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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Stonecrest, Georgia Decriminalizes Low-Level Cannabis Possession

8/25/2022

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The city of Stonecrest, Georgia on Monday decriminalized cannabis possession by adults following a unanimous vote to approve the reforms by the city council, FOX 5 reports. Those caught with an ounce or less of cannabis will only get a citation and a $100 fine. 

Mayor Jazzmin Cobble said the new ordinance will reduce the number of people incarcerated for low-level cannabis possession. The Municipal Court of Stonecrest, which backed the reforms, said the enforcement of possession laws “has fallen disproportionately on certain subsets of the population.” 

“The City of Stonecrest remains committed to ensuring the safety and security of all residents and visitors. This ordinance does not legalize the possession of marijuana in Stonecrest. It eliminates jail time as the only option of penalty and reduces the fines for individuals found guilty of possessing one ounce or less of marijuana.” — Cobble via FOX 5 

Earlier this month, Commissioners in Athens-Clarke County, Georgia approved an ordinance to reduce the penalty for possession of less than an ounce of cannabis to a $35 fine, which is the lowest in the state. Other municipalities, including Atlanta, Savannah, Macon-Bibb, Statesboro, Tybee Island, Clarkston, Chamblee, Forest Park, Kingsland, and South Fulton have also enacted measures to decriminalize cannabis possession, eschewing jail time for fines between $75 to $500.   

In May, Chatham County District Attorney Shalena Cook Jones said she will no longer prosecute cannabis possession cases dealing with less than one ounce or test small amounts of cannabis unless other felony charges are involved.  

Cannabis possession remains outlawed under state law. The state does have a medical cannabis program.  

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Pennsylvania Ordered to Reveal Number of Cannabis Patients Enrolled for Opioid Addiction

8/25/2022

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A panel of Pennsylvania judges has ordered the administration of Gov. Tom Wolf (D) to reveal how many medical cannabis patients are enrolled in the program for opioid addiction treatment, Spotlight PA reports. The decision comes after the Office of Open Records (OOR) determined in September that Spotlight PA should have access to that information; however, the decision was challenged by the Wolf Administration.  

Spotlight had sought the information for their coverage of a story of a Bucks County man who was wrongly denied addiction treatment funding because he was enrolled in the state’s medical cannabis program. The man died a few weeks after the denial due to a drug overdose.  

In the court opinion last week, the judges dismissed several arguments from the state Department of Health, which sought to keep the information private. Bonnie Brigance Leadbetter, a senior judge, determined that the agency interpreted confidentiality rules too broadly and one of its arguments was “undeveloped” and “misses the point,” the report says.  

Paula Knudsen Burke, an attorney with the Reporters Committee for Freedom of the Press who is representing Spotlight PA for free, called the ruling “an important step toward public access to aggregate data that will help Pennsylvanians better understand how the state’s medical marijuana program is operating.” 

In the opinion, Leadbetter said that while some information is confidential under the state’s medical cannabis law, the information requested under Spotlight’s OOR request “is subject to disclosure.” 

The Health Department could petition the state Supreme Court and ask for an appeal so it is not immediately clear whether the agency will release the information to Spotlight.   

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Arshad Lasi: Growing a Family-Owned Cannabis Enterprise

8/24/2022

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When Oklahoma regulators launched the state’s medical cannabis industry with an open and generally welcoming licensing scheme, it created a market where anyone with fortitude and starting capital could launch a business and try their hand at the cannabis industry.

While The Nirvana Group originally started as the Lasi family tobacco shop, it has grown into a corporate enterprise encompassing cannabis retail, distribution, wholesale, and cultivation operations, all handled in-house. This Q&A covers Arshad Lasi’s journey as a young CEO building out the enterprise, establishing the various vertical operations, and tips for running a family-owned and -operated business. The interview also covers new product development, a discussion about Oklahoma’s formerly open cannabis licensing scheme, and more!

Scroll down for the full interview:

Ganjapreneur: Did you face many challenges converting your family’s Oklahoma smoke shop into a vertically integrated cannabis enterprise?

Arshad Lasi: In terms of opening multiple dispensary locations, and then applying for licenses to eventually open and operate cultivation, manufacturing and distribution centers, it all happened within a few years – certainly quicker than I anticipated. But my personal challenge was balancing going to school as an undergraduate at the University of Houston, all the while running and expanding this burgeoning business. At the beginning it was rough, especially with having to travel back and forth between Houston and Tulsa. A silver lining of the pandemic was being able to stay in Tulsa to run the business while also completing many of my college courses remotely online. That certainly made it easier to balance everything.

What are the pillars of The Nirvana Group? In what order did you establish the smoke shop, dispensary, and distribution center?

The pillars of The Nirvana Group are multi-faceted. They include a 30-acre cultivation facility; a 10,000 square foot extraction center; a 7,500 square foot commercial kitchen to produce beverages and edibles; Nirvana Distribution, a 10,000 square foot warehouse that is one the largest Smoke Shop, Glass, Paper, Vaporizer, and Packaging distributors in Oklahoma, servicing more than 500 dispensaries for their ancillary products; and Argent Cannabis Distribution, the only cannabis cash & carry concept in Oklahoma and the wholesale distribution company for Nirvana Group’s cannabis brands, which range from vapes to pre-rolls to edibles and beverages to concentrates and more. We have two locations of Argent, in Tulsa and Oklahoma City, and work with more than 30 brands and are home to nearly 1,000 SKUs. And mentioned here last, but certainly not least, is our expanding roster of both medical dispensaries and smoke shops throughout the state.

In terms of the order of when we established these operations, my father founded the company Nirvana and opened our first smoke shop in 2011. We then expanded our operations in 2018 to include Distribution and Wholesale, and rebranded our growing business as The Nirvana Group. In January 2019 we opened our first medical dispensary, followed shortly by three additional dispensaries and then Argent Cannabis. In October 2020 we expanded the Argent and Nirvana distribution operations, and in 2021 began our extraction and cultivation operations. By the middle of 2021, we were manufacturing edibles, beverages, vapes, etc., both as in-house brands and for white labeling.

We also opened a new smoke shop in Albuquerque, New Mexico in July 2022. In addition, we recently received our New Mexico cannabis business licenses and plan to expand our manufacturing and distribution operations into the state within the next three months. We are examining expansion opportunities into additional states as well.

Does Argent Cannabis Distribution accept all brands on the platform of only Nirvana Group cannabis brands?

Not all; we vet the brands to make sure they’re a good fit for us and ensure that we can provide them with successful results. We distribute our partner brands and others, including Toast, Venus Electra, Nuvata, Releaf Labs, and more.

What is the process of developing a new product at The Nirvana Group? How did the company build these SOPs?

There’s a tremendous amount of ideation and research & development involved. We’re consistently working on creating new products and improving on our current product lines. We innovate for ourselves as well as for the partner brands we work with, like Love Yer Brain [previously mentioned]. We built our current Standard Operating Procedures through trial and error, as well as from valuable advice from fellow market leaders.

Does the commercial kitchen do palatability, effect, or other types of tests before bringing a product to market?

Absolutely. We want to ensure our products will be enjoyed by the patients who consume them.

What grow methods and mediums do The Nirvana Group use in its cultivation space?

We use soil in our greenhouse, as well as some outdoor cultivation methods.

How have you noticed that open licensing affects the Oklahoma cannabis space?

The Oklahoma cannabis space is one of opportunity and access, which I view positively. It is relatively inexpensive to obtain a cannabis business license compared to that of most legal states. Of course, the risk of oversaturation is a negative effect of open licensing that we should be mindful of. Therefore, it is important to create regulations that will prevent the market from being flooded, which could also lead to quality control issues. However, there are plenty of benefits that come with expanding access to the industry.

Even with a license you still need a fair amount of capital to launch, but the overall lower cost of getting started also comes into play thanks to more affordable real estate as compared to other parts of the country, opening up the opportunity to build larger facilities for cultivation, storage, manufacturing and distribution, as well as storefronts for dispensaries. This creates opportunities for newcomers and legacy operators to get into the licensed industry, and may also benefit underserved communities who have been historically targeted by the unjust war on drugs. Assisting these communities is a cornerstone of the legalization process and Oklahoma’s regulations can result in inclusivity and widespread participation. However, now Oklahoma’s regulations are becoming more limited and restrictive, as unfortunately I don’t believe that equity and widespread opportunity were the original intentions of the state legislators who drafted the original regulations.

Has The Nirvana Group considered a future of adult-use legalization while building out the medical cannabis enterprise?

Absolutely – and one of the ways we’ve been planning for an imminent adult-use market is through product innovation including infused beverages, a key product bringing cannabis consumption to the mainstream, and through strategic partnerships. The future of cannabis is well thought out, consumer brands, and we’re taking steps to be involved in that space as much as possible. For example, we recently partnered with Love Yer Brain, the edibles brand founded by Flaming Lips frontman and Oklahoma native Wayne Coyne, to increase availability across the state, create new specialty products, and expand into new markets.

What challenges have you faced working with your parents on this venture?

Working alongside my parents to grow this business has been extremely positive and rewarding for the most part. They’re part of The Nirvana Group Board, and here to lend their guidance to business decisions. Even when we disagree, at the end of the day, we’re able to hash everything out at the dinner table, as well as compartmentalize what’s business and what’s personal, and remain transparent and honest with one another.

How has establishing a corporate structure in your family business been a positive experience? Do you have any advice for families working together?

I look to my parents as role models and mentors, so it has been an extremely positive experience learning the ins and outs of how to operate a retail business from them, and together learning the incredibly complex and constantly evolving cannabis industry. It has also been a fulfilling experience to have them put their trust in me to expand the business and to take the wheel as CEO of the company. Even though there have been difficult and challenging times and situations, The Nirvana Group has matured from a mom-and-pop business to a more structured, corporate model.

My advice would be to allocate specific times to talk about business, and then make sure you still dedicate family time for more personal conversations and general life updates. Thankfully, my parents and I have a great personal and working relationship.

As a young CEO, how have you prepared for the executive position? Could you share any lessons learned that helped you achieve new levels of success in the role?

The best way to prepare is really to jump into the deep end and start swimming. A traditional business education can help, but working in the licensed cannabis industry really requires on the ground experience and the ability to adapt and pivot, as well as a desire to continue to learn and innovate.

One of the most important lessons I’ve learned along the way is to build a strong team and to trust your team, understanding your colleagues’ strengths and interests, as well as your own strengths and weaknesses. No leader is able to excel at every single aspect of what it takes to run a company, but part of being a successful executive is choosing the right people to work with and letting them shine in their respective specialties.

Thank you, Arshad, for answering our questions and sharing your industry experiences! To learn more about Arshad Lasi and The Nirvana Group’s cannabis operations, visit Nirvana-Dispensary.com.

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Oklahoma Cannabis Legalization Question May Miss Ballot Due to Signature Counting Delays

8/24/2022

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Oklahoma voters may not have their chance to vote on adult-use cannabis legalization in November, despite meeting the signature threshold, because the state’s new private vendor used to verify and count signatures took too long to process the petition, KFOR reports. The Vote Yes on 802 Campaign had submitted 20,000 more signatures than the statute requires.

The deadline to print ballots is August 26 and the Secretary of State’s Office verified the signatures on Monday; however, Michelle Tilley, with the campaign, explained that “the count has to be certified by the court” and had to have a 10-day publication period in the newspaper which “will all be completed just a few days” after Friday’s deadline.

“So, we know people in Oklahoma want this and at least they want to vote on it. … The state has really dropped the ball in their new count process.” — Tilley to KFOR

She described the failure as “unprecedented” in the state.  

“Generally, a petition of our size, it takes about five to seven days to count,” she explained to KFOR. “For example, the Medicaid expansion petition, which had twice as many signatures as ours, only took 17 days.” 

The campaign has filed a petition with the Oklahoma State Supreme Court to intervene. They are asking the court to allow ballots with the question printed on them to be produced while the process finishes. 

“Because of a new electronic process instituted and used for the first time on this initiative, however, the Secretary’s signature count ended up taking much longer than anyone had anticipated,” the legalization campaign contends in the lawsuit. “Instead of the 2-3 weeks expected by the parties (and by the Secretary’s office, as the undersigned counsel was informed prior to turn-in), the electronic signature verification and count – conducted by an inexperienced private vendor pursuant to a no-bid contract lingered on for nearly 7 weeks.” 

In the lawsuit, the campaign describes the delay as “unexpected” and “inexplicable.”  

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CannaCon, The Nation’s Leading Cannabis Conference & Expo, Comes to the Colorado Convention Center

8/24/2022

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With Colorado continuing to be a leader in the legal cannabis market, CannaCon brings its unique brand of cannabis conferences to Denver on September 24th-25th. Join CannaCon in the state where it all began and seize your opportunity to grow the industry with us.

CannaCon West will provide a B2B venue for cannabis businesses, entrepreneurs, and industry leaders to showcase products, services, innovations and technology. CannaCon features some of the world’s best genetics, the latest in growing and extraction products, dispensary displays, POS systems, and so much more.

You’ll also have the opportunity to immerse yourself in learning from industry experts in the CannaCon Seminar Series. Offering seminars on overcoming Manufacturing and Supply Chain Challenges and Tips, Seed to sale sustainability, and the one and only Pot Brothers at Law.

Shop directly from the manufacturer on our expo floor, learn from leading industry experts at our seminars, and network with thousands of like-minded individuals at CannaCon West.

“CannaCon is the most amazing business-to-business cannabis convention of mainstream America.” — Marc Wasserman of The Pot Brothers at Law.

“The most fun you can have at a cannabis event. The best networking opportunity in the industry – by leaps and bounds.” — Thomas Warinner, MOBIUS

Contact | Angelle Grelle | angela@cannacon.org

CannaCon Midwest will provide a B2B venue for cannabis businesses, entrepreneurs, and investors to showcase industry products, people, innovations and technology. Featuring some of the world’s best genetics, the latest in growing and extraction products, dispensary displays, POS systems, and so much more.

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Majority of New Mexico’s 1,000 Cannabis Licenses Issued to Companies Controlled by Men

8/24/2022

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New Mexico has approved more than 1,000 cannabis industry licenses in the year-plus since adult cannabis use was legalized; however, 70% of those licenses were issued to businesses controlled by men, the Santa Fe New Mexican reports. During a presentation to lawmakers on Tuesday, Andrew Vallejos, director of the Alcohol and Gaming Division of the state Regulation and Licensing Department, which houses the Cannabis Control Division (CCD), said that 38% of licensees who identified as white also cited some Latino, Hispanic or Spanish origin and that 40% of the state’s cannabis licenses were issued to minorities. 

Vallejos said the figure “bodes well” for the state’s efforts for an equitable industry.  

It is not known, though, how many of those licenses went to New Mexicans as the CCD does not keep track of that information, the report says. Robert Sachs, CCD’s deputy director of policy, told lawmakers on the Legislature’s interim Courts, Corrections and Justice Committee that he believes most of the controlling entities are from within the state but would need to conduct a more comprehensive search to make that determination. 

So far, regulators have approved 1,027 cannabis licenses, with 292 – the largest amount – going to retailers. There have been 188 cannabis producer licenses issued, along with 91manufacturer licenses, 202 cannabis microbusiness licenses, and 100 vertically integrated licenses, the report says. 

During the meeting, state Sen. Joseph Cervantes (D) said that the figures don’t say enough about who is actually controlling and profiting from the businesses and that there are likely between six and 10 businesses in the state that will dominate and create a “super monopoly.” He added that if out-of-state companies come into New Mexico and buy up those big companies, officials may “have potentially created a monster.”

New Mexico in July saw its highest combined medical and adult-use sales to date, reaching $40.3 million.  

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Trucking Alliance Seeks Federal Permission to Use Hair Drug Testing Methods

8/24/2022

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The Alliance for Driver Safety & Security, also known as the Trucking Alliance, is asking the Federal Motor Carrier Safety Administration (FMCA) to amend its regulations and require carriers with knowledge of positive hair tests to report the results to the FMCA’s Drug and Alcohol Clearinghouse, according to a notice set to publish in the Federal Register today.  

Hair testing for drugs is an ineffective way to determine when someone has used a substance as it detects repeated drug use over 90 days but because hair growth rates vary from person to person, it doesn’t accurately determine when in the 90 days drugs were used. A 2019 study published in the Drug and Alcohol Dependence journal found the method “less efficacious” than using urine screenings.  

In an interview with Land Line, Jay Grimes, director of federal affairs for the Owner-Operator Independent Drivers Association (OOIDA), called the proposal “another misguided attempt to mandate hair testing for the nation’s commercial motor vehicle drivers that will not reverse the trend of rising crashes and fatalities involving heavy trucks.” 

“Given the many uncertainties and lack of safety improvements from hair testing, there is no sound reasoning for federal agencies to adopt any sort of hair testing mandate for drivers. This is in large part why FMCSA does not have the statutory authority to even grant such an exemption, as rightly mentioned in the notice.” — Grimes to Land Line 

In 2020, Moseley Marcinak Law Group asked the FMCSA to allow Trucking Alliance carriers – which includes Cargo Transporters, Dupre Logistics, Frozen Food Express, J.B. Hunt Transport, KLLM Transport Services, Knight Transportation, Maverick Transportation, Schneider, Swift Transportation, US Xpress, and May Trucking Co. – an exemption to allow them to use hair testing rather than urinalysis, according to Land Line. The agency formally denied that request in May 2021, saying that it lacked the statutory authority to do so. 

Despite the FMCSA’s inability to allow the exemption, it is accepting public comments on the proposal for 30 days.

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Federal Survey Finds Cannabis & Hallucinogen Use Among Young Adults at Highest Level Ever

8/23/2022

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The rate of individuals aged 19 to 30 who consumed cannabis on a daily basis, or on 20 or more occasions in the past 30 days, reached 43% last year, according to the National Institutes on Drug Abuse (NIDA) Monitoring the Future survey. Rates of past-year hallucinogen use among the cohort also rose in 2021, to 8%. Both increases mark new highs since the NIH started monitoring the trends in 1988.

In a statement, NIDA Director Nora Volkow, M.D., said the data “provides a window into the substances and patterns of use favored by young adults” and “understanding how substance use can impact the formative choices in young adulthood is critical to help position the new generations for success.”

“We need to know more about how young adults are using drugs like marijuana and hallucinogens, and the health effects that result from consuming different potencies and forms of these substances. Young adults are in a critical life stage and honing their ability to make informed choices.” — Volkow in a press release

The survey found an increase in past-month cannabis vaping, which doubled from 6% in 2017 to 12% last year, along with an increase in nicotine vaping, from 6% in 2017 to 16% last year.

Researchers found a decrease in past-30-day alcohol consumption among those surveyed, which was measured at 66% last year, down from 70% in 2016; however, binge-drinking rates increased from 2020 (28%) to 32% last year, the same level recorded in 2019.

The study found that cannabis consumption among 19- to 30-year-olds has steadily increased over the last decade. In 2011, 29% of the cohort said they had consumed cannabis over the previous 30 days and that figure rose to 34% in 2016. In 2011, the survey found daily cannabis consumption rates at 6%, which rose to 8% in 2016 and 11% last year.

Data for the 2021 survey was collected online from April 2021 through October 2021. The study is conducted by scientists at the University of Michigan’s Institute for Social Research, Ann Arbor, and is funded by NIDA, part of the National Institutes of Health.

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NECANN’s New Jersey Cannabis Convention Coming to Atlantic City September 9-10

8/23/2022

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Innovation, opportunity, investment and inclusion highlight NJCANN programming

Atlantic City, New Jersey – The New Jersey Cannabis Convention is returning to the Atlantic City Convention Center for two days of cannabis business, networking, and education September 9-10, 2022. The event will mark the largest gathering of cannabis industry professionals, businesses, and advocacy groups ever in New Jersey In addition to an exhibit hall with over 120 companies, the event will feature two locally-focused education programming tracks concurrently running each day, giving attendees access to over 50 expert speakers covering every facet of the New Jersey cannabis market.

“We’re very excited to be back for our 3rd New Jersey Convention, it’s very exciting to see how much the maket has evolved since our first event in 2019”, said Marc Shepard, founder and President of NECANN. “In the spirt of inclusion and accessibility for all, we’re also very pleased to be able to announce that we are once again making ALL of our speaker content open to everyone who registers for the event at a cost of just $20 a day, a small fraction of what most cannabis industry events charge”.

Programming highlights include:

Chirali Patel, Founder of the Blaze Law Firm hosts a session called “Blooming in the Garden State”, a guide to navigating the challenging legal licencing process in New Jersey.

Jennifer Bassuk, an agricultural expert from Fluence Bioengineering leads a session for growers titled “What Cultivators Need to Know to Navigate New Jersey’s Burgeoning Cannabis Market”.

Jennifer Cabrera, Esq. of Vicente Sederberg LLP’s session, “X Marks the Spot: Which Garden State Municipalities Are Still in Play” covers all things municipal from municipality choice to property search, becoming a good community partner, and explains the steps for preparing a competitive local application.

“This convention is specifically designed for industry leaders, advocates, entrepreneurs, career and knowledge seekers, and the canna-curious to come together to learn and meet the people paving the way for the New Jersey cannabis industry,” said Marc Shepard, founder and President of NECANN. “With the cannabis industry heating up in the Mid-Atlantic, it’s also a timely opportunity for operating and new businesses alike to engage with and learn from consumers, promote their businesses, and their products.”

All programming details are available at: https://necann.com/new-jersey-convention/programming/
Registration: Advance registration available at: https://bit.ly/NJ22tix
Location: Atlantic City Convention Center, 1 Convention Blvd, Atlantic City, NJ
Hours: Friday Sept 9th, 10am-5pm | Saturday Sept 10th, 10am-4pm
Admission: $20 for one-day pass; $35 for two-day pass; Children under 18 MUST be accompanied by an adult

About NECANN
Since 2015, NECANN has hosted the largest, most comprehensive Cannabis Industry event series in the nation. Our schedule includes conventions in New Jersey, New York, Boston, Maine, Vermont, Chicago, Virginia, and Connecticut, making it the largest series in the country. For more information: go to necann.com, email info@necann.com or call: 774-254-5073.

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New Security Technology Protects Cannabis with Rodent, Deer and Human Detection

8/23/2022

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Palo Alto, CA — Camect INC fills the costly security gap for cannabis dispensary and grow facilities with an affordable AI-powered smart hub able to detect rodents, deer and humans with a less than 1% error rate.

Until the S.A.F.E. Banking Act passes cash intensive dispensary owners are at rising risk for violent and costly burglaries from humans. According to NPR, the wave of crime has escalated. Grow facilities face the double threat from both human crop theft and destruction from rodents and animals. One rodent can destroy thousands of dollars of valuable plants.

Live guards burden owners with as much as $50,000 a month in round-the-clock security. A solution that is not affordable to most. Video security cameras offer at best a reactive approach to crime detection. These cameras are designed to record, not detect. In a world with understaffed, overworked police officers these videos are not actually helpful. This can be a huge distraction with alerts going off every time a leaf, bug or weather triggers an alarm. NYT reports that 80% of DIY security system owners are annoyed by “false-alarms”.

Camect uses AI-powered object detection. The nanosecond an object (rodent, deer, person, pick-up truck, delivery truck, etc.) is detected, an alert is deployed, if you want to know about it. The system will adapt to the user’s preferences, virtually eliminating false alarms. Camect affordable smart hub connects with almost every existing camera system. Most often no new equipment is needed.

“Regulations require dispensary owners to pour large amounts of capital into their business and operate as cash-only enterprises. This puts product and cash at great risk with criminals targeting both. One of my new customers called me after he lost huge amounts of inventory and $75,000 cash with one break-in. Camect is committed to helping business owners take a proactive approach and deter these crimes,” says Camect National Account Manager Brad Kenning who specializes in Cannabis Security.

Camect is currently available worldwide. Contact Camect Marketing Director Rachel Swardson at connect@camect.com for more information.

About Camect
Camect Inc is the first to bring affordable, accurate and reliable Artificial Intelligence analytics to video and non-video security systems. Our goal is to help human beings focus on what matters.

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Bloom Releases 2.0 AI Software for Cannabis Processing

8/23/2022

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Artificial Intelligence Improves Speed, Accuracy of Cannabis Trimming

WOBURN, MA — Bloom Automation Inc., an agri-tech company specializing in cannabis trimming equipment, today released the Bloom Artificial Intelligence Engine 2.0 — a suite of new algorithms that visually analyze cannabis flowers for faster, more accurate machine trimming.

The AI software update makes Bloom’s robotic cannabis trimming system twice as fast as human trimmers and creates possibilities for other identification-related tasks such as defoliation, harvest weight prediction, and flower bucking.

“We’re excited to announce Bloom’s 2.0 AI Engine for more reasons than one,” said Jon Gowa, CEO and Founder of Bloom. “The new AI increases the speed of our machine while also opening the door to support a wide range of third-party applications and equipment.”

The AI performance leap is powered by a confluence of machine learning advances and an ever-expanding database of images collected through years of R&D. Updates to the system’s graphics processing unit (GPU) also enabled the update.

The Bloom trimming system works by manicuring the flowers before their removal from the stem using a robotic arm and cameras to visualize which leaves to remove. The machine shears the leaves cleanly and prevents the overhandling common to traditional, hand-trimming methods.

With cannabis processing expenses estimated at more than 20% of total cultivation costs, the faster AI may save Bloom’s clients millions in the coming years. Increasing price pressures make operational efficiencies critical for cannabis cultivators, and Bloom’s advancements lower labor costs while maintaining top quality.

Non-cannabis applications could include ripeness assessment for fruits and vegetables, as well as automated harvesting.

For more information about Bloom Automation or the Bloom Artificial Intelligence Engine 2.0, contact Shannon Hagerty, Marketing and Business Associate, at info@bloomautomation.com.

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