News

John SchroyerDecember 2, 2022

3min12950

On Thursday, a series of new Colorado cannabis industry regulations went into effect, including new mandatory use-by dates for product packaging but also the flexibility for growers to re-designate medical cannabis as recreational inventory.

While some of the changes may help the cannabis supply chain during an economically harsh period by making it easier for various growers to supply both medical and recreational retailers, others will also likely add more regulatory burdens – and therefore costs – for the industry.

According to the Colorado Marijuana Enforcement Division, the highlights of the new rule changes include:

  • Starting Jan. 1, cultivators will be permitted to switch inventory designation from medical to recreational. The MED said this change is a “follow-up” to a switch in 2021 that allowed recreational cannabis products to be re-designated as medical “in certain circumstances.”
  • Starting in 2024, all cannabis products will be required to display “use-by” dates and specific storage conditions as perishable goods. Companies will be allowed to conduct testing to determine shelf lives and appropriate use-by dates, and if they don’t, a nine-month use-by date will automatically be assigned. This rule already applied to edibles, but now applies to inhalables such as flower.
  • Security requirements were increased for cannabis companies, to mandate “a security plan to assist Licensees in preparing for and mitigating burglaries and other attempted crimes” at any licensed marijuana business. The rule was adopted specifically in response to an increase in break-ins at various stores and businesses in recent years.
  • The lifespan of social equity licensees’ “finding of suitability” has been extended from one year to two years.
  • “Marijuana Responsible Vendor Designations” will be available for both individuals and businesses through the state.
  • Marijuana transporter licenses can now be transferred between owners, essentially allowing transporter companies to be bought and sold.
  • The MED will no longer “consider arrests or convictions for activities in other states that are legal in Colorado” when evaluating potential new marijuana licenseholder’s “moral character.”
  • There are new requirements for employee protective gear to be worn during “certain manufacturing processes.”

Adam JacksonDecember 1, 2022
shutterstock_1707302470.jpg?fit=960%2C699&ssl=1

2min7951

Cannabis giant Curaleaf Holdings Inc. (CSE: CURA) (OTCQX: CURLF) laid off around 220 of its employees ahead of the Thanksgiving holiday, Business Insider first reported.

In a statement to the outlet, Curaleaf declined to say which department the cuts occurred within, though said the cuts were “a part of an effort to control costs and drive efficiencies in the face of economic uncertainties ahead.”

“I don’t like having to deliver this news, and we haven’t reached this decision easily,” Curaleaf CEO Matt Darin wrote to employees in a company-wide email, which was reviewed by Business Insider. Darin noted in the email that the company has been engaged in talks with unionized employees at affected Curaleaf locations.

The news comes does not come as much of a surprise, as Curaleaf has seen slowing growth this year amid a broader slowdown in the global economy and lulled efforts regarding U.S. federal legalization.

In a Nov. 7 earnings call, founder and chairman Boris Jordan told investors that management is “acutely aware of the economic conditions our customers are navigating.”

“As such, we are taking appropriate actions to ensure we continue driving growth and margin expansion next year, irrespective of the economic climate,” Jordan said at the time.

Curaleaf’s most recent earnings showed crimping margins and rising losses despite the company eking out on revenue expectations.

CEO Matt Darin said during the call that the company is “comfortably transitioning from the asset accumulation phase to the asset optimization phase in our evolution. Importantly, we are at this juncture by choice, not market force.”


StaffDecember 1, 2022
daily-hit.jpg?fit=700%2C394&ssl=1

5min7520

The Daily Hit is a recap of cannabis business news for Dec. 1, 2022.

ON THE SITE

Colorado Cannabis Industry Enduring ‘Largest Downturn’ in its History

One of the most mature cannabis markets in the United States, Colorado, is going through a financial crisis. The statewide industry is suffering a major sales dip that has been trending downward for the better part of a year, and insiders expect business casualties in coming months. Read more here.

Dutchie Co-Founders Step Down, Board Names New Leadership Team

Cannabis tech company Dutchie underwent a major leadership shakeup this week. The co-founding duo of Ross and Zach Lipson stepped down from their leadership posts at the privately held Oregon business, and the board of directors has named a new chief executive officer, chief financial officer, general counsel, and a vice president of engineering. Read more here.

Radient Technologies Deep in Debt, Trying to Swim Upward

Alberta-based cannabis extract maker Radient Technologies Inc. (TSXV: RTI) posted second-quarter results showing it either needs more cash flow or financing to keep the ship sailing. The company said it has overdue liabilities concerning rent, wages, long-term debt, and leases. Read more here.

Can Publicly Traded Bonds Keep the Cannabis Industry from Getting Smoked?

In 2021, cannabis companies racked up $1.65 billion in debt; in 2022, it skyrocketed to more than $5.62 billion of issued debt financing. Alarms are now going off because these loans are maturing, and payments are coming due. Since bankruptcy is not an option, what is the solution? Read more here.

Nevada Doles Out Consumption Lounge Licenses

Nevada picked 20 independent lounge licenses for businesses looking to build out new facilities for consumption lounges and sell product from other operators, with half of those licenses designated for social equity applicants. Read more here.

IN OTHER NEWS

New York

New York’s equity-focused rollout of its legal marijuana market relies heavily on a $200 million fund to support the state’s first retailers. Yet the team picked to raise and manage that money – an NBA Hall of Famer and a shoewear entrepreneur – have repeatedly failed to deliver on their biggest and boldest claims, including investing in entrepreneurs of color with a $100 million fund. Read the NY Cannabis Insider investigation here.

Minnesota

The Minnesota Department of Health will add irritable bowel syndrome and obsessive-compulsive disorder to the list of qualifying medical conditions for participation in Minnesota’s medical cannabis program. Under state law, the new qualifying conditions will take effect Aug. 1, 2023. Read more here.

Jacksons BevCo

CordovaCann Corp., a cannabis-focused consumer products and retail company, has forged a deal with Midwest retailer Jackson BevCo Inc. to facilitate the opening and operation of cannabis retail stores within or beside Jacksons convenience stores starting in 2023. Read more here.


Choose Your News

Subscribe to the Green Market Report newsletter that gives you original content delivered straight to your inbox.

 Subscribe

By continuing I agree to your Privacy Policy and consent to receive relevant newsletters and other email communications on events, editorial features, and special partner offers from Green Market Report. I can unsubscribe or change my email preferences at any time.


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 – 6 hours

Cannabis Companies Look for Capital Pathways as Cash Crunch Deepens

@GreenMarketRpt – 3 days

New Colorado Rules: More Packaging Mandates, But Also Supply Chain Flexibility

@GreenMarketRpt – 3 days

Michigan Gov. Whitmer Makes Marijuana Top Cop’s Role Permanent

Back to Top

Choose Your News

Subscribe to the Green Market Report newsletter that gives you original content delivered straight to your inbox.

 Subscribe

By continuing I agree to your Privacy Policy and consent to receive relevant newsletters and other email communications on events, editorial features, and special partner offers from Green Market Report. I can unsubscribe or change my email preferences at any time.