Detroit Delays Vote on Adult-Use Regulations

3/25/2022

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The Detroit, Michigan City Council has again delayed a vote on its long-awaited adult-use cannabis regulations until April 5, MJBizDaily reports. Detroit first approved an initial set of rules in November 2020, but a residency requirement – the Detroit Legacy Applicant – in the ordinance was challenged in court in early 2021, delaying any action by the council; however, a judge recently tossed the residency requirement on the grounds it was “likely un-Constitutional.”

The council only began the rule revamp last month, says MJBizDaily.

The new plan includes the approval of 100 cannabis licenses, up from 76, half of which are reserved for social equity applicants. This is a change from the scrapped plan which said 50% of the licenses must go to so-called legacy applicants. At the time the ordinance was passed in 2020, Mayor Mike Duggan (D) called the residency requirement “by far the most controversial provision.” The city will not issue a license to any business unless half of the licenses in that category are Detroiters.

Although the language is different, the defunct legacy provision and the addition of social equity stipulations in Detroit’s adult-use regulations may accomplish the same goals. The suggestion that applicants must be from Detroit was included to correct the harms caused to Michigan communities by the war on drugs. Notably, Detroit City Councilman James Tate said in 2020 that the inclusion of the legacy program “was imperative” for officials to right the wrong.

“We have individuals who are making a very good living on marijuana today,” Tate said. “The same plant that created this situation of mass incarceration around our country in the city of Detroit, so this is an opportunity for us.”

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Japan Sees Record Number of People Involved in Cannabis Crimes Last Year

3/25/2022

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Japan saw a record 5,482 people involved in cannabis-related criminal cases last year, an increase of 448 the previous year, with 70% of offenders in their 20s or younger, Kyodo News reports. Overall, 5.6 individuals per 100,000 people were involved in cannabis-related offenses in 2021, which is nearly double the 3.0 rate in 2017.

Among all of the cases, 4,537 were for possession, 273 were for distribution, and 230 were for cultivation, the report says. In all, police confiscated about 726.9 pounds of cannabis in Japan in 2021.

Among the offenders, 186 were high school students, eight were in junior high school, with the youngest offenders aged 14; 2,823 individuals involved in cannabis offenses were in their 20s and 994 were under 20-years-old, according to National Police Agency data outlined by Kyodo News.

By age group, 14.9 per 100,000 people under 20-years-old were involved in cannabis cases, up from 4.1 in 2017, while 23.6 per 100,000 people in their 20s were involved, up from 9.4, according to police data.

In a survey of 829 drug offenders by the National Police Agency, more than 70% said they did not believe cannabis is harmful, the report says.

The number of all drug offenders in Japan did fall overall last year to 13,862 – a decrease of 217. The majority of cases last year, 7,824, were for “stimulant drugs,” such as amphetamine or methamphetamine, which is a decrease of 647 from the year prior.

Japan’s Cannabis Control Act criminalizes the import, export, or cultivation of cannabis and simple possession carries a sentence of up to five years, according to the law firm Ohara & Furukawa. Possession with the intent to profit is punishable by up to seven years imprisonment and/or up to a 2,000,000 yen fine. Growing, importing, or exporting cannabis in Japan can be punished with up to seven years in prison, and engaging in any of those acts with the intent to profit carries a punishment of up to 10 years imprisonment.

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Pennsylvania Medical Cannabis Flower Prices Fall but Patients Not Seeing Relief

3/25/2022

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The average wholesale price per gram for medical cannabis flower in Pennsylvania has declined 36% since the start of 2020 but the average retail price paid by patients is down just 14% over that same period, according to a Philadelphia Inquirer report. John Collins, the outgoing executive director of the state Office of Medical Marijuana (OMM), called the discrepancy “a red flag that needs to be investigated.”

At the beginning of 2020, the average price of medical cannabis was $10.19 per gram which fell to $6.56 last month; the average price paid by patients at the beginning of 2020 was $15.67 per gram, and that average price dropped about $2.20 last month to $13.40 per gram.

During a meeting of the Pennsylvania Medical Marijuana Advisory Board, Collins said there wasn’t much the OMM could do about the price discrepancy.

“We can’t particularly force a price point. Dispensaries take title to the product and have the right to price it. What we can do to encourage more competition is to put a spotlight on it like we’re doing today.” – Collins, during the meeting, via the Inquirer

In an email to the Inquirer, Jeff Riedy, executive director of the Lehigh Valley chapter of the NORML, said advocates have long been seeking officials to act on “excessive pricing,” noting that the director’s “acknowledgment of pricing inequities exemplifies that industry players are concerned more about profits and less about helping” the state’s 400,000 active medical cannabis patients.

The state Health Department does have the legal authority to cap medical cannabis prices, but has so far declined to do so, the report says.

Meredith Buettner, executive director of the Pennsylvania Cannabis Coalition said Collins’ remarks “fail to recognize the regulatory reality of operating in Pennsylvania” and said the high prices are due to duplicative product testing requirements, the inability of operations to remediate contaminated cannabis into something else they can sell, and other regulatory factors.

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Denver’s First Social Equity Consumption Lounge Receives License

3/24/2022

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Tetra Lounge in Denver became the first social equity applicant to be licensed as a cannabis consumption lounge this week, pending inspections, according to a 9NEWS report.

Such lounges used to operate in Denver but after cannabis industry reforms in 2021, private companies were required to secure a license from the city to allow on-site consumption. Previously, Tetra Lounge had operated as a consumption lounge but had to close its doors following the new license requirements — after finally getting the license on Monday, however, owner Dewayne Benjamin told 9NEWS that he hopes to have the lounge open for business by 4/20.

“Getting the license really gives us the foundation to grow and keep establishing new experiences within the cannabis hospitality realm. There’s still a lot of financial aspects that kind of hinder a lot of businesses, but having the opportunity and the input into the industry I think is going to be very beneficial especially with new markets.” — Benjamin, in the report

Tetra Lounge will accept patrons at three different membership levels: daily membership will cost $20, monthly membership will cost $50, and annual membership will cost $350. The business will operate on a BYOC model, or “bring your own cannabis.”

Denver is currently issuing new cannabis licenses with an initial focus on social equity applicants. Two other proposed social equity establishments — the Patterson Inn and the Denver Weed Lounge — are still being considered by the city.

Meanwhile, the Tetra Lounge is set to join Denver’s only other operating cannabis lounge, The Coffee Joint, which received its license last week despite not being a social equity applicant because the city rules also prioritize pre-existing cannabis companies —The Coffee Joint was initially licensed by the city in 2018.

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Medical Cannabis Sales in Arkansas Top $21.1M in February

3/24/2022

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Medical cannabis sales in Arkansas totaled $21.1 million in February, an increase of more than $500,000 over January’s sales, according to state Department of Finance and Administration (DFA) figures outlined by Talk Business & Politics. The state collected $2.333 million in tax revenues from February sales – up from $2.309 million collected the previous month.

Since the first dispensary opened in Arkansas in May 2019, patients have purchased about 80,000 pounds of medical cannabis and the state has collected $62.525 million in taxes, which include a 6.5% sales tax and a 4% privilege tax on sales from cultivators to dispensaries, the report says. Most of the revenues are earmarked in the University of Arkansas for Medical Sciences National Cancer Designation Trust Fund.

DFA Spokesman Scott Hardin told Talk Business & Politics that medical cannabis sales “really started to increase beginning March 2021 through early fall.”

“We anticipate stimulus funding played a role. Although sales remain fairly strong today, we are not seeing the levels reached in spring and fall last year.” – Hardin to Talk Business & Politics

The Arkansas Department of Health reported 82,410 active patient cards in February, a slight decrease from 82,696 active patient cards in its January report.

Earlier this month, the state’s 38th licensed dispensary opened in Van Buren, and Hardin described the market in central Arkansas as “very competitive,” noting that there are now seven dispensaries within 30 minutes of Little Rock.

“As a region, northwest Arkansas leads the state with almost 800 pounds sold in February through the Fayetteville and Bentonville dispensaries,” Hardin said.

Natural Relief Dispensary in Sherwood reported the most February sales with 372 pounds, while The Releaf Center in Bentonville was second with 299 pounds, according to state data.

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Local Cannabis Possession Reforms Advance In Tuscaloosa, Alabama

3/24/2022

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The Tuscaloosa, Alabama City Council Public Safety Committee on Tuesday approved a measure proposed by the city’s police chief that would lower penalties for low-level cannabis crimes to a simple citation, according to a Patch report. Under the measure, second-degree cannabis possession, improper identification, possession of drug paraphernalia, and other low-level misdemeanor offenses would be reduced to citations.

Under current law, those charged with second-degree possession of cannabis face a maximum penalty of 180 days in the county jail and a fine not to exceed $500.

Tuscaloosa Police Chief Brent Blankley said law enforcement officials believe low-level cannabis possession and other crimes covered under the proposal “can be handled with a ticket” and would save officers time. However, he told the council that individuals who “fight or run” from police would still go to jail for the offense.

“Officers will still use officer discretion and it’s just like an open beverage [citation] we do now. It’s the same basis as that, so we’re hoping if you do have a dime bag in your car, we’ll pull you over and we’ll give you a ticket and you go on your way.” – Blankley to Patch

Under state law, those found guilty of misdemeanor cannabis possession face up to a year in prison and fines up to $6,000; the state spends $22 million in taxpayer money every year enforcing cannabis laws, the report says.

Blankley told Patch that he thinks the council “is in favor” of the proposal.

“We’re always trying to be innovative at the police department and this has always been something that’s weighed on us in the past,” he said. “Not as many people will actually go to jail and there is always overcrowding, so we think this will be much better for the community.”

The measure is expected to be considered by the full council next week and City Attorney Scott Holmes said that if it passes, the reforms would take effect June 1 or July 1.

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Maine Legislative Committee Advances Three Medical Cannabis Bills

3/24/2022

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The Maine Legislature’s Veterans and Legal Affairs Committee has advanced bills to ensure patients have access to telehealth services, allow caregivers to sell plants to patients, and asks for a legislative review of any patient privacy changes made by the Office of Marijuana Policy (OMP), according to a WABI report. Paul McCarrier, a member of the Cannabis Council of Maine, told WABI that the OMP was “working with the community and listening to us.”

He said the agency wants to collaborate “to keep the prices for patients fair and low and to make sure that patients can continue to access that therapeutic cannabis.”

This is the second iteration of the rules authored by the OMP after the first draft was scrapped due to industry outcry. The OMP has created a 17-member workgroup to help streamline licensing and compliance and to align the system more with state law, the site wrote in their report.

McCarrier said he appreciates the work the legislature has done to recognize medical cannabis and said the OPM will create a digital medical cannabis card similar to other digital forms of identification like insurance cards or other medical cards.

Maine is currently blocking the out-of-state ownership of medical cannabis businesses after a federal judge ruled the state had to begin granting cannabis licenses to out-of-state owners. Maine officials agreed to permit out-of-state owners for adult-use licenses, but have continued to block the cohort from their medical cannabis system.

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Iowa Republicans Reject Bid to Add Adult-Use Cannabis Amendment to Drug Reform Bill

3/24/2022

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Senate Democrats in Iowa attempted, unsuccessfully, to tack on an adult-use cannabis amendment to a bill concerning heroin penalties, Iowa Starting Line reports. The proposal was struck down without a hearing because it wasn’t related to the bill being debated.

The proposal, which would have amended the state constitution but eventually leave the final decision to voters, was introduced by Sen. Joe Bolkcom, who described Gov. Kim Reynolds’ (R) and Senate Republicans’ failure to even debate the issue or explain why they oppose the reforms as “insulting.” He also emphasized that cannabis prohibition disproportionately impacts Black Iowans and their families.

“You should tell Iowans why you don’t trust them to have legal access to marijuana like tens of millions of other Americans.” – Bolkcom, during the debate, via Starting Line

State Sen. Jackie Smith (D) said that the state would see $60 million to $100 million annually were the state to legalize cannabis for adults.

“Nineteen states now regulate marijuana like recreational alcohol. We’re surrounded by them,” she said during the debate. “And it was the voters in South Dakota that spoke during the 2020 elections to approve of marijuana use for adults. So I think giving voters a voice on this is what they want.”

A Des Moines Register/Mediacom Iowa poll from March 2021 found 54% of Iowa adults support the reforms, with 39% opposed and 6% unsure. The numbers are similar to a March 2020 poll, which found 53% support for broad legalization in the state, with 41% opposed.

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Lolita Korneagay: Demystifying Cannabis for Medical Professionals

3/23/2022

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Despite the medical cannabis industry’s rapid development, medical professionals are still entering the workforce with minimal cannabis knowledge and most are woefully unprepared to handle cannabis-related questions from their patients.

That was the starting point for Cansoom, which was founded by a medical professional, for medical professionals, to bridge the gap between the modern medical industry and the burgeoning cannabis movement. We recently interviewed Cansoom’s founder Lolita Korneagay about the company’s founding, building the curriculum for her educational programs, her inspiration to continue learning and teaching about the medicinal properties of cannabis, her advice — and new coaching course — for hopeful cannabis entrepreneurs, and more!

Find the full interview below:

Ganjapreneur: What inspired you to create Cansoom?

Lolita Korneagay: The inspiration for Cansoom comes from a personal need. Around 2012, I was diagnosed with multiple medical issues that caused severe pain, which had a significant impact on my quality of life. I tried everything to minimize the pain, including medical devices, high dosage pain pills, and invasive surgery. Nothing seemed to work. So eventually, I tried cannabis.

At first I was very hesitant to try a drug that had so much stigma attached to it. My entire life, I was told that cannabis is a drug and drugs are bad. But I knew that cannabis had medicinal properties that have been proven to help a wide variety of diseases and ailments. So I took the leap and began testing different dosages in order to create a treatment plan for myself. When I found my minimum effective dose, I was finally able to control my pain.

While I was doing research, I realized that my nursing education did not teach me about the endocannabinoid system, which is the foundation for using cannabis as a medicine. So I spent weeks learning about how it works and the role that cannabis can play in creating homeostasis within our body. This is when I realized that more medical professionals needed to learn this information and Cansoom was created.

Cansoom was founded on the idea that medical professionals, such as nurses, would go through training to become medical Cannabis Consultants, and then they would act as a conduit to pass along their medical cannabis expertise to their communities.

How did you build the curriculum for the Medical Cannabis Consultant program?

It took a lot of old-fashioned research to create the Cansoom curriculum. I attended cannabis conferences and took copious notes when I heard experts speak, I bought and read countless books that focused on the medical uses for cannabis, and I took a couple of classes to learn about the endocannabinoid system.

The biggest issue that I had while creating the curriculum was that there just wasn’t a lot of creditable information available at that time. So I had to really take my time to ensure that I was learning the proper information before I taught it to other people. This process took about a year.

Going through the tedious process helped me shape the curriculum because I wanted to make learning about cannabis easier. As a nurse, I knew that most medical professionals needed a comprehensive course that didn’t take a long time to complete. So that’s what I created. When I first launched in 2017, the Cansoom curriculum was the most comprehensive in-person training program that taught licensed medical professionals about medical cannabis.

Our understanding of the cannabis plant is growing quickly. Do you continue learning and developing the curriculum to reflect new findings?

Absolutely! I update my book, The Medical Cannabis Consultant’s Handbook, as the laws change and when new scientific discoveries are made. I especially like to learn and teach about the new cannabinoids that are being synthesized from hemp. These cannabinoids, like D8 and D10, are 100% legal and can provide some of the same benefits of D9. It’s important to me that my students know as much about the plant as possible so I always want to make sure that I stay on top of any new discoveries.

What do nurses, doctors, and therapists do next after completing the Medical Cannabis Consultant program?

After completing the Cansoom Medical Cannabis Consultant program, the possibilities for medical professionals are almost limitless. My program provides them with the foundational knowledge to enhance their current careers or start their own businesses.

Some of my previous students have started medical cannabis consulting businesses, written cannabis-related books, become cannabis influencers, produced cannabis-infused products, become cannabis advocates, started ancillary cannabis businesses, and they have become industry speakers.

I always tell my students that the cannabis industry is still new and you can create your own lane within it. I recommend that they find a way to combine their passion and professional knowledge to create a cannabis side-hustle, business, or career that they love.

When did you build the 12-week Cash In On Cannabis coaching program?

Since the beginning of Cansoom, my students have asked me for a course that taught them about the business-side of the cannabis industry. I’m a serial entrepreneur, so I know that the process of launching a new business is not as easy as it seems. Since I launched Cansoom five years ago, I’ve developed a set of processes and strategies that are tested and proven to work time after time.

This year, I decided that it was time to share my system with the world and so I launched the Cash In On Cannabis coaching program. It’s a 12-week coaching program that guarantees a student will launch their business idea within a month of completing the program.

What is the most valuable thing that students will take away from the coaching program?

I designed the program to overcome the biggest challenges I’ve seen people get stuck with and that I’ve had trouble with myself…things like choosing software programs, creating sales strategies, having a plan to follow, and being held accountable. So the most valuable thing that students will take away from participating in the program is that they will have a proven blueprint to follow that they could use for many years to come. They will know that they can do it and have the support they need to get it done.

What inspired you to plan the first Cansoom Medical Cannabis Conference?

Pre-pandemic all of my training classes were held in person in Los Angeles. During each class, everyone would always have such a good time and I would literally have to push people out of the door at 5 pm. The networking that occurred during the training classes was one of the valuable benefits of joining the Cansoom community of consultants. So my students started to ask for more time together.

Originally, I created the Cansoom Medical Cannabis Conference as a way for my previous students to continue to learn about cannabis while connecting with each other. The first conference in 2020 was a huge success with students from all over the country convening in Las Vegas for two days. We had so much fun and a lot of friendships were made that weekend.

Are there any new events or educational offerings on the calendar at the 2022 Conference?
We are still in the planning stages, but one of the benefits of completing the Cansoom program is that all students are encouraged to apply to speak at the conference. I want to help any of my students who want to launch speaking careers by giving them a platform to speak on. Therefore, I accept speaker proposals from my students before searching for speakers outside of the community.

I’ve been watching some of my student’s cannabis-careers mature and we have some stellar students with amazing niches and points of view. Such as Jasyra Hines, who teaches women how to improve their health with cannabis. Or Erica Danielle who teaches women how to medicate, masturbate, and meditate.

Who can attend the Conference?

Now that it is becoming safe to gather in large groups again, I plan on hosting the next conference later this year and I will open up to the general public, but the target audience will be licensed medical professionals.

As someone who left a high-profile career to build your own successful business, what is one essential piece of advice for a hopeful entrepreneur?

Outwit. Outplay. Outlast. Yes, that’s the motto from Survivor but it’s also what you must do to be a successful entrepreneur. Use your creativity to outwit your competition. Create strategies to outplay them. And if you can outlast them, you win!

Thank you, Lolita, for answering our questions! Our readers can visit Cansoom.com for more info.

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Federal Bill Would Instruct UN to Deschedule Cannabis

3/23/2022

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A bipartisan federal bill introduced last week would instruct the United Nations (U.N.) to deschedule cannabis from its Schedule 1 status in the Single Convention of Drugs of 1961 and treat it as a commodity similar to other agricultural products.

Republican Rep. Nancy Mace (S.C.) said that were the U.N. to deschedule cannabis, many other countries would reevaluate their own classifications of the plant.

“Cannabis has been shown to be effective in the treatment of numerous medical conditions such as epilepsy, PTSD, cancer pain relief, nausea, and chronic and terminal illnesses. Descheduling at the U.N. would support global research into how cannabis can treat a wide range of ailments and conditions.” — Mace in a statement

Democratic Rep. Barbara Lee (CA) said that cannabis’ classification “as a schedule one drug is outdated, out of touch, and should be addressed not only in the United States but around the world.”

“Scientific research has shown that cannabis has wide-ranging positive effects on chronic illness treatment,” she said in a statement. “The United States should be leading the way on cannabis reform on the global stage, and descheduling at the United Nations would be a great start.”

Mace is also the sponsor of the States Reform Act which aims to end the federal prohibition of cannabis in favor of a tax-and-regulate model similar to alcohol. That bill has the backing of retail giant Amazon.

“Like so many in this country,” Amazon Public Policy wrote on Twitter, “we believe it’s time to reform the nation’s cannabis policy, and Amazon is committed to helping lead the effort.”

In 2020, the U.N. Commission for Narcotic Drugs voted to reclassify cannabis’ status under the 1961 Single Convention and remove medical cannabis from Schedule IV but stopped short of declassifying the plant.

A 2018 report by the International Drug Policy Consortium found that the U.N.’s ‘war on drugs’ has not reduced the rates of drug use but has negatively affected human rights, health, security, and development around the world. Specifically, the report argues that the last decade of drug law enforcement led to heightened violence against police and civilians and the mass incarceration of otherwise innocent people.

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Cresco Labs to Acquire Columbia Care in $2B Deal

3/23/2022

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Cresco Labs has agreed to acquire Columbia Care Inc. in a deal worth $2 billion, making the firm largest multi-state operator in the U.S. with a pro-forma revenue of more than $1.4 billion.

The deal, which still requires regulatory approval, gives the company more than 130 retail stores throughout 18 states – the second largest in the industry and the largest footprint outside of Florida. On a pro-forma basis, Cresco said it expects to have annual revenues in excess of $100 million in eight different states by 2023.

Charles Bachtell, CEO of Cresco Labs, said the “acquisition brings together two of the leading operators in the industry, pairing a leading footprint with proven operational, brand and competitive excellence.”

“The combination is highly complementary and provides unmatched scale, depth, diversification and long-term growth. … [and] accelerates our journey to become the leader in cannabis in a way no other potential transaction could.” – Bachtell in a press release

Nicholas Vita, CEO of Columbia Care described the deal as a “historic moment.”

“With Columbia Care’s strategic national footprint in the most attractive markets and Cresco Labs’ success in execution and incredibly popular brands, we will together create the most important – and the most investable – company in cannabis,” he said in a statement.

The transaction has been unanimously approved by the boards of directors of each of Cresco Labs and Columbia Care.

Independently, the companies currently have the top share positions in four markets – including Illinois, Pennsylvania, Colorado, and Virginia, and a number two share in Massachusetts. The companies also said they have a pathway to a top-three position in New York, New Jersey, and Florida, which bring the combined company to a material market position in seven of the top 10 markets by revenue in 2025, according to cannabis industry analytics firm BDSA’s top-10 largest and fastest-growing markets by 2025, representing approximately 55% of the U.S. population and over 70% of the addressable cannabis market.

The transaction is the second-largest in the history of the U.S. cannabis industry – behind the $2.1 billion takeover of Harvest Health and Recreation by Trulieve Cannabis Corp. in October 2021.

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Alabama Bill Would Require Women to Submit Pregnancy Test Before Purchasing Medical Cannabis

3/23/2022

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A bill introduced in the Alabama Senate would require women of child-bearing age to submit a negative pregnancy test prior to buying their doctor-recommended medical cannabis, according to a Growth Op report. Under the proposal, women between the ages of 25 and 50 would be required to submit the negative test at least 48 hours before buying medical cannabis.

The pregnancy tests must be administered by a doctor or a state-certified lab, according to the report. If she becomes pregnant, a woman must “report her pregnancy status to her registered certifying physician and shall be prohibited from obtaining medical cannabis throughout the pregnancy.”

Sponsored by Alabama state Sen. Larry Stutts (R), the proposal “prohibits breastfeeding women from purchasing medical cannabis unless as a registered caregiver.” Additionally, the legislation adds a 305-meter buffer between medical cannabis dispensaries and schools, daycares, home daycares, and colleges.

Commenting on a case in Arizona in which the state charged a woman with child neglect for using medical cannabis, National Advocates for Pregnant Women wrote in a statement last summer that “Peer-reviewed scientific research does not support the conclusion that prenatal exposure to marijuana causes harm or creates risks of harm different or greater than exposure to many substances as well as medications prescribed to pregnant women.”

Oklahoma tried a similar change in 2018, but the call for a pregnancy test was eventually removed, the report says. If passed, the measure would take effect on the first day of the third month after passage.

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Aurora Cannabis Acquires TerraFarma Inc. in $38M Deal

3/23/2022

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Canadian firm Aurora Cannabis Inc. announced on Tuesday it had acquired Thrive Cannabis parent company TerraFarma Inc. in a cash and stock deal initially worth $38 million. Thrive will also be eligible for up to $20 million in shares, cash, or both if it reaches revenue targets within two years of the transaction.

Thrive is best known for its flagship adult-use brand, Greybeard Cannabis Co., which was recognized as the top-recommended brand by Canadian budtenders in 2021 and was the 2021 winner of Best Concentrate from the Kind Magazine Awards, as voted for by budtenders.

Aurora CEO Miguel Martin described Thrive’s track record as “seldom found elsewhere in the Canadian market.”

“They are truly exceptional cultivators who have gained trust with consumers and developed products that have been recognized and acclaimed by Canadian budtenders and industry peers. We see a unique opportunity to leverage their expertise to deliver near and long-term benefits for both our recreational and medical markets.” — Martin in a press release

Geoff Hoover, Thrive CEO, said the combining of the companies “will be transformative.”

“We are excited to be joining a team that shares our vision for delivering the highest quality, premium cannabis products to consumers in a way that generates sustainable profitability,” he said.

The transaction is expected to close, subject to customary closing conditions, in Aurora’s fiscal Q4 2022 and the firm anticipates that the deal will provide immediate positive adjusted EBITDA to Aurora, and support the company’s path to adjusted EBITDA profitability in the first half of fiscal 2023.

“This transaction supports our path to profitability while ensuring that we are strategic in our M&A activity,” Martin said in a statement. “Thrive’s achievement of positive standalone EBITDA, combined with their exceptional operational and brand capabilities, truly set them apart, and we look forward to leveraging their expertise as we embark together on Aurora’s path to profitability.”

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Adult-Use Cannabis Sales Will Launch in New Mexico on April 1

3/22/2022

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New Mexico’s first adult-use cannabis shops will open in the state on April 1, the Santa Fe New Mexican reports. Kristen Thomson, director of the Cannabis Control Division of the New Mexico Regulation and Licensing Department, said that the agency does “not have concerns about lack of product” in the nascent days of the state’s program.

“We really expect that first day of business to be filled with excitement. …  As with any new gadget or restaurant or something opening, some products may come up short, but we do not anticipate a massive statewide shortage of product on opening day.” – Thomson to the New Mexican

Thomson said that state officials have already approved 225 adult-use licenses, including some integrated licenses for businesses that produce, manufacture, deliver, and sell cannabis products and that some of those licenses cover more than one site.

The state’s law does require retailers to set aside 20% of their products for the medical cannabis program – which has nearly 132,000 enrolled patients as of February, according to state Department of Health figures outlined by the New Mexican. Emily Kaltenbach, senior state director of the Drug Policy Alliance, said that medical cannabis patients may have “more of a concern” about running out of product than adult-use customers.

Josh Foley, manager of a Pecos Valley Production dispensary, told the New Mexican he thought a shortage could occur in a few months but that his company is trying to store at least $500,000 worth of product to get them through “the first couple of months.”

Duke Rodriguez, president and CEO of New Mexico Top Organics-Ultra Health, the state’s largest medical cannabis company, said he has concerns over provisions in the state law that caps plant production at 20,000 per grower but allows an unlimited number of retail licenses.

“We will probably need to pare back as many as 100 locations,” he predicted, “and there will be a lot of small business that will be hurt very badly.”

Thomson said that the launch of sales could be blunted as some retailers are still navigating local rules and awaiting final municipal approval.

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Florida Judge Exonerates Doctor Accused of Violating Medical Cannabis Law

3/22/2022

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A Florida administrative law judge last week ruled that Dr. Joseph Dorn didn’t do anything wrong when he ordered medical cannabis for two undercover investigators posing as patients, the Tallahassee Democrat reports. The state Department of Health (DOH) had sought to revoke Dorn’s medical license for five years, permanently ban him from recommending medical cannabis, and impose a $10,000 fine.

The Health Department had alleged Dorn violated state law by not performing physicals on the undercover agents who posed as patients seeking medical cannabis cards, which they called employing a “trick or scheme” in the practice of medicine.

Dorn has practiced medicine in Florida for more than 30 years and the allegations stem from a 2019 complaint related to the sting.

In his order, Administrative Law Judge W. David Watkins recommended that the complaint against Dorn be dismissed, saying that health officials “failed to present competent substantial evidence, in this case, establishing … that Dr. Dorn acted, or failed to act, in any manner to defraud or trick any patient, or that any patient was actually defrauded or tricked,” according to the Democrat report.

“The evidence of record undermines DOH’s argument that Dr. Dorn’s practice is nothing more than an ‘open gate’ to medical marijuana. In the case of both [undercover agent] O.G. and [undercover agent] B.D. (and presumably the other 28 patients examined), Dr. Dorn conducted a detailed and thorough assessment of the patient’s condition prior to prescribing medical marijuana. Furthermore, the preponderance of the competent substantial evidence in this case demonstrates that Dr. Dorn performed a meaningful review of O.G. and B.D.’s medical history and symptoms, identified and discussed their qualifying stressors, and noted the PTSD (post-traumatic stress disorder) symptoms being experienced by each.” – Watkins, in his opinion, via the Democrat

Under administrative law, the order will go to the Health Department for final action.

In a prepared statement following the ruling, Dorn’s attorney, Ryan Andrews, accused the state of “inflicting crippling stress and pain” on his client as the doctor continued to treat patients following the investigation. Andrews threatened to take legal action against state officials involved in the complaint.

“This action didn’t sound in good faith and now it’s our turn to seek justice and right this wrong against everyone involved,” Andrews said in the statement. “This entire action against Dr. Dorn is an embarrassment and disservice to the state of Florida. Dr. Dorn is excited to continue treating patients without these baseless and harmful accusations hanging over his head.”

The Health Department did not comment on the ruling.

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Washington Sees More Violence at Legal Cannabis Shops

3/22/2022

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Legal adult-use cannabis businesses in the Tacoma and Seattle, Washington areas experienced a continued trend of violence over the weekend, the Seattle Times reports. The latest incident happened in Tacoma Saturday night after 10:00 pm when an employee at the licensed cannabis retailer World of Weed was fatally shot during an alleged robbery.

Police and firefighters quickly arrived on the scene but were unable to save the man’s life and police are investigating the shooting as a homicide, the Times reports.

Charles Traversie, a neighbor of the shop, told Seattle’s Fox 13 that World of Weed “never had problems before,” but he “knew sooner or later … it was going to probably get hit soon.”

Just two days earlier, on Thursday, an armed employee at a Covington dispensary fatally shot a man who was attempting to rob the store. Earlier that week, another fatality tied to the cannabis industry took place when police got in a shootout with an armed robbery suspect who was fleeing a Belleview cannabis retailer, the Times says.

Adult-use retail cannabis locations have become targets due to the cash-only nature of the business, which is the result of the substance’s Schedule I status under the federal Controlled Substances Act. Consequently, banks, which are regulated by the federal government, must generally avoid accepting cannabis business deposits or processing debit or credit card payments. This lack of access to banking results in the stores accumulating large amounts of cash throughout the day, which makes them inviting targets for armed robbers.

Federal lawmakers have for years attempted to pass the SAFE Banking Act, which would give cannabis businesses access to the federal banking system, but their efforts have so far failed.

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South Dakota Gov. Signs Medical Cannabis and Hemp Bills

3/22/2022

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South Dakota Gov. Kristi Noem (R) last week signed six bills related to medical cannabis and hemp which her office said in a press release are designed to implement “a safe and responsible medical cannabis program that is the most patient-focused in the country.”

The bills include SB24 which places a four-plant limit on home grows, allowing two seedlings and two flowering plants; SB26 which allows physician’s assistants and nurse practitioners to certify patients for the program; SB118 which limits medical cannabis batch testing to 50 pounds; SB21 which requires the state Health Department to provide written notice if it revokes a medical cannabis patient card; and SB119 which allows nursing homes, treatment centers, and mental health centers to impose restrictions on cannabis use within their facilities and includes provisions to allow those facilities to choose not to store and administer medical cannabis to clients and patients.

Noem also signed into law SB201 which allows South Dakota’s health secretary to waive the finger-printing requirements for certain hemp cultivators or owners of the property where hemp is grown. The measure also allows hemp producers and manufacturers to temporarily exceed the 0.3% THC limits during certain phases of CBD production.

The bills ultimately made changes to the medical cannabis law approved by 70% of voters during the 2020 General Election. Noem had previously signed an additional 18 medical cannabis bills into law during the 2022 legislation session, her office said.

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New Hampshire Governor Not Ready to Legalize Cannabis

3/21/2022

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During an interview with WCVB 5 “On the Record” New Hampshire Gov. Chris Sununu (R) said he was still unsure whether the state was ready to legalize cannabis for adult use, although he admitted he likes the bill currently being considered by lawmakers.

Sununu said that he doesn’t think it is the right time to legalize cannabis in the state as officials have just gotten the opioid crisis under control. He noted that New Hampshire is the only state that did not see an increase in opioid-related deaths last year.

“If you’re gonna do it, that’s the way to do it. But I just think we’re seeing – we’re the one state that’s seeing really positive results [from efforts to address the opioid crisis] – we’ve got a long way, of course, I mean almost 400 people died last year [from opioids]. The rest of the country has doubled their opioid deaths, we’re down 18% in the past three years.” – Sununu on “On the Record”

Both of New Hampshire’s border states, Massachusetts and Vermont, have legalized cannabis for adult use. Sales to adults began in Massachusetts in 2018 while Vermont’s initial bill in 2018 legalized possession and use but not sales – a separate bill to allow sales was passed by Vermont lawmakers in 2020 but sales have yet to commence in the Green Mountain State.

New Hampshire lawmakers in 2017 approved a bill to decriminalize possession of up to three-quarters of an ounce of cannabis – which was signed by Sununu – while the state House of Representatives approved a broad legalization bill in January. The passage marked the fourth time in three years the lower chamber has approved the reforms.

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Jointly Now Offering Cannabis to Employees As Wellness Benefit

3/21/2022

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The cannabis wellness and technology firm Jointly announced today that it will reimburse its employees up to $150 per month to support purposeful cannabis consumption under a new wellness benefits program. All cannabis products must be purchased from a legal source to qualify for reimbursement, and employees will also be able to get reimbursed for other traditional wellness-related expenses including gym memberships and yoga classes.

According to a press release, the program “sets a new standard for retaining and attracting top talent” even as record numbers of Americans have resigned or otherwise left their jobs within the last year.

Jointly is a cannabis wellness platform utilizing data from a proprietary, cannabis-focused wellness app to help consumers monitor their cannabis experiences and establish a scientifically calculated cannabis wellness plan. Since launching the app in 2020, its users have logged and tracked more than 200,000 cannabis experiences and conducted reviews for tens of thousands of legal cannabis products, according to the release.

In a statement to Ganjapreneur, Jointly CEO and Co-Founder David Kooi said the company had been working with its tax, accounting, and employment teams on the new wellness benefits program since November. “Ultimately, we could not find reason to believe that reimbursement for lawful cannabis consumption as part of a company wellness benefit is problematic,” he said.

“As a cannabis wellness company helping people reach their full potential through purposeful cannabis consumption, it made perfect sense for Jointly to push forward with this benefit. We encourage other companies to join us. We know purposeful cannabis consumption can be good for your well-being — and happy and healthy employees make for better employees.” — Kooi, in a statement

“This new benefit … provides employees with a budget to pursue better wellbeing, with the option of including purposeful cannabis consumption,” said Jointly Co-Founder and CDO Eric Gutshall. “This first of its kind program is not only aligned with Jointly’s core mission and beliefs but also helps break the stigma and start a new conversation around cannabis and wellness.”

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U.S. Officials Have Had No Access to Brittney Griner Since Her Arrest In Russia

3/21/2022

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U.S. State Department Officials still have not had access to WNBA All-Star Brittney Griner since her February 17 arrest in Moscow, Russia on drug charges, ESPN reports. A State Department official told ESPN that the agency insists the “Russian government provide consular access to all U.S. citizen detainees in Russia, including those in pre-trial detention, as Brittney Griner is.”

A source close to Griner told ESPN last week that “We know she’s OK.”

“I wouldn’t say she’s ‘good,’ but she’s OK,” the source told ESPN.

Griner was arrested after Russian Customs officials allegedly found cannabis vape cartridges when she entered the country. She appeared in court on Wednesday for a hearing during which prosecutors were granted an extension until May 19 for their pre-trial investigation, the report says.

According to Tom Firestone, a former U.S. Department of Justice resident legal advisor to the U.S. Embassy in Moscow, under Russian law, defendants may be held for 12 months before trial, and up to 18 months in extraordinary cases.

“We are closely engaged on this case and in frequent contact with Brittney Griner’s legal team … We have repeatedly asked for consular access to these detainees and have consistently been denied access. Russia must abide by its legal obligations and allow us to provide consular services for U.S. citizens detained in Russia. We take our responsibility to assist U.S. citizens seriously, and we will continue to press for fair and transparent treatment for all U.S. citizens when they are subject to legal processes overseas.” – a State Department official to ESPN

On Thursday, Russian media reported that one of Griner’s attorneys motioned to have her transferred from jail to house arrest under the care of a local acquaintance – her representatives do not expect that request to be granted, the report says. Griner’s case is further complicated by the fact that two other Americans, Trevor Reed and Paul Whelan, have been in Russian custody for more than two years.

In the U.S., Griner plays for the Phoenix Mercury and has played for Russia for the last seven years during the winter offseason, earning $1 million per season, which is more than four times her WNBA salary. Griner, 31, has also won two Olympic gold medals with the U.S., a WNBA championship with the Mercury, and a national championship at Baylor.

The Russian Federal Customs Service issued a statement on March 5 indicating that it had opened a criminal investigation into the large-scale transportation of drugs, which in Russia can carry a prison sentence of up to 10 years, but the statement did not name Griner.

The U.S. State Department has issued a “do not travel” advisory for Russia because of its invasion of Ukraine and the agency urged all U.S. citizens to depart the country immediately, saying there is “the potential for harassment against U.S. citizens by Russian government security officials” and “the Embassy’s limited ability to assist” Americans in Russia.

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Georgia Judge Stops Prosecutions of Hemp-Derived THC Sales

3/21/2022

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A Fulton County, Georgia Superior Court Judge last week issued a 30-day restraining order against Gwinnett County District Attorney Patsy Austin-Gaston from prosecuting people for selling or possessing delta-8 and delta-10 THC extracts, the Associated Press reports. The order comes following a February 22 raid on Elements Distribution, a smoke shop distribution company based in Gwinnett County, which led to the seizure of around $2 million worth of products despite law enforcement officials not pressing any charges or making any arrests.

In his order, Fulton County Superior Court Judge Craig Schwall voiced concerns about whether Austin-Gaston “may or may not be a rogue DA.”

“I think there may be some prosecutorial priorities misplaced.” – Schwall, in his order, via the AP

Austin-Gaston said in January that possessing, selling, or distributing delta-8 and delta-10 products are felony offenses and subsequently directed raids of at least two distributors, seizing millions in inventory; it’s unclear whether the action against Element was at her behest.

Attorney Tom Church, a trial attorney with Pate, Johnson & Church who is representing companies that were raided and vape shops that have not yet been raided, sued Austin-Gaston and the state and asked a judge to determine that hemp-derived THC products, CBD, CBN, and CBG are legal in Georgia.

Austin-Gaston has argued that delta-8 products are illegal because the state’s hemp law does not explicitly allow it, as it does low concentrations of delta-9 THC.

Church contends that “the hemp bill basically legalized all cannabinoids, all extracts” save for delta-9.

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California Bill Would Give Tax Credits to Cannabis Retailers

3/18/2022

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A bill introduced in California aims to create tax credits for the state’s cannabis retailers as lawmakers seek to help the industry compete with the unregulated market. State Sen. Scott Weiner (D) said the proposal is necessary due to the high taxes imposed on the industry which leaves legal operators unable to compete.

Under the legislation, legal cannabis businesses would receive a tax credit equal to the amount of the following qualified business expenses: employment compensation, safety-related equipment and services, employee workforce development, and safety training. The measure has the support of the United Food and Commercial Workers (UFCW) Western States Council.

“Our legal cannabis businesses are facing hard times, and it’s time we stepped up to support them. By ensuring their success, we can keep employees working for fair wages in good conditions, we can stop illegal and illicit sales from dominating the market, and most importantly, we can keep cannabis access equitable for all Californians.” – Weiner in a press release

This bill would establish a carryforward cannabis tax credit that is equal to the amount of the qualified business expenditures paid or incurred for in a taxable year, including employee compensation that is equal to or above 150% of minimum wage including benefits, safety-related equipment and services, and workforce development and safety training for employees.

Amber Baur, executive director for the UFCW Western States Council, said the union is backing the bill because it “aligns with that long-held vision by ensuring legal cannabis employers invest in their workers and provide safety for consumers and communities.”

Weiner’s office estimates that legal cannabis sales in California are about half of the $8 million realized in the unregulated market. Due to federal prohibition, cannabis businesses are unable to file for tax deductions and credits related to normal overhead expenses.

The bill, which was introduced last month, is currently in the Senate Rules Committee.

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New Jersey Opens Cannabis Industry Applications Permanently

3/18/2022

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New Jersey has opened applications for adult-use cannabis retail licenses for the second time, NJ.com reports. The permanently open application window began on Tuesday and the Cannabis Regulatory Commission (CRC) will review and score applications as they come in. The CRC opened the process on March 15 and by 4:00, the CRC indicated it received more than 170 applications.

The first applications round opened on December 15, 2021 and included producers, processors, labs and 12 existing medical cannabis dispensaries, the report says.

“Since the portal opened in December, potential cannabis entrepreneurs have been establishing accounts and beginning the application process, so we did not see the flurry of new accounts being set up today as we did on December 15. What we saw were applicants who were already familiar with the system and ready to apply.” — CRC Executive Director Jeff Brown, in a statement

The CRC is behind on issuing licenses, however, missing a self-imposed deadline on February 22 – exactly one year after Gov. Phil Murphy (D) signed New Jersey‘s adult-use cannabis law – to approve licenses. Out of the 12 medical cannabis licensees who submitted applications in December, the CRC said it is reviewing eight, explaining that a handful were missing key information like municipal approvals.

Expecting hundreds more applications to come in, the CRC is planning to “beef up” staffing at the agency, it said in the report. Social equity candidates, businesses with diversity ownership, micro-businesses, and conditional license candidates will be prioritized going forward.

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Researchers Invent Hemp-Based Rebar for Cement Construction Projects

3/18/2022

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Researchers at Rensselaer Polytechnic Institute (RPI) in New York have developed hemp-derived rebar that the team says is more resistant to corrosion and produces a significantly smaller carbon footprint than rebar made from steel, according to a Dezeen report.

The hemp rebar consists of intertwined natural hemp fiber that has been encased in thermoplastic — the result is a strong, highly durable, and corrosion-resistant reinforcement for cement-based construction projects.

Alexandros Tsamis, assistant professor of architecture and associate director of RPI’s Center for Architecture Science and Ecology, said in the report that concrete structures “in environments with high salt concentration” have an expected lifetime of “40-50 years” due to the corrosion of steel-based rebar.

“If the rebar was not corroding, it would be three times that much, and that would create a significant overall contribution to cutting carbon emissions, because you have three times more service life for every single thing you make.” — Tsamis, via Dezeen

While their work has yet to be peer-reviewed, the research team believes the hemp-based rebar will match steel rebar in strength and reliability but will surpass it in terms of environmental impact and overall efficiency, as the hemp rebar can be produced more quickly using a CNC machine that reads digital files to forge, cut, and shape the rebar on-site.

The hemp research is one of the first projects to come from Rensselaer’s new Institute for Energy, Built Environment, and Smart Systems, according to a press release. The researchers are also working to create machines for separating hemp fiber from the plant’s inner, woody core without affecting the material’s overall durability, and to develop sustainable degumming methods and new hemp bio-composite processing methods, according to the release.

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