminate Canopy’s master license agreement with Alimentation Couche-Tard Inc. with respect to the use of the Tweed brand for brick-and-mortar retail stores operating in Ontario. 

Canopy will, however, continue to own and operate the Tweed brand.  

The company indicated that all of its retail workers would continue their employment under the new regime.  

End

New York Receives More Than 900 Retail Dispensary Applications

9/28/2022

by

New York regulators received more than 900 adult-use retail cannabis dispensary applications before the application window closed on Monday, Syracuse.com reports. The state plans to initially issue up to 150 conditional adult-use retail dispensary licenses in the first round of licensing; however, state regulators have yet to promulgate industry rules.

Individuals who qualify for the conditional licenses must have been arrested in New York for a cannabis offense (or have a family member who was) prior to March 31, 2021, and have operated a profitable business for at least two years. Licenses will also have access to storefronts that are currently being secured and will be built out into dispensary spaces by the Dormitory Authority of the State of New York (DASNY), the report says.

A Siena University poll in March found a majority of New Yorkers – 54% – oppose the plan to give the first batch of adult-use licenses to social equity applicants.

The state also plans to grant 25 licenses to qualifying nonprofits but those organizations won’t have access to the DASNY properties or the state’s $200 million social equity cannabis investment fund.

The state plans to award the licenses by region. According to Office of Cannabis Management plans, the Manhattan region is set to receive the most licenses (22), followed by Long Island (20), Brooklyn (19), Mid-Hudson (17), Queens (16), Western New York (11), the Bronx (10), Finger Lakes (9), Central New York and the Capital Region (7 each), the North Country (4), Staten Island and the Southern Tier (3 each), and the Mohawk Valley (2).

While the timeline for the rollout of adult-use dispensaries has shifted from before the end of the year to potentially the middle of next year, the report notes that state officials still expect the first conditional adult-use retail dispensary to open before year’s end.

End

Arkansas Supreme Court Approves Cannabis Legalization Question for November

9/28/2022

by

The Arkansas Supreme Court last week ruled the state’s adult-use cannabis ballot initiative can appear on November ballots, the Associated Press reports. The ruling came after Responsible Growth Arkansas asked the court to reverse an August decision by the state Board of Election Commissioners that said the measure could not appear before voters in November because of a title language technicality, despite the group having collected more than enough signatures. 

“The people will decide whether to approve the proposed amendment in November,” Justice Robin Wynne wrote in the court’s ruling.

The court had allowed the initiative language to go forward in August while it decided the case. In the meantime, state Attorney General John Thurston, who chairs the Board of Election Commissioners, agreed with the Board and said the initiative could not be considered in November. 

“We’re extremely grateful to the Supreme Court that they agreed with us and felt like it was a complete validation of everything we’ve done,” Steve Lancaster, an attorney for Responsible Growth Arkansas, told the AP. “We’re excited and moving on to November.”

Arkansas passed a medical cannabis constitutional amendment in 2016. If approved, the adult-use law would allow Arkansans aged 21 and older to purchase up to an ounce at regulated dispensaries.

The court also struck down the 2019 law that gave the Board of Election Commissioners the authority to approve ballot measure language. That task now falls to the state attorney general, the report notes.

End

Cannabis Crossing Borders: Global Flower Trade in 2022

9/28/2022

by

Editor’s note: This guest article was contributed by Michael Sassano, CEO and Chairman of the Board for Somai Pharmaceuticals LTD, a European pharmaceutical and biotech company.

As you read this, cannabis flower is soaring from country to country. That’s right — cannabis is a global market breaking through borders. As expected, lower-cost-producing countries and regions are fast becoming the go-to suppliers for higher-cost, wealthier zones. Globally, what was discussed for years is coming to fruition. Let’s consider the state of the six major worldwide cannabis growing markets: the United States, Canada, South America, Europe, Africa, Australia, and Asia.

The United States cannabis market keeps to itself

The U.S. is a series of closed state markets that do not allow the crossing of state borders with regulated cannabis products. While a small emergence of DEA-registered pharmaceutical growers that produce medical APIs can cross state and international borders as registered medicines like Groff North America, these are rare. The U.S. has continuously operated a closed pharmaceutical model.

Canadian cannabis costs negate global early entrant advantage

Canada is still the heavyweight of export and based its entire overbuilding and overgrowing models on a robust international trade future look. Unsurprisingly, money moved faster than the cannabis regulations worldwide. The public markets have suffered since 2019 from this fiscal hangover and continue to do so. Three years later, the Canadian survivors are those who have become the largest exporters and feed the local markets.

While Canadian genetics may be superior to emerging countries, their costs are much higher, and other countries have learned from their mistakes. Canada is the home base for several global leaders like Canopy Growth Corporation, who paved the paths of the worldwide market. Still, volumes and lower costs from other countries are quickly chipping away at Canada’s first-mover advantage, which spells more woes for Canadian producers.

South America works to match world cannabis demand

South America quickly adapted to the progress in cannabis of their latitudinally northern neighbors. South American market entrants understand that not only is their climate more beneficial for growing, but they can also secure labor and general costs at a premium compared to North American markets.

Uruguay emerged as the self-proclaimed global distributor for South American cannabis and made regulations beneficial to achieve that goal. Large cultivators like Fotmer Life Sciences call Uruguay home. Columbia was also proactive in supporting the cannabis trade and hosts public companies like Clever Leaves and Khiron Life Sciences Corp. They are leaders in the European Union in bringing products and distribution models to the global cannabis market. Increasingly, more and more products are making their way from South America and around the globe to feed the increasing worldwide demand for cannabis.

Outdoor farms are the cheapest and most sustainable source of cannabis but many U.S. markets have forced licensed cultivators to operate indoor-only grows.

All eyes are on the European green wave

Europe is the most-watched cannabis-growing region to date. Beneficial regulatory environments steadily increase demand, drawing growers worldwide, and local production ramped up. Countries like Portugal cemented their position as the largest cannabis cultivators and exporters in the EU early on. Portugal hosts 19 working facilities and powerhouses like Tilray Inc. It has over 100 additional pre-license applications in the works and exported over 30 tons of product in 2021 — a figure it has already exceeded in the first half of 2022. These products reach countries like Germany, the United Kingdom, and almost every EU country with good regulatory frameworks for cannabis, in addition to countries like Israel, Australia, and other emerging cannabis markets. The EU will become the second-largest regional market and a serious worldwide competitor in the next few years. All eyes are on Europe and the countries within vying for position.

Africa emerges on the cannabis world stage with significant advantages

Africa — especially South Africa and Lesotho — has become a powerhouse of large-scale growing operations designed to export into the global markets. Initially, Canopy made significant investments there, which they later divested. Still, the local market smelled green. There are roughly 70 operating licenses in the south of Africa, and their low production costs have attracted buyers in Israel, the EU and Australia. Leaders like MG Health and Highlands Investments call Lesotho and South Africa home, respectively. With countries like Morocco going legal and a robust agricultural labor force throughout the region, more African countries are expected to emerge as lower-cost cultivation facilities.

Australia has a big appetite for cannabis imports

Australia was an early adopter on the opposite side of the globe from North America. Not only does Australia have a good infrastructure for home-grown products, but demand has been so robust that they are a large importer. Australia is home to many global companies like Little Green Pharma. Their neighbors in New Zealand are expected to improve their regulatory framework, which will open more trade for Australia. Australia is expected to be a large importer as demand in the region is outpacing local production infrastructure.

Asian cannabis market rocked by Thai entry

Finally, Asia is heating up with the entry of Thailand onto the international cannabis scene. Thailand cultivators came out of nowhere this year and have been making their presence known on the global markets with boasts of the lowest cost of production anywhere in the world. There are yet to be public figures to easily verify this claim since this is all so new, but let’s have some faith and see what comes from Thailand. Unsurprisingly, countries famous for cannabis genetics pre-legal global world have the edge over northern latitude countries. South America, Africa, and Thailand are well known for having suitable climates and lower labor costs that cater to healthy cannabis growth.

At the crossroads of Europe, Africa and Asia, we would be remiss to skip over Israel’s Asian impact. Israel remains the largest market in the region with over $250 million in sales and is one of Asia’s oldest legal cannabis markets. Israel hosts global companies like Tikun-Olam and BOL Pharma.

Cannabis will continue to increasingly criss-cross the globe

Cannabis is sweeping the globe in airplanes from lower-cost producers and mature markets sharing their great genetic flower power. Demand is increasing worldwide, and growers are becoming much more agile to adapt to new markets and produce properly regulated flowers for export and import. What was once a prophecy of a greener international market is now a reality that is only growing faster and more robust.

End

Australia Fines Three Medical Cannabis Companies Nearly AUD$1M

9/28/2022

by

Australia’s drugs regulator, the Therapeutic Goods Administration (TGA), on Tuesday issued 73 infringement notices totaling $972,360 to medical cannabis companies that claimed their products could treat serious medical conditions, including cancer and epilepsy. 

MGC Pharmaceuticals Ltd was issued 23 notices totaling $306,360, Cannatrek Ltd was issued 22 notices totaling $293,040, and Little Green Pharma Ltd was issued 28 notices totaling $372,960 for the alleged unlawful advertising of medical cannabis products on their websites and social media platforms. The TGA said that some of the ads in question “suggested or implied that particular medicinal cannabis products were recommended or approved by a government authority.” 

“Advertising of prescription-only medicines directly to consumers undermines the doctor-patient relationship and may create an inappropriate demand for particular medicines which may not be right for the individual. Businesses can advertise prescription-only medicines exclusively to health professionals as long as those advertisements are not accessible to the public.” — TGA in a press release 

The TGA said, “the use in advertisements, of claims about a serious disease or condition, is also unlawful without express permission from the TGA because Australians facing a serious disease or condition are a particularly vulnerable consumer group.” 

In a statement to the Guardian, MGC said it “cooperated fully with the TGA to remedy the issues raised, including removing all posts of concern from its social media channels, some of which were third-party posts, and placing the company’s website into maintenance.” 

The company’s website on Wednesday remained under maintenance with a note that it “is going through a rebranding.” The websites for Cannatrek and Little Green Pharma remain online and functional. 

All dollar figures in AUD. 

End

Hempcrete Approved for U.S. Residential Construction

9/27/2022

by

Hempcrete was approved for the model U.S. residential building code during a hearing last week overseen by the International Code Council (ICC), HempBuild Magazine reports. The material was approved as an appendix for the 2024 International Residential Code (IRC), which governs U.S. residential building codes for 49 out of 50 states.

The new code, set to be published formally in 2023, will feature Hemp-Lime (Hempcrete) under “Appendix BA.” Specifically, hempcrete was approved as a non-structural wall infill system similar to cob and straw bale construction, according to the report. The approval applies to one- and two-family dwellings and townhouses and should increase the availability of hemp-based building materials and facilitate greener construction projects around the U.S.

Hempcrete is a popular alternative to concrete that is made from a mixture of hemp stalk hurds and lime. It creates a fire-resistant fibrous insulation wall that also acts as a moisture regulator. Additionally, because it is made from hemp — an organic material — hempcrete is considered a carbon-sequestering construction material which further improves its sustainability.

The successful application to certify hempcrete for the IRC was submitted by the U.S. Hemp Building Association after having raised more than $50,000 and working alongside a committee of civil engineers, hemp-lime builders, architects, and other experts. CoExistBuild’s Ana Konopitskaya, a Pennsylvania-based architect who helped write the application, told HempBuild Magazine that “including hemplime” in U.S. residential construction codes was “of paramount importance.”

“It will allow architects like myself, focused on sustainability, to specify this product in any municipality across the U.S.” — Konopitskaya, via HempBuild Mag

While hempcrete will be available to most home construction projects in the U.S., it remains prohibited from commercial projects until at least 2025 — that is when officials are set to renew the International Building Code (IBC), which governs any occupancies not covered by the IRC.

The construction material has long been used in France and more recently in Canada but federal hemp prohibition in the U.S. kept it out of official building codes for decades despite its uniquely sustainable properties.

The U.S. legalized hemp at the national level in 2018.

End

Missouri Cannabis Sales Could Hit $300M During First Few Years

9/27/2022

by

Missouri’s adult-use cannabis industry could generate between $250 million and $300 million in sales during the first few years of sales, according to Beau Whitney of Whitney Economics, who also estimates the state industry could grow to $800 million and $900 million by 2025 as individuals shift from the unregulated market to the regulated market.

“Consumers are extremely price sensitive when it comes to cannabis purchases. But they’re willing to pay a premium to do things in the legal market, just as long as that premium is not excessive. The sweet spot really is 10 to 15% premium above the illicit market price.” — Whitney to KCTV5 

If the sales reach those initial projections, Whitney said, the state would reap about $81 million in taxes over the first few years alone.

Currently, the unregulated cannabis trade in Missouri is worth about $2 billion, the report says. 

Missouri voters in November are set to decide whether to legalize cannabis for adult use and internal polling by advocacy groups suggests the reforms will pass. Separately, a SurveyUSA poll released in May found 62% of Missourians back the reforms, including 76% of Democrats (14% opposed), 49% of Republicans (38% opposed), and 66% of independent voters (20% opposed). 

The initiative has received pushback, though, from a coalition backed by Democratic state Rep. Ashley Bland Manlove who argues that “people from politicians to Bob on the street didn’t know the details” on the proposed constitutional amendment, which she described as exploitative. The organization, Canna Reform Coalition, also counts members of cannabis businesses as its backers. The group is criticizing the proposed constitutional amendment for not offering social equity provisions and for civil penalties included in the question, including a $100 fine for smoking cannabis in public.

End

South Carolina Farmer Sues State Agencies Over Destroyed Hemp Crop

9/27/2022

by

A South Carolina farmer is suing several state agencies claiming that they conspired to deny him his due process rights after authorities destroyed his hemp crop in 2019, which was cultivated in unregistered fields, the Associated Press reports. In the lawsuit, John Pendarvis argues that the South Carolina Law Enforcement Division (SLED), Department of Agriculture, and attorney general’s office denied him due process after agriculture department officials found unreported hemp crops during a check of his property. 

Pendarvis claims in the lawsuit, which was filed on September 16, that he had filed an amended hemp application with regulators that indicated droughts had forced him to move his crop’s location. However, Derek Underwood, assistant commissioner of the Agriculture Department’s Consumer Protection Division, claimed that Pendarvis’ moving of the crop was a “willful violation” of the state’s hemp farming program, according to emails shared in the complaint outlined by the AP. Underwood subsequently sought approval to destroy the crop, the report says. 

In the lawsuit, Pendarvis says the legal mechanism for seeking such approval is unclear which is why he argues the government violated his due process rights. Under the state’s hemp law, registered farmers must report their hemp crops’ coordinates to the South Carolina Department of Agriculture and cannot grow plants that exceed the federal THC limits. Farmers are also required to correct any negligent violations. 

Pendarvis, a fourth-generation farmer, is the first person charged with a misdemeanor crime under the North Carolina hemp farming program. 

In emails included in the lawsuit, South Carolina Solicitor General Adam Cook describes the enforcement mechanism in the state law as “ultra-murky,” giving “no direction whatever to law enforcement.” In the emails, the state attorney general’s office advised the South Carolina Law Enforcement Division to “seek judicial authorization” to ensure Pendarvis “receives due process,” according to the documents reviewed by the AP. 

After SLED was unable to get a local judge to sign their seizure and destruction order, agents – without detailing their intent to destroy the crop – secured an arrest warrant for Pendarvis from another magistrate. Emails included in the complaint show that SLED agents took this action despite the original judge offering to hold a hearing in the matter, which SLED’s general counsel Adam Whitsett declined.  

Officials in the attorney general’s office then amended their guidance to agree with SLED’s interpretation that the hemp farming participation agreement – which allows the destruction of crops grown in an unlicensed area – amounted to the “valid consent” necessary to pursue their plan. Pat McLaughlin, Pendarvis’ attorney, told the AP that nowhere in the participation agreement do farmers waive their right to challenge such claims. Pendarvis also claims the agents denied his repeated requests to call his attorney.  

In an emailed statement to the AP, South Carolina Attorney General’s Office Communications Director Robert Kittle said the lawsuit “lacks merit.” 

End

Few Using Services Provided Under Oregon’s Drug Decriminalization Law

9/27/2022

by

Following the drug law reforms in Oregon – which decriminalized possession of all drugs and sent millions of dollars to drug treatment programs – few individuals are utilizing services to help them with their addictions, according to an Associated Press report. According to Oregon Health Authority (OHA) figures, of 16,000 people who accessed services during the first year of decriminalization, only 0.85% entered treatment, 60% received “harm reduction” like syringe exchanges and overdose medications, 15% got housing assistance, and 12% obtained peer support.

Steve Allen, behavioral health director of the OHA, said during testimony before lawmakers last week that the state has sent more than $302 million to facilities to help people with their addiction or help them use drugs safely, such as needle exchanges.

The voter-approved law is the first of its kind in the nation and supporters argued that decriminalization would keep people out of prison and urge them to seek treatment; however, since the passage of the reforms, fatal overdoses increased by nearly 20% over the previous year, the report says.

Under the law, people caught possessing drugs receive a citation, with the maximum $100 fine waived if they call a hotline for a health assessment. However, an investigation by Oregon Public Broadcasting found that most of the more than 3,100 tickets issued so far have been ignored and few people have called the hotline.

During his testimony to lawmakers, Tera Hurst, executive director of Oregon Health Justice Recovery Alliance, which is focused on implementing the voter-approved law, called the millions of dollars in funding – which comes from cannabis taxes – a “pivotal moment” and that as the program is still in its nascent stages it’s important to focus on “just building a system of care to make sure that people who need access can get access.”

“Measure 110 is launching,” he said, “and will provide critical supports and services for people, families, and communities.” 

End

Nation’s Largest B2B Event for BIPOC Cannabis Professionals Returns to New Orleans

9/27/2022

by

From November 3-5, Black CannaBiz Expo will feature 40+ influential speakers and welcomes company partners including Curaleaf, Wana Brands, 5th House Farms, Cresco Labs, and others

NEW ORLEANS, September 27, 2022 – Black CannaBusiness Conference LLC is pleased to announce the third annual Black CannaBusiness Expo & Conference (“Black CannaBiz Expo”), the only B2B conference for Black and Brown professionals in cannabis. The event, which attracts the largest gathering of BIPOC cannabis professionals, takes place November 3-5, 2022 in New Orleans to focus on the Southern Gulf Coast as regional changes in cannabis legalization take hold.

Black CannaBiz Expo & Conference is a first-of-its-kind networking, education and career-advancing conference and expo specifically curated for BIPOC individuals in the cannabis space. The business community-focused conference will feature keynote addresses and fast-paced workshops and break out sessions presented on an open platform for quick, tangible takeaways. More than 40 influential speakers will take the stage for enlightening and educational discussions focused on the state of BIPOC cannabis business, from social equity and policy, to capital funding and cultivation.

Attendees will have the opportunity to connect with solution providers and go-to experts in cannabis during the Black Cannabiz Expo, the largest expo for BIPOC exhibitors.

“As we head into our third year, we are excited to be introducing new speakers as well as unique and exciting networking and educational opportunities for our exhibitors and attendees,” said Kristi Price, Founder and CEO of Black CannaBiz Expo. “Our goal every year is to create a safe and productive place not only for people of color, but for everybody in the cannabis industry that believes in inclusion and justice.

“At Curaleaf, we are looking for ways to continue expanding access to our company and the cannabis industry at large,” said Raheem Uqdah, Director of Corporate Social Responsibility at Curaleaf. “Minority communities have shouldered the burden of cannabis’ prohibition and deserve to reap the benefits of regulation both medically and financially. We are honored to be a part of the Black CannaBiz Expo and its continued success as a hub of learning and networking for BIPOC professionals who are looking to be a part of this incredible industry.”

Adding to the depth of the event, is the list of keynote and featured speakers that includes some of the best and brightest BIPOC voices in cannabis. The conference is excited to announce Chris Ball, the Founder of Ball Family Farms, Inc., the first vertically integrated, minority-owned, Social Equity commercial cannabis facility in Los Angeles, Toi Hutchinson President and Ceo at Marijuana Policy Project and Gary Chambers Jr., US Senate candidate and , native son of Baton Rouge, Louisiana. The event will also welcome Mr. John Bailey, CEO & Principal of The Bailey Consulting Network, Chair of the Colorado Black Round Table and the Founder and Lead Convener of the Black Cannabis Equity Initiative (BCEI).

Black CannaBiz Expo will be hosted at the recently renovated, state-of-the-art Ernest M. Morial Convention Center in New Orleans, Louisiana. Tickets are on sale now and can be purchased on the Black CannaBiz Expo website. To learn more about attending, exhibiting, sponsoring or speaking at Black CannaCon, please visit https://blackcannabizexpo.com or email support@blackcannabusiness.com. Submissions for speaker proposals close September 30th, 2022 and applications can be found here.

About Black CannaBusiness Magazine
Black CannaBusiness Magazine is a subsidiary of KRMA Media Inc, a Black woman-owned multi-media company helping Black professionals accelerate their involvement in the cannabis industry through the distribution of curated B2B content, the production of experiential events and the development of original video programming. Our sponsors prioritize diversity and are committed to doing their part to create a more inclusive industry.

About Curaleaf
Curaleaf Holdings, Inc. (CSE: CURA) (OTCQX: CURLF) (“Curaleaf”) is a leading international provider of consumer products in cannabis with a mission to improve lives by providing clarity around cannabis and confidence around consumption. As a high-growth cannabis company known for quality, expertise and reliability, the Company and its brands, including Curaleaf and Select, provide industry-leading service, product selection and accessibility across the medical and adult-use markets. In the United States, Curaleaf currently operates in 21 states with 136 dispensaries, 26 cultivation sites, and employs over 6,000 team members. Curaleaf International is the largest vertically integrated cannabis company in Europe with a unique supply and distribution network throughout the European market, bringing together pioneering science and research with cutting-edge cultivation, extraction and production. Curaleaf is listed on the Canadian Securities Exchange under the symbol CURA and trades on the OTCQX market under the symbol CURLF. For more information, please visit https://ir.curaleaf.com.

Media Contacts
Black CannaBusiness
Octane PR
Sophia Thay, Director of Business Development
media@OctanePublicRelations.com

 

###

End

Bloom Announces 90% Increase in Cannabis Trimming Speed

9/27/2022

by

Artificial Intelligence Doubles Human Processing Capabilities

WOBURN, MA – Bloom Automation Inc., an agri-tech company specializing in cannabis trimming equipment, today announced a 90% increase in their trimmer’s processing speed, as enabled by new artificial intelligence algorithms.

The Bloom trimmer — which uses a robotic arm and visual sensors to trim leaves from cannabis flowers — incrementally improves its capabilities using machine learning. The leap in performance is a culmination of a larger dataset of images, thousands of hours of software R&D, and a faster graphic processing unit (GPU).

“Our updated machine processes cannabis at approximately twice the speed of a human trimmer, moving us that much closer to Bloom’s vision of hand-trimmed-quality at an industrial scale,” said Jon Gowa, CEO and Founder of Bloom.

Bloom Automation’s system requires little attention from the operator, allowing personnel to perform additional tasks while the machine runs. Gowa estimates that a single technician can operate six Bloom trimmers — effectively performing the work of 12 employees.

“The AI has expedited the analysis of a frame of data from 15 seconds to 1 second, now down to just 0.1 seconds,” said Gowa. “It can distinguish flower from leaf almost instantaneously — hence the advancement in speed.”

Unlike other machine trimmers and standard hand-trimming processes, the Bloom system trims without detaching the flowers from the stem. Each stem is suspended vertically while a robotic arm shears away leaves. Gowa reports that this method prevents damage to the valuable flowers and preserves the plant in a form that is as close to its original state as possible.

For more information about cannabis trimming or the science behind Bloom Automation, contact Shannon Hagerty, Marketing and Business Associate, at info@bloomautomation.com.

End

Georgia Awards Two Medical Cannabis Licenses

9/27/2022

by

The Georgia Commission for Access to Medical Cannabis has awarded its first two medical cannabis production licenses, The Current reports. The licenses to cultivate, process, and sell low-THC medical cannabis oil was awarded to Trulieve Georgia Inc. and Biological Sciences. Trulieve is building its cultivation facility in Adel and Biological Sciences is building west of Savanna in Glennville.

The announcement comes seven years after Georgia lawmakers decriminalized low-THC oil in the state. While the bill legalizing the oils was originally passed in 2015, it provided no legal way for producing the product. In 2019, the Legislature addressed the issue by creating a licensing structure and, more than a year ago, Georgia awarded six of those licenses. However, the licenses were put on hold after some applicants claimed the selection process had been unfair and arbitrary, the report says. Gov. Brian Kemp (R) ultimately set aside $150,000 from the governor’s emergency fund to hold hearings for those applicants who were not awarded licenses.

Trulieve Georgia President Lisa Pinkney told The Current that the company will begin work immediately to provide oil to patients. 

“The Georgia team is hard at work to begin operations as soon as possible to ensure those in need have access to Trulieve’s line of products. We’re also excited to share that Trulieve’s operation and its ancillary business partners are projected to create a wide range of jobs in the state as the business grows.” — Pinkney to The Current 

The company plans on initially opening five dispensaries throughout the state.

End

Michigan State Police Refuse to Elaborate On Faulty Cannabis Blood Testing

9/26/2022

by

Michigan State Police (MSP) are not offering any comment or follow-up after halting blood tests for cannabis late last month after discovering false positives for THC in the protocols. In a statement following the initial report, Shanon Banner, manager of the Public Affairs Section for MSP said the agency was “immediately halting the processing of all THC blood samples” out of an “abundance of caution” as the agency worked “to learn more” or “institute another validated method of testing to ensure accuracy.”

On August 31, the agency halted the testing following an interview with MSP Toxicology Unit Supervisor Geoffrey French by freelance reporter Eric VanDussen in which French confirmed that his department’s testing for THC levels in blood samples was unreliable and that the MSP Forensic Science Division had been using the faulty testing process for more than 20 years.

Last week, MLive asked Banner for an update, to which she responded that the “August 31 statement is still the most current information” the agency has to share.

In the statement, MSP estimated that there are more than 3,000 cases that could be impacted by faulty THC blood tests but that any drug tests that confused CBD and THC prior to March 28, 2019, are moot because hemp remained outlawed in Michigan.

“CBD, which is structurally similar to THC, was illegal in Michigan until March 28, 2019,” state police said in the statement. “Since that date, however, CBD, which is reported to have no psychoactive properties, has been legal under Michigan law.”

Arthur J. Weiss, president of the Criminal Defense Lawyers of Michigan, told MLive that he is “troubled by the way this was rolled out and the lack of transparency and information that’s been given to us.”

“There have been a number of people in the defense community for years that have indicated the crime lab should be an agency and department independent of the Michigan state police, because we’re concerned about the potential institutional bias and wondering whether this is the type of situation that reinforces that belief,” he said.

Criminal defense attorney Michael Nichols told MLive he has been “calling this to the attention of judges all over the state” for years and he doesn’t believe the state police crime lab first learned about the problem last month. He theorizes that judges and juries have ignored the problem because “they want to make their criminal justice partners… happy.”

End

Guam Approves First ‘Responsible Official’ Cannabis ID Cards

9/26/2022

by

Guam cannabis regulators have approved the island’s first credentials for its adult-use cannabis industry, the Pacific Daily News reports. The Cannabis Control Board today approved the “responsible official” cannabis identification cards for David Cruz, from Pacific Cultivation, and Stephen Roberto, from Green Flash Guam. 

Revenue and Tax Director Dafne Mansapit Shimizu, who also serves as the vice chairwoman of the cannabis board, told the News that businesses must still obtain cannabis establishment licenses, operating permits, and a cannabis business license before the businesses can start in earnest.  

Cannabis businesses can’t receive a license or an operating permit unless there is a government-approved “responsible official” in charge, and businesses will need government-approved “designated transporters” to move cannabis and cannabis products throughout the island. The U.S. territory is using Metrc as its seed-to-sale tracking system.

Guam legalized adult-use cannabis in 2019 and the industry rules and regulations took effect on May 29. Regulators began accepting applications for responsible official identification cards in August.

Currently, adults 21-and-older can grow, possess, and consume cannabis but it is illegal to sell it or trade it for anything of value unless the transaction is conducted by a licensed and permitted cannabis business. There are licenses for cultivators, manufacturers, testing labs, and retail stores; however, residents are barred from owning more than one type of cannabis business license.

End

Rick Ross Launches Smokable Hemp Brand

9/26/2022

by

Rapper Rick Ross is launching a line of smokable hemp products, including hemp cigarettes, smoking paper, and alternatives to nicotine tobacco. Ross made the announcement last Thursday. 

“This Hemp Hop right here. This the combination of the game right here. Something some of the finest, healthiest rollups. It’s about doing something that last forever, cause we gon’ live forever. It’s history.” — Ross in a video posted to Instagram

In a statement posted to the Hemp Hop website, Ross said he truly believes “in the health benefits of hemp-derived products.” 

“Having had my own health scares, and through my healing process, I decided I would develop a line of smokables to help others with the benefits of hemp cannabinoids,” he said.

The line is a partnership with Hempacco who first announced the collaboration during Ross’ Boss Up Conference, which was held Sept. 17-29, according to a Hip Hop DX report.

Jorge Olson, a co-founder and chief marketing officer for Hempacco, told Hip Hop DX that the company is “ready” to start offering the brand to wholesale distributors.

“With Rick Ross and James Lindsay spearheading the sales, distribution, and marketing, it will be a wonderful consumer experience for the consumers,” Olson told Hip Hop DX. “James Lindsay is also a wholesale distribution veteran and is ready to present the products to all of his Rap Snacks network of distributors all over the country.”

End

Las Vegas Votes to Allow Cannabis Social Consumption Lounges

9/23/2022

by

The Las Vegas City Council voted on Wednesday to allow cannabis social consumption lounges within city limits, KSNV reports. The 5-1 vote was to reject a motion to opt out of the state’s consumption lounge program — if the city had done nothing, it automatically would have been added to the state program.

The lone “no” vote came from Councilwoman Victoria Seaman, who said her constituents were wary of lounges in residential neighborhoods. Councilman Stavros Anthony did not participate in the meeting, according to the report.

The Nevada Cannabis Compliance Board (CCB) plans to issue 20 lounge licenses in October. So far, Clark County and the city of Las Vegas are the only localities to allow the lounges in southern Nevada. North Las Vegas, Henderson, Mesquite, and Boulder City all have opted out of the program, City Attorney Bryan Scott said in the report.

Before awarding any licenses, Las Vegas must amend the city code and craft ordinances regulating the new businesses, meaning it’s likely that the city won’t start accepting applications until early 2023.

The CCB approved the social consumption regulations in late June of this year. Half of the first round of licenses are set to go to social equity applicants. Businesses are required to submit diversity plans outlining how they will be inclusive.

Lounge patrons will be limited to 3.5 grams (or one eighth of an ounce) and cannot take unused cannabis from the lounge. Edibles or tinctures containing more than ten milligrams of THC are required to carry a warning label that reads: “Caution — this product is very potent and is not recommended for inexperienced users.” Lastly, lounges must have dedicated smoking rooms although outdoor lounges are also allowed.

End

Canadian Government Launches Review of Cannabis Legalization

9/23/2022

by

Four years since legalizing cannabis at the federal level, the Canadian government announced plans this week for an official review of its cannabis program and resulting national industry, CTV National News reports.

The legislative review is long-overdue — it was originally expected nearly 12 months ago — and looks to investigate the effects of cannabis legalization on the health of Canadian citizens and analyze its effects on the economy and illicit cannabis marketplace, which has continued to thrive. The review will pay careful consideration to the effects of cannabis on Canadian youth, according to Health Canada.

Participants in Canada’s cannabis industry have consistently called for changes amid hefty tax rates and strict regulations, which they say help facilitate steep competition from the unregulated marketplace.

George Smitherman, president of the Cannabis Council of Canada, said in the report that the “playing field” between legal cannabis companies and unlicensed operators is “nowhere near level,” especially given the popularity of unregulated retail shops and delivery services.

“There’s a significant body of regulation, but there isn’t enough law on the books to stop obvious illegal operators and no one is doing anything about it.” — Smitherman, via CTV National News

Canada federally legalized cannabis for adults in October 2018 and was only the second country in the world to pass the reforms at the national level.

End

Denver May Give Social Equity Companies Exclusive Right to Cannabis Delivery

9/23/2022

by

The Denver City Council is set to consider a new plan to make cannabis delivery licenses permanently exclusive to social equity companies, according to an Axios report.

Per city regulations, any business owner considered to have been disproportionately affected by cannabis prohibition can qualify for a social equity license. The proposal is being pushed by the Department of Excise and Licenses in an effort to facilitate a more diverse cannabis industry after the first eight years of regulated cannabis led to an industry largely dominated by white males.

“Everyone should have a chance to find opportunity in Colorado’s cannabis industry. The barriers to entry can be really, really high — especially for social equity entrepreneurs.” — Marijuana Industry Group Executive Director Truman Bradley, via Axios Denver

Denver established its social equity-based delivery regulations last year alongside a similar plan for social consumption lounges but, while the plan was initially to sunset the social equity requirements in 2024, the new proposal would see them extended indefinitely. Experts, however, warn the city may already be so saturated with adult-use retailers that there might not be a significant market left for delivery services. According to city data outlined by Axios, delivery transactions account for less than 0.5% of Denver-based cannabis industry sales, and of the city’s 208 licensed dispensaries, just nine offer delivery options.

The proposal will appear before the Denver City Council for consideration sometime in the coming weeks, a Department of Excise and Licenses spokesperson said.

End

German Officials Visit California Cannabis Businesses

9/22/2022

by

A delegation of officials from Germany recently took a closer look at California’s cannabis market, Marijuana Moment reports. Consisting of multiple German lawmakers and a top federal (German) drug official, the group toured cannabis businesses and heard from California regulators, experts, and advocates about lessons learned from launching a regulated cannabis industry.

The officials “examined products of dispensaries with equity licenses” to better understand “cannabis legalization opportunities and risks,” according to a tweet from the German consulate in San Francisco.

“It was a really expansive conversation,” said Hirsh Jain, founder of the consulting firm Ananda Strategy.

“What they had said is like, ‘Look, we want to legalize cannabis and we want to do it in the name of public health.’ That’s how they kicked off their conversation with us and that was kind of the framing for the conversation.” — Jain, via Marijuana Moment

During the meetings, California officials shared the importance of a regulated cannabis market where products are tested and age restrictions are enforced, the report says.

“As someone who interacts with a lot of American politicians, I was astounded about the extent to which they at least seemed to be engaged in a policy sense,” Jain said.

In addition to the dispensary tour, the delegation visited Sacramento and met with Nicole Elliott, California’s top cannabis regulator. They also toured a Lowell Farms cultivation facility and an SC Labs testing laboratory.

The California tours come two months after a historic meeting between officials from Germany, Luxemburg, Malta, and The Netherlands where they discussed how Europe could move forward in legalizing adult-use cannabis.

End

Florida Finally Licenses Its First Black Medical Cannabis Farmer

9/22/2022

by

Florida officials have finally licensed the state’s first Black medical cannabis cultivator, according to the News Service of Florida.

Terry Donnell Gwinn, the 69-year-old owner of Gwinn Brothers Farm in Suwanee County, received a “written notice of intent” on Tuesday from the State Department of Health signaling their intent to award him the license. In his application, Gwinn named his prospective cannabis farm ‘Gwinn Brothers Medicinals’ — he and his brother Clifford have farmed together for more than 40 years, growing watermelons, soybeans, peanuts, corn, and peas on their 1,137-acre farm, the report said.

“Mr. Gwinn is very pleased that his application was selected for licensure and is grateful for the hard work by the Florida Department of Health, Office of Medical Marijuana Use, to complete the review of the applications received. He looks forward to working with the office to complete the final steps to licensure.” Jim McKee, Gwinn’s attorney, via the News Service of Florida

The license was a long time coming: when the state’s first cannabis licenses were awarded in 2015, the rules were decried for containing discriminatory elements that favored white farmers. Then in 2017, lawmakers passed a law that was supposed to see new licenses awarded as the number of medical cannabis patients continued to increase.

Gwinn’s licensing could signal that health officials are finally set to honor that law, under which the state is required to double its number of cannabis operators from 22 to 44. Earlier this month, Florida First District Court of Appeals Judge Ross Bilbrey criticized state officials for having not issued any additional medical cannabis licenses: “Almost five years after the emergency rule was issued, the MMTC license application window remains closed,” Bribley said.

Meanwhile, multiple Florida senators formally questioned the head of the state’s medical cannabis licensing department last Fall about the delay in awarding a cannabis business license to a Black farmer.

End

Carlos “Los” Arias: Bringing a Massive Cannabis Cultivation Campus to Coachella, California

9/22/2022

by

Whether due to the popular music festival or because of its status as an agricultural beacon for the state, Coachella Valley is well known in California. Green Horizons is an upcoming California cannabis brand seeking to add cannabis to the list of crops associated with the region.

The company is offering a special product drop this October through a select retailer and is on track to expand its massive cultivation campus throughout next year. We recently connected with Green Horizons CEO Carlos “Los” Arias to speak about the company’s upcoming first product drop, why they are building such a large cultivation footprint, the support from their surrounding community, and more!

Keep scrolling to read the full interview.

Ganjapreneur: When was Green Horizons founded and what is your role at the company?

Los Arias: Green Horizons was founded in 2018. My role at the company is Chief Executive Officer. In that capacity, my primary charge is to spearhead the strategic synchronization of world class scaled infrastructure, with a global CPG house of brands platform. I also lead on capital raising initiatives and invest considerable time developing substantive relationships with strategic partners throughout the value chain.

What was your experience with cannabis cultivation before establishing Green Horizons in Coachella Valley?

I honed my commercial cultivation chops with RiverRock in Colorado, which I joined in 2015 upon raising $2M in growth capital for the enterprise. I then went on to become a first mover licensee in California in 2017, securing one of the first cultivation licenses in Cathedral City. I was also able to raise seven figure financing for this venture and built a 20,000 sq. ft. indoor craft cultivation campus that became synonymous with top shelf flower in the state. I then went on to co-found Green Horizons with my partner, Michael Meade; and later Tommy Hilfiger and Star Branding Investment Group, which is my sole focus in the California marketplace today.

Is the campus on track to be open in Fall 2022?

Yes, completion of our Phase I (101,787 sq. ft. of high tech, automated light deprivation greenhouse) will be delivered in the Fall. We’ll look to commence nursery operations at that point to propagate proprietary genetics, and then look to initiate full cultivation operations in Q1 2023.

What inspired the company to build a one million square foot campus? Will facilities be built in phases over time?

Michael and I shared a thesis years ago about the inevitable commoditization of the California marketplace, and what it would take for companies to survive (and thrive) in that environment. The undergird of our vision was segueing low COGS scaled infrastructure to a house of brands portfolio. Michael did the heavy lifting on purchasing the real estate, entitling it, working hand in glove with the city to situate the proper utilities and the like. Years of work and millions of dollars later, Green Horizons was able to secure long term tenancies on these adjacent parcels and in turn establish staying power to precisely time our market entry.

Due to our low COGS and track record of cultivating premium flower, commoditization in the marketplace is a third mover opportunity to take market share. In pairing this competitive advantage with a compelling brand portfolio, in alignment with a mogul like Tommy Hilfiger, Green Horizons becomes a global IP play out the gate that is strategically buoyed by infrastructure. This is important because it allows for consistency and margins, which is what the asset light brands are missing; and why they are (quietly) hunting for cultivation assets of their own. We saw this dynamic years in advance. We are set to commence construction on our Phase II by early 2023, which will bring on another 125,000 sq. ft., inclusive of 25,000 sq. ft. of corporate offices, distribution and co-packing capabilities.

We feel comfortable starting with this initial footprint, given our expectation that our brands will connect with consumers in a meaningful way. We’re of the mindset to then gauge the marketplace in real time thereafter and ascertain when it’s appropriate to bring more square footage online – or not. That is a core differentiator for Green Horizons, i.e. the alignment between the real estate and the operating company. We’re on the same team. That’s an unusual dynamic.

Does Green Horizons do any outreach or mutual aid for the surrounding Coachella Valley community?

Green Horizons has an entrenched relationship with the surrounding Coachella Valley community, and recognizes the privilege to work in the legal cannabis space. The Company is partnering with the City of Coachella in launching the Build the Valley Initiative, which will consist of two prominent initiatives: first, building infrastructure for the community; and second, advocacy for expungement and job creation for which Green Horizons will create a dedicated Coachella Valley program.

Where can people find more information about the Build the Valley initiative? Is there a timeline for enacting the initiative?

The Build the Valley initiative is being incubated internally at this moment with city of Coachella officials and local community leaders. We are assessing what the primary needs of the community are and how we can best contribute to produce transformative outcomes with lasting impact. Our vision is to be precious and meticulous with this process, with an eye towards enacting the initiative once our facilities are fully operational and sufficiently generating revenue.

How many jobs has Green Horizons created? Do you prioritize hiring area locals?

With the advent of the cultivation operations, Green Horizons is slated to create over 100 jobs. In service to the local municipality, Green Horizons will also be hosting two job fairs in Coachella in Q1 2023, one of which will be limited to Coachella residents only. We are passionate about hiring locally and creating value for the families in the valley, as a means of paying it forward for all the love and support they have graced us with.

What temperature and humidity controls are used in the greenhouses to keep the optimal temperature?

The facility is outfitted with equipment operation and environmental controls by Link4. There are four stages of cooling/temperature control: (i) a state of the art greenhouse evaporative cooling system; (ii) a micro cool misting system, which also will control humidity and keep VPD ranges optimal; (iii) a shade cloth system outfitted by NextG3N; and (iv) a roof peak venting system.

How does the facility source water?

The facility’s source of water is obtained from the Coachella Valley Water District. According to DWA estimates, Coachella Valley sits on top of an aquifer containing some 40 million acre-feet of water in just the top 1,000 feet of what is believed to be a 13,000-foot-deep underground reservoir filled with water, rock and sand. The facility also has an option to source water from a well located on property.

How has sustainability been considered in greenhouse engineering and operations?

Our IPM program is completely and 100% OMRI listed, naturally occurring, or living predatory insects sourced from companies that farm these. We have also sourced the highest grade, most technologically advanced systems for our water treatment, fertigation, and irrigation protocols.

The facility utilizes state of the art, high efficiency evaporative cooling controlled by a variable frequency drive, with the incorporation of a cool misting system to hit VPD targets, as opposed to high energy and water use applications, i.e. HVAC, and/or large water chiller units.

Our water treatment R/O utilities are as efficient as possible, insofar as product vs. waste generation. All water used in the facility is collected into an all-encompassing capture drainage system, which is ported to remediation before being released back for any other uses. We have incorporated a top-of-the-line H.E. Anderson fertigation system, which brings the highest efficiency utilization of nutrients within our program. We have also completely outfitted our irrigation with a Rivulis drip irrigation system, which will direct all water to the contained medium.

Coupled with a robust crop steering program, we will be able to have complete control of our water/nutrient usage rates, guaranteeing remarkable water usage efficiency, with little to no water waste. All our used medium will head to a remediation site, which will put it through a specialized process and then be recycled for further use.

On the electrical front, all our electrical and equipment has been wired to incorporate the most efficient voltage uses in order to minimize our electrical loads on the grid, and ensure highest usage efficiency. We have incorporated VFD for all exhaust fans to further support this aspect. We will moreover implement a waste management program that will encompass the complete needs of operations, to further ensure cleanliness and minimize environmental impact. All operations are contained within the walls and roof of the facility, and on top of a non-permeable floor to ensure nothing can leak into the earth’s surface.

You’ve mentioned that Green Horizons will build multiple CPG brands. What will the brand family look like, and who will the target consumers be?

We’ll be making a dedicated announcement about our inaugural brand in Q1 2023, but what I can say now is that the debut is a crossover of an existing apparel brand that will be celebrating its 50th anniversary in 2023. The brand has its roots in tennis culture, and is steeped in an ethos of celebrating rebels and icons. It is a heritage brand that is ripe for modernization, and we feel the cannabis industry is a very organic extension of what the brand has stood for all these years. In fact, the founders of the brand always intended for it to be a wink towards cannabis culture, which we’re really excited to turn a new leaf with. The confluence of cannabis, sports and fashion is an exciting lane that we think appeals to both legacy and cannabis curious consumers alike.

We’ll be debuting a specialty line of infused pre-rolls to birth the brand in commerce, paired with limited release drops of the apparel. Our second brand is more value driven, in homage to our sun grown roots in the Coachella Valley. What I can also say is we’re particularly keen on elevating creative design within the packaging sphere across all segments of the value chain. Even our value driven brands will feel and smoke premium, as we’re extra precious about both processes, respectively. We employ a conscious and inspired sensibility of artistry into everything we do, driven by a desire to bring people together. In the truest sense, we are all one. Our brands will connote that in their own unique way.

This business started with an investment from your best friend. Do you have advice for entrepreneurs who get into business with their friends on maintaining a healthy friendship and business relationship?

Yes, my journey in cannabis started with a leap of faith from my best friend. The dispositive factor in my experience has been unfettered honesty. The terrain is never going to be perfectly linear, be it in a business venture or in life. I’ve had the pleasure of navigating highs, lows and everything in between with someone that has been by my side for 30 years. That’s a rarity that I don’t take for granted. Even in our most difficult moments, we found a way to reach common ground because of the bedrock of our friendship. Adversity is a blessing, and if we surrender to it, the alchemy that manifests is far more powerful than the original divisive energy that tests friendship in the first place. Succinctly, my advice to entrepreneurs is to not be afraid to be vulnerable. The vibration of vulnerability imbued with integrity will always carry you to a peaceful conclusion, no matter the circumstances. Ultimately, that’s all that matters anyway.

Thanks, Los, for answering our questions! Readers can visit GreenHorizons.io to learn more.

End

Oklahoma Supreme Court Delays Cannabis Legalization Vote

9/22/2022

by

Oklahoma voters will not get to consider a cannabis legalization question on their November ballots after the state Supreme Court voted on Wednesday to delay the ballot initiative, KOCO News 5 reports.

In its unanimous 9-0 ruling, the court said the legalization campaign ran out of time before the election despite having submitted enough signatures to qualify the ballot initiative. But the campaign’s director Michelle Tilley said in the report that state officials had simply taken too long to certify their signatures in the first place.

While voters will not get to consider the legalization question this November, the court also rejected challenges seeking to defer the ballot initiative entirely, meaning voters will still get their shot at legalizing cannabis but it will have to come later. That could possibly be as early as next year if Gov. Kevin Stitt (R) calls for a special election but if the governor chooses to do nothing, voters may have to wait until the next general election in November 2024.

Tilley told KOCO News 5 that the campaign had hoped to qualify for the November ballot because they believed a bigger turnout would improve the initiative’s chances at winning. Barring that, however, they hope to see the issue go to voters as soon as possible simply because ending cannabis prohibition would be good for Oklahoma.

End

Municipality Opt-Outs Are a Trick Bag for Cannabis

9/22/2022

by

Editor’s note: This editorial was contributed by Frederika McClary Easley, Director of Strategic Initiatives at The People’s Ecosystem, with market research assistance provided by Alec Estevez.

When states regulate adult-use cannabis consumption, the feeling of many is that the work is over and the floodgates for cannabis will be opened. There are ideas and dreams of being able to purchase plant medicine with the same ease that one can purchase a cup of coffee or tea. The reality is that in many places, that dream has not and will not be realized, and purchasing ease will remain aspirational. In many states, deserts exist that force consumers to drive in some instances two to three hours from home to acquire cannabis. Why is this the case, you wonder? Well, you have opt-outs to thank for this.

These maps by CannDev show the opt-ins vs opt-outs in California, New Jersey, New York, Michigan, and Mississippi. The red indicates opt-outs and the green indicates areas that opted-in.

What are opt-outs?

Opt-outs are a municipality/county’s ability to choose not to allow adult-use (recreational) cannabis businesses to operate within their jurisdiction. Opting out requires an official action declaring that cannabis businesses will not be allowed to operate. This action must be taken within the timeframe set by regulatory bodies. Failure to do so means automatic inclusion. Now it’s important to note that these decisions are often made in direct opposition to the sentiments and voting trends of constituents and thankfully, opting out does not prevent consumption.

Reasons for opting out oftentimes center around fear of the unknown. How will these businesses, especially retail and consumption lounges (if included), impact the community? There may also be a want for additional time to flesh out zoning and other governance issues. Whatever the reasons, the option is taken often and data shows that opt-outs are skewed to be the preference of rural areas, those outside of major cities and urban environments.

Take California for example, where adult-use cannabis consumption has been regulated since late 2016. Six years later and after many lessons learned, as of May 2022, only 38% of counties/cities in the state allow retailers. And this is with the flexibility of being able to opt-in at leisure, without penalty. And almost 20 years post the first state-regulated cannabis adult-use consumption we are seeing similar trends. In February of 2021 New Jersey passed legislation to regulate adult-use and a super majority, over 70% of municipalities opted out of allowing businesses to operate.

What does this mean for communities and entrepreneurs?

An additional “canna tax” was one of the first things mentioned by Keith Mosley when asked about opt-outs. Keith is an entrepreneur working to operate in the cultivation space within Michigan and New Jersey. “Opt-outs drastically impact real estate. We’re dealing with supply and demand here. When you combine them with zoning restrictions available spaces are limited and property owners know this. This allows them to charge premium prices that they know you pretty much have to pay because what else are you going to do. They know they have the leverage.”

The reality is that in some areas, property costs are already through the roof. Think of California and New York. Adding cannabis, a substance that is still federally illegal, into the picture increases the complexity. When questioned about the claim of premium prices being attached to spaces, Keith said, “This is easy. When you go to a space and see its condition versus what’s being asked, sometimes it doesn’t make sense. When you do your research and look at comps in the area and the difference between those that are in green zones compared to those that are not, you’ll see.”

“And the additional challenge will be securing funding,” he said. “If you are able to get a bank to bite, they’ll have an assessment done, and often the number from that will be drastically different from the asking price and banks typically lend up to 70% of the assessed value. So now you have to figure out where to get the rest of the money from.”

For Michael Diaz-Rivera, owner of Better Days Delivery, being away from family is a big part of his story. Originally from Colorado Springs, where he received a felony cannabis charge, Michael moved to Denver initially to reinvent himself but wound up staying in order to engage in an industry and with the plant he was criminalized for. Unfortunately, Colorado Springs, an area known to be religious and military-centered, opted out of the adult-use industry and Denver is the only city that not only opted in but created a pathway for social equity with exclusivity. Michael wants the extent of opting out to be fully considered: “What does it mean comprehensively, who really winds up impacted? I know people who need this medicine back home and I’m unable to get it to them… I can’t deliver in that area. And maybe they don’t have a vehicle or the means to travel. They are technically able to consume but access is denied.”

Cornell Fairley, Founder and CEO of Lazy Pistolz, is a resident of Rochester Hills, Michigan, and gives an extreme account of harm caused by medical and adult-use opt-outs. Being both a patient and aspiring entrepreneur he is dealing with the impact on multiple fronts. As a patient, “I’m being double taxed. I have to drive close to an hour away from my home to reach a dispensary and my preferred medical dispensary location has been without my medicine for nearly six months. This has led me to purchase from Adult-Use only retail options that do not honor the medical discounts I am qualified for as a card-carrying patient”. As you can imagine, as an industry applicant, he will have to go outside of his area maybe just to do business, or relocate.

Solutions

It’s not enough to talk about the problem. We must put forth solutions. The following are possibilities that interviewees and I would love to be considered.

  • Set opt-out periods after the regulations are fully written, or at least a substantial amount of them.
  • States should incentivize early opt-ins with tax revenue and/or other needed support.
  • Give citizens the opportunity to vote.
  • Ensure that municipal meetings are held at times that make participation for the masses more feasible.
  • Institute a system where decision-makers have to report back to constituents on progress made pertaining to the reasons given for opting out.

Opt-outs, after nearly a decade of adult-use cannabis regulations around the country, are as much of an issue now as they were then. And contrary to what many believed in terms of opt-outs being temporary and based on uncertainties about the industry, many municipalities have yet to reverse their initial decisions and accept the adult-use industry. One must ask, why not allow constituents to be educated without bias and with data on where things are, and for opportunities to be created for them to weigh in on what comes next? If not, we will continue to have a thriving legacy industry and will ultimately be doing a disservice to people in need.

End

PuraVerde, Inc. Opens First Public Offering for Investment

9/21/2022

by

Innovative Cannabis Company Stands Out Providing Private Label Services, Licensing Business Models, and the Production of Its Own Premium Products as PuraVerde Looks to Grow on the National Level

TULSA, Okla., Aug. 18, 2022 (GLOBE NEWSWIRE) — PuraVerde, Inc., a cannabis company and operator that produces premium products, today announced the launch of its streamlined Regulation A, Tier 2 public offering for both un-accredited and accredited investors. Driving innovative research and development, PuraVerde is formulating products for the future of commercial cannabis. The Company plans to become a national leader in the pharmaceutical cannabis space; PuraVerde is welcoming investors to join in the journey.

The Company encourages all interested investors to visit puraverdecannabis.com/investors/ for a link to the Offering Circular and to learn how to invest in the offering.

A recent study reports cannabis sales in the U.S. increased 40% in 2021 to $25 billion. In 2020, Oklahoma dispensaries generated between $720 million and $880 million, with sales expected to top $1.1 billion by 2025.

One of Oklahoma’s top private label manufacturers, PuraVerde’s goal is to use the latest in available technology and analysis of production efficiencies to formulate, test, and package its medical cannabis products from its vertically integrated facility. Additionally, PuraVerde’s operations allow it to bring new products to market in Oklahoma. The company also serves as a leader in private label design, formulation, and manufacture. PuraVerde’s private label division has 13 distinct brands and 150+ total SKUs.

In 2021, PuraVerde completed a multi-million dollar expansion that included a new R&D Chemical Lab, Commercial Kitchen and Automated Manufacturing Facility. The company’s white labeling program aims to bring operational efficiency and increased margins to cannabis companies. As the demand for high-quality medical cannabis continues to increase, PuraVerde has secured a number of supply agreements and partnerships in Oklahoma that have served to increase revenues and position the company. The company intends to bring its business model to other states as the industry, as a whole, is poised for growth.

The Company is offering 33,333,333 shares Class C Common Stock, plus 3,333,333 Bonus Shares, for maximum gross processed of $50 million.

PuraVerde’s existing product line is sold and distributed to medical dispensaries throughout the state. The Company’s products include: Buffalo Roze Fine Cannabis, White Tail Extracts, Verde Pür, Zino Extracts, Pürshot, and the Bud Bar.

From 2020 through 2021, PuraVerde has seen $10mm+ total gross revenue, a 250% square footage increase in its manufacturing facility and a 4x increase in its brand portfolio. With these brands created specifically for certain market appeal, PuraVerde believes it has the makings of an industry success.

The Company encourages all interested investors to visit puraverdecannabis.com/investors/ for a link to the Offering Circular and to learn how to invest in the offering.

For more information on PuraVerde and its brands, visit PuraVerdecannabis.com.

View the offering circular directly by clicking here.

About PuraVerde, Inc.
One of Oklahoma’s top private label manufacturers, PuraVerde is planning to bring its A-game business model to other states. PuraVerde’s R&D lab has worked with new technologies like Nano Emulsion and Synthetic Cannabinoids that take PuraVerde’s growth to a new level. From PuraVerde’s technology to its brands to its private label program, learn why PuraVerde is one of most innovative companies in the cannabis industry.

Forward-Looking Statement:
This press release contains forward-looking statements within the meaning of the safe harbor provisions of the Private Securities Litigation Reform Act of 1995. Such statements involve risks and uncertainties, including, but not limited to, risks and effects of legal and administrative proceedings and governmental regulation, especially in a foreign country, future financial and operational results, competition, general economic conditions, proposed transactions that are not legally binding obligations of the company and the ability to manage and continue growth. Should one or more of these risks or uncertainties materialize, or should underlying assumptions prove incorrect, actual outcomes may vary materially from those indicated. Important factors that could cause actual results to differ materially from the forward-looking statements we make in this news release include the introduction of new technology, market conditions and those set forth in reports or documents we file from time to time with the SEC. We undertake no obligation to revise or update such statements to reflect current events or circumstances after the date hereof or to reflect the occurrence of unanticipated events.

For press inquiries, please contact nicole@capitalraiseagency.com or (512) 925-3171.

End