New York Office of Cannabis Management Archives - Green Market Report

StaffNovember 28, 2022
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5min6110

The Daily Hit is a recap of cannabis business news for Nov. 28, 2022.

ON THE SITE

Veterans’ Plight Spotlights Need for Cannabis Legalization as Congress Moves Research Bill

As a historic House-passed cannabis research bill makes its way to President Joe Biden’s desk after surviving a Senate vote, questions remain regarding its impact on the future of federal legalization. One group whose concerns get washed in the stalemates and political acrobatics: former service members facing the specter of stigma and barriers to accessing safe medicine. Read more here.

NY Cannabis Regulators Disclose How They Chose Licensees

Retail cannabis applicants who lived in low-income areas, in public housing or were homeless when they were convicted of marijuana-related offenses had an advantage in the application process for legal cannabis dispensaries, according to details newly revealed in court papers. Read more here.

Bill Would Make Cannabis Companies Eligible for SBA Loans

A Democratic senator has formally introduced a bill that, if successful, would make U.S. cannabis companies fully eligible for federal loans through the Small Business Administration. Read more here.

Done Deals: Trees, Bright Minds

Despite the challenges of raising capital these days in the cannabis and psychedelics industry, two companies managed to close deals before the end of the year.

Read more here.

Cantor Issues Upbeat Cannabis Report

Cantor Fitzgerald analyst Pablo Zuanic wrote an upbeat research report on the major cannabis companies despite the somewhat depressing tone in the industry. Despite the sunny optimism, he opted to leave ratings, estimates, and price targets unchanged. Read more here.

More Earnings Reports

IN OTHER NEWS

Cannibble Foodtech Ltd.

Cannibble Foodtech Ltd., (CSE: PLCN), a food tech company that develops and manufactures hemp-enhanced food and beverage products, has entered into a share purchase agreement to acquire Eshbal Functional Foods Cooperative Ltd., a private Israeli gluten-free food tech manufacturer. Read more here.

Hempacco

Hempacco Co. Inc. (Nasdaq: HPCO), a hemp smokables company, entered into a joint venture agreement with Sonora Paper Co. Inc. to manufacture, market, and distribute hemp blunt wraps, hemp tubes, and hemp smoking cones based on SPCI’s intellectual property. Read more here.

Hempacco also entered into a joint venture agreement with High Sierra Technologies Inc. (OTC: HSTI) for the production, marketing, and sales of hemp smokables. Pursuant to this agreement, HSTI and Hempacco formed a new Nevada corporation known as Organipure Inc, in which HSTI and Hempacco each own 50% equity interest. Read more here.


Adam JacksonNovember 23, 2022
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4min10140

New York’s Office of Cannabis Management on Tuesday asked a federal judge to narrow the scope of a Nov. 10 order limiting the issuance of marijuana retail licenses to just Finger Lakes region rather than several localities, Law360 first reported.

The news comes as the OCM had been gearing up to award its first cannabis licenses to New Yorkers who have been incarcerated or arrested for the plant. The injunction prevents the OCM from issuing licenses under the conditional adult-use retail dispensary (CAURD) program.

In a motion filed by the state, regulators are have asked the court to lift the temporary block to prevent “manifest injustice”, adding that by “unnecessarily” grouping the four other regions in the injunction (Central New York, Western New York, Mid-Hudson and Brooklyn), an additional 54 dispensaries will not be able to open.

“This will cause hardship to multiple stakeholders who have taken actions in reliance on the CAURD Program, most prominently licensed cultivators—mostly small family farms—who will have great difficulty selling their recently harvested product,” the state wrote. “The resulting retail bottleneck can be significantly alleviated by narrowing the geographic scope of the injunction as requested.”

The state argued that since CAURD applicants are only considered for their first preferred geographical location, the court should modify the injunction to be limited to only Finger Lakes, the first choice of plaintiff Variscite NY One, an LLC majority-owned by Michigan resident Kenneth Gay.

The company argued at the time that New York’s social equity program runs afoul of the dormant commerce clause, in part because it is not narrowly tailored enough to serve a “legitimate local purpose.”

In the Wednesday motion, the state added that because Finger Lakes was the plaintiff’s top choice, his initial application would not have even be considered in the other regions.

If the court were to deny the request to limit the scope, the state would request a stay of the order while it pursued an appeal.

According to OCM’s twitter, the state had been “blocked” from awarding 18 CAURD licenses due to “active litigation,” which included four licenses in Brooklyn, one in the Central New York region, four in the Western New York region, six in the mid-Hudson region, and three in the Finger Lakes region.

The development illustrates the challenges the state has faced as it hurries to dole out permits and open its first legal adult-use shops by the end of the year. The underground market continues to thrive as legal operators wonder whether they will be able to sell $740 million worth of crop yield.


StaffNovember 21, 2022
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5min4780

The Daily Hit is a recap of cannabis business news for Nov. 21, 2022.

ON THE SITE

New York Awards Adult-Use Retail Licenses, But Heaps of Questions Remain

The New York Cannabis Control Board on Monday awarded its first round of adult-use cannabis permits, along with 282 pages of new industry rules and some significant policy updates. But a small mountain of questions remains for stakeholders, leaving the market’s near future still shrouded in uncertainty for many. Read more here.

Nonprofits Among the First Licensees for New York Adult-Use Cannabis Market

More than 900 applicants submitted the paperwork for the New York CAURD licenses, which was far less than the OCM had hoped for. At least three New York City-based nonprofits Housing WorksThe Doe Fund, and LIFE Camp confirmed they had been chosen. Read more about these organizations here.

Cannabis Retail Expects Solid Boost from Green Wednesday

Summer often gets the credit as the prime season for cannabis sales, but the back end of the year is no slouch. Several dispensary brands told Green Market Report that business typically jumps anywhere from 10% to 30% between the week before Thanksgiving and the start of the new year. Read more here.

Chicago Dispensary Gets Zoning Approval for Former Rainforest Cafe Site

The Rainforest Cafe application has been controversial because the site at 605 N. Clark St. is within 1,500 feet of other pot shops. State law prohibits dispensaries owned by existing companies that received licenses under the original medical-marijuana law from locating within 1,500 feet of each other. New licensees under “social equity” guidelines aimed at diversifying ownership of marijuana businesses have an exemption from the requirement. Read more here.

Video: MJBizCon 2022

Green Market Report attended the recent MJ Biz Conference in Las Vegas last week. Here’s a little bit of the event in case you weren’t able to attend. This year’s conference was the first to be hosted under the new owners Emerald Co. Check out our highlight reel here.

IN OTHER NEWS

“Danksgiving”

Until fairly recently, Danksgiving wasn’t much more than a funny word that cannabis fans used for smoking weed on Thanksgiving. It’s easy to see how the portmanteau came about: “dank,” a slang term for high-quality weed, fits into the name of a holiday that appeals to the appetite – whether one is high or not. Read more here.

Kaya Shack

Kaya Shack, a vertically integrated cannabis operator in Oregon, will sell its Salem dispensary by Feb. 1, 2023, as part of a sale-surrender settlement for two violations stemming from 2019, according to the Oregon Liquor and Cannabis Commission. Read more here.

Trulieve Cannabis Corp.

Florida-based Trulieve Cannabis Corp. (CSE: TRUL) (OTCQX: TCNNF) announced the grand opening of two new medical cannabis dispensaries in:


Jenel Stelton-HoltmeierNovember 10, 2022
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3min9360

A district judge is the New York has issued a preliminary injunction against the New York Office of Cannabis Management, preventing it from issuing licenses in several localities.

Variscite NY One, an LLC owned by Kenneth Gay, requested the injunction as it challenges the state’s decision to award its first cannabis licenses to New Yorkers who have been incarcerated or arrested for the plant.

This injunction prevents the OCM from issuing licenses to applicants under the conditional adult-use retail dispensary (CAURD) program for the following geographic areas in the state:

  • Finger Lakes
  • Central New York
  • Western New York
  • Mid-Hudson
  • Brooklyn

According to the court filing (attached below), Variscite NY One requested the injunction in order to “preserve the status quo,” as the program had yet to issue any of the CAURD licenses. The company argued that New York’s social equity program runs afoul of the dormant commerce clause, in part because it is not narrowly tailored enough to serve a “legitimate local purpose.”

In issuing his decision, U.S. District Judge Gary Sharpe wrote that the OCM “did not even attempt” to show that its restrictions advanced such a local purpose.

In addition, the court agreed with Variscite that its exclusion from the initial process could cause “irreparable harm” by granting an early advantage to other applicants.

The New York adult-use cannabis program specifically wanted to address the social equity aspect of licensing and chose to award the first licenses to what it calls “justice applicants.” These applicants can be individuals who were convicted of or who had a parent, legal guardian, child, spouse, or dependent convicted of a “marihuana-related” offense in New York state prior to March 2021.

This is a developing story and will be updated as new information becomes available.

varscite-v-new-york-OCM-11102022


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