Cultivation Archives - Green Market Report

Debra BorchardtAugust 30, 2021
hemp-2.jpg?fit=960%2C640&ssl=1

6min16830

As hemp prices continue to fall, farmers are leaving. When the Farm Bill of 2018 passed, farmers rejoiced at the ability to legally grow hemp. Visions of massive demand for CBD products caused farmers to plant thousands of acres. Indeed, it seemed a sure-fire thing. Seemingly overnight numerous products on retailers’ shelves had some version with CBD included. Body products, foods, and supplements all touted the benefits of having CBD added. Then it all fell apart as several problems combined to crash the market.

The problems ranged from a lack of guidance from the FDA, falling prices, less demand for CBD than expected, weather-related issues, and a pandemic. The crops planted in 2019  led to a glut of biomass that persists today. Farmers that were unable to make any money have left the business leaving only the truly committed. 

Price Crash

The glut of biomass caused the prices to slide as the market worked its way through the supply. Hemp Benchmarks’ latest August report wrote, “CBG Biomass and extracted CBG products also saw their observed wholesale prices continue to slide this month. In regard to Crude CBD Oil, Hemp Benchmarks observed USDA Certified Organic and THC Free product that helped to buttress the category’s spot price somewhat, but this month’s assessed price for Crude saw an overall decline on an increase in the frequency of reported deals settling under $100 per kilogram.” Indoor-grown CBD flower is down 3% from July, greenhouse-grown CBD flower has dropped 5% from July and only outdoor grown CBD flower saw its price rise by 7% from July according to the Benchmarks data.

One example of the drastic fall in prices comes from North Dakota, where Veronica Michael told the Hemp Benchmark, “When we first started extraction [in the spring of 2019], crude had been around $1,400 [per kilogram],” she remembered. “I got a call from two buyers in the last two weeks. One was in Colorado and one was in Washington. Both were offering from about $80 to $120 [per kilogram] for crude. That’s ridiculously low. When you look at distillates and isolates, the numbers aren’t good either. People want to buy distillates and isolates for less than we can make them for unless you’re a really big producer. It makes me nervous and scared for the future.”

Farmers Leaving

Hemp Benchmarks reported that it counted 10,881 hemp farming licenses issued nationwide for the 2021 season, down 45% from 19,799 hemp cultivation licenses documented in 2020. Brett Eaton, CEO and founder of Green Cherry Organics in Fort Collins, Colorado Told Hemp Benchmarks that “24 of the 28 hemp farmers he works with regularly are not planting hemp this year. Eaton’s company created the first USDA-certified organic hemp greenhouse in the United States. It also sells its CBD products and clones nationally, and works with hemp farmers in 11 different states.”

With no one to buy the hemp or prices so low that it doesn’t cover the expense of growing, many farmers returned to more traditional crops whose prices have soared. Corn and wheat crops affected by droughts have seen prices at three-month highs. The droughts in some areas contrast with overly heavy rains in other areas. The market has also seen a shift where hemp is being planted. Colorado hemp acres have fallen from 2020 to 2021, while Texas and Illinois have dramatically increased planting. Oregon, which has been a big state for hemp farmers, is seeing those acres face the criticism that the hemp plantings are masking actual illegal THC heavy cannabis farming. 

Outlook

For now, the outlook remains challenging. Many of the farmers cited in the August Hemp Benchmark report said that if the FDA would settle the issues around hemp regulations the market could recover. However, the FDA seems to be punting back to Congress and isn’t moving to take a stand. No one can do anything about the weather or pandemic forced quarantine issues. The industry could be helped by consolidation, but that doesn’t look to be happening. The THC side of the cannabis industry is awash in M&A deals, but the hemp side has just seen businesses close versus being acquired or merging. 

One thing that could help with the 2019 glut is that some of the remaining product is now turning brown and moldy. That suggests that at some point CBD brands will need to buy new CBD products and with fewer farmers planting less acreage, prices would surely rise. Still, the hemp farming industry is clearly becoming one for long-term players. It is not the quick turn on investment that the THC cannabis industry enjoys. 


StaffAugust 9, 2021
plant2.jpg?fit=960%2C640&ssl=1

7min7400

Village Farms International, Inc. (NASDAQ: VFF) (TSX: VFF) announced its financial results for the second quarter ended June 30, 2021. Total sales grew 166% to $34 million in the quarter versus last year’s $14.1 million for the same time period. Village Farms net income grew 270% from $800,000 in 2020 to $3.2 million in the second quarter of 2021.

“We are so proud to report another record quarter for Pure Sunfarms’ retail branded sales, which grew 22% sequentially – the fourth consecutive quarter of 20%-plus growth – which contributed to total net sales growth of 38% sequentially, once again outpacing the broader retail cannabis market as we continue to gain national market share,” said Michael DeGiglio, CEO, Village Farms. “Importantly, we are also reporting a 192% sequential increase in adjusted EBITDA for Pure Sunfarms this quarter to C$9.1 million, a record since our Retail Branded Sales launch, and further evidence of the importance of our large-scale, low-cost cultivation capabilities combined with an exceptional management team and the right brand and product strategy.”

Produce Takes A Beating

The company reported that produce sales decreased (4%) with higher production volumes offset by lower pricing as the tomato industry experienced one of the lowest pricing environments for tomatoes-on-the-vine and beefsteak varieties in the past ten years versus strong pricing due to elevated demand amidst pandemic-related restrictions in the second quarter of 2020. Village Farms said there were indications that pricing is moving back to historical levels, however, year-over-year comparisons remain challenging.

The produce adjusted EBITDA was a loss of ($3.9) million, which excluded a $1.4 million incremental electricity expense in Texas due to temporarily elevated pricing for a five-day period in February (more than 100- times higher than the prices observed in early 2021 and historical February pricing). Texas experienced an unprecedented winter storm which resulted in power supply constraints.

DeGiglio added, “We expect our Produce business to normalize toward the end of this year with indications that prices are trending back to historical levels, as production volumes have improved throughout 2021. Our Texas produce greenhouse operations, with a replacement value in excess of $300 million, and located in one of the best growing environments for cannabis in the continental United States, represent one of our potential pathways to participate in the U.S. high-THC cannabis market. We continue to operate and manage these facilities for this optionality.”

Cannabis

Village farms said its cannabis was the top-selling brand* of dried flower products with the Ontario Cannabis Store (by kilograms sold and dollars sold) for the quarter ended June 30, 2021, and remained the top-selling brand of dried flower products with the OCS (by kilograms sold and dollars sold) for the 21-month period since its retail branded sales launch in October 2019. The company also claimed it was the top-selling Licensed Producer of dried flower products with the OCS (by kilograms sold and dollars sold) for the quarter ended June 30, 2021, and was the top-selling brand of dried flower products in Alberta for the quarter ended June 30, 2021, and monthly since October 2020 (by dollars sold). Market share performance data cited has been calculated by Pure Sunfarms from sales information provided by Buddi retail store data from over 300 retailers across Alberta and British Columbia as of June 30, 2021.

Consolidated Results

The consolidated results include all three of the company’s operating segments, which include produce, cannabis and clean energy, along with all public company expenses. The remaining 41.3% interest in Pure Sunfarms was acquired by Village Farms on November 2, 2020; for the three and six months ended June 30, 2021, the operating results of Pure Sunfarms are consolidated in the Consolidated Statements of Income (Loss), and for the three and six months ended June 30, 2020, Pure Sunfarms’ results are included in equity earnings from unconsolidated entities in our Consolidated Statements of Income (Loss).

Sales for the three months ending June 30, 2021, were $70 million as compared to $47 million for the three months ended June 30, 2020. The increase in sales was primarily due to the inclusion of Pure Sunfarms’ Q2 2021 revenues of $24 million and an increase in produce supply partner sales of $1.8 million, partially offset by a decrease in our own produce sales of ($3,676) and VFCE power sales of ($151). The produce supply partner sales increase was due to higher volumes of pounds sold of tomatoes, peppers, cucumbers and mini-cucumbers.

Net loss for the three months ended June 30, 2021 was ($4.5 million) as compared to ($119 million) for the three months ended June 30, 2020. The increase in net loss was primarily due to a lower gross margin from the produce operations and higher corporate share-based compensation, partially offset by an improved operating profit for Pure Sunfarms in the three months ended June 30, 2021 as compared to June 30, 2020.


Julie AitchesonAugust 3, 2021
hemp.jpg?fit=960%2C638&ssl=1

5min14780

July 2021 saw record-setting temperatures in parts of the country, alarming spikes in Delta variant Covid infections, and large numbers of Americans returning to summer vacationing after having last summer’s dreams of ocean breezes and lakeshore barbecues dashed by the pandemic. It was also a notable, if not promising month for hemp. Hemp Benchmarks, a division of New Leaf Data Services and leading provider of financial, business, and industry data for the North American hemp markets, recently issued its report for July, which touches on some of the most high-profile talking points of the hemp market to date.

Wholesale cannabis prices have been experiencing a steady decline overall, with the exception of Crude CBD Oil and Broad Spectrum CBD Distillate. These products saw modest price rises in July but still fell short of the prices they topped out at a few months ago. There have been increases in transaction frequency and volume for CBD Biomass and extracted CBD products thanks to strong demand for delta-8 THC, which is synthesized from these products, but this has not been sufficient to move the needle on prices. Despite a steady demand, assessed prices for Delta-8 THC Distillate and Smokable CBD flower both dropped for the second month running, with indoor and greenhouse-grown products earning higher rates from buyers.

Delta-8 Demand

You might wonder why, with its steady-and-still-growing demand among consumers, Delta-8 THC has not been the rising tide that lifts all boats in terms of hemp sales. It may be due in part to state-by-state regulations and restrictions regarding its sale and use. As of July 1, The Connecticut Department of Consumer Protection established that businesses may no longer offer or sell products made using hemp or hemp-derived products with any concentration of THC, including deltas-7,8,9 and 10. A Senate bill signed into law on June 22, 2021 affirmed that products containing deltas-7,8,9 and 10 may only be sold by licensed cannabis retailers or medical marijuana dispensaries. New York has instituted similar restrictions. Delta-8 is also facing some opposition in states with legal cannabis markets as it is cheaper to manufacture than cannabis, is not taxed, and is cheaper to produce.

On the agricultural side, there has been an ongoing decline in the amount of acreage devoted to hemp production in 2021 due to farmers downsizing operations, fewer startups, and those who have cultivated in the past choosing not to grow this season. Meanwhile, existing hemp acreage endured threats posed by extreme weather conditions and the continued onslaught of Covid-19. 

In better news, fiber hemp is getting increased interest from farmers this year as a less volatile corner of the hemp market, being less prone to fluctuation due to changing regulations governing its use. Innovations in the industry abound as interest surges, such as the development of more precise and efficient processing equipment and proprietary technologies that meet the unique needs of customers. This is not to say that no hurdles exist, including developing cultivars that produce higher yields to make fiber hemp economically viable for farmers and the lure of growing other more financially rewarding row crops over hemp. And while there is less controversy around fiber hemp as opposed to hemp grown for CBD products, there is still a strong need for uniformity of regulation between states and better infrastructure in order for this market to flourish. 

The overall decline of the hemp market points to dramatic consolidation, a trend borne out by new data from The Brightfield Group revealing that the number of brands in the CBD industry has dropped from 3,500 at the end of 2019 to 2,000 today. Still, with new innovations on the rise and Delta-8’s stubborn but steady ascendance, there is hope that the rebound of the hemp market will not be a matter of “if” but “when”.

 


Debra BorchardtJuly 29, 2021
hemp_field.jpg?fit=960%2C600&ssl=1

9min13440

Delta-8 and smokable flower are the two products keeping hemp framers alive. The regulatory loophole that has allowed Delta-8 to be sold legally is also causing legal confusion. Delta-8 is a cannabis product that can be derived from hemp, but still give the consumer a light psychotropic experience. Some states have issued restrictions around the product, while others haven’t addressed it at all. Either way, the demand has been a blessing to hemp farmers who planted lots of acres in 2019 expecting a surge in CBD products, only to see the market contract and prices plummet. 

Hemp Benchmarks reported that after rising 4%in May, the average per-kilogram price for delta-8 THC distillate fell 1% in June to $1,215. “Notably, both the low and high ends of observed transaction data – $900 and $1,650 per kilogram – were up compared to May.”

In Georgia, Reginald Reese of Green Toad Hemp Farm told Hemp Benchmarks that delta-8 THC was here to stay. “The beauty of it is, Georgia refused the [delta-8] ban,” he said. “We have the right as licensed hemp growers to use every part of that hemp.” Reese also told Hemp Benchmark that he believes efforts to ban delta-8 THC are part of a “full-court press” from the businesses participating in licensed, state-legal marijuana industries, which do not want the competition. 

Smokable Flower Grows

The other product that has been welcomed by the farmers is smokable flower. The Benchmark reported that as of June 2021, the number of square feet registered for indoor or greenhouse hemp production – which is typically for the purpose of producing smokable CBD flower – is up significantly relative to last year. “Hemp Benchmarks has documented over 168.2 million square feet registered for indoor or greenhouse production. This figure is up 328% compared to over 39.5 million square feet recorded in June 2020 and up 85% from over 90.8 million square feet ultimately documented by the end of last year.”

It seems farmers are leaving the outdoor growing and focusing on indoor growing in order to fulfill smokable flower demand. The Benchmark report documented that smokable CBD Flower has maintained its value in the U.S. hemp wholesale market better than perhaps any other hemp-CBD product. “Flower grown indoors or in greenhouses also typically commands a premium price compared to that cultivated outdoors.”

The Benchmark report said that smokable CBD Flower saw its average price decline in June after cresting above $300 per pound in May. “Despite some reports of still-stagnant demand for CBG, the price for smokable CBG Flower rose 15% in June to average $326 per pound, exceeding the price for its CBD counterpart. The significant increase in the assessed price for CBG Flower this month follows an over 50% jump observed in May.” This shift away from biomass and towards flower farming could potentially stabilize the biomass market. A reduction in supply could help wholesale prices. 

Grasshoppers?

The problems affecting hemp crops this season could end up helping reduce the glut of hemp inventory. Excessive heat and drought in the western part of the U.S. have affected hemp farmers. Wildfire threats and water reductions have also conspired to challenge hemp farmers. And if that wasn’t bad enough – it seems grasshoppers love warm, dry weather. 

Last year, farmers fought grasshopper infestations and it looks like this year conditions are ripe for an even bigger outbreak. The Hemp Benchmarks June report noted that the U.S. Department of Agriculture is said to be taking steps to mitigate damage to crops and rangelands by spraying pesticides in areas where infestations are likely to occur, including roughly 3,000 square miles of Montana, which is home to significant hemp production, primarily for grain. 

Less Hemp Acreage

Hemp Benchmarks reported that there is less hemp being grown as farmers head into the 2021 season. Several reasons have caused the less than stellar outlook for the market. A glut of biomass and CBD caused a plunge in prices reducing the profitability of the crop. Farming more mainstream products have become a better investment. The hemp market has also been affected by a lack of regulatory guidance has also caused farmers to back off from planting more acreage. 

Hemp Benchmarks said it has documented the following hemp production licensing and acreage data for 2021: 

  • 8,298 licenses issued (down 8% from 9,066 counted in June 2020; down 58% from 19,799 ultimately documented for 2020); 
  • 107,702 acres registered for outdoor production (down 55% compared to 236,732 acres documented in June 2020; down 75% from 429,300 ultimately documented for 2020).

CBD Collapse

It seemed that almost every product on the retail shelves had some form of CBD in it. Food, beauty products and supplements popped up on every retail counter. The future looked bright for hemp farmers, but the demand didn’t follow at the expected levels. Thousands of CBD companies sprang up overnight and the flood of products created a confusing and competitive landscape. 

A new Brightfield Group report says that the CBD industry has lost more than 1,000 players in the past 12 months—some through corporate consolidation and others to bankruptcy. Hemp Benchmarks also quoted farmers who said that there was a lot of low-priced inventory on the market due to bankrupt companies. Earlier this year the Phoenix Business Journal reported. that Integrated AG, the parent company of Integrated CBD, filed for Chapter 11 bankruptcy protection on Jan. 20 and disclosed over $20 million in outstanding debt. 

Despite all the negative news, last month California-based Kadenwood, a privately held CBD consumer packaged goods company, completed a $30 million cash Series B capital raise. The company said it will use the money to buy advertising and acquire more companies. Kadenwood said the raise also includes a $20 million media campaign to raise brand awareness, bringing the total value to $50 million.


StaffJuly 28, 2021
growGeneration-logo.jpg?fit=960%2C609&ssl=1

4min13240

GrowGeneration Corp. (NASDAQ: GRWG ) is at it again and the latest acquisition is HGS Hydro, the nation’s third-largest chain of hydroponic garden centers, with six stores across Michigan and a seventh store slated to open in the fall of 2021. This transaction is expected to close before the end of the fiscal year-end 2021. Founded in 2015 by Rocky Shaeena, HGS Hydro is the largest chain of hydroponic garden centers in the state of Michigan and generated approximately $50 million in revenue in 2020.

“We are excited to add HGS Hydro to our portfolio of stores before year-end, with its impressive leadership and commercial teams. The addition of HGS Hydro will propel Michigan to GrowGen’s second-largest state behind California. Michigan is one of the fastest-growing states for medical and recreational cannabis sales.” said Darren Lampert, GrowGen’s CEO. “We look forward to building on HGS Hydro’s experience as we continue to expand our commercial footprint. This acquisition represents our continued focus on purchasing ‘best of breed’ hydroponic operations in the U.S. and strengthening our management team with seasoned veterans from our industry.”

When completed, the transaction will also bring the total number of GrowGen hydroponic garden centers in Michigan to 14 and the total number of stores to 65. The new GrowGen locations will include Shelby TownshipSouthfieldSterling HeightsHazel ParkWalled LakeAlbion, and Imlay City, Michigan. GrowGen will announce its second-quarter results on August 12.

“The combination of HGS Hydro and GrowGeneration will further solidify GrowGen’s leadership position as the nation’s largest chain of hydroponic garden centers. As one of the pioneers of our industry, we are excited to bring our years of experience, insight, and relationships to the GrowGen team to assist in the Company’s continued growth and success,” said HGS Hydro’s CEO Rocky Shaeena.

“At HGS Hydro, my biggest priority has always been serving our loyal customers and providing an abundance of inventory at all times.  We have grown tremendously as a company in the past, and I believe merging with GrowGeneration will help us continue to grow with the best service and selection possible for our customers,” said Chris Kiryakoza, HGS Hydro’s COO.


StaffMay 6, 2021
Croptober-PostCard-2.png?fit=1200%2C800&ssl=1

5min19150

While millions of Americans are getting ready to enjoy the summer for the first time in over a year, the cannabis industry is already gearing up for the upcoming fall harvest. Taking place between October and early November, the period is called Croptober, and it is a time when roughly 80%-85% of the cannabis industry’s outdoor cannabis is harvested. 

The reason why the industry harvests the majority of outdoor cannabis during this specific period has to do with the plant itself. Cannabis is an annual plant, which means it lives out its entire life cycle in a single growing season. 

Planted in the early Spring, the cannabis plant starts to produce buds in Fall as the days start to shorten, typically becoming ready for harvest around mid-October. For outdoor cultivators, this is the only time of the year they will harvest their crop, so it is both a time of celebration and great stress.

In many of the parts of the country where cannabis cultivation is big business, like the fabled Emerald Triangle in Northern California, Croptober has taken on an air akin to many of the harvest festivals celebrated throughout the world. 

Cannabis farms often give tours, parties are thrown, and while consumers can’t pick buds off the plant like apples, there is an influx of cheap high-quality cannabis. It is this celebratory atmosphere that first attracted Case Mandel, the Co-Founder of Cannadips, to set up shop in Humboldt County.

“I first visited Humboldt County in 2003 when I right out of High School,” Mandel recalls. “There were so many beautiful farms and incredible cultivators. I was completely astounded.”

Cannadips CBD manufacturers a smokeless CBD pouch that works as a dipping alternative. With a retail footprint of 6,000 stores, Cannadips CBD is one of the area’s largest hemp manufacturers.  Cannadips also manufactures a cannabis pouch in Humboldt County as well.

Looking to draw more attention to the season, Cannadips recently announced its first annual Croptober Getaway Sweepstakes where five winners are given an all-expenses-paid trip to Humboldt County to experience some of California’s most prominent cannabis farms and experience Croptober first-hand. The winners will also be treated to a party at the historic Arcata Theater Lounge, as well as a relaxing tour of Humboldt Count’s redwood forests and beaches. 

“Humboldt is not what they see on Netflix’s Murder Mountain or Dateline NBC, it’s the Emerald Triangle, we are excited to share its shine.”

The contest runs from May 1 to June 30, and those interested in signing up can register on the Cannadips website. Four of the winners will be chosen through a random drawing, with one winner to be announced every two weeks. The fifth winner will be the person with the best Instagram post with the #Croptober2021 hashtag.

“This type of access would never have been possible in the last twenty years,” says Mandel. “These Croptober winners won’t be touring corporate cannabis monocrops, they’ll be exploring the best outdoor sun-grown cannabis from some of Humboldt’s best cultivators.  It is refreshing we can share the amazing innovation and craft legally that has made our region famous.”

 


StaffApril 29, 2021
shutterstock_682670464.jpg?fit=1200%2C799&ssl=1

8min30210

Editors Note: This is a guest post.

Terpenes can be found in almost all species of flora. They are chiefly responsible for the aromatic and flavor diversity in the plant kingdom.  Simple chemical compounds, terpenes are created to help plants defend themselves against threats and to attract beneficial species.  In Cannabis sativa, terpenes are produced in the resin glands along with the cannabinoids and often work together to enhance or alter the effects of one another. This list houses information about the most common and abundant terpenes found in cannabis, including their flavors and known medical benefits. For full guides and artistic visualizations, view the terpene infographics from Goldleaf.

LINALOOL

This terpene’s hallmark is its floral scent, reminiscent of sharp and sweet wildflowers. It is also found in lavender, laurel, birch and rosewood.  It has calming and sedative properties and can help relieve anxiety.

Medical value: analgesic, anti-epileptic, anti-depressant, anti-anxiety.

β- CARYOPHYLLENE

Known to have an aroma that is peppery, woody and spicy, this is the only terpene proven to interact with the endocannabinoid system (CB2) in our bodies. It is also found in basil, oregano, pepper, and cinnamon leaves.

Medical value: anti-inflammatory, analgesic, anti-spasmodic, sleep aid.

α PINENE

The most common and abundant naturally occurring terpene, it is a main contributor to cannabis’ tell-tale piney aroma. It is also found in many conifer species and herbs such as sage. It is known to enhance memory and alertness.

Medical value: anti-inflammatory, bronchodilator.

MYRCENE

Described as earthy and musky, this terpene is prevalent in most all strains of cannabis. It is known to enhance THC uptake and contributes to the sedating and calming effects often associated with indica. Myrcene is also found in mango, hops, thyme, and citrus.

Medical value: analgesic, anti-inflammatory, antibacterial, antifungal, sedative.

HUMULENE

Another strong contributor to the tell-tale “earthy” aroma of cannabis, this terpene is also present in hops and coriander. Humulene can act as an appetite suppressant and offers potent anti-inflammatory abilities.

Medical value: anti-inflammatory, anti-bacterial, analgesic.

TERPINEOL

Due to its pleasant aroma reminiscent of lilac and flower blossoms, it is often used in cosmetic products such as soaps. It is often found in higher concentrations alongside pinene, which unfortunately may mask its scent.  It is known to have relaxing effects.

Medical value: antibacterial, anti-anxiety, immunostimulant.

LIMONENE

This terpene is normally found in higher concentrations in sativa varieties and is associated with elevated mood. It can be found in the rinds of various citrus fruits, juniper, and mint. Limonene has a unique ability to quicken the absorption of other terpenes in the body.

Medical value: anti-anxiety, anti-depressant, gastroesophageal reflux, antifungal.

TERPINOLENE

Having a piney aroma with notes of herbs and wildflower, this terpene is often used in perfumes and as an insect repellant.  It is also found in rosemary, sage, and Monterey cypress. Terpinolene has been shown to exhibit antioxidant and anticancer effects and as a sedative.

Medical value: sedative, anti-tumor.

GERANIOL

Creating a delightfully sweet smell akin to roses, this terpene is present in geraniums, lemons, and tobacco and is often used in perfumes and other cosmetics. It is also an effective mosquito repellant.

Medical value: neuroprotective, anti-fungal, anti-tumor.

VALENCENE

Getting its name due to its high concentration in Valencia Oranges, this terpene has a citrusy sweet aroma.  It is also found in grapefruits, tangerines, and some herbs. It is common in many strains of cannabis and is shown to be a powerful tick and mosquito repellant.

Medical value: *still being researched.

OCIMENE

Found in a wide variety of botanicals, it is known for its sweet and woodsy scent. Plants use ocimene to defend themselves against pests in nature. It is also found in mint, parsley, pepper, basil, orchids, and kumquats.

Medical Value: antifungal.

BISABOLOL

Also carrying a distinct floral aroma, this terpene is prevalent in chamomile and likely responsible for many of its medical benefits. It can be used to heal wounds due to its antibacterial properties.

Medical value: antibacterial, anti-inflammatory.

EUCALYPTOL

Commonly associated with the Eucalyptus tree, this terpene has an iconic spicy and fresh scent. It is used in a variety of products such as cough suppressants, mouthwash, and deodorants and has many proven uses. It is a mainstay in traditional Chinese and ayurvedic medicine.

Medical value: analgesic, antibacterial, anti-inflammatory, sleep aid.

_

Written by: Alfonso Colasuonno, Researcher and Writer at Goldleaf Ltd

Sources: National Center for Biotechnology Information (NCBI); SC Labs Inc; “Cannabis sativa: The Plant of the Thousand and One Molecules“, Andre CM, Hausman JF, Guerriero G.

 


Julie AitchesonApril 21, 2021
growingfacility.jpg?fit=1200%2C803&ssl=1

5min21950

4/20 and Earth Day 2021 are both upon us this week, and with those dates comes an opportunity to take a good, hard look at the environmental impacts of the cannabis industry as well as legislative responses to those challenges. Resource use and extraction, air and water quality, and waste management are just a few of the environmental issues confronting indoor, outdoor, and greenhouse cultivation operations. Worth a staggering $61 billion, the cannabis industry is profiting heavily from its current practices, so it stands to reason that legislators are looking to heightened restrictions, green incentives, and higher permitting and licensing fees to offset some of the environmental costs of production and manufacturing.

Aside from the many negative impacts of illegal grow operations, including the use of banned insecticides, illegal diversion of stream water, and unchecked chemical runoff, legal operations can still pack a devastating environmental punch. Soil degradation increased load on water and energy infrastructure systems, and carbon and volatile organic compound emissions from terpenes all have scientists, activists, and lawmakers scrambling to make sure the cannabis market’s booming profits don’t come at the expense of planetary health.

The Puget Sound Clear Air Agency in Washington State has imposed a requirement that recreational marijuana producers and processors comply with air quality regulations after they have obtained licensing. This involves paying a fee for a Notice of Construction permit that details odor control equipment and solvent usage information, as well as submitting a plan view of the facility, a schematic drawing of the HVAC system, and an environmental checklist among other requirements. In California, state government-run Water Boards require permitted growers to register water rights and follow strict guidelines that include prohibitions on diverting surface water from April through October and irrigating with stored water during the dry season. Any non-consumer wastes produced in cannabis operations manufacturing vape cartridges and pens in the state are required to be managed by electronics recyclers, which puts California ahead of most states in this particular practice.

The Pennsylvania Department of Environmental Protection prohibits “the emission into the outdoor atmosphere of any malodorous contaminants”, which has shut down more than one processing hemp drying operation in the state while encouraging others to upgrade their generators and air scrubbers to keep business running. Other states such as New Jersey have regulated certain areas as protected lands, such as shellfish habitat, wetlands, and riparian zones, which require special permits or authorization in order to be used for cannabis cultivation. 

In Colorado, Boulder has city codes that require marijuana businesses to utilize renewable energy to offset 100% of their electricity consumption as part of Boulder’s Sustainability and Climate Action Plan.  In addition, several local governments in Colorado, in conjunction with the state, have prepared a “Cannabis Environmental Best Practices Guide”, but as long as adherence to measures such as these remains elective or wildly variable from state to state, both illegal and legal marijuana operations will continue to stymy efforts to ensure that that the cannabis boom is not a bust for the environment.


StaffApril 14, 2021
connected-cannabis-co-smartie.jpg?fit=640%2C480&ssl=1

5min21960

California-based Connected International Inc. also known as Connected Cannabis Co. closed on a $30 million capital raise consisting of debt and equity financing. The round was led by existing investors Navy Capital and One Tower Group with participation from new investors Emerald Park Capital, an affiliate of Bryant Park Capital, and Presidio View Capital. Connected previously raised $25 million in a Series A round of funding in July 2019.

“We’re thrilled to bring Emerald Park Capital and Presidio View Capital into the Connected family and welcome back our long-term partners that have supported our company’s mission from the very beginning,” said Sam Ghods, CEO of Connected. “We are steadfast in our development of new, best-in-class genetics and our production of top-quality flower that has resulted in impressive growth and unwavering customer loyalty. That same commitment and quality that we’ve prided ourselves on from day one will stay with us as we enter additional states. We look forward to bringing our true product and brand to consumers in new markets –  that is our highest priority every time we look at expansion.”

Connected has been building a proprietary genetics portfolio of premium strains and meticulously cultivating cannabis at scale since 2009 and is considered by some to be the pioneer of “designer weed.” Connected is currently EBITDA-positive.

Connected has won several awards for its strains and has experienced monumental 68% year-over-year growth with 75% revenue CAGR through 2021. Connected and its partner brand, Alien Labs, acquired by Connected in 2017, recently took home a total of five top-ten wins across the Indoor Flower and Live Resin Cartridges categories of the 2021 Emerald Cup – Northern California’s premier cannabis destination and the industry’s most prestigious award. Connected led the indoor flower category with their Gelonade strain taking first place while Alien Labs’ Biskante placed third.

“Connected’s product quality is unmatched across the cannabis industry, as exemplified by their dedicated mass following,” said Chetan Gulati, Partner of Navy Capital. “The company’s success is largely due to their proprietary genetics as well as their ability to grow premium cannabis efficiently and at scale without compromising on quality. We look forward to seeing the team bring that same top-shelf quality to more U.S. markets.”

The company currently operates in California and Arizona. By virtue of its organically developed and trusted reputation, Connected’s expansion into Arizona in November 2020 has seen continuously high sales since launching.

With the additional capital, Connected will accelerate its national expansion while maintaining control over its state-of-the-art cultivation techniques. The company plans to focus on states with robust cannabis cultures and promising potential for sustained growth, such as Nevada with its entertainment and cannabis tourism and Michigan with its continued increase in sales.

“Connected is a legacy brand that’s established itself as a market leader based entirely on their unique, premium cannabis strains and flower,” said Joel Magerman, Managing Partner of Emerald Park Capital. “Over the last decade, Connected has built a best-in-class team across departments, from cultivation to marketing. We are eager to see what innovations and additional value the team will bring as they continue on their path to becoming a leading national brand.”

 


StaffApril 9, 2021
gsdfdsfsdtwerwewreww.jpg?fit=918%2C570&ssl=1

3min18570

In 2020, Trulieve created a new brand called the “Old Hippie Stash.” The Bellamy Brothers David and Howard hand selected attributes for three stains of medical cannabis.

With the 50th anniversary of ‘420’ just around the corner, Trulieve, Florida’s largest chain of medical marijuana treatment centers, is celebrating one year of collaboration with celebrity country music band “The Bellamy Brothers.”

The three strains of medical marijuana available only at Trulieve are “Reggae Cowboy,” “Afterglow,” and “Big Love.” The Reggae Cowboy and Big Love strains are Sativa hybrids, while Afterglow is a straight Indica to promote relaxation and can help with pain relief.

Valda Coryat, Trulieve’s Chief Marketing Officer, along with David and Howard Bellamy (The Bellamy Brothers) were interviewed by Lori Reese of MarijuanaDoctors.com via Zoom. The live interview shares a candid discussion that fans will want to hear. From life on the “Honky Tonk Ranch” to the changing role of medical cannabis as an alternative medicine. The award-winning musical duo also talks about the country music talents that were lost due to COVID-19, and their songs about the pandemic, including “Rednecks Looking for Paychecks” and “No Country Music for Old Men.” A tribute to Kenny Rogers, Charlie Pride, and other legendary country crooners.

The one-year anniversary of the “Old Hippie Stash” is April 9th. The Bellamy Brothers and Trulieve are celebrating by giving away 15 gift boxes for fans. Participants (USA only and 21-years of age and older) can enter on the MarijuanaDoctors.com blog post about the interview: https://www.marijuanadoctors.com/blog/bellamy-brothers-1st-anniversary-interview/

Winners will be randomly selected and announced by MarijuanaDoctors.com on Facebook, on Monday April 12th.

 


Don't Miss This Week's Groundbreaking News

Join the thousands of subscribers who stay informed with GMR's exclusive news briefs delivered directly to your inbox every Friday afternoon.

We respect your privacy. See our privacy policy.


About Us

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


READ MORE



Recent Tweets

@GreenMarketRpt – 2 hours

RT : True Crime and the Cannabis Industry Meet In New Podcast | by

@GreenMarketRpt – 2 hours

RT : We’re so proud to see Curaleaf’s own Cristina Nutzman, VP of Legal-Labor & Employment, recognized by for…

@GreenMarketRpt – 6 hours

$STMH Stem Buys Artifact Extracts, Two Dispensaries For $2.9 Million

Back to Top