👱♂️ Trump Reiterates Support for Amendment 3, Schedule 3 & SAFE Banking
👱♂️ Trump Reiterates Support for Amendment 3, Schedule 3 & SAFE Banking
CA DCC’s "Inadequate Oversight" of $100M grant. GrowFlow Management Buyout. Vangst acquires GreenForce. KEY Investment Partners launch Cannabis Credit Offering. Cookies x USC Athletics CBD partnership
🗣️ Thanks to those that have reached out regarding the event in Chicago I mentioned during Benzinga, while I haven’t replied to every email, I am still collecting interest in sponsorship/attendance.
🎟️ I’ll also be a raffle for a free ticket, so reply to this email if you’d like to enter. For 25% off tickets to the Benzinga Capital Conference, use CODE: HIGHLYOBJECTIVE25
🌿 Industry
Trump Reiterates Support for Florida’s Amendment 3, says he will work with Congress to advance Federal reforms around Rescheduling. Donald Trump announced his support for Florida's Amendment 3 and backs SAFE banking for cannabis businesses. — NORML
Promised to vote 'yes' and pledged to work with Congress on federal reforms, including rescheduling cannabis and providing cannabis businesses with banking access through SAFE banking legislation. Ahead of announcing his support for Amendment 3, he met with Trulieve CEO Kim Rivers
Trump’s support for reclassifying cannabis to Schedule III closes the differences between him and Harris’ position ahead of the debate on Tuesday
Trulieve (+15%) & Curaleaf ($CURLF +9.5%) on the news
DCC’s ‘Inadequate Oversight’ of $100M Undermined California Licensing Program for Cannabis Growers. CA State Auditor determined the Department of Cannabis Control ‘weakened’ the Local Jurisdiction Assistance Grant Program. — CBT
The DCC did not correctly oversee a $100 million grant intended to help 17 jurisdictions assist cannabis cultivators in their transition from provisional to more permanent annual licenses, according to an Aug. 29 state auditor’s report
The state’s Local Jurisdiction Assistance Grant (LJAG) Program, approved by the California Legislature in June 2021, provided the one-time funding source to aid thousands of small, legacy and equity cannabis businesses in complying with a state environmental mandate
The state mandate to move all cannabis businesses from temporary provisional licensure to more permanent annual licensure was initially supposed to transpire in 2019, but the deadline was extended multiple times amid the largely underfunded expectations put on local jurisdictions to oversee the CEQA reviews
Under the current statutory timeline, the DCC cannot renew provisional licensure beyond Jan. 1, 2025, and those license holders must convert to annual licensure by Jan. 1, 2026, or face a forced market exit
NY’s list of dispensaries late on their bills grows to 13. Between 8/28 and 9/4, a confidential list kept by NY OCM that records dispensaries that are more than 30 days late on debts to suppliers has grown from just two company to 13. — GMR
The new cash on delivery, or COD, list includes both the two that had been previously reported, Smacked and Royal Leaf NY, but now also includes:
Housing Works Cannabis, Urban Weeds, Athenian Royalty Group, New Metro Enterprise, Luke Cloud, Nickel City Green, Evija Artworks, Michael D Gant, Boxing Express, Two Buds Enterprise and The Higher Company
Companies named on the COD list are prohibited from purchasing cannabis inventory on credit until their bills are paid up and their name is removed
California Governor Issues Proposed Regulations to Halt Intoxicating Hemp Products. Gavin Newsom’s rules would require that consumable products containing hemp derivatives have no amounts of intoxicating cannabinoids. — CBT
The emergency regulations respond to increasing health incidents related to intoxicating hemp products, which state regulators have found sold across the state, especially beverages and food products
The Department of Alcoholic Beverage Control will enforce all California laws and regulations impacting ABC licensed locations
The regulations, proposed by the California Department of Public Health (CDPH), would result in “complete retail prohibition on 90%-95% of popular hemp products for adults,” Jonathan Miller, GC of trade group Hemp Roundtable
4th Circuit Court Rules THC-O Meets Legal Definition of Hemp, Deviating From DEA. The federal court’s interpretation of the 2018 Farm Bill contradicts the Drug Enforcement Administration’s position that THC-O is illegal. — CBT
Since THC-O is derived from delta-9 or delta-8 THC and does not occur naturally in the cannabis plant, the DEA’s 2023 interpretation is that it does not fall under the definition of hemp
Similarly, the DEA determined that “all synthetically derived tetrahydrocannabinols,” such as delta-8 THC and THC-O, “remain Schedule I controlled substances” in its Interim Final Rule from August 2020
However, the U.S. Ninth Circuit Court of Appeals first rejected the DEA’s interpretation in May 2022, when a federal judge applied the DEA’s argument to delta-8 THC in a trademark infringement and copyright dispute between AK Futures LLC and Boyd Street Distro LLC in Nevada
Shopping around for favorable cannabis testing labs. In US states struggling to regulate testing, some labs seem to offer results that are too good to be true. — Chemical & Engineering News
States address yeast and mold contamination in different ways. Many states require classic microbial plating and culture methods. Some have adopted a limit of 10,000 colony-forming units (cfu) per gram of cannabis flower. In Maryland, the limit is 10x higher because nearly all products would fail the 10,000 cfu/g limit
In California, regulators no longer require total yeast and mold counts. Instead, labs test for pathogenic molds, such as Aspergillus, as well as harmful bacteria like Salmonella and Escherichia coli, using polymerase chain reaction methods
Based on the data he has seen so far, Yasha Kahn, VP Marketing and data science, MCR Labs estimates that 30% of cannabis testing labs are reporting false results. And those labs test 50–60% of the products
MO Division of Cannabis Regulation issues third marijuana product recall in one month. The DCR issued a product recall Friday, Aug. 30 for marijuana products manufactured by Blue Sky Health & Wellness LLC, a marijuana-infused product manufacturer in Jonesburg. — Missouri Independent
The products were recalled because they were not compliantly tracked in Metrc according to a DCR news release. Because the products were not tracked, the DCR could not verify health and safety requirements
Four Cannabis Edible Brands Dominate 18% of U.S. Market. A report from New Frontier Data reveals that four major brands (Wyld, Kiva, Camino and Select) control 18% of the U.S. market share. — Green Market Report
The report was based on information from 1,700+ dispensaries across 34 states
For the week of Aug. 25, Wyld, Incredibles, Wana Brands and Kiva/Camino are, in that order, the top four most popular cannabis edibles makers
Wyld has 8.4% of the national market, while Incredibles has 5%, Wana has 4% and Kiva has 3.5%. Following the top four were, in descending order, Smokiez with 2.6%, Good Day Farm with 2.4%, Grön with 2.2%, Copperstate Farms with 2.1%, Ayrloom with 2.1% and Off Hours with 1.9%
Leaflink release The State of the U.S. Cannabis Industry: Summer 2024 Insights
Ohio tops $44 million in first month of adult-use sales
Bipartisan Majority Of Texas Voters Back Cannabis Decriminalization, New Poll Shows
New Mexico issues recall for products sold by The Maggie's Farm
D.C.’s medical cannabis program continues to struggle along despite warnings of enforcement against “gifting” stores ($4.5M in July sales), five legal dispensaries went out of business in the past two years
UFCW has established a membership of 10,000+ in the cannabis industry
From June 2023 to June 2024, pre-rolls saw the biggest increase in sales revenue among all categories with an 11.9% jump YoY, according to Custom Cones USA
💵 Deals
GrowFlow Acquired by TDV Capital & Management Team. GrowFlow provides legally licensed cannabis operators with essential tools, including seed-to-sale inventory management software, point-of-sale software, e-commerce menus, and payment solutions. The platform also integrates with state reporting databases to ensure full compliance with regulatory requirements.
Vangst acquires GreenForce. GreenForce is a cannabis temporary staffing agency operating in Oregon & Arizona, with 100+ clients. GreenForce Founder & CEO Ryan Rosenfeld will join Vangst as the Chief Business Officer, focused on further regional and national expansion. This brings Vangst's total customer count to over 1,800.
Mint Cannabis and Shango Joint Venture Enters Into Definitives for the Acquisition of the Cannabist Company’s Florida Entity. MINT Cannabis and Shango have, through a joint venture (MINT SHANGO JV), entered into a definitive agreement to acquire all membership interests in The Cannabist Company's Florida subsidiary. During the next 18 months, the MINT SHANGO JV has plans to scale its Florida operations to 35 MINT-branded dispensaries.
Organigram Closes Second Tranche of Previously Announced BAT Private Placement Investment. The Company closed the second of three tranches of the previously announced C$124.6M follow-on strategic equity investment by BT DE Investments, a wholly owned subsidiary of BAT. Pursuant to the Second Tranche closing, the Investor acquired 4,429,740 common shares and 8,463,435 Class A preferred shares of the Company at a price of C$3.2203 per share for gross proceeds of $30.8M. The remaining 12,893,175 Shares subscribed for are due to be issued at the Per Share Price in the final tranche on or around February 28, 2025.
Body and Mind (BaM) Closes Ohio Processor Transaction. BaM’s wholly owned subsidiary, DEP has closed the previously announced transaction to sell all of its interests in the Body and Mind Ohio processor for total consideration of $2M in cash, which was received in early 2024.
Tilray Brands Completes Acquisition of Craft Beer Brands and Breweries from Molson Coors Beverage Company. This makes the company the 5th largest craft brewer in the country and the top craft brewer in the Pacific Northwest and Georgia.
Cansortium Shares for Debt Settlement. The company has issued an aggregate of 865,382 common shares of the Company to certain of its directors in exchange for the cancellation of US$112,500 of director fees.
📄 Company Updates
AYR Wellness Secures Conditional Approval to Establish Vertical Medical Cannabis Operations in Virginia. AYR was awarded conditional approval to serve as a pharmaceutical processor by the Virginia Cannabis Control Authority (CCA) for Virginia’s Health Service Area 1 (HSA 1). HSA 1 encompasses various cities and counties in Virginia, including Charlottesville, Fredericksburg, Spotsylvania, and Stafford. The HSA I region hasn’t had a licensed operator because the Virginia Board of Pharmacy rescinded the license that was awarded to PharmaCann after its 2019 merger with MedMen failed.
KEY Investment Partners Launch Cannabis Credit Offering, Closes Senior Credit Facility. KEY has established a new cannabis credit offering, providing growth capital to cannabis businesses. In addition, KEY closed a senior credit facility with The Dispensary, an Illinois cannabis operator seeking to grow its retail footprint and expand its craft cultivation capabilities.
KANHA X The Beach Samui Transform Wellness Tourism with the First Licensed Cannabis Enhanced Therapies in Asia. This collaboration introduces a new suite of exclusive cannabis-enhanced treatments, designed to elevate the guest experience and set a new standard for luxury wellness tourism on Thailand's iconic Koh Samui.
Green Check x CTrust x Coda Capital Advisors to Expand Access to Lending for Cannabis Industry. Green Check, CTrust and Coda Capital Advisors will provide an unrivaled platform for financial institutions to start lending to compliant cannabis-related businesses (CRBs) in as few as 60 days. Available to the more than 170 banks and credit unions on Green Check’s platform, the partnership incorporates Green Check’s vast industry data and lending policy guidance, CTrust’s risk-based pricing engine and industry-first credit rating, and Coda’s innovative loan participation program. The result is a tailored, full-spectrum and data-driven lending program that incorporates policy guidance, origination and underwriting, de-risking, servicing, monitoring and reporting.
🏬 Retail / Delivery
The Great Smoky Cannabis Company began adult-use sales on North Carolina tribal land. Eastern Band of Cherokee Indians (EBCI) voters approved a referendum during the 2023 General Election on Sept. 7 which asked, “Do you support legalizing the possession of and use of cannabis for persons who are at least twenty-one (21) years old and require the EBCI Tribal Council to develop legislation to regulate the market?” The referendum passed 2,464 (yes) to 1,057 (no). The dispensary had a line of 1,000+ people snaked through the parking lot and 4,000+ people were served at the dispensary during opening weekend.
Gotham opens Hudson, NY dispensary. Gotham first opened as a pop-up in Hudson in October 2023 through the state’s Cannabis Growers Showcase program. This is the company’s second location after NYC, it also has plans to open a dispensary in WIlliamsburg/Brooklyn at The Refinery at Domino.
Planet Nugg becomes third Long Island dispensary. The 5,000 sq ft dispensary is owned by chiropractor Dave Tubens, who also owns Island Regional Chiropractic, a network of six Long Island chiropractic practices. Though Tubens received his dispensary license in Dec. 2021, finding an appropriate location for the business proved to be his biggest challenge. “We were looking for a very long time,” he said. Finally, Tubens was able to purchase the 11,000-square-foot industrial-zoned building on Wellwood Avenue for $2.9 million in Dec. 2023, where he built Planet Nugg and has two other tenants at the property. He said officials at the Town of Babylon have been instrumental in the process.
Verano to open dispensary in Antwerp, OH. The dispensary is just a few minutes from the Indiana-Ohio state line will have a marijuana dispensary in the future. As a Level II licensed cannabis operator in the state, Verano had the option to open a sixth Zen Leaf location, and the company was awarded a sixth location in Antwerp near the Indiana border and Ft. Wayne metro area following a state-run lottery process.
San Luis Obispo cannabis retailers allowed to deliver following council decision. Megan's Organic Market and SLO CAL Roots are the only two cannabis storefronts within San Luis Obispo's city limits. Those San Luis Obispo dispensaries will be able to apply for the amendment at the beginning of November.
Trulieve opens 149th Florida dispensary in Clearwater, FL
🌱 Product
Cookies x USC Athletics CBD Partnership for College Football, Basketball Sponsorship. As the first official partnership for the category in collegiate athletics, fans will soon see Cookies integration within USC football, men’s and women’s basketball and on athletics digital channels. Additionally, exclusive Cookies promotional items and on-site tailgate experiences will also be available at select events throughout the year.
Grön Introduces 10-Pack MEGAs to Arizona’s Medical Cannabis Market, Available Exclusively at Trulieve. The new MEGA packs contain 10 larger-than-life MEGAs totaling 1,000 milligrams of THC per package. Additionally, Grön launched their 2-Pack Sugar-Coated Pearls, which will now be available in adult-use markets in Arizona, Missouri, New Jersey, and New York.
FundCanna Introduces ReadyPaid: Flexible Payment Solution for the Cannabis Industry. ReadyPaid is a pioneering cannabis industry B2B Buy Now, Pay Later (BNPL) solution, offering Net30 payment terms with the added option to extend terms for up to six additional months. By enabling sellers to receive immediate payment while offering buyers the flexibility to manage cash flow, ReadyPaid fosters growth, stability and predictability in both Accounts Receivable and Accounts Payable.
The Cannabist Company brings Seed & Strain Brand to PA. Seed & Strain debuts in Pennsylvania with 1.0-gram vape cartridges and whole flower and is available at the Columbia Care locations in Allentown, Scranton and Wilkes-Barre, and across the Company’s wholesale channels.
🧔 People
Chair of embattled MA Cannabis Control Commission (CCC) fired by Massachusetts Treasurer. CCC chairperson Shannon O'Brien was formally removed from her role on Monday, after a lengthy suspension and legal battle.
1933 Industries Board member Rick Skeith has resigned, effective immediately
🎙️ Interviews
Trump & Cannabis: Florida & Rescheduling (Hirsh Jain) | Cannabis Investing Network
eCommerce Solutions for Legal Cannabis Retailers (Jane) | Veteran On the Move
Harvesting Adult-Use Opportunities w/ AYR WEllness CEO | Higher Exchanges
Metrc CEO Talks Retail ID and Securing the Cannabis Supply Chain | CBE
System of a Down’s Shavo Odadjian | Phoenix New Times
Unpacking Political Catalysts | Higher Exchanges
Hirsh Jain, Ananda Strategy | The Green Rush