CANNA NEWS

STATE AND REGULATORY NEWS

The U.S. House passes MORE Act, again. The U.S. House lawmakers passed federal legislation to remove cannabis from the Controlled Substances Act on April 1, marking the second time broad reform has received majority support in the chamber. In addition to ending the federal prohibition of cannabis, the Marijuana Opportunity Reinvestment and Expungement (MORE) Act would provide expungements for those with cannabis offenses and impose a federal tax on cannabis to fund programs for those adversely affected by the drug war. House members voted, 220-204, almost entirely along party lines, to pass the bill. Sponsored by U.S. House Judiciary Committee Chairman Jerry Nadler, D-N.Y., the legislation, House Bill 3617, was first introduced in July 2019 and was passed by the full lower chamber via a 228-164 vote in December 2020. The MORE Act now heads to the Senate, where the previous version of the bill stalled in 2020 with then-Majority Leader Mitch McConnell, R-Ky., in the driver’s seat. Read More (Cannabis Business Times) and More (Online Weed News)

Federal marijuana legalization bill would add billions in revenue and reduce prison costs, congressional budget office says. It estimated that the policy chance would mean that time served in federal prison would be collectively reduced by 37,000 person-years for current and future inmates. CBO predicted that the Bureau of Prisons would save about $800 million because there would be fewer people in prison amid sentence reductions. By restoring the rights of people who have been criminalized over cannabis, the office said there would be increased direct spending on federal benefits, amounting to $344 million over the next decade as formerly incarcerated people become eligible for various programs. CBO further addresses money that would be appropriated through the Opportunity Trust Fund that would be established under the legislation. It estimates that about $7.8 billion would go to the fund over the next decade. Read More (Marijuana Moment)

Source: Intro-act, CBO, Marijuana Moment

The U.S. Senate passes cannabis research bill, but House must weigh in. The U.S. Senate gave unanimous approval to a bipartisan bill to “cut the red tape” that stalls scientific research into the medical properties of cannabis and cannabidiols. According to a news release by the U.S. Sen. Dianne Feinstein, a California Democrat, the Senate approved S. 253 on a voice vote. The measure – which would authorize the U.S. Food and Drug Administration to study cannabis products – now heads to the U.S. House of Representatives for consideration. S. 253 was co-sponsored by Iowa Republican Sen. Chuck Grassley and Hawaii Democrat Brian Schatz, who both lauded the bill’s success. Grassley said in the release: “This bipartisan bill is critical to better understanding the marijuana plant and its potential benefits and side effects.” Read More (Marijuana Business Daily)

Legislation pending in Congress could authorize clinical medical cannabis trials for veterans. Legislation on Capitol Hill would allow for research on cannabis as a treatment for veterans with chronic pain and post-traumatic stress disorder (PTSD)—if it can first pass out of committee. Senate Bill 1467 and House Resolution 2916, known as the “VA Cannabis Research Act of 2021,” would require the Secretary of Veterans Affairs to conduct a series of clinical trials on the effects of cannabis on patients with these conditions. The Senate version of the legislation was introduced in April 2021 by Sen. Jon Tester, D-Mont., and has not seen any movement since a June 2021 hearing by the Committee on Veterans Affairs. S.B. 1467 has picked up one cosponsor, Sen. Dan Sullivan, R-Alaska. Read More (Cannabis Business Times)

Positive drug tests among the U.S. workers hit two-decade high. The percentage of working Americans testing positive for drugs hit a two-decade high last year, driven by an increase in positive marijuana tests, as businesses might have loosened screening policies amid nationwide labor shortages. Of the more than six million general workforce urine tests that Quest Diagnostics Inc., one of the country’s largest drug-testing laboratories, screened for marijuana last year, 3.9% came back positive, an increase of more than 8% from 2020, according to Quest’s annual drug-testing index. That figure is up 50% since 2017. Since then, the number of states that legalized marijuana for recreational use grew to 18 from eight, plus the District of Columbia. Read More (The Wall Street Journal)

The U.S. putting the squeeze on Russian oligarchs investing in the marijuana industry. On Monday, March 14, Russian oligarch Andrey Muraviev was charged by federal prosecutors with funding a one-million-dollar campaign hush money that unlawfully channeled donations to U.S. politicians in turn for their help in getting a cannabis retail license. A cyclone of schemes spreading over various states suggests a plot to influence elections and illegally acquire cannabis licenses in other areas and Nevada. According to a charge that was declassified for public viewing by the U.S. Attorney for the Southern District of New York, it was alleged that a Russian oligarch conspired with American officials to obtain a cannabis license through illegal channels in Nevada. Federal prosecutors have said the activities amounted to political campaign donations that were not legal. Read More (Cannabiz News)

The cost of cannabis in North America. Courtesy of the U.S. federal government’s refusal to legalize cannabis on a federal level, each of the 18 states that permits adult use cannabis have adopted their own unique set policies that impact the prices of cannabis in these regions. Nonetheless, the following report from New Frontier Data paints a fantastic picture of the continued price compression legal and illicit cannabis companies are having to contend with in the U.S. in 2022. Per this report, the average price for an ounce of cannabis across America in 2022 is $294, going from $325 in 2010 (averaging both the legal and illegal market). Long term, however, it looks very likely that this number will continue to decline as more & more markets mature, which historically has only resulted in one outcome. Lower prices for cannabis consumers. Read More (Workweek)

If Michigan deschedules cannabis, will other states follow? As prohibition persists at the federal level, a new bill floated by a Michigan legislator asks a bold question: Can individual states deschedule cannabis at the state level? And if they do, what exactly will they accomplish? Michigan Representative and Democratic Floor Leader Yousef Rabhi introduced House Bill 5877 earlier. In an unprecedented move, HB5877 would fully remove cannabis from Michigan’s state-controlled substance list. As for the timing of the bill, Rabhi doesn’t think it’ll pass overnight. He said: “In all honesty, it’s going to be the beginning of a long conversation.” Both Rabhi and Matthew Schweich, deputy director of the Marijuana Policy Project, told Leafly the bill could inspire other state governments to pass their own versions and create momentum for federal change. Read More (Leafly)

$1 billion in municipal marijuana bonds could fund New York equity goals, expert says. A municipal marijuana bond offering of up to $1 billion is among the recommendations to New York regulators on how they can leverage resources to help equity entrepreneurs start and build recreational cannabis businesses. Gov. Kathy Hochul’s office announced plans in January to create a $200 million public-private fund to support the state’s ambitious goal to award 50% of all licenses to social equity applicants. The goal is to build a diverse marijuana industry that includes individuals impacted by the war on drugs. The state’s finance authority, the Dormitory Authority of the state of New York, would administer the program and has been soliciting recommendations on various approaches, according to Bloomberg News. Read More (Marijuana Business Daily)

Biden again keeps ban on recreational marijuana sales in D.C. in his budget. President Joe Biden is again proposing that the ban on legalizing the sale of recreational marijuana continues in D.C., another setback for local officials and advocates who celebrated Democratic control of the White House and Congress as a sign that the six-year-old prohibition would eventually be lifted. Named after sponsor Rep. Andy Harris (R-Maryland), the provision was inserted into the federal budget in 2015 and has since made it impossible for D.C. officials to pass a bill that would legalize marijuana sales. The proposal from the president follows a related disappointment for marijuana advocates earlier, when Congress passed a spending bill that kept the Harris Rider in place until at least September. Read More (Marijuana Retail Report)

Cannabis industry scathing in its review of Biden ban on Washington DC sales. Marijuana industry officials sharply criticized President Joe Biden’s proposed $5.8 trillion budget, which maintains a ban on adult-use cannabis sales in Washington DC despite strong public support for the program. Steven Hawkins, CEO of the U.S. Cannabis Council (USCC), wrote in a statement: “The nation’s capital could be a model for how to get cannabis legalization right. Instead, it’s the very opposite, and President Biden now shares some of the blame.” The USCC lists more than 65 members on its website, including multistate operators, smaller companies, ancillary businesses and even other marijuana trade organizations. Read More (Marijuana Business Daily)

Deadline is imminent for California provisional cannabis licensing. The final day of the month – Thursday, March 31 – marks the final opportunity for most California cannabis companies to apply for provisional licenses in the state – if they haven’t already. The Thursday deadline applies to retailers, distributors, manufacturers, delivery operations and most cultivators. There’s an exception for small-scale growers with less than 22,000 square feet of canopy and some social equity licensees. The deadline is the first of several facing the legal California marijuana industry as “provisional” licenses are phased out over the next few years. The last day that state authorities will be allowed to issue most provisional permits will be June 30, and by January 2026, all provisional licensees will have to transition to annual licenses. Read More (Marijuana Business Daily)

New York potency tax could drive prices as high as $70 an eighth. New York’s adult-use cannabis law includes a potency tax, which, in addition to the state’s sales and local taxes, could drive the price per eighth as high as $70, Syracuse.com reports. The law taxes distributors half a cent per milligram of the amount of total THC for flower, eight-tenths of one cent per milligram for concentrates, and three cents per milligram of THC for edibles. The state’s sales tax rate is 9% and localities can impose their own taxes as well, which could raise the overall tax rate for flower as high as 30% or as much as 55% for edibles, said tax attorney Jason Klimek, who co-leads the Cannabis Team at law firm Barclay Damon. Read More (Ganjapreneur)

Maryland senators delay vote on marijuana legalization ballot bill in committee after passing complementary measure. Maryland senators took up a House-passed bill to put marijuana legalization on the state’s November ballot—but the committee couldn’t reach a consensus and decided to delay a vote so members can sort out their concerns. The inaction in the Senate Finance Committee comes a day after members amended and passed a complementary bill to set up rules for the program if voters ultimately approve the reform. But those rules would be rendered redundant if lawmakers fail to pass the ballot bill. Members did not vote on HB 1, the ballot question bill, rather, they focused on revising the regulations legislation, SB 833, from Sen. Brian Feldman (D). The panel effectively replaced the original language of the Senate bill with much of HB 837, which is much more limited in scope and primarily concerns penalties and expungements issues. Read More (Marijuana Moment)

Pennsylvania senators approve marijuana banking protection bill as congressional reform stalls. As federal marijuana banking reform continues to stall in Congress, a Pennsylvania Senate committee approved a bipartisan bill to safeguard banks and insurers against being penalized by state regulators for working with state-legal medical marijuana businesses. The Senate Banking & Insurance Committee unanimously approved the legislation, which is sponsored by the panel’s chair and minority chair, Sens. John DiSanto (R) and Sharif Street (D). At the hearing, DiSanto recognized that while there’s federal guidance in place for banks and insurers that choose to work with state-legal cannabis businesses, they are not “immunized” by federal law because it remains a federally controlled substance—a situation that has made many financial institutions reluctant to take on clients in the industry. Read More (Marijuana Moment)

Top New Jersey senator plans hearings on ‘totally unacceptable’ marijuana licensing delays as governor urges patience. New Jersey Senate President Nick Scutari (D) says that delays in rolling out the state’s adult-use marijuana market are unacceptable, and he will be forming a special legislative committee to explore the issue through oversight hearings. There’s been a mix of feelings about the timeline for legalization implementation among stakeholders. As regulators have worked to approve the first round of licenses, some advocates have pushed for expediency while others feel it’s important not to rush the process to ensure that the industry that emerges is equitable and not dominated by large corporations. While Gov. Phil Murphy (D) has urged patience and insisted that the adult-use market will open within “weeks,” Scutari said in a press release that the “delays are totally unacceptable.” Read More (Marijuana Moment)

New Jersey senate president announces bipartisan legislative committee to investigate adult-use cannabis delays. New Jersey’s Cannabis Regulatory Commission (CRC) has repeatedly delayed the launch of the state’s commercial adult-use cannabis market, and now, Senate President Nicholas Scutari, D-Linden, wants to know why. Scutari announced March 29 that a special bipartisan legislative committee will be formed to investigate the delays, according to the New Jersey Globe. Scutari said in a statement to the news outlet: “We need to get the legal marijuana market up and running in New Jersey. This has become a failure to follow through on the public mandate and to meet the expectations for new businesses and consumers.” Read More (Cannabis Business Times)

New Mexico tribes sign deal to sell recreational marijuana. Two tribal communities in New Mexico are planning to enter the recreational marijuana industry in the state. The Pueblos of Pojoaque and Picuris signed an agreement allowing them to regulate their own marijuana businesses within their communities as well as apply for state permits for any cannabis companies they would operate outside of tribal lands, according to Source NM. The intergovernmental deal helps to reassure the tribes that they can sell cannabis on tribal land without threat of federal law enforcement interference. Some remain wary, however, as federal officials raided a household marijuana garden on Picuris Pueblo land in September 2021, Source NM reported. Read More (Marijuana Business Daily)

New Mexico cannabis firms prep for Texan shopping spree as adult-use sales launch. Cannabis businesses in eastern and southern New Mexico are counting on a stampede of Texans to supersize their sales when the state’s adult-use marijuana market launches, but that opportunity might not last forever. Those preparing for the surge of Texas cannabis shoppers include groups of marijuana retailers in key border communities along with at least one border cannabis producer that’s focused on serving the Texas market. Despite a relatively small population of 2.1 million, New Mexico’s recreational marijuana market is expected to achieve annual sales of up to $125 million in 2022, growing to as much as $400 million by 2025, according to projections from the forthcoming 2022 MJBiz Factbook. Texas should play a key role in that growth. Read More (Marijuana Business Daily)

Source: Intro-act, New Mexico Regulation and Licensing Department, Marijuana Business Daily

New Hampshire House approves state-run marijuana legalization bill and rejects psilocybin decriminalization measure. The New Hampshire House approved a bill to legalize marijuana through a state-run model—but the chamber tabled a separate bill that would have decriminalized possession of psilocybin mushrooms. This is the second time that the House has taken up the state-run cannabis legalization bill, HB 1598, sponsored by Rep. Darryl Abbas (R). It passed on the floor, but needed to go back to the Ways & Means Committee because it involved economic components. That panel met several times and made amendments, sending it back to the floor, where the full body passed it again in a 169-156 vote. It now heads to the Senate. Read More (Marijuana Moment)

Missouri lawmakers approve GOP-led marijuana legalization bill in committee. A Missouri House committee narrowly approved a GOP-led bill to tax and regulate adult-use marijuana in the state. The legislation from Rep. Ron Hicks (R), titled the “Cannabis Freedom Act,” cleared the House Public Safety Committee in a 5-4 vote, with amendments. It now heads to the Rules Committee before it could potentially advance to the floor. Beside legalizing possession and sale of cannabis, the bill would further provide opportunities for expungements, authorize social consumption facilities and permit cannabis businesses to claim tax deductions with the state. While advocates had hoped that the panel would advance the bill without revisions, members ultimately adopted three amendments. Read More (Marijuana Moment)

South Carolina house committee sets public hearing on bill to legalize medical cannabis. A South Carolina House committee plans to hold a public hearing April 4 on legislation to legalize medical cannabis. A small group of House members made changes to the bill March 31, according to the Associated Press, and more discussion is expected at the full Medical, Military, Public and Municipal Affairs Committee hearing. S. 150, titled the SC Compassionate Care Act, is sponsored by Sen. Tom Davis, R-Beaufort, who has been advocating for medical cannabis policy reform in South Carolina for years. The legislation outlines 13 qualifying conditions, including cancer, multiple sclerosis, post-traumatic stress disorder, chronic medical conditions causing serious muscle spasms, and any chronic or debilitating condition for which an opioid is prescribed. Read More (Cannabis Business Times)

VT taking prequalification applications for recreational marijuana businesses. Vermont regulators have begun taking prequalification applications from would-be cannabis cultivators, product manufacturers, retailers and others as the state readies for recreational marijuana sales to start in the fall. Here are the upcoming dates for the license application process to begin: 1) small growers and testing facilities: April 1, 2) all cultivators: May 1, 3) product manufacturers and wholesalers: June 1, 4) retailers: September 1. James Pepper, chair of the state’s Cannabis Control Board, told the AP that it will take some time for the Vermont market to establish its supply chain, as cannabis takes months to grow, process and test. The prequalification application process involves a criminal background check as well as potential administrative and civil law adjudications. Read More (Marijuana Business Daily)

Activists in Illinois call for fairness in dispensary license process. A rally in Chicago came weeks after Illinois Gov. J.B. Pritzker announced plans to award 50 new recreational cannabis dispensary licenses. Rally-goers “called for a fairer process to get a marijuana dispensary license in Illinois” according to local news reports. Local television station WLS reported that a group gathered at the Thompson Center in Chicago to raise objections after Illinois Gov. J.B. Pritzker announced a lottery earlier to award 50 new adult-use cannabis licenses in the state in an effort to “expand opportunities targeted to the communities most impacted by the failed War on Drugs.” The station reported that the group that organized the rally, known as True Social Equity in Cannabis, “don’t want a lottery to decide who can create a cannabis business in their neighborhood.” Read More (High Times)

Senate ready to review marijuana laws and host community agreements. Senate plans to debate legislation targeting ongoing issues with it Host Community Agreements And social justice in the growing legal cannabis industry in Massachusetts. There was no objection among members of the Senate Ways and Means Committee to introduce a redrafted version of a bill to put stricter limits on legally required contracts between marijuana companies and their host communities, create a cannabis social equality trust and establish essential businesses for cities and towns to allow businesses On-site cannabis consumption. Five of the committee’s members, three Democrats and two Republicans, chose to retain their rights and did not dissuade, positively or negatively. Read More (Online Weed News)

WV manufacturers are trying to find a balance on the issue of marijuana legalization. As American society slowly moves toward the idea of ​​marijuana legalization, manufacturers are trying to find a delicate balance. Employers who currently require drug tests as a condition of employment are trying to determine where their rules and regulations will stand in a society where the practice of marijuana use is more and more acceptable. Rebecca McPhail, president of the West Virginia Manufacturers Association, said: “As discussions continue around the legalization of recreational marijuana as well as the increased use of medicinal use, we are challenged as to what these effects will be on our workforce.” Speaking on MetroNews “Talkline,” McPhail said that for many members of her organization, there is a difficult dilemma. Read More (Online Weed News)

Medical cannabis sales in Arkansas top $21.1 million in February. Medical cannabis sales in Arkansas totaled $21.1 million in February, an increase of more than $500,000 over January’s sales, according to state Department of Finance and Administration (DFA) figures outlined by Talk Business & Politics. The state collected $2.333 million in tax revenues from February sales – up from $2.309 million collected the previous month. Since the first dispensary opened in Arkansas in May 2019, patients have purchased about 80,000 pounds of medical cannabis and the state has collected $62.525 million in taxes, which include a 6.5% sales tax and a 4% privilege tax on sales from cultivators to dispensaries, the report says. Most of the revenues are earmarked in the University of Arkansas for Medical Sciences National Cancer Designation Trust Fund. Read More (Ganjapreneur)

Los Angeles ballot push aims to lower marijuana taxes, bolster social equity. A new campaign in Los Angeles filed a potential ballot measure with the hope of lowering marijuana business taxes and also redirect cannabis tax revenue to social equity MJ companies. If successful, according to a campaign overview, the ballot question would: 1) lower the city marijuana business tax rate from 10% of gross receipts to a three-tiered tax system based on revenue, 2) establish a new marijuana business tax rate of 6% for companies with $3.5 million or more in revenue, 2% for those with $300,000-$3.5 million in revenue and a flat tax of $1,000 for those with less than $300,000 in revenue, 3) create a special city fund to direct financial aid to cannabis social equity license applicants, 4) direct marijuana tax revenue to be spent on a community reinvestment fund instead of being sent to the city’s general fund, etc. Read More (Marijuana Business Daily)

The U.S. cannabis spot index increased 1.9% to $1,265 per pound; October 2022 implied forward initially assessed at $1,250 per pound. The simple average (non-volume weighted) price increased $11 to $1,534 per pound, with 68% of transactions (one standard deviation) in the $679 to $2,390 per pound range. The average reported deal size was nominally unchanged at 2.4 pounds. In grams, the Spot price was $2.79 and the simple average price was $3.38. The average reported forward deal size declined fractionally to 78.5 pounds. The proportions of forward deals for outdoor, greenhouse, and indoor-grown flower were unchanged at 37%, 50%, and 14% of forward arrangements, respectively. Read More (Cannabis Benchmarks)

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

Unpaid Canadian marijuana regulatory fees jump tenfold to almost CAD $1 million. Outstanding regulatory fees owed by federally regulated Canadian marijuana companies jumped more than tenfold in recent years, according to figures shared with MJBizDaily by Health Canada. Industry officials suggest the amount of unpaid fees could be a symptom of squeezed producers being weighed down in an ultracompetitive market and having to choose which bills to pay on time. The agency’s data showed overdue fees as of December 31 totaled CAD $914,000 ($726,000) for the 2020-21 fiscal year. That’s more than 10 times the previous year’s $72,000 in unpaid fees for fiscal year 2019-20. The CAD $914,000 includes CAD $723,000 in annual regulatory fees that were deferred until March 31, 2021, meaning those fees were nine months late as of December 31, 2021. Read More (Marijuana Business Daily)

Canada’s recreational cannabis store count continues to increase. Cannabis Benchmark’s latest count shows the number of stores open for business reached 3,138 as of the end of March. That figure is up by 1,344 stores – or a jump of 75% – compared to March 2021. As shown in the chart below, we expect that trend to continue throughout this year but at a slightly slower rate, a change that is already playing out. During Q1 2022, an average of 74 new stores opened each month, which is much lower than the 127 stores added monthly during the same quarter in 2021. The number of stores continues to climb steadily across the country, making the legal cannabis system more accessible to consumers and, in some cases, increasing competition between retailers in more saturated local markets. Read More (Cannabis Benchmarks)

Source: Intro-act, Cannabis Benchmarks, Hemp Benchmarks

COVID-19

How the pandemic impacted cannabis purchasing patterns in Nevada. The Las Vegas tourism economy, specifically, suffered nearly $34 billion in losses in 2020 due to the COVID-19 pandemic, according to a report by Applied Analysis for the Las Vegas Convention and Visitors Authority. With such a significant impact on the local economy, Cannabis Business Times investigated if cannabis purchasing patterns in Las Vegas and Nevada were also affected – and they were indeed. We analyzed Nevada cannabis purchasing habits in three time periods: 2019 (pre-pandemic), April 2020 to September 2020 (the height of pandemic impact on tourism in Las Vegas), and from May 2021 to December 2021 (when tourists began returning to Las Vegas at a more normal rate). Overall, there is a clear relationship between visitors to Las Vegas and total cannabis sales in the city, and as the pandemic significantly impacted visitor volume, it impacted sales as well. Read More (Cannabis Business Times)

Source: Intro-act, LeafLink, Cannabis Business Times

New COVID-19 studies underscore the ongoing problems with cannabis research. A group of studies suggested that cannabinoids in the hemp plant (both real and synthetic) might offer some protection against the virus that causes COVID-19 illness. The studies underscored the therapeutic potential of cannabis extracts and gave CBD entrepreneurs some clinical studies to back up reams of anecdotal data showing that the plant has medicinal value. But they also highlighted the insanity of barriers to research higher-THC varieties of cannabis. There’s been no shortage of lip service from the U.S. government about researching cannabis. Regulators have been saying for decades that we don’t know enough about the plant’s therapeutic value. Those same regulators have done precious little to allow that to change, though. Read More (Hemp Industry Daily)

COMPANY NEWS

Cresco’s marijuana asset sales could hit $500 million after Columbia Care deal, analysts say. Cresco Labs (CRLBF) is expected to sell off $250 million-$500 million worth of marijuana cultivation and retail licenses largely to meet state license limits as part of its planned $2 billion acquisition of rival Columbia Care (COLXF). Company executives told analysts that Cresco “will likely” divest assets in Florida, Illinois, Massachusetts, New York and Ohio because of overlapping operations with New York-headquartered Columbia Care in limited-license markets. Investment analysts said it’s also possible Cresco would have to sell some cultivation operations in Maryland and Pennsylvania. The combined footprint of Cresco and Columbia Care currently includes more than 130 retail locations in 17 states and the District of Columbia. That footprint reaches about 55% of the U.S. population. Read More (Marijuana Business Daily)

Source: Intro-act, Company Websites, Cresco Labs, Columbia Care, Marijuana Business Daily

RIV Capital to acquire New York-based Etain, names new CEO to lead entry and expansion in the U.S. cannabis market. RIV Capital announced a definitive agreement to acquire ownership and control of Etain LLC and Etain IP LLC, owners and operators of legally licensed cannabis cultivation and retail dispensaries in the state of New York. RIV Capital will acquire ownership and control of the Etain companies for approximately $247 million, payable through a combination of cash and newly issued Class A common shares of RIV Capital, subject to, among other things, receipt of all required regulatory approvals, including from the New York Cannabis Control Board and the New York State Office of Cannabis Management. RIV Capital also announced that its board of directors has named Mark Sims as president and CEO of RIV Capital, to lead the company’s formal entry into the U.S. market and expansion into licensed adult-use operations in New York. Read More (Cannabis Business Executive)

Delta 9 Cannabis closes acquisition, announces private placement. Delta 9 Cannabis (VRNDF) closed a deal to acquire 17 stores in Alberta and arranged a private placement worth CAD$10 million ($8 million) from Sundial Growers (SNDL). Delta 9 also closed a CAD $32 million credit facility announced in February, the company said in a news release. The 17 Alberta cannabis stores acquired by Delta 9 operate under the Uncle Sam’s Cannabis and Discounted Cannabis banners. Delta 9 paid CAD $12.5 million in cash plus roughly 6.7 million Delta 9 common shares. Delta 9 CEO John Arbuthnot said in a statement that the company now owns 34 cannabis retail locations and is pursuing “an aggressive growth strategy to actively acquire cannabis retail stores that will provide meaningful revenue growth and positive adjusted EBITDA.” Read More (Marijuana Business Daily) and More (Cannabis Retailer)

Canadian cannabis producer Eve & Co receives creditor protection. Eve & Co (EEVVF) received an order for creditor protection from the Ontario Superior Court of Justice. According to a news release, the order includes, among other things: 1) a stay of proceedings in favor of the Eve Group, 2) approval of a debtor-in-possession (DIP) loan from Deans Knight Capital Management, and 3) the appointment of BDO Canada Limited as monitor of the Eve Group (in such capacity, the Monitor). According to the company’s application under the Companies Creditors Arrangement Act (CCAA): “As a result of continuing liquidity challenges, the applicants are insolvent and cannot meet their liabilities as they become due.” The initial order allows the company to draw on the DIP loan of CAD $1.2 million ($960,000). Read More (Marijuana Business Daily)

EARNINGS

Trulieve Q4 revenue increases 36% sequentially to $305 million after Harvest acquisition. For Q4 2021, Trulieve (TCNNF) reported that its revenue increased 81% compared to the fourth quarter of 2020 and 36% sequentially to $305.3 million. The company reported gross profit of $132.4 million and gross margin of 43.4% in the fourth quarter of 2021 compared to gross profit of $119.9 million and gross margin of 71.2% in the fourth quarter of 2020. Its adjusted EBITDA was $100.9 million, or 33.0% of revenue in the fourth quarter of 2021 compared to adjusted EBITDA of $81.4 million or 48.3% of revenue in the same period of the prior year. Further, its net loss was $71.5 million and adjusted net income of $1.8 million, which excludes $73.3 million of non-recurring fair value of inventory step up, and transaction, acquisition and integration charges primarily associated with the Harvest acquisition. Read More (New Cannabis Ventures)

Greenlane Q4 revenue increases 36% sequentially to $56 million. Greenlane Holdings (GNLN) reported that its net sales were $56.0 million in Q4 2021, compared to $36.3 million in Q4 2020, an increase of 54.4%. For the full year, net sales were $166.1 million in 2021, compared to $138.3 million in 2020, an increase of 20.1%. The year-over-year increase in net sales was primarily driven by the KushCo merger. Its gross profit was $12.5 million, or 22.3% of net sales in Q4 2021, compared to $6.2 million, or 17.0% of net sales in Q4 2020. For the full year, gross profit was $27.7 million, or 16.7% of net sales in 2021, compared to $22.8 million, or 16.5% of net sales in 2020. Read More (New Cannabis Ventures)

TILT Holdings Q4 revenue increases 1% sequentially to $54.1 million. For Q4 2021, revenue of TILT Holdings (SVVTF) increased approximately 28% to $54.1 million compared to $42.3 million in the year ago period. The company’s gross profit before fair value adjustments was $11.3 million or approximately 21% of revenue, compared to $11.3 million or approximately 27% of revenue in the year ago period. Its adjusted EBITDA increased to $4.8 million compared to $4.5 million in the year ago period. For 2022 financial guidance, TILT expects 2022 annual revenue to range between $255 – $265 million, and adjusted EBITDA to range between $27 – $32 million. At the midpoint, this reflects approximately 28% revenue growth and approximately 31% adjusted EBITDA growth over 2021. Read More (New Cannabis Ventures)

TPCO Holding reports net sales of $173.4 million for FY 2021. TPCO Holding’s net sales for FY 2021 were $173.4 million, of which $54.2 million was direct to consumer sales, and $119.2 million was Wholesale. Its gross profit for FY 2021 was $20.2 million, representing gross margin of 12% with adjusted EBITDA loss for at $62 million. The company continues to focus on increasing direct-to-consumer sales as a percentage of overall revenue, to shift its sales to higher margin product categories, which over time, is expected to drive gross profit improvements. The company reported Net (income) loss and comprehensive (income) loss for FY 2021 was $587 million, which is primarily attributable to non-cash impairment charges of $654.3 million. Read More (New Cannabis Ventures)

Planet 13 Q4 revenue declines 9% sequentially to $29.9 million. Compared to same period last year, for Q4 2021, Planet 13 (PLNHF) reported revenues of $29.9 million as compared to $20.1 million, an increase of 48% with gross profit of $16.2 million or 54.3% as compared to $8.6 million or 42.7%. Its net loss before taxes was $1.3 million as compared to a net loss of $18.7 million and net loss of $5.1 million as compared to a net loss of $18.2 million. The company also reported adjusted EBITDA of $1.9 million as compared to adjusted EBITDA of $0.4 million. Larry Scheffler, Co-CEO of Planet 13, said: “During a quarter that is seasonally slower and marked by significantly less tourist traffic, Planet 13 was able to maintain a market share above 10% in the Las Vegas cannabis market.” Read More (New Cannabis Ventures)

Auxly FY21 revenue increases 79% to $83.8 million. For the year ended December 31, 2021, Auxly’s (CBWTF) net revenues were $83.8 million as compared to $46.7 million during the same period in 2020, an improvement of 79%. Revenue in 2021 was comprised of approximately 69% in Cannabis 2.0 Product sales, with the remainder from Cannabis 1.0 Product sales. Auxly realized a gross profit of $19.3 million resulting in a 23% gross profit margin during the year ended December 31, 2021, compared to $9.8 million (21%) during the same period in 2020. Net losses attributable to shareholders of the company were $33.7 million for the year ended December 31, 2021, representing a net loss of $0.06 per share on a basic and diluted basis. Read More (New Cannabis Ventures)

4Front Q4 revenue increases 10% sequentially to $28.5 million. For Q4 2021, 4Front (CNXXF) reported that its revenue increased 35% year-over-year, and remained flat sequentially, at $33.8 million while GAAP revenue increased 68% year-over-year, and 10% sequentially to $28.5 million and adjusted EBITDA increased 160% year-over-year to $13.2 million. FY 2021, the company’s systemwide pro forma revenue increased 50% year-over-year to $132.7 million while GAAP revenue increased 81% year-over-year to $104.6 million. For the period its adjusted EBITDA increased 479% year-over-year to $34.0 million, or 32.6% of revenue. Read More (New Cannabis Ventures)

Schwazze Q4 revenue declines 17% sequentially to $26.5 million. Under its Q4 2021 financial summary, Schwazze reported revenues of $26.5 million grew 234% compared to $7.9 million in Q4 2020 with gross margin of $12.1 million was 1,856% better than Q4 2020 and 3,798 bps over Q4 2020. The company also reported adjusted EBITDA of $7.5 million for the quarter was 28.3% of revenue, compared to a loss of ($3.4) million for the same period last year with net income attributed to common shareholders was $5.5 million compared to a net loss of ($8.5) million for the same period last year. The company forecasted Q4 2022 revenue annualized run rate is projected to be approximately $220 million – $260 million, and the projected Q4 2022 adjusted EBITDA annualized run rate is projected to be from $70 million to $82 million. Read More (New Cannabis Ventures)

urban-gro Q4 revenue increases 4% sequentially to $19 million. urban-gro record fourth quarter revenue of $19.0 million, representing growth of 106% compared to the prior year period; organic revenue growth was 77.6%, excluding contribution from the 2WR+ acquisition. Its full year 2021 revenue was $62.1 million, representing growth of 140%. The company reported fourth quarter adjusted ebitda of $0.5 million; full year 2021 adjusted EBITDA of $2.7 million, representing an adjusted EBITDA margin of 4.3% of revenue. The company reported fourth quarter net loss of ($0.6) million; full year 2021 net loss was ($0.9) million. Urban-gro provided 2022 revenue guidance of greater than $110 million and Adjusted EBITDA guidance of greater than $5.0 million, including partial year contribution from the announced acquisition of Emerald Construction Management Inc. which is expected to close in April 2022. Read More (New Cannabis Ventures)

Delta 9 Q4 revenue increases 13% sequentially to $17.1 million. For the three-month period ending December 31, 2021, Delta 9 (VRNDF) recorded quarterly net revenues of $17.1 million for the fourth quarter of 2021, up 21% compared to $14.2 million for the same quarter last year. Sequentially net revenues increased 13% for the fourth quarter of 2021 compared to $15.2 million in the third quarter of 2021. The company also recorded gross profit of $4.9 million for the fourth quarter of 2021, down 22% compared to $6.3 million for the same quarter last year. Sequentially adjusted EBITDA2 improved to $0.6 million in the fourth quarter of 2021 compared to and adjusted EBITDA of $0.2 million in the third quarter of 2021. Read More (New Cannabis Ventures)

IM Cannabis Q4 revenue increases 35% sequentially to CAD $20 million. IM Cannabis reported that its revenues were $20.0 million Q4 2021, representing an increase of 309% from Q4 2020 and 35% sequentially while revenues in 2021 were $54.3 million, representing an increase of 242% from 2020. Gross profit, before fair value adjustments, was $3.8 million in Q4 2021 compared to $2.8 million in Q4 2020. The company also reported adjusted EBITDA was $(8.3) million in Q4 2021 compared to $(2.4) million in Q4 2020 while adjusted EBITDA was $(22.0) million in 2021 compared to $(4.9) million in 2020. Its net loss was $12.5 million in Q4 2021 compared to a net loss of $20.0 million in Q4 2020 while net loss was $18.5 million in 2021 compared to a net loss of $28.7 million in 2020. Read More (New Cannabis Ventures)

CAPITAL MARKETS

Do earnings misses matter? Fourth-quarter earnings have generally been disappointing relative to analyst expectations. Still, the cannabis equity markets have not significantly discriminated between companies with large % misses versus those close to expectations. The green line in the graph shows the percent miss in actual 4th quarter EBITDA vs. consensus analyst estimates. The orange line calculates the stock performance relative to the MSOS ETF from the day before earnings release to the day after release. The dotted trend line shows a modest positive slope, indicating that better earnings performance did have a small impact on stock performance. The correlation of .20 is quite low, indicating that over this period, the drivers of stock performance had little to do with announced earnings. Read More (Viridian Capital Advisors)

Source: Intro-act, Viridian Capital Advisors

Cannabis financing: 2021 year in review. Capital raise activity exploded out of the blocks in the first half of 2021, buoyed by hopes that the new Democratic presidency and Senate majority would finally produce a legalization breakthrough. 455 capital raises totaling $12.8 billion in 2021 representing an increase in the number of deals of 50.7% and a 195.4% increase in the dollar volume of deals vs. 2020. The second half of 2021 was softer with declines of 29.6% in transaction numbers and 30.3% in capital raised vs. the first half of 2021. Of our 13 industry sectors, Cultivation & Retail continued to lead with 62.3% of all invested capital, up from 58.9% in 2020. The second most active sector was Investments/M&A with 9.1% of all invested capital, up from 7.9% in 2020, due to five SPAC IPOs totaling $943 million. Software showed the largest decline from 2020 in percentage of invested capital raised even though the total capital raised was up. Read More (Cannabis Business Times)

Source: Intro-act, Viridian Capital Advisors, Cannabis Business Times

Cannabis REIT Innovative Industrial Properties to sell 1 million shares. Innovative Industrial Properties (IIPR) announced that it has commenced a public offering of 1,000,000 shares of its common stock. The company expects to grant the underwriters a 30-day option to purchase up to an additional 150,000 shares of its common stock. All of the shares are being sold by the company. The company intends to use the net proceeds from this offering to invest in specialized industrial real estate assets used in the regulated cannabis industry that are consistent with its investment strategy, and for general corporate purposes. BTIG, LLC is acting as sole book-running manager for the offering. Piper Sandler & Co., Roth Capital Partners and Compass Point Research & Trading, LLC are acting as co-lead managers for the offering. Read More (New Cannabis Ventures)

Cannabis manufacturer Valens raises $22.5 million in bought deal offering. The Valens Co. (VGWCF) announced a bought deal offering worth $22.5 million (CAD$28.1 million) with an over-allotment option. Net proceeds from the offering will be used “to continue to pursue strategic growth initiatives in North America, provide funding for working capital and for general corporate purposes.” Valens noted in a news release. Under the bought deal offering, underwriters Stifel GMP and Alliance Global Partners will purchase 10,613,207 Valens units for CAD $2.65 ($2.13) per unit. Each unit includes one common share and half of a common share purchase warrant, which will be exercisable to buy another common share within 48 months of closing at CAD $3.20. Read More (Marijuana Business Daily)

Company tapped by DEA to grow marijuana for research files to list on Nasdaq. A Florida company with “conditional approval” from the U.S. Drug Enforcement Administration to cultivate marijuana for research purposes could become the first U.S.-based plant-touching business to trade on the Nasdaq market. Bright Green filed plans with the U.S. Securities and Exchange Commission to register its shares on the Nasdaq under the ticker symbol BGXX. The company is building a $300 million manufacturing and cultivation facility in the small New Mexico town of Grants, about 80 miles west of Albuquerque. In its SEC filing, Bright Green noted it has “received conditional approval based on already agreed terms from the U.S. Drug Enforcement Administration to produce federally legal cannabis.” Read More (Marijuana Business Daily)

MEDICAL CANNABIS

Alabama Senate committee approves bill to force women who want medical marijuana to show negative pregnancy tests. Alabama senators approved a controversial bill in committee that would require women of “childbearing age” to show proof that they’re not pregnant in order to buy medical cannabis products from dispensaries. It was also amended to make it so doctors would not be permitted to issue medical cannabis recommendations to women between 13-50 “without first obtaining a negative pregnancy test from the patient.” The Senate Children, Youth, and Human Services Committee passed the amended SB 324, sponsored by Sen. Larry Stutts (R), in a 7-2 vote. It then advanced to a second reading in the full chamber hours later but still requires a third reading vote before potentially being transmitted to the House. Read More (Marijuana Moment)

SD lacking doctors to recommend medical cannabis, limiting access. Only 90 doctors have been approved to recommend medical cannabis in South Dakota, even though MMJ has been legal in the state since July 2021. South Dakota’s rules require a physician to begin the MMJ card application process for a patient. A would-be patient must schedule a consultation with a doctor licensed to recommend medical marijuana, according to Sioux Falls TV station KELO. Even more steps are required by both doctors and patients, and all contribute to the overall lack of access to medical marijuana in the state. The 90 approved doctors represent only 4.07% of the state’s 2,214 total active physicians, KELO noted. South Dakota’s population is estimated at 895,376, which means there is one doctor to recommend medical cannabis for every 9,948 South Dakotans, according to the TV station. Read More (Marijuana Business Daily)

Medical marijuana bill in Tennessee falters. Efforts to legalize medical marijuana in Tennessee via its Legislature apparently have stalled for the year. The legislation to legalize medical cannabis, HB 1968, was pulled by its sponsor because of lack of support, Nashville TV station WKRN reported. The bill’s sponsor, Democratic state Rep. Bob Freeman, lamented that Tennessee is lagging behind other states in its region in legalizing medical marijuana. Both chambers of the Tennessee Legislature are dominated by Republicans, and the measure was a “nonstarter,” Freeman said, despite the revenue medical marijuana could generate for the state. Tennessee was projected to bring in $130 million a year in tax revenue from a medical cannabis program once it reached maturity, according to a fiscal review of the bill. Read More (Marijuana Business Daily)

New legislation would authorize more medical cannabis operators in Minnesota. A Minnesota lawmaker wants to double the number of licensed medical cannabis operators in the state. Sen. Mark Koran, R-North Branch, introduced legislation March 29 that would allow the Minnesota Department of Health to license at least two more vertically integrated companies in the state, according to a 5 Eyewitness News report. Currently, Minnesota has two licensed cannabis operators: LeafLine Labs and Vireo Health (VREO-CA), which does business as Green Goods in the state. Koran told 5 Eyewitness News that his proposal could help increase medical cannabis production, promote more competition and drive prices down for patients. Read More (Cannabis Business Times)

Babies exposed to cannabis in the womb may be at risk for obesity, high blood sugar. Cannabis use among pregnant women is on the rise and may be associated with negative health outcomes in children, according to a new study published in the Endocrine Society's Journal of Clinical Endocrinology and Metabolism. A 2016 study in Colorado revealed that up to 22% of pregnant women had detectable levels of cannabinoids in their body. Women who use cannabis, both tetrahydrocannabinol (THC) and cannabidiol (CBD), during pregnancy could be putting their child at risk for low birth weight and behavioral problems. Exposure to cannabinoids may also increase the child's future risk of obesity and high blood sugar. Read More (ScienceDaily)

Cannabis and HIV: A look behind the science that started it all for medical marijuana. A lot of HIV patients go through neurocognitive impairment and changes in behavior due to neuroinflammation caused by the virus. Different research teams have now ventured out to check if cannabis can play a role in reducing inflammatory signals that give rise to this symptom. For instance, a study published in the journal AIDS Care looked at one hundred and thirty-eight HIV patients' previous cannabis use to see if the herb affected their neurocognition. A comparable study published in the Journal of Acquired Immune Deficiency Syndromes observed the effects of cannabis on neurocognitive impairment in six hundred and seventy-nine patients with acquired immune deficiency syndromes. Read More (Cannabis.net)

Long-term cannabis use may shrink the brain’s hippocampus, study suggests. Long-term cannabis use may detrimentally affect IQ, learning and processing speed, and even shrink the size of the brain’s hippocampus over time, according to a new study based on over four decades’ worth of cohort research. Study participants who reported long-term cannabis use were seen to perform worse in cognitive function tests compared to non-users and exhibited a significantly greater mean decline between childhood and adulthood IQ measurements compared to their non-using peers. MRI scans of adult long-term cannabis users’ brains also showed significantly smaller hippocampal gray matter volumes than non-users. The researchers say that these findings could not be otherwise explained by long-term alcohol or tobacco use, or by occasional cannabis use, suggesting that long-term cannabis use may have some unique detrimental effect on cognitive performance. Read More (Analytical Cannabis)

Toxic air pollutants from smoking cannabis with a bong are 4 times worse than cigarettes, study finds. Secondhand cannabis smoke (SHCS) is a novel exposure source uncharacterized in homes but containing known health risk factors. Although 27% of young adults believe SHCS exposure is safe, cannabis smoke has several hundred toxic chemicals, carcinogens, and fine particulate matter (PM2.5), many at higher concentrations than tobacco smoke. Decades of secondhand tobacco smoke (SHTS) research demonstrate causal links to cancer, respiratory and cardiovascular diseases, preterm birth, and decreased immune function. These concerns have not translated to cannabis bong smoking, a popular consumption method in social settings among young adults, wherein smoke is drawn through water. However, like SHTS, 1 minute of SHCS caused significant endothelial dysfunction in rats. Read More (Cannabis Business Executive)

CBD/HEMP

FDA, FTC slap CBD industry with seven warning letters related to COVID claims. The U.S. health and trade authorities issued a record seven warning letters in a single day to companies making CBD, the biggest federal action against the industry in over a year. Warning letters from the FDA and the FTC targeted companies making COVID-related claims. It was the first time so many CBD companies had been targeted in a single day. They were the first warnings issued since this year’s release of multiple scientific studies showing that CBD, cannabinoid acids and even synthetic cannabis compounds may prevent or treat COVID-19 infections. The companies that received warnings were: 1) Cureganics, 2) Heaven’s Organics LLC, 3) Functional Remedies, LLC D/B/A Synchronicity Hemp Oil, 4) Greenway Herbal Products LLC, 5) CBD Social, 6) UPSY LLC, and 7) Nature’s Highway. Read More (Hemp Industry Daily)

United States Pharmacopeia (USP) prepares to add CBD. The USP is in the process of adding CBD to its list of drugs and their properties, Analytical Cannabis understands. A work-in-progress chemical profile of CBDdetails the cannabis compound’s properties, such as its typical retention time and the chromatographic procedures used to detect it. The CBD monograph, as it’s known, was open to public comments until March 31. However, should any viewer wish to submit a late suggestion, it’s understood that the USP does consider comments received after the official comment period has ended. The USP’s National Formulary is an extensive list of drugs and their methods of detection that is officially recognized by the U.S. federal government. Read More (Analytical Cannabis)

Prices of CBD Biomass and Delta-8 THC distillate declines in March 2022 while CBD flower outperforms. The overall assessed price for CBD Biomass turned downward after two months of stability. In 2021, the aggregate assessed price for CBD Biomass dropped about 11% from January to March, from $0.53 to $0.47 / %CBD / pound. The observed price for Delta-8 THC Distillate declined for the ninth consecutive month, slipping 6% from February to average $681 per kilogram in March 2022. The low end of the reported price range fell to $430 per kilogram. The high end of the observed price range also declined, to $950 per kilogram. Assessed prices for greenhouse and outdoor-grown smokable CBD Flower rose in March 2022. Read More (Hemp Benchmarks)

Tennessee legislation to cap THC content in hemp-derived products at 0.3% advances in house subcommittee. Tennessee lawmakers debated a dual measure March 30 that would ban the sale or possession of hemp-derived products containing more than 0.3% THC on a dry-weight basis. During a subcommittee hearing, the bill’s sponsor, Rep. William Lamberth, said regulation for these products needs to be clear-cut, News Channel 9 reported. William said: “I am not banning delta-8 THC or any other type of THC in this bill. We’re just setting an upper limit of 0.3% [THC]”. But Sam O’Sullivan, with the Tennessee Health Alternatives Association, disagreed. “If this bill were to pass, I know it just says it’s 0.3 percent, but that is a ban.” Opponents of the bill also argue that the measure would significantly impact businesses selling such products and hinder individuals who use these products for medicinal benefits. Read More (Cannabis Business Times)

RETAIL

Ebay’s new CBD trial could have ‘knock-on effect’ for other ecommerce platforms. CBD products from a raft of sellers are now set to be sold on Ebay UK ‘permanently’, marking a dramatic shift in sentiments from one of the world’s largest retailers and an ‘important moment for the industry’. Ebay, which has historically enforced a strict ban on the sale of CBD products on its platform, announced that it had launched a new pilot programme in England and Wales, allowing a select group of brands to list their products. The ecommerce giant told BusinessCann that this initiative is ‘not a temporary trial’, and that it intends for compliant CBD products to ‘be available permanently on Ebay’. Read More (Cannabis Business Executive)

How cannabis companies are capitalizing on 4/20 amid easing COVID-19 restrictions. As the biggest shopping day of the year for the cannabis industry approaches, businesses are preparing for 4/20 with loosened COVID-19 pandemic restrictions and a focus on selling flower, mainly in the form of pre-rolls. The unofficial April 20 marijuana holiday resembles mainstream retail’s Black Friday shopping day after Thanksgiving in that consumers flock to cannabis stores to stock up on heavily discounted products. Most companies spend months preparing for this period. Cannabis businesses estimate that sales increase by about 30%-50% on 4/20 the days leading up to it. This year, 4/20 is on a Wednesday, so companies are targeting their discounts and promotions to begin the Friday before, on April 15. Read More (Marijuana Business Daily)

Source: Intro-act, Headset, Marijuana Business Daily

Denver hotel becomes first in nation to receive license to legally consume cannabis on premises. Denver has long been a desirable travel destination. With the legalization of adult-use cannabis, tourism has been on fire and hotels have been trying to keep up. Indeed, a recent study showed an increase of 120,000 hotel rooms rented per month since legalization, yet public consumption was banned in Denver. Enter The 420 Hotels, the first licensed cannabis consumption lounge in a hotel, which just obtained a provisional license from the city of Denver, clearing a major cannabis licensing hurdle to operate a cannabis consumption lounge as an amenity to the adjacent hotel. Chris Chiari, CEO and founder of the 420 Hotels and the historic Patterson Inn is transforming the carriage house of the property into a first in the nation, in-hotel licensed legal cannabis consumption lounge. Read More (Benzinga)

PRODUCTS

Pesticide testing now mandatory for all cannabis products. Several years after Washington’s legislature first discussed these requirements, the state has finally approved compulsory pesticide testing for all cannabis products produced and sold in the state. Cannabis manufacturers have a duty to meet the demands of cannabis users in a state. For profit reasons, some of these operators have settled for harmful chemicals to increase the output of their crops. These chemicals include insecticides, pesticides, and inorganic fertilizers. Many of them are unfit for human consumption. Washington State’s state cannabis regulators noticed the growing use of pesticides in the cannabis and hemp industries months after the state began its medical program. However, the growers claimed that they only use pesticides with zero harmful effects. Read More (Cannabis News Hubb)

INTERNATIONAL

Geography aside, Israel is a player in Europe’s cannabis markets. While the cannabis industry’s eyes may be firmly on Europe, there is another country having been long positioned in the avant-garde of cannabis, and pushing the policy agenda once again. While Israel is not itself in Europe, it is adjacent to the continent, with significant linkage to that territory as well as to the U.S. and the Middle East and North Africa, including the Gulf of Guinea and sub-Saharan regions of Africa. Israel is involved in imports and exports to Europe with a thriving exchange of ideas and products. For instance, the large Israeli pharmaceutical chain Super-Pharm is set to import Portuguese producer Agrivabe’s Miracle Alien Cookies cannabis strain to sell as Cannavix Miracle. That brings Super-Pharm’s range of medical cannabis to about 200 different strains, and will bolster Israel’s educational retail approach with workshops and pharmacist training. Read More (New Frontier Data)

U.K. list advances some CBD products but means many must be removed from market. The number of CBD products still in the running for full authorization in the U.K. has expanded following an announcement that 70 applications covering a total of 3,536 products were advanced by the Food Standards Agency (FSA). Products on a list released, and those previously advanced by the FSA may remain on sale while those that failed inclusion and any other non-compliant products on the market must now be withdrawn from consumer outlets, and may not be traded or sold in the U.K. FSA chief executive Emily Miles, said: “Being on the list means that the application is credible and the FSA has, or is shortly expecting to receive, significant scientific evidence from the applicant with which to judge safety.” Read More (HempToday)

Dutch recreational cannabis production pilot beset by delays. A pilot program to allow the limited cultivation and distribution of recreational cannabis in the Netherlands has been hit with another major delay. The program, which is supposed to involve 10 cannabis cultivators supplying dozens of stores, was originally intended to launch in 2020. But that plan was delayed to 2022, and the latest delay has the program expecting to kick off in the second quarter of 2023, according to a ministerial letter to parliament about the experiment. The stores, known as coffee shops, currently operate in a system where sales are legally tolerated but marijuana cultivation has been prohibited. The Netherlands has been laying the groundwork for the pilot program for almost four years. So far, the Dutch government has selected only eight of the 10 growers, according to the letter. The delay is bad news for a number of Canadian companies that have stakes in Dutch producers. Read More (Marijuana Business Daily)

Australian state to review hemp act as stakeholders say rules are too strict. The government in the Australian island state of Tasmania has indicated it will revisit its Industrial Hemp Act amid concerns by stakeholders that current rules and regulations are holding back the industry. Tasmania grows roughly a third of Australia’s industrial hemp, with an estimated farm gate value of around AU$5 million (US$3.75 million/€3.4 million) recorded in 2019-20. But tight restrictions on the use of hemp flowers have limited production primarily to food seed, said Tim Schmidt, president at the Australian Hemp Council, a national trade group. Guy Barnett, Minister for Primary Industries and Water, said: “The government is reviewing the Industrial Hemp Act 2015 to make sure the regulation continues to support industry needs.” Read More (HempToday)

Bermuda house passes adult-use cannabis legislation. For the second time in two years, the Bermuda House of Assembly passed adult-use cannabis legislation, the Caribbean National Weekly (CNW) reports. The proposal, which passed in 2021 but was tabled by the Senate, would legalize the production and sale of cannabis in British territory. Named the Cannabis Licensing Act of 2022, the legislation was introduced by Home Affairs Minister Walter Roban who said cannabis prohibition stands as “an unjust colonial legacy” and evidence of “systemic, racialized disparities,” the report says. “We need radical new thinking – increasingly legalization is not that radical at all,” Roban said, suggesting the changes were “long overdue” and that polls in Bermuda show an “an overwhelming appetite for changes in our cannabis laws.” Read More (Ganjapreneur)

TECHNOLOGY

Five digital marketing trends driving the cannabis industry in 2022. 1) Email personalization is mandatory: email marketing continues to be one of the most important marketing channels available to cannabis and ancillary businesses in 2022, but the old days of sending the same generic message to everyone you can are over. 2) A cookie-less world changes the game: by 2023, Google will no longer track cookies in its Chrome browser in an effort to provide more user privacy (something that the Safari and Firefox browsers already do and that Apple’s iOS 14 update prevents for Facebook tracking). 3) Voice search jumps in popularity: more people are using voice search every day, and the numbers will continue to go up, so it’s essential that you optimize your website for voice search in 2022. 4) Branding matters more than ever: branding is getting more important in the cannabis industry every day. 5) Influencer marketing dominates: in 2021, influencer marketing climbed to $13.8 billion, and it will continue to grow in 2022 and beyond. Read More (Pink Planes)

Decentralized opportunities: How cannabis could factor into Web3, The Metaverse. Cannabis operators with connections to the metaverse tell Benzinga that web3 should offer cannabis more opportunities than current online offerings. From sponsoring events to buying and delivering CBD to your home using Ethereum blockchain, cannabis is already finding ways to connect on the decentralized web and the opportunities could grow if mass adoption of web3 technology one day comes. With the metaverse, cannabis may find something it rarely has online: brand exposure. Cannabis and web3 participants expect the plant to be accepted in many age-gated worlds in the metaverse, more commonly than currently on web2. Rather than finding ways around ad bans, web3 offers various ways pot brands can connect with consumers, investors and buyers. Read More (MSN)

LEGAL & IP

New lawsuit filed over Arizona’s adult-use marijuana social equity licensing. Arizona regulators are facing a third lawsuit over adult-use marijuana social equity licensing in the state. According to the Phoenix New Times, the latest suit, filed in Maricopa County Superior Court, requests a delay for a scheduled April 8 lottery to determine the winners of 26 coveted social equity marijuana retail permits. The lawsuit alleges that the Arizona health department has not fully vetted the roughly 1,500 applicants for the social equity lottery to confirm they are eligible under state law. If the lottery isn’t delayed for fuller vetting, the suit claims, the state might be forced to revoke some of the 26 licenses it plans to award after the April 8 drawing. That means the state could wind up with fewer than 26 social equity operators, attorney Paul Conant told the New Times on behalf of his three social equity applicant clients who filed the suit. Read More (Marijuana Business Daily)

CANNA FACTS

Source: Intro-act, LeafLink Flash: March 2022

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 3/31/2022)

Quarterly Market Performance (Quarter Ending 3/31/2022)

Top 10 Holdings (updated as of 4/1/22)

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