vaping Archives - Green Market Report

Julie AitchesonMarch 24, 2021
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5min00

Monday, March 22, 2021, was an important day for the vape industry, marking the comment period deadline for revisions to the Preventing Online Sales of E-Cigarettes to Children Act, which were included in the 2021 omnibus spending bill recently passed by Congress. These changes prohibit Electronic Nicotine Delivery Systems (ENDS) from being sent to consumers through the United States Postal Service, influencing other common carriers such as Fed Ex, which announced it would ban the delivery of vaping products as of March 1, 2021.

The Act was recently revised to include a mailing ban on any vape device or product whether it contains nicotine or not. The impacts of this revamped bill on the vaping industry would be seismic, with groups like the California Cannabis Industry Association (CCIA) rallying consumers to make their voices heard before the comment period ended on the 22nd.

The USPS Rule on Hazardous, Restricted, and Perishable Mail in the pending bill includes products that are legal under many states’ laws, including California’s. In a template letter provided to those who wish to speak out against the revisions, CCIA states that while “the undersigned businesses and organizations unambiguously support restricting the sale of tobacco and nicotine to minors”, the proposed changes to USPS “could unintentionally regulate products that Congress had no original intent of capturing” to the extreme detriment of small businesses across the country. “This blanket limitation on mailing nicotine products,” the letter continues, “will completely cripple entire industries, including manufacturers of hemp-derived and botanical aromatic products and services.”

Should the federal government overrule these objections, opponents argue that the impacts would be felt beyond vaping, nicotine, and cannabis consumers. The beleaguered USPS, which is already floundering in the face of falling revenues, would suffer from the decline in mail volume as well as the cost of implementing more comprehensive restrictions. Users of botanical medicines like hemp-derived CBD who rely on vaping as a delivery system would struggle with access, and companies that have shifted to reliance on mail order models, particularly during the pandemic, would lose a primary source of revenue during an especially tenuous time.

Sellers who do no register or comply with these new regulations, which are set to take effect 90 days from passage, would be subject to severe penalties, including up to three years in prison. The revised bill will require companies to take on more administrative costs, as well as the aid of legal counsel in many cases, to ensure compliance and ascertain if they will even be able to function within the new regulations.

With the comment deadline now passed, it remains to be seen whether the vaping industry will manage to turn the tide on the latest version of the Preventing Online Sales of E-Cigarettes to Children Act. A law that, according to American Vaping Association President Gregory Conley, “is not a law designed to regulate the mail-order sale of vaping product to adults; it’s an attempt to eliminate it.”

 


StaffMarch 4, 2021
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8min00

Editors Note: This is a guest post. 

The booming USA cannabis industry has had to overcome many hurdles to reach the position it is in. With amendments to the Prevent All Cigarette Trafficking (PACT) Act it may have hit yet another setback. In the following article we explain what the PACT act is all about, how the amendments to the act will affect the industry and those who work within it, and what the answer may be going forward. We’ll begin by explaining the act itself and its origins. 

What is the PACT Act? 

The PACT Act was originally passed as law in 2008. However, it has its roots in an act drawn up 60 years earlier in 1949 called the Jenkins Act. The Jenkins Act was aimed at combatting contraband tobacco. It required all carriers who were shipping tobacco or tobacco products across state lines to report the sale of such products to the relevant tax authorities. Tobacco was, naturally, a much-traded product in terms of illicit deals, hence the requirement for the act to impede on tax avoidance.

In 2009 the PACT Act amended the Jenkins Act. Additions to the act included the prevention of the U.S Postal Service (USPS) from delivering cigarettes and tobacco products. This amendment also applied to smokeless tobacco products. The Act also requires sellers of tobacco products to adhere to strict regulations including registering with the ATF (Bureau of Alcohol, Tobacco, Firearms and Explosives) and the tax authorities in the state they are shipping to or, in fact, where an advertisement for such products is displayed.

In addition, they must use a carrier who checks the identification of the recipient, and records of sales must be kept for a number of years, among other specific requirements. Originally these regulations did not apply to vaping products. That is about to change, as we will explain. 

How Will the PACT Act Affect the Cannabis Industry? 

The recent amendment to the PACT Act – ‘Preventing Online Sales of E-Cigarettes to Children Act’ – brings vape products under the umbrella of the act. Within the wording, the definition of ‘cigarette’ has been amended to include ‘Electronic Nicotine Delivery Systems’ (ENDS). At first glance ENDS appears not to include cannabis products. However, the Act defines ENDS as follows:

“any electronic device that, through an aerosolized solution, delivers nicotine, flavor, or any other substance to the user inhaling from the device including an e-cigarette; an e-hookah; an e-cigar; a vape pen; an advanced refillable personal vaporizer; an electronic pipe; and any component, liquid, part, or accessory of a device described without regard to whether the component, liquid, part, or accessory is sold separately from the device.”

This means that USPS can no longer deliver vape products to consumers. There is some debate ongoing as to whether USPS can deliver business to business – such transactions were exempt from the original PACT Act where strict criteria were met – as the service has yet to publish its intentions. 

There has been plenty of reaction within the industry, notably from online retailers and suppliers of vape products who face potential damage from the latest amendments. For example:

The ban is going to affect cannabis industry also. We are working on a plan with alternative shippers to get our customers their weed vaporizer products, however, the shipping time and shipment fee may increase” the owner of vape4ever.com said. Vape4Ever is an established online supplier of quality vaporizer products at the leading edge of the market.

A worrying addition to the above is that two of the major US carriers – FedEx and United Parcel Service (UPS) – have announced they will no longer transport vaping products in the USA, with FedEx applying its rules from March 1st, 2021, and UPS enforcing the ban from April 5th. T

What Happens Next?

Whether the current cannabis industry growth projections – which are very healthy indeed – remain in place in the face of the PACT Act remains to be seen. The major concern is for smaller businesses in the vape and cannabis industry who face expensive upgrades to their computer systems as well as revisions to their working practices in the light of the USPS, FedEx and UPS transport bans that are coming into effect shortly.

The ACT requires the USPS to officially clarify the regulation on the carrying of ENDS by April 27th, 2021. At the time of writing there has been no such clarification, and businesses are advised to ensure compliance by that date at the latest. There will be a need for suppliers to find private logistics solutions in order to enact delivery of vape products, and many are currently investigating and organizing such solutions.

The PACT Act is a blow to a burgeoning industry that has given rise to many small outfits and provides many jobs, and it is hoped that the smaller players in the market can find a cost-effective solution to comply and enable delivery to continue.


StaffJanuary 25, 2021
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6min00

An e-cigarette brand in China called RLX Technology raised $1.4 billion by offering 116.5 million ADSs at $12, above the range of $8 to $10. At the pricing, the company commanded a market value of $18.6 billion. Shares spiked and were lately selling at over $25 with the symbol RELX and now has a $49 billion valuation.

Renaissance Capital noted that the company “boasts a 62.6% market share in China for closed-system e-vapor products in terms of retail sales. The company has partnered with 110 authorized distributors to supply its products to over 5,000 RELX Branded Partner Stores, and over 100,000 other retail outlets nationwide, covering over 250 cities in China. Revenue nearly doubled in the nine months ended September 30, 2020, to $324 million, with net income of $16 million.”

“Our mission is to make RELX a trusted brand for adult smokers through state-of-the-art products, industry-leading technologies and scientific advances in collaboration with talented and committed people around the globe. We are the No. 1 branded e-vapor company in China, capturing 48.0% and 62.6% of the market share of closed-system e-vapor products in terms of retail sales value in 2019 and the nine months ended September 30, 2020, respectively. We have launched five series of rechargeable closed-system e-vapor products, and we deeply engage in the key activities in the e-vapor industry, from scientific research, technology and product development, supply chain management, to offline distribution. We partner with 110 authorized distributors to supply our products to over 5,000 RELX Branded Partner Stores and over 100,000 other retail outlets nationwide, covering over 250 cities in China. China’s e-vapor market is expected to grow at a CAGR of 65.9% from 2019 to 2023. Our net revenues increased from RMB133 million in 2018 to RMB1,549 million ($228 million) in 2019, and RMB2,201 million ($324 million) in the first nine months of 2020.”

Despite the vape crisis of 2019 and then the Covid pandemic which specifically affected people’s lungs, vaping has continued to grow in popularity. Juul pods were marketed to teens with candy type flavors, which caused the government to begin regulating and banning such marketing. Still, the smoking method has remained popular due to its convenience. It also remains to be a popular form factor for cannabis consumers.

Here are the top 5 selling cannabis cartridges of 2020, according to LeafLink List:

    • Grease Monkey Cartridge from Platinum Vape (MI)

    • PLUGPlay Express 1g Cartridge from PLUGPlay (CA)

    • Skydoggie 1g Cartridge from Raw Garden (CA)

    • 1000mg Lemon Faderade Cartridge (Energy) from Timeless Vapes (AZ)

    • 1g High Potency Cartridge from Batch (CO)

 

Challenges Remain

Fortis Law Partners doesn’t think vaping is completely out of the woods just yet. The company recently said they expect to see more insurance companies use the fact that COVID-19 is a respiratory illness as a reason to add more exclusions to policies, particularly for businesses that specialize in vaping and/or other smokable cannabis products. “In addition, a new Colorado rule goes into effect on Jan. 1, 2021, requiring cannabis manufacturers to test the vapor emissions from their products—i.e., what consumers are actually inhaling—in addition to the oil itself.”

 


StaffNovember 25, 2020
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9min01

Editors Note: This is a guest post. 

It has been more than a decade since the invention of vaping. There is still a lot of debate about whether vaping is better than smoking. Vaping has been a new thing for some countries, especially its concept. Many people even see vaping as the same thing as smoking. Vapes are also known as E-Cigarettes, and they are now used all over the world. Vaping is not similar to smoking at all.

Vape’s demand is increasing day by day; in almost every country, people are vaping rather than smoking. However, some still do not believe in the benefits of vaping. They just need to know these ten benefits of vaping to change their mindset. Just find the best cbd vape juice to go with your taste and you are good to go.

Has Less Dangerous Chemicals

Normal cigarettes are made with many dangerous chemicals and toxins such as nicotine, arsenic, lead, cyanide, carbon monoxide, ammonia, and more. Research has determined that cigarettes contain at least 24 chemical compounds that are very harmful to the human body. In Australia, about 50 deaths are happening each day just because of smoking. Smoking can even lead to cancer. Vape has E-Liquid, which only contains VG, PG, flavoring, which is FDA-approved. Besides, vapes come with fruit, spicy, sweet, and many other flavors. It makes the experience more enjoyable for its consumer.

Not Hazardous to Health

Smoking a lot can cause lung & mouth cancer and respiratory and cardiovascular diseases, but vaping does not cause any such thing. It’s been many years since scientists have proven smoking is injurious to health. Many people have fallen victim to some incurable disease due to chain-smoking. It happens because of the combustion of tobacco. But vaping has no such hazardous compounds in it. 

Less Addictive

Nicotine is one of the primary compounds in a cigarette. Nicotine is known to be very addictive. Although some vapes might contain nicotine, Australia has restricted nicotine in their commercially available vapes. So vapes without nicotine are the way to stay safe and healthy. Vaping is the same as using tiramisu e juice because, in both practices, you don’t get nicotine. Nicotine is known for its effects on discoloring teeth and causing hypertension.

Assists in Quitting Smoking

In today’s world, we have many e-cigarette users who vape to quit their smoking habit. There is much evidence that many regular chain smokers were successful in quitting their bad smoking habit. They just had to vape for three months, and it helped them cease smoking completely; they were totally free from smoking addiction after those months. 

Wide Range of Flavors

As previously said, there are various flavors available in the vape, whereas cigarettes only have tobacco. The vape juice is now accessible in many different flavors to match the user’s taste preference. Many vape users love flavors like strawberry, menthol, apple, cherry, chocolate, caramel, etc. That is why e-cigarettes are less boring than regular cigarettes. There are always the most preferred vape pens each year. 

Less Dangerous for Others

Smoking is very harmful to the user and also to the people around the smoker. This term is also known as passive smoking or second-hand smoke. Passive smokers have a very high chance of getting coronary disease or worse, cancer. This is why vaping is very safe, and it does not impact others. Moreover, an experiment of the CDC has confirmed finding vitamin E in the body of vape users.

Safe for The Environment

We all know for a fact that smoke can be very bad for the environment. The same goes for cigarette smoke. Many fire incidents are caused just for discarded cigarette butts. These tobacco cigarettes threaten our health and also play a big part in air pollution and greenhouse effects. On the other hand, vaping does not cause any of these issues. Vaping has no nicotine and tobacco in it, which makes it very environment-friendly and healthier than smoking. 

Easy to Use

Vaping is convenient to use, but it depends on the local laws whether you are allowed to vape out in the open. In some countries, vaping is also looked at as a bad smoking habit, and they think it has the same passive smoking effects. However, vapes do not have any bad smelling smoke and do not cause passive smoking effects. Many cities now accept vaping, and people can use vape machines out in the open.

Not Very Costly

Despite vape being good for health and the environment, it is much cheaper than smoking. Although you have to buy the e-cigarette, the vape juices are way less expensive than highly-taxed tobacco products. On the opposite side, smoking is a costly addiction. A casual chain-smoker uses a whole pack of cigarettes per day, and it costs them about $14,000 per year, whereas e-cigarettes will cost you about $720 per year only. It proves that tobacco addicts spend more on all those cigarettes. The vape juices are quite cheap, and they are available in online vape shops. These online vape shops ship their products in many states, or you can get yourself vape juices from local vape stores. In short, vaping is not as costly as smoking. 

No Leftovers Like Cigarettes 

Another benefit of vaping is that it has no smoke, ash, or any remnants. Also, you are free from worrying about bad odor, tobacco breath, and ashes. That is why vaping is far safer. It has a beautiful, flavorful smell, where cigarettes have a very bad tobacco smell and give you bad-smelling breath. 

Final Words

Stopping the smoking habit is tough, and it deteriorates the smoker’s health. But vaping can be a lifesaver for the chain-smokers to quit their tobacco smoking addiction. Vaping is now accepted socially because it is safer and more viable than smoking cigarettes. You can have fun vaping without worrying about any side effects similar to smoking; it is that safe. This is the reason why vaping is the best alternative to smoking.


StaffSeptember 21, 2020
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3min00

A new report from analytics company Headset found millennials to be the biggest category for cannabis consumption in California and their overwhelming choice for form factor is smoking. The latest report on August sales read, “Millennial Males contributed to the most sales with 37.5% of the market share.” Millennials in general spent 43% of their money on flower, 9% on pre-rolls, and another 23% on vape pens. Making almost two-thirds of all purchases in the inhalant category.

Female cannabis consumers in this category weren’t as big of fans of the smokable categories. Millennial females spent 17% of their money on vape pens in California, which was far less than the men. However, this was the biggest category for female vape pen buyers. Other female age groups spent much less on vape pens.

Top Five Vape Pens

Among all demographics, these were the top five vape pens sold in California for August:

  1. Stiizy
  2. Raw Garden
  3. Heavy Hitters
  4. ABX
  5. Select

“The most notable difference between these brands is that the Gen Z and Millennial age groups contribute an enormous proportion of sales to the top two brands, STIIIZY and Raw Garden. Because Millennials drive the majority of Vapor Pen sales and Gen Z has the strongest over-index of any age groups to vapes, Vapor Pen brands targeting these groups could potentially see strong sales. While Heavy Hitters and ABX, ranking 3 and 4 respectively, under-index to Gen Z and Millennials, they are still successful brands in the California vape market and have strong over-indexes to both Gen X and Baby Boomers. This shows that even within a category, there are brands that resonate best with different types of customers.”

Washington

The August sales report also took a deep dive into the state of Washington as a comparison. Men also dominated the smokable categories in this state as well. Over 60% of the sales in the flower and vape categories were by men. 59% of pre-roll sales were also men. Women in this market prefer edibles. They make up 35% of the total cannabis market in the state, but when it comes to edibles, they account for 43% of the sales. Here are the top ten edible products in Washington according to Headset:

Top Ten Edibles

  1. Magic Kitchen
  2. Hot Sugar
  3. Craft Elixirs
  4. Verdelux
  5. FlavRX
  6. CannaBurst
  7. The 4.20 bar
  8. Honu
  9. Mr. Moxey’s Mints
  10. Smokiez


StaffSeptember 18, 2020
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8min00

Editors Note: This is a guest post. 

vape

We’ve all witnessed the epic expansion of the vaping market in recent years, with people of all ages joining in on the trend. It seems that no matter where you turn, there’s always that one a guy or a girl with a vape pod in any group of friends. 

Well, the increased popularity has caused quite a bit of a stir in the vaping industry, and there are a number of changes on the horizon. If you just want to buy vape juice online, get a colorful pod, and join the community, it’s a perfect time to do so.

Here are just some of the biggest trends that all you vapers, and soon-to-be vapers, can look forward to. 

Things Are Getting Smaller and More Efficient

Yeah, while our cell-phones have been getting bigger and bigger over the last decade, the vaping world has been hit by a shrink ray. Vape pens have gotten a lot slimmer, with some quite elegant models seen in the hands of Instagram fashionistas. 

Going with a smaller size doesn’t mean sacrificing all the power, though, as these compact devices are real workhorses. They’re easy to carry around, they have a perfect look for those who want to be a bit understated and classy, and they work just as well as their chunkier counterparts. 

Some people are even buying these slimmer models as a backup for their larger vape pods, something that they can just grab on a short trip to the store or when taking the dog for a walk. 

These tiny vape pens are also great summer accessories for the ladies, as there’s often not enough pocket space or handbag real estate for a large pod.     

A Whole Rainbow of Exciting New Flavors

In the past couple of years, the governments of several states were ready to crack down on vaping equipment, especially the more eclectic flavor mixes, fearing that they would get kids to start taking up the habit. However, this was shown to be a murky issue at best, as about 30% of high-school students reported that they tried two or more tobacco products.

 Be that as it may, the mere existence of different flavors didn’t make traditional cigarettes any more enticing than they already were, and having fun e-liquid flavors is not the issue here either. Luckily, with a lot of states backing away from draconic measures, we now have access to an amazing variety of blends. 

That’s great news for anyone experiencing vaper’s tongue, where the person gets so used to a certain flavor that the vape juice starts feeling bland and tasteless. The best cure is to switch things up, using different flavors, and there’s a ton of options now. 

Remote Access to Vape Pods

As of 2018, 87% of survey respondents said that they regularly used WiFi around the home. I’m willing to bet that the number is well into the 90% range by now, and it’s easy to see why. It’s incredibly convenient and allows for some cool IOT gadgets around the house as well.

It looks like the simple old vape pods and desktop vaporizers are offering WiFi connectivity as well. Some smart vaping devices now have apps that allow you to modify anything from nicotine content to the power output using your phone. The app can also keep track of your preferences and give you insightful analytics on your nicotine consumption. 

These cool little gadgets will be the perfect fit for both tech geeks who love the extra functionality and those who’ve been trying to quit smoking but never really kept track of how much they were smoking every day. Be on the lookout for new models, as this smart vaping trend has taken off big time in 2020.  

Tighter Quality Control

As we mentioned earlier, there have been raising concerns about the health implications of vaping, so the manufacturers have really tightened up their quality control. Another reason why we are now seeing higher quality products at even the more reasonable price points is all the competition on the vaping market

With the market expanding, new brands are popping up, and everyone is doing their best to please the consumers and build a solid reputation. 

The vaping industry is experiencing massive growth in this era of lockdowns and isolation, and the explosion in demand has caused the market to adapt. What this means for the users is more options in terms of e-liquid flavors, high-quality devices at lower prices, smart technology, and incredibly compact and elegant vape pens. 

It’s a great time to go away from cigarettes and go with fun flavors with much less nicotine, combined with a classy gadget that’s sure to turn a few heads. 


StaffAugust 25, 2020
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6min01

Editors Note: This is a guest post.

Vaping has become a leading topic of conversation among smokers in recent years. While there are still many unknowns about vaping, initial studies show that it’s better than smoking in a variety of ways.

If you’ve been considering the switch from smoking to vaping, you may have a few questions. Here are four things you need to know about vaping before making the switch.

Vaping is Less Harmful than Smoking

While inhaling anything other than oxygen into your lungs isn’t optimal for health, vaping is better for you than smoking. The primary reason for this difference is that vaping has a lower combustion point than smoking. In many vaping apparatuses, you can alter the combustion point to your preference.

The lower combustion means less heat entering your lung tissue. There’s also reason to believe that the lower combustion point limits the release of tar and ash, which are toxic to the lungs. 

Additionally, the lack of second-hand smoke and residue makes vaping safer for the people around you as well. For these reasons, vaping is a safer alternative to smoking. When using the mint disposable vape, no smoke enters the lungs meaning the risk of lung TB is less compared to smoking.

You Can Control Dosing and Output

Another compelling feature of vaping is the control over your dosage and output. When you vape, you can control the amount of nicotine that you inhale. If you’re using vaping as an alternative to smoking, you can slowly decrease nicotine dose to assist with smoking cessation. The vaping experience replicates smoking to trigger muscle memory— a common complaint when people use patches or gum.

You are also able to control the vapor output when vaping. While some people prefer the showy puff of vapor, many people prefer a more discrete approach. Opt for a vape pen that allows you control over the output, and you’ll be able to vape without people noticing. 

Vaping Can Save You Money

Vaping tends to be more accessible and financially sustainable than smoking. You can get an affordable vape pen at Atomic Blaze and use it for years without worrying about having to buy papers, lighters, cigarettes, etc. 

Some studies indicate that vaping delivers the product more efficiently than smoking as well. One study on vaping marijuana for cancer patients indicated that those vaping got better results than those smoking. Scientists believe this effect has to do with the lower combustion point. In essence, you get more bang for your buck when vaping.

Vaping apparatuses come at a variety of price points. When purchasing a vape pen, remember that you get what you pay for. You may not need a $400 vaporizer to suit your needs, but buying the cheapest option on the market isn’t worth the inevitable replacement fee in a few years. 

Vaping Leaves No Residue or Odors

As mentioned before, you can control the output with vaping in a way that you can’t with smoking. This feature contributes to vaping being healthier and more aesthetically pleasing than smoking, as it leaves no lasting residue. 

In addition to the more notorious first and second-hand smoke emitted from smoking, there’s also a thing called third-hand smoke. Third-hand smoke is the residue left in furniture, curtains, and even the walls when someone smokes inside. In smoking homes, you can often see the tinge of yellow and, on humid days, see the walls purging tar. 

With vaping, you don’t have to worry about going outside during a rainstorm to prevent the lingering odors of smoke in your home. You can protect your security deposit or resale value and still enjoy yourself.

From health implications to value, there are a lot of reasons why vaping is better than smoking. Take some time to explore your options and find the right vaping apparatus for you.

 


StaffOctober 2, 2019
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6min00

It’s time for your Daily Hit of cannabis financial news for October 2, 2019.

On The Site

Vape Recovery

Vape products, once considered the rising stars of the legal cannabis marketplace have struggled under the weight of the vaping crisis. Massachusetts banned all vape products for four months in order to err on the side of caution while the issue is investigated. Around the middle of August, vape product sales began dropping according to data from Headset, however, it seems the group may be slowly recovering.

Sales in Nevada and Washington both began to pick back up, while California seems to have stabilized. Most consumers are learning that the issues with vapes stemmed from products purchased outside the regulated channels. 

Canopy Growth

Canopy Growth Corporation  (TSX: WEED) (NYSE: CGC)  has completed an all-cash transaction to purchase a majority stake in sports nutrition company BioSteel Sports Nutrition Inc. The amount of the acquisition was not disclosed. The deal gives Canopy a significant entry into the sports nutrition and hydration category and lays the groundwork for cannabidiol (CBD) products to be sold in the U.S.

Canopy Rivers

Venture capital firm Canopy Rivers Inc.  (TSX: RIV)(OTC: CNPOF) completed a $10 million investment ( in TerrAscend Canada Inc., a subsidiary of its portfolio company TerrAscend Corp. (CSE: TER)(OTCQX: TRSSF). The investment includes the purchase of 13,243 units, with each unit consisting of: (i) one unsecured convertible debenture of TerrAscend Canada with a principal amount of CA $1,000, and (ii) 25.2 common share purchase warrants of TerrAscend exercisable until October 2, 2024.

In Other News

TILT Holdings

TILT Holdings Inc.  (CSE: TILT) (OTCQB: TLLTF) has negotiated an agreement with six of its remaining founders regarding the immediate forfeiture of all 60,217,088 stock options granted at the time of the merger, as well as the final separation of most of these founders from the Company. During the second quarter of fiscal 2019, the company reported stock-based compensation expense of greater than $47 million associated with these now forfeited stock options. Adjusting for the subsequent forfeiture, TILT’s Q2 2019 net loss of $48.9 million would have been almost entirely reduced, bringing the Company close to break-even. The successful forfeiture of these stock options follows the recent announcement of an adjusted EBITDA positive month of July

HeavenlyRx

HeavenlyRx Ltd. Acquired CBD company PureKana. Under the agreement, HeavenlyRx will acquire a majority ownership stake from the Company’s founding members with the acquisition expected to close by the end of 2019. Standing alongside HeavenlyRx’s high ethos and quality standards, PureKana – located in Scottsdale, Arizona – is a rapidly growing CBD brand and company with a large consumer base that leans toward a young and active demographic.

Westleaf

Westleaf Inc. (TSX-V:WL) (OTCQB:WSLFF) signed amendment agreements to two of its existing credit facility commitment letters with ATB Financial resulting in an additional $5.7 million of capital available for use by the Company. Westleaf has increased its term loan on The Plant, its fully completed extraction, manufacturing and product formulation facility, by $2.7 million and has secured a $1.0 million revolving credit facility to assist with working capital provided that any draw downs in relation thereto can only be made after final receipt of a standard processing license for The Plant from Health Canada. In addition, the credit facility related to the construction of Westleaf’s cultivation facility in Battleford, Saskatchewan has been amended to reduce its restricted cash requirement by $2.0 million.


Debra BorchardtOctober 2, 2019
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8min00

Vape products, once considered the rising stars of the legal cannabis marketplace have struggled under the weight of the vaping crisis. Massachusetts banned all vape products for four months in order to err on the side of caution while the issue is investigated. Around the middle of August, vape product sales began dropping according to data from Headset, however, it seems the group may be slowly recovering. The following table was provided by Headset.

Sales in Nevada and Washington both began to pick back up, while California seems to have stabilized. Most consumers are learning that the issues with vapes stemmed from products purchased outside the regulated channels. 

A report from the CDC (Center for Disease Control) stated, “In addition, the report from Illinois and Wisconsin showed that nearly all THC-containing products reported were packaged, prefilled cartridges that were primarily acquired from informal sources such as friends, family members, illicit dealers, or off the street.”

It seems illicit market and unregulated vape producers were using thickening agents like Vitamin E with disastrous results. The industry, in general, has suggested that regulation will solve this issue and many are trying to convince the consumer that they can trust a regulated brand.

“The widely publicized public health issue relating to the use of liquid vapes is something that SLANG takes extremely seriously,” said SLANG Worldwide (OTC: SLGWF) CEO Peter Miller. “We encourage investigation and research into the causes of this issue and hope that our collective understanding of the results leads to more thorough and effective regulation of the industry.”

SLANG said it is not aware of any of its products being identified as a contributor to any of the recent illnesses associated with vaping technology. SLANG is not currently operating in Massachusetts and had postponed plans to enter that state. It doesn’t expect to be adversely impacted by Massachusetts’ temporary ban on vaping products.

1933 Industries (CSE: TGIF) (OTCQX: TGIFF) said, “All our branded THC and CBD vape products do not contain vitamin E acetate, vegetable glycerin, or propylene glycol. All our products are made with ingredients that are known to be safe for consumers. All packaging contains our product ingredients, which are also listed on our website. Each and every product is third-party lab tested, and the results can be tracked via a QR code.”

Testing Boom

Of course, in order to be sure testing is the best way to go and this crisis could present an opportunity for the lab group to capitalize. CannaSafe, California’s leading accredited cannabis testing laboratory said it will expand contaminant testing to Vitamin E additives, in response to ongoing concerns around consumer vaping safety. CannaSafe is the first laboratory to offer this service and will also provide testing for additional additives including medium-chain triglycerides, vegetable glycerin, and propylene glycol in the coming weeks.

“Trusted cannabis companies are taking it upon themselves to impose high-quality standards on consumer products, and we are ready to work with any business that wants to show customers that their products are free of toxic additives,” said Aaron Riley, CEO of CannaSafe. “We also urge brands and retailers to share test results with their customers as a gesture of good faith.”

Modern wellness company, dosist, is the first brand to voluntarily undergo Vitamin E testing with CannaSafe. Other brands that will utilize Cannasafe’s testing technology include Orchid Essentials, Select, Heavy Hitters, Stiiizy, King Pen, Lowell Herb Co., Pure Vape, Tikun, and Raw Garden. The Vitamin E test is available to brands and manufacturers across the state for an additional $225.

 


Debra BorchardtSeptember 24, 2019
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At a press conference on Tuesday, Massachusetts Governor Baker said that he is banning all vaping products in the state until Jan 25, 2020. Across the country, consumers have reported vaping-related illnesses. 530 people said they have have been affected, and nine people have died. Massachusetts’ Department of Public Health said this month that all physicians must report any vaping-related pulmonary disease to the department, and the state is now tallying 61 possible cases.

Mission Dispensaries, has two current locations in Massachusetts (Georgetown and Worcester) and a third coming soon. The company’s Kris Krane, President of 4Front Ventures, which owns the dispensaries said, “The governor’s decision to ban the sale of vape products in Massachusetts is an unfortunate reaction to a genuine public health concern. Evidence suggests the overwhelming majority of vape-related illnesses have resulted from the use of unlicensed and unregulated vape cartridges obtained from the illicit market. Though he may have the best intentions, banning the sale of legal vape products produced in a heavily regulated industry will only serve to drive consumers and medical patients to the illicit market, possibly exacerbating these public health concerns rather than alleviating them. We stand behind our products and are confident the legal and highly regulated market is capable of protecting consumers.”

Many feel that banning all vape products is like throwing out the baby with the bathwater. Most of the illnesses have resulted from consumers using non-regulated and black market products.

“While the life-saving potential of nicotine vaping devices has been recognized by many public health authorities, several recent high-profile hospitalizations and illnesses have put vaping on trial, inviting scrutiny and calls for outright bans on the technology,” said Yaël Ossowski, deputy director of the Consumer Choice Center. “Contrary to the sensationalistic media reports, adults who use vaping and e-cigarettes as a means to quit smoking are vastly improving their chances of living long, healthy, and productive lives.

Canaccord Genuity analyst Bobby Burleson said, “In our view, recent reports of acute respiratory illness linked by regulators to THC vaping (and e-cigarettes) should ultimately accelerate the shift away from the black market for cannabis products in the US. The sell-off for stocks with heavy vape exposure has been severe with coverage names GNLN, KSHB, SLNG, and TILT meaningfully underperforming.”

He added, “While we are likely early days in resolving these industry challenges, longer term we expect associated revenue and EBITDA impact to our vape related coverage names to be more modest than the selloff suggests – vape is a lower margin business and THC vaping illnesses have largely been a black market phenomenon (with the exception of one case). It follows that supply chains and customer spending are likely to respond by shifting more dramatically to the tier one products and legal channels served by our coverage names.”


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