Explosion at PharmaCann Extraction Facility in Maryland Injures 2; Cause Still Under Investigation

1/27/2025

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Two workers were injured during an explosion and fire last week at a PharmaCann facility in Stevensville, Maryland. The accident occurred at an extraction booth where propane and butane are used. 

Sprinklers contained the damages, the Office of the State Fire Marshal said in a press release, adding that one person’s injuries were severe but not life-threatening. Four nearby properties were evacuated and temporarily closed due to damage to the PharmaCann building and fire sprinkler system, the Fire Marshal’s Office said. The cause of the explosion is still under investigation. In a Facebook post, the Kent Island Volunteer Fire Department said the explosion and subsequent fire resulted while employees were “conducting the extraction.” 

Investigators credited emergency response systems, including alarms and ventilation which functioned as designed, for minimizing damage and injuries. Shore News Beacon, in an update posted to Facebook, noted that the first crew on the scene noticed no “evident” damage on the exterior of the building but described “heavy damage” inside. 

The Office of the Fire Marshal estimates that damages exceed $250,000 but the exact cost has not yet been determined.  

PharmaCann has been operating at the facility for four years, according to its website.

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Massachusetts Cannabis Industry Sets $1.64B Annual Sales Record In 2024

1/27/2025

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The Massachusetts cannabis industry set a new annual sales record in 2024 of $1.64 billion, according to sales data from the state’s seed-to-sale tracker Metrc cited by the Cannabis Control Commission (CCC).

The annual sales record was propelled by three record-setting months of sales with July ($142.8 million) setting the new monthly sales record in the summer, which was surpassed in August ($147 million) ahead of Labor Day weekend. Additionally, December 2024 “narrowly eclipsed” December 2023 as the industry’s third-highest sales month on record, the agency said.

“The cannabis industry in Massachusetts continued to mature in 2024 as the Commission approved the 700th—and counting—notice to commence operations. The clear growth of the industry is the result of ongoing collaboration between Commissioners and agency staff, business owners, host communities, an engaged consumer base, and the medical community. We’re looking ahead to continued growth in 2025 and beyond as we seek to expand the industry with new social consumption licenses.” — CCC Acting Chair Bruce Stebbins, in a statement

Meanwhile, the CCC reported last month that state-licensed retailers have surpassed $7 billion in total sales since the adult-use cannabis industry launched in 2018.

The CCC also released for the first time county-specific data on gross adult-use and medical cannabis sales totals, noting that adult-use and medical cannabis retailers in Worcester County — currently tied with Middlesex County in hosting the most cannabis industry licensees, 86 as of January 2025 — have generated a combined $1.4 billion in sales since 2018.

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Virginia Senate Committee Advances Bill to Fund Psychedelic Studies for Veterans’ Mental Health

1/27/2025

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Lawmakers in the Virginia Senate Education and Health Committee last week advanced a bill to fund clinical trials investigating the benefits of federally recognized “breakthrough therapies” for veterans’ mental health-related issues, which include psychedelic substances like psilocybin and MDMA, Marijuana Moment reports.

Introduced by state Sen. Ghazala F. Hashmi (D), SB 1101, or the Breakthrough Therapies for Veteran Suicide Prevention Act, does not name psychedelics specifically. Instead, the legislation carves out funding to study “breakthrough therapies” as designated by the federal Food and Drug Administration (FDA), which has previously designated MDMA and psilocybin as breakthrough therapies for PTSD and depression, respectively. Those designations were assigned after studies found the Schedule I substances showed significant potential against otherwise treatment-resistant conditions, but federal law — which considers Schedule I substances to be void of medicinal benefits — hampered further research.

“What we are hoping to do with this legislation is to establish a dedicated fund for breakthrough therapies for veteran suicide prevention that would support clinical trials, patient access, as well as training for healthcare professionals.” — Hashmi, to members of the Senate Committee on Education and Health’s Subcommittee on Health, via Marijuana Moment

During the federal lame-duck legislation session last year,  U.S. Sens. Cory Booker (D-NJ) and Rand Paul (R-KY) introduced a bipartisan proposal seeking to reschedule psychedelic substances with a “breakthrough therapy” designation from the FDA.

 

 

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Aurora Launches Germany-Based Medical Cannabis Brand

1/24/2025

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Canada-based Aurora Cannabis Inc., an international and publicly traded cannabis company, announced this week the January 27 launch of the company’s first line of German-domestic medical cannabis products. Manufactured in Leuna, Germany, products from Aurora’s IndiMed brand will be the company’s first to use cannabis produced in Germany.

“Aurora is proud to deliver to the rapidly growing German market our first domestically produced medical cannabis product – a significant step forward since Germany’s move to decriminalize cannabis earlier this year. As one of three facilities licensed to cultivate in Germany, we are uniquely positioned to offer domestic product from our EU-GMP facility in Leuna, Germany, which operates within Aurora’s global manufacturing network. It is through our expertise in cultivation and deep commitment to science and innovation that we introduce IndiMed to the German patients.” — Michael Simon, Interim President of Aurora Europe, in a press release

IndiMed is not the first medical cannabis brand tied to an international, Canada-based firm to launch in Germany, however — last November, Aphria RX, a subsidiary of Tilray Brands, launched its first commercial medical cannabis products grown in a facility in Neumünster, Germany, MJBizDaily reported.

Meanwhile, Germany enacted last year the European Union’s most recent round of significant cannabis reforms, legalizing the use and possession of cannabis by adults aged 18 and older. Additionally, a poll last month found that 59% of German citizens support fully legalizing and regulating the plant.

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Nebraska Bills Aim to Help Implement Voter-Approved Medical Cannabis Program

1/24/2025

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Nebraska lawmakers this week proposed bills containing regulations to help implement and operate the state’s new medical cannabis program, which was approved last year by voters, the Nebraska Examiner reports.

Three state senate proposals seek to expedite the program. Without legislative action, the Nebraska Medical Cannabis Commission is tasked under the voter-approved ballot initiative to create regulations for licensing medical cannabis establishments by July 1, and the state could award cannabis industry licenses by October 1, the report said.

The three bills — introduced separately by state Sens. Danielle Conrad (D), Ben Hansen (R), and Terrell McKinney (D) — seek to let Nebraskans with a doctor’s recommendation apply for a medical cannabis registry card, although they differ slightly in their regulatory approach. Each of the three bills, however, would delay the state’s medical cannabis business licensing period until January 1, 2026.

“I think we’re in a little bit of a unique position, where a lot of other states have already gone this direction. We have the ability to see what has worked well for others and what hasn’t.” — Sen. Hansen, via the Examiner

Meanwhile, a fourth proposal by state Sen. Jared Storm (R) would set a 300-milligram THC cap on medical cannabis products, the report said, and would limit the “permissible” forms of cannabis in the state to just pills or tinctures, directly contradicting the ballot initiative approved by 71% of voters last month.

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Former Verano Executive Charged with Securities Fraud for Alleged Insider Trading

1/22/2025

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A former executive vice president at Chicago-based cannabis company Verano was indicted in federal court for insider trading, the Justice Department announced on Tuesday. Anthony Marsico, 39, is alleged to have used non-public information about Verano’s agreement to purchase a competing cannabis firm to purchase more than 900,000 shares of the rival company’s stock and sharing the information with a friend, who in turn shared the information with two others. 

Arthur Pizzello, 61, Robert Quattrocchi, 63, and Timothy Carey, 57, are also named in the indictment, which describes the defendants as “social friends” who played golf together at a private country club.  

Marsico is accused in the indictment of illegally profiting from the scheme in excess of $607,000. Marsico is accused of tipping off Pizzello about the non-public takeover deal, who in turn shared the information with Quattrocchi and Carey. According to the indictment, the charges concern a deal between Verano and an unnamed company from January 2022.  

The indictment was returned Thursday in U.S. District Court in Chicago and charges all four with conspiracy to commit securities fraud. Marsico is also charged with six individual counts of securities fraud. Arraignments in federal court in Chicago have not yet been scheduled. 

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Class Action Lawsuit Attorneys Investigating Stiiizy Data Breach

1/22/2025

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Class action attorneys are investigating the data breach that affected cannabis brand Stiiizy and impacted customer data from four of the company’s dispensaries. Console Associates, P.C. indicated they are “investigating the data breach that was reported after the company discovered unauthorized access to sensitive consumer information.”

“STIIIZY reported a data breach after identifying unauthorized access to consumer data in their systems. While the exact nature of the incident remains under investigation, the breach could have resulted from either a direct compromise of STIIIZY’s network or a security incident affecting one of their third-party vendors.” — Console Associates, P.C., update, 1/15/25

Stiiizy filed the Notice of Data Breach with the California Office of the Attorney General on January 8, noting that they were notified of an initial ransomware attack on November 20, 2024. According to Cybernews’ ‘Ransomlooker’ tool, the brand was compromised by ransomware Everest in November and December of last year.

The law firm said Stiiizy also filed breach notices with the Texas Attorney General and the Attorney General of Maine on December 23, 2024 and January 8, 2025, respectively.

The impacted information includes customer names, addresses, birth dates, driver’s license and passport ID numbers, photographs, signatures that appear on government-issued IDs, medical cannabis card information, and transaction histories. According to cybersecurity firm Halcyon AI, the personal information of more than 420,000 Stiiizy customers was breached in the ransomware attack.

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Four Minnesota Shops Fined for Illegal Cannabis Sales

1/22/2025

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Four Minnesota businesses were fined $10,000 each in civil penalties last year related to illegal cannabis. According to a 2025 state Office of Cannabis Management (OCM) report to the state legislature, the agency found more than 199 pounds of illicit cannabis flower at 134 sites from January to October of 2024. 

Adult-use cannabis is legal in Minnesota but permitted sales have yet to commence. 

“Additional challenges encountered by the office related to the illicit cannabis market include: the practice of businesses ‘gifting’ cannabis along with other purchases, online cannabis sales and mobile cannabis delivery services, peddler stands selling product at family friendly events like the Minnesota State Fair, and other large public cannabis events.” — OCM report 

OCM said around $607,000 worth of flower was voluntarily destroyed by businesses upon inspection. The report adds that “Given the illicit nature of illegal sales of cannabis, the size of such a market is not able to be determined with complete accuracy or consistency.”  

OCM notes that it is preparing to issue adult-use cannabis licenses “in the coming months”; however, the agency is in flux. Earlier this month the director, Charline Briner, resigned and General Counsel Eric Taubel was tabbed to serve as the agency’s interim director. The agency also abandoned its social equity licensing plan amid lawsuits, opting instead for general licensing.

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Kentucky Cannabis Proposals Set Sights on Adult-Use Legalization

1/22/2025

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Kentucky Democrats in the state House and Senate are looking to adopt adult-use cannabis reforms with the introduction of two similar proposals, Senate Bill 36 and House Bill 105, which seek to put the legalization question to voters on the next general election ballot in 2026, the Louisville Courier-Journal reports.

If approved by voters, the ballot initiative would legalize the use and possession of up to one ounce of cannabis and establish a regulated marketplace for cannabis products. Additionally, cannabis homegrows of up to five plants would be allowed for personal use. The bills were filed during the first week of the state’s legislative session, shortly after the legalization of medical cannabis took effect in the state on January 1.

The bill’s sponsor, state Sen. David Yates (D), supports legalizing adult-use cannabis as he believes regulation would be safer and would provide more public benefits from a tax perspective. However, he sees the ballot initiative as something that could be more palatable for some of their fellow lawmakers.

“It also gives some of those politicians cover if they need it. They get to say that they’re not going to make a decision on [the bills], but they’re going to let their constituents vote, and I think that may be a faster way to be able to move forward.” — Yates, via the Courier-Journal

Last November, Kentucky voters in over 100 cities and counties considered ballot initiatives to allow local medical cannabis operations. In each case, voters passed the initiatives with overwhelming support.

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Missouri Officials Update Cannabis Industry Rules to Address Middlemen Concerns

1/22/2025

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New cannabis industry regulations proposed by the Missouri Department of Health and Senior Service’s Division of Cannabis Enforcement would require the registered designated contact for all the state’s cannabis microbusiness licenses to be the owner or partial owner of the company, the Missouri Independent reports.

Under the state rules, each microbusiness operator assigns a person to be their designated contact with the state. The proposed rulechange aims to prevent “predatory” middleman business practices, according to the agency, where a person registered as the designated contact for a cannabis licensee can intercept official communications, keeping the operator in the dark about some business and licensing dealings.

“These revisions are intended to ensure microbusiness licenses are issued to eligible individuals… and to address the trend of predatory arrangements in microbusiness licensing. Specifically, these draft rule revisions should mitigate the ongoing efforts of ineligible entities to acquire licenses by taking advantage of eligible individuals.” — Division of Cannabis Enforcement statement, in a press release

The designated contact role was originally designed to improve communication between industry operators and officials.

Notably, many individuals are currently registered as the designated contact for multiple cannabis entities, including one Missouri consultant who appeared on 329 social equity license applications last year and a Michigan-based attorney who was listed on another 94, the report said. Of the designated contacts registered with the state, 68 have appeared on multiple applications, accounting for nearly three-quarters (74%) of the total applications received in April.

 

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Virginia Cannabis Sales Bill Passes Senate Committee

1/20/2025

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A bill to create a legal framework for adult-use retail cannabis sales in Virginia passed through the Senate Rehabilitation and Social Services committee last week, Cardinal News reports. The proposal was referred to the House Finance and Appropriations Committee. 

The measure would allow the state Cannabis Control Authority (CCA) to begin issuing adult-use cannabis licenses on September 1, but would not permit legal sales to commence until May 1, 2026.  

Sen. Aaron Rouse (D) Virginia Beach, during a presentation of the bill, told the Senate panel that the legislation “prioritizes public safety in creating a well-regulated marketplace that keeps adult products out of the hands of kids.”  

“The safety and security of all Virginians is a top priority of this legislative body and in recent years we have seen an unchecked proliferation of illegal and unregulated marijuana stores. This has put Virginians at risk.” — Rouse via Cardinal News 

Virginia lawmakers passed adult-use reforms in 2021, during the administration of Democratic Gov. Ralph Northam; however Republican Glenn Youngkin was elected in 2022 and has vowed to not allow legal sales to progress during his time in office. Republicans in the House of Delegates have also pushed back on allowing legal sales, blocking legislation to create a retail licensing framework in 2022 and 2023. 

Youngkin vetoed a similar bill last year and the Senate sustained the action.  

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Toronto Officials to Stop Crackdowns on Illegal Cannabis Shops in the City

1/20/2025

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Officials in Toronto, Ontario, Canada will stop cracking down on illegal cannabis shops in the city due to budgetary and safety concerns, CBC reports. During a council budget committee last week, Carleton Grant, the city’s executive director of municipal licensing and standards, said shutting down the shops should be the responsibility of law enforcement. 

“We’ve made efforts over the last five to six years to close them down, to put up concrete blocks that are only to be removed within 24 hours. We have boarded up buildings. We have been countersued for locking a tenant into a business. We have used every tool available to us.” — Grant via CBC  

The city received C$8.97 million in 2018 from the Ontario Cannabis Legalization Implementation Fund to help municipalities with local costs associated with adult-use cannabis legalization, including enforcement, but the funding ran out by the end of 2024, Grant said.  

Grant added that the municipal bylaw enforcement officers who investigated and shut down the shops “do not have arrest powers and are not permitted or trained to use force while carrying out enforcement activities,” which “makes the enforcement of unlicensed cannabis dispensaries challenging and presents health and safety risks to officers.” 

Keesha Seaton, spokesperson for the Ontario Ministry of the Attorney General, told CBC that the province “will continue to ensure there is integrity in the regulated market by working with all partners” but did not specify who the agency would work with in Toronto. Last year, the provincial government announced it would provide C$31 million over three years to support cannabis enforcement efforts. The funds will enable the Provincial Joint Forces Cannabis Enforcement Team to respond to illegal cannabis production, sale, and distribution.

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Two Cannabis Industry Associations Merge to Create ‘Singular’ Industry Voice

1/20/2025

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The two largest cannabis industry groups in the U.S. – the National Cannabis Roundtable (NCR) and US Cannabis Council (USCC) – last week announced they are combining the organizations to form the United States Cannabis Roundtable (USCR). The group said the combination will establish “a singular voice” representing in the industry to the 119th Congress and the administration of President Donald Trump (R). 

In a statement, Charlie Bachtell, CEO of Cresco Labs and chairperson of both NCR and USCC, called the newly elected Congress and the new presidential administration “a pivotal time for the regulated cannabis industry” noting that Trump “has publicly supported and pledged to advance commonsense cannabis reform.”    

“As the chairman of both groups, I have seen first-hand the incredible talent of each organization and know that the combined group will be the unified authority advocating on behalf of the legal cannabis industry and a resource on all things cannabis for members of the Trump Administration and Congress.” — Bachtell in a press release 

During the campaign Trump endorsed a states’ rights legislative approach to cannabis, reclassifying cannabis from Schedule I to Schedule III under the federal Controlled Substances Act (CSA), and the SAFE Banking Act, which the USCR described as priorities. 

Former President Joe Biden (D) had directed the Justice Department to reschedule cannabis from Schedule I to Schedule III; however, the policy reforms were not finalized before the end of his term. A recent court hearing on the matter was canceled by Drug Enforcement Administration (DEA) Administrative Law Judge John Mulrooney due to a legal challenge from advocacy groups Hemp for Victory and Village Farms International, Inc. who claimed the DEA’s opposition to rescheduling cannabis under the CSA makes the agency unfit to lead the rescheduling hearing and asked the judge to remove the DEA from the proceedings.   

Kim Rivers, CEO of Trulieve and vice chair of NCR, said Trump’s “endorsement represents a sea change in cannabis policy and advocacy.” 

“For the first time in history, a Republican president endorsed these initiatives,” Rivers said in a statement, “and our new combined organization will best position the industry to help the President get them over the finish line.”  

The USCR will combine the political activities, lobbying efforts, and public-facing communications of the NCR and USCC and represent operators across 38 states and a substantial number of the 13,000 retail locations and nearly 450,000 full-time employees working in state-licensed cannabis industries.

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Indiana Proposal Would Legalize Adult-Use Cannabis

1/17/2025

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Several Republican lawmakers in the Indiana House of Representatives have introduced a proposal to legalize adult-use cannabis, FOX 59 reports.

Authored by state Rep. Heath VanNatter (R), the proposal would legalize cannabis possession and consumption by adults aged 21+ and establish a taxed-and-regulated system for the production and retail of cannabis. The program would include a 10% excise tax on cannabis sales

”It’s time for Indiana to join our neighbors and most of the rest of the country in legalizing marijuana,” VanNatter said.

“This unique approach of moving directly to a regulated, adult-use market allows us to engage law enforcement early in the policy-making process to address issues comprehensibly, pragmatically, rather than piecemeal.” — VanNatter, in a statement

The proposal’s future is unclear as its survival in the House is far from guaranteed, and it may face an even tougher battle in the Senate where lawmakers like state Sen. Liz Brown (R) are more favorable to decriminalization language, suggesting that adult-use legalization would be a step too far, the report said.

If approved, however, Indiana would be the first state to jump from cannabis prohibition straight to an adult-use program (there are currently no exceptions for medical use under state law).

Meanwhile, a poll published last November found that a 70% supermajority of Indiana voters support adult-use cannabis legalization. Additionally, Indiana’s neighboring states of Illinois, Michigan, and Ohio have adult-use cannabis programs in effect, while Kentucky has legalized medical cannabis.

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Florida Advocates Launch 2026 Cannabis Legalization Campaign

1/17/2025

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Advocates with the Smart & Safe Florida campaign have launched a new cannabis legalization initiative that aims to appear before voters in 2026, CBS reports. The new campaign comes just a few months after the Amendment 3 legalization campaign failed last November with only about 57% voter support (constitutional amendments in Florida require a 60% supermajority of voter support to pass).

The new ballot initiative is a revamped version of last year’s proposal but advocates have taken steps to address some of the concerns highlighted by critics of Amendment 3, including new language that specifies “smoking and vaping of marijuana in any public place is prohibited” and new rules against cannabis advertising and packaging that could be considered “attractive to children.” Additionally, like the previous proposal, the new initiative would allow the state’s current medical cannabis operators to begin servicing Florida’s adult-use market. However, the initiative would also require lawmakers to “adopt legislation for the licensure and regulation” of other adult-use operators, the report said.

The new initiative would also exempt new operators from state rules requiring the cannabis industry to be vertically integrated, which would enable wholesale operations and other specialist roles for the industry.

Last year’s cannabis reforms effort in Florida was the most expensive legalization campaign ever — advocates raised over $152 million, more than 94% of which was contributed by Trulieve, the state’s largest medical cannabis operator.

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New York Supreme Court Judge Rules Warrantless Raids on Unlicensed Cannabis Sellers Illegal

1/15/2025

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A New York Supreme Court Judge on Monday ruled that warrantless raids on unlicensed cannabis shops by the New York City Sheriff’s Office and Office of Cannabis Management (OCM) must cease and that violation notices affixed to the shops by OCM and law enforcement must be removed.

Plaintiffs in the case include Super Smoke n Save LLC, in Saratoga Springs; Two Strains Cannabis Co. LLC, in Queensbury; Brecken Gold Athletics NYC LLC, in Manhattan; and Breckenridge Café NYC LLC, and 7 Leaf Clover, both in Brooklyn.

In the Decision and Order, Justice Thomas Marcelle said the agency and law enforcement officials carrying out the raids acted outside their authority and that inspections of businesses suspected of selling cannabis without a license can be conducted by “only OCM.” Marcelle noted that “OCM inspectors are trained on the statutory, scientific, and administrative distinction between hemp and marijuana” while “sheriff deputies are not.”

“In sum, how respondents conducted their enforcement activities against petitioners was a far cry from an administrative inspective seeking to cull evidence of regulatory violations. The court often hears cases, like those from agriculture and markets, involving state inspectors inspecting businesses – there, regulators come armed with clipboards, forms and pens, and not guns, bulletproof vests and handcuffs.” — Marcelle in the Decision and Order, 1/13/25

Marcelle also wrote that the decision by the Sheriff’s Office to destroy product upon seizing was shocking, noting that OCM never performed testing to confirm the products were unlawful cannabis products and not hemp-derived, and therefore legal under state and federal law.

“This willful ignorance as to the nature of the products exposes a search that is not administrative in nature,” Marcelle wrote.

The judge ruled the sheriff’s raids violated the businesses’ Fourth Amendment Rights.

“The Supreme Court has told governments that seek to conduct warrantless searches that they must place statutory limits on the administrative agents who seek out contraband without a warrant – this has not been done,” Marcelle wrote in the order. “The court, therefore, believes it highly probable that petitioners will succeed on the merits of their claim that OCM violated their rights secured by the Fourth Amendment.”

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Arkansas Gov. Plans to Use Medical Cannabis Tax Revenues to Fund Free School Meals

1/15/2025

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During her State of the State address on Tuesday, Arkansas Gov. Sarah Huckabee Sanders (R) said she plans to use tax revenues from medical cannabis to provide free meals in schools throughout the state.   

“I’ve already announced that Arkansas will participate in summer EBT this year. And today, I’m announcing my plan to use medical marijuana money to make both this program and our free lunch and breakfast programs financially sustainable for years to come.” — Huckabee Sanders during State of the State, 1/14/25 

According to state Department of Finance and Administration (DFA) data, medical cannabis sales in Arkansas totaled $250 million through November 2024 and the two state taxes on medical cannabis sales generated $28.5 million in 2024, DFA spokesperson Scott Hardin told KATV.   

Sanders suggested also using medical cannabis tax revenues for the summer EBT program in an effort to end the state grocery tax, which she referred to as the state’s “most regressive.” 

There are over 109,000 medical cannabis patient cards issued in Arkansas. Voters approved the medical cannabis law in November 2016. Medical cannabis sales carry a 6.5% sales tax which is currently used for public school funding and efforts to combat food insecurity in the state. 

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Workers at Four Nevada Cannabis Businesses Ratify First Union Contract

1/15/2025

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Workers at three Ayr Wellness dispensaries and a delivery depot in Nevada last week ratified their first union contract. The dispensary and delivery workers are unionized with the United Food and Commercial Workers (UFCW) Local 711. 

Included in the contract are the implementation of armed security at dispensaries, improved access to affordable health care, and better scheduling opportunities.   

In a statement, Chase Payne, an Ayr Wellness budtender from the Las Vegas Eastern Ave. Location, said the “contract represents more than just words on paper; it’s a testament to our resilience, unity, and unwavering commitment to the cannabis industry.” 

“We fought for fair wages, safe conditions, and respect – not just for ourselves, but for everyone who will come after us. This victory proves that when we stand together, we are unstoppable.” — Payne in a press release 

Steve Shehata, an Ayr Wellness budtender from the Las Vegas Decatur Blvd. Location, added that the workers are “laying the foundation for more growth and opportunity within our industry and ensuring that we have livable wages, affordable health care, and an all around sound quality of life.” 

UFCW has emerged as the largest cannabis industry union in the U.S. According to its website, it has amassed 418 organizing wins since 2020 with 290 dispensaries and 36 cultivation facilities organized with the union.     

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Former High Times Chairman to Plead Guilty to Fraud Scheme

1/15/2025

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Adam Levin, founder and chairman of Hightimes Holding Corp.—the parent company of High Times magazine—has agreed to plead guilty to conspiracy charges involving undisclosed payments to a stock analyst. According to the U.S. Department of Justice, Levin participated in a scheme to pay over $150,000 to an investment newsletter analyst who promoted Hightimes’ stock without disclosing the compensation.

The plea agreement, filed on December 20, 2024, outlines that these undisclosed payments were intended to boost investor interest in Hightimes’ securities offering. The analyst’s promotions, lacking transparency about the financial arrangement, contributed to Hightimes raising at least $6 million from investors.

Levin is scheduled to appear in United States District Court in Los Angeles on January 17, 2025, to formally enter his guilty plea. The charge of conspiracy to tout securities for undisclosed compensation carries a statutory maximum sentence of five years in federal prison.

Levin’s guilty plea adds to a series of challenges faced by Hightimes Holding Corp. in recent years, including accusations of fraud, CEO resignations, and an eventual collapse of the business — culminating last year, when the company entered receivership after failing to meet its financial obligations.

Hightimes Holding Corp. acquired High Times magazine in 2017. The acquisition was part of a $70 million deal by a group of investors led by Adam Levin, the founder of Oreva Capital. The purchase included the magazine, its intellectual property, and its events business, such as the Cannabis Cup. According to public statements at the time, the acquisition aimed to transform High Times into a broader media, lifestyle, and events company while capitalizing on the growing cannabis industry’s potential.

In 2018, Hightimes Holding Corp. initiated a Regulation A (Reg A) public offering, allowing non-institutional investors to purchase shares directly. This fundraising strategy aimed to generate up to $50 million to support the company’s expansion plans, including acquisitions and a potential public listing. However, by June 2019, the company had raised only $15 million, falling short of its goal. Additionally, in July 2020, the U.S. Securities and Exchange Commission ordered a halt to the High Times IPO after the company missed its annual report deadline.

During this period, Hightimes Holding Corp. aggressively pursued several acquisitions. In September 2018, the company acquired a handful of cannabis industry publications, including Seattle-based cannabis journal DOPE Magazine (not to be confused with the art publication by the same name), aiming to expand its reach within the cannabis culture and lifestyle sector. However, by October 2019, High Times laid off the majority of DOPE Magazine’s editorial team in Seattle and consolidated operations to its Los Angeles headquarters until the publication stopped posting altogether in 2021.

Hightimes Holding Corp. has not issued a public statement regarding Levin’s plea agreement at this time. The investigation was conducted by the Federal Bureau of Investigation and the U.S. Securities and Exchange Commission. For more information, refer to the official press release from the U.S. Department of Justice.

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Judge Cancels Cannabis Rescheduling Hearing Amidst Legal Challenges

1/15/2025

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The hearing for expert testimony on moving cannabis from Schedule I to Schedule III under federal law was canceled this week by DEA Administrative Law Judge John Mulrooney, who was set to oversee the hearing, on account of a recent legal challenge, Marijuana Moment reports.

The challenge — filed earlier this month by the advocacy group Hemp for Victory and Village Farms International, Inc. — claimed the DEA’s opposition to rescheduling cannabis under the federal Controlled Substances Act (CSA) makes the agency unfit to lead the rescheduling hearing and asks the judge to remove the DEA from the proceedings. The groups also described inappropriate communications between anti-rescheduling proponents and DEA officials, which Mulrooney called a “disturbing and embarrassing revelation.”

The judge, however, said the communications don’t disqualify the agency from its role in the hearing as the main “proponent” for rescheduling — a fact that the actual rescheduling proponents also highlighted as concerning — but he granted the groups’ request for leave to file an interlocutory appeal, the report said.

The hearing, which was scheduled to take place on January 21, will be delayed at least another three months. It’s also possible the hearing could be canceled indefinitely as the incoming administration’s priorities are unclear in regard to federal cannabis policy.

President Biden first initiated the review process for rescheduling cannabis in 2022.

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Portland Dispensary Facing Lawsuit After Customer Experiences ‘THC Overdose’

1/15/2025

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A man is suing the Portland, Oregon cannabis dispensary Arcanna for $10,000 after he says he was recommended an excessively potent cannabis product that landed him in the emergency room, The Oregonian reports.

The plaintiff in the suit Skye Fitzgerald claims that an employee of the shop, despite being informed that Fitzgerald was a novice consumer, recommended that he purchase an excessively potent THC syrup. When Fitzgerald got home, per the employee’s advice, he followed the directions on the bottle and consumed about a teaspoon of the syrup, or about 40 milligrams of THC, according to the suit.

He ultimately went to the emergency room for symptoms including “muscle spasms, psychomotor agitation, elevated heart rate, extreme discomfort, shortness of breath, nausea, vomiting, hypokalemia, and muscular paresis,” and the doctors there “diagnosed him with THC overdose,” the lawsuit says.

The shop’s managing director Kris Snider said in the report that because the product purchased by Fitzgerald had been approved by the OLCC, Arcanna couldn’t be held at fault for Fitzgerald’s bad experience. Additionally, he said budtenders have no way of knowing customers’ tolerance levels and that the budtender who serviced Fitzgerald had recommended only taking “a few drops” of the syrup.

“At the end of the day, it’s like going to a bar and asking the bartender ‘How much alcohol is going to get me drunk?’ You don’t hear of anybody suing the bar because somebody got drunk.” — Snider, via The Oregonian

Notably, Oregon state law requires cannabis edibles to carry a maximum serving size of 10 mg but the rules don’t explicitly address serving size limits for cannabis tinctures, concentrates, or extracts, which the syrup product could have fallen under.

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Unique Preroll Trends

Trends in Cannabis and Hemp Prerolls: Premium Options and Custom Formulas

1/14/2025

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The preroll market has grown rapidly as consumers are constantly looking for fresh and new ways to experience smokeable cannabis and hemp products without sacrificing quality and convenience. Evolving preferences are reshaping the market—from infused varieties to customizable prerolls—delivering premium quality smokables with unique formulas that excite consumers.

Whether you’re a retailer, wholesaler, or a brand looking to expand their product line, these unique designs provide a diverse set of in-demand options to an ever-growing market.

Premium Prerolls: Elevating the Experience

Prerolls remain one of the most dominant smokable product categories on the market. While many consumers still prefer the classic preroll experience, others are eager to explore more exotic options. Today’s premium prerolls combine flavor, potency, and appearance to create a sensory experience that captivates consumers.

Infused and coated prerolls, such as Moonrock, Diamond, and Snow prerolls, are growing in popularity due to their potency, unique smoking experience, and visual appeal. These premium prerolls cater to a wide range of preferences, from seasoned smokers to new hemp tokers.

A Range of Styles and Potencies

In a saturated market, companies must find ways to stand out while meeting the ever-changing demands of consumers. Visually striking and potent preroll options have emerged as leaders in this trend, offering something for every type of customer. Here are some of the top preroll designs shaping the playing field:

  • Standard Prerolls – Simple and classic, these prerolls are perfect for consumers who appreciate a straightforward, smooth experience.
  • Moonrock Prerolls – Known for their kief coating, these prerolls are a favorite among those looking for an enhanced, flavorful smoke.
  • Diamond Prerolls – Featuring a diamond-coated tip, these prerolls deliver a premium experience and make an eye-catching addition to any retailer’s lineup.
  • Snow Prerolls – Coated with hemp-derived diamonds, these prerolls offer both potent effects and stunning visual appeal.
  • Diamond Moonrock Prerolls – A combination of kief coating and a diamond tip, this preroll merges two premium features into one unforgettable product.

Types of Prerolls

Customization: Unlocking New Opportunities

Customization is reshaping the preroll market, empowering brands to develop products that truly stand out. This trend goes beyond aesthetic tweaks—it’s about creating tailored experiences that meet specific customer needs and preferences. Here are key aspects of preroll customization that companies can leverage:

  • Unique Cannabinoid Blends: Adjusting the ratios of cannabinoids to target specific effects or consumer preferences, whether it’s relaxation, focus, or creativity.
  • Terpene Customization: Infusing unique terpene profiles to enhance flavor and aroma, adding another layer of sophistication to prerolls.
  • Exclusive Visual Features: Utilizing techniques like kief coating, diamond tips, or other design elements to make prerolls instantly recognizable.
  • Private Label Opportunities: Offering white-label packaging solutions so brands can seamlessly integrate prerolls into their product line with their own branding.

By leveraging these customization options, brands can differentiate themselves in a competitive market, building loyalty and attracting a broader range of customers.

Scaling Production and Navigating Compliance in the Preroll Market

Scaling production while maintaining quality is a significant challenge, particularly in labor-intensive processes like preroll production. Intricate steps such as blending custom cannabinoid profiles, applying kief coatings, or crafting diamond tips require precision and time. Emerging technologies—automated rolling machines, precision coating applicators, and terpene infusion systems—are helping bridge the gap between high demand and labor limitations. These innovations streamline production, reduce manual labor, and ensure consistent, artisanal-quality products at scale, keeping brands competitive in an evolving market.

While technological advancements drive efficiency, the cannabis and hemp industries face complex regulatory hurdles, especially for prerolls incorporating extracts, concentrates, and flower. Each step, from extraction to infusion and final assembly, involves layered oversight and licensing requirements. Successfully navigating these challenges demands expertise in compliance and quality assurance. Experienced producers streamline operations by ensuring all regulatory steps are met, enabling brands to focus on innovation without risking non-compliance.

By combining scalable production methods with meticulous regulatory adherence, businesses can meet growing consumer demand for premium preroll products. Collaboration with trusted manufacturing partners ensures quality and compliance while embracing technologies that improve efficiency. As the market evolves, innovation and adaptability will remain key to delivering high-quality, customizable prerolls that resonate with both seasoned and new consumers alike.

Closing Thoughts

As the cannabis and hemp preroll markets continue to evolve, staying ahead of trends and navigating industry challenges requires adaptability and innovation. By embracing advancements in production, customization, and compliance, businesses can meet the growing demand for premium preroll products. The future of this market lies in collaboration, ensuring high-quality products that resonate with consumers and adapt to changing regulations.

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Ohio Cannabis Sales Total $242M in 2024

1/13/2025

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Cannabis sales in Ohio totaled $242 million in 2024, according to state Division of Cannabis Control (DCC) data. Adult-use sales in the state commenced in August and in the five months since the program launched, cannabis operators sold more than 32,000 pounds of raw plant material, and 4 million pounds of manufactured products have been sold in dispensaries throughout the state.

Medical cannabis sales topped $2.05 billion which outpaced last year’s sales of about $1.6 billion. 

From the launch of adult-use sales, the price-per-gram of cannabis flower in Ohio fell from $9.40 to $6.74, while the average sale price for manufactured products fell from $31.06 to $26.76. 

State regulators are seeking changes to the state’s cannabis industry in 2025 with the DCC considering allowing retailers to sell pre-roll products, including so-called “super pre-rolls” or infused pre-roll products, but also implementing a ban on cannabis advertising via methods “with a high likelihood of reaching persons under the age of 18” which would effectively bar cannabis companies from advertising on billboards, radio, television, and online. The DCC is also considering discount rules that specify that each dispensary must have a written discount policy and that any discount offered to adult-use customers must be available to medical cannabis patients, and that dispensary employees cannot receive any rebates or discounts.

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Customer Data of Cannabis Brand Stiiizy Exposed in Data Breach

1/13/2025

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Cannabis brand Stiiizy has been victimized by a third-party data breach that exposed customer identification information and transaction history, Cybernews reports. Stiiizy said that multiple California retailers were impacted, including four dispensaries – one in Alameda, one in Modesto, and two San Francisco. 

According to Cybernews’ ‘Ransomlooker’ tool, the brand was compromised by ransomware Everest in November and December of last year. 

In a Notice of Data Breach filed with the California Office of the Attorney General on January 8, Stiiizy said they were notified of the first attack on November 20, 2024.  

“STIIIZY has implemented additional security measures designed to prevent a recurrence of such an attack and to protect the privacy of STIIIZY’s valued customers, Additionally, we are providing affected individuals with free credit monitoring services, as described more fully below.” — Stiiizy in the Notice of Data Breach, 1/8/25 

The impacted information includes customer names, addresses, birth dates, driver’s license and passport ID numbers, photographs, signatures that appear on government-issued IDs, medical cannabis card information, and transaction histories. According to cybersecurity firm Halcyon AI, the personal information of more than 420,000 Stiiizy customers was breached in the ransomware attack. 

Given that the leaked information includes sensitive data like government ID numbers and individual signatures linked to the IDs, hackers could impersonate the victims or commit financial fraud. Bad actors could also use the information to extort victims or create personalized and targeted scams against Stiiizy customers.

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