Study: Certain Cannabinoid Extracts May Dampen Fatal COVID-19 Symptoms

6/08/2020

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Researchers at the University of Lethbridge’s Department of Biological Sciences and Pathway RX, a company aiming to develop cannabis therapies, suggest that certain cannabis strains show the potential to quell an immune system in the midst of a cytokine storm which occurs in some COVID-19 patients and leads to respiratory distress syndrome, the Lethbridge Herald reports.

The study is an update to the researchers’ findings published in April that found THC and CBD extracts could help prevent the coronavirus from spreading to and infecting humans.

Dr. Olga Kovalchuk, an author behind both studies, said in a press release the new research “identified three extracts that are very, very good strains” and the researchers altogether “have five strains we could formulate a clinical trial on right now.”

The specific strains identified by the researchers seem to control the immune response, working to prevent the cytokine storm while still maintaining some of the molecules needed to fight the virus. Kovalchuk says the extracts work through the endocannabinoid system, which regulates many of the body’s responses and has receptors that bind with cannabinoids.

In their initial study, the researchers did not posit cannabis extracts as a cure for the virus but suggested they might be used as an “adjunct therapy” in combating the virus’ spread. The updated research suggests that cannabis extracts could be used therapeutically in patients suffering from coronavirus-related respiratory distress syndrome.

The new study is undergoing peer review but is available as a preprint on Research Square. The team indicated that the next step for the study is a clinical trial. The researchers said they are seeking partnerships and support to conduct a proper randomized control trial to see whether the addition of these extracts diminishes the severity of COVID pneumonia and the cytokine storm.

Last week, Philadelphia, Pennsylvania-based FSD Pharma was granted permission by the Food and Drug Administration to submit an Investigational New Drug Application for a clinical trial using a synthetic cannabinoid drug called ultramicronized palmitoylethanolamide (micro PEA) to treat COVID-19. FSD Executive Co-Chairman and CEO Raza Bokhari said the cannabinoid could mitigate the cytokine storm. FSD is currently conducting a Phase 1 clinical trial in Australia.

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Arkansas Allows Cannabis Legalization Campaign to Collect E-Signatures

6/08/2020

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The Arkansas Supreme Court has ruled that cannabis legalization activists can collect petition signatures electronically as part of their campaign to put the question to voters in November, KATV reports. The ruling comes after state officials shut down the signature-gathering process for petitions in the state amid the coronavirus pandemic.

Despite the pandemic, the group has to submit around 89,000 signatures by July 3. Arkansans for Cannabis Reform Executive Director Melissa Fults said the organization has collected about 23,000 so far, noting that they “had just gotten money to hire paid canvassers like two weeks before” the coronavirus pandemic shut down most of the country’s economy and led to stay-at-home orders.

In addition to the push to gather signatures electronically, the group is also planning a signature-gathering campaign though the mail.

“One thing we’re talking about is next week sending out a letter, we actually have a list of everyone that signed both of the marijuana initiatives in 2016, so what we’re going to try to do is send a letter with a self-addressed stamped envelope a legal-sized signature sheet to all of these people and ask them as soon as you get this, please sign it and return it.” – Fults to KATV

If approved, the measure would allow Arkansans over the age of 21 to purchase and possess cannabis and grow up to six matures and six immature plants in their home. It would also increase the number of dispensaries to 30 per congressional district, with at least one in each county. Dispensaries would be allowed to grow a minimum of 200 mature plants and 200 seedlings; currently, dispensaries are capped at a 50-plant limit.

After the program is paid for, 60 percent of cannabis-derived tax proceeds would be used to fund pre-K and after school programs, while the other 40 percent would be sent to the University of Arkansas for Medical Sciences for their budget.

In April, Montana activists sued the state in a push for electronic petition signature collection, but that effort was shot down by a Missoula District judge who said the group failed to show that its constitutional rights were infringed and that election integrity outweighs extant law’s burden on those rights, according to a Montana Free Press report.

Supporters of the Arkansas campaign can go to the organization’s website, download the special signature page, sign the petition, and mail it in.

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California Regulators Remove Public Cannabis Business Info

6/05/2020

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Two of three California agencies have removed online databases containing cannabis business information from public view after dispensaries were ransacked during the protests over the murder of George Floyd, MJBizDaily reports. The public databases were removed by the Bureau of Cannabis Control and the state Department of Food and Agriculture.

On May 31, the California Cannabis Industry Association sent a letter to BCC Chief Lori Ajax asking her to “immediately” remove physical addresses of cannabis licensees amid the protests.

“While we are unified as an industry, a state, and a nation in overcoming social injustices through peaceful civil unrest, CCIA has learned that dozens of cannabis businesses across the state have been subjected to vandalism, looting and even violence over the past few days. Some of the attacks appear to be well coordinated break-ins taking advantage of the civil protests and unrest that are occurring in many cities across the country.” – CCIA Executive Director Lindsay Robinson in the letter

The state Department of Public Health database is still operational but contains limited information and does not currently display licensee addresses. Typically, cannabusiness information is searchable for the public and includes names, addresses, and other information for state-approved cannabis retailers, delivery services, microbusinesses, distributors, and testing labs.

Protesters throughout the U.S. and around the world have been demonstrating in response to the May 25 police killing of George Floyd, an unarmed Black man in Minneapolis, Minnesota who was being detained by several officers. Bystanders’ video recordings of Floyd’s death show him telling police “I can’t breathe” while a white police officer kneels on his neck and head for nearly nine minutes. The officer seen in the video kneeling on Floyd’s neck and three other officers present at the scene have all been fired and charged with crimes related to the murder.

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LEAP Issues National Recommendations for Police Reform

6/05/2020

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The Law Enforcement Action Partnership (LEAP) has issued a public letter signed by more than 80 law enforcement representatives containing recommended actions for Congress, local and state authorities, and the Trump administration to enact police reforms and rebuild community trust amid the recent unrest.

LEAP, formerly known as Law Enforcement Against Prohibition, is an organization of current and former law enforcement professionals that is pushing for sensible drug policy, including cannabis legalization, and criminal justice reforms.

“Today, words are not enough,” the letter reads. “We support national action because we owe equal rights to every person, regardless of their background. We must act on our values of transparency, accountability, and safety.”

“Accountability measures that show an agency is serious about respecting the rights of all of its residents help the police as much as they help the communities we serve. There’s no better way to restore community trust. And we cannot do our jobs without trust.” — Police Major Neill Franklin (Ret.), Executive Director of LEAP, in a statement

The LEAP recommendations to Congress include steps to increase the transparency and accountability of law enforcement, including “an independent national public database recording all officers who were terminated or resigned due to misconduct.” The letter also calls for a new national standard that raises the threshold for the use of deadly force and “upholds the sanctity of human life.”

LEAP recommends that state and local authorities work toward the same goals and additionally emphasize finding alternatives to some punitive police actions: “Wherever possible, remove policing of social issues from the scope of police responsibilities,” LEAP recommends. “Promote funding of social service agencies and implement evidence-0based interventions to address substance use, mental health crisis, and homelessness.”

The letter also calls for prohibiting the use of no-knock warrants during drug searches and other police functions, “when they are not essential to protect public safety.” No-knock warrants have been consistently criticized for their tendency to result in unnecessary violence, including the March 13 fatal shooting of Breonna Taylor during a botched drug raid in Louisville, Georgia.

For the federal Executive Branch, LEAP recommends reestablishing Department of Justice pattern-or-practice investigations and returning to the Obama-era 21st Century Policing Initiative, which was launched in the wake of the 2014 unrest in Ferguson, Missouri that resulted from the police killing of Michael Brown.

Click here to read LEAP’s full letter.

The LEAP recommendations come amid widespread calls for police reforms after a week of unrest resulting from the May 25 murder of George Floyd in Minneapolis. Other organizations have similarly launched calls to action, including the #8CantWait campaign, which is a movement announced this week during a town hall with former President Barack Obama that pushes for U.S. mayors to adopt eight specific policies proven to immediately reduce incidents of police brutality and abuse of power.

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Hawaii Whistleblower: State Allows Unsafe Cannabis Vape Cartridges

6/05/2020

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A physician and a Department of Health whistleblower are accusing Hawaii officials and some licensed cannabis businesses of putting patients’ health in danger due to a lack of proper industry controls, Hawaii News Now reports.

An HNN investigation found that many of the vape cartridges being sold in Oahu dispensaries would be banned in other states for not meeting safety standards and some patients are reporting symptoms that some doctors believe are directly linked to chemicals the Health Department doesn’t require testing for.

According to the HNN analysis, four of nine vape cartridges purchased from three Oahu dispensaries had ethanol levels exceeding 5,000 parts per million – levels that would ban the products in California, Colorado, and Washington. State regulators do not require testing for ethanol in cannabis concentrates. The products were blind-tested by a state-certified laboratory.

One cartridge was also found to contain levels of lead.

Dr. Clifton Otto, one of two board-certified cannabis physicians in the state, told HNN that “at least a third” of his patients have expressed concern over the cartridges, including burning and a “strange taste.” Otto said he brought the issue to the attention of the Health Department but never received a response.

“I see patients every day when I’m doing certifications. Patients who have stopped using these cartridges. They’re not safe for patient use. They’re not safe to be used as medicine.” – Otto in an interview with HNN

Heather Krug, a scientist in charge of Colorado’s State Marijuana Laboratory and Sciences Program, told HNN that ethanol in the 5,000 to 10,000 ppm range “can cause irritation to the eyes, lungs, nose and throat,” which are symptoms described to Otto.

In Colorado, ethanol limits for vape cartridges are set at 1,000 ppm.

One company, Aloha Green, disputed the HNN findings, providing test results that showed lower ethanol content; however, those results still showed levels in excess of 3,000 ppm. The company said they are “concerned” about the lead in the cartridge but provided a certificate from the manufacturer showing it passed heavy metal testing, and said the cartridges are the “best cartridges China makes.”

Aloha said they are working with another manufacturer on a state-of-the-art cartridge that would launch next month.

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Oregon Monthly Cannabis Sales Reach $100M for First Time

6/05/2020

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May cannabis sales in Oregon reached $100 million for the first time since legalization in 2015 and it marks the third consecutive record-breaking month for the state’s industry, Willamette Week reports. According to the Oregon Liquor Control Commission, total sales were $103 million, which represents a 15 percent increase from April when sales topped $89 million. In March sales reached $83 million, which had been the highest single-month total recorded in the state.

The May totals are a 60 percent increase from the same month last year. The OLCC had already adjusted its industry-derived tax expectations by $9 million before the May totals. Oregon currently generates more than $100 million annually from cannabis taxes and fees.

According to a Marijuana Moment report, state budget officials have described the post-pandemic state budget as “the largest downward revision to the quarterly forecast that our office has ever had to make.” The $9 million bump from higher-than-anticipated cannabis taxes serves as a bright spot for the state’s fiscal outlook.

State budget analysts also suggested that cannabis sales would begin to trend downward by about 5 percent “due to the lower economic outlook” associated with the pandemic.

A week-to-week analysis by Willamette Week found a gradual rise in cannabis sales as the coronavirus spread through Oregon in March and the most significant sales increase occurring just before the governor declared dispensaries an essential business amid the state’s economic shutdown to combat the virus spread. Sales then regressed, suggesting the spike was related to uncertainty over the shutdown.

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Drug Trial Planned for Synthetic Cannabinoid COVID-19 Treatment

6/04/2020

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Philadelphia, Pennsylvania-based cannabis company FSD Pharma has been granted permission by the Food and Drug Administration to submit an Investigational New Drug Application for a clinical trial using a synthetic cannabinoid drug called ultramicronized palmitoylethanolamide (micro PEA) to treat COVID-19.

The drug is believed to act as an anti-inflammatory and is currently sold in Italy and Spain as a prescription-based nutraceutical under the brand names Normast and Pelvilen. FSD acquired the rights to micro PEA from Epitech Group, an Italian pharmaceutical firm that holds the patents for the drug until 2034, the company said.

In a press release, FSD explained that between 1969 and 1979, PEA was marketed as Impulsin by a pharmaceutical manufacturer in the former Czechoslovakia to treat influenza and the common cold. During this period, clinical trials were conducted for those uses that involved nearly 4,000 patients and volunteers across six randomized, double-blind, placebo-controlled trials. The clinical trials demonstrate that PEA has clear treatment and prophylactic effects in respiratory infections, and is safe in its use, the company said.

FSD Executive Co-Chairman and CEO Raza Bokhari called the FDA approval of concept “a paradigm shift” for the company and that it contacted the FDA in late March after finding out that some Italian physicians and scientists were advocating for the drug’s use in treating COVID-19.

“Numerous studies over the past 40 years also validate the efficacy and safety of ultramicronized PEA in the treatment and prophylactic effects in respiratory infections. These studies also pointed out that the ease of application of PEA offers the possibility to have a quick therapeutic answer ready in case of a flu epidemic.” – Bokhari in a statement

FSD spent $17.5 million to purchase the rights to the drug earlier this year and rebranded it as FSD-201, according to a Philadelphia Inquirer report.

“Severe COVID-19 is characterized by an over-exuberant inflammatory response that may lead to a cytokine storm,” Bokhari said in an interview with the Inquirer. “[FSD-201] is not a virus killer. But we believe it can mitigate that immune response, which can be fatal.”

The firm is currently conducting a Phase 1 clinical trial for the drug in Australia. The FDA approval only allows the company to submit an application for U.S. trials, rather than approval to conduct them. Bokhari indicated they would seek trial approval from the FDA after the results of the Australian study.

Last month, a study published in Preprints suggested that cannabis extractions containing THC and CBD could help prevent the coronavirus from spreading to and infecting humans by lowering the production of two proteins commonly hacked by the novel coronavirus to create a new infection.

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Illinois Allows Hemp Sales to Medical and Adult-Use Processors

6/04/2020

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Illinois has expanded its hemp market by allowing hemp producers to sell directly to adult-use and medical cannabis processors in the state. The Illinois Department of Agriculture’s Bureau of Medicinal Plants made the announcement in late March.

Under the plan, hemp can be purchased from licensed Illinois hemp farmers or any other licensed hemp farmer from around the country. The Bureau uses the traditional definition of hemp, a cannabis plant with a THC concentration of less than 0.3%. Hemp procured under the program can only be used in “extracted form” and infused cannabis products — hemp flower cannot be sold.

“We harvested over 70% of the hemp that was planted in Illinois in 2019. That increased our supply of hemp dramatically. By supply, I mean hemp that’s just sitting in barns or in storage, or that may have been processed and is now some kind of a crude oil, distillate or isolate. While we had a lot of processors licensed, I don’t think they expected the influx of hemp that we had.” — Jeff Cox, head of the Bureau for Medicinal Plants, via HempGrower.com

Cannabis cultivation centers must apply for a hemp processor license and all products made from hemp extracts must be tested for THC, THCa, CBD, and CBDa.

The new policy will benefit hemp growers and the legal medical and adult-use markets by expanding hemp sales and simultaneously freeing up cultivation space for high-demand, THC-rich cannabis plants, Cox told Hemp Grower, as farmers won’t need to dedicate as much of their canopy to growing CBD-rich strains.

“The biggest demand is for high-THC flower,” he said.

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California Lowers Cannabis Tax Estimates Due to Coronavirus

6/04/2020

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California Gov. Gavin Newsom (D) is downgrading the state’s cannabis excise tax projections for this year and next year due to the coronavirus pandemic and the looming recession related to the response, which shuttered businesses and has led to near-record unemployment, the Los Angeles Times reports.

Newsom in January estimated that the state would see $479 million in cannabis excise taxes during this fiscal year, but he reduced those expectations to $443 million. For the fiscal year that begins July 1, Newsom has projected $590 million in cannabis excise taxes, but revised that estimate to $435 million.

The budget proposal with the recalculated figures said that while other vice products, such as tobacco and alcohol, “tend to be recession-resistant, the forecast assumes that cannabis businesses will be more negatively impacted by the COVID-19 pandemic.”

“Cannabis businesses have less access to banking services that could provide liquidity, have a younger consumer base likely to be disproportionately affected by the COVID-19 recession, and still must contend with competition from the black market.” – California Executive Budget via the Times

The impact of the virus and the measures put in place to combat its spread had mixed impacts on the cannabis industry which haven’t yet been fully realized. Some states reported a slowdown, while others reported a sales surge; however, cannabis businesses are unable to access federal coronavirus aid due to the federal illegality of cannabis.

California considered cannabis businesses “essential” businesses as part of their response to the virus and the Newsom administration has relaxed some industry regulations, including deferring license renewal fees and extending filing deadlines for first quarter tax returns.

Jerred Kiloh, president of the United Cannabis Business Association called the situation for cannabis companies in California “dire at this point” and said that the illicit market would “have another leg up this year” because people will be looking for the cheapest option.

The governor estimates the state’s unemployment rate would reach 18 percent this year. According to the Economic Roundtable, 60 percent of workers ages 16 to 24 face a high risk of unemployment compared with 42 percent of workers 45 to 54.

Kiloh added that the state has seen a 30 percent drop in tourism, which also negatively impacts cannabis sales.

Josh Drayton, a spokesman for the California Cannabis Industry Association said sales have “leveled out” in the state after an initial sales spike attributed to panic buying.

Last week, the state reported $134.9 million in combined cannabis-derived tax revenues for the first quarter of the year.

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Iowa Senate Passes Medical Cannabis Reforms

6/04/2020

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The Iowa Senate has passed a modest expansion of the state’s medical cannabis program which has already passed the House and has the approval of Republican Gov. Kim Reynolds, the Cherokee Tribune & Ledger News reports. The measure would replace the state’s current 3 percent THC limit with a per-patient limit of 4.5 grams of THC-rich cannabis over 90 days and allows that cap to increase with a physician recommendation or if the patient is terminally ill.

The bill also adds intractable autism and post-traumatic stress disorder to the list of qualifying conditions.

Sen. Joe Bolkcom (D) said during the debate that the measure doesn’t actually improve the program and will ultimately make it weaker than the current regime. Bolkcom also opposed a provision in the law allowing businesses to deny unemployment insurance to former employees who test positive for cannabis. The senator said that rule would have a disparate impact on low-income and minority communities.

“Here we are, five years after passing our original law … and tonight you’re going to make it even worse. Wow. No small task, colleagues.” – Bolkcom, during the debate, via the Tribune & Ledger News

Last year, the Iowa Legislature passed a bill to remove the THC cap and allow patients to access 25 grams of THC over 90 days, along with a host of other program changes, but that measure was vetoed by Reynolds on the grounds that the reforms were opposed by the state medical cannabis board.

Iowa‘s program prohibits smoking, allowing only capsules, extracts, concentrates, lotions, ointments, and tinctures. The measure passed the Senate 32-17 and moves next to Reynolds, who is expected to sign the bill.

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DEA Now Permitted to Investigate Protesters

6/03/2020

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The Drug Enforcement Administration (DEA) has been given temporary power to investigate people participating in the nationwide protests over the police killing of George Floyd, according to an agency memo acquired by BuzzFeed News.

The development allows DEA — which is normally restricted to the investigation and enforcement of only federal drug crimes — “to enforce any federal crime committed as a result of the protests over the death of George Floyd.”

The agency submitted its request for the increased enforcement power last week and on Sunday a high-ranking Justice Department official signed off on the plan.

“In order for DEA to assist to the maximum extent possible in the federal law enforcement response to protests which devolve into violations of federal law, DEA requests that it be designated to enforce any federal crime committed as a result of protests over the death of George Floyd. DEA requests this authority on a nationwide basis for a period of fourteen days.” — Excerpt from DEA memo procured by BuzzFeed News

Attorney General William Barr said over the weekend that federal agencies including the FBI, DEA, U.S. Marshals, and the Bureau of Alcohol, Tobacco, Firearms and Explosives would be “deployed” to support local law enforcement.

“Drug enforcement agents should not be conducting covert surveillance of protests and First Amendment protected speech,” Hugh Handeyside, a senior attorney for the ACLU, told BuzzFeed News.

“That kind of monitoring and information sharing may well constitute unwarranted investigation of people exercising their constitutional rights to seek justice,” Handeyside said. “The executive branch continues to run headlong in the wrong direction.”

The May 25 murder of George Floyd, an unarmed Black man, by a white Minneapolis police officer — on camera and in broad daylight — has sparked outrage and international protests against U.S. police brutality in Floyd’s name. During the chaotic weekend, dozens of cannabis dispensaries were burglarized; many affected business owners, however, said they supported the protests and suspected they had been targeted by opportunistic criminals, not protestors or looters.

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Columbia Care Sued Over Alleged License Interference

6/03/2020

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Florida MCBD, a cannabis company focused on low-THC products, is suing New York-based Columbia Care claiming tortious interference with contract, unjust enrichment, civil conspiracy, aiding and abetting fraud, and aiding and abetting breach of fiduciary duty over Columbia’s cannabis license in Florida, the New York Law Journal reports.

According to lawyers for Florida MCBD, the company has sought a medical cannabis license in Florida since 2015 and entered into a joint venture agreement with Sun Bulb, a Florida-based nursery, to help it meet the state’s medical cannabis dispensary license requirements. While Sun Bulb lacked experience with cannabis, Florida MCBD filed confidential information related to its expertise as part of the license application, according to court documents outlined by the Law Journal. The state Health Department initially denied the application from the joint venture but over the next two years the partners lobbied the state legislature to allow additional licenses, the report says.

In the court filing, Sarmad Khojasteh, a partner at law firm Kasowitz Benson Torres, said during that two-year period, Columbia “feverishly sought to obtain a license” but the company’s first two applications were rejected.

The lawsuit claims that in the summer of 2017 Columbia Care executives allegedly entered into secret negotiations with Sun Bulb, conspired to defraud Florida MCBD and the Department of Health, and that the companies agreed to pay Sun Bulb for Florida MCBD’s ownership claims to the dispensary license.

Sun Bulb described its new relationship with Columbia Care in updates to the Health Department, but Florida MCBD’s lawsuit claims that Sun Bulb presented those updates as supplemental information, not as fundamental changes to the license application, which the plaintiffs’ attorneys claim were “prepared, paid for, and filed by” Florida MCBD. By the end of 2017 the Sun Bulb and Columbia Care partnership received a state cannabis license, the report says.

In the complaint, Khojasteh also accused Columbia Care of “a pattern of racketeering and tortious activity” in other states, including Arizona and Massachusetts.

The case is filed in New York County’s Supreme Court Commercial Division. Arbitration between the companies is ongoing.

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Harborside Appeals Cannabis Tax Ruling in Federal Court

6/03/2020

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California cannabis company Harborside is continuing its legal challenge to federal tax code 280E but is taking a different approach to the case along with a new legal team, MJBizDaily reports. The company argues that 280E is unconstitutional, running afoul of the 16th Amendment, which allows for income taxes, but attorney James Mann of Greenspoon Marder says 280E, “results in a tax that’s not on income, it’s not an income tax, so therefore it’s unconstitutional.”

The arguments come in a May 26 appeal filed by Mann on behalf of Harborside. In short, 280E prevents standard business deductions by companies that deal federally illegal drugs, including cannabis even when state-approved. In 2018, the U.S. Tax Court ruled against Harborside calling the firm “a giant drug trafficker, unentitled to the usual deductions that legitimate businesses can claim” because cannabis remains federally illegal.

Mann told MJBizDaily that decision “is just wrong” and calls the determination by the Tax Court and the Internal Revenue Service that state-legal cannabis businesses aren’t afforded the same cost of goods sold deductions “crazy.”

Former IRS officer William Fowler, now a senior adviser with Nevium Intellectual Property Consultants, told MJBizDaily that Harborside is “dreaming” and “grasping at straws” and that the lawsuit risks further entrenching the IRS’s position on 280E.

“They’re really pushing the industry to have some really tight rulings on this. The IRS is preparing more guidance on this, so (Harborside) should have waited until they got that guidance. To me, those arguments are weak, and it’s not good for everybody else.” – Fowler to MJBizDaily

Mann argues that the legal issues in the case are ripe for appeal and that the 2018 opinion was “ill-considered.”

The case is in the U.S. Court of Appeals for the 9th Circuit in San Francisco and a decision on the matter could take years. The original lawsuit by Harborside was filed in 2016 and a decision wasn’t issued until 2018.

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Maine Cannabis Coalition Files Suit Over Removed Industry Residency Requirements

6/03/2020

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The Maine Cannabis Coalition has filed a lawsuit against the state for its decision to remove residency requirements for cannabis business licenses, the Portland Press Herald reports. The trade association says the decision by the state Department of Administrative and Financial Services violates Maine’s Marijuana Legalization Act.

The decision by the agency was in response to another lawsuit by Wellness Connection of Maine over the residency requirement. The Wellness Connection and Wellness and Pain Management Connection of Delaware, which are financially tied to international cannabis firm Acreage Holdings, filed the lawsuit against the state in April arguing that the residency requirement violated the commerce clause of the U.S. Constitution which forbids restrictive and discriminatory commercial regulations between the states.

The Office of Marijuana Policy, which is housed in the Administrative and Financial Services division, said it wouldn’t enforce the policy after the state Attorney General’s Office said the state was unlikely to beat the lawsuit in court because the state Supreme Court had struck down residency requirements in the past.

“Maine Cannabis Coalition and its members along with many other citizens fought hard for two years to make sure residency protections were included in the law. To have it all be ignored after all the hard work and efforts is extremely aggravating to the citizens and policy makers of Maine who expect no one to be above the law.” – MCC in a statement via the Press Herald

In the lawsuit, Maine Cannabis Coalition claims the decision to revoke the requirement hurts medical cannabis providers such as MCC co-founder Dawson Julia, a caregiver, and Christian Roney, who is seeking a recreational cannabis license, by increasing the number of entities competing for limited market share. Both Julia and Roney claim they relied on the competitive advantages provided by the residency requirement while developing their business plans.

As passed, the Maine law requires every officer, director, and manager of recreational cannabusinesses, and most of its ownership, to have lived and filed taxes in Maine for at least four years. That rule would have expired in June 2021.

The plaintiffs argue that the OMP doesn’t have the authority to abandon parts of the law that have not been struck down by a court or repealed by the Legislature and seeks an injunction preventing officials from awarding any licenses to out-of-state applicants, the report says.

The long-awaited rollout of the state’s adult-use cannabis industry was put on hold amid the state’s coronavirus response. OMP Director Erik Gunderson told the Press Herald that the decision to strike down the residency requirements would not further delay sales.

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Cannabis Firms With Highest-Paid Executives See Underperforming Stocks

6/02/2020

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Cannabis companies with the highest-paid executives saw their stock underperform over the last year, according to a survey by Bedford Consulting Group outlined by Bloomberg.

The report analyzed the compensation of 437 executives and 449 board members at 96 cannabis companies and found that Canadian companies Tilray Inc. Acreage Holdings Inc., and Sunniva Inc. had the highest-paid executives in the industry.

Tilray CEO Brandon Kennedy was the highest-paid executive, according to the report, with total compensation of $27.96 million, 97 percent of which was stock shares and options. Acreage’s Brian Mulroney – who served as Prime Minister of Canada from 1984 to 1993 – was the highest-paid director, earning an all equity-based $10.23 million, the report says.

Sunniva employed the highest-paid non-executive board chair or lead director, as Todd Patrick – who left the firm last January – received $1.32 million, 95 percent in options.

Over the last 12 months, each of those companies underperformed the BI Global Cannabis Competitive Peers index, and Sunniva has fallen 97 percent.

Among cannabis companies, 35 percent experienced CEO turnover last year and another 32 percent had CFO turnover.

According to the survey, just 11 percent of cannabis industry board members were women and only 8 percent of the 437 senior executives were female.

The majority of cannabis companies analyzed – 58 percent – lacked an independent board leader.

The data was collected in October when the average cannabis share price was about a third higher than it is today.

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Report: Leafs By Snoop Most Recognizable Cannabis Brand

6/02/2020

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Leafs By Snoop is the most recognizable cannabis brand, followed by Cheeba Chews and Marley Natural, but none of the brands were recognized by more than 23 percent of consumers, according to a Green Horizons analysis.

Overall, 23 percent of cannabis consumers had heard of Leafs By Snoop – the brand backed by rapper Snoop Dogg (real name Calvin Brodus) – while 22 percent had heard of Cheeba Chews, and 21 percent had heard of Marley Naturals, which bears the namesake of the late reggae legend Bob Marley. The brand is owned by Privateer Holdings and members of the Marley family.

Green Horizons opined that the low recognition numbers highlight the “immense growth opportunity for brands to break out in an increasingly crowded marketplace.”

Among cannabis consumers who purchase from dispensaries, 67 percent said their “main reason” for choosing a dispensary was high-quality products, followed by a convenient location near their house or work (62 percent), consistent selection (61 percent), carry brands they prefer (58 percent), knowledgeable budtenders (55 percent), and the “vibe of the dispensary” (55 percent). Only half said they chose a dispensary for the lowest prices.

Nearly half (47 percent) of respondents said word of mouth was the best way to find a dispensary, followed by Google Maps and Google reviews (34 percent), the advice of a healthcare professional (32 percent), seeing them while driving or walking around (32 percent), Weedmaps (31 percent), and Leafly (21 percent).

Most cannabis consumers (52 percent) with access to dispensaries chose independent dispensaries, while 42 percent made purchases at franchised or chain stores. Still, 51 percent of recreational consumers said they purchase from an individual outside the legal market, compared to 34 percent of medical-only consumers.

Overall, 57 percent of all cannabis users report purchasing cannabis from a physical dispensary, with 39 percent from a chain or franchised dispensary and 34 percent from a local, independent dispensary.

Green Horizons found that 28 percent of those surveyed spent less than $49 per month on cannabis, while about the same figure (27 percent) spent between $50 and $99. Another 16 percent spent between $100 and $149, just 8 percent spent between $150 and $199, and 17 percent spent $200 or more.

According to the survey, smoking is still the method most regularly used to consume cannabis (62 percent of respondents). Nearly a third, though, regularly vape either flower or concentrates, while 28 percent use edibles, 22 percent use topicals – and the same figure use drinks – with 18 percent using tinctures.

Of those surveyed, 40 percent identified as both medical and recreational users, with 35 percent saying they are only recreational users and 24 percent use for medical purposes.

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Washington Regulators Ban Vitamin E Acetate

6/02/2020

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The Washington State Liquor and Cannabis Board (LCB) adopted emergency rules banning the use of vitamin E acetate in cannabis vapor products and requiring more in-depth reporting from licensed cannabis processors.

“[Processors must] submit under oath a complete list of all constituent substances and the amount and sources thereof in each marijuana vapor product, including all additives, thickening agents, preservatives, compounds, and any other substance used in the production and processing of each marijuana vapor product.” — LCB memorandum excerpt

Vitamin E acetate

Following investigations last year by the Centers for Disease Control and Prevention (CDC), the Food and Drug Administration (FDA), and other government agencies, vitamin E acetate was determined to be the source of lung injury related to “e-cigarettes” and “vaping” that resulted in 68 deaths in 29 states and Washington D.C., including two deaths in Washington state, according to a State Board of Health report.

Unable to pass an outright ban on vitamin E acetate, as was recommended by the State Board of Health and Governor Jay Insley, the Washington State legislature instead passed HB 2826, which gave the LCB authority to ban any substance the Department of Health — “or any other authority the Board deems appropriate” — that “may pose a risk to public health.”

Vitamin E acetate is the first “additive” banned by the LCB under its new regulatory authority.

Pesticides and heavy metal testing

The Board also took action concerning cannabis testing, having resumed the rulemaking process for improving the state’s “Marijuana Quality Assurance testing and Product Requirements.” To be phased in by September 2021, the new regulations will require all cannabis produced in the state to be tested for pesticides and heavy metals.

“This is an impressive body of rule-making,” said Jim MacRae, a Washington state cannabis activist.

“I applaud the Board working to protect cannabis consumers in the state, but they’ve known about the pesticide problem for years and even now with Leaf Data systems not working, test results are ‘faith-based,’ meaning they don’t have a way to reliably attach test results to actual cannabis batches,” said MacRae. “I’m also wondering why it will take a year to implement the new testing rules when they acted on vitamin E acetate so quickly.”

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Health Canada Reinstates CannTrust License for One Facility

6/02/2020

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Embattled Canadian cannabis company CannTrust has had the licenses for its Fenwick Perpetual Harvest Facility reinstated more than three months after it submitted the paperwork to Health Canada.

The company’s federal licenses were suspended last September after Health Canada found the company had grown and sold cannabis in and from unlicensed rooms, built two rooms at one of its facilities without approval, and didn’t maintain documents in a way that allowed it to complete an audit in a timely manner.

The violations at the company’s facilities forced it to put 12,000 kilograms of cannabis “on hold” in July 2019 after Health Canada discovered the unlicensed rooms at the company’s Pelham, Ontario facility. Two days later, Danish company StenoCare quarantined oil derived from the facility.

The following month, the company’s auditor, KPMG, withdrew its financial audits of the company saying they were completed with unreliable information from representatives – namely former Chief Executive Peter Aceto and former President Eric Paul, who were fired after emails emerged showing they knew about the illegal grows.

In a statement, CannTrust said they would “immediately recommence operations” at the Fenwick facility but “cannot provide an exact timeframe for when its products will be available in the market,” which depends on Health Canada’s reinstatement of the Vaughan facility, which was at the center of the company’s non-compliance scandal. CannTrust filed the reinstatement of the Vaughan facility in late April.

The company said it “remains without meaningful revenues and has terminated or laid-off a significant portion of its workforce” since the Health Canada action.

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California Dispensaries Ransacked Amid Protests

6/01/2020

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Many California cannabis dispensaries were robbed amid the weekend’s chaotic and widespread protests against police brutality.

In Los Angeles, people were filmed ransacking Cookies, a cannabis dispensary owned by rapper-turned-entrepreneur Berner. In a video response posted to his Instagram, however, Berner said he supported and stood with the protests despite the collateral damage his business suffered.

“It’s extremely unfortunate what happened to our store tonight on Melrose. But as a human living in the world we’re living in today, I cannot expect anything less until justice is served. See, we can rebuild our store, but you cannot bring someone back to life.” — Berner, in a video statement posted on Instagram

 

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I don’t expect everyone to understand what’s going on in the world 🌎 right now …. but I do ….

A post shared by Berner (@berner415) on

Twitter users filmed multiple MedMen dispensary locations being ransacked throughout Los Angeles, as well.

Dispensaries in the Bay Area experienced a similar fate, KCBS Radio reports. ECO Cannabis in Oakland confirmed its Telegraph Ave location was broken into and burglarized over the weekend, with about 10 looters making off with thousands of dollars worth of cannabis and other merchandise.

Magnolia Wellness, another Oakland-based dispensary, was robbed multiple times over the weekend and reported significant losses. Magnolia’s owner Debby Goldsberry wrote in a Facebook post that the business supported the ongoing protests and that the robbers were “armed criminals,” not protestors or looters.

“There has been an organized crime ring targeting dispensaries for years, and with everything going on, as opportunists, they took advantage of the chaos. We fully stand behind and along side our fellow protesters and want to make the clear distinction between what happened here and at the other dispensaries, and the important movement and protests happening around the country.” — Statement posted by a separate Magnolia Wellness representative

Berkleyside reports that looters on Sunday night patrolled Berkeley in “vehicle caravans” that took advantage of the protests, performing smash-and-grabs at multiple commercial locations. Cannabis Buyers Club Berkeley and Farmacy Berkeley, two cannabis dispensaries, were among Berkeley’s looted businesses.

Protestors have been demonstrating around the U.S. in response to the May 25 police killing of George Floyd, an unarmed Black man in Minneapolis who was being detained by several officers. Bystanders’ video recordings of Floyd’s death show him telling police “I can’t breathe” while a white police officer — who has since been charged with manslaughter and 3rd-degree murder — kneels on his neck and head for nearly nine minutes. There has also been outrage over the recent death of Breonna Taylor, a Black woman who was shot and killed by police in her Louisville, Georgia home during a botched drug raid, and numerous others who have been killed or died in police custody in recent years.

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Hemp Ineligible for USDA Coronavirus Aid Because Prices Haven’t Fallen 5%

6/01/2020

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The president of Vote Hemp said hemp businesses would not be able to argue their case for eligibility under the U.S. Department of Agriculture Coronavirus Food Assistance Program – designed for relief for agriculture businesses affected by the pandemic and state responses to the crisis – because the agency says the sector has not suffered a 5 percent decline from January to April, as required by the program, according to a Hemp Grower report.

Hemp businesses are eligible for aid under the Coronavirus Aid, Relief, and Economic Stability (CARES) Act – a stimulus package aimed at providing relief for individuals and businesses after most states shut down their economies in some form amid the pandemic. However, the agriculture-focused USDA program only provides relief for industries who “believe they’ve suffered a 5 percent or greater price decline between January and April 2020 and … face additional marketing costs due to COVID-19,” the USDA website says.

Vote Hemp President Eric Seenstra said it “doesn’t seem right that they should leave hemp out” of the program, adding that he is “disappointed to see how hemp is being treated by the USDA in this case.”

The program will provide up to $16 billion in direct, one-time payments to farmers and ranchers impacted by the coronavirus based on the commodities they produce. Funding for the payments comes from the CARES Act and the Commodity Credit Corporation Charter Act.

The report notes that tobacco companies may also not be eligible for aid under the USDA rules. Other commodities not automatically eligible include sheep more than two years old, eggs/layers, soft and hard red winter wheat, white wheat, rice, flax, rye, peanuts, feed barley, Extra Long Staple (ELS) cotton, alfalfa, and forage crops.

Hemp producers may submit comments on regulations.gov and the agency will consider those comments by June 22. The USDA is accepting program applications through the Farm Service Agency until August 28.

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Study Finds Arthritic Dogs Benefit from CBD Treatment

6/01/2020

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A recent study by researchers at Baylor College of Medicine in collaboration with Medterra CBD found nine out of 10 dogs with osteoarthritis benefitted from CBD treatment. The study, published in the journal Pain, found the cannabinoid treatment reduced production in both inflammatory molecules and immune cells linked to arthritis, suggesting the study could support future scientific evaluation of CBD for human arthritis.

The researchers also determined that the effect of the CBD was quicker and more effective when it was delivered encapsulated in liposomes than when it was administered “naked.” Liposomes are artificially formed tiny spherical sacs used to deliver drugs and other substances into tissues at higher rates of absorption.

Dr. Matthew Halpert, research faculty in the Department of Pathology and Immunology at Baylor, indicated that the “encouraging results” of the CBD remained for two weeks after the treatment stopped and that it seemed to be safe since they detected no alterations in the measured blood markers.

“We studied dogs because experimental evidence shows that spontaneous models of arthritis, particularly in domesticated canine models, are more appropriate for assessing human arthritis pain treatments than other animal models. The biological characteristics of arthritis in dogs closely resemble those of the human condition.” – Halpert in a statement

After four weeks of daily treatment, owners and veterinarians reported on the condition of the dogs – whether they observed changes in pain levels and changes related to running or gait. The placebo-controlled, double-blind, study enrolled 20 dogs total, 10 of which received a placebo.

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Cannabis Cite-and-Release Law Takes Effect In San Marcos, Texas

6/01/2020

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San Marcos, Texas’ cite-and-release policy is now in effect, which forces police to issue citations for low-level cannabis crimes instead of arrests in the city, according to a KVUE report. San Marcos is the first city in Texas to approve cite-and-release as a binding law and not just a resolution.

Under the new policy, those found in possession of less than four ounces of cannabis will not be arrested “unless a disqualifying circumstance outlined in the policy applies.” Justifiable arrests under the policy include if the person does not live in Hays County, is at risk of causing harm to themselves or others, is unwilling to provide proper identification, demands to be taken before a magistrate, has an outstanding warrant, or is suspected of committing a crime not included in the ordinance.

Hays County-based grassroots organization Mano Amiga, which pushed for the reforms for more than a year, said that in 2013, low-level cannabis possession had accounted for the most arrests in the city.

Interim Police Chief Bob Klett told the Austin American-Statesman that the department has been “complying with the ordinance since the day after the council’s second reading” and that he does not “foresee any issues” with the law and law enforcement in the city.

Other crimes covered under the cite-and-release include Class C misdemeanors other than family violence, assault, or public intoxication; driving with an invalid license; criminal mischief; graffiti; theft of property; and theft of services.

Last month, the city of El Paso approved a similar policy for up to 2 ounces and cannabis-related Class A and Class B misdemeanors. Cannabis remains illegal under Texas state law.

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Study Identifies Likely Cannabis Use at Ancient Israel Site

5/29/2020

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Material found on two altars at the entrance of an ancient Judahite shrine at Beersheba Valley, in Israel’s Tel Arad found in 1963 – described as the “Holy of the Holies” – contained cannabis and frankincense, according to a study published in the Journal of the Institute of Archaeology of Tel Aviv University.

The study authors said it was the first time physical evidence of cannabis has been found in the Ancient Near East.

The researchers concluded that the substance on the smaller altar contained “residues of cannabinoids,” including THC, CBD, and CBN “along with an assortment of terpenes and terpenoids, suggesting that cannabis inflorescences had been burnt on it.” The altar also contained residues attributed to animal dung “suggesting that the cannabis resin had been mixed with dung to enable mild heating,” the study says.

Lead author Eran Arie, curator of Iron Age and Persian Periods archaeology in the Israel Museum, Jerusalem, told CNN that “around the world … many cultures used hallucinogenic materials and ingredients in order to get into some kind of religious ecstasy” but finding cannabis “in an official cult place of Judah says something new about the cult of Judah,” namely “the use of mind-altering substances” as part of the cult rituals.

“As the terpenoids detected are not unique to cannabis and may be found abundantly in many other local plants, it is likely that the cannabis burnt on the altar was not imported for its smell or therapeutic virtues but for its mind-altering abilities, expressed only by heating.” – “Cannabis and Frankincense at the Judahite Shrine of Arad,” May, 28 2020

The site was excavated between 1962−1967 on behalf of the Institute of Archaeology of the Hebrew University of Jerusalem.

In 2019, archaeologists in China discovered evidence of human cannabis use and cultivation dating back to 500 B.C. Those researchers concluded that cannabis appears to have been used during burial rituals. That study suggests “that the ritualistic ‘smoking’ of cannabis was gradually popularized from the elite class to the common people in the eastern Pamirs in China at least 2,500 years ago,” since those buried at the plot do not appear to be of the upper class.

The Israeli researchers note that evidence of cannabis consumption for both medical use and mind-altering experiences is well-documented by anthropologists.

Members of India’s Gaddi tribe of the western Himalayas, for example, smoked cannabis for the hallucinations it induced. In the Buganda kingdom of Africa and the Kanabad village in Pakistan, tribe members smoked cannabis to induce a state of euphoria. The Tenetehara of Brazil also smoked the flowers and the leaves for their psychoactive effects.

In Africa, the Sotho smoked the leaves and other parts of the plant for its pain-relieving qualities. In Morocco, midwives used cannabis smoke to induce abortion in pregnant women wishing to terminate their pregnancy.

In 1993, archeologists in Jerusalem uncovered a cave dating to the 4th century CE and found the remains of a 14-year-old girl who died during childbirth. She was discovered with the skeleton of a 40-week fetus trapped in her pelvis and a juglet with black material in it was retrieved near the skeletons. The analysis of the material revealed the presence of THC and CBD. Researchers concluded that the purpose of feeding the cannabis to the girl (by inhalation) was to increase the force of uterine contractions and to reduce birth pain.

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Red Lake Nation In Minnesota Approves Medical Cannabis Reforms

5/29/2020

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Minnesota’s Red Lake Nation on Wednesday overwhelmingly approved a medical cannabis program that goes beyond the state’s program parameters and allowing flower, Red Lake Nation News reports. The measure passed 1,765 to 425, or 80 percent approval.

Cannabis advocate Kevin Jones, who also organized the Chippewa Cannabis Party, said the tribe would also have about 20 more qualifying conditions than the state program and that the tribal program will allow program access for opioid addiction.

“I hope it helps the opioid crisis, we got hit hard with that. I hope that changes a lot of it and helps families bring parents, aunties and uncles back to where they were before. It won’t bring the ones we lost back but will make a new path for the ones on that journey today.” – Jones to the Red Lake Nation News

Jones noted in an interview with the Duluth Reader that when Minnesota launched its medical cannabis program, they didn’t include tribes in the reforms. Jones said the vote sets the stage for the tribe to go “full recreational” despite Minnesota laws and that the tribe would exercise its sovereignty on the issue.

“If Minnesota can make a program without including native tribes, we can make things here in Red Lake and start practicing our sovereignty. … We’re going to tell them what we’re going to do,” Jones said to the Reader. “This is what we’re going to do, because they left us out so much. I’m tired of them taking a lot of what we had. Now they’re trying to take our sovereignty away. I won’t allow them to do that. I will fight for our sovereignty. I know the council will back us if we run this industry right.”

Jones is next planning to sell hemp and CBD products under the Red Lake Chippewa Hemp label. Jones is also running for a four-year term as Redby representative under the Cannabis Party banner and said that if he and other party members are elected to the council they will push for full recreational legalization within 30 days.

Minnesota’s medical cannabis program only allows oils, pills, liquids, or vaporized forms.

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