Class Action Lawsuit Contends Canopy Growth Made ‘False and Misleading’ Statements About Profit Margins

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A class action lawsuit was filed Tuesday against Canopy Growth Corporation alleging the company “made materially false and misleading statements regarding Canopy’s business, operations, and prospects” related to its Claybourne pre-rolls and Storz & Bickel vaporizer brand. 

In a press release, Pomerantz LLP, which filed the lawsuit, contends Canopy’s financial statements around the Claybourne product launch, and that the company failed to disclose it had “incurred significant costs producing Claybourne pre-rolled joints in connection with the Claybourne product launch in Canada” and that indirect costs associated with the Storz & Bickel devices “were likely to have a significant negative impact on the Company’s gross margins and overall financial results.”  

“…Accordingly, Defendants had overstated the efficacy of Canopy’s cost reduction measures and the health of its gross margins while downplaying issues with the same; and as a result, Defendants’ public statements were materially false and misleading at all relevant times.” — Pomerantz LLP, in a press release  

The law firm points to a February 7 press release from Canopy announcing its financial results for the third quarter of its fiscal year 2025 wherein it reported that its “gross margin decreased by 400 basis points to 32%” in the quarter compared to the same quarter the year prior “primarily due to the incremental costs related to the Claybourne infused pre-roll launch in Canada, and an increase in indirect costs of Storz & Bickel vaporizer devices.” The lawsuit argues “these factors contributed to Canopy reporting a wider-than-anticipated Q3 2025 loss of C$1.11 per share compared to the C$0.48 per share loss estimated by analysts.” 

That same day, during a conference call with investors, Canopy Chief Financial Officer Judy Hong, who is named as a defendant in the lawsuit, indicated that the Claybourne product launch costs were “primarily attributable to [the] higher initial cost to produce Claybourne” products and  that the “indirect costs” related to Storz & Bickel devices were attributable to shipping costs, the law firm said in the press release. The news caused Canopy’s common share price to fall 27.34% – or $0.76 per share to close at $2.02 per share on February 7. 

During the quarter, Canopy allegedly touted the positive impact that the products were having on its margins, despite the gross profit margin decreases.    

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Maryland to Automatically Shield Criminal Records Associated with Low-Level Cannabis Convictions

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Maryland Gov. Wes Moore (D) on Monday signed into law a bill requiring state officials to automatically shield criminal records associated with low-level cannabis convictions from public view. Under the law, the Maryland Judiciary Case Search database may no longer “in any way refer to the existence of records of a charge of possession of cannabis in a case with electronic records if the charge resulted in a conviction that was later pardoned by the Governor.”  

Last year, Moore, pardoned 175,000 cannabis convictions, affecting about 100,000 individuals. Pardons forgive past crimes but neither expunge them nor shield them from public view.  

In a statement following the bill’s passage, NORML’s Deputy Director Paul Armentano noted that “Hundreds of thousands of Americans unduly carry the burden and stigma of a past conviction for behavior that most Americans, and a growing number of states, no longer consider to be a crime.”   

“Our sense of justice and our principles of fairness demand that elected officials and the courts move swiftly to right the past wrongs of cannabis prohibition and criminalization,” — Armentano in a statement 

According to publicly available data compiled by NORML, states and localities have issued over 350,000 cannabis-related pardons and more than 2 million cannabis-related expungements since 2018. 

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Saphira Galoob & Ed Conklin: Merging Power to Move Cannabis Policy

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When it comes to moving federal cannabis policy forward, progress requires coordination, persistence, and strategic advocacy. In this episode of The Ganjapreneur Podcast, Edward Conklin, Executive Director of the U.S. Cannabis Council, and Saphira Galoob, Executive Director of the National Cannabis Roundtable — join host TG Branfalt to discuss the historic merger of their organizations into the U.S. Cannabis Roundtable.

This conversation dives into what commercial entities are doing to lobby Congress for meaningful reform, including the uphill battle to pass safe banking legislation, the real implications of cannabis rescheduling to Schedule III, and the importance of building trust with lawmakers. Galoob and Conklin also share insider perspectives on why some legislation stalls, how policy change actually happens in D.C., and what entrepreneurs can do to get involved at the local and national levels.

Listen below or wherever you get your podcasts, or scroll down for the full transcript!


Listen to the episode:


Read the full transcript:

Editor’s note: this transcript was generated automatically and may contain errors.

TG Branfalt:

Hey there, I’m your host, TG Branfalt, and this is the Ganjapreneur.com podcast where we try to bring you actionable information and normalized cannabis through the stories of ganjapreneurs, activists and industry stakeholders. Today I’m joined by Edward Conklin. He’s the executive director of the US Cannabis Council and Saphira Galoob, executive Director of the National Cannabis Roundtable. The USC and NCR announced plans to combine their organizations to create the US Cannabis Roundtable. How are we doing this afternoon, folks? We’re great.

Ed Conklin:

Excellent. Thanks for having us.

Saphira Galoob:

Thanks for having us on. Tim.

TG Branfalt:

Really excited to talk shop and in this case, public policy. As most of my listeners know, I’m a bit of a public policy nerd, and so these are some of my favorite conversations to have. But before we get into that, Edward and Sphera, thank you for being here. Tell me about yourself and how you ended up in this part of the cannabis industry.

Saphira Galoob:

Ed, I’ll let you go first.

Ed Conklin:

Ladies first,

Saphira Galoob:

Please. Well, if you insist, so Tim, I’ve been doing this work specifically focused on federal advocacy work in the cannabis space since November 7th, 2017. And when I came into the space federally, it was the year I remember it because I’m from Oklahoma and it was the year that Oklahoma legalized. And that year, seven states actually came online and I remember doing an analysis, there were two lobbyists at the time in the federal walking the halls of Congress. And I assessed that there were at that point 113 Republican congressional offices that now had legal cannabis in their state. And so before I even started my business, I just started making meetings with these offices and visited 83 offices and five of those Republican offices had ever even heard that cannabis was an issue. So given the trajectory of states passing legalization movements and the number of congressional offices that now had constituents who live in states with legal cannabis and the fact that there were two lobbyists on Capitol Hill, I knew there was an opportunity to be had. And so I launched my career at that point.

TG Branfalt:

How did you first get those meetings? It is not really every day that someone just walks in.

Saphira Galoob:

Well, I am a lawyer and a lobbyist by career. I had a 25 year career in DC and had done a pretty decent amount of lobbying in other areas, and so I knew the drill. So a lot of times when you’re starting a new business, and I’m an entrepreneur at heart, I haven’t had a job working for anybody since 2006. So you just basically start as if you’re already successful and you make a meeting, you make a meeting request. These offices, particularly in an issue that is a bit unknown, they’ll take a meeting even if it’s 15 minute phone meeting. So it is more accessible than people understand, but it requires more work than people appreciate.

TG Branfalt:

So how about you, ed? How did you end up in the cannabis space?

Ed Conklin:

A good question. I used to work for McDonald’s. I worked for a clown, so in the hamburger side and did government relations there for 20 some plus years and retired and actually got a phone call from Joe Ardi at CAF and asked me to come over work for him, and I decided to start that route there. So I was used to lobbying state, federal, international at the time period, but just like sfia when my first trip to dc It’s interesting, and she is absolutely right how she approached it and she was fearless at the time, I got to tell you. So was fearless on this stuff. I started fumbling around in DC with some friends and lobbyists going to these meetings, and a lot of these offices wouldn’t even take your meeting when you talked about cannabis. I mean, there was a long time ago when they’re like, thanks, but no thanks. Prefer not to meet on this until it’s normalized or whatever word you want to use there. But now compared to leap four today, you can go in every office and Sophia is absolutely right. We did a lot of meetings, a lot of discussions, and a lot of talks. So started off small and grew into where we’re at today. So it’s a wonderful industry, some great people to work with, some great entrepreneurs and couldn’t have more fun.

TG Branfalt:

Can one or both of you describe to me sort of the difference now, the actual difference now than when you first started lobbying these lawmakers on the cannabis issue?

Saphira Galoob:

We probably have similar stories. I’ll start and let Ed fill in. So I think depending on the point of reference of the lawmaker, their relationship with the issue is either connected to a criminal justice, social justice, economic justice perspective, or it is a freedom perspective, a state’s rights perspective. Many of these lawmakers, in addition to having those two perspectives also have personal use cases in their families or personal use cases with constituents whose children or family members, sick family members were impacted by cannabis. And so one of the unique things about our industry, it’s not unique to our industry, but I think it is unique about our industry, is that a lawmaker’s relationship with our issue and our policy can really come from a lot of different vantage points and we can leverage those perspectives in a really important and impactful way if we do so strategically,

Ed Conklin:

I think absolutely right. And so what I found out and my first member meeting in the US Senate, I can’t tell you the person’s name just because of the conversation, but it was funny because just like Shafi said, she got as supportive of medical cannabis because her neighbor’s daughter had epilepsy and her neighbor’s daughter and the mother would always talk about how the seizures would go away when they had medical cannabis and the problem of how they got to that point and how they had to secure it. But I think every member has a different perspective, some of that stuff. And I think a fair and ideal with day in day out is old tapes and it’s a war on drugs crowd. They just haven’t understand the difference now, and they have their opinion, even if the state goes legal, I mean even the state goes legal, you still have a lot of folks out there who are just, they have their opinions and that’s what we work on day in, day out, not only in DC but back in their districts, trying to make sure that we educate folks about what cannabis is and isn’t and try to get them to understand the benefits of it.

TG Branfalt:

Do you find that members of Congress are more open to having the medical cannabis use conversation than the adult use conversation

Saphira Galoob:

Ubiquitously? Yes. And I will also say it doesn’t even matter on, there are some folks for whom economic justice, social justice, criminal justice is their motivation, but even their most progressive members, I mean you have, and I say a handful, I mean you can argue about what a handful means in Washington, but adult use cannabis comes with additional complications for lawmakers that cause them to have some vulnerability. I mean, just look what happened with the opioid crisis when Congress realized the misstep and the colossus step where with tobacco, and we’ve seen the numbers on alcohol, both abuse and deaths and members of Congress, whether you agree or disagree with it, their perspective or their policy position, they take public safety, consumer safety, patient safety very seriously. And so having adult use cannabis for many of them is one, they’re not quite there yet. Two, they’re concerned about the lack of data to be able to put the guardrails on for product safety, consumer safety, driving safety, all of the elements of safety elements. But medical cannabis is a much more ubiquitously accepted concept.

Ed Conklin:

Agree. Yeah. I think the number one thing you’ll find between Sophia and I promote is consumer safety, consumer safety, consumer safety. And that ranges from testing the verification to age gating to making sure this product, it isn’t toxin. We got to make sure it doesn’t fall in the hands of minors. And that’s something we always have to look out for. So when you’re talking to senators, staff, congressmen, staff or regulators, that’s a lot of their focus is consumer safety, consumer safety, and they want the testing and the loop we’re stuck in the feedback loop is right now with schedule one drug, it’s hard to do a lot of testing because a lot of these universities can’t touch the actual drug themselves. So it’s a lot of subjective type of tests. So that’s why we’re encouraged on this. President’s push for schedule three and we’re hoping to get there so we can get a lot of research done. And I think Tim, that will change the tone and tenor in DC on lobbying too. There’s a lot of elected officials, they’ll tell you, it’s a federal one right now, come back to see me when it’s not a federal one, schedule one drug. It’ll make it a lot easier to approach these offices when it’s schedule three.

TG Branfalt:

Do either of you hear lawmakers talking about the sort of international treaty issue at all? Because we know that many nations have signed this international, these treaties to prevent legalization of drugs. Obviously Canada in 2018 went ahead with it. And so also in addition to that, do they talk about the success that Canada’s national federal legalization has been, or do they even think about it?

Saphira Galoob:

I would say that’s not on the majority of their radars. I mean, you may go into an office that’s very, very sophisticated, but they’re more concerned with, I’m going to use the word more cursory, but things that lie a little bit more on the surface. We have our eye on that. In fact, I was just in Zurich having the conversation about the treaties this past week because it is an issue with the 30 plus countries around the world that have advanced legalization. Switzerland actually was the host country. They’re actually advancing adult use cannabis pilot program. And Switzerland’s a pretty conservative place. France is going to have a very robust system starting in January. Of course we’ve seen news on Germany that’s got a whole issue around its impending change in government. But I do think the momentum around the world is going to impact the US government’s perspective, particularly this administration’s perspective on what our status and stature is on this plant.

TG Branfalt:

Before we talk a bit more about some of these federal policy issues, why did your organizations decide to combine your efforts?

Saphira Galoob:

Ed, do you want to take this one?

Ed Conklin:

I think this is, it’s a great fit, right? Fair’s organization, NCI does a wonderful job top notch first in class USCC, same exact thing. And by coming together you bring all the best of the best together. I mean, you’re going to have a really very dynamic lobbying group. You’ve got great communications, we’ve got great membership, we’ve got great board members and allows us to do a lot more together. It really is one plus one equals three or four. I mean it’s going to be a terrific addition and it allows for better coordination with all our member companies. A lot of ’em shared actually are members of both groups, but there’s a bunch that weren’t. So I think it’s a dynamic change. And with this change, we’re getting a lot of inquiries. We’re getting a lot of new members, so it’s great to have more help to help us in dc but I think it makes all the sense in the world, and I couldn’t be more excited.

Saphira Galoob:

And Ed talks about the importance of combining great teams. I also remind listeners there are 535 plus members of Congress. There are 535 members of Congress. Depending on people’s, the number can change if somebody is taking an administrative position they haven’t building yet. But just think about the number 5 35 in both chambers. That’s a lot of membership to meet with on the Hill. And last year, I think NCR, well the number I need to refresh my recollection specifically, but we did like 434 meetings.

But imagine if knowing that you need to meet, which with each office eight to 10 times, I mean just in the course, you’re obviously not going to meet with each one, but just imagine the amount of, we call it shoe leather lobbying that needs to be done, the number of meetings that need to happen. It is so, I mean it’s enjoyably onerous, but it is a lot of effort to establishing the relationship, curating the relationship, developing the relationship, advancing a relationship, coordinating relationships, and it’s all very much human to human. And so being able to join these two lobbying efforts into one allows us to cover more ground, gets deeper and advance momentum in a way that we were, I don’t think we were able to do as effectively when we were individual organizations.

Ed Conklin:

Well said. It does, Tim. It takes a ton of work to meet these offices. It really does. It is not because you’re trying to meet 535, I mean, let’s think all those people in times like Sophia set of, but there’s a lot of staff there and you’re doing a lot of education now. Some of those officers, they walk in, there’re high fiving, Hey, we’re with you. Let’s go. Let’s charge other ones. It takes a lot of work and you got to build trust and the US Senate, you still need 60 to pass something. So it’s going to take a lot no matter who’s in charge of the US Senate and our job is to get us 60 votes.

TG Branfalt:

Let me ask you this. Why is something as, how do I put this logical as the Safe Banking Act that’s been supported by members from both parties. It was not passed when there was Democrats in charge. Why can’t they get something this simple done right? I mean, this isn’t a huge overhaul of policy. This is allowing people to not have to operate in cash. And if they’re worried about the safety factor, then wouldn’t that take, I mean what 70% of the risk out? I mean, what prevents this from happening?

Saphira Galoob:

So I’m so glad you asked that question and the way you asked that question is a big compliment to you. I will not infrequently have to say to a host, you’re asking me the wrong question, but in this case, I’m telling you, you’re asking the perfect question.

TG Branfalt:

Thank you.

Saphira Galoob:

And I understand why listeners are both frustrated and furious about the seemingly stalling of this legislation. The first thing I will share with everyone as a reminder is it takes an average of 10 years to get anything through Congress. And that is simple things. So yes, safe banking has a widespread support and has passed out of the house many, many times, eight times now out of Senate banking. But the reality of the way we’re going to get this bill into a law is that we cannot go on our own the way that the calendar works in the Senate and the amount of floor time available for these members to do their prioritized work, there’s no way we can do it alone. And if anybody ever wants to get really in the weeds and talk about why that’s the case, we can do it, but just take my word for it.

We have to ride on another piece of legislation. So then the question becomes what are we going to ride on? And if you look at the number of bills that actually pass through Congress, it is very, very small, particularly those that share some sort of jurisdictional oversight because we don’t want to be in another committee of jurisdiction. We only want to be in the senate banking or financial services. So we’ve got a super careful, and there are even fewer number of bills that pass on that and those committees. And so we are limited on the rides that we can catch. Imagine being in the desert and there’s only one car coming once or twice a year. How are you going to get on that car? And so that then depends on the politics and the policy of that car. And so we’ve been working on a banking strategy, we’ve been working on a crypto strategy, we’ve been working on an access to capital strategy. Every strategy you can imagine, we are activating and operating and we are getting closer. I realize that this is not darts or hand grenades or mini golf, actually, I don’t even know if mini golf counts, but the win is the win. And anything less than the win is not the win, but we are getting closer to the win.

Ed Conklin:

Yeah, the only thing I’d add on there, Tim, is it was a good question is there’s still people in leadership in the Senate up until last year and even this session that aren’t fully on board yet. And once again, I said it is kind of what goes first. And there’s a lot of people that say, well, the arguments against safe banking, which are few and far between. I mean it is really not a vote for campus. It’s vote for safety. That’s all this is really about is voting for safety because unfortunately people are getting robbed. People are getting killed in dispensaries. It’s a horrible situation and nobody wants that. But when you break it down, there are still a lot of people in the Senate and others who are not broke cannabis and some of those folks are in leadership positions. And it takes a lot of discussion to get through that.

And as Sofia said, is there’s two cars coming and you’re trying to get everybody lined up. We had last session, and I’ll go with 67, 68 votes on safe banking, but we just couldn’t get Leader Schumer and minority leader McConnell to agree on what to attach it to and go through the process. So it’s just a frustrating part and it’s just part of the job. We deal with it all the time. And it can be very frustrating for CEOs and people in charge. We get that. We understand that, but it’s something we’re dealing with. And I think with the merger happening here and all the resources that we have now together in the focus that it changes everything for us. And I feel real positive where we’re at. Of course, I feel positive every time because in this industry you got to be positive because if you’re a negative person, you’re not going to last this industry and you won’t do it. But

Saphira Galoob:

Generally,

Tim, I want to bring up something really important that Ed said, and particularly for listeners, because again, we’re talking about the logic, why can’t it get through? So one of the things that people on the outside of DC don’t, and when I say it failed to realize I’m not suggesting, I mean, I don’t speak languages in other people’s industry and I don’t expect ’em to speak dc, but messenger matters. So someone will hear of an individual on one side of the aisle, one side of the chambers, senator of the house, this person loves us and they’re going forward for us. And I’d be like, well, that doesn’t really matter because that person one doesn’t sit on the right committee. Two is not in the majority, three doesn’t have juice in their caucus, and four doesn’t really have a negotiating stature to actually be able to get us momentum.

And so frequently I will go be at odds with folks in the industry about who should introduce the bill, not what the bill is, but who should introduce. And so we need more of the right champions. We have a lot of support, but we don’t have enough support with people with a lot of juice and we’re developing. But it takes a really long time. And when I say a really long time, I’m not talking about months, I’m talking about years. It took us four years to get Senator Danes to agree to step into the banking. And it came through his admiration of the veterans issue and his relationship with Cory Gardner and Cory Gardner’s then exiting the Senate and him taking the mantle then and things going on in his state. But I can tell you, Steve Daines, Senator Daines stepped off committee and we absolutely would like to have another champion take the Safe Banking Act in the Senate.

And it’s very, very difficult. And the reason difficult is because for many of these senators, they don’t get any kind of push or any kind of improved support by supporting an issue, say thinking for example in their district. And for many of them, they actually risk being, I don’t use the word beaten up a little bit, but they actually risk losing support or having some challenges by leading on an issue that’s not super popular amongst their constituents. So it’s way more delicate than people outside of DC appreciate. We have a lot of money morning quarterbacking on what Eds and I do all day every day. And I would invite anybody to come in and see it real time. You would change your tune if you had to sing the song and walk the halls with us.

TG Branfalt:

I really do appreciate your candor on this because I think for a lot of people, the term lobbyist is a dirty word. And I think that this is sort of evidence of the tenacity of what you’re actually doing. I mean, I hate to say it’s almost a little thankless, but in this conversation

Saphira Galoob:

It’s completely thankless now. Thankless. It’s completely thankless. And Ed and I honestly, ed and I hasn’t had a lot of disagreements, but the one time we had a disagreement is he said, oh, say thanking that nothing has passed. So we failed. And I said, I refuse to accept that word failure. We may have not gone over the finish line, but I mark my success by progress made. And I do think there is that you actually charted, you actually charted the progress and you show the documentation of how close we get from year to year. I mean, I realized that the win is not the win until it’s the win. But you don’t get to the win until you do all the things that we’ve done and more. You just don’t get there.

Ed Conklin:

And while lobbyists might be a dirty word to sum, Tim, everybody’s a lobbyist. I’ve given this presentation to colleges as classes. How many times have you ever gotten pulled around a confidence speeding ticket? You ever try to lobby yourself out of that speeding ticket? Yeah, you have when you’re a kid, you wanted your allowance, you wanted a new iPhone. Yeah, you lobby or Yeah, we’re all lobbyists. I mean, we lobby for an industry, that’s what we do.

TG Branfalt:

Y’all go to dc so I don’t have to What expectations? Do you have any expectations for any policy reforms this session?

Saphira Galoob:

Yes, yes. That president is going meet the promises he made on the campaign trail. That is our expectation and that is what we are focusing on 100%.

Ed Conklin:

President Trump has come out in support of schedule three. He’s come out in support of safe banking, he’s come out in support of state rights and all those are critical. And this president keeps his promises. So both of us are in our trade groups. We’re working very hard to support him. It’s going to take time. I mean, I know you’re getting the same phone call as I, this should be done by now. He’s got other issues he’s dealing with. There’s a lot of other issues that he’ll get to this issue and we are doing all the right things. We’re doing the polling super packs, we are doing the fly-ins. We’ll do all the stuff that we do, but we’re going to work very hard to make sure we are there to support him with his promises.

TG Branfalt:

I mean, even with the nomination of RFK Junior as head of HHS, you think that this administration is better for cannabis than maybe the previous one.

Saphira Galoob:

I mean, holistically, if you look at the way this president has engaged with our issue both pragmatically and publicly, this president is actually much better for our industry, even in a criminal justice perspective, the commitment that this president has shown towards clemencies and expungements to people who were incarcerated because of cannabis. I mean, we have more to show on the criminal justice side for people who have criminal justice decades in the system because of cannabis, more so than with Biden, because Biden did extend commutations, but not for people. I mean, I think there’s a handful, less than a handful for cannabis incarcerated people were incarcerated for cannabis. So the other thing is that this president made a commitment on the campaign trail very, very specifically towards two of the things, three of the things that are most important to most people in this industry. And we didn’t hear that level of diligence or dedication by then President Biden or president nominee vice president candidate Harris. So we are in a promises made, promises kept trajectory, and that is where we’re focused all day every day.

Ed Conklin:

And I think too, I think this president is showing you his cabinet and his people that he has direction fluence over are going to follow his lead. And when you think about schedule three, the key person there is the attorney general Pam Bondy. And we’ve been very open that she can go right to rule on schedule three. And so there’s a lot that she can do by, she doesn’t need everything else. I mean, she’s ready to go. And we’ve done a lot of work. We’ve had some great attorneys that have been working on this issue since the last administration initiated it. So 30,000 plus comments in and of that 90 some percent or I don’t know exactly percent, but it’s a huge percent is positive, right? So they’ve got everything they need to go forward. So as Sophia said, promises made, kept promises said, promises kept. So we’re going to keep going with that process and work it very hard.

TG Branfalt:

What do you hear from your members about the potential change to schedule three? I’ve spoken to some people in the industry who envision that that’s going to basically get rid of medical cannabis programs because it’s going to put cannabis in the hands of the HHS and the pharmaceutical companies. And what are you hearing from your members and what do you think that Schedule three would do to state industries?

Saphira Galoob:

So first of all, our members, whether they like it or not, they are very educated on what’s going on in DC because we just bombard them with really deep, deep policy. And this is where we’re headed, this is what we’re up against. So if you talk to our members, they really understand the difference. So let’s remind ourselves that moving cannabis from a schedule one to schedule three, that impacts whether or not something has medical utility and it impacts the intoxication affecting the addiction. So it is, we expect for there to be no change on state programs from a Scion perspective, Antonin Scalia, stripped scrutiny, those state programs are still not in compliance with federal law, even under a Schedule iii. Now I say that and I don’t think we’re going to have what I call the black helicopters descending. The state programs will still stay and be deferred to the federal government has long not just had a deference for state level cannabis programs, but a preference for it, both Democrat and Republican Congress in both Democrat and Republican administration.

So a change to schedule three, we do not believe disrupts state cannabis programs. We also believe that whether medical programs are successful in the state depend on the state. And we believe that a pharmaceutical company’s ability to get in is not going to be impacted by a change in Schedule three. It’s whether or not those pharmaceutical companies, either one want to follow a traditional pharma route that Epidiolex followed, or they want to purchase a license from an existing cannabis operator. So whether or not cannabis concedes to pharma likely has more to do with what cannabis decides than what Pharmac decides. And frankly, we are such small potatoes for them in terms of profitability and market share that we are of less interest than other areas where they can extend their investment. I didn’t know if you knew I had an opinion on that, but I’m glad you asked.

Ed Conklin:

I think when you think about what we talked about about the president, you get rescheduling done, which is the fairness outline with that we’ll do plus two 80 E, right? Take care. That will energize everybody. Everybody says it’s a big, big player. It’s not. It’s small, medium, large. Everybody’s going to benefit from that. No matter who you are in the sphere, 80% tax is not a good thing. I mean, you can’t survive on that. We need more regulations. We’re all for more regulations, safety, compliance, all that. We fully support that. You get safe banking done. That’s another key message point. Get them cash out of the system. Let’s get it through the financial system. Let’s make it safe in our dispensaries for not only our employees but our consumers. And then you get states rights and man, if you get capital access, get us on New York Stock Exchange. This whole industry is going to explode and it’s going to be great for everybody. Everybody will do a wonderful, have a wonderful time in this industry, and there’ll be a ton of investment pouring in, and then you’re going to have a real industry. I think it’s going to be fun to be there and watch it happen.

TG Branfalt:

Is there any legislation that’s been introduced this session that you guys are tracking and that could see some movement?

Saphira Galoob:

So the bills that you’re referring to are bills that we’ve seen in the past, and we’re working with those key bill champions. There is a sequencing and a timing for introducing bills. And so while we have not seen the introductions as early on in the Congress, as we have seen in prior congresses, one should not interpret that as negative one should interpret that as strategic.

Ed Conklin:

Very

TG Branfalt:

True. And then we’ve talked about the sort of banking access, the two a DE. You mentioned that as a combined organization, what is your sort of mission statement or messaging going to be sort of broadly speaking to the cannabis industry and stakeholders?

Saphira Galoob:

Do you want me to start with this one? And you can have, sure.

Yeah. Actually we’re interrupting each other a lot less, but we are still learning how to be good dance partners. One voice, one vision, one industry. That’s what a combined effort between USCC and NCR gives us. I know there are folks that are not familiar with either of our individual organizations and not familiar with our combined organizations, but we invite them to get to know us. Washington is a curious place. You want the best players on the field in Washington, even if you don’t like them personally or you don’t respect them politically, you want the best players on the field. And this combined entity gives you an effort that looks at the smallest players to the largest, to folks that are operating in one to dispensary or multi-state that are ancillary businesses or are vertically integrated. This organization represents that collective one voice, one vision, one industry.

Ed Conklin:

And if you’re not a member, come join us. Call us phe. Call me. We would love to have you part of the team. We need everybody, Tim, we need everybody’s help on this thing. There is not enough folks involved. And we would encourage everybody to pick up those phones, dial our phone numbers or send us an email. We’d love to hear from you.

TG Branfalt:

Given both of your combined experience lobbying, would you describe this as the most difficult sort of issue that you’ve gone to Washington for?

Ed Conklin:

Oh

Saphira Galoob:

Yeah, cheeseburger. Are hamburgers and cheeseburgers easier than cannabis?

Ed Conklin:

This is a crazy, I mean, it is so much fun to be involved. I mean, you have entrepreneurs, you got businesses, you got people who you got the illicit market, which is just absolutely nuts, right? I mean the illicit market, I mean, who knows what you’re getting, right? So all I can tell you is there’s a lot of this confusion in DC that triggers all this thing. And you have the state markets and you have the hemp industry out there. So you got all these things out there working. And what’s going to help us out immensely is the fact Asir said one voice. It is time to align. We have to align behind few issues. We can’t boil the ocean. We got to align behind few issues, and we got to all speak the same voice, same message, and we’ll deliver a victory. And that’s what we’re going to do.

TG Branfalt:

Of all of the things that we’ve sort of discussed here, what is sort of the top of going to be the priority pile for you? Is it going to be two 80 e? Is it going to be the rescheduling issue? What’s going to rise to the top here?

Saphira Galoob:

Yeah, so I definitely want to ride on Ed’s comment that we got to get really focused as well as yours about what’s the top, rather than choosing, we are going to only do this or only do that. We have enough bandwidth and there’s enough momentum on rescheduling and on access to all financial services. And then really building that base work for the state’s rights to actually do that. There’s that three-legged stool there. And I will say for folks who want everyone to have everything or no one gets anything approached, that kind of all or nothing approach, there is little to nothing in DC where that actually happens. And so while that is that altruism is really notable and inspiring, it’s just not pragmatic. And so if we can achieve the schedule three, that work has been in play, in addition to the 90,000 comments, remember we had a 252 page outstanding recommendation. We had an office of legal counsel memo saying, we concur with that recommendation and we have the Department of Justice recommend a schedule three. So we are winning, we’re winning, we’re winning. We just got stalled in a very discreet issue in litigation. And in order to restart that, we’ve got some really impactful recommendations for newly stated AG Bondi. But getting schedule three, addressing access to financial services is what this industry demands and deserves immediately.

TG Branfalt:

Finally, what advice would you have for entrepreneurs who might want to get involved on a policy level?

Ed Conklin:

Call us, call us, us, email us. I think everybody thinks, from my perspective, and I can only speak what I see, everybody thinks about the dispensary owners. I want to be dispensary owner, but there’s so many other facets. This industry, it’s out there that is available for entrepreneurs to get involved with. So between s Sophia and myself, and between our boards and between all our members, if somebody has an interest to get involved or if they are involved, they want to learn more, contact us. We have a lot of contacts and put you in contact with and help you out. It is one thing that’s great about the business industry. There’s a lot of sharing and caring going on. And Tim, like you and I were talking about before with this snow up there and you helping out your neighbors, that’s what this industry does a really good job at. I mean, there’s a lot of sharing. There’s a lot of people putting their shoulders against the wheel and pushing hard to get this thing moving along. And it’s fun to watch and it’s fun to watch success and there’s some failures happening, but every industry has a little failure in startup and stops. But there’s a lot of great successes out there and a lot of great stories.

Saphira Galoob:

And I would say there are some folks for whom engaging in Washington is just really hard right now for other reasons. And if that’s the case, my assignment to you is as follows, one, do you know who your member of Congress is? You should find that out. Two, sharing what your congress person, what these priorities are, access to safe banking. And they can’t do a whole lot on the scheduling assuring states rights or whatever your point of reference is, are you involved in your local politics? Are you involved with your chamber of commerce? Are you sponsoring a little league team so much about familiarity and reducing the stigma? Do you have a relationship with your religious community so that they know what you’re doing for the community? How are you giving back to your community outside of cannabis? That is the ecosystem of trust. That is the ecosystem of credibility. That is the ecosystem of consistency that we need to be able to bring to Washington. And so I would just invite anybody who is concerned about this to get involved somehow some way someplace.

Ed Conklin:

I can guarantee you what Sophia said is a hundred percent true. And another thing I used to give this class, I could tell you about congressional members, not Senate, but congressional members. They have all these meetings back in the district all the time. It’s breakfasts, it’s lunches, it’s dinners, meetings, just attend one and go up and introduce yourself. You’re going to find out they don’t have a third eye. They wanted to get to know you. They want your vote, first of all, and you probably did vote for ’em. Or if you didn’t, it’s still fine. And just have a conversation with ’em and ask for a follow-up meeting and they’ll be happy to do it. I mean, these folks who are elected are people, people, people persons, and they want to talk to people. And they’re a lot of great elected officials out there in this us, and they’re fun to be with. They have great stories. I can guarantee you, you will have a connection with them because they know a lot of people in your town already. Once you start talking to ’em, you’re going to have all these connections. The next thing you know, you’re off to the races, so please reach out to ’em

TG Branfalt:

If you could peer into a crystal ball. I mean, obviously you had mentioned Shafi that we are in this sort of litigation issue with getting this hearing on the schedule three re-designation Vegas odds that we’ll get that hearing this year.

Saphira Galoob:

Well, I don’t want to, first of all, I’m not a betting person. I have to go to Vegas for MJ Bs, but I’ve never placed a bet myself, so I’m not going to bet. But what I’m going to say is there’s been a significant amount of progress made in the rescheduling and the process for rescheduling that’s statutorily designated. And there are a lot of pathways towards success. And I don’t think it is mean. This is where I’m not saying it’s not a fair question for me or a fair question for the process because there are a lot of different ways to get to success and we are leaving no stem unturned to get to that success.

Ed Conklin:

I would say, say you don’t need a hearing, I’d say the ag could go right to rule three. If she go right to rule pronounce, it’s going to schedule three and then it’s going to end up in court anyway. Right? There’s opposition to everything. There’s always people pro and there’s always people opposite and somebody’s going to complain about, but there is law, there is rules, and the attorney general, Pam Bondy has the ability to go to schedule three. Well,

TG Branfalt:

I hope we could avoid a drawn out legal process here to advance this finally. It’s been a long time since I think, and I think you would obviously agree that federal reform are desperately, desperately, desperately long overdue on this issue. So where can people find out more about your organizations and soon your combined organizations?

Saphira Galoob:

We are still working on our new website, but we do have an email address and it’s funny Ed, because it’s info@uscr.org. Am I saying that correct?

Ed Conklin:

There is that, or you can just go, mine’s ed@uscc.org. ed@uscc.org and ra, you got yours?

Saphira Galoob:

Yep, ra. I have my lobbying firm hat ra@theliaisongroup.org. But what we can do, Tim is in the show notes, we can put some contact information so folks don’t have to be writing madly. If they’d like to get in touch,

TG Branfalt:

We can certainly, certainly do that. Yep. Thank you both so much for taking the time out of your busy schedules trying to save us from dc. I really appreciate it. This has been a lot of fun and I hope that we can touch base and the next time we do that, there’s been some progress made. Right?

Saphira Galoob:

We look forward to it.

Ed Conklin:

We look forward to it, and thanks for having us on.

TG Branfalt:

But is Edward Conklin, executive director of the US Cannabis Council and s Galu, executive Director of National Cannabis Roundtable. The USCC and NCR last month announced they are going to combine other organizations to create the US Cannabis Roundtable. You can find more episodes of the entrepreneur.com podcast in the podcast section of entrepreneur.com or wherever you get your podcasts. On the entrepreneur.com website, you’ll find the latest cannabis news and cannabis jobs updated daily along with transcripts of this podcast. You can also download the entrepreneur.com app in iTunes and Google Play. This episode was engineered by Wayward Sound Studio. I’ve been your host, TG Branfalt.

End


Hemp Supporters Crowd Texas State Capitol to Protest Proposed THC Ban

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Hundreds of supporters of the Texas hemp industry crowded the State Capitol Building on Monday to denounce efforts in the Legislature to heavily restrict — or even ban — hemp-derived THC products, KVUE reports.

Hemp products containing 0.3% THC or less have been legal in Texas since 2019, and in that time, the industry has bloomed into a multi-billion-dollar industry supporting tens of thousands of jobs in the state.

The majority of Monday’s testimony was opposing the restrictions, the report said.

The bills specifically target THC, the primary psychoactive ingredient in cannabis:

  • Senate Bill 3, which was passed by the Senate last month, seeks to ban any and all forms of THC, and
  • House Bill 28 would allow for low-potency products but implement serving size restrictions.

Neither of the proposals would directly impact the state’s medical cannabis industry, and they would both tighten advertising restrictions and implement stricter testing requirements. Additionally, the bills would both allow for the sale of other hemp-derived cannabinoids, including CBD and CBG products, the report said.

Texas Lt. Gov. Dan Patrick (R) last year said that banning hemp-derived THC in the state would be one of his top legislative priorities for the current session. Meanwhile, a poll earlier this year found that 62% of Texas residents support legalizing adult-use cannabis in the state.

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New York Investigating Product Inversion Involving Out-of-State Cannabis Brands

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The New York Office of Cannabis Management (OCM) is investigating several large cannabis brands for potential inversion of out-of-state cannabis products into New York’s regulated cannabis market, the New York Times reports. Cannabis inversion is when unapproved products get diverted into a state’s adult-use market, circumventing local cannabis licensing and quality control rules.

The Times cited unnamed sources claiming at least six cannabis brands are being investigated for inversion, including large multistate operators like Stiiizy, Grön, and Mfused.

OCM officials on Monday conducted surprise audits of Omnium Canna as part of its investigation launched in February, the report said, into whether the licensed cannabis processor might be manufacturing cannabis products using out-of-state cannabis. If Omnium — which manufactures products for the brands listed in the report — is found to have improperly obtained its source material, the company’s license could be forfeit.

Stiiizy CEO James Kim said in the report, “At no point have we sourced cannabis from out of state or engaged in practices that violate New York’s cannabis regulations.”

Grön spokesperson Drew Tybus said the Oregon-based edibles company is not being investigated. “We are not under investigation in any state in which we operate or where our products are manufactured and sold, and refute any claims or references to the contrary,” he said.

Mfused, another popular multistate cannabis brand named in the report, did not provide a comment for the Times but later told MJBizDaily that the allegations were untrue and that the company is not under investigation.

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Hawaii Lawmakers Trying to Shut Down ‘Illegal Dispensaries’ Selling Intoxicating Hemp Products

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Hawaii lawmakers are trying to shut down shops selling intoxicating hemp-derived products, SF Gate reports. In a resolution introduced in the state House of Representatives, lawmakers say there are “allegedly over eighty-four illegal dispensary operators” with the number increasing “exponentially.”  

“…the Department of Health, Department of the Attorney General, and Department of Law Enforcement are urged to coordinate an enforcement plan to address the lack of enforceable compliance, rules, and regulations regarding the surge of illegal dispensary operators that sell cannabis labeled as hemp.” — Hawaii House Resolution 141  

Two bills recently introduced in the Hawaii Senate to reform the state medical cannabis program include language to crack down on retailers selling high-THC hemp products. Both proposals were given passage recommendations by the Senate Judiciary and Ways and Means Committee last week.  

The resolution notes that the “illegal dispensaries” are located around tourist centers, such as airports, near state-approved medical cannabis dispensaries, and near schools and playgrounds – locations that are usually provided a buffer zone in state-approved adult-use laws.   

“…Illegal dispensaries offer immediate access to cannabis without age gating or the need for a medical cannabis card; both online and delivery services,” the resolution states, “and products potentially contaminated with pesticides, solvents, synthetic cannabinoids, and other harmful substances.”   

In February, two House committees approved adult-use legislation; however, the bill has not been considered by the full chamber.   

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Michigan Supreme Court: Cannabis Odor Alone is Insufficient Probable Cause for Warrantless Vehicle Search

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The Michigan Supreme Court ruled last week that, in the wake of adult-use cannabis legalization in the state, the odor of cannabis alone is insufficient probable cause for police to search a vehicle, the Detroit Free Press reports. The 5-1 decision overturned a 25-year-old legal precedent.

Writing for the majority, Justice Megan Cavanagh said that “The appropriate rule is that the smell of marijuana is one factor that may play a role in the probable-cause determination.”

“A warrantless search must be based on probable cause, and the smell of marijuana is insufficient to support probable cause.” — Cavanagh, in the majority opinion

The decision comes from a 2020 case during which police officers conducting compliance checks observed a vehicle parked on the side of the street and smelled the odor of burning cannabis. The officer approached the vehicle, and asked if the occupants were smoking marijuana, which they denied. The occupants were asked to get out of the car, at which time an officer noticed a handgun on the passenger seat. One person was arrested and charged with carrying a concealed weapon, being a felon in possession of a firearm, and possession of a firearm during the commission of a felony.

The Supreme Court decision found that the search was unconstitutional because the state’s adult-use law allows adults to possess and consume cannabis and that because the car was parked, no laws were being broken at the time of the search.

The decision did leave the door open for police to use the odor of cannabis in “developing probable cause concerning illegal activity.”

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Oklahoma Cannabis Advocates File Adult-Use Constitutional Amendment

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Cannabis advocates in Oklahoma have drafted a constitutional amendment to legalize cannabis for adults 21 and older, the Oklahoman reports. Oklahomans for Responsible Cannabis (ORCA) filed the proposal last week. If no legal challenge emerges, the campaign must collect at least 172,993 valid signatures from registered Oklahoma voters to get the question on ballots. 

The proposal would preserve the state’s existing medical cannabis framework and would exempt medical cannabis purchases from the proposed 10% excise tax on adult-use cannabis purchases. Current medical cannabis patients who retain their patient status would also no longer have to pay the current 7% tax on medical cannabis purchases. 

The draft includes protection for cannabis consumers for housing, healthcare, employment, public benefits, education, firearm possession, and financial services. It also includes language around impairment testing for drivers.

“The mere presence of THC metabolites in a person’s blood, urine, hair, hair follicle, or other body fluids or tissues carries no evidentiary weight with regards to current impairment or intoxication. No test which identifies the presence of THC metabolites in a person’s blood, urine, hair, hair follicle, or other body fluids or tissues shall be used as evidence of impairment or intoxication for the purposes of denying any form of healthcare, housing, employment, public assistance, license or licensed activity, public benefit, parental right, educational opportunity, or extracurricular activity.” — ORCA adult cannabis use petition draft 

In 2023, Oklahoma voters rejected a proposal to create an adult-use market in the state 62% to 38%. That proposal was sponsored by Yes on 802-Oklahomans for Sensible Marijuana Laws. 

ORCA Director Jed Green told the Oklahoman that “one of the fundamental differences” between Question 802 and Question 837 – the one backed by ORCA –  “is that SQ 820 would have created a duplicate licensing system that has demonstrably failed in multiple other states.” 

“[Oklahoma Medical Marijuana Authority] was already behind on licensure renewals, and there was no way OMMA could handle it,” he said, “or that business should be required to have two separate licenses, two sets of regulations and potentially two sets of storefronts to sell the same product.”    

If the proposal is put to voters and approved, cannabis sales could begin within 60 days after passing. 

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Florida Bill Would Waive Medical Cannabis Registration Fees for Veterans

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Lawmakers in the Florida House Health Professions & Programs Committee last week voted to advance a proposal to waive the annual $75 registration fee for medical cannabis patients who are veterans, Newsweek reports.

Introduced by Rep. Alex Andrade (R), the bill would also extend the certification period of medical cannabis patients for the program from one year to two years, so patients would need to get recertified for the program half as often. Additionally, while the $75 registration fee would be waived for veterans, they would still be required to pay for their certification for the program by a licensed doctor.

A previous version of the bill (HB 555) sought to add home cultivation to the program, expand the number of qualifying conditions, and allow patients with out-of-state medical cannabis IDs to participate in the program, but those provisions were removed before the committee considered the proposal.

HB 555 has a companion measure in the Senate — SB 552 — but the proposal has not been touched since it was introduced on March 4, the report said.

The Florida medical cannabis program has over 900,000 registered patients.

Last year, the state’s adult-use constitutional amendment could not reach the 60% threshold necessary to pass, falling short with just 56% voter support. Advocates are planning to make another attempt at legalization in 2026. Meanwhile, Florida officials recently fined the campaign $121,850, accusing the group of having violated state election laws.

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Minnesota Judge Orders State to Hold Early Lottery for Social Equity Cannabis Licenses

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A Minnesota judge ruled on Friday that state officials must hold a cannabis equity pre-licensing lottery after the Office of Cannabis Management (OCM) abandoned the process late last year amid legal challenges, the Minnesota Star Tribune reports.

Written into the state’s cannabis legalization law, he pre-licensing lottery was designed to give disadvantaged operators an early start in the industry. But the early lottery was delayed last November due to lawsuits filed by applicants whose applications were denied. Ultimately, OCM officials opted to hold a social equity lottery alongside the state’s general licensing lottery, and the agency started accepting applications for the general licensing period in February.

But Ramsey County Judge Stephen Smith ruled that officials are bound by the law to hold the pre-licensing lottery.

“Canceling the lottery effectively casts aside the significant time and investment 648 qualified applicants put into shoring up their capacity to hit the ground running as a licensee.” — Smith, in the order

OCM Interim Director Eric Taubel told the Star Tribune in a statement that after last week’s ruling, regulators would “seek dismissal of the case on an expedited basis” and that “OCM expects to begin issuing licenses to qualified social equity applicants in a matter of weeks.”

“There are currently more than a thousand qualified applicants for social equity licenses who are first in line to receive business licenses, and OCM has been clear since November that any delay to the lottery would prove fatal to the preapproval process. At this stage, additional litigation and delays serve no one. OCM looks forward to continuing its work to get licenses out the door and launching the market as soon as possible.”

The state has received more than 3,500 cannabis business applications, and the first cannabis licensing lotteries are expected in May or June, the report said.

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CannabizSeed Top Selling Strains Announcement

CannabizSeed Announces Top-Selling Strains of 2025

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Cannabiz Seed, a leading online retailer for premium cannabis genetics, just announced its top-selling strains for the first quarter of 2025. The report clearly highlights a grower’s preference for feminized, autoflower and high-THC seeds.

Feminized Seeds

According to Cannabiz Seed, feminized seeds continue to dominate sales as growers aim for reliability and maximum yields. This is in line with an earlier report that projects the feminized seeds segment having the highest growth rate through 2031.

Unlike regular seeds, which produce males, feminized seeds are bred only to produce female buds. This eliminates the guesswork of sexing plants before they can pollinate consumable flowers.

The most popular feminized cannabis seeds on Cannabiz Seed this year include:

  • Mac 1—A 50/50 balanced hybrid strain with up to 27% THC content and eye-catching trichome-heavy flowers.
  • White Widow—A legendary strain that yields beautiful resin-coated buds with up to 20% THC.
  • Pineapple Express—A sativa-dominant powerhouse with a rich pineapple-dominated taste and aroma profile.

Autoflower Seeds

Cannabiz Seed reports that growers buy autoflowers for their ease of flowering in different setups without the need for complex light tweaks or equipment. The automatic flowering ensures faster bloom and year-round harvest.

The report highlights the following strains as the top sellers of 2025 so far:

  • Dwarf Low Flyer Autoflower—A perfect indica-dominant hybrid choice for indoor setups with limited spaces with generous yields.
  • 24K Gold Autoflower—A beautiful golden-hued flower that promises calming yet focused effects.
  • Northern Lights Autoflower—A classic indica hybrid prized for its high resin production and intense aromas.

High THC Cultivar Seeds

Between the 1960s and 1980s, the potency of most cannabis cultivars was less than 2%. Due to a rise in market demand and the fast-evolving breeding technology, the potency has risen significantly over the years.

According to Cannabiz Seed, the popularity of high THC cannabis seeds is highest amongst seasoned users with developed tolerances. In addition, medical users looking for rapid and longer-lasting relief also tend to go for high potencies rather than mild strains.

The most popular sellers in the high THC category on Cannabiz Seed are the following cultivars:

  • Grape Ape—A 90% indica hybrid known for its intense relaxation effects and high THC content.
  • OG Kush—A potent, aromatic, and euphoric old-school legend boasting up to 26% THC.
  • Bruce Banner—A consistent and popular bestseller achieving up to 28% THC

About Cannabiz Seed

Cannabiz Seed remains committed to delivering high-quality cannabis genetics and expert resources to support growers. The online retailer boasts a diverse collection of cannabis genetics that caters to growers of all levels. ###

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Supreme Court Sides With Truck Driver Suing CBD Manufacturer

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The U.S. Supreme Court this week sided with a former truck driver who is seeking triple damages against Vista, California-based Medical Marijuana Inc. over a hemp CBD product the plaintiff said caused him to fail a routine drug test, which resulted in his firing, ABC News reports.

The court ruled 5-4 to confirm the plaintiff’s right to sue the company for triple damages under the Racketeer Influenced and Corrupt Organizations (RICO) Act, an anti-mob law established to target organized crime.

Douglas Horn, the now ex-truck driver, said he purchased the product to help treat chronic back and shoulder pain, and because it was advertised as being free from THC. But after Horn failed the drug test and was let go, lab tests found that the products did in fact contain THC.

An appeals court previously sided with Horn.

Medical Marijuana Inc. argued in defense that Horn couldn’t seek the additional damages because he’s claiming personal injury, which is not covered under RICO, but Horn argued that because the product had led to him losing his job as a truck driver, it was in fact a business-related inquiry.

 

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White House Official Says “No Action” Being Planned for Cannabis Policy

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Despite President Trump (R) previously expressing support for rescheduling cannabis at the federal level, the first messaging on cannabis policy out of the second Trump Administration is that “no action is being considered at this time,” according to a CNN report. The statement was attributed to an unnamed White House official.

Outside of an official fact sheet last month deriding Washington D.C.’s local cannabis decriminalization policy as having caused “disorder” in the nation’s capital, the White House had been otherwise silent on the cannabis issue since taking office.

According to the report, a pro-cannabis political action committee called American Rights and Reform PAC is planning to spend over $1 million on pro-cannabis advertisements near the White House and the president’s Mar-a-Lago resort, hoping to influence President Trump toward the reforms. Additionally, the ads will play on two of the president’s favorite talking points, including:

  1. Disparaging the previous Biden Administration’s accomplishments (noting how Biden failed to fulfill his campaign pledge to enact significant cannabis reforms), and
  2. Claiming that Canada is cashing in on U.S. cannabis prohibition by allowing American cannabis firms to be publicly listed on its stock exchanges.

The president said during last year’s election that he supported the federal rescheduling process, and that he would vote “yes” on Florida’s adult-use cannabis legalization amendment.

Meanwhile, a Pew Research poll released last year found that nearly 90% of Americans support legalizing cannabis in some form (if not for recreational use, then for medicinal purposes) despite the plant remaining strictly prohibited under federal law.

 

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Florida Officials Accuse Cannabis Legalization Campaign of Fraud, Election Law Violations

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Florida election officials are fining Smart & Safe Florida – the organization behind the state’s attempted cannabis legalization campaign – $121,850 for allegedly failing to deliver initiative petitions within the 30 days required by law.

In a letter to Smart & Safe Florida, Deputy Secretary of State Brad McVay said that the Division of Elections (DOE) and Office of Election Crimes & Security (OCES) received information from the Supervisor of Elections’ offices that organizers delivered 2,437 petition forms for last year’s failed initiative after the deadline. The petitions are related to Alachua, Citrus, Clay, Columbia, and Leon counties. 

McVay also accused the group of other election law violations, including submitting “forged or fraudulent” petitions. In another letter, McVay says that one of the petitions in question was “purportedly signed by a Florida voter in February 2025, when, in fact, that voter has been deceased since November 2024.” Additionally, McVay says that some voters who received information packages from Smart & Safe Florida – which contained a petition, campaign mailer, and stamped envelope – submitted the petition more than once. The letter notes that the Palm Beach County Supervisor of Elections has referred more than 100 voters to OCES over potential multiple submissions.  

In a letter to the Palm Beach County Supervisor of Elections, Smart & Safe Florida said that the inclusion of multiple petitions in mailers “included both a pre-filled version and a blank one” meant to target “multi-voter households and intended the blank form to be completed by someone different than the person identified on the pre-filled form.”

“However, it seems some people may have filled out and returned both in their name, leading to duplicates. We do not believe (voters filling out and returning both petitions in their name) was done with any malice or purposeful intent – just a case of confusion with the mailing process.” — Smart & Safe Florida, in a letter to Palm Beach County Board of Supervisors via Florida Department of State 

McVay also accused the mailers of containing materials unapproved by state officials. According to the letter, the form approved by the Secretary of State “did not include a hyperlink” while the forms mailed to voters did, and that the hyperlink to the proposed amendment ran afoul of rules that require “the full text of the associated proposed amendment…be provided or displayed” before a voter signs the petition.

The letter demands the group cease and desist from “mailing, use, or circulation of non-approved petition forms.”

The Smart & Safe campaign told Florida’s Voice that the claims “appear to be a targeted effort to thwart the ability for the people of Florida to express their support of a citizen-driven amendment.”

“We stand by the process and had legal counsel vet all forms and communications prior to mailing and look forward to challenging the validity of these claims.” — Smart & Safe Florida campaign, via Florida’s Voice

Last year’s legalization campaign received nearly 56% voter support, but the initiative failed to pass because Florida law requires 60% for ballot amendments to the state constitution.

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Indiana Bill Would Ban All Cannabis Advertising in the State

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Indiana lawmakers are considering a bill that would ban all cannabis advertising in the state, Indiana Capital Chronicle reports. The provision was included as an amendment to legislation dealing with utility trailers after a Senate panel last week considered a bill to ban cannabis advertising on billboards in the state. 

During last week’s hearing, State Rep. Jim Pressel (R), chair of the House Roads and Transportation Committee, said his community – which is near the Michigan border – is “inundated” with cannabis ads on billboards. 

“My constituents, myself included, receive up to two – what would look like political mailers – a week advertising an illegal substance.” — Pressel, during the hearing, via the Capital Chronicle 

The amendment would ban the advertising of any Schedule I drug on the state’s controlled substances list and would impose civil penalties of up to $15,000 and “reasonable costs” associated with the investigation and lawsuit.   

The ban would include billboards, mailers, truck advertisements, television, and could impact online advertising. 

If approved, the bill would take effect immediately but would exempt advertising from contracts entered into or renewed before the approval date.   

The proposal is currently in the chamber’s Committee on Appropriations. 

Cannabis possession is still prohibited in Indiana, although three of its four neighboring states, Illinois, Michigan, and Ohio, have legalized and regulated adult-use cannabis.

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Connecticut Bill Would Let Police Pull Over Drivers for Consuming Cannabis; Study Blood THC Limits for DUI

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The president of the Connecticut Police Chiefs Association is calling on state lawmakers to pass a bill that would allow police to pull over drivers who are consuming cannabis behind the wheel, CT Mirror reports. During testimony before the Senate Judiciary Committee on Monday, Meriden Chief of Police Rob Rosado said officers in the city frequently see individuals consuming cannabis while driving “but that could be the same for anywhere” in the state. 

The legislation would allow police to pull over drivers they see consuming cannabis while driving or if they smell the odor of burnt cannabis emitting from a vehicle, and would allow the person to be charged under the state’s drugged driving laws. The bill would also create a feasibility study for implementing a THC limit for drivers – akin to blood-alcohol levels used to determine drunk driving. The study would be required to be public by Feb. 1, 2026.  

In a letter supporting the bill, House Republicans called it “important” and “crafted to increase safety on … roadways by giving law enforcement officers additional tools to prevent and enforce cannabis-related driving under the influence in the state.” 

“While we believe that it would be better policy to repeal the current law that requires police officers to ignore their sense of smell and sight when it comes to marijuana related motor vehicle stops, allowing officers to stop or search a vehicle based on the smell of cannabis when there is also visual observation of cannabis consumption is a step in the right direction.” — Connecticut House Republicans, Testimony in Support of House Bill 7258, 3/31/25   

During the hearing, state Rep. Steven Stafstrom (D) contended that the legislation is not necessary because “there are so many other reasons the car can be pulled over.” 

“I think this notion that a car can’t be stopped when a cop quote-unquote knows someone is smoking cannabis,” he said, “I don’t buy it.” 

In written testimony, John R. DelBarba, assistant legal counsel for the Office of Chief Public Defender, argued against imposing the blood THC levels.

“Law enforcement has tried in some of the States mentioned in this section to improve upon this situation for drivers by measuring THC in blood. But even when you are measuring THC itself in the blood, which is psychoactive, it doesn’t necessarily tell you how long ago the person used it,” DelBarba wrote. “And the reason for that is THC is a very fat-soluble substance, and the THC comes out of the blood and gets stored and builds up in a person’s body fat. For people who use cannabis nearly every day (such as medical users), the level in their blood can be rather high. It can even sometimes be as high or higher after not smoking for more than a day than the level of an occasional user right after they smoked.” 

The bill remains in the committee. 

End


Photo of Jack Grover, CEO of Grove Bags

Jack Grover: Preserving Potency and Shelf Life Through Better Post-Harvest Practices

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In the ever-evolving world of commercial cannabis, post-harvest practices often determine the fine line between good flower and great flower. Few understand this better than Jack Grover, CEO and founder of Grove Bags. Driven by a personal connection to medical cannabis and equipped with lessons from both the startup world and traditional supply chains, Grover recognized an overlooked gap in how cannabis is cured, stored, and sold. Grove Bags has since become a trusted partner for growers across the spectrum—from boutique craft cultivators to large multi-state operators—thanks to their proprietary TerpLoc® technology designed to optimize shelf life, potency, and terpene preservation.

In this Q&A, Grover breaks down the science behind TerpLoc®, the challenges of scaling a cannabis-focused packaging business, and why proper post-harvest care is more essential than ever for cultivators who are aiming to build brand loyalty. Read the full interview below!


Before launching Grove Bags, what was your background? And what inspired you to pursue the idea that led to launching a packaging company?

My first real-world job was working in a deli when I was 14. I later started work as an investment analyst, and shortly after I switched over to working for a startup. That startup was the probably the most valuable job I had pre-cannabis, learning a lot about what not to do. Eventually, I left after about six months and then jumped over to my last job prior to entering the cannabis space and founding Grove Bags. I had a lot of success with building out a sales team and strategy for a restaurant delivery app. That was an amazing experience with extraordinary people, a lot of whom I’m still in touch with today. That opened my eyes to a lot of things, and it was there at that time that I developed the confidence and momentum to go out on my own. Coupled with everything I saw going on at home with my brother Charlie’s battle with cerebral palsy, developments in the cannabis industry and medical cannabis community, and how I could fulfill a serious need in the supply chain through plant-specific packaging solutions, I left that company to start Grove Bags.

Can you explain the science behind TerpLoc technology? What sparked the original idea, and what was the process like bringing your concept to market? 

I became interested in cannabis and saw how it was a great way to make an overarching impact. I understood packaging and supply chains, and how there was quite a bit of work to be done to improve these aspects of the industry, especially with plant-specific solutions that were tailored to the unique physiology of cannabis and how its medicinal properties are cured, stored, and ultimately preserved. The way that all mature agricultural industries are dealing with extending product shelf life is by carefully controlling gas mixtures. Gas mixtures are the key to the enzymatic process that occur within the plant residually after the actual drying process has ended and the curing process has begun. Our TerpLoc® technology utilizes a blend of several film elements to create the optimal cannabis atmosphere inside every package. Grove Bags allow growers to take advantage of key permeability and protective properties that suit the specific needs of cannabis, eliminating the need for ‘burping’ while curing entirely. The “aha” moment would be seeing the industry in Colorado and California and seeing the widespread problems in post harvest optimization across a lot of organizations and teams.

Can you share any data or case studies that demonstrate how your products have impacted potency, freshness, and shelf stability?

We’ve commissioned multiple third-party long term stability studies comparing our material to other curing and storage methods, including common old-school approaches like glass jars with and without active atmospheric modifiers that claim to control humidity. Our findings have consistently shown that our bags most effectively retain the full spectrum of the desirable volatile organic compounds people look for in cannabis – cannabinoids and terpenes. We also regularly conduct in-house testing, though we understand the need for objective studies in parallel. Results from our third-party studies and analysis can all be found on our website. We also encourage growers to talk to each other and share their experience; thousands of cultivators around the world, from smaller craft grows to larger multi-state operators, have switched their SOPs to take advantage of the benefits our technology offers. You can also find some of these experiences documented on our blog; most recently we visited with Native Roots out in Colorado and Wojo Co. in Michigan, both being top cultivators in their respective markets and people we’re proud to call partners. In addition, if you look at many cannabis competitions such as the recent Zalympix in Los Angeles, the vast majority of podium place holders across the categories utilize our products in their processes.

What were some of the biggest challenges you faced early on? Do you find that the obstacles you’re tackling today have changed much, or is it more of a continuation of the same battles?

There’s a myriad. From supply chain difficulties, to intensive competition, to strict and ever changing regulations, we’re in a very fluid industry that requires constant proactive management. On top of that, getting our foot in the door at all took persistence; we came in with a new technology that almost seemed too good to be true, and for growers who’ve been using the same techniques for decades, getting them on board to just try out TerpLoc® head to head with their existing process took some convincing. Once growers test it, however, they quickly see how much simpler their post-harvest can be and how much better their product can be cured and preserved at its best. Much like the tumultuous legal landscape of cannabis, this is a challenge that we continuously work on as the market and consumers evolve.

The cannabis industry has changed dramatically in the last decade—what are some key shifts that have had an impact on your business?

I think we’re seeing a lot of legislation and industry standards form already; the issue and challenge is the lack of cohesion across states as a major challenge for enterprising multi state operators and brands. In the packaging space, this means disparate regulations, over compliance, what types of products can be sold, and how people can purchase them. We also keep a close eye on changes to the tax code, with packaging being one of the few expenses that cultivators have been able to write off.

How does proper curing and storage impact the overall value of cannabis products from a wholesale purchasing perspective, i.e. when retailers choose what to stock from their manufacturing partners?

The biggest thing that’s happening when you burp your standard mason jar is that you’re not passing the right amount of atmospheric gas mixtures that you need for cannabis. This causes terpenes to become separated from the headspace of the flower and to ultimately evacuate the package. This leads to rapid evaporation and oxidation in the environment. A proper cure and the right storage vessel helps prevent this, and ensures that growers are showing their best to the market, and consumers are getting the best end product.

The rise of multi-state operators and large-scale cultivation has had a major impact on supply chains. How has Grove Bags adapted to serve both small craft growers and large commercial operations?

We manufacture entirely in the United States, so especially for domestic operators, our customer service and shipping experience is unmatched. Our product lineup reflects our accessibility at any scale as well; quarter pound bags are popular with home and cottage growers, but for larger scale cultivators, our ten-pound bags and 55 gallon drum liners can help them optimize much larger harvests.

Margins are tight for legal cannabis producers regardless of scale. How do you communicate the ROI of proper curing and storage to growers who are working with razor-thin budgets?

Maintaining proper moisture content throughout the supply chain is crucial for growers, with 0.1 gram of flower equating to around ~$1 in revenue in some markets. And qualitatively speaking, higher grade flower commands much higher prices. We encourage our clients to analyze the investment in our products with the belief and ability to help them make more money, as our system is an investment, after all, terps pay the bills. Having a storage solution that ensures weight retention is important not only for keeping buyers happy, but for presenting a higher quality product with as much of its VOC profile intact. This can also solidify a brand’s reputation and command a higher price point as their name becomes associated with the highest quality.

What advice would you give to today’s startup cannabis brands looking to optimize their post-harvest process? What would you say are some of the most common mistakes that early-stage brands make? 

A lot of companies build dry rooms that don’t have good airflow, are too small, and either have far too much or too little cooling and moisture control. Most companies don’t have storage rooms that have proper environmental controls either. It’s important to remember that above 65 degrees fahrenheit, the respiration rate of terpenes and VOCs off the plant increases quite dramatically, which if you’re not drying properly and need to do burping/purging/flushing of excess moisture, you’re going to have a lot of qualitative loss during that process. You will also stress the plant more. Inversely, below 45 degrees and you will start to go beyond traditional slowing of digestive processes, but will actually structurally damage the plant by abusing the dew point of the flower given the contraction and expansion of residual bound and unbound water; even at our suggested ideal water activity level of .58-.62, it’s not ideal. Beyond those rooms and environmental considerations, I see a very common flaw which is focusing myopically on one aspect or another of a facility vs. holistic flexibility. Room for expansion is great, but plan for organic healthy growth, focus on production costs not production potential. The cost per pound vs. yield per light consideration is crucial. Also embracing newer technologies such as under-canopy lighting as championed notably by Faven Lighting and @bobby.bagz and mastering mixed light like David Polley and the team at Preferred Gardens is important. You must embrace the fact that it’s a fluid industry with fluid market dynamics.

How do you think a federal adult-use cannabis market in the US might regulate packaging?

I think it will certainly come down to child resistant packaging at point of sale, even if that is one time use and tamper evident child resistant vs. child resistant every time a product is opened and closed. Additionally I think we may see strict labeling requirements holistically, like many states have already, against imagery that may appeal to children. Additionally you may see some legislation around packaging that has an ability to protect water activity levels and other attempts at crony capitalism lobbied for by special interests that cannot win market share based on value and product performance.


Thank you, Jack, for sharing your insights with us today! To learn more about Grove Bags and TerpLoc, visit the Grove Bags website.

End


Top New York City Cannabis Official Resigns

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Dasheeda Dawson, the executive director of Cannabis NYC, announced last week on social media that she was departing the agency. Launched in 2022 under the New York City Department of Small Business Services to help the city’s entrepreneurs secure cannabis licenses and launch their companies, Dawson was the program’s founding director.

In a statement posted to LinkedIn, Dawson — who worked previously as the top cannabis official for Portland, Oregon — said she was “transitioning to the next phase in my career” and that her focus would shift “towards elevating my impact and influence within the cannabis industry on a broader scale, both at state and federal levels.”

“We’ve shared a common goal: to build a new cannabis market that is equitable, accessible, sustainable and safe. Together, we have not only laid the groundwork for a thriving legal industry in New York City, but also, in 2.5 years we implemented groundbreaking and impactful initiatives that have set a new precedent for cannabis policy and practice nationwide.” — Dawson, via LinkedIn

The abrupt resignation, however, attracted mainstream attention to her role in NYC, and the New York Times reported Monday that Dawson’s departure follows a multi-month city investigation into a sexual harassment complaint filed against her.

Dawson denied the allegations, saying in the report that her “decision to resign is unrelated and was not made lightly.”

The complaint, filed by Jamila Washington and Monifa Foluke, claimed Dawson blacklisted the pair’s company after Washington refused a polyamorous relationship proposition. The company in question, Repot Box, is a tech company that encourages better recycling practices in the cannabis industry.

Officials have been investigating the allegations since last June, the report said.

 

End


FBI Denies Delaware Cannabis Background Checks, Potentially Delaying Licenses

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The Federal Bureau of Investigation (FBI) last Friday denied a request by Delaware’s State Bureau of Identification and Department of Justice to conduct the federal background checks for the state’s cannabis licensing process, WBOC reports.

Delaware’s adult-use cannabis program contains a provision requiring mandatory federal background checks for all licensees, but the law is too vague for the FBI. According to a press release from state officials, the agency said Delaware’s legalization policy must “contain language explicitly identifying the categories of persons required to obtain a background check” to avoid “overbreadth,” or the overly broad application of a law or legal process.

It’s not entirely clear how the FBI roadblock will affect the state’s adult-use cannabis industry launch, which was slated for later this spring.

The Delaware Office of the Marijuana Commissioner (OMC) said it is working with state lawmakers to create legislation aligning with the federal requirements, according to the report.

Delaware’s current legislative session is open until June 30, 2025.

Lawmakers passed the state’s cannabis legalization bill in 2023 after then-Gov. John Carney (D) allowed the proposal to become law without his signature.

End


Podcast Featuring Ricky Williams

Highly Enlightened: Ricky Williams, Founder at Highsman

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Ricky Williams won a Heisman Trophy at Texas and rushed for over 10,000 yards in 11 NFL seasons.  He is now the President and Co-Founder of Highsman, a lifestyle brand that Ricky personally curates, from the cannabis to the accessories.  Ricky launched Highsman to provide communities of sports fans and herb enthusiasts everywhere with a platform to own their relationship with cannabis and its ability to unlock true, personal greatness.

In this episode of Highly Enlightened, syndicated by Ganjapreneur, host Jon Purow speaks with Ricky about the principles that have guided his journey — from challenging the stigma around cannabis as an athlete to becoming a founder and advocate within the cannabis industry. Ricky shares hard-earned wisdom on leadership, the deeper meaning of cannabis, the spiritual and practical lessons from his career, and how staying true to his values shaped his personal and professional evolution. This episode is a thoughtful, philosophical conversation that touches on resilience, the power of perspective, and why Ricky believes cannabis is more than just a product — it’s a tool for personal and societal transformation.

Listen to the episode below or wherever you get your podcasts — you can find more episodes of Highly Enlightened on Buzzsprout.


Listen to the episode:


Episode sponsored by eBottles

This episode of Highly Enlightened is made possible by eBottles. If you’re in the cannabis business, you know that quality packaging isn’t just important—it’s essential. That’s where eBottles comes in. Whether you’re just starting out or scaling up, eBottles offers proprietary top-of-the-line packaging products built for cannabis. eBottles is a market leader for a good reason: they are experts in the field. Six patents, five warehouse locations around the country, a network of exceptional distributors. Get eBottles and Grow Boldly.


Read the transcript:

Jon Purow:

Hey there. Welcome to another Canna-Convo episode of my Highly Enlightened podcast. Very excited to have a specific guest today. The podcast is syndicated by Ganjapreneur, and as always, I’m your host, Jon Purow. Now, before we get an awesome interview, I want to note that any opinions I express on my own are not those in my brand new law firm. Herbal Laws LLC, though judging by the name, you could probably guess they probably wouldn’t be that offended before we start. As I always like to do quick prayer to the video chat, gods may, our wifi connections be sturdy, all dogs and children remain quiet and my Amazon Prime another time. Amen. Now I have the pleasure of introducing the one and only Ricky Williams. I forgot. I apologize, Ricky, because one thing I did not neglected to before we started was to clarify what title you wanted to be introduced by. But you know what? I think this is the best first question to start with is how would you introduce yourself in a, how do you try and boil down Ricky Williams to a title?

Ricky Williams:

I don’t. I don’t.

Jon Purow:

Okay, then that’s it. Let’s not give you a title. Let’s pull. Yeah, perfect. Look, you’re someone obviously who, some people are familiar with your experience prior to the cannabis industry, but this is such a new industry that we’re all bringing something from the past into it, and we find something useful in ways that we don’t expect. So what do you think in terms of your life experience that you brought to the cannabis industry has been the most kind of helpful to you and why?

Ricky Williams:

I think getting in trouble and having the opportunity to take a public stand for my cannabis consumption. I think by far, I think because inspiration there, and I think people, if they weren’t around or paying attention to the story in real time with YouTube and the internet, they can track down the story. And young people, old people that have had similar experiences, I can tell they all get a sense of inspiration and that’s extremely helpful in this industry right now.

Jon Purow:

Well, this is what I mean. I think that’s why I was so happy to finally meet you, because I think that you are legitimately a hero in this industry. And to recap, Ricky is being modest and everything, but to recap, really what we’re talking about here is Ricky, during what was on track, we could still say potentially a hall of fame career. You were using marijuana to treat your social anxiety disorder. You were testing positive, and it was called there are repercussions for you. And you took a stand, essentially in favor of the plant and the medicine for you. And so one question that I find fascinating about this is we’re still so nascent in terms of the medical research about this, right? Everyone I know who has, there’s so many people in this industry who are ADHD and use the plant because it’s effectively medicine.

And at some point what I realized was it’s not a function of whether or not there’s a link there that it can treat it as medicine. It’s that we just haven’t discovered it yet. So when you were taking your stand, this was 20 years ago, there was no backup. There was no doctor saying, oh no, he’s pursuing something. That’s an actual treatment. It was just you knowing your truth. Right. So I’m curious to know your decision making, how you took that stand, right? And what helped for yourself that this is something you had to take the stand for.

Ricky Williams:

Yeah, I mean, you mentioned the word hero, and I don’t take that lightly. As a professional football player, I was trying to be a hero. And even in football, the heroes are made in those vitals, those situations where it can go one way or the other where everything is on the line. And did your training prepare you to make the right decision and to come through in that situation? And for me, that came through in cannabis when it became public that I failed, that I failed a drug test. And a couple of moments where I had an opportunity to tell the truth and to tell my story or to lie and to make up something. And based on first and foremost, the most powerful thing, my own experience, based on my own experience, I had no doubt that cannabis was helping me, helping me with what?

That was a big question at the time because we didn’t have the language, but there was no doubt that it was helping me. And I think of the many, many, many thousands, hundreds of thousands of years that we’ve existed without medical research to tell us what was good for us. And somehow we survived. Somehow we survived. So I trusted myself. And the one point of outside data that I get is everyone I asked who was really into cannabis at the time, I asked them the story about when they first started or how they got into it, 90% of them told a story about some kind of physical, emotional, spiritual injury and how it helped him. It was across the board. So from my own personal data and my own personal experience, I had no doubt that I was onto something.

Jon Purow:

And look, and this is the reason why I think that the term hero is appropriate, is that heroes are an ideal. Here’s what I think the connection is. Heroes do things out of principle, and they’ll take a stand and they’ll pay the consequence for it. And they could be a martyr hero. They could be that brave hero who steps up in the moment, like you said, whether it’s an athletic game or when you have that opportunity to, but you had that purity of heart and spirit that you weren’t going to compromise. You could have played the game, like you said, but why you wouldn’t? Do

Ricky Williams:

I know? I don’t know. I don’t think I could have.

I could have. So part of it is I can take credit, but it’s principles and thank God I grew up in a very religious household were principles were very important to me. And so it kind of stuck through. And so when I got to this place where it wasn’t what I expected, because in one sense I did everything I wasn’t supposed to do. When you’re a good athlete or you have a lot of potential, the one thing they told me growing up, it stay away from drugs, you’ll throw it all away from drugs for drugs. And there I was throwing it all away for drugs. So it was a powerful external narrative that was really challenged by internal principles. But again, the benefits that I received from cannabis, I couldn’t deny them. It would be sacrilege to pretend that I wasn’t receiving something helpful and beneficial.

Jon Purow:

Yeah, no, I mean, I just think it’s great. And I think that it’s important to look, there’s stories that need to be told in this industry. We need to tell the stories of the people whose lives were horribly ruined by a bullshit war on drugs. And when there’s an inspirational story like yours, even if there are obviously some of the tough parts of it, I think that that has to be amplified. Right. So I’m happy to talk about it in this context. Now, being in the industry, you are a leader in this industry and you are a unique leader in this industry. So what advice would you give, I don’t know if I’m blurry on your end, but probably look better this way to most people. I got a face for radio. What advice would you give regarding leadership to other leaders in the cannabis space? What have you learned along the way?

Ricky Williams:

We all have a certain gift, and I’d say my gift is to stay true and be clear about what my principles are. And so the only advice I can give is going to be really related to that. And to be clear on what your principles are, I think the biggest issue for a lot of us is we’re not clear on what our principles are. Even if we’re principles, a lot of times we don’t have the awareness of what actually we’re being principled towards, because a lot of it was put into us before we were old enough to make that conscious decision. And I think one of the gifts of cannabis is it opens our minds to be able to even consider asking these kinds of questions of what am I being principled towards? And when I started asking myself those questions, I realized that it was kind of arbitrary. And then underneath the arbitrary, whatever I’ve been taught to be principled to is a choice of what do I feel really connected to and really strongly about that would feel better to me to be principled towards. And so that would be my advice is use the plant. Use the plant to help make you a better leader. And whatever that means to anyone, that’s going to mean something different to every person. But that would be my advice. If you’re going to be a leader in this industry, it’s nice if you’re co-leading with some kind of connection to the plant.

Jon Purow:

Yeah, no, I mean, I agree with that. I mean, we find our truths in the plant and we try and spread those truths or you like the way of phrasing that?

Ricky Williams:

Well, but again, when we talk about the plant, this plant is older than the English language,

Jon Purow:

And our youth have been medically is older than that. I take great pride when they find the stories of, they’re like, Hey, the Jews burn cannabis. And I was like, yes. Right. I knew that we had a connection. It goes back thousands of years. So I appreciate that as well. So I think that that makes a lot of, this is what I appreciate what you’re talking about, right? We’re talking about a story where your principles essentially were the basis of how everything played out. Now you’re saying examine what your principles are, think about what they are at any given time. And frankly, you know what? I think we don’t give ourselves enough time to do anymore, constantly distracted. And our phones are the biggest drugs trying to use our attention for the attention economy is we don’t say to ourselves enough, why are we doing this? And I also just think that principle wise, you know what always comes down to, and this is me honoring my mother’s legacy, I say more than anything is the golden rule. Everything could come down to that. Treat others. You want to be treated. I come up with ways of extensions of that. And I just think that I appreciate when we find people who are of principle, and you proved it personally by taking a stand, those are the people we should value purity of spirit and everything like that. So lemme know, I’m tossing around words like hero and everything, but I’m trying to explain why I respect you in that regard.

Ricky Williams:

Yeah. Well, I think when we know that someone is of principles, because we’ve seen evidence, the value is we know what we’re going to get in a specific area because third areas of my life, I’m not so principled because they’re not important to me, but the things I’m principled about, they’re extremely important to me and it’s going to show up in my behavior, in my acts.

Jon Purow:

The funny thing is, is that when I was thinking about what I thought about you the other day, and what I thought about was why can’t politicians be like that? Why can’t politicians, we get them up there, we put them on a stand, they have to change their mind or not, or they wishy-washy whatever it is. But you would want politicians and leaders with that purity of spirit. You know what I’m saying? So Ricky Williams for Texas governor starting in here, and you’re going to be on the tick with Matthew McConaughey, right? Be, I think that that would be a good match. You guys both appreciate the plant. Okay,

Ricky Williams:

That’s not a bad idea.

Jon Purow:

There you go. You heard it here first. We broke news. So now I wanted to ask you, what are some of the biggest factors in terms of, you have this wonderful brand, Heisman, which of course plays upon the fact that you won the Heisman Trophy, but I love it because it’s a parody spelled Heisman. What are some of the biggest factors in terms of how Heisman has grown over the years it’s been active?

Ricky Williams:

Oh man. Biggest factors. If you have a principle, it’s like a target, but it takes time and effort and overcoming obstacles and figuring things out to make momentum, to make headway in that direction. And so that’s what it’s been, us getting clear on what we want to do. Because when we first started, when you first start anything, it’s a vision. It’s something that exists in the ether and making it real. That’s all the effort. And the tagline of Heisman is spark greatness. And people see it and they laugh. The goal of, to me this brand is people see it and they get it, then they get it. We can talk about the word high and it’s been given a really bad connotation. But if you think deeply, the opposite of high is low. It is low. And I think of my experience when I consume cannabis and what I get out of it most is the ability to see the larger perspective. And if I’m trying to see the larger perspective of a piece of land, the higher I go, I have a greater view of the bigger picture. If I’m down low, all I can see is what’s right in front of me. And in this world, what’s right in front of us is kind of depressing.

No, no. And I think sometimes when it’s depressing, it’s not that we need to escape, but we need to see the bigger picture so we can have some perspective so we can do something to change the things that are depressing us.

Jon Purow:

Yeah, look, I hate it when we have to go to that spot, but the fact of the matter is that there’s a lot of things in this world right now where it seems like we’re behind eight ball. I have a nine and 13-year-old daughter. I mean, to be personal about this, my 9-year-old daughter is anxious about all the stuff going on in the world, keeps her up at night. She’s nine. This is when kids are supposed to be innocent. And she’s already lost her innocence to the horrors of the world that she’s going to inherit. And so that’s why I think that I, I told you about, I think I might’ve told you about this, when I say everything boils down to the golden rule, when I was healing from breaking my back, I came up with this kind of value system or school of thought called alpha truism.

And the idea is compound good. Don’t just do good. When we talk about how we’re going to value good, there’s certain things and Jewish value systems, or if it’s an anonymous gift, then that’s a pure form of giving or whatever, but it’s trying to do good, but compound it. Can you systematize it? Can you replicate it? And so I just want to tell you that when I think about the parade of horribles that there is out there right now, I think that we get the right people together, we get the right mindset, and it’s like instead of being diabolical, it’s like good diabolical. And that’s what I think we could all do together as we seek inspiration and build stuff. So I mean, I think that that’s what you said helped your company grow was your perspective. I think that you have this natural thing where you’re saying we takes you to that place, but it’s that you get that high level view.

Ricky Williams:

Yeah, because in the startup world and in cannabis both, and then when you combine both, it’s like, whoa, people always feel like the sky is falling. And if you’re on the earth, you’re down here and things are falling, that’s what you think the sky is falling. If you’re up here out, it’s just raining a little bit. So keeping everyone on the same page and making sure when the sky feels like it’s falling, that we have perspective and we remember what we are doing, that this is not going to something we’re going to build overnight, that this is a major transition in history and we get to be a part of it. And all we have to do is hold on and stay true to our message, and we will come through on the end. And what I’m saying about things on the ground level being difficult, it’s not a bad thing. It’s the reality of it. And it’s something that comes through in playing football is that every week we have a new opponent that has someone that’s being paid a whole lot of money because they’re really good that we have to make sure we account for or we will lose. So this idea of we have football, we have to come together as a team and do good because it easily translates to do good so that when the opponent comes, we have enough good saved up that we can overcome it and we can be victorious.

Jon Purow:

Yeah. Yeah, a hundred percent.

[Commercial break]

So now I want to ask you are in your time in the industry, and I think that you’ve kind of touched upon some of these points a little bit philosophically so far, but what are a couple of things that the industry has taught you? What are facts that jump out that were surprises to you or just important points that you’ve used as kind of a guide as you proceed?

Ricky Williams:

I’m 47 now, and there is something about this idea of being over the hill, and I won’t say to the extent of I’ve seen everything, but you’ve been on the planet 40 something years and you’ve lived as intensely as I have. It’s not that you don’t see anything new, but everything you see, it reminds you of something else that you’ve already known. It may be to different magnitudes. You get to see it more closely, so you appreciate it more. So it’s not like it’s necessarily anything new, but basically everything I’ve learned in football, it’s just that it applies to real life with a little bit of sensitivity. It is like the first thing is if football is know your opponent, and actually the first thing in football is self scout. Know yourself, know your opponent, come up with a game plan, execute, review, rinse and repeat. That’s the lesson in football, and it applies to cannabis in the industry. But the tricky part is knowing yourself and knowing your opponent, knowing yourself is tricky because most people that have survived this long that understand business, but a lot of people, they don’t necessarily understand cannabis. That’s a huge question, at least in my mind, is a huge question mark, is what is this? What is cannabis? And coming from a bit of a tech background, it’s an emerging technology,

It’s an emerging technology. It’s still a big question mark. And at the same time, we’re trying to do business, but we are not even really clear what exactly we’re selling.

Jon Purow:

Oh, I mean, the fact is that we’re still developing it, right? I mean, this is the thing. We’re still developing it. Our product diversification, we are at the tip of the iceberg. And so when you talk about a product and what are we developing, drugs serve a certain function. And so we don’t even know all the functions that it can serve and the form factors that it can. But we analyze it from a macro level saying, how do we cater to the cane? How do we cater to the can of curious and what are the effects that we’re going for? So right now, when I’m licensing tech, what am I trying to do? Really, I’m trying to license any feeling with any cannabinoid in any type of onset for however long I want to design it. That’s what I’m trying to achieve.

Ricky Williams:

I think the potential of what we learned about this plant, I think it’s going to come down to something you just said about we are selling a feeling.

Jon Purow:

Yeah.

Ricky Williams:

Yeah. And so again, a bigger philosophical question is I think is people get more clarity about the use of feelings, what they can be used for. Because to me, this spills us over into the idea of what is medicine you? What is

Jon Purow:

Medicine? Yeah. I mean, medicine is self manipulation, right? There is a condition of the self, you want to do something about it. You can’t do it necessarily internally, you need an external thing. So who are we supposed to say that there’s a difference in value between a pharmaceutical drug that was produced in the laboratory and a plant that was given to us effectively by God, evolution, whatever you want to believe was behind it. I mean, the fact of the matter is pharmaceutical drugs repurpose things from nature all the time. So the natural order came to value, to values that we’re extracting more value out of natural things. And so if we take in a drug, we’re trying to achieve a certain effect. And what it is, is it’s a form of self manipulation. We’re all trying, if every old life is a video game simulation, we’re trying to get, when we are doing drugs, trying to control the sensation, the environment of all of it.

And I just think that that’s what we’re chasing. Just like I meditate to self manipulate, and I get certain effects from that meditation, but you’re saying we need to rethink what a drug is. Meditation is a drug. I view meditation as a drug. I view that as the best drug I’ve ever done. There’s no negative health effects. And it puts me in the right state of mind, basically similar and can make me feel high if I’m doing breathing exercises. You could have psychedelic effects based on your breathing routines, right? Meditation is a drug. So that’s my responsible from

Ricky Williams:

That. Yeah. I mean, just to throw something kind of funny out there at the right time, a good hug is a drug. I won’t go down that path, but I will go down this path is it is self manipulation, but just in the world of AI where we’re getting a new language and a new way to think about technology and drugs, I was thinking, I’ve been thinking about this a lot. It’s automation. It’s automation of biological functions. Because I used to think when I first started learning about cannabis, it was the same time I was learning about meditation and I realized what I can get to from meditating daily for an hour, for two weeks, two weeks on the right day, I can get to you with a couple of hits. But the difference is the point I get to meditation in two weeks, it lasts longer. There’s an automation, and if we know how to utilize the automation to make ourselves more efficient, oh wow. That’s why I call this an emerging technology. But if we become lazy through the automation, then we create dependencies that aren’t constructive.

Jon Purow:

Yeah, no, exactly right. That’s when a drug becomes an addiction because then the self manipulation, they say the definition of an addiction is when your dependency on something turns negative, overall, the cost benefit doesn’t justify it. And I think that that’s sometimes hard when it’s something that we’re relying upon so much. But the funny thing is that you hit the tolerance conundrum. If I’m microdosing for a DHD right now, I’m taking two puffs, right? After a couple months, I’m taking nine puffs, and then I’m basically smoking all the time. And at what point does that become something that’s counterproductive because I’m walking around smelling a certain way or whatever that my wife and daughter love, just love. But it’s like this is my medicine. So I mean, I got to take care of myself to take care of my family. I think that you could, no, I just love this because I think that this has been a real philosophical examination of we’re reexamining things on a very, very macro level. And I think it’s the things that jump out at you or how many specific facts fit into these macro examinations. Exactly. Yeah, exactly. That was what I would say. So then one question I want to ask you is, and this is a particular great question for you because you care about doing good, is what metrics, how do you judge success as a brand? Fuck, as a person, I’d like to know how do you judge that you’ve done good, that you’ve been successful

Ricky Williams:

On one level, that you’re still in the ring?

Jon Purow:

Yeah. Fighting.

Ricky Williams:

Yes. Because if you think of success relative to evolution, success means that you survived. That’s true. True.

Jon Purow:

That’s true. Preach it. Evolution. It’s just like I keep on fighting. Right? Life is a struggle. So if you’re still struggling,

Ricky Williams:

You’re successful. Yeah.

Jon Purow:

It’s like Spider-Man at the end of the movie, he gets beaten down, beaten down, BD, they always ask, what does a hero at the end gets back up

Ricky Williams:

Alive,

Jon Purow:

Gets back up basically to just keep on taking a beating. We are all Sisyphus shoving a rock up a hill through our entire lives. Right? Okay, I like it.

Ricky Williams:

Well, that’s kind of right. That’s part of the story. But once you get that and you graduate to the next level, then you’re on the other side of it. But you can’t avoid that, right?

Jon Purow:

Yeah,

Ricky Williams:

No, you can’t avoid it. So I say that’s the first definition of success because you don’t get any other success if you don’t survive. And the idea of surviving is in the process of surviving, you figure stuff out, you figure stuff out. And I think that’s the gold, right? Is the stuff you figure out. And eventually you figure out, the ideal is eventually you figure out enough stuff that you can create something of good that persists. Persists. So this question of ultimate success, only time will tell. But to know if you got a shot right, you got to still be in the ring.

Jon Purow:

Yeah, no, but I agree with this, right? Because I mean, ultimately I think that the way that we operate in general, let’s not forget that we are just highly evolved monkeys. And really what there are animalistic parts of us, and there are the parts that the mind has developed, and the mind tries to perpetuate its own value. I mean, we now have ideals that will dictate who we procreate with, that dictate who we consider an enemy. And it’s purely out of the mind, nothing out of the body. And I just think that I completely lost my train of thought because it’s just like, I love that we’ve gotten so philosophical. I’m staring at some of the questions that I still have to ask, and it’s like, what do you think about this part of the industry? And I’m like, I’m not asking that because we’re in completely different level field right now. And it’s just like some of my other interview conversations of God, I’m like this with Socrates, rosenfeld of I, our Jane. And so I just appreciate, look, this is one thing that the plant brings together is this creativity, this openness of spirit, I think. And it gives us strength. It gave you strength to make a stand for it, right?

Ricky Williams:

Yeah, a hundred percent.

Jon Purow:

Yeah. But I think that maybe we wrap it up there just because I think it’s perfect. It was just so pure that I don’t want to touch it after this. So let me ask,

Ricky Williams:

I think there is one way to tie a bow, to tie a bow on this, to bring it down to earth a little bit. Okay? Right? Yes. We definitely went there. Very philosophical conversation. And I’m not saying that every conversation should be like this, but to me, in the industry, if people are really consuming the plan and appreciating the plant, there are going to be more conversations like this that on some level contribute to the direction that the industry is headed.

Jon Purow:

And to try and just add a bow to that is, I feel closest to the people in the industry that I can have a conversation like this with. And then because of that, you’re someone whose energy I appreciate and I say, oh, you know what? Maybe we could do business together. You know what I’m saying? I think that that’s because the plant helps us bond on that level. Good in the industry comes out of it.

Ricky Williams:

Yeah.

Jon Purow:

Alright. Thank you so much for taking the time.

 

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Missouri Transfers More Than $23M in Cannabis Tax Revenue to Veterans, Health Agencies

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The Missouri Department of Health and Senior Services (DHSS) last week transferred more than $23.3 million in funds from adult-use cannabis sales to agencies outlined in the state’s 2022 voter-approved initiative. 

DHSS sent about $11.7 million to the state’s Missouri Veterans Commission, which is used exclusively for health care and other services for military veterans and their dependent families.  

DHSS received the same total – $11,681,984 – for a drug treatment program. The program is an evidence-based, low-barrier drug addiction treatment which prioritizes medically proven treatment and overdose prevention and reversal methods and treatment options. The program focuses on reintegrating recipients into their local communities, to support overdose prevention education, and to support job placement, housing, and counseling for those with substance use disorders.         

Under the constitutional amendment approved by voters, adult-use cannabis sales carry a 6% tax. In November, a state Appeals Court ruled that local governments could no longer “stack” cannabis sales taxes, which had imposed rates as much as 20.988% in some municipalities.  

According to DHSS data, adult-use cannabis sales in the state totaled about $108.2 million in January and $102.5 million in February.  

So far, the Missouri Veterans Commission has received about $49.7 million from cannabis-derived taxes

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California Cannabis Company with $100M+ Annual Revenue Files for Voluntary Receivership

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California-based cannabis company Gold Flora Corporation last week filed for a voluntary receivership, seeking court protection it says is necessary as “a result of obligations from legacy lawsuits that arose out of Gold Flora’s acquisition of TPCO Holding Corp and mounting costs of operations and high-yield debt.”   

In a statement, Gold Flora founder and CEO Laurie Holcomb noted that the company has over $100 million in annual revenues. According to the company’s website, it operates 16 dispensaries throughout the state. 

“We believe Gold Flora’s business remains valuable and sound, but receivership is our only option to sell the business as a going concern as opposed to seeing it broken up by different creditors, which we believe is not in the best interest of any stakeholder. Therefore, after careful consideration of these factors, duties owed to all stakeholders, and in the absence of other available alternatives, the board of directors of the company determined that it was in the best interests of the company and its stakeholders to proceed with the commencement of the receivership proceedings.” — Holcomb in a press release 

Holcomb said the receivership will help the company “achieve an orderly sale of the business.”  

As a result of the filing, Gold Flora expects its common stock and warrants will be suspended from trading on the Cboe Canada exchange and that the company will ultimately be delisted from Cboe Canada. 

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Michigan Cannabis Company Loses License, Owners Barred from Industry

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A Hazel Park, Michigan-based cannabis processor has had its license revoked and its owners barred from any future involvement in the state’s cannabis industry. The state Cannabis Regulatory Agency (RCA) last week reached the agreement with Flavor Galaxy, and its owners, following two formal complaints filed last year by the CRA related to untagged products, missing and inaccurate inventory records, misleading labeling, and failures in safety testing and packaging. 

Under the consent order, Flavor Galaxy’s license “will not be renewed, reinstated, reissued, or reactivated,” and the company’s owners – Hanna and Jaklin Shina – are prohibited from applying for new licenses, working in the industry, or holding any ownership stake in a licensed cannabis business in Michigan.  

The owners are also listed as the sole supplemental applicants for another cannabis business which regulators say they will “administratively close this license before the date it expires” which will prevent the Shinas “from applying for or otherwise seeking renewal, reinstatement, reissuance, or reactivation, limited or otherwise, at any future date of this license.” 

To date, Michigan has entered into similar consent orders with six cannabis businesses, and 11 individuals, and one holding company. No entity or company has been involuntarily excluded under state law.  

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Trump Admin Derides D.C. Cannabis Decriminalization Policy

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President Donald Trump’s (R) White House suggested in a recent document that Washington D.C.’s voter-approved cannabis decriminalization policy had led to “disorder” in the nation’s capital city.

The fact sheet, first reported by Marijuana Moment, was released accompanying an executive order from President Trump covering the beautification of the nation’s capital city.

“D.C.’s failed policies opened the door to disorder — and criminals noticed,” the White House noted in the document, then listed several policies, including cannabis decriminalization and the abandonment of pre-trial detention practices, as examples. The executive order itself does not mention cannabis outright, but refers to “deploying a more robust Federal law enforcement presence and coordinating with local law enforcement to facilitate … a more robust local law enforcement presence” in the District, highlighting “drug possession, sale, and use,” among other concerns.

The president said during last year’s election that he supported federally rescheduling cannabis — a process that was initiated by the Biden Administration — and that he would vote yes on Florida’s ballot question last year to legalize adult-use cannabis, which ultimately failed to pass. The president, who failed to enact or pursue any significant cannabis reforms during his first four-year term, has not otherwise addressed the issue since re-taking office.

The president’s nominee to head the DEA, Terry Cole, is a 22-year veteran of the agency.

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