CANNA NEWS

STATE AND REGULATORY NEWS

House approves marijuana banking, employment and D.C. sales provisions in large-scale spending bill. The U.S. House of Representatives approved a package of spending legislation that contains measures to provide protections for banks that work with state-legal cannabis businesses and allow the legalization of marijuana sales in Washington, D.C., among many other drug policy provisions. The appropriations legislation and attached reports also direct federal government agencies to reconsider policies that fire employees for using cannabis in compliance with state law, criticize restrictive hemp regulations, encourage CBD to be allowed in foods and urge expanded research on marijuana and other substances. The legislation restricts the use of certain funds to punish banks for working with marijuana businesses. Read More (Marijuana Moment)

Proposed tax rates in Schumer’s marijuana reform bill elicit ‘sticker shock’. The draft bill outlining Senate Majority Leader Chuck Schumer’s federal marijuana reform legislation sets a nationwide MJ excise tax that would rise from 10% to 25% over five years, a top rate that industry officials argue would be overly burdensome to operators as well as too high to combat illicit operators. The Cannabis Administration and Opportunity Act – unveiled earlier as a 163-page “discussion draft” – would legalize marijuana by removing it from the federal Controlled Substances Act. That means it would eliminate Section 280E, the provision in the Internal Revenue Service tax code that prevents marijuana businesses from deducting the same ordinary business expenses that mainstream industries can. But a 25% federal excise tax on marijuana – on top of any state and local taxes – would hit growers especially hard, quite likely exceeding their savings from the elimination of 280E, experts said. Read More (Marijuana Business Daily)

U.S. sports authority backs ‘liberalization’ of marijuana laws, official tells lawmakers. A representative of the U.S. Anti-Doping Agency (USADA) shifted blame for the Olympics suspension of the U.S. runner Sha’Carri Richardson over a positive marijuana test, saying the national sports organization is “heartbroken” over the case and supports “liberalization” of current bans but claiming that its hands are tied with respect to enforcing international drug policy. Justin Strekal, political director for NORML, told Marijuana Moment: “USADA told Congress, right to its face, that the policy of prohibition and stigmatization of cannabis consumers is wrong. The remaining question is when will the House take action to end the mandate that organizations like USADA, the DEA, ONDCP, and others stop criminalizing otherwise law-abiding Americans?” Read More (Marijuana Moment)

How cannabis became illegal. It actually wasn't until 1970 that cannabis, by virtue of being declared a Schedule l drug, officially became illegal and of no medicinal value. In the 33 years between 1937 and 1970, cannabis was not, technically, illegal. The Marijuana Tax Act of 1937 did, however, make it illegal to produce, possess, or consume cannabis without the permission of the federal government—as expressed in the form of a special cannabis tax stamp. Interesting, the Marijuana Tax Act did not explicitly outlaw cannabis. Rather, it failed to distribute the tax stamps that legally permitted its cultivation and distribution, creating a de facto prohibition at the federal level. In December 2018, a new Farm Bill was passed by Congress which legalized hemp—although under relatively strict regulatory oversight for which the traditionally anti-cannabis Drug Enforcement Administration (DEA) plays a role in crafting and enforcing. Read More (Higher Learning LV)

Does big business provide a better look into cannabis reform than Capitol Hill? Operators believe so. Cannabis operators and executives tell Benzinga that the movement of private and public companies may serve as a better indicator of regulatory activity than the federal government. At the very least, they say that the industry has made advancements so far without the efforts of Capitol Hill. Poseidon Asset Management managing director Emily Paxhia recently mentioned that she and her firm are tracking the steps of private companies, cannabis and otherwise, noting which prominent brands are supporting the cannabis industry. Operators in various sectors of cannabis feel that the industry provides a better insight into regulatory needs and movements than lawmakers. Read More (Markets Insider)

Billionaire Charles Koch on why cannabis should be legal. Depending on whom you ask, Charles Koch is a titan of industry, dark money political bogeyman or the Marcus Aurelius of the libertarian movement. But soon Koch might be known as the billionaire who persuaded Republican and Democratic holdouts to legalize cannabis at the federal level. Although Koch isn’t big on consuming it himself, he’s going public now with a long-held belief: Cannabis should be legal nationwide. So he’s putting his name, and nearly $25 million of his $45 billion fortune, to influence criminal-justice reform and legalization by the end of 2021. Charles Koch said: “[Prohibition] is counterproductive. It ruins people’s lives, creates conflict in society and is anti-progress. The whole thing never made sense to me.” Read More (Forbes)

Source: Intro-act, Will Yakowicz, National Conference of State Legislatures and Marijuana Policy Project, Datawrapper, Forbes

Cannabis firms face surging costs for building materials, complicating plans. Cannabis growers, manufacturers and retailers planning to build new facilities or expand existing ones are facing not only soaring costs for materials but also lengthy wait times to get their projects off the ground. And it’s not just the global COVID-19 pandemic that’s causing the increased cost and supply shortage for both marijuana and mainstream businesses, said David Fettner, principal of Highwood, Grow America Builders, a construction company serving the cannabis industry. Wholesale steel prices, for example, rose 36% during the first six months of the year, according to federal data. Lumber prices in June were up 23% from January and 48% from June 2020. Read More (Marijuana Business Daily)

Source: Intro-act, U.S. Bureau of Labor Statistics’ Producer Price Index, Marijuana Business Daily

Ohio lawmakers introduce bill to legalize recreational cannabis. Two Democratic state lawmakers in Ohio introduced a bill to legalize recreational cannabis. According to Toledo TV station WTVG, the measure would establish a 10% excise tax on gross receipts of marijuana retailers. The bill sponsors – state Reps. Casey Weinstein and Terrence Upchurch – said they’re hopeful the measure will pass with bipartisan support. But at least two Republican lawmakers told WTVG they’re staunchly opposed to legalizing recreational marijuana. The move follows an announcement that a group of cannabis advocates have launched a campaign to put adult-use cannabis on Ohio’s 2022 ballot. Read More (Marijuana Business Daily)

Maryland plans recreational cannabis vote in 2022 elections. Marijuana is becoming a fixture during political rallies, campaigns, and legislative plans. You don’t have to wonder why this is the norm because there is a heightened global interest in cannabis, with different states and nations committing to studying and harnessing its potential through legalization. Maryland is taking the same approach as its lawmakers are planning cannabis legalization measures for their 2022 elections. The lawmakers announced that the legislative arm of government would rely on voters on marijuana policy reform. They intend to do this by putting cannabis legislation measures on a statewide ballot in 2022. The Maryland House of Delegate Speaker, Adrienne A. Jones issued a statement stating that she will create a legislative workgroup to start studying the conditions around cannabis legalization. Read More (Cannabis.net)

Illinois finally issues long overdue cannabis licenses. Governor J.B Pritzker’s office announced the issuance of 200 new licenses for craft growers, product manufacturers, and distributors that were originally to be issued last year, according to Capitol News Illinois. The report stated that 67% of the new licenses will go to people of color, helping fulfill part of the social equity program first proposed in the state’s adult-use legalization measure, which was passed into law in 2019. Additionally, Pritzker signed into law Illinois House Bill 1443, which establishes three lotteries for retailer licenses. The first is essentially a do-over of one conducted last year, the 75 retailer licenses from which were never issued due to litigation over the license-scoring process. Two additional lotteries will award 55 retailer licenses each. Read More (Cannabis Benchmarks) and More (Grown In) and More (Marijuana Business Daily)

Idaho officials clear marijuana activists to collect signatures for revised legalization ballot measure. Idaho officials have cleared activists to begin collecting signatures for a revised initiative to legalize possession of marijuana that they hope to place before voters on the 2022 ballot. After being reviewed by the state attorney general’s office, the latest version of the measure was uploaded to the secretary of state’s website in final form along with official short and long ballot titles. Meanwhile, a separate campaign to legalize medical cannabis in the state is also underway, with advocates actively collecting signatures to qualify that measure for next year’s ballot. The attorney general previously outlined a number concerns on potential legal issues with the adult-use measure and made non-binding recommendations for changes. Read More (Marijuana Moment)

Cuomo’s slow rollout of legalized weed becoming a real buzzkill, critics say. New York’s legalized-pot program is on a train to nowhere — apparently derailed because Gov. Andrew Cuomo is fuming over his stalled plans to overhaul leadership at the MTA. Cuomo and the state legislature approved the legalized sale of weed in New York in March, but the governor has since become a real buzzkill on the issue, critics say. He has yet to nominate an executive director for his new Office of Cannabis Management or name appointees to the Cannabis Control Board, even though the Marijuana Taxation and Regulation Act was passed months ago. Cuomo spokesman Richard Azzopardi said: “We agree there’s a lot of unfinished business with the Senate, and we’re ready to submit our nominations, and we hope they reconvene and act on these and our MTA legislation and nominations.” Read More (New York Post)

Illegal cannabis growers are stealing water amid California’s drought, officials say. California’s deepening drought is creating another big problem for authorities: water theft. Water thieves, many of them illegal marijuana growers, are tapping into fire hydrants and drilling unauthorized water wells, according to officials, threatening the water supply for residents. In a recent sting in Antelope Valley in northern Los Angeles County, federal, state and local law enforcement officers disrupted hundreds of allegedly illegal marijuana cultivations in the area. They arrested 131 people and seized 65 vehicles, including two water trucks. Authorities recovered $28,000, 33,480 pounds of marijuana and dozens of firearms. Nineteen people were charged with water theft. Water thieves, many of them illegal marijuana growers, are tapping into fire hydrants and drilling unauthorized water wells, according to officials, threatening the water supply for residents. Read More (The Washington Post)

Cannabis industry in New Mexico faces big water challenge. All prospective cannabis producers in New Mexico must prove they have rights to water and an adequate supply before they can apply for a license, the Santa Fe New Mexican reported. That can be a problem, especially for rural growers, in a state with complicated laws divvying up a limited supply of water rights and in the throes of a 20-year megadrought that threatens to contribute to a serious water shortage. While cannabis growers who plan to operate in facilities within a city can tap into the municipal water supply as commercial customers, those growing outside city limits must purchase or lease commercial or agricultural water rights from someone else who owns them — a difficult and time-consuming process. A domestic well on private property does not satisfy the requirement. Read More (Antelope Valley Press)

New Mexico likely to run out of cannabis after legal sales begin. The head of the state agency charged with overseeing New Mexico's upcoming recreational cannabis industry told lawmakers to prepare for the "Krispy Kreme syndrome." Linda Trujillo, superintendent of the Regulation and Licensing Department, said: "It's highly likely we will run out of cannabis in the first week, if not the first two weeks" after legal sales begin. Comparing expectations of the new market, expected to start by April, to reports of people waiting in line for hours before the opening of a new Krispy Kreme franchise, Trujillo said the initial demand will diminish over time. The Regulation and Licensing Department has not yet released proposed rules for retailers, and its Cannabis Control Division has not yet completed appointments to the Cannabis Regulation Advisory Committee, which is tasked with providing guidance on the industry's rules. Read More (The Santa Fe New Mexican)

Michigan credit union to offer banking services to marijuana companies. The Frankenmuth Credit Union in Michigan launched a product to provide banking to marijuana companies in the area, only months after regulators went after another financial institution for a similar move. According to the Detroit Metro Times, the credit union created Envy, a pilot program dedicated to servicing cannabis businesses and unveiled a plan to add one or two new marijuana-related business members each month for the remainder of 2021. The credit union, which services roughly 60,000 people, is partnering with Green Check Verified, a financial technology company that enables financial institutions to “safely and efficiently” offer services to legal marijuana businesses. Read More (Marijuana Business Daily)

Michigan is the state of opportunity for private marijuana operators. Despite being a top cannabis market in the U.S., Michigan largely has been ignored by multistate operators because of the low barriers to entry for new licensees. However, with plenty of market growth and heavy fragmentation across the supply chain, the state offers a compelling opportunity for efficient private operators. The fragmentation, in turn, has caused price compression. Initially, this was offset by consumer demand, with recreational sales per dispensary peaking at $5 million in April 2021. However, demand has slowed in recent months, and prices have continued their decline. This highly competitive environment has kept most publicly traded companies away from Michigan. Read More (Marijuana Business Daily)

Source: Intro-act, MjResearchCo, Marijuana Business Daily

Colorado launches Cannabis Business Office to assist MJ companies. Colorado is forming a new state agency, the Cannabis Business Office, designed to provide more governmental support to marijuana companies, particularly social equity entrepreneurs. The new department, announced by Colorado Gov. Jared Polis, will dole out loans and grants to social equity cannabis entrepreneurs and provide technical assistance to MJ business owners. The Cannabis Business Office will be an arm of the Colorado Office of Economic Development and International Trade. The agency was created just this year by the Colorado legislature with the passage of Senate Bill 111. In a statement, Polis said the creation of the department is part of his overall goal of making Colorado a national cannabis industry leader. Read More (Marijuana Business Daily)

Maine’s recreational marijuana industry saw record $6.4 million sales in June. Maine’s adult-use marijuana industry had another record-breaking month in June, with nearly $6.5 million sold in June. From first-timers to regular customers, there’s growing demand for marijuana in Maine. Statewide, retail sales reached $6.47 million in June, up more than a million dollars from May. Erik Gundersen, director of the Maine Office of Marijuana Policy said: “Taking a look at some early data, we expect the same thing for July, so it’s incredibly encouraging. Consumers are starting to choose the regulated, tested, tracked marketplace for cannabis”. He said access is expanding, with 45 active retail stores and around 50 municipalities opting-in. Read More (Bangor Daily News) and More (Maine.gov)

Source: Intro-act, Maine.gov

Medical marijuana sales in Arkansas hit $365 million, state officials expect tallies to top $400 million by fall. Medical marijuana sales keep climbing in Arkansas, and state officials expect the figures to keep getting higher. New figures released from the Arkansas Department of Finance and Administration show the state hitting $365 million in overall sales from 54,009 pounds of product. Those numbers are an increase of $26.5 million and 3,924 pounds since June’s data, which reported $338.5 million and 50,085 pounds in sales. As of July 23, there are 78,754 active patient cards in the state. That’s a 1,081 increase over the 77,673 reported in June. That increase in patients and dispensaries has state officials predicting continued growth in state revenue from medical marijuana in the Natural State. DFA spokesperson Scott Hardin said: “We anticipate sales will reach $400 million by September 1”. Read More (KARK.com)

The U.S. cannabis spot index increased 0.5% to $1,598 per pound, August 2021 implied forward down $10 to close at $1,605 per pound. The simple average (non-volume weighted) price increased $27 to $1,881 per pound, with 68% of transactions (one standard deviation) in the $1,063 to $2,699 per pound range. The average reported deal size increased to 2.6 pounds. In grams, the Spot price was $3.52 and the simple average price was $4.15. The average reported forward deal size was 62.5 pounds. The proportions of forward deals for outdoor, greenhouse, and indoor-grown flower were 53%, 35%, and 11% of forward arrangements, respectively. The average forward deal sizes for monthly delivery for outdoor, greenhouse, and indoor-grown flower were 78 pounds, 50 pounds, and 30 pounds, respectively. Read More (Cannabis Benchmarks)

Source: Intro-act, Cannabis Benchmarks, New Leaf Data Services

Legal cannabis industry in Oklahoma funds more enforcement efforts as criminals 'make us look bad'. With a more open cannabis industry in Oklahoma spurring organized crime concerns, state agencies say they need to team up and expand compliance and enforcement efforts with funding provided from the fees paid by medical marijuana businesses operating legally. An Oklahoma Medical Marijuana Authority-licensed Garvin County grower told the Tulsa World: “We need to make sure bad actors are not here. For those of us who live and breathe these rules every day, it makes us look bad.” Officials with OMMA and the Oklahoma Bureau of Narcotics are hopeful a new memorandum of understanding between the two organizations, despite their differing roles, will improve efforts to efficiently block illicit activity — whether from within the state’s medical program or otherwise. Read More (Tulsa World)

Elon Musk, Jeff Bezos & Richard Branson: which market leaders will make up the cannabis industry space race? As billionaires like Elon Musk, Jeff Bezos and Richard Branson race for space, who will be the leaders in the nascent cannabis industry as it vaults to astronomical heights? Operators in various parts of the cannabis industry offered Benzinga their takes. Providing various responses, most focused less on the people and more so the brands and companies that could be headed to the moon, of sorts. Olivia Alexander, CEO of online global CBD boutique Kush Queen, compared the industry to the dot com bubble and said: "At this stage, the industry is so young with so much room for innovation and expansion it is very hard to say how many players are going to remain once the market begins to mature and fully develop on a federal level." Read More (Markets Insider)

Canadian cannabis producers have sold less than 20% of output since adult-use legalization. Cannabis producers in Canada have sold less than 20% of their production since the country launched adult-use sales in October 2018, according to an MJBizDaily analysis. The newest data – which runs through 2020 – implies that most of the cannabis produced from 2018 through last year was either stored in inventory or destroyed, and less than one-fifth ended up in retail stores. That disconnect likely helps explain how the largest Canadian cannabis producers, which account for most of the industry’s production, together have lost more than CAD $11 billion ($8.8 billion) cumulatively. Roughly 2.7 billion grams (2,976 tons) of cannabis were produced in Canada between October 2018 and December 2020, but MJBizDaily estimates that approximately 450 million grams reached store shelves. Read More (Marijuana Business Daily)

Cannabis stores on rise in Canada. The number of stores continues to climb steadily across the country, making the legal cannabis system more accessible to consumers. Our latest count shows the number of stores open for business reached 2,277 as of the end of July. This is up by 1,255 stores, or a jump of 123%, compared to July 2020. As can be seen in the chart below, Cannabis Benchmarks expect that trend to continue throughout this year. Cannabis Benchmarks expected Alberta’s store count to plateau in the second quarter of this year, but the store count there has continued to grow. Quebec currently has 89 cannabis retail locations, which is a 106% increase from last year, and we expect the store count there will expand to 104 retail locations by the end of the year. Read More (Cannabis Benchmarks)

Source: Intro-act, Cannabis Benchmarks, New Leaf Data Services

Older, higher and fewer newbies: four new trends in Canada's cannabis market. 1) More older users: While there was a presumption during the early days of legalization that older Canadians were a mostly "canna-curious" group, and that most sales would occur from a younger demographic, Brightfield found that the average consumer age has increased over the past year, 2) High demand for high THC: Canadian cannabis users who prefer their products with THC were found to be the most frequent consumers, with 48 percent of those so-called "THC-dominant consumers" using marijuana at least once daily, while 28 percent of them said they consume multiple times a day, 3) Fewer newbies: The amount of new people entering the cannabis market is trending down, a sign that the total consumer base may be plateauing in the Canadian market, and 4) Illicit market shift: Ontario cannabis consumers are increasingly moving away from the illicit market and engaging more with legal retail options as they become more widely available and convenient, according to Brightfield's data. Read More (BNN Bloomberg)

Source: Intro-act, Brightfield Group, BNN Bloomberg

COVID-19

COVID cannabis consumption expected to remain high even after pandemic. Cannabis producers in Canada have sold less than 20% of their production since the country launched adult-use sales in October 2018, according to an MJBizDaily analysis. The newest data – which runs through 2020 – implies that most of the cannabis produced from 2018 through last year was either stored in inventory or destroyed, and less than one-fifth ended up in retail stores. That disconnect likely helps explain how the largest Canadian cannabis producers, which account for most of the industry’s production, together have lost more than CAD $11 billion ($8.8 billion) cumulatively. Some industry experts blame poor-quality cannabis for the sales shortfall. Read More (Marijuana Business Daily)

Boom or bust? Marijuana execs see more sales gains as COVID-19 lockdowns ease. While marijuana sales have slowed the past couple of months – raising questions about whether a boom in coronavirus-related cannabis purchases is petering out – industry executives are bullish and note that sales remain up versus a year ago. And while recreational sales in some key states have begun to show signs of flattening, they remain above levels seen a year ago, according to Seattle-based data-analytics firm Headset. In California, for example, adult-use sales in June eased 0.8% from May but were up 10.4% versus June of last year. Ditto in Oregon, where sales in June were off 6% from May but up 2.4% from a year earlier. And in Washington state, June sales were off 0.3% from May but up 4.5% from a year earlier. Read More (Marijuana Business Daily)

Source: Intro-act, State Marijuana Regulatory Agencies, Headset

COMPANY NEWS

Tilray reports $336 million annual loss, targets $4 billion in cannabis sales by 2024. Tilray (TLRY) reported an annual loss of $336 million (CAD $422 million) for its fiscal year ended May 31, capping off a transformative year in which the company closed a reverse-merger with Aphria and bought U.S SweetWater Brewing Co. On a quarterly basis, net revenue increased 16% over the previous three-month period to $142 million, helping the company post net income of $33.6 million while adjusted EBITDA was $12.3 million. In a conference call with analysts to discuss the quarter, CEO Irwin Simon said Tilray is aiming to achieve $4 billion in sales by the end of 2024. He said the forecast includes expected sales in the U.S. of up to $1.5 billion. Read More (Marijuana Business Daily)

Tilray CEO breaks down the future of the cannabis industry. Tilray (TLRY) CEO Irwin Simon talks with Julie Hyman on the integration of Tilray and Aphria thus far, and his vision for the company and cannabis industry heading into a post-pandemic world He said: “When you think of cannabis, you think adult use, and what it ultimately does from relaxation from giving you a little energy high, et cetera, and cannabis, also, used in lots of different medical formats and medical reasons.” He added: “You know, the natural organic food industry was about a $60 billion industry, so the cannabis industry is a much bigger industry, a much bigger opportunity. My playbook here is to create the largest cannabis company that's built around consumer brands, and those brands will be built around adult use. It will be built around medical cannabis. It will be built around drinks, edibles, and food.” Read More (Yahoo!)

Houseplant and Canopy Growth to conclude their strategic relationship in Canada. After three years of a successful joint venture, Houseplant and Canopy Growth (CGC) have mutually agreed to end their relationship. The Canadian cannabis market has evolved substantially during this period, and the parties believe the time is right for the Houseplant brand to develop independently while Canopy advances its focus on wholly-owned brands for the Canadian market. The relationship between Houseplant and Canopy started in 2018, well ahead of Canadian legalization. Since that time, Houseplant and Canopy worked together to pave the way in defining a premium cannabis experience in a new market. During the course of their relationship, Houseplant has become a popular consumer brand in Canada and is currently a top 10 brand in the premium cannabis market in Ontario. Read More (Newswire)

Aurora Cannabis continues board revamp, installs ex-Pfizer executive. Aurora Cannabis (ACB) expanded its board and installed Theresa Firestone, a senior health-care executive, as an independent director. Firestone joins Aurora after overseeing the launch of Shoppers Drug Mart’s medical cannabis business. Shoppers, owned by supermarket giant Loblaw Cos., is the largest pharmacy chain in Canada. Previous to Shoppers, Firestone held senior roles at pharmaceutical and biotechnology firm Pfizer, including acting as regional president, Asia, according to her LinkedIn profile. Aurora chair Ronald Funk said in a statement that Firestone “brings to us extensive expertise in healthcare management and pharmaceuticals, global business restructuring, new business development and a proven ability to lead and manage change”. Read More (Marijuana Business Daily)

GrowGeneration signs asset purchase agreement to acquire chain of hydroponic garden centers. GrowGeneration (GRWG) entered an asset purchase agreement to acquire HGS Hydro, the nation's third-largest chain of hydroponic garden centers, with six stores across Michigan and a seventh store slated to open in the fall of 2021. This transaction is expected to close before the end of fiscal year-end 2021. Founded in 2015 by Rocky Shaeena, HGS Hydro is the largest chain of hydroponic garden centers in the state of Michigan and generated approximately $50 million in revenue in 2020. When completed, the transaction will also bring the total number of GrowGen hydroponic garden centers in Michigan to 14 and the total number of stores to 65. Read More (GrowGeneration)

Clever Leaves and Biopharmaceutical Research Company to partner for landmark cannabis research study. Clever Leaves Holdings Biopharmaceutical Research Company announced a joint partnership with the intent to study the DNA sequence variation of three Clever Leaves’ cannabis cultivars as part of their Project Change Lives campaign. Project Change Lives is the U.S.-based initiative sponsored by Clever Leaves, whereby the company has pledged to contribute up to $25,000,000 retail value of medical cannabis products to any eligible U.S. organization to help advance scientific research into the potential medical benefits of cannabinoids. By sponsoring Project Change Lives, Clever Leaves is offering to provide a historic amount of pharmaceutical-grade cannabis to leading research institutions in one of the most advanced pharmaceutical markets in the world. Read More (Yahoo!)

Verano to expand Nevada presence with $29 million acquisition of Sierra Well. Verano Holdings entered into an agreement to acquire all of the equity interests of WSCC, Inc., d/b/a Sierra Well, adding two operational dispensaries and an active cultivation and production facility in Nevada along with two real estate properties in Carson City and Reno. Both dispensaries are situated along busy retail corridors and just minutes from their respective city centers. Closing on the transaction is subject to customary conditions, contingencies, and approvals, including regulatory approval. The transaction is expected to strengthen distribution capability in Northern Nevada with the addition of an approximately 10,000 sq. ft. Reno cultivation and production facility, complementing active expansion at the Verano-affiliated cultivation facility in North Las Vegas. Read More (New Cannabis Ventures)

Harvest One eyes global expansion for new cannabis-infused products. With its 2018 acquisition of Dream Water, Harvest One (HRVOF) gained instant access to 30,000 North American retail outlets and an emerging e-commerce business. The brand already had gained considerable recognition by the time Harvest One acquired it and since then, Dream Water has added more than 11,000 new distribution points across the U.S. In February, the company signed a major Asian distribution agreement, gaining access to Golden River’s massive distribution network that includes retail partners across China and other Asian countries, e-commerce platforms with a total of over 500 million active monthly users and airlines. With its expanding portfolio of cannabis-infused topical creams and its plan to develop other innovative products that aid in sleep and relaxation under its acquired Dream Water brand, Harvest One demonstrates a strategy aimed at those exact consumer demands. Read More (Benzinga)

Bootstrapped edibles company Wana Brands on track to double markets served by year-end. Wana Brands which is currently in 11 states in the U.S., soon to be 12. The company is launching in Massachusetts in early September, according to co-founder and CEO Nancy Whiteman. With more agreements either signed or close to being signed, the company will be in 16 states by the end of the year or early 2022. In addition to its U.S. footprint, Wana has market reach in Canada through its manufacturing partnership with Indiva (NDVAF). Wana has approximately 45% market share in the gummy space in Canada. Through that partnership, Wana has been able to bring its U.S. products to the Canadian market, and it will be looking to introduce more innovative products to Canada over the next six to eight months. Read More (New Cannabis Ventures)

Lowell Farms looks to leverage its brand power in California and beyond following transformative M&A. Lowell Farms has a widespread distribution reach in California, reaching up to Tahoe and Mammoth and down to San Diego. The company operates 15 routes per day, some running five days a week and others once a week. In total, Lowell Farms serves about 85 percent of licensed retailers in the state, according to Lowell Farms CEO Mark Ainsworth. The company is also preparing now for the eventuality of federal legalization and cross-border transactions. Lowell Farms has made acquisitions and infrastructure decisions that will help it be ready for that future, rather than waiting and being months behind other operators. The company is taking its Lowell Smokes brand to Illinois and Massachusetts through a licensing agreement with Ascend Wellness Holdings. Read More (New Cannabis Ventures)

Marijuana industry veteran Kris Krane leaving 4Front Ventures. Kris Krane, co-founder of 4Front Ventures (CNXXF) and president of Mission Dispensaries, is stepping down after nearly 11 years with the Arizona-based multistate operator. The transition was months in the making, according to a news release, with Krane staying on as strategic adviser. 4Front doesn’t plan to immediately fill Krane’s post as president of Mission Dispensaries. Krane said in the release: “In the last 11 years, we went from a few people in a room with an idea, to building a national, vertically integrated cannabis operator with operations and facilities in strategic medical and adult-use cannabis markets, including California, Illinois, Massachusetts, Michigan and Washington.” He further continued: “I feel incredibly fortunate to have played an instrumental role in 4Front’s journey.” Read More (Marijuana Business Daily)

Kanabo to be Europe's biggest public cannabis business after takeover. Kanabo said that it had agreed terms to buy the European operations of Materia. Exact terms weren't disclosed but Kanabo said the deal would be paid for through shares and subject to performance-related goals. Materia owns a cannabis processing plant in Malta and a wholesaling business in Germany, which is the largest market for legal marijuana in Europe. Materia's Malta plant has contracts with around 20 producers globally and is currently vetting them. In a statement to the stock market, Kanabo's chief executive Avihu Tamir said: "Together with Kanabo's R&D and commercialization capabilities, I expect this enlarged group to become the biggest public cannabis company in the UK and EU and puts us in a unique position as the multibillion pound medicinal cannabis market begins to grow in Europe." Read More (Yahoo)

Flora Growth to partner with Avaria to distribute award-winning pain cream brand KaLaya. Flora Growth has signed a non-binding Letter of Intent to form a joint venture with Avaria, the manufacturer and owner of KaLaya – an award-winning pain cream distributed nation-wide across Canada. Through the JV, Flora Growth will manage registration, sales, and distribution of KaLaya products in Colombia, Mexico, and other LATAM countries, while Avaria will supply finished product to the JV. Further, Flora Lab will work to produce KaLaya’s CBD-infused products using cannabis from Flora’s cultivation facility. These products are expected to be distributed across LATAM using Flora Lab’s established distribution channels, with the aim of exporting to the U.S. market, where Avaria is currently launching the KaLaya brand. Read More (Technical420)

IM Cannabis expands position in Israel with $4.6 million acquisition. On July 28, 2021, IMC Holdings concurrently executed definitive share purchase agreements to acquire all of the outstanding ordinary shares of each of: 1) Pharm Yarok, a leading medical cannabis pharmacy located in central Israel, 2) Rosen High Way, a trade and distribution center providing medical cannabis storage, distribution services and logistics solutions for cannabis companies and pharmacies in Israel, and 3) HW Shinua, an applicant for a medical cannabis transportation license from the Israeli Medical Cannabis Unit. The aggregate consideration for the Acquisition is approximately $4.6 million1 in cash, of which $1.3 million shall be invested in IMC in consideration for IMC’s equity by the shareholders of Pharm Yarok, Rosen High Way and HW Shinua. Read More (New Cannabis Ventures)

Pure Extracts receives sales license from Health Canada. Pure Extracts Technologies announced that its wholly owned subsidiary, Pure Extracts Manufacturing, has received approval from Health Canada to amend its license to permit the sale of cannabis extract products to provincially authorized distributors and retailers nationwide as well as to holders of licenses for the sale of medical cannabis extracts. This approval is the result of an intensive review by Health Canada of Pure Extracts’ internal systems, processes, products and packaging. The company’s purchase orders from British Columbia, Alberta, Saskatchewan and Ontario are currently being fulfilled by its distribution partner, thus having its own sales license will allow Pure Extracts’ products to eventually reach all provincial and territorial jurisdictions across Canada without the help of an intermediary. Read More (GlobeNewswire)

Cannabis companies looking to grow have more options than ever. Josh Genderson, CEO of Holistic Industries, which operates in six states plus Washington DC didn’t plan to take his medical marijuana business national, but his first success highlighted the opportunities that awaited. Genderson scaled Holistic Industries by winning licenses in limited markets and establishing regional presence to build brand recognition. Success bred capital raises that have allowed Holistic to add M&A to its scaling toolbox, but securing licenses remains central to its strategy. Adam Berk, the founder of food-delivery service company Osmio, which became Grubhub, focused on establishing brands, proving them in a tough market and then taking them into other states through M&As. The arrival of COVID-19 compelled Berk to update his strategy. Read More (Marijuana Business Daily)

Cannabis pharmaceuticals are hopeful as senate drafts bill to legalize marijuana. As U.S. Senate leaders discuss a draft of a bill to legalize marijuana on a federal level, giants in the cannabis industry are preparing for what could be coming next. If passed, the Cannabis Administration and Opportunity Act would remove marijuana from the Controlled Substances Act, expunge federal convictions for nonviolent marijuana offenses and establish a way to tax marijuana. It would also give cannabis pharmaceutical companies, like the Tilray (TLRY), a chance to shine in the U.S. Tilray CEO Irwin Simon told Yahoo Finance: “I see over the next 18-to-24 months that cannabis in some format will have legalization.” Read More (International Business Times)

EARNINGS

Greenlane pre-announces Q2 revenue at $34.5 million. Greenlane Holdings (GNLN) announced preliminary financial results for its second quarter ended June 30, 2021 with estimated net sales of approximately $34.5 million. The company also anticipates gross margin of 21% to 22% and total cash balance of approximately $11.5 million. Primarily due to headwinds created by uncertainty in supply chain and lingering impacts of Covid-19, the company suspended its illustrative pro forma outlook provided on March 31, 2021, for the calendar year ending December 31, 2021, and expects to reestablish a pro forma outlook at a later date. Greenlane continues to expect the proposed merger with KushCo Holdings (KSHB) to close in the third quarter of 2021, subject to the satisfaction or waiver of all remaining conditions in the agreement, including the receipt of all necessary approvals.” Read More (New Cannabis Ventures)

CAPITAL MARKETS

Projected June cash levels are high suggesting continuing M&A acceleration. It’s no secret that 2021 has been a record year for the U.S. Cannabis M&A activity and a robust year for the U.S. cannabis capital raises. The graph shows YTD equity raises (dark green bar) and debt capital raises (light green bar) for nine of the largest MSOs. The orange line on the graph shows projected June cash balances. Viridian started with beginning of the year cash, added capital raises, subtracted the cash component of both closed and pending acquisitions and added actual free cash flow for Q1 and projected free cash flow for Q2. The blue line shows projected mid-year cash balances as a percentage of market cap. High cash levels and relative cash levels suggest continued strong M&A and capital spending levels for the remainder of 2021 and beyond. Read More (Viridian Capital Advisors)

Source: Intro-act, Viridian Capital Advisors

Schumer's pot legislation could spark up cannabis IPOs on Wall Street. A bill introduced by Senate majority leader Chuck Schumer would remove cannabis from the Controlled Substances Act, a process known as descheduling. In doing so, lawmakers would open the door to a host of financial services long denied to the industry. Banks and other financial institutions—including stock exchanges—avoid doing business with the U.S. marijuana companies in large part because of federal anti-money laundering laws that criminalize financial transactions tied to illegal activity. But a legislative overhaul may help pot companies to go public in the U.S., either by giving banks leeway or changing the drug's legal status. That could set up a crucial exit option for privately backed cannabis companies, ending the need for workarounds like listing shares in Canada or banking with state-chartered credit unions. Read More (PitchBook)

MEDICAL CANNABIS

Congressional lawmakers push marijuana protections for all states. An amendment to protect all state and tribal marijuana programs from federal interference now has 15 cosponsors after its bipartisan proponents circulated a letter to build support. But a Republican opponent of reform is pushing a dueling proposal to end a more modest, longstanding rider that’s provided protections for medical cannabis states alone. Meanwhile, Rep. Doug LaMalfa (R-CA) is taking the unusual step of filing a competing measure that would cease federal protections for states with medical cannabis legalization on the books—including his own—that have been in place and renewed annually on a bipartisan basis since 2014. Read More (Marijuana Moment)

Georgia announces winners of six medical marijuana licenses. At long last the Georgia Access to Medical Marijuana Commission chose six companies that will be allowed to grow, manufacture and sell medical marijuana oil capped at 5% THC. Each license holder will be allowed to open five dispensaries. Botanical Sciences and Trulieve GA (TCNNF) won Class 1 Production Licenses which allows for up to 100,000 square feet of cultivation space. FFD GA Holdings (Fine Fettle Dispensary), Theratrue Georgia, Natures GA and Treevana Remedy were awarded a Class2 License which permits them to cultivate cannabis with 50,000 square feet of canopy. Read More (Cannabiz media) and More (Marijuana Business Daily)

Source: Intro-act, Cannabiz Media License Database, Cannabiz Media

Public backs medical marijuana, South Carolina polls suggest. Is that enough to convince lawmakers? Next year, South Carolina lawmakers will debate and possibly vote to join nearly 40 states that legalize some sort of medical marijuana. In this case, for use in oils and creams prescribed by licensed doctors for people with some of the most-serious and debilitating diseases and health problems. The state’s survey of South Carolina’s 46 state senators found a majority, if not all, senators want to have the debate. Yet, in addition to the bill’s 16 sponsors, three said they were supportive or leaning toward voting for it. Eleven said they were still studying the bill or hadn’t decided, while some of them acknowledged the public support and the health benefits but wanted to see changes. Five said they were likely to vote against and one declined to comment. Read More (Johnson City Press)

Mississippi lawmakers drafting medical marijuana measure. A Mississippi Senate committee is close to finishing draft legislation to legalize medical marijuana, two months after the state’s highest court struck down a voter-approved, business-friendly bill, Lt. Gov. Delbert Hosemann said. The development leaves open the possibility that Gov. Tate Reeves could call a special session later this summer to address the issue, according to WAPT-TV in Jackson and other media. The governor might feel pressure to do so after voters in the Deep South state approved MMJ legalization by an overwhelming margin at the ballot box in November. The measure, however, isn’t expected to be nearly as pro-business as the voter-approved version. Full details of the potential Senate bill weren’t disclosed. Read More (Marijuana Business Daily)

CBD/HEMP

Cannabis Administration And Opportunity Act: what the proposed federal cannabis laws would mean for hemp. Senators Chuck Schumer (D-NY), Ron Wyden (D-OR), and Cory Booker (D-NJ) released the discussion draft of historic federal cannabis legalization legislation, the Cannabis Administration and Opportunity Act (CAOA). The CAOA would not only end cannabis prohibition but would also establish a regulatory framework for cannabis under the U.S. Food and Drug Administration (FDA) and the Alcohol and Tobacco Tax and Trade Bureau (TTB). It also includes comprehensive restorative justice provisions, including grants, loans, and other funding programs for disadvantaged and minority businesses, record expungement, petitions for resentencing, and other measures intended to repair the decades of harm caused by the War on Drugs. Read More (JD Supra)

Market participants report increased CBD sales on demand for delta-8 THC, but prices continue to slide. July month saw continued erosion in wholesale hemp cannabinoid product prices for the most part. Crude CBD Oil and Broad Spectrum CBD Distillate were the only extracted hemp cannabinoid products to see price rises in July, but rates for each remain well below those observed just a few months ago. Observed rates for Delta-8 THC distillate have also resumed a downward trend in the face of consistent demand. July month’s observed average per-kilogram price was down 12% from June. Individual transactions ranged from $800 per kilogram to $1,600 per kilogram, with both the low and high ends of the range down from last month. Read More (Hemp Benchmarks)

Source: Intro-act, New Leaf Data Services, Hemp Benchmarks

CBD industry needs regulation to bring legitimacy. When it comes to CBD, entrepreneurs would be well served to start with the end in mind. The foreseeable outcome is federal regulation – just like any other consumed food or dietary supplement on the market. While it is understandable that CBD manufacturers would prefer to run their businesses without any government intervention, being left unchecked has made the sector vulnerable to unscrupulous behavior. Without regulation in place, anyone can sell CBD products. If regulatory history has taught us anything, it is that when it comes to problems with health and wellness supplements, regulation often stimulates improvements in public health. In addition, regulation brings legitimacy to the industry, which is just what the industry needs to spur the next big surge of confidence in CBD. Read More (Hemp Industry Daily)

Here’s how Delta-8’s popularity is dividing NC’s fledgling hemp industry. One of the hottest new cannabinoids on the market is dividing North Carolina’s fledgling hemp industry. Enter Delta-8 THC, otherwise known as “Weed’s Little Brother.” It’s the less-potent, less well-known cousin of Delta-9 THC, the chief psychoactive compound in marijuana, and it’s a booming business, especially in states like North Carolina, where marijuana remains illegal. Proponents say Delta-8 is a safe and legal alternative for consumers seeking an intoxicating buzz thanks to the 2018 Farm Bill that legalized hemp and its derivatives. But critics question how legal it is, and believe it’s a way to skirt federal law that currently bans Delta-9. Given the regulatory gray area, some local hemp farmers are steering clear. Read More (WRAL TechWire)

Consumer brands coalition steps up CBD pressure. A coalition of consumer brands that includes Coca-Cola, PepsiCo and Kellogg is appealing to the U.S. health regulators to get going on regulations to allow over-the-counter CBD. The July 22 letter from the Consumer Brands Association argues that the current U.S. policy on CBD “is not working” because CBD is not allowed in foods, drinks and dietary supplements, but such products are nonetheless commonly sold by companies flouting regulations from the U.S. Food and Drug Administration. The group wrote: “FDA inaction is resulting in a marketplace full of CBD-containing products produced in establishments that escape FDA regulation.” Read More (Hemp Industry Daily)

Hemp having a moment as farmers try to grow niche crop into $1-billion industry. The southern Alberta farmer has been growing hemp for 12 years, and in the early days, the distinctive odor that wafts from his fields when the crop is in flower would invariably catch the attention of area residents. According to Health Canada, which licenses and regulates the industrial hemp industry in this country, there were about 22,000 hectares (50,000 acres) of hemp seeded in Canada in 2020, up from just 2,400 hectares (5,900 acres) in 1998. Canadian hemp exports exceeded $110-million in 2019, and Manny Deol, executive director of the non-profit Alberta Hemp Alliance says he believes this country could have a $1-billion industry by 2030, if it does everything right. He says investors appear to think so too, given the number of new processing facilities recently constructed or proposed. Read More (Yahoo!)

Concentrated CBD? THC-O? As states limit delta-8 THC, industry operators plan next steps. As state limits on hemp-derived delta-8 THC begin to impact sales for product manufacturers and retailers, businesses are considering how they will make up the gap. Delta-8 THC has taken the industry by storm over the past 18 months, as manufacturers, stuck with a glut of low-priced CBD distillate and isolate, synthesized the product into the popular intoxicant. Because delta-8 THC is being banned specifically, manufacturers are making a derivative substance that isn’t barred, James Stephens, a chemical engineer and microbiologist and founder of Iron Light LLC in Missoula, Montana said. He continued: “It’s the same kind of game you see with a lot of the designer drug laws. Remember all the synthetic cannabinoids that were on the market?” Read More (Hemp Industry Daily)

Hemp included in New York program backing fiber production. Hemp is now included in a New York state program aimed at supporting fiber-based textiles. A new law put hemp, wool, alpaca, cashmere and linen in the state’s Grown and Certified Program, from which they can receive seals of approval. The law builds on an existing program designed to develop local agricultural supply chains in the state and promote New York farm products. The expansion of the Grown and Certified Program is part of a strategy to promote the state’s fiber industry through marketing and continuing infrastructure development, said Assemblywoman Donna Lupardo. She continued: “It is an important step that I hope adds momentum to a new and exciting ‘farm to fashion’ movement building in NYS.” Read More (HempToday)

Washington will certify extracts produced for sale in other states. Washington state’s Department of Agriculture will begin to certify hemp extracts, in a move officials say will help producers sell products in other states. Under the new program, processors who want to produce hemp extract for use as a food ingredient may apply for a hemp extract certificate that assures compliance with Washington’s inspection and good manufacturing practices requirements. But those products may only be sold out of state. The Industrial Hemp Association of Washington, which backed the new law, had said processors were being shut out of other states because of the lack of a formal hemp production program. But the new law also affirms that CBD and other hemp cannabinoids are prohibited in food in Washington until the U.S. Food & Drug Administration (FDA) clarifies the status of hemp extracts in food. Read More (HempToday)

Idaho preparing hemp plan for USDA approval. Idaho aims to submit its hemp plan to the U.S. Department of Agriculture by September 1. First, Idaho State Department of Agriculture (ISDA) will deliver the plan in early August to Gov. Brad Little and the Idaho State Police — involved because the 2018 Farm Bill requires it and the state’s new law addresses transport — for review and approval. Draft administrative rules and other supporting documents will be included. The Idaho Legislature this year approved industrial hemp production, to be overseen by ISDA. The Legislature in 2022 would review related administrative rules. First plantings could come in the spring of 2022. The law allows production and transport of hemp containing tetrahydrocannabinol up to the 2018 Farm Bill’s limit but does not allow in-state possession or sale of THC-containing products. Read More (Capital Press)

Oregon launches hemp field inspections to crack down on illicit cannabis operations. Agents from the Oregon Department of Agriculture (ODA) will visit hemp fields across the state this summer to determine whether the operations are legitimate, and Mason Walker, CEO of East Fork Cultivars, said this is just one component of what he calls a “very large, sweeping bill” that contains several regulatory changes for Oregon’s cannabis and hemp farmers. Following Gov. Kate Brown’s signing of House Bill 3000, the Oregon Liquor Control Commission (OLCC) held a special meeting July 19 to approve temporary rules that allow the agency to work with the ODA to begin field testing of the state’s registered hemp farms to determine, based on the plants’ tetrahydrocannabinol (THC) content, whether the farmers are growing legitimate hemp or illicit cannabis disguised as hemp. Read More (Hemp Grower)

Montana hemp farmers awarded $65 million for broken contracts. More than two dozen Montana hemp farmers have been awarded $65 million in damages from Canadian and the U.S. businesses and investors who promised to pay them up to $700 per acre for hemp grown in 2018, then failed to pay. A jury gave 25 farmers the second-highest civil judgment in Montana history, including $56 million in punitive damages and another $9 million in compensatory damages for causing “mental suffering, mental anguish, grief, worry and disappointment or the like.” The hemp defendants ordered to pay were: 1) USA Biofuels ($10 million), 2) Eureka 93 (LXLLF) ($10 million), 3) Vitality Natural Health ($10 million), 4) Surety Land Development ($10 million), 5) Kent Hoggan ($5 million), 6) Owen Kenney ($5 million), 7) Corey Shirley ($5 million), and 8) David Rendimonti ($1 million). Read More (Hemp Industry Daily)

Hemp goes 'hot' due to genetics, not environmental stress. A new Cornell study—published July 28 in the journal Global Change Biology-Bioenergy—finds no evidence that stress on hemp plants increases THC concentrations or ratios of CBD to THC. Larry Smart, senior author of the study and professor in the horticulture section of the School of Integrative Plant Science in the College of Agriculture and Life Sciences said: “With this research, growers should feel some comfort that stresses do not seem to have a strong effect on changing the ratio of CBD to THC." The study further proves that genetics, rather than environment, determine the THC content and CBD to THC ratios in hemp. Read More (Phys.org)

CBD varieties don’t perform to COAs, Georgia researchers say. The hemp industry needs a robust certification system that will give growers more confidence in their genetics purchases, according to a study from the University of Georgia’s Institute of Plant Breeding, Genetics and Genomics (IPBGG). The research found that many of the 22 hemp varieties studied expressed THC and CBD levels inconsistent with those stated on certificates of analysis (COAs). Several had more THC, and less CBD, than levels indicated on those certificates, which breeders and brokers use to market the genetics. The researchers wrote: “Given the variability we found both among and within accessions, some sort of standardization is needed so that producers can be confident in the material they receive.” Read More (HempToday)

RETAIL

U.S.-based Cookies plans flagship cannabis store in Toronto this year. Gage Growth will work with Noya Cannabis to launch Cookies products exclusively in Ontario, Canada, before expanding into other provinces, according to a news release. In the announcement, Gage said it expects to open a flagship retail store in Toronto by the end of this year. Gage signed an agreement with Cookies last November to incorporate Cookies Retail Canada Corp, or Cookies Canada. Under the deal, Gage received 80% of the new company and as part of a license agreement with California-based Cookies signed in April 2019, Gage holds the rights to sell Cookies-branded products in Ontario, Canada’s largest marijuana market, per a recent regulatory filing. Read More (Marijuana Business Daily)

Lemonnade dispensary, part of Cookies family, coming to Denver. Denver has been a ripe market for Cookies, and the California-based marijuana company believes there's still plenty of juice to squeeze out here. Lemonnade, a growing branch of the Cookies family tree, opened in the Globeville neighborhood on Saturday, July 31, according to Cookies retail operations vice president Crystal Millican. The new dispensary, located at 4500 Washington Street, will be the first Lemonnade store in Colorado. The brand's licensing arm has been expanding into Colorado over the past year, with both a Cookies store in Denver and a popular wholesale operation launching in 2020, and another dispensary opening in June in Commerce City. Read More (Westword)

Pittsburgh has acquired the first drive-through medical marijuana pharmacy. Healing Research Center’s medical cannabis company has expanded to Robinson Township, offering the first drive-through to the Pittsburgh region Medical cannabis Clinic. The new drive-through dispenser, owned by Verano Holdings includes four different drive-through stalls. Healing Research Center Robinson Township is the second clinic by its name in the state, with the first clinic in Chester County. Healing Research Center partner Healing Center announced earlier this year that it had purchased a 50% stake and growth facility in Agronomed Biologics, which could expand four more locations in Pennsylvania. Read More (Pennsylvania News Today)

626 groups now qualify for upcoming lottery to win marijuana store licenses in Illinois after applications are rescored. The number of applicants qualified for the upcoming lottery for new marijuana store licenses in Illinois jumped to 626 — with 97% qualifying for social equity bonuses — as a result of a rescoring of their applications and lowering the qualifying score, state officials announced. The number marks a huge increase from the 21 applicants who were given perfect scores to qualify for a license lottery last year. Toi Hutchinson, the state’s senior adviser for cannabis control said: “You wanted as many people as possible to at least have a chance, so we’re very excited about making such a big jump.” Read More (Chicago Tribune)

Lantern expands on-demand recreational cannabis delivery to Grand Rapids. Lantern launched on-demand recreational cannabis delivery in Grand Rapids, becoming the first marketplace to offer delivery in Michigan's second largest city. Lantern has been serving Michigan consumers since October 2020 when it became the first platform to launch on-demand delivery in Detroit. Recreational consumers in Grand Rapids can now order their favorite products and brands directly from LanternNow.com and receive their orders in 60 minutes or less. Lantern's latest expansion will increase access to high-quality cannabis products, especially for consumers who live in municipalities that have opted out of permitting recreational provisioning centers. Read More (PR Newswire)

Apple platform offers another California marijuana company app. After changing its terms of service this summer, the Apple App Store has added at least three California marijuana company apps, starting with Eaze, then The Parent Co. and now Emjay. According to a news release, the app for marijuana delivery service Emjay debuted on the Apple platform on July 29, allowing cannabis customers to browse businesses’ MJ menus and place orders for deliveries in Los Angeles, San Diego and San Francisco. CEO Chris Vaughn said: “We’re thrilled to now be live on the App Store, be one of the first native iOS applications for cannabis shopping and to be able to provide a more convenient and seamless experience for our customers.” Read More (Marijuana Business Daily)

Arkansas to issue pot dispensaries last two licenses. State regulators decided that they will issue the two remaining medical marijuana dispensary licenses allowed under Arkansas' constitutional amendment, ultimately raising the state's total number of dispensaries to 40. Amendment 98, the constitutional change approved by voters in 2016, allows for up to 40 dispensaries spread across eight geographic zones in the state. Thirty-eight have been issued, and in February members of the state Medical Marijuana Commission declined to issue the remaining two on the basis that the applications had expired before the meeting. Three of the members on the commission in February have since been replaced by new appointees. Read More (Arkansas Democrat-Gazette)

Lottery for marijuana dispensary licenses delayed again in Rhode Island. Businesses hoping to win licenses to operate six new medical marijuana dispensaries in Rhode Island will be waiting longer. The lottery to award the coveted licenses won’t happen in the first week of August as expected, state regulators say, because the administrative appeal of one of the rejected lottery applicants continues. Now a lottery won’t be scheduled “until that appeal has run its course” Matthew Santacroce, chief of the Office of Cannabis Regulation within the Department of Business Regulation, said. How long that will be remains unclear, Santacroce said he may have a better sense of the timing of events “in a couple weeks,” after more meetings between lawyers for the DBR and the rejected applicant. Read More (The Providence Journal)

Government of the Northwest Territories wants online store. The Government of the Northwest Territories (GNWT) is hoping to boost sales and safe access to legal cannabis with an online presence, according to a request for expressions of interest (RFEI) posted on its open contracts site. The GNWT suggested that a business owner could sell and fulfill orders of products purchased from the NTLCC out of their own warehouse or directly from the NTLCC. It could be an existing retailer with an e-commerce platform, or a business strictly dedicated to mail-order—the sky appears to be the limit, as long as the website is restricted to people under 19 years old, won’t sell to certain restricted postal codes, and respects 30-gram transaction limits. Read More (Cannabis Retailer)

Proximity to marijuana retailers doesn’t influence young people’s intention to use cannabis. Researchers with the RAND Corporation and with the University of Southern California assessed the relationship between the density of marijuana retailers and subjects’ intentions to use either cannabis or tobacco in a cohort of young adults (ages 18 to 23) living in Los Angeles county. They concluded: “Our results suggest that young adults who lived in an area with a greater density of any type of outlet were not significantly more likely to report stronger intentions to use cannabis, e-cigarettes, or cannabis mixed with tobacco/nicotine in the future.” Read More (NORML)

PRODUCTS

Curaleaf International launches second medical cannabis flower product for the U.K. market. Curaleaf International (CURLF) announced the launch of its second range of medical cannabis flower products for the U.K. market. The new products are being manufactured in the U.K. and will be an extension to Curaleaf International’s existing range of medical cannabis flower and oil products. Antonio Costanzo, CEO, commented: “We are very pleased to extend our range of medical cannabis products for the UK market. As a market leader, Curaleaf International is focused on solving the key patient and physician challenges relating to the price, accessibility, and sustainability of medical cannabis products. Our vertically integrated supply chain and GMP manufacturing facilities here in the UK allow us to scale rapidly to meet growing patient demand.” Read More (Business Wire)

Organic produce shipper rolls out hemp baby greens mixes to food service and retail companies. Field Fresh Farms is among the first companies to go ahead with offering hemp baby greens as an ingredient in leafy greens salad mixes for food service and retail companies. The specialty, new-to-market product is certified organic through the U.S. Department of Agriculture and will be sold under the Beach Road Organics label. The company is developing product branding and retail packaging, which will be rolled out later this year, but raw product is available for food service. According to a company statement the hemp baby greens mix is touted to be “packed with nutrients,” containing omegas 3, 6 and 9, potassium and calcium, featuring “unique flavor profiles ranging from citrusy to earthy.” Read More (Hemp Industry Daily)

Jushi Holdings Inc. collaborates with actor Colin Hanks. Jushi Holdings (JUSHF) announced that it partnered with Colin Hanks to bring his handkerchief line, Hanks Kerchiefs, to select BEYOND / HELLO retail stores. The collaboration expands on Jushi’s vision for BEYOND / HELLO to work with new and like-minded partners to build the company's brand into a modern retail leader that blends exclusive and unique offerings with cultural experiences. The line of kerchiefs created by the actor, producer and director is now available for purchase at select BEYOND / HELLO dispensary locations, as well as online nationwide at Shop Jushi. In addition, a portion of each Hanks Kerchiefs sold will support several charities such as Homes for Our Troops, a nonprofit organization that builds homes for veterans. Read More (GlobeNewswire)

Competition rising over shelf space for hemp foods. Canada has long fed the world’s demand for hemp foods. Over the past three years, Health Canada has reported an average of 75,133 acres of industrial hemp production, with 48,045 (nearly 64%) of those dedicated to grain production. The president of the Canadian Hemp Trade Association, Ted Haney, is confident of seeing a 15%-20% increase in Canadian hemp by the end of this year, a development made more notable given a 37,540-acre decrease in Canadian cultivation from 2019 to 2020. As consumers increasingly notice hemp-based foods appearing on store shelves, competition for the dollars of hemp hearts consumers has been spurred. Read More (New Frontier Data)

Source: Intro-act, New Frontier Data

Marijuana vape manufacturers, retailers in limbo over long-delayed mail ban. Months of delay on the U.S. ban on shipping vape components has marijuana and hemp operators wondering if they should prepare for seismic shocks to their business models or proceed as usual and hope the ban never takes effect. The ban was supposed to kick in last spring, the result of a 2020 law that prohibits the U.S. Postal Service from shipping vaping products. The ban included products without nicotine and could eliminate direct-to-consumer vape shipping. But in April, when the USPS said it planned to publish details on enforcing the ban, the agency said it needed more time to review public comments. Read More (Marijuana Business Daily)

Exploring Twitter data on cannabis edibles. Scientific, economic, and social research on cannabis is occurring at a pace faster than at any other time in history. As technology advances, so do the ways in which researchers gather information. Twitter is relatively new to modern society, and it has become a valuable source of information on cannabis use, notably for a study on edibles. In 2016, researchers published a study in which they analyzed the content of Twitter messages relating to cannabis edibles. Their principal objective was to analyze Twitter users’ perception of edibles. In general, researchers found that the sampled Twitter users’ experiences with edibles were positive overall, with 56.8% of them relating a positive attitude compared to only 13.2% being negative. Read More (Extraction Magazine)

Cannabis pre-roll sales soar as Canadians share joints less during pandemic. Canadian cannabis users are doing a lot less puff, puff, pass during the COVID-19 pandemic, as people try to minimize their distance and contact with one another. Research commissioned by the Smiths Falls, Ont. company revealed that the pre-roll joint category grew by 48 percent across the entire market between January and May 2021. A report from the Ontario Cannabis Store shows almost $97 million of pre-rolls were sold between April 2020 and March 2021, up from $42.6 million between April 2019 and March 2020. Part of that sales increase is attributable to a significant rise in the number of cannabis stores, but Canopy Growth (CGC) says Canadians who feel that traditional 0.5 gram joints are too big for them to enjoy in one sitting, and who worry about passing germs along with joints, are factors as well. Read More (msn)

The future of cannabis and the beverage industry: an interview with Keith Villa. When asked about what effect could legalization have on the brewing industry? Keith Villa said: “It’s a mixed bag. Right now, you can’t mix cannabis and alcohol on a federal or state level. I don't see that changing anytime soon, even though people think you could get a really good buzz if you combine them. There's a cautionary tale that people should pay attention to from the early part of this century when Four Loco was the rage. They mixed high levels of caffeine and alcohol in a drink. It led to many people getting quite sick, and the FDA put out rules banning that. So, we should not rush into that until we know more, but there will be a boom of non-alcoholic beers with THC in them should the laws change. You can make those now in states where recreational cannabis is allowed.” Read More (Forbes)

How cannabis vaporizers are continuing to evolve. There’s controversy out there about who should be credited as the originator of modern-day herb vaporization, but research suggests the first ever e-cig was created in 1927 by Joseph Robinson. After that, the first “smokeless non-tobacco cigarette,” was created by Herbert Gilbert in 1963. And the first portable herb vaporizer, called the “Shake and Vape,” was created in 1993 by Eagle Bill Amato. Shortly after that, Storz and Bickel came out with the famous tabletop Volcano vaporizer in 2000. In 2003, Chinese researcher Hon Lik came up with modern e-cigarette technology that eventually birthed 510-threaded vape cartridge technology, and in 2007, Pax Labs—originally called Ploom—created a weed vaporizer that eventually led to the closed-loop system of proprietary cartridges, like the PAX Era for cannabis. Read More (Leafly)

SOCIAL

The first social media for cannabis patients launched. EcoCaNN, the first social media for medical cannabis patients, was launched officially in Israel. The app allows patients and their families to consult and to get assistance by the best professionals in the medical cannabis field, and to get specific answers to their questions 24/7. EcoCaNN is based on a free digital platform and the information in the app is protected, anonymous, and confidential. EcoCaNN was established by the international pharma company MediCane, which focuses on the research and development of medical cannabis-based pharmaceutical medicines. The app is part of MediCane's vision that promotes the accessibility of accurate information through the app that may benefit and assist in the treatment of those who are treated with medical cannabis, and also assist doctors and researchers in their R&D efforts. Read More (Calcalist)

For many cannabis consumers, home is where the grow is. Approximately 6% of cannabis consumers grow their own flower. Among those surveyed, more than six in 10 homegrowers were men. Some opt-in due to a lack of other sources (14%), or to grow strains which they otherwise could not find to purchase (35%). Quality is another key consideration. Nearly one-third (32%) grow to avoid worries about contaminates such as pesticides, while 44% feel that they grow better-quality flower than they could find elsewhere. For others, it is a matter of convenience (52%), or less expense (46%). Nevertheless, a larger majority of home growers (70%) report growing cannabis because they enjoy it as a hobby. Read More (New Frontier Data)

Source: Intro-act, New Frontier Data

INTERNATIONAL

Initiative to consolidate the global hemp industry is launched. Organizations from around the world are joining to form an international association to advance the interests of the hemp industry. The new body, as yet unnamed, will work to establish industry development priorities, and officially represent hemp stakeholders before global intergovernmental agencies, with a core first objective to remove hemp and hemp extracts from the 1961 UN Single Convention on Narcotic Drugs, said Daniel Kruse, president of the European Industrial Hemp Association, and one of the initiators of the global effort. The group intends to interface with international agencies such as the World Health Organization, the UN’s Committee on Narcotic Drugs; the Organisation for Economic Co-operation and Development; and the UN’s Food & Agriculture Organization (FAO) on matters related to that agency’s Codex Alimentarius, internationally recognized standards for food production and safety. Read More (HempToday)

Green and pleasant land? The future of cannabis use in the U.K. An interesting development was the announcement by British American Tobacco that it envisioned cannabis as part of its future business model as sale and use of cigarettes continues to decline. BAT bought a stake in Organigram (OGI) earlier this year, and has begun to fund research into a new range of adult cannabis products. What might the future look like, then, if cigarette sales continue to fall and other products are teed up to take their place? Vaping is very much part of the landscape now: there were around 11 million vapers worldwide a decade ago, but that number is today more like 50 million. And cannabis fits neatly into the vaping market: cannabidiol (CBD) liquid can be smoked in a vape easily and is sold as relieving anxiety and physical pain. Read More (msn)

Fall elections to sway momentum for Czech Republic’s legal cannabis reforms. The Czech Republic is making waves in the cannabis sector – and an upcoming national election may prove pivotal to its domestic industry. Other push factors are favoring medical cannabis: last year, a ruling that 90% of the cost of medical cannabis (of up to 30 grams per month) must be covered by insurance agencies drove further growth, and the first months of this year saw twice the amount of medical cannabis used in year-over-year comparison to 2020. The State Agency for Medical Cannabis in January reported that a total of 67 kilograms of medical cannabis had been prescribed last year (nearly a fourfold increase from 17 kg in 2019), and that the rolls of cannabis-prescribed patients increased from less than 500 in 2019 to 1,103 by last December. Read more (New Frontier Data)

Source: Intro-act, New Frontier Data, Expats.cz, State Agency for Medical Cannabis (SAKL)

Colombia boosts budding cannabis industry by removing ban on dry flower exports. Colombia gave the green light for exports of dried cannabis for medical and other industries, as the Andean country took another step to develop its marijuana industry, where progress has been slow despite high potential. President Ivan Duque signed a decree lifting a prohibition on exporting dried cannabis flower, a move seen as crucial by investors. The directive also allows for the expansion of sales of cannabis-based medicines and streamlines regulatory procedures. While Colombia has been hailed as a pioneer in regulating the possession, production, distribution, commercialization and export of seeds, plants and substances derived from cannabis - like oils, creams and extracts for medicinal purposes - investors have long complained about what they say is a tortuous export-approval process. Read More (Reuters) and More (High Times)

Israeli lawmakers rejected a bill to decriminalize marijuana and reclassify CBD as a food additive. Prior to the defeat, the coalition managed to get one crucial win, when the Knesset voted 64 to 50 against a bill calling for the government to express its sovereignty over all of Judea and Samaria. The coalition suffered a major defeat, when a draft bill to decriminalize the recreational use of up to 50 grams of cannabis for personal use and up to 15 seeds, while also reclassifying CBD as a food additive, failed to get a majority in the Knesset after the Ra’am Party decided to vote against the bill. The bill’s failure to pass means that the coalition would have to wait another six months until it could attempt to bring it to the Knesset plenum for a vote again. Read More (The Jerusalem Post)

CANNA SCIENCE

Is organic the way forward for the marijuana industry or is it just too expensive? A more significant percentage of cannabis producers think that the organic discourse comes from a selfish impulse. They believe that the consumer's desire only to use the cleanest buds is due to their demand for superior taste. However, on closer investigation, people are also seeking organic cannabis to advocate for healthier products that are safe for the planet. But the production of organic products costs more for both the producers and suppliers; it also doesn't have real-time advantages in the marketplace. Cannabis experts worry that their users may start looking for the "Organic" label on their buds like they do with other items they buy at grocery stores. Read More (Cannabis.net)

Some cannabis extractors are turning to contentious color-remediation process. A process commonly used in food and wine production – color remediation – is becoming increasingly popular in cannabis extraction. Manufacturers are looking to remove impurities, produce translucent extracts year-round and remove chlorophyll molecules that leave a “grassy” taste in rudimentary cannabis edibles. The extra step doesn’t cost much and can drastically improve the purity and clarity of extracts made with butane hash oil or ethanol solvents. But the process is not without detractors who say it is too often used to remediate old or inferior cannabis inputs. In addition to giving the extractor control over the color, remediation filtration can remove: 1) pesticides or other unwanted contaminants, 2) chlorophyll, 3) plant sugars, and 4) lipids. Read More (Marijuana Business Daily)

Source: Intro-act, Precision Extraction Solutions, Chem Tek, Marijuana Business Daily

TECHNOLOGY

Cannabis needs a tech-first approach. To improve the technological prowess of a company, it is important to realize there are necessary steps to prime the environment for technology to be successful in every organization. Most of this is centered around the organization’s decision-making process: 1) technology must have representation, 2) technology must have a seat at the decision-making table, 3) the decision-making process must be formal and managed, 4) technology must have an allocated budget, 5) technology tasks and projects must be formal and managed, 6) walk before you run, and 7) technology has to be part of your company strategy. Read More (CannabisTech)

Cannabis cultivation is all about control. With cannabis cultivation, novices may think it’s a matter of putting a seed in the ground and growing a plant at the whims of mother nature. However, those who’ve attempted to grow their own cannabis know it’s quite a bit more complex than that. Whether you’re growing six plants or 6,000 – consistent, precise conditions and environmental controls are the keys to high-quality cannabis. Fortunately, today there are new and emerging tech tools to help at all levels of cultivation, from personal use to commercial production. In commercial cannabis production, many factors can negatively impact the final outcome of the crop. Thanks to the development of powerful sensors, commercial producers can monitor their investment 24 hours a day, seven days a week, from anywhere. Read More (CannabisTech)

Options in commercial automated grow tech for cannabis. 1) Agrify offers premium, fully integrated indoor grow solutions for growing consistent cannabis, hemp, and other high-value crops at the lowest possible cost. 2) While attempting to disrupt the climate impact of traditional cultivation techniques, Agdaptive provides growers with data-driven platforms in the correct size. 3) The American Cannabis Company provides end-to-end consulting and product solutions for medical, adult-use, and low-THC regulated cannabis markets both nationally and internationally. 4) Freight Farms is dedicated to making fresh food accessible to anyone, anywhere, any time, with a complete platform of products and services to empower a global community of partners. Read More (CannabisTech)

Cleanroom technology for cannabis production. Many cannabis and hemp producers have accepted that as a consumable agricultural crop, used both for medicinal properties as well as a recreational intoxicant; there will be very high standards set for cannabis and hemp production. Improper HVAC systems can encourage mold and fungus growth. Even the humans working with the plants can carry potential hazards into the grow room. Fortunately, there are several ways to prevent crop loss and keep production facilities free and clear of contaminant which includes: 1) personal protective equipment, 2) air showers, 3) CO2 spray treatments, 4) HVAC, room pressure and air filtration, and 5) air purification systems. Read More (CannabisTech)

World renowned extraction guru, Dr. John MacKay, opens first institute of extraction technology. Dr. John MacKay’s Institute of Extraction Technology partners alongside the CBD Expo Tour to offer courses on each stage of the extraction process. The first full-day intensive course will be offered on August 26th, 2021 at the DoubleTree by Hilton Hotels, one day prior to MACE Media Group’s Original CBD Expo SOUTHEAST & Delta 8 Conference. Attendees of the course will get hands-on experience with actual extraction and cannabinoid testing as well as free admission to The CBD Expo SOUTHEAST. Student will have the opportunity to receive a Certificate of Attendance for Merging Business and Science of Extraction & a Certificate of Attendance and Passing Competency Test. Read More (Extraction Magazine)

LEGAL & IP

Three Oregon hemp businesses accused of mistreating seasonal workers. Three Oregon hemp companies are being sued by more than a dozen seasonal workers who say the businesses required them to sleep on dirty floors and use the bathroom outside. Those are among the health-and-safety violations alleged in a lawsuit filed by 17 migrant workers suing West Coast Growers, Topshelf Hemp and Fire Hemp, all managed by the same man in Grants Pass, Oregon. Among the workers’ charges: 1) the companies withheld wages and required them to work without lunch or rest breaks during the 2020 harvest, 2) they had to share a trailer with a single bed, 3) they were lodged in an “abandoned, dilapidated, and unsafe” empty house without heat or running water, and 4) they shared an outdoor portable toilet that wasn’t emptied. Read More (Hemp Industry Daily)

Arbitration panel awards Jushi Holdings $14.4 million in Harvest Health & Recreation Florida subsidiary dispute. Jushi Holdings (JUSHF) announced that the American Arbitration Association awarded $14,364,920.10 to Jushi FL SPV, a subsidiary of Jushi Holdings, in its dispute against San Felasco Nurseries, a subsidiary of Harvest Health & Recreation (HRVSF). The interim award consists of $10,637,012 in damages, plus $3,727,908.14 in pre-award interest (accrued at a rate of $3,497.099 per day) and post-award interest at a rate of 12% per annum. The Interim Award is based on breach of contract and breach of implied covenant of good faith claims brought by Jushi against San Felasco in October of 2018. In its order, the Panel found that San Felasco improperly terminated its franchise agreements with Jushi FL without cause and in bad faith. Read More (New Cannabis Ventures)

New Mexico marijuana operator prevails in drawn-out legal case. In what seems like a mere formality at this point, a New Mexico appellate court upheld a 2018 lower court ruling allowing the state’s largest medical marijuana operator, Ultra Health, to open two new dispensaries. Ultra Health went ahead and opened the two new retail outlets after prevailing in a lower, district court case in October 2018, the Santa Fe New Mexican reported. In fact, Ultra Health has opened 16 dispensaries since that ruling and now operates 25 statewide, according to a company news release. Back in 2018, the New Mexico Department of Health refused to approve the two dispensaries, one on the grounds it was located inside a senior living facility and another because of stocking issues. Read More (Marijuana Business Daily)

Massachusetts medical cannabis dispensary sued over $21 million debt. According to the Boston Business Journal, Ermont is being sued for $21.8 million by Teneo Funds SPVi. Teneo requested in its lawsuit that the court halt any transfer of assets by the dispensary and that a receiver be appointed to run the medical marijuana business. The lawsuit follows Teneo’s acquisition of the debt from Ermont’s former creditor, Tilt Holdings (SVVTF), which sold the debt to Teneo in February for $1.25 million and a portion of future collections – a fraction of the overall value. Tilt Holdings acquired the debt in 2018 and extended a line of credit to Ermont. Read More (Marijuana Business Daily)

Lawsuit that could have delayed Illinois cannabis business licensing dropped. According to the Chicago Sun-Times, Sozo Illinois dropped the federal lawsuit it filed July 16 claiming that social equity rules for the marijuana permits are “fundamentally unfair” and requesting that the licensing process be halted. Illinois authorities are scheduled to hold three lotteries starting July 29 to determine the winners of the 185 business licenses. The move comes after social equity advocates pleaded with Sozo Illinois to drop the suit during a news conference, calling the action “hurtful to social equity and racial equity” in the marijuana industry. Sozo issued a statement supporting social equity, but the company remained critical of the law overseeing the licenses being issued. Read More (Marijuana Business Daily)

CANNA FACTS

Source: Intro-act, Akerna’s 2021 Cannabis Industry Mid-Year Review

ETF SPOTLIGHT

THCX The Cannabis ETF (NYSEARCA: THCX)

THCX: the pure-play ETF solution for investing in cannabis. Supported by favorable regulatory trends, increasing use cases and growing public acceptance, cannabis is one of the fastest growing current investment themes. To put the opportunity into perspective, the global cannabis market is estimated to reach $630 billion by 2040. THCX was constructed to make investing in cannabis easier by helping investors get exposure to a basket of stocks that are expected to benefit from growth of the hemp and legal marijuana industries. THCX is a fund focusing mainly on North American cannabis companies, specifically in the U.S. and Canada. The initial universe of Index constituents consists of publicly listed Cannabis Companies that are involved in the legal cannabis industry. “Cannabis” is defined as (i) marijuana (or products derived from marijuana) and (ii) hemp (or products derived from hemp, which includes CBD-based products (i.e., products that contain cannabidiol).

Monthly Market Performance (Month Ending 7/31/2021)

Quarterly Market Performance (Quarter Ending 6/30/2021)

Top 10 Holdings (updated as of 7/30/21)

For more information on THCX visit: https://thcxetf.com/fund/

CANNA CAPITAL MARKET TRENDS

Source: Intro-act, Viridian Capital Advisors

CANNA PRICES – WEEKLY TREND

Source: Intro-act, Cannabis Benchmarks Price Index

Source: Intro-act, Cannabis Benchmarks Price Index

Source: Intro-act, Cannabis Benchmarks Price Index

CANNA BRANDS AND PRODUCTS RANKING – STATE IN FOCUS: BRITISH COLUMBIA

Source: Intro-act, Headset

Source: Intro-act, Headset

Source: Intro-act, Headset

Source: Intro-act, Headset

Source: Intro-act, Headset

Source: Intro-act, Headset