doomed
21 hours ago
Home / Legal
Trumpâs choice as interim DEA leader is marijuana rescheduling skeptic
By Doomed
January 22, 2025
A former top U.S. Drug Enforcement Administration official who cast doubt on marijuana rescheduling last year is President Donald Trumpâs interim choice to oversee the DEA â and, potentially, the agencyâs historic rescheduling process.
The Trump administration on Monday tapped Derek Maltz to take over as DEA administrator on an interim basis, Bloomberg News reported.
Maltz, whose 28-year DEA career included 10 years as special agent in charge of the agencyâs Special Cannabis Operations Division, assumes control from the agencyâs previous chief, Anne Milgram.
Maltz will inherit from Milgram an ongoing and contentious process to reclassify marijuana under federal law.
Trump is pro-rescheduling; his DEA pick, not so much
In a September post on his Truth Social platform, Trump signaled support for downgrading marijuanaâs status under the Controlled Substances Act, a process that former President Joe Biden launched in October 2022.
That process is in temporary limbo pending an appeal that seeks to remove the DEA as overseer of the process.
Trump loyalists, including Texas Republican U.S. Rep. Chip Roy praised the selection of Maltz, pointing to the former agentâs resume that includes successes against international ânarco cannabis terrorismâ and the capture of Sinaloa cartel leader Joaquin âEl Chapoâ Guzman.
Malts also has cast doubt on the marijuana rescheduling process that heâll now inherit.
It all started in May 2024, when the U.S. Justice Department published the âinterim proposed ruleâ that reclassified marijuana as a Schedule 3 drug, down from Schedule 1.
It was former Attorney General Merrick Garland â not Milgram â who signed off on the finding of âsubstantial evidence that marijuana does not warrantâ its present Schedule 1 status.
An additional memo from the DOJâs Office of Legal Counsel that cites DEA objections to reclassifying marijuana indicates the agency fought the decision to pursue rescheduling, a process it now is overseeing.
Maltz: Rescheduling is âpolitics over public safetyâ
Maltz, then retired from the DEA and working as head of government relations for a software company, also had strong words after the May ruling became public.
âItâs crystal clear to me that the Justice Department hijacked the rescheduling process, placing politics above public safety,â he told the Associated Press.
âIf thereâs scientific evidence to support this decision, then so be it. But youâve got to let the scientists evaluate it.â
According to one analysis, such scientific evaluation already had been done: In August 2023, the Department of Health and Human Services found that cannabis has a âcurrently accepted medical useâ in the United States.
However, as the DOJâs Office of Legal Counsel memo indicated, the DEA questioned the process used to make that determination.
Thereâs no clear timeline as to when or if Maltz might entertain the appeal that has temporarily halted the marijuana rescheduling process.
A hearing before Chief Administrative Law Judge John Mulrooney II was to begin in earnest Jan. 21.
But that process has been paused indefinitely after an appeal from cannabis interests that accused the DEA of âbiasâ against rescheduling.
doomed
1 week ago
Bunk weed has no tractionâŚ😂
Nationâs oldest marijuana retailer facing multiple lawsuits related to unpaid bills
Doomed
January 15, 2025
Berkeley Patients Group (BPG), the nationâs oldest operational marijuana retailer, is embroiled in several lawsuits alleging the operator failed to pay invoices to vendors, landlords and service providers.
The Northern California retailer is facing at least three lawsuits that claim it owes various businesses more than $250,000 in unpaid bills, according to Berkeleyside, a nonprofit digital news outlet.
The lawsuits include:
A December 2023 civic claim by BGP vendor Event Horizon Technologies, which does business in California as Flow Cannabis Co., alleging itâs owed $60,605 for goods, merchandise and other services. Flow Cannabis â often referred to by its flagship brand, Flow Kana â has had financial struggles of its own.
A February 2024 filing by Oakland-based ABC Security Service claiming that BPG failed to pay $73,864 for security services.
A claim early last year by AZ DV Real Estate alleging the cannabis retailer owes $127,160 in rent and other costs. AZ DV owns a Berkeley property at 1101 University Ave. that BPG intended to move to but didnât.
BGP denied all these allegations in a July 9 court filing, Berkeleyside reported.
The company first opened its doors in 1999 with a mission to serve the sick and dying, especially by providing medical marijuana to those with HIV and Cancer.
Growing at scale not working.
doomed
1 week ago
Go Tilray!
Home / Legal
Marijuana rescheduling process paused indefinitely after judge cancels hearing
author profile pictureBy Chris Roberts, Reporter
January 14, 2025
President-elect Donald Trumpâs choice to lead the U.S. Drug Enforcement Administration will wield a heavier hand than expected over the ongoing marijuana rescheduling saga after the agencyâs chief administrative law judge canceled hearings scheduled for next week.
DEA Chief Administrative Law Judge John Mulrooney II issued a ruling late Monday that included the cancellation of a hearing scheduled for Jan. 21 pending the outcome of a yet-to-be-filed âinterlocutory appealâ to the agencyâs eventual administrator.
Anne Milgram currently holds the role of DEA administrator, but sheâs likely to be replaced once Trump takes office and appoints a new leader for the drug-enforcement agency.
Trumpâs initial nominee to head the DEA, Chad Chronister, abruptly backed out, and the president-elect hasnât identified another choice.
Judge reacted to pro-rescheduling participants
Mulrooneyâs ruling Monday came in response to a Jan. 6 request from two pro-rescheduling âdesignated participantsâ that Milgram and her agency be removed from the proceedings for demonstrating what they argue is bias.
In their filing, the participants â Village Farms International, a Florida-based agricultural firm that produces cannabis in Canada under a federal license there, and Texas-based Hemp for Victory â requested that Mulrooney allow them to file an appeal âto the Administratorâ should Mulrooney refuse to take action.
And thatâs what Mulrooney did, according to a copy of the ruling obtained by MJBizDaily.
âNotwithstanding the pleas of the Designated Participants that they are anxious for action on the proposed rescheduling of marijuana, the (filers) ⌠are apparently eager to trade a timely disposition and recommended decision for the dubious advantage of piling on moreâ participants, Mulrooney wrote in part.
In his ruling, Mulrooney noted that he must find that granting such permission âis clearly necessary to prevent exceptional delay, expense or prejudice to any party, or substantial detriment to the public interest.â
Doing so now might help avoid a future lawsuit challenging the validity of the whole process, he noted.
âWere my analysis to be reviewed on appeal and determined to constitute prejudicial error, a remand would clearly result in significant delay and expense to the Designated Participants and the process,â Mulrooney added.
Federal law grants the next administrator leeway to consider briefs or schedule oral arguments.
âThe matter is on stay here, and the Administrator will issue a briefing schedule, entertain oral argument if he/she desires, and issue a binding, written decision on this tribunal,â Mulrooney added, in part.
Mulrooneyâs shock choice to pause the long-awaited rescheduling hearings follows the Jan 6 allegations that the DEA is demonstrating a sharp âbiasâ against rescheduling marijuana as federal health regulators recommended it do in August 2023.
âDEA has corrupted this hearingâ
In an email to MJBizDaily on Monday, Robert Head, the chair of Hemp for Victory, said only the DEA is to blame for any delay in downgrading marijuanaâs status under federal law from Schedule 1 to Schedule 3 of the Controlled Substance Act.
Schedule 1 puts marijuana in the same category as heroin and LSD with no medical value.
âThe DEA has corrupted this hearing,â Head said, adding that ensuring the hearing is fair is more important than a rapid resolution.
More on rescheduling
Marijuana rescheduling judge blasts DEA for âunprecedented, astonishingâ behavior
Colorado shut out of marijuana rescheduling hearings by âbiasedâ DEA, filing alleges
Finance experts mixed on prospects of marijuana capital infusion post-rescheduling
âBiggest thing, everâ: Marijuana rescheduling recommendation hailed
âWe owe it to the tens of thousands of activists who have worked on this issue over the past 50 years.
âWe owe it to the veterans who overdosed and committed suicide because all they had was pharmacotherapy from the VA. We owe it to the people of this country to call out this corruption.
âIf this new administration is really concerned about rooting out corruption, they should look into why the DEA is afraid of reclassifying marijuana to Schedule 3, and I donât think it has to do with public safety.â
doomed
2 weeks ago
Home / Finance
Opportunities abound with distressed marijuana businesses â but use caution
Omar Sacirbey
January 9, 2025
Because there is a dwindling number of states that havenât legalized medical and/or recreational marijuana, it is easy to be fooled into believing opportunities to get a cannabis business license would likewise be shrinking.
Opportunities abound, however.
The question is, where?
Often in mature markets such as California, Colorado, Michigan, Oregon and Washington state, many marijuana businesses that initially thrived are now struggling.
The owners of distressed businesses often put their licenses up for sale, presenting opportunities to entrepreneurs and investors aspiring to break into or expand in the marijuana industry.
While many cannabis businesses with potential can be had on the cheap, others might pose significant risk to their new owners.
How do you distinguish between a diamond in the rough and a disaster?
Seattle-based Heidi Urness and New Orleans-based Rudy Cerone, attorneys with the McGlinchey law firm, walk the MJBizDaily audience through the process:
How do businesses end up getting âdistressedâ in the first place?
Rudy Cerone: The main reasons businesses become distressed is because they donât know the market. It is easy to grow bunk and fall flat.
They spend too much money on capex (capital expenditures), on fixed expenses, on operating expenses, but they donât know what their revenue streams are going to be.
Theyâre scaling up, and their revenue stream canât support their ongoing operations.
So, they donât know their market.
Itâs probably the biggest reason why a business would start to fail.
Heidi Urness: A lot of folks in the cannabis industry spend a lot of money without understanding what the return is going to be.
We see astronomical amounts spent on build-outs and similar things before you even see any revenue at all in some cases.
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Where can aspiring license buyers find distressed businesses for sale?
Heidi Urness: When it comes to the licenses, itâs a state-specific and municipality-specific game.
There are some websites that will list licenses for sale, but thatâs not the same as just listing a property for sale.
Itâs very difficult to find a distressed license.
Some folks will make Craigslist ads or go on various platforms that are starting to advertise this, because itâs hard to find a purchaser for a license because of all the nuance and due diligence that needs to go into it.
Folks do get desperate and will post their licenses on various platforms, especially ones that are popping up, which are really no more than just website frames someone puts up.
Otherwise, you really have to have your finger on the pulse of the industry.
Are there some states where you are more likely to find distressed assets more than others?
Heidi Urness: We see a lot in Oregon and Michigan.
That is largely born of the fact that when they first stepped into the cannabis industry â the state as a whole â they had unlimited numbers of licenses.
So there was just a huge amount of licenses, a huge amount of competition, and a lot of people were just squeezed out by economic factors, not by anything that they did wrong, no violations on the licenses.
So, where you see that oversaturation of licenses and then the attrition, youâll know that thereâs probably some licenses hitting the secondary market.
What are the most important things that someone seeking to buy cannabis business licenses needs to know about that permit?
Heidi Urness: Thereâs all sorts of things that you need to know about it, in terms of the obligations that it already has on it, contractually, but also its enforcement history.
You can give me a license that otherwise would be worth a million dollars, but in some states if it has two violations in the last two years, a third violation means I forfeit the license. That thingâs probably worth $10,000.
Every state has some sort of threshold where when you commit a certain amount of violations, you will eventually lose the license.
Every asset will have its own kind of unique considerations of the risks associated with it. The license is just one of them.
What you want to see from these folks is that there is no litigation. That thereâs been no threat of litigation. Thereâs been no cease-and-desist. Thereâs no challenge to the intellectual property.
Because that is a risk that comes along with that particular asset, that someone could challenge.
And, ultimately, that IP could be worth nothing if itâs found that thereâs superior user.
How do you vet distressed businesses that are for sale?
Rudy Cerone: If youâre looking to buy a business in distress, they would be setting up a virtual data room which has all the documents that you would need to be informed about the business.
They should hire what we call the chief restructuring officer, or someone thatâs a third party whoâs not emotionally invested in the business and is skilled at putting together all of the information thatâs needed.
You do an NDA (nondisclosure agreement) with any prospective purchasers.
When you are vetting financials, what are you watching for?
Rudy Cerone: I like to see audited financial statements to the extent that theyâve got them.
If theyâre big enough, theyâre going to have audited financial statements from their CPA that says this is the profit-and-loss statement, this is the cash-flow statement, this is the balance sheet â and get those as up to date as soon possible, so you see the raw numbers.
And then you get all of the documents necessary to operate the business and licenses and that kind of stuff.
Vendor contracts are essential.
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If youâre looking to get into cannabis, how safe or not is it to get into it by buying a distressed license?
Rudy Cerone: As far as getting free and clear, thatâs the primary way.
Youâre buying assets, and not necessarily, in most cases, an operating business.
Youâre buying the land, the assets to grow, the lease at which the dispensaries are operating, the inventory.
Youâre bringing your own expertise in order to operate those assets as a thriving business.
Youâre not acquiring the business as a going concern.
Youâre usually acquiring the assets that are necessary to operate a going concern business.
If you know your market, you know your competition, you donât overspend, and youâre experienced, and you just need the assets to expand on in a particular place, itâs probably not risky at all.
But if youâre a novice, and youâre looking to pick up mom and popâs distressed dispensary, youâre probably going to have trouble.
doomed
2 weeks ago
D.E.A. Is your friendâŚ😂
Colorado shut out of marijuana rescheduling hearings by âbiasedâ DEA, filing alleges
author profile pictureBy Chris Roberts, Reporter
January 8, 2025
The U.S. Drug Enforcement Administration rejected a September request from Colorado officials to participate in the United Statesâ historic marijuana rescheduling process.
Thatâs one example of the âbiasâ that should disqualify the agency from overseeing the hearings, according to claims made in a filing submitted Monday to the DEAâs chief administrative law judge, John Mulrooney II.
The decision to exclude Colorado, where sales of adult-use marijuana began more than a decade ago, but include authorities from states without regulated cannabis such as Nebraska and Tennessee demonstrates why the agency should be removed from the proceedings, the filing claims.
Mondayâs filing is the latest effort by designated participants Village Farms International and Hemp for Victory to disqualify the DEA, which has âobstructed the rulemaking process at every turn.â
The two companies are among the 25 parties selected by the DEA in October to participate in hearings before Mulrooney.
Bias and conflict of interest claimed at DEA
Village Farms, with headquarters in Florida and British Columbia, and Hemp for Victory, based in Texas, claim to have found evidence of bias and âundisclosed conflicts of interest and extensive ex parte communications by DEA that must be disclosed and made part of the public record.â
According to the filing, the evidence includes:
An â(u)ntimely, biased, and legally-improperâ filing made by the DEA on Jan. 2 that âechoes anti-rescheduling talking pointsâ such as âmarijuana has a high abuse potential and no currently accepted medical use,â and denies other participants adequate time to review and respond, in violation of federal procedure.
Concealment of âroughly 100 requestsâ to participate in the hearings that were rejected, including Coloradoâs, and its âcommunication and coordination with at least one anti-rescheduling DP, the Tennessee Bureau of Investigation.â
Reliance on the Community Anti-Drug Coalitions of America, a DEA ââpartnerâ on matters related to fentanyl,â which is a âpotential conflict of interest.â
The DEAâs Jan. 2 filing includes evidence and testimony that its two witnesses intend to introduce in future hearings, which are scheduled to resume Jan. 21 and extend into March.
The 66-page, undated and unsigned DEA document bears âan unmistakable resemblance to the positions the anti-reschedulingâ witnesses have taken, according to Mondayâs filing.
âThis new evidence confirms that DEA has worked to stack the deck against the Proposed Rule by favoring anti-rescheduling parties in its selection of hearing participants and obstructing a balanced and thoughtful process based on science and evidence,â Mondayâs filing noted.
Colorado governor requested role in hearing
Mondayâs filing â written by attorney Shane Pennington, the witnessesâ counsel and a partner at Porter Wrightâs Washington, D.C., office who specializes in administrative law, attempts to show in greater detail how the agency âdisfavored pro-rescheduling parties, including DEA researchers, doctors, scientists, and the State of Colorado, which has competently regulated a medical marijuana program for over a decade.â
Colorado Gov. Jared Polis requested in a Sept. 30 letter to DEA Administrator Anne Milgram that the state be allowed to present ârelevant, unique, and non-duplicativeâ data that shows âmarijuana having medical utility and abuse potential far below opioids.â
In his letter â a copy was attached to Mondayâs filing â Polis expressed a fear that any federal rescheduling decision made without considering Coloradoâs position âwill introduce significant risksâ to state-regulated marijuana frameworks, including the ability to regulate sales as well as collect tax revenue.
But, according to Mondayâs filing, Milgram âbarred Colorado from presenting that dataâ by ignoring Polisâ letter and declining to extend the state an invitation.
Instead, the DEA mentioned Colorado 27 times in its Jan. 2 filing, part of an effort âto cast doubt on the success of the decade-old state-regulated program,â according to Mondayâs claims.
âYet DEA makes no attempt to engage with the positive evidence from Colorado and summarily rejected Coloradoâs request to participate in this hearing,â the filing continued.
âAnd now, secure in the knowledge that the Administratorâs secret selection process has guaranteed that Colorado will not be able to respond or defend itself, DEA reveals its plan to smear the stateâs successful regulatory program in these historic and very public proceedings.â
The DEA also allowed the state of Nebraska, which is attempting to thwart a medical marijuana ballot initiative approved by its voters in November, and the Tennessee Bureau of Investigation to participate in the proceedings.
Both states are opposed to rescheduling, according to their filings.
A âsham orchestrated by the DEAâ
These revelations show âthese proceedings are a sham orchestrated by the DEA to stonewall cannabis from being transferred to a Schedule III designation,â Village Farms founder and CEO Michael DeGiglio said in a statement Monday.
As MJBizDaily has reported, both the initial roster â selected by Milgram â as well as further decisions by Mulrooney appear to tilt the list toward witnesses who oppose moving marijuana from Schedule 1 of the Controlled Substances Act to Schedule 3.
Mulrooney, who rejected a Nov. 18 motion by Village Farms and Hemp for Victory to remove the DEA from the rescheduling hearing based on agency employeesâ communications with another anti-cannabis designated participant, has yet to respond to Mondayâs filing.
The motion asked Mulrooney to delay the hearings until communications between the DEA and witnesses are released and, potentially, further action taken.
It also asks Mulrooney to compel the DEA to âto declare whether it supports or opposesâ marijuana rescheduling.
âAt a minimum, (Mulrooney) should postpone the upcoming hearing to allow for an investigation into DEAâs conduct, including its ex parte and undisclosed communications with anti-rescheduling organizations and other entities,â Mondayâs filing adds.
BottomBounce
2 weeks ago
Tilray Brands, Inc. $TLRY
Top Institutional Holders
Holder Shares Date Reported % Out Value
Morgan Stanley 10.04M Sep 30, 2024 1.11% 14,052,991
Tidal Investments, LLC 9.71M Sep 30, 2024 1.07% 13,588,648
Susquehanna International Group, LLP 7.65M Sep 30, 2024 0.85% 10,708,058
Highbridge Capital Management, LLC. 5.19M Sep 30, 2024 0.57% 7,267,399
Vanguard Group Inc 3.9M Sep 30, 2024 0.43% 5,462,596
Blackrock Inc. 2.65M Sep 30, 2024 0.29% 3,706,868
Aristeia Capital, LLC 2.44M Sep 30, 2024 0.27% 3,411,678
Bank of Montreal /CAN/ 2.18M Sep 30, 2024 0.24% 3,047,108
Invesco Ltd. 2.05M Sep 30, 2024 0.23% 2,865,692
Geode Capital Management, LLC 2M Sep 30, 2024 0.22% 2,803,555
https://finance.yahoo.com/quote/TLRY/holders/
BottomBounce
2 weeks ago
Tilray Brands, Inc., $TLRY a lifestyle consumer products company, engages in the research, cultivation, processing, and distribution of medical cannabis products in Canada, the United States, Europe, Australia, New Zealand, Latin America, and internationally. The company operates through four segments: Beverage Alcohol, Cannabis, Distribution, and Wellness. It also offers medical and adult-use cannabis products; purchases and resells pharmaceutical and wellness products; and produces, markets, sells, and distributes beverage alcohol products, and hemp-based food and other wellness products. The company offers its products under the Tilray, Aphria, Broken Coast, Symbios, Navcora, Charlotte's Web, Montauk Brewing, Shock Top, 10 Barrell, Breckenridge Brewery, SweetWater Brewing, Breckenridge Distillery, Blue Point Brewing, Broken Coast, Redecan, XMG, Manitoba Harvest, CC Pharma, Good Supply, Solei, Mollo, Chowie Wowie, Original Stash, Canaca, RIFF, Bake Sale, The Batch, HEXO, Alpine Beer Company, Green Flash, Hiball Energy, Redhook Brewery, Square Mile Cider, Widmer Brothers Brewing, Runner's High Brewing Company, Happy Flower, and Fresh Hemp Foods brands. It sells its products to retailers, wholesalers, patients, physicians, hospitals, pharmacies, researchers, and governments, as well as direct to consumers. The company was formerly known as Tilray, Inc. and changed its name to Tilray Brands, Inc. in January 2022. Tilray Brands, Inc. is headquartered in Leamington, Canada. https://finance.yahoo.com/quote/TLRY/profile/
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