🔁 Alabama Medical Cannabis Commission restarts licensing process

Coalition of operators and investors file lawsuit against U.S. Attorney General over Controlled Substances Act (CSA). AYR Wellness extend debt maturity to 2026. AWH CFO joins AFC Gamma as CEO.

Nov 01, 2023

🌿 Industry

Alabama medical cannabis licensing process reset: All 90 applicants back in the running. The AMCC rescinded all awarded licenses and denials from an Aug. 10 meeting, setting the stage for a third round of license grants under rules adopted at a commission meeting on Oct. 12 — Alabama Today

The new procedures will allow commissioners to use the previous scores to decide on awards but the commissioners have full discretion when evaluating the suitability of all 90 applicants
The new rules also give applicants an opportunity to contest deficiencies identified in their application and their score results. Presentations will be open to the public. Applicants can also respond to preliminary pass/fail and submit application material that were not previously filed due to the file size limitation
An attorney urged the commission to throw out the previous scores as they will likely subject the process to unending litigation from those who lose

A coalition of Cannabis operators and investors challenge the constitutionality of federal drug law. Represented by Boies Schiller Flexner, the coalition filed a lawsuit against U.S. Attorney General Merrick Garland — Reuters

Canna Provisions, Gyasi Sellers, Wiseacre Farm and Verano are named as plaintiffs with foundational supporters that include Ascend, TerrAscend and GTI, as well as Eminence Capital and Poseidon
The lawsuit claims that the federal Controlled Substances Act undermines state law, harms the owners' businesses and threatens their public safety by forcing them to operate largely on a cash basis

New Farm Bill addressing hemp might push until 2024, key senator says. Congress has been gridlocked for most of the past month while the drama to select a new speaker for the House of Representatives played out — MJBizDaily

Since federal lawmakers need to first pass a spending bill to avoid a looming Nov. 17 government shutdown, other business such as the Farm Bill will have to wait. That could mean a one-year extension on the Farm Bill will be necessary
Such an extension has precedent. Congress did not pass the 2013 Farm Bill until February 2014. Updated and passed every five years, the Farm Bill addresses agricultural subsidies and food stamps—and, in recent years, hemp manufacturing and production

First pharmacy sales of medical cannabis in US start in Georgia. Patel’s Robins Pharmacy, Omega Pharmacy and the Allen Pharmacy Group, are the first to get a state license to sell low-THC medical cannabis — CNN

The Georgia General Assembly approved the distribution of low-dose THC oil in 2019, but it has taken years for the regulatory infrastructure to be put in place
To get state approval, pharmacies submit an application, get an inspection from the state drugs and narcotics agency
Pharmacies must keep the cannabis products on shelves with the rest of the prescription medicines

Missouri rolls back part of its cannabis product recall. The fate of 45,000 recalled products is still pending — Missouri Independent

The state rolled back its recall of ~15,000 cannabis products and allowed them to return to the dispensary shelves, after requiring companies to keep them in storage since early August
The Missouri Division of Cannabis Regulation said in an Oct. 20 notice that after a review of product-tracking records, regulators can verify that “some of the marijuana products on recall contain THC solely sourced from marijuana grown in the Missouri regulated market”

‘People just can’t pay their bills’: Oklahoma’s wild marijuana market is about to shrivel. At its peak, Tokelahoma had ~14,000 licensed medical marijuana businesses but has been steadily shrinking since Oklahoma voters overwhelmingly rejected a recreational legalization referendum in March. — POLITICO

According to a recent study, Oklahoma is producing a staggering 64 times the volume needed to serve the state’s medical patients
At the same time, there are just under 350,000 people enrolled in the medical program, down from a peak of more than 385,000
The next big shakeup is on Oct. 31 when all businesses (10,278 as of Oct. 2) must renew their licenses with the Oklahoma Bureau of Narcotics and Dangerous Drugs. For the first time since the medical market launched five years ago, OBN is requiring that businesses provide proof that they have a valid Certificate of Occupancy for their facilities

2023 Clio Cannabis award winners announced. — CLIO

Grand Clio: The Sentence of Michael Thompson and Black Women Are Resting
Gold Winners: Gorilla Rx Wellness (Black Women Get us Higher for Brand Identity), Synonymous Pictures/Cresco (The Sentence of Michael Thompson for Branded Entertainment & Content), Gentlemen Smugglers (Enjoy the Ride for Film & Video Craft), Gotham (Hi, I'm High for Social Media)

Arkansas reports $211M of medical cannabis sales through first 9 months of 2023

Mississippi reports ~21,000 patients as of late October 2023

Abstrax Tech argue that although terpenes play a role in defining the distinct aroma of cannabis strains at a general level, their importance is overstated

Washington’s Liquor and Cannabis Board has suspended the certification of True Northwest lab. The agency’s staff determined that the lab failed to meet several accreditation requirements, including not having a lab director and not having its scales properly calibrated. The lab provided incorrect results to its customers

💵 Deals

AYR Wellness entered into a transaction support agreement with the holders of ~75% of the aggregate outstanding principal amount of the Company’s 12.5% senior notes due December 2024, pursuant to which the Majority Noteholders have agreed to support a transaction under which: (i) all of the Senior Notes would be exchanged for an equivalent principal amount of new 13% senior secured notes due December 10, 2026 (ii) the Majority Noteholders will be offered the opportunity to participate in the issuance of additional 13% Senior Notes in an aggregate principal amount of $50 million (subject to 20% original issue discount); (iii) the offering of the New Money Notes will be backstopped by one of the Majority Noteholders, in exchange for which such backstop party will on closing receive a backstop premium payable in the form of subordinated, restricted or limited voting shares in the Company representing in the aggregate 5.1% of the outstanding shares on a fully-diluted and pro-forma basis and (iv) recipients of 13% Senior Notes will also concurrently receive subordinated, restricted and limited voting shares representing in the aggregate 24.9% of the issued and outstanding shares of the Company on a fully-diluted and pro-forma basis (or 20.8% of the outstanding shares assuming the exercise of the Anti-Dilutive Warrants. New warrants would be issued at closing to all then-existing shareholders and would be exercisable at $2.12/share for two years following closing.

The Company also entered into an agreement with LivFree to amend certain terms of the promissory note dated May 24, 2019 executed in connection with the Company’s acquisition of LivFree. The amendments to the LivFree Note will provide, among other things, a principal payment of $3 million upon closing of the Transactions and a deferral of the maturity of the remaining $17 million of principal and ~$5 million of accrued PIK interest for a period of two (2) years to May 24, 2026

StateHouse issued shares related to its acquisition of a further 29.9% interest in Harborside San Francisco as previously announced on February 15, 2022. The acquisition has increased the Company's interest in Harborside San Francisco to 80%

Safe Harbor Financial restructures certain deferred consideration payable to the shareholders of Abaca which it acquired on November 16, 2022. The restructured terms provide for: (i) a $2.00 conversion price on the $11.67M in stock currently owed to Abaca shareholders, resulting in the issuance of 5,835,822 shares of SHF common stock, reducing anticipated dilution; (ii) the delivery of warrants to the Abaca shareholders to purchase up to 5 million shares of Company class A common stock at an exercise price of $2.00/share; and (iii) a payment of $1.5M in October 2025, which may be payable in stock, cash, or the combination of both, at the Company’s option. The $3M in cash consideration scheduled to be distributed to Abaca shareholders in both 2023 and 2024 remains unchanged

Dama acquires Candid AI Platform, a digital e-commerce platform that makes personal product recommendations. Candid will integrate with GrowFlow and Dama's retail POS, providing consumers with access to consistent, accurate product recommendations both online and in-store

SNDL and Nova Cannabis extend date for Closing of the Strategic Partnership

📄 Company Updates

MJ Unpacked’s next conference will be in Atlantic City from April 9–11, 2024

Parallel’s subsidiary, now-defunct Goodblend Pennsylvania LLC ordered by a Pennsylvania court to pay $15.5M and vacate its Pittsburgh facility by Nov. 1. The judgment against Goodblend includes $5.8M worth of unpaid rent since October 2022

Trulieve progresses on first ever Pharmacy sales of Low-THC Oil in Georgia

Simplifya launches RegFinder and Hemp License Tracking Services. RegFinder makes it easy for operators, lawyers and others who reference regulations to access differing cannabis regulations for each state in a single, easily searchable database. Simplifya also expanded Simplifya Verified, streamlining the process of locating cannabis and hemp licenses, and organizes the disparate information into a single, user-friendly app with unlimited search flexibility

Michigan-based PUFF Cannabis Company is moving its corporate headquarters from Madison Heights to a renovated, 20,000 sq ft building in Troy to accommodate its growth. The company has grown revenue from $7.3 million in its first year to a projected $150 million in 2023 and plans to open an additional five to 10 new locations this year

TICAL Official launches in Missouri with CLOVR

Tinley’s Beverage Company settles claims made by former CEO, Jeffrey Maser

Treez achieves SOC 2 Type II Compliance after completing their SOC 2 Type I Compliance independent audit in March 2022

Green Flower partners with University of Denver to offer online certificate programs

🏬 Retail / Cultivation

Curaleaf and GTI among six Conditional Consumption Lounge Licenses awarded in Las Vegas. NevadaPURE (Shango Las Vegas), Desert Evolution, The Grove, and Higher*Archy were the other four awarded conditional licenses

Santa Monica Council approves zoning changes to allow for sale and delivery of adult-use cannabis

Trulieve opens Marianna, FL dispensary

Verano opens MÜV™ Satellite Beach, its 72nd FL Dispensary and 135th nationwide

GTI opens Sun City Center dispensary, its 10th in Florida

Gotham Buds, Harlem’s first legal adult-use cannabis retail store, opened last week across from the historic Apollo Theater

Pineapple Express opens flagship dispensary at Hollywood & Vine

Cheech & Chong enters MA market through licensing deal with Toroverde for three dispensaries in Whately, Greenfield, and Northampton

Union Square Travel Agency cannabis store blends quality, variety and education

Brute’s Roots, a woman-owned, family-run recreational cultivator in South Jersey is the first independent cultivator to bring products to market

🌱 Product

incredibles (GTI) partners with Magnolia Bakery for two limited-edition THC-infused chocolate bars (Swirled Famous Banana Pudding, Red Velvet Piece Ahhh Cake) at RISE Dispensaries in IL, NV and MA, with wider availability across the three states to follow. Magnolia Bakery opened in NYC’s West Village in 1996 and has since expanded to eight shops in NYC, one in Chicago and another in LA

Verano launches Savvy Threads, a streetwear and e-commerce platform that celebrates the Company’s Savvy cannabis brand imagery and its intersection with art, culture and contemporary fashion. More importantly, the non-plant-touching brand extension unlocks the Company’s ability to advertise in mainstream channels

Acreage launches Craft Cannabis Brand Superflux in NJ. The Superflux product line offers unique traits, uncommon terpenes, and uncanny aromas

Cheech & Chong launch hemp-derived THC seltzers across greater Boston

Cronos launches Spinach FEELZ™ Full Tilt THCV vape and gummy. Cronos also plans to launch a THCV-infused pre-roll under the Spinach FEELZ™ brand

🧔 People

AFC Gamma appoints Daniel Neville as CEO. Most recently, Neville served as CFO at Ascend Wellness. Leonard Tannenbaum will transition to Executive Chairman and CIO

Eric Hammond named President of cannabis lifestyle and luggage company, Revelry