Canna_Business
4 days ago
How Companies Are Selling THCa Online Without a License:
The 2018 Farm Bill has created a legal loophole for selling THCa online. THCa, which is non-psychoactive until heated, can be sold legally if it tests under 0.3% Delta-9 THC on a dry weight basis. This allows companies to bypass traditional cannabis licensing and state regulations.
Key Points:
2018 Farm Bill: Permits cannabis products with under 0.3% Delta-9 THC.
THCa Products: Non-psychoactive until heated but converts to Delta-9 THC when smoked or vaped.
No License Needed: THCa meets legal THC limits, avoiding the need for a cannabis license.
Consumer Impact: Consumers can buy THCa products online, evading stricter state cannabis laws.
Summary: The 2018 Farm Bill has inadvertently allowed THCa products to be sold legally online by staying within THC limits, despite their psychoactive potential when heated.
For example,
https://www.prestonherbco.com/products/100-ozs
________________________________________________________________________________
Explaining THCa and THC: The 2018 Farm Bill Loophole...
- THCa vs. THC: THCa is non-psychoactive but converts to THC (which causes a high) when heated through smoking, vaping, or cooking.
- 2018 Farm Bill Loophole: The bill legalized hemp with less than 0.3% THC but didn’t mention THCa, allowing high-THCa cannabis to be sold legally if it tests below 0.3% THC before being heated.
- Online vs. Dispensary Sales: Both sell THCa-rich cannabis. Dispensaries can sell any THC level, while online sellers must comply with the 0.3% THC limit until the product is heated.
- Decarboxylation: Heating (through smoking, vaping, or cooking) decarbs (converts) THCa into active THC.
doomed
1 week ago
BUNK RULES.
Home / Cultivation
Psilocybin among contaminants found in intoxicating Delaware hemp products
author profile pictureBy Margaret Jackson, Reporter
September 12, 2024
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Image of vape pen with delta-8 THC oil
(Photo by Billy Franklin Blume Jr/Wirestock Creators/stock.adobe.com)
Secret shoppers in Delaware were able to purchase illegal – and potentially dangerous – intoxicating hemp products found to contain mold, pesticides and even psilocybin, the psychedelic ingredient found in magic mushrooms.
News outlet Our Delaware and the National Clinical Director Consortium (NCDC), a cannabis trade group, conducted the secret-shopper survey at two-dozen unlicensed stores around the Delaware cities of Dover, Smyrna and Wilmington.
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The groups ultimately purchased 30 hemp-derived products including flower, edibles and vapes, which they had tested by a state-licensed marijuana testing lab.
The products were purchased at smoke shops, gas stations and specialty CBD and vape stores in Delaware.
Cannabis labels
Of the 30 products purchased at retail stores, only 19 were sold with labels, according to the groups behind the survey.
Some products were sold deli-style, or weighed and packaged onsite; several pre-roll products also were sold without labels, according to survey results shared with MJBizDaily.
“The team found countless cannabis products being pulled right out of jars and placed into bags without labels or repackaged right in front of our shoppers,” the news site Our Delaware reported.
All of the hemp products purchased for the survey were found to have issues ranging from inaccurate dosing or potency to inaccurately claiming products contained less than 0.3% THC – the threshold that separates hemp from marijuana under federal law – to not listing the cannabinoids present.
The survey found:
83.3% of samples violate the Farm Bill.
63.3% of samples included synthetic cannabinoids.
23.3% of samples included contaminants known to be harmful.
100% of samples had label issues.
Intoxicating hemp products are illegal in Delaware, where labels for regulated medical marijuana products must include potency and cannabinoid profile information, according to state law.
Intoxicating hemp
The 2018 Farm Bill legalized hemp by removing it from the Controlled Substances Act of 1970, but federal lawmakers who voted to legalize industrial hemp likely didn’t intend for manufacturers to create or extract intoxicating compounds and use them in consumer goods.
The unregulated products are especially popular in states without adult-use marijuana programs; Delaware, for its part, recently opened the application window for its upcoming adult-use market.
According to Chicago-based data firm Brightfield Group, frequent users of hemp-based THC “tend to purchase (the products) through convenience store channels.”
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While about a dozen states including Delaware ban intoxicating hemp products altogether, others are imposing strict rules.
“A lot of people are using this gray area to create products and become dispensaries even though they’re not licensed,” said Laura Barrett, a Maryland-based registered nurse who works as a clinical consultant and educator for cannabis and psychedelics.
“They’re selling products that I’m seeing patients have negative side effects to,” Barrett told MJBizDaily.
High THC levels
Barrett, who serves on the board of the National Clinical Director Consortium, which helped coordinate the Delaware secret shopper program, said the THC levels found in some of the surveyed products is concerning.
In some instances, the label suggested that the product contained 100 milligrams of THC, but lab testing revealed 300 milligrams.
“That’s much more than someone thought they were getting,” Barrett said.
According to survey results, more than 80% of hemp products sampled for the survey contained higher levels of THC than what the Farm Bill allows.
Some also contained psilocybin, the psychedelic ingredient in magic mushrooms, Barrett said.
Harmful contaminants were found in 23% of the products sampled, and 63.3% contained synthetic cannabinoids, such as delta-8 THC, an intoxicating cannabinoid commonly created by synthesizing CBD.
Harmful contaminants detected in the products included mold, unsafe levels of coliform and pesticides as well as heavy metals such as cadmium, lead and mercury.
One edible product sampled contained 500 milligrams of the synthetic cannabinoid THC-O, a type of THC Barrett called more potent than the delta-9 THC commonly found in marijuana.
“There are all different types of THC, and the population doesn’t know about all these different THC factors,” she said.
Many hemp companies’ products contain delta-8 THC, which some people find to be less intoxicating than the delta-9 THC typically found in marijuana, according to Barrett.
But she is concerned that individuals accustomed to consuming delta-8 products might be surprised when they can’t tolerate the same dosages of regulated adult-use marijuana products, when those become available in Delaware next year.
“You think you can eat 100 milligrams because you had that much delta-8, but it’s different because it’s so much more potent,” Barrett said of delta-9 THC.
Delaware marijuana regulation
Chris Lindsey, director of state advocacy and public policy at the American Trade Association for Cannabis & Hemp (ATACH), said synthetic cannabis could be dangerous if it introduces chemicals beyond those tested for in the regulated market.
“We don’t actually know what all the chemicals are that are in these products,” he told MJBizDaily. “This goes beyond the agricultural contaminants you might see.
“If you don’t have any rules at all, it’s tough to tell what may be wrong with the product.
“We know what to look for in marijuana but not in unregulated products.”
Lindsey said products that pose danger to consumers are more likely to appear on store shelves when there is not a regulated market in place.
He likened what’s happening with hemp-derived THC in unregulated states to Prohibition in the 1920s.
Back then, he said, consumers could possess alcohol without consequences, but it was illegal to produce it, which created an incentive for criminal organizations to get into the liquor business.
“It’s what happens in circumstances where you have an easing of laws and a perception of all this changing, but really it hasn’t changed,” Lindsey told MJBizDaily.
“It’s an opportunity for profiteers to swoop in with products we don’t know anything about.”
The $1.5 trillion Farm Bill that’s making its way through Congress includes an amendment seeking to ban intoxicating hemp-based cannabinoids, but Lindsey said regulation of the plant must be at the state level to be effective.
“At the federal level, we’re looking for clarity,” Lindsey said.
“If I go and make delta-8 (THC), there isn’t anything illegal about putting it in a brownie, shipping it across state lines and selling it.
“What we’re asking Congress to do is clarify that it never intended and didn’t legalize synthetic THC.
“We encourage states to put in regulatory systems not only for marijuana but for analogs of THC because without them, you don’t know what your consumers are taking.”
Barrett said education is another important factor.
She supports reliable companies producing high-CBD products with low levels of THC but says consumers must be educated, ask questions and shop responsibly.
She also said it’s the responsibility of retailers to vet the manufacturers they’re doing business with.
“I’m all for good-quality hemp-derived THC products, but I want people to know what they’re getting into,” she said.
Canna_Business
2 weeks ago
How Companies Are Selling THCa Online Without a License:
The 2018 Farm Bill has created a legal loophole for selling THCa online. THCa, which is non-psychoactive until heated, can be sold legally if it tests under 0.3% Delta-9 THC on a dry weight basis. This allows companies to bypass traditional cannabis licensing and state regulations.
Key Points:
2018 Farm Bill: Permits cannabis products with under 0.3% Delta-9 THC.
THCa Products: Non-psychoactive until heated but converts to Delta-9 THC when smoked or vaped.
No License Needed: THCa meets legal THC limits, avoiding the need for a cannabis license.
Consumer Impact: Consumers can buy THCa products online, evading stricter state cannabis laws.
Summary: The 2018 Farm Bill has inadvertently allowed THCa products to be sold legally online by staying within THC limits, despite their psychoactive potential when heated.
For example,
https://www.prestonherbco.com/products/100-ozs
________________________________________________________________________________
Explaining THCa and THC: The 2018 Farm Bill Loophole...
- THCa vs. THC: THCa is non-psychoactive but converts to THC (which causes a high) when heated through smoking, vaping, or cooking.
- 2018 Farm Bill Loophole: The bill legalized hemp with less than 0.3% THC but didn’t mention THCa, allowing high-THCa cannabis to be sold legally if it tests below 0.3% THC before being heated.
- Online vs. Dispensary Sales: Both sell THCa-rich cannabis. Dispensaries can sell any THC level, while online sellers must comply with the 0.3% THC limit until the product is heated.
- Decarboxylation: Heating (through smoking, vaping, or cooking) decarbs (converts) THCa into active THC.
doomed
2 weeks ago
Licence nobody wants… The only Canadian canna success stories belong to BC BUD. Been serving Canadians for 60 years counting. Folks don’t buy weed from suits. Suits are no good at growing weed. They don’t know it. They don’t understand it. The are good at selling shares to canna naive suckers but.
Why Canopy Growth Withdraws Penelope, a Sustainable Medical Cannabis Strain
September 4, 2024
Doomed
Canopy Growth Polska Withdraws Popular Medical Cannabis Strain Penelope Due to Quality Concerns.
Canopy Growth Polska is withdrawing its popular medical cannabis strain, Penelope (THC 8%, CBD 7%), due to aging genetics and quality concerns.
Linton bought bunk seeds from private growers when they started Crappy Growth back in the days, not understanding that quality seeds is a must in this business. Linton did not know that you don’t get fire from a dog.
While this decision may disappoint patients, the company is working on introducing new strains with similar profiles. This move underscores Canopy Growth’s commitment to quality and patient safety in the Polish medical cannabis market.
The context of the withdrawal of the Penelope variety
Canopy Growth Polska, part of the international Canopy Growth Corporation, has been providing Polish patients with high-quality medical products based on hemp for years. The company is a market leader, and its products are appreciated by both patients and doctors. The Penelope strain, characterized by a balanced content of the cannabinoids THC (8%) and CBD (7%), was one of the company’s flagship products, offering patients a unique combination of ingredients with therapeutic potential.
Penelope gained popularity thanks to its balanced cannabinoid profile, which is rare on the Polish market. The balanced content of THC and CBD made this strain preferred by many patients who needed support in treating various ailments, such as chronic pain, inflammation, as well as sleep problems or anxiety.
Reasons for Penelope’s withdrawal
The decision to discontinue Penelope was difficult but necessary for Canopy Growth Polska. The main reason for this decision is the aging of the strain, which has made it more susceptible to quality fluctuations. Over time, the genetics of the plant can weaken, which consequently leads to a decrease in the stability of the product. Especially when you grow from clones as per Crappy Growth. They were selling bunk weed at a premium. No wonder line ups are gone. They have been gone since day 2. For a company whose priority is to provide the highest quality products, this was an unacceptable risk.
Canopy Growth Polska emphasizes that concern for quality and patient safety has always been and remains the top priority. The Penelope recall aims to prevent situations in which the quality of the product could no longer meet the high standards to which Polish patients and healthcare workers have become accustomed.
“The decision to discontinue Penelope was very difficult for us, as it is a strain that enjoyed huge interest. However, our commitment to providing only the highest quality products forced us to take this step,” says a representative of Canopy Growth Polska.
Canopy Growth Polska’s response and plans
Although the withdrawal of Penelope may be disappointing for many patients, Canopy Growth Polska does not leave them without support. Intensive work is already underway to introduce a replacement that will be characterized by a similar, balanced THC/CBD profile. The new variety that the company is working on is to not only meet, but even exceed the expectations of patients in terms of quality and effectiveness.
The company also announced the introduction of other medical strains that have a similar profile to Penelope. These products are expected to be available soon, allowing patients who have relied on the balanced effects of THC and CBD to continue their therapy.
“The process of registering new varieties of medical cannabis in Poland is time-consuming, but we are constantly working to provide patients with appropriate substitutes as quickly as possible. Our goal is to ensure continuity of therapy and support for doctors and patients,” adds the company representative.
The significance of the decision for the medical marijuana market in Poland
The withdrawal of Penelope from the market is a significant event for medical marijuana patients in Poland. This strain, due to its unique properties, was often the first choice for people starting cannabis therapy. But many return the product. Sales kept going down. The word was out on the web. News travel fast. Now they will have to look for alternatives, which can be a challenge, especially in the context of the lack of products with a similar profile on the market. They will do what Canadians did… purchasing next day shipping on the net… easy, cheap, best, fast.
This decision may also affect the dynamics of the medical marijuana market in Poland. Other producers may start introducing strains with a similar composition to the market to meet the demand for products similar to Penelope. On the other hand, Canopy Growth Polska, through its announcements, is trying to maintain its leadership position by preparing new strains that are supposed to meet the needs of patients.
Good luck with that…🤣
doomed
2 weeks ago
California grower ordered to destroy hemp containing illegal pesticides
By MJBiz
September 3,2024
California regulators ordered a Northern California hemp grower to destroy plants in 2223 greenhouses after an investigation revealed illegal pesticide use.
As a result of a May 24 investigation conducted by the Sutter County agricultural commissioner, the California Department of Pesticide Regulation (DPR) reached a settlement agreement with the grower, Bin Zheng, who consented to voluntarily destroy the hemp at all 22 greenhouses.
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Zheng was fined by Sutter County, just north of Sacramento, for using a banned pesticide on hemp and issued a Notice of Proposed Action to take certain steps to resolve the issue, according to a news release.
The products could have been processed and sold to consumers, the DPR warned in a news release.
“Our state’s laws and regulations provide for safe and effective use of pest management tools,” DPR Director Julie Henderson said in a statement.
“Prompt, collaborative enforcement is critical to an effective pesticide regulatory program in California that protects people and the environment,” she added, lauding the DPR’s coordination with the Sutter County agricultural commissioner.
The enforcement action was first reported by Ganjapreneur.
The enforcement actions by state regulators targeting illegal pesticides in hemp products comes on the heels of a massive outbreak of pesticide-tainted THC distillate infused in dozens of regulated California cannabis products over the past few months.
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The growing crisis has led to infighting among brands, retailers, growers and the Department of the Cannabis Control, the state’s chief regulator of the industry.
Meanwhile, the scandal has shaken confidence in the validity of lab testing, certificates of analysis and the greater supply chain in the world’s largest regulated marijuana marketplace, prompting several operators to seek their own solutions.
doomed
2 weeks ago
Home / Finance
Marijuana banking reform still needed if rescheduling occurs, report says
By MJBiz
Sept 3, 2024
Rescheduling marijuana “is unlikely by itself” to solve the cannabis industry’s longstanding banking woes, according to a new report from Congress’ official policy-research arm.
An analysis in an Aug. 26 report from the Congressional Research Service also reiterates a previous contention that recategorizing marijuana from Schedule 1 to Schedule 3, “without other legal changes, would not bring the state-legal medical or recreational marijuana industry into compliance with federal controlled substances law.”
That’s consistent with previous observations that Congress still needs to pass legislation – such as the long-awaited SAFER Banking Act – that provides protections for financial institutions that offer services to cannabis businesses.
The Justice Department’s May 21 proposal to move marijuana to Schedule 3 of the Controlled Substances Act would solve some of the marijuana industry’s tax woes because Section 280E if the Internal Revenue Code prohibiting most deductions for business expenses would no longer apply.
Anti-money-laundering statutes still in play
However, the anti-money-laundering statutes that generally prohibit banks from handling proceeds from illicit-drug sales would still apply, the CRS report noted.
“DOJ’s proposed rescheduling of marijuana, in and of itself, is not likely to alter substantially the risk profile associated with providing financial services to state-sanctioned marijuana business,” according to the report.
The report also noted that rescheduling by itself also wouldn’t drastically alter state-regulated marijuana markets.
“Rescheduling would have no effect on state recreational marijuana laws because recreational marijuana activities would remain unlawful under federal law,” according to the CRS report.
Despite state-regulated adult-use markets sprouting across the country, many cannabis businesses still complain of expensive or unavailable banking services.
Would banks listen to federal, state agencies?
The report did allow that guidance from “federal or state agencies” might encourage banks to revisit their policies for dealing with cannabis.
That said, for any guaranteed progress, Congress must pass long-stalled banking protections.
“It is possible that, if rescheduling were finalized, federal and state agencies might take additional actions that more significantly reduce the legal risks applicable to financial institutions that consider serving the marijuana industry,” the report pointed out.
“However, because substantial legal risks would remain, rescheduling alone might not have a substantial effect on state-sanctioned marijuana business’ access to financial services.”
Partisan bickering as well as across-the-board dysfunction have thwarted the SAFER Banking Act in Congress this session.
doomed
2 weeks ago
September 3,2024
“It is incredibly disappointing to see the DEA drag their feet on an issue which has been a clear White House priority,” U.S. Rep. Earl Blumenauer, an Oregon Democrat and the co-chair of the Congressional Cannabis Caucus, said in a Tuesday statement.
But other observers were more circumspect.
“This is not a surprise,” said Shawn Hauser, a partner at Denver-based law firm Vicente and chair of the practice’s cannabinoid and hemp division.
“There was a very significant chance” of an administrative law judge hearing, she said.
Yet Blumenauer’s frustration echoed similar sentiments among major marijuana industry players on Monday and Tuesday.
“Breaking news: the DEA hates weed,” Ben Kovler, the CEO of Chicago-based multistate operator Green Thumb Industries, posted to social media on Monday night.
doomed
3 weeks ago
Biden Administration Puts A Knife Into The Cannabis Industry
Terry Hacienda
August 30,2024
Biden Administration Puts A Knife Into The Cannabis Industry
In surprise to no one considering the history of the administration leaders, Biden administration starts to wind down legal marijuana
Mom and pop businesses have been struggling the last 2 years. Thousands are in hte cannabis business, many having the hope from the Biden/Harris 2020 campaign about helping them.
Almost 4 years later, there has been no change, and while marijuana use soars, federal government are putting hundreds of businesses out even in fully legal states. The DEA action is paving the way for a robust illegal market.
Has Biden administration killed put a knife into the cannabis industry. Has former foe of cannabis managed to effectively put a stop to the legal cannabis industry? Biden has been in the federal government for 51 years. His tenure has given him unique insight in how government works, the timeline and how to move projects forward. Until recently, Biden and Harris were anti-marijuana, but recognizing the direction of voters, especially younger voters, they made a pivot. But was it a move to try to engage the youth movement without having to deliver a final product? The announcement by the Drug Enforcement Administration to delay until at least 2 December has thrown the industry into a tailspin with stocks dropping due to the announcement.
Biden is quick to comment “Don’t tell me what you value. Show me your budget, and I’ll tell you what you value.” In 2020 the Biden/Harris ticket promised to help the industry by readdressing cannabis. But in reality, Biden waited over 3 years before he made the move. An experienced lawmaker understands the wheels of change moves slowly. Especially when the an agency like the DEA is resistant to the change. The timing of the start to reschedule cannabis allows the campaign to say “look what we are doing”, but actual change may or may not happen. In reality, Biden told the public he values cannabis, but he didn’t put a true push on an easy change until months before the end of his term. Most likely knowing the clock would run out. It is disappointing as the Veterans Administration acknowledged it is an important option for veterans, especially with those with PTSD.
Anne Milligan, is the administrator of the DEA and was appointed by the current administration. The DEA is a federal agency overseen by the presidential administration and has made it clear it is not onboard with 85+% of the population’s view on cannabis. It has also not been pleased Health and Human Services (HHS), The American Medical Association, Canada, the Food and Drug Administration and the American College of Physicians have all recommended rescheduling based on the science behind the plant’s medical benefits
Has the Biden administration pulled a bait and switch
The industry is full of mom and pop organizations who are trying to help build a new economic engine. Gen Z, understanding marijuana is healthy than alcohol, has embraced weed and beer sales have been down. Consumer use has soared among all age groups. Legal states have been reaping the economic benefits, but the DEA doesn’t seemed to be phased by the change of the public acceptance.
While Harris drinks alcohol, Biden and the GOP presidential nominee do not. Harris and Biden have a history of being strong legal cannabis foes. On the campaign trail, Harris seems to support the industry, but has done nothing publicly or via government regulations to help the small businesses in the sector.
Both Harris and Biden are seasoned policy markers, so it would come as no surprise the timeline or the announcement. Harris has revitalized part of the Democrat campaign with other opportunities to engage younger voters. Has the current administration pulled another bait and switch with the industry?
Should the Harris team lose, it gives House Speaker Mike Johnson a chance to end legal marijuana also. He is dead set against any form of legalization. Some leaders in the industry have doubts about the Biden/Harris take on marijuana and have been expanding into hemp, which Senator Mitch McConnell championed. So like another president, Gerald Ford when NYC was in trouble, Biden sent a very clear message to the industry.
Next paper : will they address the bunk issue?
doomed
3 weeks ago
Buy shares before prices drop.
Cannabis retailer Tokyo Smoke to close 29 stores amid creditor protection proceedings
August 29, 2024 on Financial Post
ImageCannabis retailer Tokyo Smoke to close 29 stores amid creditor protection proceedings
The closures are part of a restructuring the brand is carrying out.
Cannabis retailer Tokyo Smoke says it will be shuttering 29 of its stores as it seeks creditor protection.
George Smitherman, President and CEO of Cannabis Council of Canada, talks with Financial Post's Larysa Harapyn about how taxes are killing the cannabis industry's buzz.
Read: bunk, [color=red][/color]not taxes, are killing the cannabis industry’s buzz.
The closures are part of a restructuring the brand is carrying out under the Companies’ Creditors Arrangement Act.
Tokyo Smoke says the moves are meant to better align its operations with the current cannabis market and regulatory conditions, which the company says have changed “significantly.”
Read: folks don’t buy government weed. Bad and too costly.
Some 167 locations across Ontario, Manitoba, Saskatchewan and Newfoundland and Labrador will remain open amid the restructuring.
OEG Retail Cannabis, a company run by the owner of the Edmonton Oilers hockey team, bought the Tokyo Smoke brand from pot giant Canopy Growth Corp. in September 2022.
Since that deal was signed, the cannabis market has struggled as the number of retailers has soared and the price of pot has dropped.
DOOMED
doomed
3 weeks ago
Government weed has no traction, not cutting it!
Denver report finds Marijuana legalization did not impact crimeAugust 29, 2024 on KDVR
ImageDenver report finds Marijuana legalization did not impact crime
Denver's Marijuana Revenue Drops to $48,1 Million as Industry Faces Challenges.
The new city of Denver licensing bulletin said marijuana revenue from taxes and licensing fees was $48.1 million in 2023, a decrease from the peak of $72.6 million in 2021.
The report found that $7.95 million supports services to help the homeless, $7.53 million is spent on affordable housing and $3.32 million supports youth education programs.
Marijuana-related crime only made up 0.2% of total crime in 2023, which is less than 1%, according to the report.
“We created the plan that was implemented by many other cities across America, and one of the reasons why our plan has been copied by so many other cities is because we successfully prevented that prediction that crime would skyrocket,” said Denver Excise and Licenses spokesperson Eric Escudero.
The Denver Police Department told FOX31 that the marijuana task force has been retooled to address the fentanyl issue in Colorado.
“You see the reduction in marijuana seizures over the last decade so I don’t think this is a surprising number. This was where these numbers were trending towards,” DPD Lt. Ryan Harris said.
Industry spokesperson Mason Tvert, a noted leader of initiatives that legalized marijuana, told FOX31 that revenues have declined since the high-demand phase of the coronavirus pandemic.
“It is a very difficult time for the legal cannabis industry,” he said. “We cannot compete.”
Tvert said a solution to excessive supply is necessary and the industry must be supported as it continues to bolster efforts to address needs in the community.
“They want to pay taxes and they want to be regulated and treated like other businesses, but they cannot survive if we continue to overtax and overregulate,” Tvert said.
The report also shows the number of medical marijuana dispensaries has dropped over the past eight years, and the unlawful use and display of marijuana was up 242% in 2023 compared to 2022 with 26 citations.
The City and County of Denver’s 2024 annual marijuana report is compiled by the Office of Marijuana Policy within the Department of Excise and Licenses.
doomed
3 weeks ago
Pot stocks fall as US DEA pushes Cannabis reclassification hearing to December
August 28, 2024 on Pharma.com
ImagePot stocks fall as US DEA pushes cannabis reclassification hearing to December
DEA Postpones Cannabis Reclassification Hearing, Impacting Market and Industry Outlook.
The Department of Justice, which oversees the DEA, said Attorney General Merrick Garland recommended cannabis be reclassified as a Schedule three drug instead of Schedule one earlier this year. Schedule one is reserved for drugs with a high potential for abuse and no accepted medical use.
Shares of cannabis companies sank on Tuesday after the U.S. Drug Enforcement Administration (DEA) postponed its cannabis reclassification hearing to Dec. 2, after the U.S. presidential election.
The Department of Justice, which oversees the DEA, said Attorney General Merrick Garland recommended cannabis be reclassified as a Schedule three drug instead of Schedule one earlier this year. Schedule one is reserved for drugs with a high potential for abuse and no accepted medical use.
Shares of Curaleaf and U.S.-listed shares of Canopy Growth fell over 10%, while Illinois-based Verano Holdings was down 12.9%.
The AdvisorShares Pure US Cannabis ETF dipped 9.1%, having fallen as much as 12% earlier in the session.
Canada-listed Green Thumb Industries, Tilray Brands, and Trulieve Cannabis were down 8.6%, 6% and 5% respectively.
"We believe both candidates are likely to let rescheduling advance, though we have more confidence in Kamala Harris than in Donald Trump," said analysts at TD Cowen in a note.
Analysts also noted that the outcome would heavily depend on Trump's choice for key positions such as Attorney General, the director of the DEA, and the Secretary of Health and Human Services, should he win.
The HHS' National Survey on Drug Use and Health for 2023 showed that marijuana is the most commonly used illicit drug, with 21.8% of people aged 12 or older, or 61.8 million people, reporting use.
Reclassifying marijuana would represent a first step toward narrowing the wide policy chasm between state and federal cannabis laws.
Medical cannabis is legal in 38 states and various U.S. territories, while recreational use is permitted in 24 states and Washington, D.C.; however, it remains federally illegal.
Until then, "the extended wait for rescheduling decisions could maintain the status quo, leaving businesses to navigate a patchwork of state regulations and ongoing federal ambiguity," said Pete Sahani chief executive officer of the cannabis hardware firm, the Bling Group.
doomed
3 weeks ago
New York’s medical Cannabis program crumbling under financial pressure and patient exodus
August 28, 2024 on New York Upstate
ImageNew York’s medical Cannabis program crumbling under financial pressure and patient exodus
On paper, the numbers don’t look so good.
Just two years ago, there were 40 medical weed shops operating in New York. Now there are 31 — despite the 2021 MRTA legislation that set a goal of 80.
Of the 10 original companies licensed to operate medical marijuana dispensaries in New York, nine remain (MedMen has since gone belly up and left the state; Hudson Health Extracts, the 11th RO to enter the market, has yet to open). And revenues have steadily declined as the patient load has shrunk and the number of dispensaries has diminished.
Culprit : bunk weed.
On top of that, the medical patient load, according to the Office of Cannabis Management, is cratering. As of Aug. 1, the number of registered patients stood slightly above 18,000, down from its peak of about 150,000 in 2019 — three years after the medical dispensaries first went into operation.
NY Cannabis Insider previously reported significant drops in revenue for the ROs (registered operators), according to data collected by HEADSET, a leading global cannabis analytics firm.
So given this bleak landscape, NY Cannabis Insider reached out to industry representatives, two of whom agreed to interviews.
Jeremy Unruh, senior vice president and general counsel of PharmaCann — one of the four registered operators that have gone completely vertical, and as of June 29 were allowed to sell recreational cannabis products at one of their original store locations – did not mince words when asked about the outlook for coming years.
“If the state doesn’t do something to bolster this sector, it will degrade into nothing,” Unruh said, adding that “this kind of business is not sustainable” under current conditions.
When the medical dispensary program began in 2016, companies were allowed four store locations.
NYCANNA LLC (Acreage), which operates in New York as The Botanist, still manages three medical marijuana locations (Buffalo, Middletown and Farmingdale), but was forced to temporarily close its Queens dispensary because of shrinking sales and competition from the (better) illicit market.
NYCANNA does have a wholesale operation in East Syracuse, which helps the revenue flow to “some extent,” said Executive VP and General Counsel Corey Sheahan.
But it’s still a difficult landscape, made even tougher by NYCANNA’s inability to go completely vertical and sell recreational cannabis due to the $20 million licensing fee required by OCM.
“It’s a lot of money,” Sheahan said. “We don’t have the financial capacity to pay the $5 million to open a co-located store. The fee is really a challenge to us.”
(The $5 million fee was the first tranche required by OCM — to be followed by another $10 million due by the end of 2024).
PharmaCann was able to cough up the $5 million initial payment and the added revenue from its one co-located store in Albany has “mitigated” the losses felt overall, Unruh noted.
The $20 million fee “was conceived at a time when the leadership at OCM was different,” Unruh maintained. “It was conjured up at a time when there was not a lot of positive sentiment in the legislature or the OCM as to the incumbent medical operators.”
“The fee was dropped into the statute” and was supposed “to be used for social equity programming,” Unruh continued.
But “from what we can tell, those funds have not been used for social equity programming and the amount of the fee seems” somewhat absurd “because half of the ROs can’t pay it. It’s prohibitive.”
In its 2023 “Survey Report,” OCM noted that as a result of the declining medical patient load related to legalized adult-use, “to preserve and support the program,” it was “imperative for regulators to understand the challenges of participating in the program so that better policy may be developed and implemented.”
OCM did not respond to requests for comment by publication.
Except for minimal changes made in eligibility requirements, the state has made no improvements to its medical cannabis program, experts say.
At the time, the $20 million licensing fee for medical operators to go fully vertical was seen as a way of giving CAURD holders and small independent retailers a leg up against the well-financed MSOs running the medical dispensaries.
“People would think we have deep pockets,” Unruh quipped, “but the truth is there’s not a lot of capital in the cannabis space right now, not in any space right now, especially in cannabis where things are far more expensive than they look at first blush.”
The bottom line, he said, is that there’s “not a lot left over after we pay employees, transport products to dispensaries with high overhead and not many patients walking in the door.”
doomed
3 weeks ago
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Home / Legal
December marijuana rescheduling hearing prompts anger, stock sell-off
Chris Roberts, Reporter
August 28, 2024
For the second year running, the $32.1 billion U.S. cannabis industry will head into the Labor Day holiday weekend on the heels of a major milestone in the Biden administration’s effort to reschedule marijuana.
Instead of celebration, however, anger and a minor sell-off of cannabis stocks followed Monday’s announcement that an administrative law judge won’t hear the Justice Department’s proposal to recategorize marijuana to Schedule 3 of the Controlled Substances Act until December.
A year ago, the industry headed into the Labor Day holiday weekend celebrating “the biggest thing ever” to happen with cannabis reform when federal health regulators recommended that marijuana be classified as medicine.
But this year, U.S. Drug Enforcement Administration chief Anne Milgram’s notice in the Federal Register of a planned Dec. 2 hearing means it’s all but certain marijuana won’t be rescheduled until 2025.
Marijuana tax relief on hold
As a result, plant-touching cannabis companies will have to wait a few more months for federal tax relief.
That potentially upends several major multistate operators’ plans to claim business expenses the IRS says are still due under Section 280E of the Internal Revenue Code.
“It is incredibly disappointing to see the DEA drag their feet on an issue which has been a clear White House priority,” U.S. Rep. Earl Blumenauer, an Oregon Democrat and the co-chair of the Congressional Cannabis Caucus, said in a Tuesday statement.
But other observers were more circumspect.
“This is not a surprise,” said Shawn Hauser, a partner at Denver-based law firm Vicente and chair of the practice’s cannabinoid and hemp division.
“There was a very significant chance” of an administrative law judge hearing, she said.
Yet Blumenauer’s frustration echoed similar sentiments among major marijuana industry players on Monday and Tuesday.
“Breaking news: the DEA hates weed,” Ben Kovler, the CEO of Chicago-based multistate operator Green Thumb Industries, posted to social media on Monday night.
Cannabis stocks take a hit
Cannabis investors reacted accordingly.
Shares in Green Thumb dipped more than 8.5% on the news of the Dec. 2 hearing, from $10.69 at the close of markets Monday to about $9.76 on Tuesday afternoon.
Similar drops hit fellow marijuana MSOs:
Curaleaf Holdings, down 12% to $2.80.
Trulieve Cannabis Corp., down 5% to $9.09.
Verano Holdings Corp., down 13.5% to $3.33.
Meanwhile, outspoken cannabis advocates and some business leaders took to social media to vent frustrations – at President Joe Biden, at Milgram and at each other – as hopes of preelection rescheduling vanished.
Speculation swirled that Republican presidential nominee Donald Trump could unwind the rescheduling process as a rebuke to Biden.
Those reports competed with rumors that, with the Democrats’ hopes of retaining the White House improving with Vice President Kamala Harris as the nominee, the party is less in need of a drastic act to win back disaffected progressives and young voters.
But, for now, such theories have no factual basis.
“You can Rorschach this any way you want,” said one D.C. lobbyist, who requested anonymity to speak freely, “but there isn’t a sign that anybody I know has seen that there was some political maneuvering going on.”
‘We know what next step is’
Instead, lawyers, lobbyists and some cannabis executives told MJBizDaily on Tuesday that the scheduled hearing shouldn’t have come as a shock.
If anything, it means the rescheduling process Biden launched with an October 2022 executive order is still on track.
“We hoped it would be speedier, we were hoping for before the (November presidential election), but at least we have a date now, and we know what the next step is,” said Bryan Barash, vice president of external affairs at Oregon-based cannabis sales software platform Dutchie.
“But you know, I think throughout most of this process, we’ve been pleasantly surprised at the speed – and it’s beaten expectations.”
Publication of a final rule follows the hearing by an administrative law judge, though the Administrative Procedure Act does not give a specific time frame.
Barring a lengthy delay in court – some observers noted that legal challenges are likely – the Dec. 2 hearing means a final rule is still possible before Biden leaves office on Inauguration Day, Jan. 25.
That is what Blumenauer, the longtime congressional champion, is banking on.
“While I would have preferred to see rescheduling finalized before the election, we still have every reason to believe that it will happen before President Biden leaves office,” Blumenauer said.
“I also have every hope that because of our work together, soon-to-be President (Kamala) Harris will take further steps to rationalize cannabis policy and end the failed war on drugs.”
We can then address the bunk caper!
doomed
4 weeks ago
Retail Cannabis sales continue to cool off in Canada.
August 26, 2024 on Strat
Canadian Retail Cannabis Sales Decline Amidst Market Saturation.
Retail cannabis sales continue to cool off in Canada after nearly five years of growth, with sales in April hitting a year-over-year low, with $518 million in sales compared to $525 million in sales in April 2023.
The newest figures from Statistics Canada show seven of the past ten months with month-over-month declines from a peak of $564 million in August 2023. While sales surged significantly in the first several years of legalization, in the past year, that momentum has begun to wane due to poor quality products.
Statistics Canada does periodically update their previous monthly figures as new data comes in. While the data quality for most months is considered excellent, the most recent four months are considered very good or good.
The newest wholesale cannabis sales figures from Stats Canada show a similar trend, with wholesale sales dropping off from a peak of $597 million in February 2024, followed by now four months of declines.
As of August 13, there were 3,722 licensed cannabis retail stores in Canada.
British Columbia: 523 public and private stores listed as “active”
Alberta: 709
Saskatchewan: 190
Manitoba: 209
Ontario: 1,822
Quebec: 99
New Brunswick: 27 public stores, plus nine private stores and six farmgate stores, for a total of 42
Nova Scotia: 50
PEI: 5, up from 4 in January (+1)
Newfoundland and Labrador: 59
Northwest Territories: 6 brick-and-mortar locations, plus 1 private online store
Nunavut: 2, up from 1 in March (+1)
Yukon: 6
doomed
4 weeks ago
Bunk weed just got a 70% augmentation.
That will help get rid of bunk!
Watch nsrr5 splurge next wed.
MEDICAL CANNABIS NEWS
Lawmakers make it official: Annual fees for Medical pot businesses will jump 70%
Posted August 23, 2024 on South Dakota Searchlight
ImageLawmakers make it official: Annual fees for Medical pot businesses will jump 70%
Health department says price hike is meant in part to address future needs.
Lawmakers voted 4-1 on Tuesday to finalize a nearly 70% hike to the price of a medical marijuana business license.
Sen. Red Dawn Foster, D-Pine Ridge, was the lone member on the Legislature’s Rules Review Committee to oppose the increase. The price change was made possible by a bill passed this winter at the urging of the state Department of Health, which administers the state’s medical marijuana program.
The current fee is capped at $5,310, an inflation-adjusted figure to the original $5,000 annual fee set by lawmakers in 2021, the year after voters opted to endorse a medical pot program for the state.
The change puts the annual price at $9,000.
Emily Kerr, the program’s administrator, told the committee that the price change is meant to cover the program’s administrative costs. The health department has three new employees who oversee the program, doing things like processing marijuana card applications, inspecting dispensaries and grow operations, and investigating complaints.
“The program has grown and been utilized at a rate that was much faster than initially projected,” Kerr said.
The state is averaging about 13,000 cardholders at any given time, Kerr said. She also told lawmakers that there are 68 dispensaries in the state, 38 cultivation sites, 18 manufacturing sites and two independent testing facilities.
“Those require thorough review of initial annual renewal applications, providing technical guidance and customer service, as well as our inspection program to investigate complaints, to make sure that we’re getting in there at least annually, if not more,” Kerr said.
Sen. Jim Mehlhaff, R-Pierre, moved to finalize the rule change with the higher fee.
“The industry is supportive of the fee increase,” Mehlhaff said. “Not necessarily loving it, but understanding it.”
The change is expected to return $346,860 in increased revenue in the first, partial year, and $490,770 a year in increased revenue after that.
‘New money’
Kerr also spoke on Monday about the fee increase during a meeting of the state’s Medical Marijuana Oversight Committee, on that day offering more details on the work of the program’s employees as she explained the increase.
“We feel this is necessary to sustain the operations of the program, because we are funded completely by fees through cardholders and establishments,” Kerr said.
Cardholder fees will not be increased through the rule change.
Marijuana industry lobbyist Jeremiah Murphy told the committee that the industry understands the setup and appreciates the help the three new employees offer, “but my client paid for those.”
A 70% jump in fees, he said, is higher than South Dakotans might expect in other areas.
“That’s really quite a jump in an anti-tax, anti-overregulation state like South Dakota, but that was our commitment, because they wrote that law to say that it will be fully self-funding,” Murphy said.
Murphy also said the program is a significant source of sales tax revenue in a market that wasn’t paying them before. Murphy cited statistics from the U.S. Department of Health and Human Services that put the number of marijuana users in South Dakota at 93,000 or more. Some of those users are served by tribal programs – Murphy guessed around 19,000 – with another 13,000 in the state program. Those buying on the illicit market aren’t paying sales tax, he said.
The oversight committee also learned that marijuana card applications have leveled off and even declined after an initial spike – something industry leaders attribute to the growth in the market for hemp-derived marijuana alternatives.
Patient advocate Brad Jurgenson asked on Monday why the program would increase fees if it hadn’t lost money in the prior year. Kerr replied that the price needs to go up to keep pace with ongoing costs and to make sure health department employees can process applications and manage inspections efficiently.
During Tuesday’s rules hearing, Sen. Foster sounded a similar note, asking Kerr if the permit fee increase was based on calculations or “arbitrary.”
Kerr told Foster that the department calculated its needs, but also said the fee increase was designed to be high enough to help the department avoid annual visits to the rules committee.
“While this is a big jump, we don’t necessarily want to go before the Legislature to talk about fluctuations,” Kerr said.
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