Business Archives - Green Market Report

Debra BorchardtJune 18, 2021
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13min190

Connecticut’s legalization efforts looked all but certain to fail at the beginning of the week, but now it’s headed to the governor’s desk to be signed into law. Sales could begin in May 2022. During the state’s normal legislative calendar, lawmakers passed a similar bill, but Republicans pushed back and it never made it to a vote. The session ended and the measure was moved to the special session. Although Republicans got the blame for the delay, several state Democrats had also expressed concerns. In the state’s recent special session, the Senate approved a full legalization bill by a vote of 19-12.

Governor Stands Firm

Governor Lamont, who had been supportive of legalizing adult-use sales, signaled his displeasure with the social equity language. “Gov. Ned Lamont is threatening to veto a bill legalizing and taxing marijuana because it does not go far enough in addressing the historical trauma of the war on drugs and ensuring equity in the state’s budding recreational marijuana industry.” Paul Mounds, Lamont’s chief of staff said the law, “does not meet the goals laid out during negotiations when it comes to equity and ensuring the wrongs of the past are righted. To the contrary, this proposal opens the floodgates for tens of thousands of previously ineligible applicants to enter the adult-use cannabis industry.”

That’s when an amendment was added that stated that those applicants must have an average household income of less than 300% of the state median over the three tax years immediately preceding the person’s application or was a resident of a disproportionately impacted area for no less than five of the 10 years immediately preceding their application. Other criteria include people who were incarcerated for the sale, possession or cultivation of cannabis or had a parent, spouse or child who was imprisoned for such an offense.

Advocacy Groups Celebrate

The Marijuana Policy Project played a leading role in the fight to reform Connecticut’s cannabis laws. “Connecticut is on the cusp of becoming the latest state to legalize cannabis. This year has shown us that state legislatures are capable of rising to the challenge to end cannabis prohibition. A supermajority of Americans have made it clear that they favor a system of legalization and regulation rather than the status quo. This victory will add to the momentum towards cannabis policy reform in other states and at the federal level,” said Karen O’Keefe, director of state policies for the Marijuana Policy Project. MPP noted that S.B. 1201 will legalize possession of up to one and a half ounces for adults 21 and over. The bill will go into effect on July 1, 2021. Adults will be allowed to securely cultivate cannabis at home starting July 1, 2023. A full summary of the bill is available here, and a comparison between it and other state legalization laws is available here.

NORML also highlighted that the law addresses those with past criminal records for activities involving up to four ounces of cannabis who will have their convictions automatically expunged. Those with convictions for more serious offenses can petition the courts for relief. Licensed retailers will be subject to both state and local regulations, and local municipalities may impose moratoriums on cannabis-related businesses. Marijuana flowers available at retail facilities will be capped at 30 percent THC, while concentrated products (except vape cartridges) will be capped at 60 percent THC. Retail purchases will be subject to the state’s sales tax. Designated public consumption facilities are permitted under the law in municipalities with 50,000 residents or more.

Connecticut is just the latest domino to fall as states begin to repeal their failed prohibition of marijuana and replace it with a sensible system of legalization and regulation. Never before has the momentum for legalization looked as strong as it does in 2021, with four state legislatures already approving bills to ensure state law reflects the overwhelming will of their state residents in just a few short months,” said Erik Altieri, NORML’s Executive Director. “Federal lawmakers need to stop dragging their feet and get the message: it is time to take swift action to end our federal prohibition and allow states to legalize marijuana as they see fit.”

Licensing

Cannabis legal firm Vincente Sederberg said that beginning in September, existing medical cannabis dispensaries can apply for “hybrid retailer” licenses to also serve adults 21 and older. They will be required to submit a conversion plan and pay a $1 million fee, which could be cut in half by creating an equity joint venture with a social equity applicant as the majority owner. Existing medical cultivators can also begin cultivating adult-use cannabis later this year by paying a fee of up to $3 million.

If the application period for a license type closes and DCP receives more than the maximum number of applications, a third-party lottery will be used. Applicants for new cannabis businesses will have to pay a small fee to enter, then a larger fee if they receive a license. Licensing fees for qualified social equity applicants will be 50% lower, and equity applicants will receive a 50% discount on renewal fees for the first three years. The law also creates $50 million in bonding for the cannabis business accelerator program, workforce training developed by the Social Equity Council, and start-up capital for equity applicants.

Connecticut established a thoughtful licensing scheme that is intended to create a diverse, accessible, and robust cannabis industry,” said Michelle Bodian, a Connecticut native and senior associate attorney in the New York office of national cannabis law firm Vicente Sederberg, whose firm has worked on social equity and small business policy matters and programs around the country. “Eight classes of licenses will lend to a wide array of opportunities and other benefits for Connecticut businesses, large and small,” Bodian said. “A regulated adult-use cannabis market will create a wave of new jobs and generate significant tax revenue for the state and local governments. It also bodes well for all the ancillary industries that will supply these cannabis businesses with products and services.”

Unions Have High Hopes

UFCW Local 371 President Ronald Petronella and UFCW Local 919 President Mark Espinosa released the following joint statement:

“Connecticut working families need an economy that puts them first. With this bill, Connecticut can create thousands of good-paying cannabis jobs that will strengthen our communities and help to speed our economic recovery as we emerge from the pandemic.

“States across the Northeast have already tapped into the economic promise of cannabis. Creating a strong cannabis market here in Connecticut with clear regulations that prioritize good wages and worker safety is essential to ensuring we build the foundation for long-term economic growth in the industry. As the unions for thousands of Connecticut frontline workers, we look forward to working to create thousands of good paying, family sustaining cannabis jobs here in Connecticut.”

 


Noemi GonzalesJune 18, 2021
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4min310

The Art of Marijuana Etiquette: A Sophisticated Guide to the High Life”

 by Andrew Ward

 So let’s suppose that you or someone you know are new to the cannabis scene.

How does one learn the basic lingo of the marijuana world? Where do you turn to in order to understand some of the commonly observed proprieties in smoke circles?

Author Andrew Ward has compiled such information to catch those up to speed who have not been lurking in the random corners of the cannabis realm.

There’s more to this book so let’s get into it then!

-Topic Focus-

The social stigma surrounding cannabis usage is rapidly deteriorating so we are beginning to see more and more new people explore just what marijuana has to offer and this book does a fantastic job of inducting these rookies into the ranks with solid information.

How to roll, smoke session etiquette, how to prepare for your first run to the dispensary, the various methods of consumption, and so much more are all present in this book and expertly broken down in a fashion that even the densest of new readers can begin to pick up the culture.

There is also a fair amount of scientific information present that covers just what the difference is between hemp and cannabis, information about concentrates, and so much more.

-About the Author-

The author of “The Art of Marijuana Etiquette” is Andrew Ward. Ward is an accomplished writer who focuses on the cannabis industry.

You can find Ward’s previous work in publications such as PotGuide, The Marijuana Times, PROHBTD, and more. He is also the author of “Cannabis Jobs” and has been covering the movements of the cannabis industry for over a decade now.

Andrew Ward lives and works out of Brooklyn. You can find him on Twitter @TheCannaWriter

-Reading Experience-

“The Art of Marijuana Etiquette” gets right to work as it dives into useful information and that’s something that is always appreciated. Very minimal fluff to be had in this book.

The sections are properly broken up and the information itself is very clearly written so the reader can easily digest the content and rapidly learn from the book. Such a comfortable structure of a book is very kind to the reader.

You can treat this book as a reference guide of sorts once you realize just how thoroughly the table of contents communicates where to find what information.

-Summary-

If you’re new to the world of cannabis and looking to get caught up to speed or know someone who could use such assistance then this book will serve that end very well.

One can acquire a decent range of knowledge when it comes to the wonderful world of weed with even a brief session spent reading “The Art of Marijuana Etiquette” as this book expertly breaks down many aspects of the modern cannabis culture.

If you don’t want to get caught slipping in the next smoke session then you can get your hands on your own copy here:

 

 


StaffJune 17, 2021
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4min3390

Clever Leaves Holdings Inc. (NASDAQ: CLVR) said it has entered into an active pharmaceutical ingredient supply agreement with CBD Life Holding SAPI de CV, an emerging leader in the Mexican cannabis industry which offers a line of CBD Wellness and consumer products and medical cannabis products which are under development. The partnership is Clever Leaves’ first commercial agreement in the Mexican market, and it comes shortly after regulations were fully approved in the country, providing a strategic growth opportunity in one of the world’s largest pharmaceutical markets. Clever Leaves also said recently that it is set to join the Russell Microcap Index, effective at market open on June 28, 2021, upon the conclusion of the Russell indexes annual reconstitution.

According to a recent report from Prohibition Partners for Latin America and the Caribbean (2020), the medical cannabis market in Mexico could be worth $60 million by 2024. So, it isn’t a huge market by comparison to the U.S. or Canada but still holds many opportunities.

“As a multinational cannabis operator with substantial operations in Latin America, it has always been one of our top goals to identify leaders in the region and build long-lasting commercial relationships,” said Kyle Detwiler, CEO of Clever Leaves. “CBD Life’s brand positioning and local exposure are attractive, but it’s their commitment to high-quality, pharmaceutical-grade medical cannabis products that makes this an ideal partnership.”

Under the agreement, Clever Leaves said it will act as the API supplier for the development and manufacture of CBD Life’s medical cannabis products. Beginning with CBD isolate, Clever Leaves aims to be the ongoing supplier of the required APIs for CBD Life’s product manufacturing purposes. CBD Life has significant distribution in Mexico, with its products available at more than 18,000 points of sale. The company has established itself as an early-mover when it comes to providing cannabis-based products to the Mexican market. It also has formed strategic alliances with some of Mexico’s largest media groups and is the first cannabis company to launch a nationwide advertising campaign for non-psychoactive cannabinoid-based consumer products.

“We feel very fortunate to have the opportunity to work with Clever Leaves on our mission to develop safe and accessible pharmaceutical-grade cannabis medications of the highest quality. Our partnership will further propel our domestic and international expansion efforts thanks to their unmatched expertise and certifications that meet the highest standards and regulatory compliance equivalencies in most countries,” said Janko Ruiz de Chavez, COO and co-founder of CBD Life.

CBD Life’s current product line is comprised of topicals (including the traditional Hispanic household brand “Mariguanol”), beverages, and food supplements infused with hemp-derived CBD.


Debra BorchardtJune 17, 2021
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4min3640

Jazz Pharmaceuticals plc (Nasdaq: JAZZ) raised its full-year 2021 financial guidance based on the acquisition of  GW Pharmaceuticals, which was bought on May 5, 2021. The May 4, 2021 guidance for revenue was in the range of $2.5 – $2.7 billion. That has been increased as of June 17, 2021, to a range of $3.0 to $3.1 billion. Jazz said it expects to generate 65% of 2022 revenues from products that have been launched or acquired since 2019. The 2021 guidance for a GAAP net loss is in the range of $290 – $125 million.

“We expect 2021 to be another exciting, productive, and transformational year for Jazz and are pleased to update our guidance to include the addition of GW. Our guidance reflects strong execution across our commercial portfolio, continued investment in both our ongoing and planned launches, and strategic investments in R&D to advance therapies to patients in critical need of new treatment options. These investments will support the recent successful launches of both Xywav and Zepzelca, the ongoing growth of Epidiolex, the anticipated launches of JZP458 for ALL or LBL and Xywav in idiopathic hypersomnia, and the rolling launch of Epidyolex in Europe. As part of our continued R&D efforts we also look forward to advancing our PTSD and essential tremor programs, the nabiximols clinical trial program to support a U.S. regulatory approval, and our new cannabinoid research platform,” said Renée Galá, the chief financial officer of Jazz Pharmaceuticals. “We believe Epidiolex has near-term blockbuster potential and expect the addition of Epidiolex and the GW pipeline to deliver double-digit revenue growth, accelerated revenue diversification and substantial shareholder value. With the addition of GW, we are excited to transform the lives of even more patients and their families.”

Still, Jazz noted that the acquisition will be dilutive to both GAAP and non-GAAP adjusted net income per diluted share in 2021. The company said in a statement that on a GAAP basis, this is primarily due to an increase in the amortization of acquisition-related intangible asset and transaction and integration expenses, the amortization of inventory fair value step-up, increased interest expense, and the increase in the number of outstanding shares relating to the GW acquisition. However, Jazz also said that the GW acquisition is expected to be non-GAAP adjusted EPS accretive in the first full calendar year of combined operations and substantially accretive thereafter.

 

The guidance is as follows:

GAAP net loss per diluted share ($4.70) – ($2.00)
Non-GAAP adjusted net income per diluted share $13.40  $14.70

Jazz does expect strong cash flows, which will allow for rapid deleveraging, targeting less than 3.5x net leverage by the end of 2022.


Debra BorchardtJune 17, 2021
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22min5760

To celebrate all of the fathers in our lives this weekend, we have carefully compiled a list of some of the most unique products on the market for dads of all types. Show your appreciation for Dad by gifting him a high-quality cannabis experience with one of the many products in this guide – from calming sleep gummies and chocolates to luxury pre-rolls and flower.

For the Stressed-out Dad

CV Sciences’ PlusCBD Calm and Sleep

Let’s face it, being a dad comes with its own set of challenges. If your dad is constantly stressed, help him unwind with the help of CV Sciences’ (OTC: CVSI) carefully-formulated CBD products. Start their day off right with Calm Gummies, which help ease tension, soothe irritability and contribute to a greater sense of contentment. Each gummy is packed with 10mg of CV Sciences’ award-winning full spectrum hemp extract CBD, L-Theanine and 5-HTP  for positive mood support and mental relaxation without feeling impaired. 

Give your dad the gift of a good night’s sleep with CV Sciences’ Sleep Gummies. These chews aid sleeplessness and tout clinically researched active ingredients including melatonin, magnolia bark, lemon balm and, of course, 10mg of CBD. CV Sciences will also be offering a 30% off promotion for all orders over $100 up until 6/20 (no promo code required)!

Lume Cannabis Co. Extra-Strength CBD Relief Stick

Handmade for extensive healing and soothing, Lume’s extra-strength relief stick contains 1000mg of high-efficiency CBD. It’s infused with arnica extract, which has been said to treat everything from inflammation, bruising and swelling to sprains and severe muscle tension. The Relief Stick is enhanced with eucalyptus, another anti-inflammatory agent with a light and refreshing aroma, and designed to fit just as well into your daily routine as your gym bag.

 

For the Cannabis-Enthusiast Dad

 

PLUS Products, PLUS Strains- Pineapple Express

Combining the potent and fruit-forward force of two strains, Trainwreck and Hawaiian, the name says it all. With a juicy pineapple punch to the palate thanks  to the combination of b-caryophyllene, myrcene and limonene terpenes, these gummies deliver a smooth yet hard-hitting hybrid effect. For an uplifted, chill experience, pop a Pineapple Express gummy and kick back for a relaxing ride. 

 

 

 

Harborside KEY Mini Pre-Roll Pack

Harborside’s Key Mini Pre-roll Packs contain seven strain-specific .5 gram pre-rolls, offering a perfect portion for a single smoke sesh. Grown at Harborside Farms in Salinas, California, this selection of flower is single origin, sustainably grown and strain-specific, coming from a long line of cultivation experience and California cannabis legacy. 

Nugg Club

Nugg Club is a cannabis subscription service featuring full-sized products curated by experts and personalized to each customer. Available in LA and Orange County, this box is perfect for the cannacurious Californian dad. Every Nugg Club Box is priced at $99 and contains 5-7 premium cannabis products worth over $225 in retail value.  With this service, your dad is able to test a little bit of everything and see what they like best. With code CLUBDAD, subscribers can receive $30 dollars off their first box. 

Eyce

For the dad that knows what they’re doing when it comes to cannabis consumption, check out Eyce’s pipes and accessories. Eyce’s mission is to design useful products for an emerging market with creativity and integrity. Value and quality are at the forefront of their drive. Eyce creates products for flower and concentrates that are built to go the distance and bring a superior experience to the user.

For the “New Dad”

Incredibles Snoozzzeberry 

Incredibles Snoozzzeberry is a great gift for the dad who craves some much-needed shut-eye. Infused with both CBN and THC, Snoozzzeberry is perfectly balanced for a well-deserved good night’s sleep. With a lineup full of chocolatey bars, gummies, tarts and mints in fun flavors like “Mile High Mint” and “Monkey Bar,” Incredibles is the perfect introduction to edibles. 

PLUS Products Sleep Cloudberry

Drift off into a restful night of sleep with PLUS Sleep Cloudberry gummies, made with 5mg of THC, 1mg of CBN and 1mg of CBD per piece. Scientifically formulated with a precise blend of cannabinoids, these gummies engage our body’s endocannabinoid system and support our natural circadian rhythm in order to help you fall asleep faster, enjoy continuous restful sleep and wake up feeling refreshed. 

For the Heavy-Hitter Dad

Rythm “Brownie Scout” Flower 

Rythm premium flower is elevated, expertly cultivated and meticulously cured, offering optimal potency, lush aromas and rich flavors. Brownie Scout is one of Rythm’s most popular Indica strains that crosses Platinum Girl Scout Cookies with Stardog Guava made for when it’s time to unwind.

 

Kanha Belts 

Kanha is the first cannabis brand to use nanomolecular technology to produce fast-acting gummies with a quicker onset of around 15 mins and a high absorption rate. While most gummies are only 5mg or 10mg per piece, Kanha Belts come in two 50mg belts that can be broken up into five 10mg servings if preferred.

Gage Cannabis Co. Banana Bread

A cross between Purple Kush and Vietnamese Black, Gage’s Banana Bread is a hybrid strain with 20% THC. Buds range in color from green to dark purple, sometimes almost black. The racy sativa effects of Vietnamese Black balance out with the body high of Purple Kush, making for an awesome, full-spectrum experience.

 

Connected Cannabis Co. Nightshade

The latest release from the industry’s most selective phenotype hunters, Nightshade has a powerful, but not paralyzing high (THC 27.94%). Euphoric yet relaxing, you’ll taste earthy, sweet and gassy notes mixed into one of the best strains on Earth. Offering a strong body high that creeps up on you while smoking, Nightshade hits on the heavier side without the sedative head high. 

For the Luxe Dad

Canndescent Pre-Roll Flight 

Canndescent’s Pre-Roll Flight is a convenient way to sample each of their luxury effects: Calm, Cruise, Connect, Create and Charge. Each pre-roll is beautifully packaged using 100% ultra-premium flower.

 

Hervé Le Mirage

Le Mirage is the French company Hervé’s newest line of sublingual hard candies that are 100% vegan, gluten-free, have no sugar added and are just 2 calories per serving. Le Mirage is a revolutionary new patented system for storing, dispensing and consuming cannabis edibles. Their patented system is dosable, refillable, resealable and child resistant, stylish and discrete, making Le Mirage the perfect accompaniment to golf outings or leisurely hikes. Perfect for the dad on the go. Le Mirage comes in 25mg THC Only Sour collection in sour green apple, sour cherry and sour peach and their premium 25mg THC & 25mg CBD Full Spectrum Line in Peppermint. 

For the Socially-Conscious Dad 

Goddess Bliss Beans by CBD Goddess

Goddess Bliss Beans by CBD Goddess, sister company to Ganja Goddess, are the perfect treat to uplift your dad’s entire day. Each jelly bean contains 10mg CBD, with 40 jelly beans in each jar. CBD Goddess is also giving 10% of sales back during the month of June back of its Goddess Bliss Beans to The Los Angeles LGBT Center, a provider of programs and services for lesbian, gay, bisexual and transgender people whose work spans four categories, including health, social services, housing, leadership and advocacy.

Dog Walkers Pre-Rolls 

These pre-rolls are intentionally sized for walks with your best four-legged friend. The Mini Dog pre-roll is perfect for a quick afternoon stroll while the Big Dog is ideal for those trips to the park with your special pup. A portion of proceeds goes back to deserving animal shelters across the country.

Justice Joints Pre-Rolls 

Justice Joints is the first standalone brand that donates 100% of its profits. It’s currently partnered with the Last Prisoner Project, and directs its profits in support of criminal record expungement, release and reentry programs. 

 

 

For the Modern Cannabis Connoisseur 

Premium Flower: Jushi Holdings Inc’s The Bank
Jushi Holdings’ award-winning Colorado brand, The Bank, is known for its superior plant genetics and next-level cultivation. The brand has been fully reimagined and designed for the modern and specific cannabis connoisseur in its key markets. The Bank offers pre-packaged flower, infused blunts and pre-rolls comprising three tiered lines: Gold Standard, Cache and Vault, each offering varying degrees of quality, availability and price. Currently, The Bank is available at dispensaries across Nevada and Pennsylvania, including Pennsylvania’s BEYOND/HELLO™ locations.

High Life Farms Chief Solventless 

Inspired by the High Life Farms owner’s chocolate lab, “Chief” Solventless is a premium product hand-washed through the ice water extraction technique that High Life Farms uses for all of its treats. The team has spent years developing Chief Solventless rosin to create the “most flavorful and resinous concoctions possible. Available in Michigan, current flavors include Sundae Driver, Tropicana Cookies, StrawGuava, Motorbreath and Chem DOG.

For the Cost-Conscious Dad

4Front Ventures’ Mini Budz 

Don’t let the price point fool you – these high-quality small buds pack a punch. A great way to sample strains, mini budz are available from all of 4Front’s flower brands. For those not concerned with large buds, this is a great option to get flavor and potency without breaking the bank. Mini Budz are available in Massachusetts, Illinois and Washington. 

 

Baker’s Cannabis Co. ½ Ounce Pouch

Baker’s is one of the cannabis industry’s very first value brands. This roll-your-own pouch comes with strain-specific pre-ground cannabis, 40 rolling papers and crutches. Available in indica, hybrid and sativa strains.

For the Dad Who Can Hang

Curaleaf’s Select Squeeze

Select Squeeze uses nanotechnology for a fast-acting cannabis-infused experience similar to that of a summer cocktail (without the hangover). Available in four flavors – Watermelon, Lemon Lime, Strawberry Lemonade and Hint of Sweet – Squeeze allows you to add 5mg doses of THC to all of your favorite beverages so you can join in on the fun in whichever way you prefer.

Papa & Barkley – Releaf Gummies

Available states: CA

Papa & Barkley’s Wild Strawberry Gummies have a juicy strawberry flavor for sweeter times and wilder adventures that can easily be shared with friends. The gummies are made with solventless kief hash – the cannabinoid-rich fruit of the cannabis flower – to ensure each delicious bite maintains the plant’s full spectrum of cannabinoids, terpenes and phytonutrients. Made in small batches in Humboldt using natural ingredients and chemical-free processes, Releaf Gummies are vegan, gluten-free, sugar-free, zero-calorie and keto-friendly, so that everyone can enjoy an epic, true-to-the-flower edible experience. 

Cloud Cover: Frozen Dessert Flower

Crossing Ice Cream Cake and OZ Kush BX2, pick up your favorite FrOZen Dessert strain from Cloud Cover and just kick it at home. Mixing gassiness with the aroma of cookie dough, FrOZen Dessert is tailor-made for a night in while you binge-watch your favorite shows.

 

So whether your dad is a well-versed cannabis enthusiast or is simply looking to destress, look no further than this Father’s Day cannabis gift guide. Celebrate the dads in your life with one of these thoughtful gifts that are guaranteed to show your appreciation for all the father figures in your life this year. 


StaffJune 16, 2021
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7min3580

It’s time for your Daily Hit of cannabis financial news for June 16, 2021.

On The Site

Creso Pharma

Cannabis company Creso Pharma Limited  (ASX: CPH)  (OTCQB: COPHF) is merging with psychedelic treatment company Red Light Holland Corp. (CSE: TRIP) (OTC Pink: TRUFF) to create The HighBrid Lab. The transaction is a reverse takeover of Red Light Holland by Creso Pharma giving Red Light shareholders a 29% premium for their shares. Creso shareholders will own 57% of the new company. The combined company will use the symbol TRIP. The new company is expected to have a cash balance of approximately C$45 million (A$48 million), providing considerable financial flexibility to progress its growth strategy.

Delta 8

If you feel like you’ve been catching a lot of Delta-8 THC content in the media lately, those aren’t just your social media apps hacking your brain. Hemp-derived Delta-8 THC is having a big moment in 2021 in terms of popularity and, most recently, in terms of concerns over legality, safety, and accuracy. This hot new cannabinoid has been branded as “legal marijuana” as the main intoxicating compound in cannabis but one most commonly derived from hemp for commercial use. Social listening data reveals that conversations around Delta-8 grew by a whopping 163% from December 2020 to April 2021, but all is not rosy for this latest trend in cannabis or for companies jumping into production to respond to the surging interest.

Arizona, Colorado, Delaware, and Montana are among the states that have explicitly banned sales of Delta-8 and at least four other states have already removed it from the shelves or otherwise restricted market access. The 2018 Farm Bill categorically removed hemp from the definition of marijuana and modified the definition of tetrahydrocannabinol to exclude tetrahydrocannabinol in hemp. The Drug Enforcement Agency’s interim rule turned that segment of the Farm Bill on its head, declaring derivatives of hemp containing delta-9 tetrahydrocannabinol in excess of .3% THC and all synthetic cannabinoids as controlled substances. 

Connecticut

The state of Connecticut keeps trying to pass the legalization of adult-use cannabis but seems to be thwarted each time. Marijuana Moment reported that in the state’s recent special session, the Senate approved a full legalization bill by a vote of 19-12. A week ago, during the state’s normal legislative calendar, lawmakers passed a similar bill, but Republicans pushed back. The session ended and the measure was moved to the special session. Although Republicans got the blame for the delay, several state Democrats have also expressed concerns. Governor Ned Lamont is mostly supportive of full legalization but has expressed problems with the social equity rules.

In Other News

PsyTech Inc., a leading source of education, clinical care and clinical tools for the fast-growing psychedelic medical sector closed a $3.81 million oversubscribed Series A funding round.  The round was led by Ambria Capital as well as investors in the psychedelics, banking, and medical practice sectors.

 “We are grateful to our new and existing investors who have shown material support for our mission to accelerate the mainstreaming of effective psychedelic-assisted therapies,” said Hayim Raclaw, Chief Executive Officer for PsyTech Inc. “Closing this round enables us to empower healthcare providers with professional-grade software tools, and deliver integrative care to patients. We have a complementary focus on educating the public on the efficacy of psychedelic-assisted therapies and combat the retrograde stigma surrounding their use in healthcare.”

Mydecine Innovations Group (NEO: MYCO) (OTC: MYCOF) announced the launch of its in-silico drug discovery program in conjunction with researchers at the University of Alberta. Led by top computer-aided drug development expert, Dr. Khaled Barakat, the program is focused on developing artificial intelligence/machine learning (AI/ML) supported drug screenings, including both the ability to build drugs from the receptor up and assess drugs around the receptors of Mydecine’s choosing. With its broader R&D capacity in drug development up and running, the in-silico program will enable the Company to more rapidly screen hundreds of thousands of new molecules without the need to produce them, allowing Mydecine to focus on the strongest potential therapeutics for its chemical and natural development programs. Mydecine will also be able to more efficiently screen its proprietary library of novel compounds designed by Chief Science Officer Rob Roscow and Advisory Board member, Dr. Denton Hoyer.


Julie AitchesonJune 16, 2021
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6min5100

If you feel like you’ve been catching a lot of Delta-8 THC content in the media lately, those aren’t just your social media apps hacking your brain. Hemp-derived Delta-8 THC is having a big moment in 2021 in terms of popularity and, most recently, in terms of concerns over legality, safety, and accuracy. This hot new cannabinoid has been branded as “legal marijuana” as the main intoxicating compound in cannabis but one most commonly derived from hemp for commercial use. Social listening data reveals that conversations around Delta-8 grew by a whopping 163% from December 2020 to April 2021, but all is not rosy for this latest trend in cannabis or for companies jumping into production to respond to the surging interest.

Arizona, Colorado, Delaware, and Montana are among the states that have explicitly banned sales of Delta-8 and at least four other states have already removed it from the shelves or otherwise restricted market access. The 2018 Farm Bill categorically removed hemp from the definition of marijuana and modified the definition of tetrahydrocannabinol to exclude tetrahydrocannabinol in hemp. The Drug Enforcement Agency’s interim rule turned that segment of the Farm Bill on its head, declaring derivatives of hemp containing delta-9 tetrahydrocannabinol in excess of .3% THC and all synthetic cannabinoids as controlled substances. 

Delta-8, which does not occur in levels sufficient to make commercial products in a cost-effective manner and therefore must be processed from CBD, lands it in the “synthetic” category according to the DEA definition. Some argue that this categorization is flawed given that Delta-8 is a naturally existing phytocannabinoid and that converting CBD to THC occurs via isomerization (the transformation of one isomer into another)—a process that does not fall within the DEA’s definition of a synthetic process. Though solid regulatory footing remains hard to attain as the debate rages on, cannabis companies are forging ahead with new products and campaigns, with mixed results.

Delta 9 or Delta 8?

A recent study by Leafreport found that out of 38 products tested, 63% contained the wrong amount of Delta-8 and more than 50% had illegal (over .3%) levels of Delta-9, containing as much as 15.2% THC. Delta-9 THC and cannabis plants that contain it are federally illegal with the exception of hemp, which contains too little (.3% or less of dry weight) Delta-9 to cause psychoactive effects. 34% of products in the Leafreport study did not clearly list Delta-8 content on the label or online product description, and 68% contained the wrong amount Delta-8 THC. The products most vulnerable to misreported Delta-8 levels were pre-rolls and gummies. Leafreport used a rating system based on the recommendation of industry experts that Delta-8 products have anywhere from 90% to 110% of the amount stated on the label. Using this metric, a full 32% of the products tested merited an “F” (Fail) accuracy rating.

Women Are The Majority of Buyers

The Brightfield Group, a CBD and cannabis consumer data and marketing intelligence company, recently conducted a study to assess Delta-8 consumer, product, and regulatory trends and found that only six months into the Delta-8 trend, 23% of Americans were aware of it, particularly among younger, city-dwelling cannabis users. Brightfield’s numbers show that for a growing segment of the population, Delta-8 is an affordable, convenient way to experience psychoactive cannabis, particularly where Delta-9 is illegal. Women make up the majority (53%) of consumers and curiosity is still the driving factor for those who purchase Delta-8. A full 20% of Delta-8 consumers do not use Delta-9 THC, which points to something unique about Delta-8. Anecdotal evidence suggests that may be a smoother, milder high and fewer side effects like anxiety and paranoia. 

It remains to be seen whether evolving regulations will grant companies the latitude to continue capitalizing on consumer interest as well as the known and as-yet-unknown applications of Delta-8, but as long as Delta-8 keeps a legal spot on the shelves in some states, there will be the supply and demand to keep it there.


Debra BorchardtJune 16, 2021
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4min2860

The state of Connecticut keeps trying to pass the legalization of adult-use cannabis but seems to be thwarted each time. Marijuana Moment reported that in the state’s recent special session, the Senate approved a full legalization bill by a vote of 19-12. A week ago, during the state’s normal legislative calendar, lawmakers passed a similar bill, but Republicans pushed back. The session ended and the measure was moved to the special session. Although Republicans got the blame for the delay, several state Democrats have also expressed concerns. Governor Ned Lamont is mostly supportive of full legalization but has expressed problems with the social equity rules.

According to the Hartford Courant, “Gov. Ned Lamont is threatening to veto a bill legalizing and taxing marijuana because it does not go far enough in addressing the historical trauma of the war on drugs and ensuring equity in the state’s budding recreational marijuana industry.” Paul Mounds, Lamont’s chief of staff said the law, “does not meet the goals laid out during negotiations when it comes to equity and ensuring the wrongs of the past are righted. To the contrary, this proposal opens the floodgates for tens of thousands of previously ineligible applicants to enter the adult-use cannabis industry.”

Mounds said the measure “creates equity in name only by allowing these individuals expedited opportunity to obtain access to the marketplace.” For example, it could have opened the door for a person from a wealthy community who was once caught with a single joint to become an “equity applicant.” An amendment, however, was adopted in an attempt to address that concern by setting an income limit for those applicants.

The Courant reported that the amendment stated that those applicants must have an average household income of less than 300% of the state median over the three tax years immediately preceding the person’s application or was a resident of a disproportionately impacted area for no less than five of the 10 years immediately preceding their application. Other criteria include people who were incarcerated for the sale, possession or cultivation of cannabis or had a parent, spouse or child who was imprisoned for such an offense.

Sen. Gary Winfield (D) said, “The conversation about cannabis legalization also is a conversation about policing in certain communities, the way policing has happened. The governor has his role and we as a different branch of government have our role. We in the Senate have performed our role and the House has the opportunity tomorrow to perform theirs. I hope that the governor reconsiders but he has his role to fulfill and he’ll do that.’’

The state is coming under increasing pressure for full legalization as its neighboring states have moved headed. Massachusetts is already selling adult-use cannabis and New York is slated to begin sales in April 2022. The state legalized medical marijuana and as of 6/13/2021, there are 53,955 registered patients. There are 18 dispensaries and four producers. Medical marijuana is exempt from the state sales tax, and revenue officials do not track the sales. Massachusetts recorded $547 million in cannabis sales by November 2020 and topped a billion in sales in just two years.


Debra BorchardtJune 16, 2021
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6min7140

Cannabis company Creso Pharma Limited  (ASX: CPH)  (OTCQB: COPHF) is merging with psychedelic treatment company Red Light Holland Corp. (CSE: TRIP) (OTC Pink: TRUFF) to create The HighBrid Lab. The transaction is a reverse takeover of Red Light Holland by Creso Pharma giving Red Light shareholders a 29% premium for their shares. Creso shareholders will own 57% of the new company.

The combined company will use the symbol TRIP. The new company is expected to have a cash balance of approximately C$45 million (A$48 million), providing considerable financial flexibility to progress its growth strategy.

Red Light Holland’s current Chief Executive Officer, Todd Shapiro, will lead HighBrid as CEO and Director.

“The company understands the sensitive complexities of the ingredients we deal with, while ensuring we continue to make a bold yet careful push to provide and increase access for immediate revenue generation and brand expansion. Our core principle is to compliantly lead with edgy consumer packaged goods focused on positive outcomes, while balancing a responsible, regulated, and educational use approach through technology and innovation,” said Todd Shapiro CEO and Director of Red Light Holland. “Merging with Creso Pharma, who also has significant cash on hand, and formulating The HighBrid Lab, with Bruce Linton as Chair of the Board, means we can expand our premium product offerings globally in the high growth CBD, THC and psychedelic sectors. Together we are bullish on developing world-class products with naturally occurring ingredients in clever and innovative ways for both humans and pets, which completely aligns with Creso Pharma’s R&D and sales approach. The HighBrid Lab ramps up our objectives for near and long-term growth targets, while potentially being a part of positive change. The HighBrid Lab is a perfect name combining psychedelics and cannabis coupled with recreational use, science, and technology. This is a monumental day for all of our shareholders and now their pets!”

Former Canopy Growth founder Bruce Linton is expected to join as Non-Executive Chairman of The HighBrid Lab’s board of directors. The board of directors will consist of seven members, three of which, including Mr. Shapiro, will be current directors of Red Light Holland, and three of which, will be directors or nominees of Creso Pharma.Mr. Bruce Linton is expected to be the seventh member, as non-executive Chairman. Mr. William Lay, previously Associate Director, M&A at Canopy Growth appointed Executive Vice President and Chief Strategy Officer to assist in growth trajectory.

“Having worked with both the Creso Pharma and Red Light Holland teams closely in the past, I am really excited by the potential this combination brings. As a merged company, The HighBrid Lab has access to four of the highest growth industry segments around, and the team, board and advisory group to make real progress within these verticals. I’m really looking forward to rolling up my sleeves and helping The HighBrid Lab get to work!” said Bruce Linton, who is expected to join the Combined Company’s board as non-executive Chairman.

Growth Objectives

HighBrid said its growth objectives include expanding market and brand leadership in recreational psilocybin. Applied science and innovation supporting long-term opportunities in psychedelics with both naturally occurring and pharmaceutical grade drug discovery aiming for advanced and approved product offerings through controlled lab environments via the pending acquisitions of Halucenex and Mera Life Sciences. Creso Pharma has conditionally agreed to acquire Canada-based psychedelics life sciences company, Halucenex, which has submitted an application for a Dealer’s License under both the Narcotics Control Regulations and Part J of the Food and Drugs Regulations. Red Light Holland recently extended its LOI with Mera Life Sciences and continues discussions regarding a previously announced potential investment in St. Vincent and the Grenadines, which is expected to be a part of the Combined Company’s applied science platform.

Despite the move towards psychedelics, the company said it will continue scaling its recreational cannabis offering in North America by focusing on increasing market share in Canada and taking advantage of its CSE listing to advance the introduction of products into the US.

In addition to separate paths for cannabis and mushrooms, the company said it plans on introducing recreational product offerings under existing Red Light Holland brands with applied science including combined CBD and mushroom products and ready to drink products with mushrooms, CBD and THC, while focusing on adding adjacent iMicrodose product lines with ingredients including CBD, THC and functional mushrooms, as and where permitted to do so. Already the market is seeing the introduction of CBD combinations with various legal mushroom products like Lions Mane, Reishi and Cordyceps.

 


StaffJune 15, 2021
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5min4300

It’s time for your Daily Hit of cannabis financial news for June 15, 2021.

On the Site

Fire & Flower

Fire & Flower Holdings Corp. (OTCQX: FFLWF) announced its financial and operational results for the fiscal first quarter ending May 1, 2021 with revenue rising 90.7% to $44.1 million. However, Fire & Flower also delivered a net loss of $61.6 million versus last year’s $12.7 million for the same time period. The company blamed the net losses on a $54.1 million loss on the revaluation of derivative liabilities in the current quarter. The company said it was the fourth consecutive quarter of positive Adjusted EBITDA of $2.3 million as compared to an Adjusted EBITDA loss of $1.4 million for the first quarter of 2020. In addition, the company reported a gross profit percentage of 37.5% compared to 32.6% for the same period in 2020.

KushCo

KushCo Holdings, Inc. (OTCQX: KSHB) reported preliminary and unaudited financial results for its fiscal third quarter ended May 31, 2021. KushCo said it expects its preliminary and unaudited fiscal third quarter 2021 revenue to be between approximately $27.5 million and $28.0 million, compared to approximately $22.3 million for its fiscal third-quarter 2020. This is a decline from the $32.9 million in revenue in the second quarterThe 21% to 26% expected increase in revenue is being driven primarily by an increase in sales to KushCo’s top 25 customers, which consist of leading multi-state operators (MSOs), licensed producers (LPs), and brands. Revenue from these top 25 customers is expected to increase 60%+ to at least $20.5 million in revenue in fiscal third-quarter 2021 from $12.7 million in the same year-ago period. KushCo said it expects to report its complete fiscal third-quarter 2021 financial results in early July 2021.

In Other News

Col-Care

Columbia Care (OTC: CCHWF) has entered into a definitive agreement to acquire Medicine Man Denver, a premier vertically integrated cannabis company, in a deal valued at $42M.The upfront consideration of $42M, comprises of $8.4M in cash and $33.6M in stock, representing a multiple of about 4.5x projected 2021 EBITDA.The transaction terms also include a potential additional milestone payment in 2022 if certain performance targets are met, Columbia Care said.The acquisition of Medicine Man further solidifies Columbia Care’s position as the most scaled retailer, cultivator, and manufacturer in Colorado, the company said.The deal will add one cultivation facility and four dispensaries, including one co-located adult-use and medical location and three adult-use facilities to Columbia Care’s national footprint.The transaction is expected to close in Q4 2021.

Charlotte’s Web

Charlotte’s Web (OTC: CWBHF) has appointed Wessel Booysen as Chief Financial Officer, to succeed CFO Russ Hammer, who will retire in August at his two-year anniversary with Charlotte’s Web.Mr. Hammer will assist Mr. Booysen in a planned two-month transition, serving as Senior Executive Advisor to the CFO during the transition period.Mr. Booysen is a top-tier executive with more than a decade of global executive leadership in finance, international expansion and strategic M&A at Molson Coors Beverage Company. Most recently served as Chief Executive Officer and Managing Director at Molson Coors Beverage in Melbourne, Australia.

Field Trip

Field Trip Health Ltd. (TSX: FTRP; FTRP.WT; OTCQX: FTRPF) announced that it has completed initial drug metabolism and pharmacokinetic (“DMPK”) studies for FT-104, its novel psychedelic compound in development. In-vitro preclinical studies confirmed that metabolism of FT-104 is rapid and complete in several animal species, converting FT-104 into the active form of the drug with relatively few metabolites, validating FT-104’s action as a prodrug for the underlying molecule (the “active”) from which FT-104 was derived. The active is a known psychedelic molecule which has yet to be disclosed.


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The Green Market Report focuses on the financial news of the rapidly growing cannabis industry. Our target approach filters out the daily noise and does a deep dive into the financial, business and economic side of the cannabis industry. Our team is cultivating the industry’s critical news into one source and providing open source insights and data analysis


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