Mississippi Supreme Court Strikes Down Voter-Approved Medical Cannabis

5/17/2021

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The Mississippi Supreme Court on Friday tossed the voter-approved medical cannabis initiative because the state constitution requires signatures from five congressional districts to get on the ballot but the state only has four districts, the Associated Press reports. The justices effectively ruled the initiative void because the process is outdated.

“Whether with intent, by oversight, or for some other reason, the drafters of section 273(3) wrote a ballot-initiative process that cannot work in a world where Mississippi has fewer than five representatives in Congress. To work in today’s reality, it will need amending – something that lies beyond the power of the Supreme Court.” – Justice Josiah Coleman for the majority in the ruling

The initiative process was added to the Mississippi Constitution in the 1990s and requires petitioners to collect one-fifth of signatures from each congressional district. At the time the law was written, Mississippi had five congressional districts but following the 2000 Census the state dropped to four districts and initiative process language was never updated. The medical cannabis legalization campaign used guidance issued years ago from the state attorney general’s office and gathered signatures from the congressional districts used by the state in the 1990s.

In the dissent, which was backed by three of the nine justices, Justice James Maxwell opined that the secretary of state appropriately put the medical cannabis initiative on the ballot and that the majority opinion “correctly points out” that the high court cannot amend the constitution.

“Yet the majority does just that – stepping completely outside of Mississippi law – to employ an interpretation that not only amends but judicially kills Mississippi’s citizen initiative process,” he wrote.

Madison Mayor Mary Hawkins Butler, who filed the legal challenge, said the city was “pleased” with the decision as the court “followed the plain language of the Mississippi Constitution.

“…Unfortunately, the current voter initiative process is broken,” Butler said in a statement to the AP.

In 2011, voters approved two ballot initiatives – a voter ID law and a limit on eminent domain – but the Supreme Court decision does not mention them in the ruling.

End

Former Fall River Mayor Found Guilty of Extorting Cannabis Businesses

5/17/2021

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The former mayor of Fall River, Massachusetts, Jasiel Correia, was convicted by a federal jury on Friday of extorting cannabis businesses and defrauding investors of more than $200,000, the New York Times reports. Correia, 29, was arrested in 2019 for extorting cannabis companies in exchange for non-opposition letters, which are required under state law in order for cannabusinesses to open in a municipality. He was initially indicted in 2018.

Correia solicited bribes ranging from $75,000 to $250,000 in cash, campaign contributions, and other payments from cannabis industry operators. He also bilked investors in his app, SnoOwl, out of at least $360,000, the report says.

Correia, who was elected in 2015 at 23-years-old, was convicted on charges of wire fraud, falsifying tax returns, and related counts of extortion. Last December, his former chief of staff, Genoveva Andrade, pleaded guilty to charges of extortion, bribery, and making false statements in connection with Correia’s scheme.

Nathaniel R. Mendell, acting U.S. attorney for the District of Massachusetts, described the verdict as “a fitting end to this saga.”

“He sold his office, and he sold out the people of Fall River,” Mendell said to the Times.

Correia indicated he would appeal.

“It’s not a great day but I’ve had other not great days and everybody here knows that that’s watched this unfold. But we’re gonna have a great day of vindication and eventually the real truth will come out. There were no facts that were brought forward, there was no overwhelming evidence. Unfortunately, there was a couple things that didn’t go our way that were technical today and that’s where we’ll be on grounds for appeal and we’ll win that appeal and I will be vindicated, and my future will be very long and great.” – Correia, to reporters, via WPRI

Correia was both removed from office and voted back in during a special election in March 2019. He ran for re-election that November and lost to Paul Coogan.

In a statement published by the Fall River Reporter following the conviction, Coogan said it was a “dark day” for the city but the “end of a long chapter” in its history.

“A chapter that does not at all reflect the true character of our City,” he said. “The verdict today confirmed that Jasiel Correia used the Mayor’s Office in Fall River for his own benefit. He made the unfortunate choice to use his official duties and powers to benefit himself, when he should have been acting in the best interest of our community.”

End

Eric Sklar: Sustainable Cannabis Growing In California

5/14/2021

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California is recognized worldwide as a leader in cannabis cultivation and a hotbed for cannabis culture. For many in the industry, that reputation comes with a responsibility to forward sustainable business practices and keeping a professional, community-minded focus.

In this Q&A, Eric Sklar — CEO and co-founder of the Lake County, California-based Napa Valley Fumé — discusses how his company pursues its sustainability goals through donations for tree planting/reforesting efforts, how they develop their terpene-rich and proprietary cannabis strains, as well as their strategies for fostering a healthy and well-balanced cannabis farm environment. Eric also discusses the sense of tension between Napa Valley’s cannabis and wine industries, how Napa Valley Fumé works to destigmatize the cannabis plant, and more.

Ganjapreneur: How has your experience with California Fish and Game influenced your work at Napa Valley Fumé?

Eric Sklar: I wouldn’t say my work with Fish and Game has necessarily influenced my work at Napa Valley Fumé but when California passed Prop 64, the State was left to write a lot of regulations and how they were actually carried out. We played a really big role at the state level–helping them improve and perfect the regulations as they’ve written them and revised them. It was and still is a massive effort. We worked with our partner extensively in Sacramento, lobbying and working on the regulations. And then, in the cities and county where we operate, Lake County, the city of Clearlake, we spent a lot of time partnering with them, trying to get the regulations in those places to be as sensible as they can. We wanted to be a properly regulated business, but, at the same time, you don’t want it to be over regulated to the point where it’s too difficult to run a business. Some have argued that in California the regulations are too onerous. But, in the cities where we operate, we try to help them by operating as professional, green businesses that create lots of great jobs and in turn, provides local tax revenue. They seem very willing to work with us to make things run more smoothly by fine tuning the regulations making it work for both sides.

Why did Napa Valley Fumé choose to establish an outdoor cultivation site in Lake County, California?

Lake County has some of the cleanest air in California, certified by the American Lung Association. And the county welcomed us with open arms. We were lucky enough to have access to an incredible property that had the right growing conditions. We met a team of very talented local farmers who looked at farming the way we do – it needs to be sustainable and produce high quality with consistency. The care our team puts into our gardens, while being responsible to the planet, helps us produce high-quality sun-grown cannabis that highlights the unique terpene profiles of each of our strains.

How did you develop your proprietary strains? What drives the focus when choosing genetics for the brand?

Our cultivation team has spent decades honing their craft. They have dedicated their time to propagate the perfect components of each strain that create consistent crops, with high yields, that have complex terpene profiles. Focusing on unique strains that have rich terpene profiles was key for us. The thought was to focus on strains that have deep terpene profiles and that highlight all of the positives that come from growing cannabis outdoors under the warm California sun.

How does sustainability play a role in Fume’s business operations and ultimate mission?

This is at the core of how we’ve built our company. For starters, growing outdoors curbs a significant amount of electricity as compared to growing indoors. Afterall, sunlight is free. We use solar for the electricity we do use and bring in a swarm of beneficial insects to help us avoid using chemicals or pesticides. We have an abundance of water on our property so we do not have to pipe in water minimizing our footprint to almost zero. Plus, you tend to have bigger yields with sun-grown cannabis as you can let the trees, yes, trees, grow big and tall. Now, something that is near and dear to my heart and is part of our company’s mission–Planting Trees for Future Generations. My Chief Marketing Officer, Ian Hackett, developed our Give Back program. Part of this program is our partnership with One Tree Planted—an amazing organization that is focused on reforestation efforts around the globe. We plant a tree for every product sold and we focus our donation dollars in the area impacted by the Tubbs fire of 2017 and the Kindcade fire of 2019 as our farm and many of our team members were affected by these fires and we want to help our local communities as much as we possibly can.

How does your partnership with One Tree Planted contribute to your goal of sustainability?

We are not only Planting Trees for Future Generations within our organization, we also want to support 3rdparty outfits looking to do the same. With One Tree Planted, we are literally able to work with them to help reforest areas affected by the northern California fires in 2017 and more recently.

What is the interplay between terpene expression and growing in sunlight? How does Napa Valley Fumé harness this to create premium cannabis products?

There are many points-of-view around indoor and sun-grown. Given how the industry was forced indoors under prohibition, there was a lot of advancement made with cloning, grow lights, water systems, nutrients, additives, etc. that coupled with genetics of the various strains, and a lot of brain power, has created some good cannabis that has never seen a ray of sunshine. Then there is the other side that honors the plant, grows it from seed, feeds it water, warm sunshine, and a lot of TLC. These trees grow up to 16’ tall in our gardens and have a span of about 8’. We grow these trees in rows but give each tree the space it needs to grow and spread out. This allows each branch and fan leaf to absorb every inch of sunlights and the flowers seem to multiply. The roots run deep with these trees and we let them wander. The colas are as big as your arm and the trichomes glisten in the sun. From my point of view, the result is a spectacular, sun-grown, sustainable product that has a rich terpene profile as a result of the natural, full-spectrum light that the plant gets from the sun during the day and a few moonbeams at night.

How do you foresee the notions of terroir and appellations being used to categorize cannabis brands as the industry grows, and how does the LAKE GRADE brand harness these ideas?

Terroir and appellation are becoming part of the cannabis industry lexicon just like they are in wine. The appellation of origin is designed to protect and market the unique traits of a certain place to consumers. But, the county of origin is very important and needs to be respected. There are some iconic locations where cannabis has traditionally been grown in California. We also believe that there are appellations that have not been established yet and that have distinct beneficial properties, such as Napa County. We’re proud to start having the ability to cultivate in a region known for its amazing agricultural products.

What are the quality control methods put in place when processing cured flower? What is the LAKE GRADE rule of thumb, and why is it important?

We harvest all of our trees by hand. The colas are rack dried and hand trimmed. We monitor the quality at each step in the harvest process through to trimming and then storage. All climate controlled with frequent quality checks. We have operating procedures documented so each team member is aware of what needs to happen along the way. We take great care with our plants when we are growing them and that care and attention doesn’t stop once the plants are harvested. To that, our trim team are experts at their craft. They listen to some really great music in the trim room and they are always cracking jokes and telling stories while they trim our beautiful cannabis. The trim team came up with the ‘Rule of Thumb’ as they love big nugs and there is a good reason for the name. When you have trees that grow up to 16’ tall they produce colas the size of your arm. From these colas we get big buds so their benchmark for the bud size that we pack into our LAKE GRADE 1/8ths, is that each bud should be the size of your thumbnail – it’s actually the size of an average human thumbnail but when you see some of our packing puckered around the 1/8ths, you know you are pulling out a nug that is more like the size of your entire thumb. As I said, they like big nugs!

Where can California consumers find LAKE GRADE flower?

You can order LAKE GRADE statewide in California through Eaze.com and you can find us in premium retail locations such as Doobie Nights in Santa Rosa and Sweet Flower in Los Angeles. We are onboarding retailers with care but based on the growing demand for our sun-grown flower and pre-rolls, we will be in a retailer near you soon.

Napa County has been a difficult place for cannabis operators to do business since California legalized adult use, largely due to the negative stigma that cannabis still carries. Why has this developed in Napa specifically?

Prop 64 gave a great deal of control over what kinds of cannabis businesses may operate in their jurisdictions, and since the passage of Prop 64, many City and County Leaders have blocked or resisted the development of cannabis businesses. In hindsight, too much control was given to local elected officials. In many of the places where the elected officials have been obstructionist, the local voters overwhelmingly supported Prop 64. Napa is among these. I think that in many cases the elected officials are risk averse and see doing nothing as the safest path. In Napa this is compounded by the opposition to cannabis by some, not all, of the more powerful members of the well established wine industry.

What issues do prominent wine industry leaders cite when they oppose increasing cannabis business in Napa Valley? Does a sustainable approach to cultivation help mitigate these objections?

Many vintners in the area are mainly conflicted between two different areas. One, the terpenes affecting grape flavor and drift from nearby cannabis grow operators. And two, the overall vibe that cannabis farms could bring into the mix. Thankfully, these misconceptions are just that. As mentioned, all plants omit terpenes when growing and have been coexisting as long as plants have been around. Farmers have worked side-by-side year after year without harm, so the cannabis plant would be no different. To answer the second objection, canna-tourism would bring a much younger and fruitful demographic to the wine region. With that will come more tourism revenue and an overall forward-looking solution to an aging industry.

How does Napa Valley Fumé’s mission help de-stigmatize cannabis businesses in this area?

Napa Valley Fumé is working closely with the Napa Valley Cannabis Association to educate the public and local leaders about the reality of cannabis while trying to put to rest the negative myths that are associated within the cannabis industry. The Napa Valley Cannabis Association has held in person educational events before COVID, and have transitioned to virtual events for the last year. We’ve featured experts to talk about how cannabis businesses operate in the current landscape and are working to destigmatize the negative impact they have on local communities. It’s been great to work with the Napa Valley Cannabis Association to show that where cannabis cultivators operate, they’ve actually enhanced the cities and counties that allow them.

Thanks, Eric, for answering our questions! Learn more about Napa Valley Fumé at FumeBrands.com.

End

Republicans Introduce Federal Cannabis Bill With No Social Equity Provisions

5/14/2021

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Republican co-chairs of the Cannabis Caucus on Wednesday introduced a bill to remove cannabis from the federal Controlled Substances Act, issue rules for sales one year after enactment, allow financial institutions to serve cannabis companies in non-legal states, and direct the Department of Veterans Affairs to recommend cannabis.

The Common Sense Cannabis Reform for Veterans, Small Businesses and Medical Professionals Act, sponsored by Reps. Dave Joyce (OH) and Don Young (AK), would also require the National Institutes of Health to conduct studies on cannabis impairment and how cannabis can be used for pain management. Those studies, along with a report to Congress, would be required within two years of enactment.

In a statement, Steven W. Hawkins, interim president & CEO of the U.S. Cannabis Council, said it is “incredibly encouraging to see Republican leadership to end the federal prohibition and criminalization of cannabis.”

Young said that the feds’ “outdated cannabis policies have stood in the way of both individual liberty and a state’s 10th Amendment rights.”

Joyce described federal prohibition as “neither tenable nor the will of the American electorate.”

“My legislation answers the American people’s call for change and addresses our States’ need for clarity by creating an effective federal regulatory framework for cannabis that will help veterans, support small businesses and their workers, allow for critical research and tackle the opioid crisis, all while respecting the rights of States to make their own decisions regarding cannabis policies that are best for their constituents.” – Joyce in a press release

The legislation is also backed by the National Medicinal Cannabis Coalition and the National Cannabis Roundtable.

The measure was referred to the committees on Energy and Commerce, Judiciary, and Financial Services.

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Mississippi Appeals Court Upholds Life Sentence for Cannabis Conviction

5/14/2021

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The Mississippi Court of Appeals on Tuesday upheld the life sentence of Allen Russell, who was convicted of a cannabis possession charge, due to the state’s habitual offender law, the Associated Press reports. Russell, 38, was sentenced to life in 2019 after a jury found him guilty of possessing more than 30 grams of cannabis.

In Mississippi, a life sentence without parole can be imposed if the individual has previously served at least one year in prison on two separate felonies, of which one must be a violent offense. Russell was convicted in 2004 for two home burglaries and for unlawful possession of a firearm the following year.

In Mississippi, burglary is considered a violent offense whether or not there was proof of violence at the time of the offense. When Russell was convicted in 2004, burglary was only considered a violent crime if there was proof of violence; the law was changed 10 years after Russell’s conviction.

Russell’s appeal had argued the life sentence was “cruel and unusual punishment and is grossly disproportionate” to his crime of cannabis possession. The Appeals Court disagreed, ruling the sentence is in accordance with the state’s habitual offender law.

“The purpose of the criminal justice system is to punish those who break the law, deter them from making similar mistakes, and give them the opportunity to become productive members of society. The fact that judges are not routinely given the ability to exercise discretion in sentencing all habitual offenders is completely at odds with this goal.” – Judge Latrice Westbrooks, in the majority opinion

Russell was arrested for cannabis possession in 2017. He was found with a total of 44 grams for which the usual penalty in the state is up to three years in prison, a $3,000 fine, or both.

Judge P.J. Wilson, in his dissenting opinion, cited a 1983 U.S. Supreme Court case, Solem v Helm, where the high court found that “a life without parole sentence for a recidivist criminal convicted of a relatively low-level felony violated the Eighth Amendment,” he wrote.

“In terms of the gravity of his present offense and the extent and seriousness of his criminal history, I cannot draw any material distinction between Allen Russell and the defendant in Solem,” Wilson opined. “Thus, I conclude that we are bound under Solem to vacate Russell’s life without parole sentence. Accordingly, I respectfully dissent.”

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Minnesota House Passes Legalization, GOP Senate Leader Says It’s ‘Up in Smoke’

5/14/2021

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The Minnesota House on Thursday approved a measure to legalize cannabis for adult use; however the Republican-controlled Senate has no plans to take up the proposal before the session ends on Monday, MPR News reports. The lower chamber approved the bill 72-61.

Senate Majority Leader Paul Gazelka (R) told WCCO that the legislation is “up in smoke” in the Senate.

“Making legalized pot for fun, we just don’t think that’s a good idea,” he said in the report.

House Majority Leader Ryan Winkler, the bill’s author, said prior to the vote that cannabis prohibition has “failed Minnesotans, and it’s time for it to change.” The measure included automatic expungement provisions for cannabis-related misdemeanors.

“We have this bill before us today because Minnesotans have decided that it is time to legalize cannabis and right the wrongs of the criminal prohibition of cannabis that has failed Minnesota.” – Winkler, on the House floor, via MPR

Gazelka did leave the door open to expanding the state’s medical cannabis program and lowering criminal penalties for cannabis crimes.

This was the first time a cannabis legalization bill had ever made it to the floor of either chamber in Minnesota’s Legislature.

The reforms are supported by Gov. Tim Walz (D) who said in 2019 that he had directed all relevant state agencies to “put all of the building blocks in place” for legalization that would allow the state to implement the rules and regulations “the minute” the Legislature approved the reforms.

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Denver to License New Cannabis Businesses But Will Exclude Certain Neighborhoods

5/14/2021

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Denver officials announced on Wednesday they will be accepting licenses for new cannabis businesses as part of the city’s social equity program, but that some neighborhoods will be excluded because they are already oversaturated with cannabis licensees, according to The Denver Post.

It marks the first time since 2016 that Denver will accept new cannabis industry license applications. The city will only be issuing the licenses to delivery, hospitality, retail, and cultivation applicants who qualify as social equity applicants, according to the report.

Citing a high concentration of existing cannabis retail and cultivation location, the list will be updated annually and certain neighborhoods may be removed from consideration. Additionally, the city will not accept license applications located in neighborhoods with an already high concentration of cannabis businesses. New applicants will still be required to follow all zoning restrictions.

“Limiting density of marijuana businesses is a successful tactic Denver has taken to help prevent youth marijuana use. When it becomes commonplace for youth to see marijuana businesses, their perception of risk goes down and they are more likely to use marijuana.” — City spokesperson Eric Escudero, via The Denver Post

Denver‘s top neighborhoods for cannabis retail locations (which are therefore barred from approving any new shops) include:

  • Northeast Park Hill (11)
  • Baker (10)
  • Elyria Swansea (10)
  • Five Points (10)
  • Valverde (10)

Meanwhile, the top neighborhoods for cultivation/processing density are:

  • Montbello (32)
  • Northeast Park Hill (32)
  • Elyria Swansea (29)
  • Overland (23)
  • College View-South Platte (18)
  • Lincoln Park (18)

End

Cannabis Marketing Summit Announces Speaker & Workshop Line-Up Coming Online June 8-10

5/14/2021

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Producer Cannabis Marketing Association is excited to partner with MJBizDaily for a consecutive year.

Denver, Colorado — May 13, 2021 — Cannabis Marketing Association (CMA) is excited to announce the second annual virtual Cannabis Marketing Summit (CMS) held from June 8 to June 10 in partnership with MJBizDaily.

The Cannabis Marketing Summit is the premier annual event for marketers and communications professionals in the cannabis industry. Last year’s event attracted attendees from across North America representing prominent brands, retailers, and marketing agencies from all major markets. Surfside is this year’s Platinum Sponsor.

“Cannabis marketers have historically faced enormous challenges getting their brand message to market. The pandemic brought rapid change that presented additional challenges, but also numerous exciting opportunities that changed the landscape for communications professionals,” Lisa Buffo, Founder & CEO of Cannabis Marketing Association stated.

“With legalization moving at a breakneck pace, the CMS is the quintessential time to review these developments and chart the path forward for cannabis marketers.”

CMS will evaluate the current state of cannabis marketing and teach the practical tools, tactics, and data that produce effective strategies and campaigns for cannabis brands across the country.

There will be 12 sessions over 3 days — 3 networking sessions, 3 panels, 3 workshops, and a special CMA Members-Only track of workshops focused on marketing management. All sessions will be recorded for attendees to view at their leisure over the next 6 months.

Executives from Brightfield Group, Headset, Springbig, Fyllo, Baked Bros, The Clinic Colorado, Flowershop Media, Elev8 Cannabis, and KRMA Media Inc are a few of the presenters selected to speak.

Sessions include:

  • Cookies and IDFA Regulations: What Cannabis Marketers Need to Know Now
  • I Was Told There’d Be No Math: Examining Brand Loyalty Measures
  • Competitive Advantage Through Chemical Differentiation: Translating the
  • Scientific Explanation to the Marketing Message
  • Acquisition Workshop: Evaluating a Cannabis Brand
  • We Don’t Bite: The New Cannabis Influencer

Early Bird tickets are on sale through May 25, but tickets can be purchased up until the event begins.

Register now to reserve your space and learn, play, and network with the cannabis industry’s top communications professionals this June 8-10!

About Cannabis Marketing Association
Cannabis Marketing Association is a membership organization focused on education and best practices for industry marketers. CMA’s mission is to bring a positive perception to, and authentic understanding of, cannabis and its consumers around the world. CMA does this by supporting the professional growth of cannabis communications professionals by providing industry education, cultivating community, and establishing best practices.

Contact
Lisa Buffo
Cannabis Marketing Association
hello@marketingcannabis.org

End

The Trident by Hitoki Review

5/14/2021

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The Trident by Hitoki sparks immediate interest in any cannabis connoisseur because, unlike any other smoking device on the market, the Trident is the first smoking device that uses laser combustion. Yeah — lasers, y’all.

The brand was started by two brothers, Joe and Jack Tran, who as kids used to play together with laser pointers to project animal prints onto the walls or ceilings. As adults, they have revisited this childhood appreciation for lasers by inventing a novel and healthy alternative to smoking cannabis with fire. What they created is a water-filtered 445 NM blue laser-powered bong that is so efficient that a single laser cycle can get one person quite high.

Features

Combining laser combustion with water filtration creates a clean, flavorful hit that is complemented by the groovy sight of blue lasers visible through the red paneled protective chamber. The device consists of a few different pieces that lock together before use. The cylindrical piece is weighty, consisting of a water chamber affixed to the area where the hose or mouthpiece is attached. Stacked on top of this is the red chamber that contains the lasers, directly under the electrical setup that powers the whole thing. The Trident is activated by an LED-lit button on top of the device and charges with a USB-C charger that comes included in the box. After one quick watch of the instructive YouTube video, it was easy to use.

How to Use The Trident by Hitoki:

  1. Fully charge a new device with the provided charger before using it.
  2. Unlock the inner locks and attach the hose adapter to the bottom chamber.
  3. Twist the water reservoir open to fill with a small amount of water, don’t fill past the line at the bottom of the metal stem.
  4. Unscrew the loading chamber from the top of the water chamber and pack with finely ground herb, use the flat end of the included dual-tool to lightly pack herb in.
  5. Reconnect inner locks — if they aren’t connected, the laser won’t fire.
  6. Insert the hose or mouthpiece into the hose connector.
  7. Press the power button at the top of the unit 5 times to activate the device, then press the button three times to choose between the three heat settings.
  8. Choose between holding the button or double-tap the button for a continuous 9-second beam, pull on the hose to fill the chamber while the laser fires.
  9. Pull from the hose or attachment until the chamber is empty.

Vaping with The Trident

The Trident is a novel and useful piece of technology that is ideal for at-home use due to its weight and size. I wouldn’t recommend this as a portable piece, but it can be easily transported to a friend’s house in a backpack for a group sesh. The option to choose between a hookah-style hose and a mouthpiece also makes it versatile for single-use to group sessions. As far as consumption goes, the smoke is crisp and clear, solely featuring the flavor of the bud rather than the sometimes muddled flavor created by combustion. Also, it is pretty simple to use once you get a quick tutorial — even my tech-challenged husband figured it out on his own after I explained it only once.

Conclusion

This is the first time I’ve been impressed by a tabletop smoking device since first trying the Storz & Bickel Volcano in 2011, which is really saying something because the Volcano teeters on perfection. The fact that The Trident is slightly more portable and uses nifty lasers pushes it to a different level. I’d recommend The Trident by Hitoki to anyone who is looking for an alternative to traditional smoking methods, has interest in cool technology, or is in search of the clearest high.

End

California Officials Sentenced to Prison in Cannabis Bribery Scheme

5/13/2021

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A pair of former officials for Calexico, California were sentenced to two years in federal prison in San Diego for accepting a bribe from an undercover FBI agent, according to a U.S. Attorney’s Office press release.

The pair pled guilty in June 2020 on conspiracy to commit federal program bribery. The former officials — David Romero, a former Calexico, California city councilman and winning candidate for mayor, and Bruno Suarez-Soto, the former Commissioner of Economic Development for the small town east of San Diego — believed they were accepting $35,000 in exchange for a cannabis dispensary permit. Prosecutors with the U.S. Attorney’s Office for the Southern District of California said the men “guaranteed” the agent the permit and admitted to accepting other bribes, bragging to the agent at one point, “This isn’t our first rodeo.”

According to charging documents, the two men assured the agent they would follow through, telling them they would not “disappear.”

“I can’t [disappear]. I’m Mayor Pro Tem. In July, I’ll be Mayor. If anything, I ran based on this platform, which is cannabis.” — David Romero, quoted in charging documents

Acting U.S. Attorney Randy Grossman said in the press release, “Public office is a public trust. Anyone who violates that trust by selling the government’s business to satisfy their own greed should face a reckoning. Citizens of this district deserve no less.”

In the plea, the men acknowledged they received a second cash payment of $17,000 in January 2020 and the money was intended to “influence” their duties as Calexico officials. They went on to admit the $35,000 payment was not their first bribe. Both men were interviewed after the second payment and warned making false statements was a crime and both lied repeatedly to agents about their involvement in the scheme, U.S. Attorneys revealed in the press release.

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African Nations Pivot to Cannabis as Tobacco Demand Declines

5/13/2021

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Malawi President Lazarus Chakwera said the nation needed to “diversify and grow other crops like cannabis” instead of tobacco, which he described as in “declining demand worldwide,” Reuters reports.

Tobacco is the “largest single crop contributor” to the nation’s gross domestic product, Chakwera said during his state of the nation speech. Cannabis was legalized for industrial and medical use in Malawi last year.

“I have directed (the) Ministry of Agriculture to begin a radical search for a basket of alternative crops so that by 2030, Malawi can do away with its reliance on tobacco, except in limited cases where there are pre-agreed quotas.” – Chakwera during his state of the nation speech via Reuters

On Wednesday another African nation, Zimbabwe, said it expected cannabis export earnings outpacing those of tobacco this year with an anticipated $1.25 billion in sales, according to a Bloomberg report.

The forecast by Zimbabwean officials comes as the nation abolished a rule requiring co-ownership between government and private investors in the cultivation of cannabis for medicinal use, as officials seek to encourage the cultivation of what the country sees becoming the biggest cash crop.

The agreement also allows investors to keep all their U.S. dollar proceeds from cannabis exports for two to four years, depending on whether the exported product processed or raw. Under the current regime, exporters are only allowed to retain 60% of their foreign exchange earnings due to chronic shortages.

Other nations in Africa that have passed cannabis law reforms include Zambia and Lesotho.

End

Firefighter Sues for Wrongful Termination Over Medical Cannabis Use

5/13/2021

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A Buffalo, New York firefighter terminated from his job earlier this year following a positive drug test for cannabis has filed a lawsuit against the city and the department, the Buffalo News reports. Scott Martin is a 12-year veteran with the department who served with the Air Force in Iraq and Afghanistan and is a registered patient in the state.

David C. Holland, who specializes in laws related to cannabis and is representing Martin in the lawsuit, said his client was “terminated wrongfully because the collective bargaining agreement hasn’t been updated.”

Medical cannabis has been legal in New York since 2014 and Holland said the fire department is “seven years behind.” In March, state lawmakers legalized cannabis for adult use.

Martin says he suffers from post-traumatic stress disorder and back pain from his military service, firefighting work, and time as an emergency medical technician.

In an interview with the News, Martin said he uses cannabis before he goes to bed.

“People think you have to do it all the time. You don’t. … It metabolizes and then I’m not high from it. I don’t need to be high when I’m at work. I’m focused when I’m at work.” – Martin to the News

Holland’s lawsuit argues that the conditions included in the state’s medical cannabis law should be considered disabilities, therefore firing him should be considered workplace discrimination. He is seeking reinstatement to his position, rank and seniority, back pay, and to be reassigned to Truck 14, 1st Platoon.

A GoFundMe set up to help the veteran has outraised its $10,000 goal as of Wednesday evening with $13,879.

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Arkansas Medical Cannabis Sales Surpass $300M

5/13/2021

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Medical cannabis sales in Arkansas have surpassed $300 million since sales began in mid-2019, representing an average $885,000 in sales per day, according to Arkansas Medical Marijuana Commission figures outlined by KTLO.

In all, 45,286 pounds of medical cannabis has been sold in the state. Last month, dispensaries sold 2,517 pounds of cannabis reaching $18.5 million in sales.

In Arkansas, there are 32 dispensaries serving the states 76,553 active medical cannabis patients. The number of patients represents a 9,915 patient increase from April. Ultimately, the state will allow 33 dispensaries total.

Last year, amid stay-at-home orders in the state brought on by the coronavirus, the state saw a spike in medical cannabis purchases with Arkansas making the maximum 2.5-ounce purchase every two weeks. At that time, just 22 dispensaries were operational. As of May 7, 2020, the state had sold about $73 million worth of medical cannabis, which equates to about 11,000 pounds.

The Releaf Center, located in Bentonville, led all dispensaries in per-pound sales with 4,863 since they opened in August 2019. The next highest volume retailer was Green Springs Medical, in Hot Springs with opened in May 2019, with 4,007 pounds.

The daily average Arkansans are spending on medical cannabis purchases – $885,000 – is an increase of $5,000 compared to figures reported last month.

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Miami Sued For Not Allowing Cannabis Dispensaries

5/12/2021

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Two medical cannabis companies are suing the city of Miami, Florida over their refusal to allow dispensaries, the Miami Herald reports. The city has neither created zoning laws to restrict cannabis businesses nor outright banned them, instead relying on an internal legal opinion that argues the voter-approved reforms are moot because federal law schedules cannabis as a controlled substance with no medicinal value.

MRC44, one of the plaintiffs in the lawsuit, has been trying to open a dispensary in the city since 2019. Miami officials, citing the city attorney’s opinion, have denied the company a certificate of use for the project; however, the city zoning board has sided with the company in their appeal prompting city administrators to challenge the decision with the Miami City Commission, the report says.

MRC44 is joined in the lawsuit by another, unnamed firm and the companies claim they have the right to open anywhere in the city without municipal permits because of Miami’s lack of medical cannabis ordinances.

City Attorney Victoria Méndez, who wrote the legal opinion declaring federal law supersedes the state constitutional amendment, said the city would address the lawsuit in court after city commissioners instructed her to seek declaratory action from the judge to settle the issue of state versus federal law.

“I feel that there’s a discrepancy or a conflict between state and federal law, and I just want to ask a court of law to opine on that.” – Méndez to the commission via the Herald

Attorney Ian Bacheikov, who represents medical cannabis businesses on land use issues, told the Herald that state law requires that dispensaries are treated the “same way” pharmacies are treated but officials are “saying dispensaries are something else and they are not permitted.”

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Louisiana House Passes Cannabis Decriminalization Bill

5/12/2021

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The Louisiana House has passed a measure to decriminalize cannabis possession up to 14 grams which would limit the fine to $100 and no jail time, the Lafayette Daily Advertiser reports. The bill passed the chamber 67-25 and moves next to the Senate.

Democratic Rep. Cedric Glover, the bill’s sponsor, described the measure as “common ground” and said he was inspired to introduce the measure following similar reforms in his hometown of Shreveport. Republican Rep. Alan Seabaugh, also from Shreveport, introduced the amendment which set the penalties outlined in the legislation.

The proposal does not change the penalties for cannabis distribution.

The chamber is also set to consider today a bill to legalize cannabis for adult use in the state. That debate has been twice delayed by the bill sponsor, Republican Rep. Richard Nelson, because he didn’t have the votes to pass the reforms.

A poll released in March from JMC Analytics and Polling found 67% of Louisianans support legalizing adult-use cannabis – a 13% increase from polling by the firm on the topic last year.

The poll found 60% of Republicans supported legalizing cannabis use and possession, along with 67% of Democrats and 79% of those registered with another party and independents. The majority of Democrats (66%) and Republicans (56%) also said they were more likely to support a candidate that backs broad legalization.

Earlier this month, the chamber approved a measure to allow smokable forms of medical cannabis. The JMC poll found A supermajority of respondents (75%) favored allowing smokable forms of cannabis in the state’s medical cannabis program.

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Cannabis Brand With Facilities in Colombia Goes Public on Nasdaq

5/12/2021

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Toronto, Canada-based Flora Growth Corp., which cultivates cannabis in Colombia, began trading yesterday on the U.S. Nasdaq Capital Market with an initial public offering of 3,333,333 shares at $5.00 per share. The IPO is expected to raise $16,666,665, the company said.

The company is trading under the “FLGC” symbol.

Flora’s cultivation business in Colombia is wholly outdoors, which costs just 6 cents per gram to operate, while indoor cultivation in North America runs about $1.25, CEO Luis Merchan said in an interview with CNN Business.

“We have robust cultivation facilities and we intend to use capital from the stock sale to expand our operations in the US, infrastructure in Colombia and sales team worldwide.” – Merchan to CNN

The firm reported $106,000 in revenue last year and is not yet profitable but Merchan said the firm would make money as a low-cost cannabis producer. He indicated the company is focused on edibles and personal care products rather than recreational-use products, such as pre-rolls. Flora has a partnership with 2014 Miss Universe and former Miss Colombia, Paulina Vega, to sell CBD-infused skincare products.

In their F-1 filing, Flora said it will “require the funding from this offering to begin to plant, grow and harvest our cannabis products on a commercial scale, to produce oil extracts, to access needed facilities and labor and to achieve large channel distribution of our products,”

Shares of the company fell 4.2% by the close of markets on Tuesday but gained 2.3% in pre-market trading. The IPO is expected to close on Thursday.

Boustead Securities, LLC acted as the sole underwriter for the offering with MKM Partners acting as co-manager.

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CBD news and information

Better Business Bureau Warns of CBD Free Trial Scam

5/11/2021

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The Better Business Bureau (BBB) is warning consumers of a CBD free trial scam which, in the end, bills customers hundreds of dollars. Companies utilizing the scheme offer customers free products – requiring only shipping and handling payment – but are then charged with a monthly subscription between $80 and $100.

The BBB said it has received dozens of reports on the scam via its Scam Tracker.

“You don’t find out until 3 weeks later that you have signed up for a subscription and you are charged $99. They will not refund your money. They say you had 14 days to cancel (when you call them to complain) but there is no description of that on the website.” – An unnamed customer via BBB Scam Tracker

BBB said that in some cases the products appear to be celebrity-endorsed; however, there have been several reports of CBD companies using the names and likenesses of celebrities without their knowledge. Last year, Clint Eastwood filed lawsuits against 20 CBD firms over their use of his image along with fabricated quotes. Last November, Sir David Attenborough’s spokesman told the Mirror that the beloved nature documentary host “has had no involvement whatsoever” with the products using his name and likeness.

The BBB specifically mentions reports naming products endorsed by ministers Joyce Meyer and Joel Osteen but it’s unclear whether they legitimately back the company perpetrating the scam.

The BBB suggests researching a company before signing up for anything, understating the terms after the free trial ends, remaining skeptical of celebrity endorsements, and reporting the losses to credit card companies.

End

Georgia Medical Cannabis Businesses Coming Soon

5/11/2021

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Georgia’s legislature has sent a bill to Gov. Mike Kemp (R) that would license medical cannabis manufacturers and allow dispensaries to sell “low THC” oil (defined as oil containing less than five percent THC) — in Georgia, according to the Capitol Beat News Service.

Currently, the oil is legal in the state — in fact, the state has 19,000 registered medical cannabis patients — but there is no way to legally purchase the product. According to the report, if Governor Mike Kemp signs SB 195, Georgia will award six of 70 applicants licenses to manufacture the oil. Each licensee will be allowed five dispensary locations and will have 12 months to produce medical cannabis for patients. Additionally, the measure will give local governments more control over where cannabis businesses can be located. Currently, state law requires cannabis businesses to be at least 3,000 feet away from schools, churches, and activity centers.

Andrew Turnage, executive director of the Access to Medical Cannabis Commission in Georgia, told the News Service that he believes the oil could be in dispensaries in fewer than 12 months.

“We are cautiously optimistic that this could be a very good Christmas for THC oil patients in Georgia.” — Turnage, via Capitol Beat News Service

Critics believe that cannabis could serve as a gateway drug and that Georgians who do not really need the medicine will game the system to acquire the oil. But Turnage said there are plenty of guardrails to make sure only those who need medical cannabis will have access to the program. Furthermore, the law requires certain security measures for cannabis manufactures. Turnage also highlighted that the level of THC found in the oil is “marginal … compared to any street drug.”

“Anyone that’s looking to get high, this is probably going to be their last choice on the list,” he said.

Under current state law, the University of Georgia and Fort Valley State University can cultivate cannabis to study its medicinal benefits. However, neither school has applied for a license, the report reveals. The new bill will allow other schools to apply for licenses to study the oil produced by licensed manufacturers.

According to the report, Clark Atlanta University, Morehouse College, Emory University, and Augusta University have expressed interest in the program. “If the universities decide that they want to pursue their university licenses, we are very excited about the possibilities that exist for university research,” Turnage told the News Service.

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South Dakota to Prohibit Medical Cannabis Use by Law Enforcement

5/11/2021

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The South Dakota Legislature’s Rules Review Committee on Monday determined that the state’s Law Enforcement Officers Standard and Training Commission can prohibit medical cannabis use by members of law enforcement and 911 dispatchers, KELO reports. The ruling comes despite a provision in the state’s medical cannabis law that prevents state boards and commissions from penalizing for cannabis use.

Republican Rep. Jon Hansen, who voted to accept the package with the committee’s three other GOP members, said allowing medical cannabis use by law enforcement could cause problems if an officer involved in a shooting were to test positive for cannabis.

Rep. Kevin Jensen, another Republican member of the committee, noted that it is illegal for a firearm dealer to sell a gun to someone who admits on the federal form to using cannabis or other controlled substances.

Last month, a federal bill was introduced that would allow individuals with medical cannabis IDs – and those in states where cannabis is legalized – access to firearms.

The package was opposed by Senate Democratic leader Troy Heinert and his colleague Rep. Ryan Cwach.

In November, South Dakotans voted to approve both medical and adult-use cannabis reforms; however, the latter is being challenged in the state’s Supreme Court, which heard arguments in the case late last month.

The plaintiffs in the case are two law enforcement officers who filed the challenge at the behest of Republican Gov. Kristi Noem. In February, a lower court invalidated the reforms ruling that the amendment violated state law by dealing with multiple issues.

The medical cannabis reforms, though, are expected to take effect as planned on July 1.

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USDA Approves Minnesota’s Revised Hemp Plan

5/11/2021

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The U.S. Department of Agriculture has approved Minnesota’s revised hemp production plan marking the first year the state is not operating under the 2014 pilot program rules. The new hemp regime follows some federal guideline changes, including opening up the testing window from 15 to 30 days and allowing remediation of hemp plants that exceed 0.3% total THC but below 1%.

Under the state plan, growers cannot be assessed more than one negligent violation in a year, while the previous plan allowed an unlimited number of assessed violations. The penalty for violations is unchanged, the state Agriculture Department said in a press release, noting that hose with three negligent violations in five years will be ineligible for a license for five years.

Minnesota Department of Agriculture (MDA) Assistant Commissioner Whitney Place called the approval “a major step forward.”

“…And we’re pleased that modifications have been made at the federal level that can ensure Minnesota’s hemp growers and processors are successful in this fledging industry.” – Place in a statement

Hemp cultivators in Minnesota must be licensed by the state Department of Agriculture. The agency indicated it has received 454 applications for this year, which is down slightly from the 586 applicants in 2020 and the 505 applicants in 2019, according to state data.

In 2019 – the year following federal hemp reforms – there were 7,353 acres of hemp grown outdoors in the state along with 403,304 square feet grown indoors. In 2020, those figures dropped to 4,690 and 282,790, respectively.

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Cosmic Sister Zoe Helene: Psychedelic Feminism, Healing, and Educational Advocacy

5/11/2021

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The psychedelic movement has been making much necessary noise. People have the right to choose how they treat, care for, and medicate their minds and bodies. Plants heal and there is ample research supporting the healing benefits of psychedelic plants. Cannabis has been a gateway — a gateway to proof that better healing rests with plants. And this proof has led to the loud and proud advocating for psychedelic plants and fruiting bodies like magic mushrooms/psilocybin, Ayahuasca, DMT, and others.

There are so many advocates that deserve much praise. In this piece, we will feature Zoe Helene — the founder of Cosmic Sister, an environmental feminist educational advocacy collective founded in 2007 — and Danielle Negrin, executive director of the San Francisco Psychedelic Society. Together the two have teamed up on many initiatives all in support of healing through psychedelics.

About Zoe Helene and Danielle Negrin

Zoe is a cultural activist who coined the term Psychedelic Feminism. This term is used to describe an environmental sub-genre of feminism that embraces the power of psychedelics from a women’s healing, empowerment, and self-liberation perspective.

I asked Zoe to elaborate a little on psychedelic feminism:

“Psychedelic Feminism is multifaceted, but essentially, it’s about exploring feminist issues with sacred psychedelic plants and fungi as co-evolutionary allies. It’s for anyone on the gender spectrum, because we’re all harmed by the patriarchy and we’re in relationship with each other.

“Psychedelic Feminism is also about ensuring that the community and the field (we’re hearing the “industry” a lot recently, which is too bad) isn’t just another sad, subculture slice of the dominant patriarchal cultural pie. Patriarchy is a product of male supremacy, and male supremacy and white supremacy walk hand in hand.

“All the big isms — sexism, racism, ageism, classism, ableism — are systemically interconnected sub-categories rooted in ‘power-over’ models that have spread cultural sickness across the planet.”

Danielle specializes in building conscious community, providing psychedelic education, providing addiction recovery services and resources, and integration. Not only is she the executive director of the San Francisco Psychedelic Society, she is also on the advisory board for Project New Day, and was on the founding team of Decriminalize Nature Oakland. She is a believer in sacred intentional practice and the potential of making a better world for ourselves, our communities, and our Earth.

Which was what made this sit-down was important — as we move closer to psychedelic legalization, we must focus on psychedelics to heal, not as an industry.

About Cosmic Sister

Cosmic Sister advocates for women, wilderness, wildlife, and for the natural right to work with sacred plants. Promoting women’s voices in the field of psychedelics and beyond is a crucial part of their mission. One of the reasons that Cosmic Sister is huge on education and helping amplify voices is to support an ideal future.

“Educational advocacy is a core concept in our approach to supporting rapid cultural evolution. Our interconnected advocacy initiatives spread the word about good work being done by women around the world. Cosmic Sister supports women (and people across the gender spectrum) working in and for the environment, progressive mind-body-spirit wellness, human and non-human rights, ethical lifestyle choices and more. We are truth-seekers, trailblazers and love warriors, and we have hope for the future.”

I am one of the women that Cosmic Sister so graciously supports. Zoe has been a core member of my network. I’ve been a fan of her advocacy and voice, and she has been a HUGE part of my journey into the world of psychedelic research. Through Cosmic Sister, I was awarded a scholarship (more on this later) for a course that has helped me learn so much about the magic of microdosing with psilocybin.

Cosmic Sister offers scholarships all around the world: the United States, Canada, Japan, Nigeria, India, Peru, Costa Rica, Guatemala, Panama, Ecuador, Mexico, France, the United Kingdom, and more.

About San Francisco Psychedelic Society

The San Francisco Psychedelic Society is a Bay Area 501(c)(3) non-profit organization devoted to weaving community with people from all walks of life who share an interest in the exploration of altered states of consciousness.

Their mission is to provide community, support, and integration resources to those seeking harm reduction, addiction recovery, spiritual growth, and personal development. With a community of over 6,000 members, they are devoted to the exploration of the expansion of consciousness and the role psychedelics have played in the evolution of human consciousness. The organization honors indigenous lineages access without dogma, and the destigmatization of all drugs.

Cosmic Sister and San Francisco Psychedelic Society’s Partnership and Collaborations

I knew of one very important collaboration between Cosmic Sister and the San Francisco Psychedelic Society: the Microdose Movement course led by the San Francisco Psychedelic Society, created by the San Francisco Psychedelic Society, the Microdosing Institute, and Flow State Micro. Through a scholarship awarded by Cosmic Sister under their Cosmic Sister Special Talent Scholarship, I and three other women/womxn were able to attend the six-week course.

Zoe explained more about the initial meet-up, development of relationships, collaboration in general, and the collaboration for the Microdose Movement course:

“A mutual friend and colleague, Elizabeth Bast, introduced me to Danielle. Elizabeth received two of our Cosmic Sister Women of the Psychedelic Renaissance grants, one for speaking and another for a writing project about sexual ethics in the sacred medicine scene. Since, Danielle and I have had many long conversations and we’ve become friends and allies. We vibe on multiple levels, but I especially appreciate her warm heart, courage, integrity, and dedication to the sacred plants and fungi. We trust one another.

“As soon as Danielle reached out to me about the new Micro dosing Movement course, I was like, ‘Hell yeah!’ It’s timely and much-needed, and she’ll handle it beautifully. We love to participate in collaborations such as the Micro dosing Movement scholarships because it’s a great way to acknowledge and support talented, heart-centered people who have something special to contribute.”

The San Francisco Psychedelic Society and Cosmic Sister share the passion and mission as it relates to psychedelic feminism.

“We collaborate by helping each other lift and celebrate underrepresented voices in the scene and by creating projects and campaigns that demonstrate the power of diversity — not just as a strength, but as essential — and not only from the perspective of ancestry.

“Ultimately, Psychedelic Feminism is about the state of our species — specifically, our moral responsibility to own our actions and behaviors towards other humans and non-human living beings, including Earth.

“Females have been oppressed by an extreme power imbalance for millennia, and this imbalance has warped and continues to warp the way we are evolving as a species. We’ve become the cruelest and most destructive lifeform on Earth, and we’re dangerously close to destroying this spectacular planet. We’re committing mass suicide — and taking all the other lifeforms down with us.”

In Closing

Zoe concluded our interview with the following:

“We all have a past that led us to where we are as individuals, and all of our backstories brought us to where we are as a collective. Our actions, consciously or unconsciously, are co-creating a future — again, not just for humans, but also for non-humans.

“Both the San Francisco Psychedelic Society and Cosmic Sister are founded and led by females, and we have wisdom earned from our personal experiences in a male-dominated society. We don’t just recognize the obvious problems; we also cringe.

“Exploring our individual and collective past with sacred psychedelic plants and fungi as companions can help find buried treasures of truth we didn’t even know existed. Much of what we discover can be extremely painful, but facing truths is essential for real, lasting liberation, growth, and healing. All truths are important.”

PHOTO: Zoe Helene with Spirit Bundle. Zoe’s matrilineal ancestors burned Asterion (Cannabis), Greek sage (Salvia fruticosa), Cedar (Cedrus libani) and Lavender (Lavandula) in healing rituals. Photo by Tracey Eller (@traceyeller).

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Feds Announce New Standard THC Dose for Cannabis Research

5/10/2021

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The National Institute on Drug Abuse (NIDA) announced on Friday it was setting the new standard THC dose for cannabis research at five milligrams, Marijuana Moment reports. The requirement took effect immediately.

“Inconsistency in the measurement and reporting of THC exposure has been a major limitation in studies of cannabis use, making it difficult to compare findings among studies. A standardized measure of THC in cannabis products is necessary to advance research by providing greater comparability across studies of both its adverse effects and potential medical uses.” — NIDA Notice of Information excerpt

NIDA said the five-milligram standard unit was selected following extensive stakeholder input, expert consultation, and a request for information from the general public.

In its notice, NIDA recognized that “the same quantity of THC may have different effects” depending on a number of variables, including the method of administration, other ingredients in the product, an individual’s genetic make-up and tolerance levels, and more. Additionally, the notice clarified that the newly standardized THC unit does not limit the quantity of THC permissible in cannabis research, only the way in which investigators must record and report their work.

While cannabis remains a Schedule 1 substance under federal law, research efforts are difficult but not completely blocked: a 20-year study by the University of Minnesota recently revealed that long-term cannabis use has little to no effects on cognitive abilities, while another recent study found cannabis use to be associated with increased rates of exercise and physical activity.

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Trulieve to Acquire Harvest Health in Largest-Ever U.S. Cannabis Deal

5/10/2021

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Trulieve Cannabis Corp. is set to acquire all of the issued and outstanding shares of Harvest Health & Recreation in a deal worth approximately $2.1 billion. It’s the largest-ever cannabis transaction in the U.S. and will create the nation’s most profitable multi-state operator, the companies said in a press release.

The combined firm will have a consensus 2021 revenue of $1.2 billion, according to the release.

Kim Rivers, Trulieve CEO, described the deal as the industry’s “largest and most exciting acquisition so far.”

“This combination offers us the opportunity to leverage our respective strong foundations and propel us forward with an unparalleled platform for future growth. Harvest provides us with an immediate and significant presence in new and established markets and accelerates our entry into the adult use space in Arizona.” – Rivers in a statement

Steve White, CEO of Harvest, described Trulieve as having “achieved unrivaled success and scale in its home state of Florida.”

“As one of the oldest multi-state operators, we believe our track record of identifying and developing attractive market opportunities combined with our recent successful launch of adult-use sales in Arizona will add tremendous value to the combined organization as it continues to expand and grow in the coming years,” he said in a statement.

The firms will have a combined 2020 adjusted EBITDA of $266 million and a combined 2021E consensus adjusted EBITDA of $461 million. The combined business will have operations in 11 states, consisting of 22 cultivation and processing facilities with a total capacity of 3.1 million square feet, and 126 dispensaries in both medical and adult-use cannabis markets.

The deal was unanimously approved by the board of directors for both companies.

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Consultant Arrested Over Hemp License Pay-to-Play Scheme

5/10/2021

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A political consultant to the Texas agriculture commissioner was arrested last week for his alleged role in a scheme to solicit campaign contributions and kickbacks in exchange for hemp licenses, the Texas Tribune reports. Todd Smith is accused of taking $55,000 in the conspiracy and is charged with third-degree felony theft.

According to an arrest warrant affidavit outlined by the Tribune, Smith and others involved allegedly solicited a total of $150,000 to guarantee a hemp cultivation license, including $25,000 upfront for a survey they said was required to get a license in the state. The affidavit says such a survey was “never attempted” by Smith.

Smith’s attorneys, Sam Bassett and Perry Minton, told the Tribune that their client “never guaranteed” anything to anyone with regard to hemp licenses and “never violated any laws and did not steal anything from anyone.” Smith, they said, is a lobbyist who was “paid and performed these very duties” for clients interested in obtaining a hemp license.

Sid Miller, Texas Agriculture Commissioner, told the Tribune that he “had no idea” about the scheme and noted hemp licenses in the state cost $100 for one year.

In one case, Smith is accused of using a middle man to retrieve $30,000 in cash from a prospective hemp farmer in exchange for a guaranteed hemp license. Once the would-be licensee found out he was not at all guaranteed a license, he contacted Smith who denied knowing anything about the $30,000 exchange but admitted to receiving a $5,000 gift from the middle man.

Smith was released on Friday on a personal recognizance bond. Bail was set at $10,000.

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