Canna_Business
4 days ago
How Companies Are Selling THCa Online Without a License:
The 2018 Farm Bill has created a legal loophole for selling THCa online. THCa, which is non-psychoactive until heated, can be sold legally if it tests under 0.3% Delta-9 THC on a dry weight basis. This allows companies to bypass traditional cannabis licensing and state regulations.
Key Points:
2018 Farm Bill: Permits cannabis products with under 0.3% Delta-9 THC.
THCa Products: Non-psychoactive until heated but converts to Delta-9 THC when smoked or vaped.
No License Needed: THCa meets legal THC limits, avoiding the need for a cannabis license.
Consumer Impact: Consumers can buy THCa products online, evading stricter state cannabis laws.
Summary: The 2018 Farm Bill has inadvertently allowed THCa products to be sold legally online by staying within THC limits, despite their psychoactive potential when heated.
For example,
https://www.prestonherbco.com/products/100-ozs
________________________________________________________________________________
Explaining THCa and THC: The 2018 Farm Bill Loophole...
- THCa vs. THC: THCa is non-psychoactive but converts to THC (which causes a high) when heated through smoking, vaping, or cooking.
- 2018 Farm Bill Loophole: The bill legalized hemp with less than 0.3% THC but didnât mention THCa, allowing high-THCa cannabis to be sold legally if it tests below 0.3% THC before being heated.
- Online vs. Dispensary Sales: Both sell THCa-rich cannabis. Dispensaries can sell any THC level, while online sellers must comply with the 0.3% THC limit until the product is heated.
- Decarboxylation: Heating (through smoking, vaping, or cooking) decarbs (converts) THCa into active THC.
doomed
6 days ago
Licence nobody wants⌠The only Canadian canna success stories belong to BC BUD. Been serving Canadians for 60 years counting. Folks donât buy weed from suits. Suits are no good at growing weed. They donât know it. They donât understand it. The are good at selling shares to canna naive suckers but.
Why Canopy Growth Withdraws Penelope, a Sustainable Medical Cannabis Strain
September 4, 2024
Doomed
Canopy Growth Polska Withdraws Popular Medical Cannabis Strain Penelope Due to Quality Concerns.
Canopy Growth Polska is withdrawing its popular medical cannabis strain, Penelope (THC 8%, CBD 7%), due to aging genetics and quality concerns.
Linton bought bunk seeds from private growers when they started Crappy Growth back in the days, not understanding that quality seeds is a must in this business. Linton did not know that you donât get fire from a dog.
While this decision may disappoint patients, the company is working on introducing new strains with similar profiles. This move underscores Canopy Growthâs commitment to quality and patient safety in the Polish medical cannabis market.
The context of the withdrawal of the Penelope variety
Canopy Growth Polska, part of the international Canopy Growth Corporation, has been providing Polish patients with high-quality medical products based on hemp for years. The company is a market leader, and its products are appreciated by both patients and doctors. The Penelope strain, characterized by a balanced content of the cannabinoids THC (8%) and CBD (7%), was one of the companyâs flagship products, offering patients a unique combination of ingredients with therapeutic potential.
Penelope gained popularity thanks to its balanced cannabinoid profile, which is rare on the Polish market. The balanced content of THC and CBD made this strain preferred by many patients who needed support in treating various ailments, such as chronic pain, inflammation, as well as sleep problems or anxiety.
Reasons for Penelopeâs withdrawal
The decision to discontinue Penelope was difficult but necessary for Canopy Growth Polska. The main reason for this decision is the aging of the strain, which has made it more susceptible to quality fluctuations. Over time, the genetics of the plant can weaken, which consequently leads to a decrease in the stability of the product. Especially when you grow from clones as per Crappy Growth. They were selling bunk weed at a premium. No wonder line ups are gone. They have been gone since day 2. For a company whose priority is to provide the highest quality products, this was an unacceptable risk.
Canopy Growth Polska emphasizes that concern for quality and patient safety has always been and remains the top priority. The Penelope recall aims to prevent situations in which the quality of the product could no longer meet the high standards to which Polish patients and healthcare workers have become accustomed.
âThe decision to discontinue Penelope was very difficult for us, as it is a strain that enjoyed huge interest. However, our commitment to providing only the highest quality products forced us to take this step,â says a representative of Canopy Growth Polska.
Canopy Growth Polskaâs response and plans
Although the withdrawal of Penelope may be disappointing for many patients, Canopy Growth Polska does not leave them without support. Intensive work is already underway to introduce a replacement that will be characterized by a similar, balanced THC/CBD profile. The new variety that the company is working on is to not only meet, but even exceed the expectations of patients in terms of quality and effectiveness.
The company also announced the introduction of other medical strains that have a similar profile to Penelope. These products are expected to be available soon, allowing patients who have relied on the balanced effects of THC and CBD to continue their therapy.
âThe process of registering new varieties of medical cannabis in Poland is time-consuming, but we are constantly working to provide patients with appropriate substitutes as quickly as possible. Our goal is to ensure continuity of therapy and support for doctors and patients,â adds the company representative.
The significance of the decision for the medical marijuana market in Poland
The withdrawal of Penelope from the market is a significant event for medical marijuana patients in Poland. This strain, due to its unique properties, was often the first choice for people starting cannabis therapy. But many return the product. Sales kept going down. The word was out on the web. News travel fast. Now they will have to look for alternatives, which can be a challenge, especially in the context of the lack of products with a similar profile on the market. They will do what Canadians did⌠purchasing next day shipping on the net⌠easy, cheap, best, fast.
This decision may also affect the dynamics of the medical marijuana market in Poland. Other producers may start introducing strains with a similar composition to the market to meet the demand for products similar to Penelope. On the other hand, Canopy Growth Polska, through its announcements, is trying to maintain its leadership position by preparing new strains that are supposed to meet the needs of patients.
Good luck with thatâŚ🤣
doomed
7 days ago
California grower ordered to destroy hemp containing illegal pesticides
By MJBiz
September 3,2024
California regulators ordered a Northern California hemp grower to destroy plants in 2223 greenhouses after an investigation revealed illegal pesticide use.
As a result of a May 24 investigation conducted by the Sutter County agricultural commissioner, the California Department of Pesticide Regulation (DPR) reached a settlement agreement with the grower, Bin Zheng, who consented to voluntarily destroy the hemp at all 22 greenhouses.
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Zheng was fined by Sutter County, just north of Sacramento, for using a banned pesticide on hemp and issued a Notice of Proposed Action to take certain steps to resolve the issue, according to a news release.
The products could have been processed and sold to consumers, the DPR warned in a news release.
âOur stateâs laws and regulations provide for safe and effective use of pest management tools,â DPR Director Julie Henderson said in a statement.
âPrompt, collaborative enforcement is critical to an effective pesticide regulatory program in California that protects people and the environment,â she added, lauding the DPRâs coordination with the Sutter County agricultural commissioner.
The enforcement action was first reported by Ganjapreneur.
The enforcement actions by state regulators targeting illegal pesticides in hemp products comes on the heels of a massive outbreak of pesticide-tainted THC distillate infused in dozens of regulated California cannabis products over the past few months.
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The growing crisis has led to infighting among brands, retailers, growers and the Department of the Cannabis Control, the stateâs chief regulator of the industry.
Meanwhile, the scandal has shaken confidence in the validity of lab testing, certificates of analysis and the greater supply chain in the worldâs largest regulated marijuana marketplace, prompting several operators to seek their own solutions.
doomed
7 days ago
Home / Finance
Marijuana banking reform still needed if rescheduling occurs, report says
By MJBiz
Sept 3, 2024
Rescheduling marijuana âis unlikely by itselfâ to solve the cannabis industryâs longstanding banking woes, according to a new report from Congressâ official policy-research arm.
An analysis in an Aug. 26 report from the Congressional Research Service also reiterates a previous contention that recategorizing marijuana from Schedule 1 to Schedule 3, âwithout other legal changes, would not bring the state-legal medical or recreational marijuana industry into compliance with federal controlled substances law.â
Thatâs consistent with previous observations that Congress still needs to pass legislation â such as the long-awaited SAFER Banking Act â that provides protections for financial institutions that offer services to cannabis businesses.
The Justice Departmentâs May 21 proposal to move marijuana to Schedule 3 of the Controlled Substances Act would solve some of the marijuana industryâs tax woes because Section 280E if the Internal Revenue Code prohibiting most deductions for business expenses would no longer apply.
Anti-money-laundering statutes still in play
However, the anti-money-laundering statutes that generally prohibit banks from handling proceeds from illicit-drug sales would still apply, the CRS report noted.
âDOJâs proposed rescheduling of marijuana, in and of itself, is not likely to alter substantially the risk profile associated with providing financial services to state-sanctioned marijuana business,â according to the report.
The report also noted that rescheduling by itself also wouldnât drastically alter state-regulated marijuana markets.
âRescheduling would have no effect on state recreational marijuana laws because recreational marijuana activities would remain unlawful under federal law,â according to the CRS report.
Despite state-regulated adult-use markets sprouting across the country, many cannabis businesses still complain of expensive or unavailable banking services.
Would banks listen to federal, state agencies?
The report did allow that guidance from âfederal or state agenciesâ might encourage banks to revisit their policies for dealing with cannabis.
That said, for any guaranteed progress, Congress must pass long-stalled banking protections.
âIt is possible that, if rescheduling were finalized, federal and state agencies might take additional actions that more significantly reduce the legal risks applicable to financial institutions that consider serving the marijuana industry,â the report pointed out.
âHowever, because substantial legal risks would remain, rescheduling alone might not have a substantial effect on state-sanctioned marijuana businessâ access to financial services.â
Partisan bickering as well as across-the-board dysfunction have thwarted the SAFER Banking Act in Congress this session.
doomed
7 days ago
September 3,2024
âIt is incredibly disappointing to see the DEA drag their feet on an issue which has been a clear White House priority,â U.S. Rep. Earl Blumenauer, an Oregon Democrat and the co-chair of the Congressional Cannabis Caucus, said in a Tuesday statement.
But other observers were more circumspect.
âThis is not a surprise,â said Shawn Hauser, a partner at Denver-based law firm Vicente and chair of the practiceâs cannabinoid and hemp division.
âThere was a very significant chanceâ of an administrative law judge hearing, she said.
Yet Blumenauerâs frustration echoed similar sentiments among major marijuana industry players on Monday and Tuesday.
âBreaking news: the DEA hates weed,â Ben Kovler, the CEO of Chicago-based multistate operator Green Thumb Industries, posted to social media on Monday night.
doomed
2 weeks ago
Biden Administration Puts A Knife Into The Cannabis Industry
Terry Hacienda
August 30,2024
Biden Administration Puts A Knife Into The Cannabis Industry
In surprise to no one considering the history of the administration leaders, Biden administration starts to wind down legal marijuana
Mom and pop businesses have been struggling the last 2 years. Thousands are in hte cannabis business, many having the hope from the Biden/Harris 2020 campaign about helping them.
Almost 4 years later, there has been no change, and while marijuana use soars, federal government are putting hundreds of businesses out even in fully legal states. The DEA action is paving the way for a robust illegal market.
Has Biden administration killed put a knife into the cannabis industry. Has former foe of cannabis managed to effectively put a stop to the legal cannabis industry? Biden has been in the federal government for 51 years. His tenure has given him unique insight in how government works, the timeline and how to move projects forward. Until recently, Biden and Harris were anti-marijuana, but recognizing the direction of voters, especially younger voters, they made a pivot. But was it a move to try to engage the youth movement without having to deliver a final product? The announcement by the Drug Enforcement Administration to delay until at least 2 December has thrown the industry into a tailspin with stocks dropping due to the announcement.
Biden is quick to comment âDonât tell me what you value. Show me your budget, and Iâll tell you what you value.â In 2020 the Biden/Harris ticket promised to help the industry by readdressing cannabis. But in reality, Biden waited over 3 years before he made the move. An experienced lawmaker understands the wheels of change moves slowly. Especially when the an agency like the DEA is resistant to the change. The timing of the start to reschedule cannabis allows the campaign to say âlook what we are doingâ, but actual change may or may not happen. In reality, Biden told the public he values cannabis, but he didnât put a true push on an easy change until months before the end of his term. Most likely knowing the clock would run out. It is disappointing as the Veterans Administration acknowledged it is an important option for veterans, especially with those with PTSD.
Anne Milligan, is the administrator of the DEA and was appointed by the current administration. The DEA is a federal agency overseen by the presidential administration and has made it clear it is not onboard with 85+% of the populationâs view on cannabis. It has also not been pleased Health and Human Services (HHS), The American Medical Association, Canada, the Food and Drug Administration and the American College of Physicians have all recommended rescheduling based on the science behind the plantâs medical benefits
Has the Biden administration pulled a bait and switch
The industry is full of mom and pop organizations who are trying to help build a new economic engine. Gen Z, understanding marijuana is healthy than alcohol, has embraced weed and beer sales have been down. Consumer use has soared among all age groups. Legal states have been reaping the economic benefits, but the DEA doesnât seemed to be phased by the change of the public acceptance.
While Harris drinks alcohol, Biden and the GOP presidential nominee do not. Harris and Biden have a history of being strong legal cannabis foes. On the campaign trail, Harris seems to support the industry, but has done nothing publicly or via government regulations to help the small businesses in the sector.
Both Harris and Biden are seasoned policy markers, so it would come as no surprise the timeline or the announcement. Harris has revitalized part of the Democrat campaign with other opportunities to engage younger voters. Has the current administration pulled another bait and switch with the industry?
Should the Harris team lose, it gives House Speaker Mike Johnson a chance to end legal marijuana also. He is dead set against any form of legalization. Some leaders in the industry have doubts about the Biden/Harris take on marijuana and have been expanding into hemp, which Senator Mitch McConnell championed. So like another president, Gerald Ford when NYC was in trouble, Biden sent a very clear message to the industry.
Next paper : will they address the bunk issue?
doomed
2 weeks ago
Buy shares before prices drop.
Cannabis retailer Tokyo Smoke to close 29 stores amid creditor protection proceedings
August 29, 2024 on Financial Post
ImageCannabis retailer Tokyo Smoke to close 29 stores amid creditor protection proceedings
The closures are part of a restructuring the brand is carrying out.
Cannabis retailer Tokyo Smoke says it will be shuttering 29 of its stores as it seeks creditor protection.
George Smitherman, President and CEO of Cannabis Council of Canada, talks with Financial Post's Larysa Harapyn about how taxes are killing the cannabis industry's buzz.
Read: bunk, [color=red][/color]not taxes, are killing the cannabis industryâs buzz.
The closures are part of a restructuring the brand is carrying out under the Companiesâ Creditors Arrangement Act.
Tokyo Smoke says the moves are meant to better align its operations with the current cannabis market and regulatory conditions, which the company says have changed âsignificantly.â
Read: folks donât buy government weed. Bad and too costly.
Some 167 locations across Ontario, Manitoba, Saskatchewan and Newfoundland and Labrador will remain open amid the restructuring.
OEG Retail Cannabis, a company run by the owner of the Edmonton Oilers hockey team, bought the Tokyo Smoke brand from pot giant Canopy Growth Corp. in September 2022.
Since that deal was signed, the cannabis market has struggled as the number of retailers has soared and the price of pot has dropped.
DOOMED
doomed
2 weeks ago
Government weed has no traction, not cutting it!
Denver report finds Marijuana legalization did not impact crimeAugust 29, 2024 on KDVR
ImageDenver report finds Marijuana legalization did not impact crime
Denver's Marijuana Revenue Drops to $48,1 Million as Industry Faces Challenges.
The new city of Denver licensing bulletin said marijuana revenue from taxes and licensing fees was $48.1 million in 2023, a decrease from the peak of $72.6 million in 2021.
The report found that $7.95 million supports services to help the homeless, $7.53 million is spent on affordable housing and $3.32 million supports youth education programs.
Marijuana-related crime only made up 0.2% of total crime in 2023, which is less than 1%, according to the report.
âWe created the plan that was implemented by many other cities across America, and one of the reasons why our plan has been copied by so many other cities is because we successfully prevented that prediction that crime would skyrocket,â said Denver Excise and Licenses spokesperson Eric Escudero.
The Denver Police Department told FOX31 that the marijuana task force has been retooled to address the fentanyl issue in Colorado.
âYou see the reduction in marijuana seizures over the last decade so I donât think this is a surprising number. This was where these numbers were trending towards,â DPD Lt. Ryan Harris said.
Industry spokesperson Mason Tvert, a noted leader of initiatives that legalized marijuana, told FOX31 that revenues have declined since the high-demand phase of the coronavirus pandemic.
âIt is a very difficult time for the legal cannabis industry,â he said. âWe cannot compete.â
Tvert said a solution to excessive supply is necessary and the industry must be supported as it continues to bolster efforts to address needs in the community.
âThey want to pay taxes and they want to be regulated and treated like other businesses, but they cannot survive if we continue to overtax and overregulate,â Tvert said.
The report also shows the number of medical marijuana dispensaries has dropped over the past eight years, and the unlawful use and display of marijuana was up 242% in 2023 compared to 2022 with 26 citations.
The City and County of Denverâs 2024 annual marijuana report is compiled by the Office of Marijuana Policy within the Department of Excise and Licenses.
doomed
2 weeks ago
Pot stocks fall as US DEA pushes Cannabis reclassification hearing to December
August 28, 2024 on Pharma.com
ImagePot stocks fall as US DEA pushes cannabis reclassification hearing to December
DEA Postpones Cannabis Reclassification Hearing, Impacting Market and Industry Outlook.
The Department of Justice, which oversees the DEA, said Attorney General Merrick Garland recommended cannabis be reclassified as a Schedule three drug instead of Schedule one earlier this year. Schedule one is reserved for drugs with a high potential for abuse and no accepted medical use.
Shares of cannabis companies sank on Tuesday after the U.S. Drug Enforcement Administration (DEA) postponed its cannabis reclassification hearing to Dec. 2, after the U.S. presidential election.
The Department of Justice, which oversees the DEA, said Attorney General Merrick Garland recommended cannabis be reclassified as a Schedule three drug instead of Schedule one earlier this year. Schedule one is reserved for drugs with a high potential for abuse and no accepted medical use.
Shares of Curaleaf and U.S.-listed shares of Canopy Growth fell over 10%, while Illinois-based Verano Holdings was down 12.9%.
The AdvisorShares Pure US Cannabis ETF dipped 9.1%, having fallen as much as 12% earlier in the session.
Canada-listed Green Thumb Industries, Tilray Brands, and Trulieve Cannabis were down 8.6%, 6% and 5% respectively.
"We believe both candidates are likely to let rescheduling advance, though we have more confidence in Kamala Harris than in Donald Trump," said analysts at TD Cowen in a note.
Analysts also noted that the outcome would heavily depend on Trump's choice for key positions such as Attorney General, the director of the DEA, and the Secretary of Health and Human Services, should he win.
The HHS' National Survey on Drug Use and Health for 2023 showed that marijuana is the most commonly used illicit drug, with 21.8% of people aged 12 or older, or 61.8 million people, reporting use.
Reclassifying marijuana would represent a first step toward narrowing the wide policy chasm between state and federal cannabis laws.
Medical cannabis is legal in 38 states and various U.S. territories, while recreational use is permitted in 24 states and Washington, D.C.; however, it remains federally illegal.
Until then, "the extended wait for rescheduling decisions could maintain the status quo, leaving businesses to navigate a patchwork of state regulations and ongoing federal ambiguity," said Pete Sahani chief executive officer of the cannabis hardware firm, the Bling Group.
doomed
2 weeks ago
New Yorkâs medical Cannabis program crumbling under financial pressure and patient exodus
August 28, 2024 on New York Upstate
ImageNew Yorkâs medical Cannabis program crumbling under financial pressure and patient exodus
On paper, the numbers donât look so good.
Just two years ago, there were 40 medical weed shops operating in New York. Now there are 31 â despite the 2021 MRTA legislation that set a goal of 80.
Of the 10 original companies licensed to operate medical marijuana dispensaries in New York, nine remain (MedMen has since gone belly up and left the state; Hudson Health Extracts, the 11th RO to enter the market, has yet to open). And revenues have steadily declined as the patient load has shrunk and the number of dispensaries has diminished.
Culprit : bunk weed.
On top of that, the medical patient load, according to the Office of Cannabis Management, is cratering. As of Aug. 1, the number of registered patients stood slightly above 18,000, down from its peak of about 150,000 in 2019 â three years after the medical dispensaries first went into operation.
NY Cannabis Insider previously reported significant drops in revenue for the ROs (registered operators), according to data collected by HEADSET, a leading global cannabis analytics firm.
So given this bleak landscape, NY Cannabis Insider reached out to industry representatives, two of whom agreed to interviews.
Jeremy Unruh, senior vice president and general counsel of PharmaCann â one of the four registered operators that have gone completely vertical, and as of June 29 were allowed to sell recreational cannabis products at one of their original store locations â did not mince words when asked about the outlook for coming years.
âIf the state doesnât do something to bolster this sector, it will degrade into nothing,â Unruh said, adding that âthis kind of business is not sustainableâ under current conditions.
When the medical dispensary program began in 2016, companies were allowed four store locations.
NYCANNA LLC (Acreage), which operates in New York as The Botanist, still manages three medical marijuana locations (Buffalo, Middletown and Farmingdale), but was forced to temporarily close its Queens dispensary because of shrinking sales and competition from the (better) illicit market.
NYCANNA does have a wholesale operation in East Syracuse, which helps the revenue flow to âsome extent,â said Executive VP and General Counsel Corey Sheahan.
But itâs still a difficult landscape, made even tougher by NYCANNAâs inability to go completely vertical and sell recreational cannabis due to the $20 million licensing fee required by OCM.
âItâs a lot of money,â Sheahan said. âWe donât have the financial capacity to pay the $5 million to open a co-located store. The fee is really a challenge to us.â
(The $5 million fee was the first tranche required by OCM â to be followed by another $10 million due by the end of 2024).
PharmaCann was able to cough up the $5 million initial payment and the added revenue from its one co-located store in Albany has âmitigatedâ the losses felt overall, Unruh noted.
The $20 million fee âwas conceived at a time when the leadership at OCM was different,â Unruh maintained. âIt was conjured up at a time when there was not a lot of positive sentiment in the legislature or the OCM as to the incumbent medical operators.â
âThe fee was dropped into the statuteâ and was supposed âto be used for social equity programming,â Unruh continued.
But âfrom what we can tell, those funds have not been used for social equity programming and the amount of the fee seemsâ somewhat absurd âbecause half of the ROs canât pay it. Itâs prohibitive.â
In its 2023 âSurvey Report,â OCM noted that as a result of the declining medical patient load related to legalized adult-use, âto preserve and support the program,â it was âimperative for regulators to understand the challenges of participating in the program so that better policy may be developed and implemented.â
OCM did not respond to requests for comment by publication.
Except for minimal changes made in eligibility requirements, the state has made no improvements to its medical cannabis program, experts say.
At the time, the $20 million licensing fee for medical operators to go fully vertical was seen as a way of giving CAURD holders and small independent retailers a leg up against the well-financed MSOs running the medical dispensaries.
âPeople would think we have deep pockets,â Unruh quipped, âbut the truth is thereâs not a lot of capital in the cannabis space right now, not in any space right now, especially in cannabis where things are far more expensive than they look at first blush.â
The bottom line, he said, is that thereâs ânot a lot left over after we pay employees, transport products to dispensaries with high overhead and not many patients walking in the door.â
doomed
2 weeks ago
More great news
Home / Legal
December marijuana rescheduling hearing prompts anger, stock sell-off
Chris Roberts, Reporter
August 28, 2024
For the second year running, the $32.1 billion U.S. cannabis industry will head into the Labor Day holiday weekend on the heels of a major milestone in the Biden administrationâs effort to reschedule marijuana.
Instead of celebration, however, anger and a minor sell-off of cannabis stocks followed Mondayâs announcement that an administrative law judge wonât hear the Justice Departmentâs proposal to recategorize marijuana to Schedule 3 of the Controlled Substances Act until December.
A year ago, the industry headed into the Labor Day holiday weekend celebrating âthe biggest thing everâ to happen with cannabis reform when federal health regulators recommended that marijuana be classified as medicine.
But this year, U.S. Drug Enforcement Administration chief Anne Milgramâs notice in the Federal Register of a planned Dec. 2 hearing means itâs all but certain marijuana wonât be rescheduled until 2025.
Marijuana tax relief on hold
As a result, plant-touching cannabis companies will have to wait a few more months for federal tax relief.
That potentially upends several major multistate operatorsâ plans to claim business expenses the IRS says are still due under Section 280E of the Internal Revenue Code.
âIt is incredibly disappointing to see the DEA drag their feet on an issue which has been a clear White House priority,â U.S. Rep. Earl Blumenauer, an Oregon Democrat and the co-chair of the Congressional Cannabis Caucus, said in a Tuesday statement.
But other observers were more circumspect.
âThis is not a surprise,â said Shawn Hauser, a partner at Denver-based law firm Vicente and chair of the practiceâs cannabinoid and hemp division.
âThere was a very significant chanceâ of an administrative law judge hearing, she said.
Yet Blumenauerâs frustration echoed similar sentiments among major marijuana industry players on Monday and Tuesday.
âBreaking news: the DEA hates weed,â Ben Kovler, the CEO of Chicago-based multistate operator Green Thumb Industries, posted to social media on Monday night.
Cannabis stocks take a hit
Cannabis investors reacted accordingly.
Shares in Green Thumb dipped more than 8.5% on the news of the Dec. 2 hearing, from $10.69 at the close of markets Monday to about $9.76 on Tuesday afternoon.
Similar drops hit fellow marijuana MSOs:
Curaleaf Holdings, down 12% to $2.80.
Trulieve Cannabis Corp., down 5% to $9.09.
Verano Holdings Corp., down 13.5% to $3.33.
Meanwhile, outspoken cannabis advocates and some business leaders took to social media to vent frustrations â at President Joe Biden, at Milgram and at each other â as hopes of preelection rescheduling vanished.
Speculation swirled that Republican presidential nominee Donald Trump could unwind the rescheduling process as a rebuke to Biden.
Those reports competed with rumors that, with the Democratsâ hopes of retaining the White House improving with Vice President Kamala Harris as the nominee, the party is less in need of a drastic act to win back disaffected progressives and young voters.
But, for now, such theories have no factual basis.
âYou can Rorschach this any way you want,â said one D.C. lobbyist, who requested anonymity to speak freely, âbut there isnât a sign that anybody I know has seen that there was some political maneuvering going on.â
âWe know what next step isâ
Instead, lawyers, lobbyists and some cannabis executives told MJBizDaily on Tuesday that the scheduled hearing shouldnât have come as a shock.
If anything, it means the rescheduling process Biden launched with an October 2022 executive order is still on track.
âWe hoped it would be speedier, we were hoping for before the (November presidential election), but at least we have a date now, and we know what the next step is,â said Bryan Barash, vice president of external affairs at Oregon-based cannabis sales software platform Dutchie.
âBut you know, I think throughout most of this process, weâve been pleasantly surprised at the speed â and itâs beaten expectations.â
Publication of a final rule follows the hearing by an administrative law judge, though the Administrative Procedure Act does not give a specific time frame.
Barring a lengthy delay in court â some observers noted that legal challenges are likely â the Dec. 2 hearing means a final rule is still possible before Biden leaves office on Inauguration Day, Jan. 25.
That is what Blumenauer, the longtime congressional champion, is banking on.
âWhile I would have preferred to see rescheduling finalized before the election, we still have every reason to believe that it will happen before President Biden leaves office,â Blumenauer said.
âI also have every hope that because of our work together, soon-to-be President (Kamala) Harris will take further steps to rationalize cannabis policy and end the failed war on drugs.â
We can then address the bunk caper!
doomed
2 weeks ago
Retail Cannabis sales continue to cool off in Canada.
August 26, 2024 on Strat
Canadian Retail Cannabis Sales Decline Amidst Market Saturation.
Retail cannabis sales continue to cool off in Canada after nearly five years of growth, with sales in April hitting a year-over-year low, with $518 million in sales compared to $525 million in sales in April 2023.
The newest figures from Statistics Canada show seven of the past ten months with month-over-month declines from a peak of $564 million in August 2023. While sales surged significantly in the first several years of legalization, in the past year, that momentum has begun to wane due to poor quality products.
Statistics Canada does periodically update their previous monthly figures as new data comes in. While the data quality for most months is considered excellent, the most recent four months are considered very good or good.
The newest wholesale cannabis sales figures from Stats Canada show a similar trend, with wholesale sales dropping off from a peak of $597 million in February 2024, followed by now four months of declines.
As of August 13, there were 3,722 licensed cannabis retail stores in Canada.
British Columbia: 523 public and private stores listed as âactiveâ
Alberta: 709
Saskatchewan: 190
Manitoba: 209
Ontario: 1,822
Quebec: 99
New Brunswick: 27 public stores, plus nine private stores and six farmgate stores, for a total of 42
Nova Scotia: 50
PEI: 5, up from 4 in January (+1)
Newfoundland and Labrador: 59
Northwest Territories: 6 brick-and-mortar locations, plus 1 private online store
Nunavut: 2, up from 1 in March (+1)
Yukon: 6
doomed
3 weeks ago
Bunk weed just got a 70% augmentation.
That will help get rid of bunk!
Watch nsrr5 splurge next wed.
MEDICAL CANNABIS NEWS
Lawmakers make it official: Annual fees for Medical pot businesses will jump 70%
Posted August 23, 2024 on South Dakota Searchlight
ImageLawmakers make it official: Annual fees for Medical pot businesses will jump 70%
Health department says price hike is meant in part to address future needs.
Lawmakers voted 4-1 on Tuesday to finalize a nearly 70% hike to the price of a medical marijuana business license.
Sen. Red Dawn Foster, D-Pine Ridge, was the lone member on the Legislatureâs Rules Review Committee to oppose the increase. The price change was made possible by a bill passed this winter at the urging of the state Department of Health, which administers the stateâs medical marijuana program.
The current fee is capped at $5,310, an inflation-adjusted figure to the original $5,000 annual fee set by lawmakers in 2021, the year after voters opted to endorse a medical pot program for the state.
The change puts the annual price at $9,000.
Emily Kerr, the programâs administrator, told the committee that the price change is meant to cover the programâs administrative costs. The health department has three new employees who oversee the program, doing things like processing marijuana card applications, inspecting dispensaries and grow operations, and investigating complaints.
âThe program has grown and been utilized at a rate that was much faster than initially projected,â Kerr said.
The state is averaging about 13,000 cardholders at any given time, Kerr said. She also told lawmakers that there are 68 dispensaries in the state, 38 cultivation sites, 18 manufacturing sites and two independent testing facilities.
âThose require thorough review of initial annual renewal applications, providing technical guidance and customer service, as well as our inspection program to investigate complaints, to make sure that weâre getting in there at least annually, if not more,â Kerr said.
Sen. Jim Mehlhaff, R-Pierre, moved to finalize the rule change with the higher fee.
âThe industry is supportive of the fee increase,â Mehlhaff said. âNot necessarily loving it, but understanding it.â
The change is expected to return $346,860 in increased revenue in the first, partial year, and $490,770 a year in increased revenue after that.
âNew moneyâ
Kerr also spoke on Monday about the fee increase during a meeting of the stateâs Medical Marijuana Oversight Committee, on that day offering more details on the work of the programâs employees as she explained the increase.
âWe feel this is necessary to sustain the operations of the program, because we are funded completely by fees through cardholders and establishments,â Kerr said.
Cardholder fees will not be increased through the rule change.
Marijuana industry lobbyist Jeremiah Murphy told the committee that the industry understands the setup and appreciates the help the three new employees offer, âbut my client paid for those.â
A 70% jump in fees, he said, is higher than South Dakotans might expect in other areas.
âThatâs really quite a jump in an anti-tax, anti-overregulation state like South Dakota, but that was our commitment, because they wrote that law to say that it will be fully self-funding,â Murphy said.
Murphy also said the program is a significant source of sales tax revenue in a market that wasnât paying them before. Murphy cited statistics from the U.S. Department of Health and Human Services that put the number of marijuana users in South Dakota at 93,000 or more. Some of those users are served by tribal programs â Murphy guessed around 19,000 â with another 13,000 in the state program. Those buying on the illicit market arenât paying sales tax, he said.
The oversight committee also learned that marijuana card applications have leveled off and even declined after an initial spike â something industry leaders attribute to the growth in the market for hemp-derived marijuana alternatives.
Patient advocate Brad Jurgenson asked on Monday why the program would increase fees if it hadnât lost money in the prior year. Kerr replied that the price needs to go up to keep pace with ongoing costs and to make sure health department employees can process applications and manage inspections efficiently.
During Tuesdayâs rules hearing, Sen. Foster sounded a similar note, asking Kerr if the permit fee increase was based on calculations or âarbitrary.â
Kerr told Foster that the department calculated its needs, but also said the fee increase was designed to be high enough to help the department avoid annual visits to the rules committee.
âWhile this is a big jump, we donât necessarily want to go before the Legislature to talk about fluctuations,â Kerr said.
doomed
3 weeks ago
Legacy growers have traction while Tilrayâs stuck in a nsrr5 muddy Florida swamp.
RECREATIONAL MARIJUANA NEWS MARIJUANA POLITICS MARIJUANA BUSINESS NEWS CANNABIS JOBS
Cheech and Chongâs Cannabis Company Selects DogHouse Farms as Exclusive Oregon Partner
Posted August 20, 2024 on BDT Online
ImageCheech and Chongâs Cannabis Company Selects DogHouse Farms as Exclusive Oregon Partner
Cheech & Chong's Cannabis Brand Debuts in Oregon with DogHouse Farms Partnership.
It's not a flashback. Cheech & ChongTM have landed at a dispensary near you, and they're bringing some of Oregon's best cannabis. Cheech Marin and Tommy Chong, comedic icons and cannabis culture OGs for 50-plus years have selected local cultivator DogHouse Farms as the exclusive cultivator for the launch of Cheech and Chong's Cannabis Company in Oregon.
Cheech & Chong Products Now Available in Oregon
When it comes to cannabis culture, no one has deeper roots than Cheech & Chong. Their brand brings the joy and fun back into cannabis, a culture they helped shape. By partnering with the best local heavy hitters in the industry, they stay true to their roots and support the communities they have always been part of.
"Selecting a partner for Cheech and Chong's Cannabis is about more than just quality; it's about aligning with those who share our values and passion for the plant," said Jonathan Black, CEO of Cheech and Chong's Cannabis Company. "DogHouse Farms stood out for their exceptional dedication to quality and their deep-rooted commitment to the cannabis community."
DogHouse Farms was founded by Jon Hudnall, an award-winning cannabis cultivator with operations in Oregon, Michigan, Washington, and Florida. Hudnall began his career learning from the Northwest's best growers, eventually gaining an international following for the exceptional quality, flavor, and appearance of his cannabis flower. Hudnall stated, "Doghouse Farms is thrilled to be working with Cheech & Chong. I grew up watching all their films and so I'm having a âpinch me' moment. It's mind-boggling to consider the enormous impact they've had on the cannabis community and culture for more than 50 years. We're honored to be recognized for our skills by our OG heroes and excited to bring Oregon the highest-quality cannabis with icons who are so passionate about supporting and investing in our community."
For more information about Cheech and Chong's Cannabis Company product availability through Doghouse Farms in Oregon, visit doghouse420.com.
About Cheech and Chong's Cannabis Company:
Cheech and Chong's Cannabis Company is a leading cannabis lifestyle brand built on over 50 years of advocacy, entertainment, and education. Its mission is to provide high-quality, safe, and reliable cannabis products to consumers while promoting the benefits and positive impact of the plant. At Cheech and Chong's Cannabis Company, cannabis is more than just a plant - it is a lifestyle that brings people together and promotes well-being. The company's history and legacy are rooted in humor and activism, and it continues to honor those values today.
About Jon Hudnall and DogHouse Farms:
Doghouse Farms™ is the flavor obsessed™ cultivator of premium cannabis with operations in Detroit, Michigan, Salem, Oregon, and Vancouver, Washington. Our premium products are prized by connoisseurs and retailers within the world's most competitive markets and regarded as one of the West Coast's most sought-after names in cannabis. Founded by Jon Hudnall in 2015, DogHouse Farms™ exclusive, award-winning genetics are cultivated in pursuit of a rich, flavor-packed experience. The Doghouse Farms™ brands are expanding into the Florida market, slated for launch in 2024.)
doomed
3 weeks ago
Canadaâs wholesale Cannabis market shifting from buyersâ to sellersâ
August 19, 2024 on Strat Cann
Doomed
Cannabis Market in Canada Shifts from Surplus bunk to Shortage as Demand Surges for High-Quality Flower.
While the beginning of cannabis legalization in Canada was characterized by a surplus of product, many in the industry now say that trend has been shifting to a shortage in recent months.
This is good news for cannabis growers, as it means having more leverage on the market, putting brokers and third-party processors in a less-than-ideal position for potentially the first time.
Jacquie Trombley, director of sales, marketing, and product development at Agmedica Bioscience Inc. in Ontario, says she has seen a significant shift in 2024 from a buyerâs market to a sellerâs market.
Agmedica sells in Canadaâs medical and non-medical markets, both under their own brands and in the B2B market, and exports to international markets.
âHistorically, we would usually have at least some inventory in our vaults, but right now the majority of the requests we receive for product go unfilled,â explains Trombley. âWe get asked for product pretty much every day, and we cannot meet the demand.â
This is in part because of the bunk cannabis recalls she says, but itâs also the result of the number of cannabis producers closing up shop. Some struggling producers who might have been desperate to move products at a discounted rate are now out of the market, and, over time, this benefits those who have been able to stick it out.
This is reflected by the increase in price for top-quality flower, which generally arenât making their way to the international markets.
Another big turn, says Trombley, is payment terms for growers who are selling to processors, something that is arguably more impactful than the price increase, Where various consignment deals and terms have been common for growers in the first few years of legalization, meaning full payment might not have been provided for some time after product had sold in a provincial market.
âWe are no longer offering terms to B2B domestic buyers because you just might not get your money,â she continues. âThereâs been a significant shift to 100% cash up front and weâre getting it! Before the product leaves our facility.â
This is a big deal for small growers who are struggling to keep the lights on.
âRight now, I think some of those smaller companies absolutely can demand cash up front right now, or at least improved payment terms.â
Steve Clark, founder of the Canadian Cannabis Exchange, says the issue is something many in the industry have been discussing this year.
âWe are seeing domestic supply shrinking in a number of ways,â says Clark. âThe closures of growing facilities and reduction and square footage of Canopy in Canada. The companies who were producing for their own internal supply in these facilities have flipped from net sellers to net buyers, (further taking supply off the market), and the pull from export into intensive markets is reducing overall flower availability.â
??Michael Gorenstein, president and CEO of the Cronos Group, another cannabis company that sells domestically and in international markets, made similar comments on a recent quarterly report earnings call.
âWeâve really seen a huge shift in the supply dynamics where weâve had significant oversupply in the past,â said Gorenstien.
Although he says he still believes there is a large supply of low-quality cannabis flower in the market, this isnât necessarily a product with much market demand. Quality cannabis, he says, is a different story.
âAs we said in the past, thereâs a difference between available cannabis inventory and available inventory thatâs sellable as quality flower,â continued Gorenstien. âWhile thereâs plenty of the former, there is now a shortage of high quality desirable flower that is sellable to consumers in Canada.â Big bulk buyers and daily users purchase grey market.
The companyâs most recent quarterly report also noted: âWe are anticipating shortages in raw materials and may be unable to obtain adequate supplies of raw materials in a timely manner and at commercially reasonable prices.â
When we have supply, it is usually bunk.
doomed
3 weeks ago
Trump Running Mate JD Vance's Fentanyl-Marijuana Remarks and Criticism of Kamala Harris Stir Debate
August 19, 2024 on Benzinga
ImageTrump Running Mate JD Vance's Fentanyl-Marijuana Remarks and Criticism of Kamala Harris Stir Debate
JD Vance Says There's Fentanyl In Marijuana 'Teenagers Are Using,' Trump Running Mate Raises Eyebrows.
Donald Trumpâs running mate JD Vance spoke at the Milwaukee Police Associationâs headquarters in Wisconsin Friday where he claimed that fentanyl-laced marijuana is turning up pretty much all over the place for which he engaged in a special barrage of criticism agains Democratic presidential candidate Kamala Harris.
Vance started with Harris's record on crime and law-enforcement. "We need a president, Donald J. Trump, who makes their job easier and not harder. Weâve got to cut out with the anti-law enforcement craziness. Weâve got to cut out with some of the policies that have come from the Harris administration that make it harder for the police to do their job.â
He then moved on to one of Harris's tasks as VP in the Biden administration: the US-Mexico border.
Vance laid the opioid crisis, Mexican cartels and what he referred to as the presence of fentanyl in marijuana directly at Harris's feet.
Read Also: Trumpâs Running Mate JD Vance On Cannabis Legalization And Banking Reform: Not Quite Yes!
âDrug Cartels Operating In Our Communitiesâ
âSo, the border policies that we have at the southern border, they make our communities less safe even as far north as Wisconsin. It means Mexican drug cartels operating in our communities. It means people dying of fentanyl,â Vance told the police union members, reported Fox28. âI talked to another police officer who talked about, we have fentanyl not just in heroin and opioids and even prescription pills, or I guess non-prescription pills that are sold on the street. Weâve got fentanyl in our marijuana bags that our teenagers are using.â
Fact Check
The Partnership to End Addiction says there is no solid evidence that marijuana is being laced with fentanyl, a synthetic opioid primarily manufactured in Mexico and smuggled into the U.S. The Drug Enforcement Administration (DEA) has confirmed that drug dealers have been mixing fentanyl with other drugs, though the DEA has not issued any alerts or warnings about fentanyl being found in marijuana. With some 55 million people in the U.S. using cannabis, we would likely see overdose rates far higher than they are today if fentanyl was in the marijuana supply. Synthetic opioids like fentanyl contributed to nearly 70% of the estimated 107,543 overdose deaths that occurred in 2023, according to the Centers for Disease Control (CDC).
Vance On Cannabis
Meanwhile, Vance's stance on marijuana seems to align with the ongoing situation in the U.S. and Trumpâs, which is that states vote for and establish their own marijuana laws. An Ohio congressman since 2022, Vance was against legalizing adult-use cannabis in his home state, which it did anyway in November 2023. A month later, he told a local TV station that the voters' decision should be respected and "allow it to be an Ohio issue,â Vance said.
They need to address the bunk issues first.
doomed
3 weeks ago
Tilray cannot give away itâs bunk weed⌠not a problem, they will sell alcool.
But, but, but alcool is a cancer agentâŚ
Not to worry⌠Tilray/Maga customers are ignorant.
Cannabis company to buy Texas' Revolver Brewing from MillerCoors
Doomed
August 19, 2024
ImageCannabis company to buy Texas' Revolver Brewing from MillerCoors
Tilray Brands is closing in on a few other breweries, too.
Visit any Texas supermarket or beverage emporium and one is bound to stumble upon cans of beer from Revolver Brewing. The brand founded in Granbury, about 40 miles southwest of Fort Worth, is one of the state's most successful names in beer, and it now is likely to have a new owner.
Tilray Brands announced Aug. 13 that it has come to a definitive agreement to purchase Revolver and three other well-known beer brands from Molson Coors Beverage Company. The other brands are Atwater Brewery out of Detroit; Hop Valley Brewing Company in Eugene, Ore.; and Terrapin Beer Co. of Athens, Ga. Terms of the deal are unknown, and the transaction is likely to close by the end of August.
Since its founding in 2013, Tilray has specialized in cultivating and distributing BUNK medical cannabis products, but in recent years, it has shown interest in craft beer. After the transaction closes, Tilray will own 20 U.S. breweries, making them the fourth-largest craft brewing company in the country.
"Tilray Brands is proud to be driving the most compelling and unique growth story in the craft beer industry. With the acquisition of these four craft breweries from Molson Coors, we are marking another strategic milestone in Tilray Brandsâ growth plan," Tilray Chairman and CEO Irwin D. Simon said in a press release. "Our team's expertise in operational excellence will enable us to unlock the full potential of these brands and businesses."
Revolver was founded in 2012 by University of Texas alumnus Rhett Keisler and longtime brewer Grant Wood, with the aim of creating balanced beers with "drinkability," according to an interview CraftBeerAustin after the brewery's opening. From the onset, Revolver's golden ale Blood and Honey, made with blood orange peel and Texas honey, received high praise across the craft beer community.
In 2016, MillerCoors, through its Tenth and Blake Beer Company division of "craft" brews, purchased Revolver from Keisler and Wood. Four years later the co-founders stepped down.
For MillerCoors, the sale of Revolver comes at a time when the massive beverage conglomerate is moving on from "craft" and turning its focus back to national macro-brewed brands.
It's unlikely Revolver, which distributes product to about 12,000 locations across Louisiana, Oklahoma and Texas, will go anywhere with this potential purchase; in fact, Simon of Tilray said his company is excited about doing even more business in the Lone Star State.
"As we move forward, we will leverage our extensive expertise in product innovation and distribution to unlock the full potential of these brands, strengthen their sales and operations, and expand their reach into key markets across the U.S.," Simon said.
doomed
3 weeks ago
California hemp fight signals long-term struggle with marijuana
Chris Roberts, Reporter
August 19, 2024
The scene at Total Wine & More in Corte Madera, California, reflects a growing trend nationwide.
Gummies infused with 100 milligrams of THC are sold in one corner of the store, while cans of Cantrip root beer infused with 10 milligrams of hemp-derived THC are displayed in another.
Both are being sold at a mainstream retailer â outside of the stateâs strict regulations for marijuana products â and both are ostensibly legal under the 2018 federal Farm Bill.
Whatâs less typical is who lives nearby: California Gov. Gavin Newsom and his four school-age children, the oldest of whom is an incoming high school freshman.
The governorâs physical proximity to one example of the poorly regulated market for intoxicating hemp-derived products â and his concern that youth under 21 can access them â help explain Newsomâs involvement in a last-ditch effort to regulate hemp products under the state Department of Cannabis Control (DCC), several sources in the state capital told MJBizDaily.
âHemp should be regulated like cannabisâ
Newsom spokesperson Izzy Gardon did not address that question directly in a statement to MJBizDaily.
But Gardon did note that Newsom âis actively exploring further action to close loopholes, increase enforcement and prevent children from accessing unsafe hemp and cannabis products.â
âThey should be subject to reasonable health and safety regulations,â he continued, âjust like similar cannabis products.â
California lawmakersâ failure to rein in hemp products during an Aug. 15 hearing â and hemp advocatesâ subsequent celebration â are the latest indicators that the current status quo is untenable for government and public-health regulators as well as the marijuana and hemp industries.
At some point, most observers agree, hemp and marijuana will be subject to the same regulations.
But when that that will occur and what those regulations will be is another question.
Setback for hemp regulation
Last Thursday, a state Senate committee declined to call Assembly Bill 2223 for a hearing.
That meant the billâs proposal to regulate hemp products under the DCC â and subject them to the same product-safety regulations and taxes â is shelved for now.
It also means hemp advocates are celebrating, as the setback maintains the status quo for intoxicating hemp-based cannabinoids in California, as evidenced at the Total Wine in Marin County.
The now-defunct bill addressed two related but distinct quandaries, said Ross Gordon, policy director with the Origins Council, a Mendocino County-based advocacy organization for small cannabis farmers.
âHemp products sold at gas stations and liquor storesâ such as Total Wine âis one issue,â Gordon told MJBizDaily.
âWhether and how to integrate hemp into the cannabis supply chain is a different issue.â
Observers believe both issues will haunt state and federal lawmakers and regulators until theyâre answered.
Inevitable hemp integration?
The Origins Council staunchly opposed an earlier version of AB 2223, in part because it would have allowed hemp-derived cannabinoids into the stateâs DCC framework for marijuana.
That would mean âfirst-timeâ competition from out-of-state hemp cultivators for marijuana farmers, whose struggles under heavy taxes and onerous regulations are well-documented and having a notable impact: Sales have declined 16% across the board since 2021, according to one analysis.
Notably, that same proposal was supported in part by the California Cannabis Industry Association (CCIA), a Sacramento-based lobby for large cannabis companies.
Some CCIA members would like to follow the leads of marijuana multistate operators such as New York-based Curaleaf Holdings, which has launched hemp-derived product lines to complement its regulated marijuana products, the agency said earlier this month.
In an Aug. 9 letter in support of the bill, the CCIA noted that AB 2223 âfulfills a longstanding commitment to allow for the integration of hemp cannabinoids into the regulated cannabis supply chain.â
âThis will provide an opportunity to substantially enhance consumer access to safe and high-quality products while reducing costs for legal cannabis businesses,â CCIA board President Caren Woodson wrote, in part.
That letter claims that âintegration is already a well-established trend across the countryâ and identifies 18 states where marijuana and hemp products are sold under the same regulatory framework.
Those states include Minnesota, where low-THC beverages derived from hemp are expressly allowed, as well as New York, where critics say hemp-derived products are widely sold outside of age-gated supply chains â a sign of how much work needs to be done to reconcile hemp and marijuana laws.
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Hemp at the gas station
With more than four months left, 2024 might yet deliver stricter rules for hemp companies.
Newsom could attach elements of AB 2223 to budget-trailer legislation due at the end of August.
But until a regulatory framework appears that reduces the burden on every seller of THC, regardless of its origin, the fight between marijuana and hemp is likely to continue.
One obvious consequence is preservation of the status quo on display at Total Wine, along with dissatisfaction among power brokers such as Newsom.
The Origins Councilâs Gordon noted: âIf the focus (of AB 2223) had been narrowed on what to do about hemp at the gas station, it would have had most people agreeing.â
doomed
4 weeks ago
Large cannabis corporation are great at growing bunk!
âUnprecedentedâ: Second massive Missouri Cannabis recall leaves some companies scrambling
August 16, 2024 on My Courier Tribune
ImageSecond massive Missouri cannabis recall leaves some companies scrambling
Missouri Cannabis Recalls Double in Scope, Affecting Over 135,000 Products Statewide.
State regulators issued fifty two cannabis recall notices last week involving 135,000 marijuana products â more than double Missouriâs first massive cannabis product recall exactly one year ago.
âIâve never seen recalls of this magnitude in any other state,â said Nick Rinella, CEO of Hippos Cannabis. âThis is kind of unprecedented.â
Since the announcement, Rinella and facility owners around the state have scrambled to quarantine thousands of vapes, edibles and pre-rolled joints in their secure vaults. Now theyâll wait until state regulators tell them what to do with those products.
Problem is, some of them are still holding products from last yearâs recall, which centered around Robertsville-based manufacturer Delta Extraction, because that recall is still being challenged. However, others opted to work with the state to destroy those products.
Thatâs where âthe stress comes from,â said Mark Hendren, president of Flora Farms cannabis company.
If a dispensary or facility has a small vault, he said, âand you have product that you have to quarantine, it makes it difficult space wise for you to bring in other inventory to keep the business moving.â
The first recall notice came on the night of Aug. 6, stating the Division of Cannabis Regulation was working âin partnershipâ with Marceline-based cultivation facility NGWMO LLC to âalert to patients and consumers about a mandatory product recall.â
The grow facility is run by Natureâs Grace and Wellness, which founded a family-owned farm in Vermont, Ill., in 2014 after the state passed medical marijuana. Tim OâHern, COO and general counsel of Natureâs Grace, is listed as the designated contact for the facility.
This recall involves 2,650 products and has to do with the products being tested too soon in the process.
âThe recalled marijuana products were not compliantly tested prior to being sold to patients and consumers,â the notice states. âThe recalled marijuana product was tested at the unprocessed bud/flower stage rather than being tested at the final marijuana product stageâŚâ
The second notice came two days later for the Springfield-based manufacturing facility C&C Manufacturing LLC. Notably, it didnât include the âin partnershipâ language.
It lists about 133,000 products, which regulators said were not properly tracked in the stateâs âseed to saleâ tracing system called Metrc.
âTherefore,â the notice states, âDCR cannot verify compliance with health and safety requirements.â
However, the division emphasized that no adverse reactions involving recalled products have been reported.
Matt Cummins, CEO of GOAT Extracts, is listed as the designated contact for the facility and a number of GOAT products are on the list.
The Independent reached out to both companies for comment and did not receive a response.
Adrienne Scales-Williams, owner of St. Louis dispensary Luxury Leaf, agreed that storage space for the recalled products is challenging. And while thereâs uncertainty on how long the products will need to be contained, she said she trusts the state is doing their due diligence to investigate the issue.
âWeâve been through this before,â Scales-Williams said. âWhen itâs not your first ride in the rodeo, you just handle it.â
The impact
The recall for the Springfield manufacturer is so widespread because the company specializes in making distillate, or THC concentrate that produces a high in edibles and vape pens.
Other manufacturers statewide bought the distillate and used it to make numerous brands of vapes, edibles or pre-rolled joints, including Rove, Zen and Packarillos.
The recall time frame is also quite wide. It goes back to last year when companies were trying to ramp up for recreational marijuana sales, Rinella said.
Rinella bought some of C&Câs distillate in October when Hipposâ own supply was low at its grow and manufacturing facilities, he said.
But he emphasized that this recall is not because of lack of testing. Once Rinella and other manufacturers got the distillate and made products with it, those were âproperly testedâ before they went on the shelves, he said.
âWe can feel confident that those products were safe,â he said. âThey passed all the tests, and we have some of the most stringent tests in the country.â
The division lists the recalled products in two Excel sheets. One is âproduct recall list,â which includes the identifiers that the manufacturers use to track products. The division also posted a âconsumer recall listâ that includes numbers that customers are more likely to see on their products.
The division advises patients and consumers to stop using the products and return them to the dispensary. âReturned products will not count toward a patientâs purchase limit,â it states.
Also any adverse reactions should be reported to the division of cannabis by email or through an online complaint form.
Delta Extraction
Just like C&C Manufacturing, the stateâs first recall on Aug. 2, 2023 centered around a distillate that was sold to numerous other manufacturers.
Also similarly, Delta Extractionâs products were recalled due to the stateâs inability to track the ingredients to make the distillate on Metrc, which starts tracking marijuana plants from the moment theyâre planted in Missouri.
In that case, Delta was selling a distillate that was mostly made up of hemp-derived THC, using hemp that wasnât grown in Missouri and couldnât be tracked.
Delta mixed it with a small amount of THC from marijuana grown in Missouri. Itâs much less expensive to make distillate from out-state hemp than Missouri-grown marijuana, but Deltaâs consumers still paid marijuana prices.
Hemp isnât a controlled substance and can legally cross state lines, unlike marijuana.
The company appealed both the recall and the revocation of their cannabis business license before the Administrative Hearing Commission, challenging whether or not the state has the authority to regulate hemp products.
In March, Commissioner Carol Illes heard three days of testimony and evidence and has yet to release her decision.
Days before the two recent recalls, Gov. Mike Parson signed an executive order banning intoxicating hemp products and threatening penalties to any establishment with a Missouri liquor license or that sells food products for selling them.
According to the order, licensed cannabis dispensaries canât sell these products either because the hemp used to make them has to be grown in Missouri and tracked through Metrc. Nearly all of these products currently on the market â and the ones that Delta used â are made from hemp grown in other states.
doomed
4 weeks ago
It is not working⌠they cannot give it away âŚ😂
Rescheduling alone wouldnât solve the marijuana industryâs banking problem
By Russell Rosendal, Guest Columnist
August 16, 2024
The federal governmentâs proposed rescheduling of marijuana is a positive and necessary step forward, to be sure.
And while rescheduling would alleviate certain burdens associated with operating in the cannabis industry, it would do little to address banking difficulties that have long stifled and frustrated this sector.
Despite significant strides in marijuana legalization and regulatory clarity, most financial institutions will continue to be wary of the cannabis industry.
Short of full federal legalization, legislative reform that specifically addresses cannabis banking is the only way to ensure that state-regulated marijuana businesses can access the same financial services as other legitimate businesses.
History of cannabis banking
When adult-use marijuana passed in my home state of Washington in 2012 with 56% of the vote, it marked the start of a new era.
Initiative 502 legalized limited possession and private use of marijuana as well as adult-use sales.
Those of us working in the financial sector with an interest in the benefits of cannabis were excited.
We also were motivated by the prospect of servicing Washington state clients in this burgeoning industry with considerable growth potential.
The votersâ support was a clear mandate, but beyond that, officials needed to address a host of regulatory and safety concerns before an actual market could exist.
Starting from scratch, financial institutions formed dedicated teams to explore opportunities within the new industry.
We worked closely with officials to establish a banking framework that complied with Washington stateâs commercial cannabis regulatory structure.
This included efforts to address safety concerns associated with handling large amounts of cash and cash transactions, which were â and continue to be â a direct result of federal illegality.
While the Cole Memo outlined the federal governmentâs intentions to refrain from intervening in state-regulated marijuana markets that took measures to effectively prevent criminal involvement, underage sales and illegal diversion to other states, its protections were far from comprehensive.
Sadly, the threat of federal raids led by the Drug Enforcement Administration in Washington state and other regulated markets such as California kept most financial institutions from getting anywhere near the industry.
Reschedulingâs impact on cannabis banking
The U.S. Department of Justiceâs proposal in May to move marijuana from Schedule 1 to Schedule 3 under the Controlled Substances Act is monumental, no doubt.
For starters, rescheduling would address the burden of Section 280E of the Internal Revenue Code, which originated to curb organized crime.
Under 280E, businesses that âtrafficâ Schedule 1 or 2 substances canât deduct ordinary business expenses.
This has saddled state-regulated marijuana businesses with higher taxes than businesses in other industries.
Moving marijuana to Schedule 3 would finally enable cannabis businesses to deduct their expenses like any other legal enterprise.
This would be a huge financial boon and significantly improve the prospects of profitability in this sector.
From a banking standpoint, however, rescheduling offers little relief.
Gaps in rescheduling
While Schedule 3 substances are permitted for medical use under federal law, they are heavily regulated and typically must be prescribed by licensed medical professionals and dispensed to patients through authorized pharmacies.
Moving marijuana to Schedule 3 wouldnât change the federal governmentâs stance on the blanket illegality of recreational cannabis sales and use.
It also wouldnât align state-legal medical marijuana markets â which typically rely on a dispensary infrastructure â with the federal governmentâs regulations for Schedule 3 substances.
Because state-licensed marijuana operations donât comply with federal rules governing the sale of Schedule 3 substances, such businesses still would be considered illegal under federal law and most financial institutions would continue to refrain from serving clients in this sector.
Regardless of rescheduling, the cannabis industry still needs the federal government to recognize and respond to the critical nature of banking access for state-licensed cannabis businesses.
Cannabis industry struggles
The absence of efficient payment systems, which has long plagued cannabis retailers, has created a host of logistical headaches and operational disadvantages for the industry.
Cash-only businesses are forced to rely on workaround solutions that fall short of standard retail practices.
This not only creates friction in the customer experience and increases security risks, but it also opens the door to higher chances of currency fraud and inaccurate bookkeeping as well as driving up the cost of financial services to those lucky enough to secure a banking relationship.
Social equity is another area impacted by the industryâs lack of access to banking and financial instruments.
The difficulty cannabis entrepreneurs face in accessing capital is a major reason why initiatives aimed at benefiting groups disproportionately impacted by failed drug-war policies have fallen short.
Itâs all well and good to grant licensing priority to those most impacted by the war on drugs, but without the proper financial backing, itâs incredibly difficult to start a cannabis business â let alone one with profitability potential.
Why SAFER Banking matters
One legislative effort that holds promise for finally resolving the cannabis industryâs banking obstacles is the Secure and Fair Enforcement Regulation Banking Act, commonly known as the SAFER Banking Act, which has repeatedly stalled in the U.S. Senate despite several iterations passing the House.
This proposed legislation would do far more to improve banking conditions for the cannabis industry than rescheduling would.
Despite the road bumps thus far, I remain cautiously optimistic about the SAFER Banking Actâs chances for success.
SAFER made it out of the Senate Banking Committee in September 2023, and Senate Majority Leader Chuck Schumer, a New York Democrat, has pointed to cannabis banking reform as one of the chamberâs priorities in 2024.
Banking advocacy is essential
The cannabis industryâs banking challenges are multifaceted and deeply entrenched.
Financial institutions can play an important role in supporting this dynamic industry, but they require a new legal framework to effectively do so without exposing themselves to untenable risk.
While rescheduling marijuana is a step in the right direction, it wouldnât move the needle on access to banking services.
We stand at a critical juncture â closer than ever to achieving meaningful reform but still on shaky and uncertain ground.
The path forward requires a concerted effort to address the banking challenges that continue to hinder growth.
The more that cannabis business owners and industry stakeholders can sustain and ramp up their advocacy efforts, the more likely it is that weâll see legislative reform come to pass.
This includes talking to congressional representatives, joining industry advocacy organizations and participating in efforts to reform banking regulations.
By advocating for legislative reform and fostering a more unified approach to cannabis banking, we can pave the way for the stable and prosperous future the industry.
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