Police in Quebec have arrested six and seized a large quantity of cannabis following a series of seven searches of places and five vehicles in Shawinigan, Montreal and Saint-Armand.
In an announcement on November 8, the Sûreté du Québec’s Cannabis Smuggling Investigation Service, in collaboration with the Montreal Police Department and partner municipal police services, said the arrests and searches were in connection with illicit cannabis operations.
Police actions started with the dismantling of a hashish production laboratory operating in Saint-Armand, near the US border, followed by the arrest of six men between the ages of 34 and 71.
Police seized
390 kg of hashish
1,475 kg of cannabis (Kief and buds)
23 kg of hashish concentrate (wax, oil)
2 L of GHB
Over CAD$185,000
Over USD$10,000
1 vehicle seized as an infringing property
Police say the operation deployed 70 police officers, including dog handlers from the Sûreté du Québec.
Noya Holdings Inc. and Noya Cannabis Inc. have applied for creditor protection in an initial order posted on November 6, 2024. Noya’s monitor in the case is BDO Canada Limited.
As part of the cannabis company’s CCAA filing, the court has ordered that all relevant Health Canada and cannabis excise licences held by Noya Cannabis Inc. (NCI) and related companies shall be preserved and maintained during the pendency of the stay period. This included NCI’s ability to sell cannabis inventory, as well as any applicable licence renewals.
The balance of the relief sought by the applicants will be heard in a comeback hearing by the court on November 15, 2024. According to documents online, the applicants’ are insolvent and cannot meet their liabilities as they become due. They have determined that a CCAA proceeding is required to complete a sale process and otherwise address their current challenges by restructuring their operations.
Noya’s known list of creditors shows nearly $10.3 million owed in secured credit and $2.7 million owed to unsecured creditors. Secured creditors are Lending Stream Inc., Terrascend Corp (Gage Growth Corp), and 1955185 Ontario Inc. Unsecured creditors include the Canada Revenue Agency, Health Canada, Pure Sun Farms, High Tide, Kiaro Brands, Ignite International Brands (Canada) Ltd., HiFyre, and many others.
Noya Holdings Inc. (NHI) is the parent company of NCI and 2675383 Ontario Limited (267). First licensed in 2017, NCI holds a cannabis cultivation and processing licence, and 267 holds a micro-cultivation cannabis licence. Both are located in Ontario. The applicants currently employ 18 employees.
Lending Stream Inc. is the applicants’ senior secured creditor. As of August 31, 2024, NHI was indebted to Lending Stream pursuant to a convertible debenture in the approximate amount of nearly $1.9 million. According to records, the owner of Lending Stream is the brother of the applicant’s owner. 1955185 Ontario Inc. is another secured creditor that provided loans to NHI. As of September 30, 2024, 195 had loaned approximately $3.8 million to NHI. The numbered company is owned or controlled by the parents or relatives of the owner of the applicants.
The applicants are also facing various contingent claims in excess of $5 million, including from Pure Sunfarms Corp., Ignite International Brands (Canada) LTD, and 10805696 Canada Inc. o/a Mauve & Herbes. These claims, say documents filed online, are mostly related to contractual disputes and are unsecured.
Noya and its related companies (the applicants) are up-to-date with payments to the Canada Revenue Agency with respect to employment insurance and Canada Pension Plan deductions but owe excise tax remittances and HST remittances.
The financial race surrounding the recreational marijuana legalization initiative in South Dakota was highly competitive, with both opponents and supporters gathering nearly equal resources. This set the scene for an intense debate while voters prepared for the November 5 ballot. Both sides have collectively raised around $915,000, showcasing the deeply split opinions across the state on the matter.
Advocates for Initiated Measure 29, which aims to legalize the use and sale of cannabis for those aged 21 and over, have secured about $458,000 in funding. The main group pushing for the measure, known as the Yes on 29 Ballot Committee, has raised $436,000, with $300,000 contributed by cannabis-related businesses. The largest single donation was $100,000 from GL Partners, a Rapid City-based medical cannabis dispensary.
On the opposing front, the Protecting SD Kids Ballot Question Committee accumulated about $457,000. A large share of this funding came from individual contributions, including a notable $61,400 donation by Brad Wheeler, a local manufacturer. Additionally, businesses within South Dakota collectively contributed $71,000 to the opposition’s campaign.
The significant financial backing on both sides highlights the importance of Initiated Measure 29, one of seven ballot measures voters will decide on this November. So far, the Yes on 29 campaign has spent approximately $217,000 on its advocacy efforts, while the opposition has spent a more substantial $371,000 on initiatives to prevent the measure’s approval.
The financial records show an ongoing trend where the marijuana industry heavily invests in efforts to support legalization measures across the country. Meanwhile, those against such measures often rely on local businesses and grassroots donations to bolster their campaigns.
As election day neared, the close fundraising figures signal a tight race. Both sides stepped up their campaigns to influence voters, aware of the potential long-term effects on South Dakota’s cannabis policy.
Neighboring states also contribute to the broader conversation about cannabis reform. Montana, for instance, has already seen more than $118 million in tax revenue from its legalized marijuana market over two years. North Dakota, looking at similar economic incentives, is proposing Measure 5, which promises job creation and financial gains. In contrast, Nebraska stands apart, lacking any legalization measures and emphasizing the varied regional perspectives on cannabis policy.
Without any restrictions on donation amounts, South Dakota’s campaign on this issue represents a significant and contentious vote, making November 5 a pivotal day for the state’s future approach to cannabis regulation.
Businesses like Innovative Industrial Properties Inc. (NYSE: IIPR) with interests in the cannabis space in other markets will be hoping that the will of the people wins the day once vote counting is completed.
About CNW420
CNW420 spotlights the latest developments in the rapidly evolving cannabis industry through the release of an article each business day at 4:20 p.m. Eastern – a tribute to the time synonymous with cannabis culture. The concise, informative content serves as a gateway for investors interested in the legalized cannabis sector and provides updates on how regulatory developments may impact financial markets. If marijuana and the burgeoning industry surrounding it are on your radar, CNW420 is for you! Check back daily to stay up-to-date on the latest milestones in the fast -changing world of cannabis.
To receive SMS alerts from CNW, text CANNABIS to 888-902-4192 (U.S. Mobile Phones Only)
Please see full terms of use and disclaimers on the CannabisNewsWire website applicable to all content provided by CNW, wherever published or re-published: https://www.CannabisNewsWire.com/Disclaimer
A recently re-elected BC MLA is raising eyebrows with the province’s legal cannabis industry following a recent comment she made on social media platform “X” that said cannabis legalization is fuelling the illicit market.
“Great work by police confiscating drugs marketed to kids,” wrote Sturko on X. “More proof that legalization does not eradicate the illicit market, but instead fuels more drugs & crime.”
Neither Sturko nor the BC Conservatives replied to a request for comment on the issue or if the party itself is supportive of the province’s legal cannabis industry as of press time. Sturko is a former Surrey RCMP officer.
Sturko was first elected to the riding of Surrey South in September 2022. Surrey, the second largest municipality in BC after Vancouver and eleventh in Canada, has a traditionally socially conservative voting base. The city itself only recently began the process of allowing companies to apply for a handful of cannabis store licences, one of the last prohibition-era holdouts in a region that has otherwise embraced cannabis legalization.
“It’s disappointing to see that. Whether this is in BC or any other province, the intention of legalization was to create a safe and regulated product and keep it out of the hands of youth. By raiding illicit operators, really what they’re trying to do is take away that unregulated product that is shown time and again to be untested and have toxic ingredients.”
Cory Waldron, Mood Cannabis
The issue highlights one of the challenges facing the cannabis industry in BC, where a large portion of the voting public is at best uninterested in industry concerns, if not still outright hostile or dismissive to them.
Cory Waldron, the owner of Mood Cannabis, a cannabis retailer in Nanaimo, BC, and president of the Licensed Retail Cannabis Council of BC (LRCCBC), says he thinks the MLA misunderstands the issue.
“It’s disappointing to see that,” says Waldron. “Whether this is in BC or any other province, the intention of legalization was to create a safe and regulated product and keep it out of the hands of youth. By raiding illicit operators, really what they’re trying to do is take away that unregulated product that is shown time and again to be untested and have toxic ingredients.”
The comments, he says, reflect a broader issue in BC politics where neither major party seems to be listening to the concerns of the legal industry. The industry is at a “critical point,” he explains, in terms of the sustainability of legalization. Companies are facing considerable challenges and not getting support from the government, be it provincial or federal.
Screenshotvia the platform formerly known as Twitter
“I think both parties [in BC], the Conservatives and NDP for the most part, don’t really want to deal with the problems that we’re seeing in BC. Not only as retailers but at the producer level as well. The file is kind of treated like the bad kid in the corner. We’re forgotten.”
“Statements like these make me wonder if our policymakers are completely unfamiliar with how our industry works. The popularity of unregulated edibles is evidence that we need better regulations, not proof that legalization fuels more crime.”
Walker Patton, BC Cannabis Alliance
Walker Patton, from the BC Cannabis Alliance, representing cannabis producers in BC—especially craft producers—shared a similar sentiment.
“Frankly, it’s disappointing,” Patton tells StratCann. “Statements like these make me wonder if our policymakers are completely unfamiliar with how our industry works. The popularity of unregulated edibles is evidence that we need better regulations, not proof that legalization fuels more crime. Or maybe I’m being naive in taking a comment like that at face value.”
When elected in 2020, Sturko replaced BC NDP MLA Mike Starchuk, who served as MLA for Surrey Cloverdale from 2020-2022. Before that time, Starchuck was a member of Surrey City Council from 2014-2018. In 2018, he came out in support of cannabis legalization, noting his municipal party, Surrey First, had a plan for limited cannabis retail in the city rather than an outright ban.
Ridings in BC like Surrey Cloverdale are often dominated by more socially conservative politics, which highlights one of the challenges the legal industry faces in the province. The provincial government under the BC NDP have for years now been largely unresponsive to many industry concerns regarding provincial regulations and policies and their impact on the health of the legal cannabis sector in the province.
With an opposition apparently still stuck in the land of reefer madness and a voting public that appears to support this sentiment, there is little incentive for the BC NDP government to listen. MLA Sturko’s comments shouldn’t be surprising but instead should serve as another healthy reminder of how much further the industry has to go to shift this narrative among voters.
Even six years into legalization, there are still many who outright oppose the legal industry or, at the very least, don’t prioritize the industry’s concerns.
Auxly Cannabis Group Inc. reported $33.3 million in net revenue in its third quarter of 2024, a new company record and an increase of 18% year-over-year and 14% quarter-over-quarter.
The cannabis company’s net income was $3.3 million, down from $32.6 million in the same quarter in the previous year. However, its Q3 2023 net gains were mostly driven by the gains on the extension of the maturity of its Imperial Brands Debenture. Excluding the gains on that extension, net income in the most recent quarter increased by $17.5 million year over year.
About three quarters (76%) of the company’s cannabis sales originated from sales to British Columbia, Alberta and Ontario. Auxly sells under the brands Parcel, Back Forty, Foray. Doescann, and Kolab Project, and provides wholesale bulk sales of dried cannabis to various licensed producers in Canada.
Dried flower retail sales increased by over 12% compared to the previous quarter. Pre-roll retail sales increased by nearly 19% quarter-over-quarter. Auxly branded products represented approximately 50% of the top ten vape SKU’s nationally.
Hugo Alves, CEO of Auxly, commented: “Our continued focus on efficient revenue growth and enhanced profitability has delivered another record-breaking quarter of financial results, highlighted by an 18% year-over-year increase in net revenue and record adjusted EBITDA of $8.3 million.
“Our commitment to providing consumers with exceptional products that help them live happier lives enabled us to grow national market share in our core product categories of dried flower, pre-rolls and vapes; and has elevated Back Forty to the #1 brand in Ontario by dollars sold. We remain focused on creating long-term shareholder value. I am excited for the future and proud of the tremendous efforts of our talented and dedicated team in delivering these results.”
Auxly operates Auxly Charlottetown in PEI, where the company does most of its cannabis 2.0 product development and Auxley Leamington where it grows and processes dried flower. In May 2024, the company sold its Auxly Ottawa facility for $1.7 million and applied the proceeds from the sale to support its ongoing operations. The Company does not currently have any active international operations.
Featured image of Auxly’s Leamington, Ontario facility
Canopy Growth Corporation reported nearly $74 million in revenue in its second fiscal quarter of 2025, but a net loss of $128.3 million.
The second quarter of 2025, covering the three months ended September 30, 2024, saw a year-over-year decline in revenue, from $82 million in Q2 2024, but a decrease in losses, which were $324.8 million for the three months ended September 30, 2024.
Net revenue for the Canadian cannabis producer was $63 million, with $18.4 million coming from Canadian adult-use sales, $18.7 coming from Canadian medical cannabis sales, $10.1 million coming from international cannabis sales, and $15.9 million from its vaporizer company, Storz & Bickel.
Net revenue from Canadian adult-use cannabis sales was down 24% from $24.1 million in the same quarter last year, while Canadian medical cannabis revenue was up 16% from $16.2 million. International medical sales revenue was up 12% from $9 million in Q2 2024, while revenue from Storz & Bickel was up 32% from $12 million.
Canopy attributes the decline in revenue from the non-medical cannabis market in Canada to lower sales volumes, “which were partially affected by supply constraints for certain products as a result of financial difficulties with our contract manufacturers and lower sales velocity due to continued increase in price competition.”
The company attributes the year-over-year increase in revenue from domestic medical cannabis revenue to an increase in the average size of medical orders placed by its customers, which it says is primarily due to an increase in the percentage of insured customers and a more extensive assortment of cannabis product choices offered to its customers.
Canopy’s international sales increased from Q2 2024 because of the increased shipments of flower products in Europe, especially Poland and Germany, offset by a decline in Australian medical business due to greater competition in that market.
The company also incurred nearly $11 million in excise tax in the most recent quarter.
“We delivered a solid second quarter led by strong growth across our Storz & Bickel, Canadian medical, and European cannabis businesses and we are well positioned to accelerate momentum in the second half of our fiscal year,” said David Klein, Canopy’s CEO. “In addition, we remain highly optimistic about the momentum building within Canopy USA as this strategy was uniquely designed to succeed independent of the need for federal legalization.”
(CNW) Smiths Falls, Ont. – Canopy Growth Corporation today announces its financial results for the second quarter ended September 30, 2024. All financial information in this press release is reported in Canadian dollars, unless otherwise indicated.
“We delivered a solid second quarter led by strong growth across our Storz & Bickel, Canadian medical, and European cannabis businesses and we are well positioned to accelerate momentum in the second half of our fiscal year. In addition, we remain highly optimistic about the momentum building within Canopy USA as this strategy was uniquely designed to succeed independent of the need for federal legalization.” – David Klein, Chief Executive Officer
“We’ve demonstrated another quarter of progress towards profitability driven by improvement in gross margins as well as a reduction in SG&A expenses. With expected improvement in top-line growth in the second half of the fiscal year and continued cost discipline, we believe we remain on a path to achieve positive Adjusted EBITDA at the consolidated level in the coming quarters.” – Judy Hong, Chief Financial Officer
Second Quarter Fiscal Year 2025 Financial Summary
Advertisement
(in millions of Canadian dollars, unaudited)
Net Revenue
Gross margin percentage
Adjusted gross margin percentage1
Advertisement
Net loss from continuing operations
Adjusted EBITDA2
Free cash flow3
Reported
Advertisement
$63.0
35 %
35 %
$(131.6)
$(5.5)
$(56.4)
vs. Q2 FY2024
(9 %)
100 bps
200 bps
11 %
54 %
16 %
Net revenue in Q2 FY2025 decreased 9% compared to the second quarter ended September 30, 2023 (“Q2 FY2024”). Excluding net revenue from businesses divested during the prior fiscal year, net revenue increased 3%.
Consolidated gross margin increased by 100 basis points (“bps”) to 35% in Q2 FY2025 compared to Q2 FY2024 primarily due to the realized benefit of the Company’s cost savings program as well as a shift to higher-margin medical cannabis sales.
Operating loss from continuing operations was $46MM in Q2 FY2025, compared to a loss of $7MM in Q2 FY2024, with last year’s results benefitting from the sale of a facility in Smiths Falls, Ontario.
Adjusted EBITDA loss was $6MM in Q2 FY2025, representing a 54% improvement year-over-year, driven primarily by the realized benefit of the Company’s cost savings program.
Free Cash Flow was an outflow of $56MM in Q2 FY2025, representing a 16% improvement compared to Q2 FY2024, primarily driven by a reduction in cash interest expenses.
Cash and short-term investments balance increased to $231MM at September 30, 2024, from $195MM at June 30, 2024.
1 Adjusted gross margin is a non-GAAP measure, and for Q2 FY2025 excludes $nil of restructuring costs recorded in cost of goods sold (Q2 FY2024 – excludes $0.7MM of restructuring cost reversals recorded in cost of goods sold). See “Non-GAAP Measures” and Schedule 4 for a reconciliation of net revenue to adjusted gross margin.
2 Adjusted EBITDA is a non-GAAP measure. See “Non-GAAP Measures” and Schedule 5 for a reconciliation of net loss from continuing operations to adjusted EBITDA.
3 Free cash flow is a non-GAAP measure. See “Non-GAAP Measures” and Schedule 6 for a reconciliation of net cash used in operating activities – continuing operations to free cash flow – continuing operations.
Canada Cannabis Highlights
Canada cannabis net revenue was $37MM in Q2 FY2025, representing a decrease of 8% compared to Q2 FY2024. While Canada medical cannabis net revenue increased 16% over Q2 FY2024, Canada adult-use cannabis declined 24% in part due to an interruption in the supply of Wana edibles.
Several initiatives are expected to strengthen the Company’s Canada adult-use cannabis business in the second half of fiscal year 2025 (“2H FY2025”). These initiatives include:
The re-introduction of Wana edibles which is expected to drive growth in the edibles category, supported by investments in in-market activations.
Continued efforts to elevate the quality and variety of our Tweed and 7ACRES flower and pre-roll joint product offerings, as well as increased commercial investments to expand distribution and improve velocity of our core brands. The Company is seeing this investment pay off with reinvigorated performance of Tweed Kush Mintz as well as promising in-market performance of new strains Tweed Cherry Acai Mints, which is now carried in all markets nationally, and 7ACRES Ultra Jack.
A robust new product pipeline with a particular focus on the growth categories of Vape, Pre-Roll Joints and Concentrates. Over the coming weeks, the Company expects to launch an innovative infused pre-roll joint product in both adult-use and medical channels.
International Markets Highlights
International markets net revenue was $10MM in Q2 FY2025, representing an increase of 12% over Q2 FY2024, with strong growth in Poland and Germany partially offset by a decline in Australia.
International markets cannabis gross margins increased 1,700 bps to 47% during Q2 FY2025 compared to Q2 FY2024 primarily due to a shift in sales mix to higher-margin Poland as well as a lower overall cost structure.
Agreements that the Company has signed with multiple EU-based cultivators are expected to increase the supply of cannabis flower to fuel growth in EU medical cannabis markets over the coming quarters.
Storz & Bickel Highlights
Storz & Bickel delivered net revenue in Q2 FY2025 of $16MM, representing a 32% increase over Q2 FY2024 driven primarily by strong growth in Germany following regulatory reform, significant improvement in U.S. sales and the sell through of the remaining inventory of the Mighty device that is being phased out.
Ongoing demand in Germany driven by active marketing campaigns are expected to drive continued growth in the German and the broader European market.
Additional distribution gains in the U.S., driven by new affiliate programs as well as traditional holiday season marketing and sales initiatives are expected to benefit Storz & Bickel sales in 2H FY2025.
Canopy USA Highlights
Canopy USA, LLC (“Canopy USA“) has completed the acquisition of Wana Brands (“Wana”) with the closing of Mountain High Products, LLC subsequent to the end of Q2 FY2025, paving the way for brand integration and growth.
Wana launched the ShopWanderous.com online marketplace for hemp-derived THC and CBD products, expanding their product offering to a new national consumer base.
Lemurian, Inc. (“Jetty”) is expected to launch new solventless All-In-One vapes in California and Colorado over the coming weeks, and New York early in calendar year 2025.
The acquisition of Acreage Holdings, Inc. (“Acreage”) by Canopy USA remains on track to close no later than the first half of calendar year 2025.
Second Quarter Fiscal 2025 Revenue Review4
(in thousands of Canadian dollars, unaudited)
Q2 FY2025
Q2 FY2024
Vs. Q2 FY2024
Canada cannabis
Canadian adult-use cannabis5
$18,388
$24,087
(24 %)
Canada medical cannabis6
$18,689
$16,179
16 %
$37,077
$40,266
(8 %)
International markets cannabis7
$10,060
$8,977
12 %
Storz & Bickel
$15,854
$11,991
32 %
This Works
$-
$7,074
(100 %)
Other
$-
$1,287
(100 %)
Net revenue
$62,991
$69,595
(9 %)
The Q2 FY2025 and Q2 FY2024 financial results presented in this press release have been prepared in accordance with U.S. GAAP.
Webcast and Conference Call Information
The Company will host a conference call and audio webcast with David Klein, CEO and Judy Hong, CFO at 10:00 AM Eastern Time on Friday, November 8, 2024.
Adjusted EBITDA is a non-GAAP measure used by management that is not defined by U.S. GAAP and may not be comparable to similar measures presented by other companies. Management believes Adjusted EBITDA is a useful measure for investors because it provides meaningful and useful financial information, as this measure demonstrates the operating performance of businesses. Adjusted EBITDA is calculated as the reported net income (loss), adjusted to exclude income tax recovery (expense); other income (expense), net; loss on equity method investments; share-based compensation expense; depreciation and amortization expense; asset impairment and restructuring costs; restructuring costs recorded in cost of goods sold; and charges related to the flow-through of inventory step-up on business combinations, and further adjusted to remove acquisition, divestiture, and other costs. Asset impairments related to periodic changes to the Company’s supply chain processes are not excluded from Adjusted EBITDA given their occurrence through the normal course of core operational activities. The Adjusted EBITDA reconciliation is presented within this news release and explained in the Company’s Quarterly Report on Form 10-Q for the quarterly period ended September 30, 2024 (the “Form 10-Q”) filed with the Securities and Exchange Commission (“SEC”).
Free cash flow is a non-GAAP measure used by management that is not defined by U.S. GAAP and may not be comparable to similar measures presented by other companies. Management believes that Free Cash Flow presents meaningful information regarding the amount of cash flow required to maintain and organically expand our business, and that the Free Cash Flow measure provides meaningful information regarding the Company’s liquidity requirements. This measure is calculated as net cash provided by (used in) operating activities less purchases of and deposits on property, plant and equipment. The free cash flow reconciliation is presented within this news release and explained in the Form 10-Q filed with the SEC.
Adjusted gross margin and adjusted gross margin percentage are non-GAAP measures used by management that are not defined by U.S. GAAP and may not be comparable to similar measures presented by other companies. Management believes that Adjusted Gross Margin presents meaningful and useful financial information as this measure provides insights into the gross margin performance of the business. Adjusted gross margin is calculated as gross margin excluding restructuring and other charges recorded in cost of goods sold, and charges related to the flow-through of inventory step-up on business combinations. Adjusted gross margin percentage is calculated as adjusted gross margin divided by net revenue. The adjusted gross margin and adjusted gross margin percentage reconciliation is presented within this news release and explained in the Form 10-Q filed with the SEC.
4 In Q2 FY2025, we are reporting our financial results for the following four reportable segments: (i) Canada cannabis; (ii) international markets cannabis; (iii) Storz & Bickel; and (iv) This Works. On December 18, 2023, the Company completed the sale of This Works and as of such date, the results of This Works are no longer included in the Company’s financial results.
5 For Q2 FY2025, amount is net of excise taxes of $8.9MM and other revenue adjustments of $1.3MM (Q2 FY2024 – $10.8MM and $0.5MM, respectively).
6 For Q2 FY2025, amount is net of excise taxes of $2.1MM (Q2 FY2024 – $1.7MM).
7 For Q2 FY2025, amount reflects other revenue adjustments of $nil (Q2 FY2024 – $0.1MM).
Cannabis delivery is a challenge. There are very low margins and a lot of extra steps to take. While it was initially received with fanfare in the provinces that have allowed cannabis stores to deliver cannabis, many retailers now would rather not touch it at all.
However, at least one retailer in downtown Toronto says he thinks he has found a way to not only make cannabis delivery work but also make it the main focus of his business.
Mike Dunn and his partner Brooke Silversides are the founders of 1922 Cannabis, located just off Queen Street, a half block from Moss Park in Toronto. Licensed in June 2020, Dunn says he faced many of the same challenges other cannabis stores face in the highly saturated Toronto market with high rents and tight margins.
He was able to distinguish 1922 by curating quality products, and when cannabis delivery became an option for cannabis shops in Ontario in 2022, he and his partner saw a chance to extend that curated experience through delivery. (Ontario first began temporarily allowing cannabis delivery and curb-side pick-up in early 2020 due to COVID-19 restrictions. In early 2022, the rules were made permanent).
“Our focus is on being fast and free, which we achieved by leaning into eco-friendly technology, and that’s the proof of concept we’ve brought to life,” says Dunn.
“Our journey has been a natural evolution. We began as a retail operator, then saw an opportunity to lean into delivery as this new on demand economy grew. Partnering with a world-class technology provider like Uber Eats allowed us to refine and scale our buyer experience to create a highly efficient delivery service. Now, that delivery service is evolving further into a logistics-focused company, expanding what we can offer our clients and the market.”
“Our journey has been a natural evolution. We began as a retail operator, then saw an opportunity to lean into delivery as this new on demand economy grew.”
Where many of his peers have found frustrations with delivery—namely the added costs for a potentially negligible increase in sales, if at all—Dunn says he and Silversides leaned into a streamlined, curated menu and fast delivery service that appears to be paying off—the business recently celebrated 10,000 cannabis deliveries in the Toronto area in the past year.
One of the ways 1922 has been able to become so successful with deliveries is by simplifying the menu and buying experience, Dunn thinks. Instead of layers of menus and categories and choices, he says he believes consumers—his customers at least— want fewer choices, not more.
Dunn says he can cut unnecessary expenses by consistently carrying quality products and building up a core customer base through his retail store who trust that it will always be a good product no matter what they purchase. And by moving most of his sales to delivery, he can operate with an efficient level of store staff.
“It’s become too complicated to buy weed. It’s like rocket science. So, if you’re able to establish trust through repetition, then they trust your service and product. You want to get to the point where they ask you to just bring them stuff. I have maybe 30 customers where that’s my relationship with them now.”
“We’re almost reverting back to old school dealers,” he chuckles. “‘Just get me some nice weed’. And our customers know that we do.”
“Now we’ve taken geography out of that equation, you don’t have to be in our neighbourhood to get that experience from us. We can bring it to you.”
A key to that success, he says, has also been mastering his online presence to ensure new customers can find him, especially in a sea of illegal online stores with highly sophisticated web presence and SEO.
Partnering with Uber Eats, which began offering the product listings for cannabis stores on their app in October 2022, as well as Canadian retail data program Breadstack, were also key to this.
“Buying on Uber Eats is the easiest way to buy weed in the world. Partnering with a world-class technology vendor, I’ve learned so much in terms of how to refine our buyer experience.”
Delivering almost everything himself on an E-bike (he’s done 8,000 of the 10,000 deliveries) has helped keep costs low and also helped ensure fast delivery times, even in the often highly congested downtown Toronto area.
“We’re almost reverting back to old school dealers.”
Ideally, he sees the future of 1922 Cannabis as focussing almost entirely on delivery. Retail and staffing are costly in a space like Toronto, and he sees an emerging demand economy that he sees consumers quickly moving to.
If the regulations allowed it, he would like to operate smaller low-cost retail locations in the city that he could use as delivery hubs for his growing client base. He says he’s talked to the provincial regulator, the AGLC, about the issue but hasn’t seen any movement yet.
Still, he sees it as inevitable. Retail is tough, and Dunn sees the economy is moving to a delivery economy, saying he sees it worth three-quarters of a million dollars by 2027.
“People would just rather have their cannabis delivered to them. They order everything else online; they get groceries online, and presents online. Ordering some cannabis is no different.”
A recently conducted analysis has determined that workers in the hospitality and food service industries are some of the most common consumers of marijuana. Workers in extraction and construction, as well as individuals in media, sports, entertainment, arts and design occupations also reported relatively high rates of past-month marijuana use.
The analysis was conducted by investigators at the Centers for Disease Control and Prevention and is based on data from the agency’s Behavioral Risk Factor Surveillance System. This survey, which primarily focuses on behaviors and health conditions, started collecting data from respondents about their occupation status and employment in 2013.
For their analysis, the investigators excluded responses from individuals who had been employed for less than a year, were self-employed, or worked for wages.
In total, they included data from 128,615 individuals from the states of Tennessee, Alaska, South Carolina, Colorado, Rhode Island, Mississippi, Florida, North Dakota, Idaho, New Hampshire, Illinois, Montana, Minnesota, Georgia, and Maryland.
The results showed that those least likely to use cannabis were workers in education and libraries, healthcare providers, and law enforcement. By industry, groups with the lowest rates of marijuana use were utilities, public administration and management of enterprises and companies.
The investigators also observed a broad variation in marijuana use across occupations and industries, ranging from 29.7% among travel and tour guides, to 0.5% among workers in law enforcement. This is in addition to finding that the overall weighted prevalence of past-month marijuana use in the states included was approximately 10.7% for employees aged 18 and above.
Furthermore, they observed above-average prevalence of the drug’s use in a number of occupation and industry groups which historically have high rates of fatalities and injuries, like logging, hunting, and fishing.
In their report, they called attention to the fact that their results were almost equal to estimates from a separate survey, which found a 13.0% past-month use rate among those aged 12 and above. The investigators added that restricting their analysis to employed adults may have contributed to their lower estimates.
Additionally, only two of the total states included in the sample had legalized recreational marijuana during the 2016 to 2020 study period.
With regard to public policy, the investigators highlight that their findings may help decrease the adverse impact of marijuana consumption and possibly have implications for drug policies in the workplace. They note that their results could be used to frame future research and policy discussions.
As more information becomes known about the specific groups that are most likely to use recreational marijuana, enterprises like Software Effective Solutions Corp. (d/b/a MedCana) (OTC: SFWJ) could leverage that information to make customized products for those groups.
NOTE TO INVESTORS: The latest news and updates relating to Software Effective Solutions Corp. (d/b/a MedCana) (OTC: SFWJ) are available in the company’s newsroom at https://cnw.fm/SFWJ
About CannabisNewsWire
CannabisNewsWire (“CNW”) is a specialized communications platform with a focus on cannabis news and the cannabis sector. It is one of 70+ brands within the Dynamic Brand Portfolio @ IBN that delivers: (1) access to a vast network of wire solutions via InvestorWire to efficiently and effectively reach a myriad of target markets, demographics and diverse industries; (2) article and editorial syndication to 5,000+ outlets; (3) enhanced press release enhancement to ensure maximum impact; (4) social media distribution via IBN to millions of social media followers; and (5) a full array of tailored corporate communications solutions. With broad reach and a seasoned team of contributing journalists and writers, CNW is uniquely positioned to best serve private and public companies that want to reach a wide audience of investors, influencers, consumers, journalists and the general public. By cutting through the overload of information in today’s market, CNW brings its clients unparalleled recognition and brand awareness. CNW is where breaking news, insightful content and actionable information converge.
To receive SMS alerts from CNW, text CANNABIS to 888-902-4192 (U.S. Mobile Phones Only)
Please see full terms of use and disclaimers on the CannabisNewsWire website applicable to all content provided by CNW, wherever published or re-published: https://www.CannabisNewsWire.com/Disclaimer
Be on alert for Propganda in the news cycle, as we are in a S-election year. For the voter, it’s time to choose ‘the lesser of two evils.’
In the article, Curb Your Enthusiasm, the propaganda of “Safety Testing” for toxic metals in vaccines is featured:
…to challenge the use of “toxic metals” in vaccines…. at a time where vaccine science has finally advanced enough that said metals – used as “adjuvants” to stimulate a stronger immune response – are no longer required.
By focusing only on the use of “toxic metals” in vaccines… ensures ultimately the integrity the vaccine programme remains in tact.
But look at the timing: the damage has already been done.
The establishment now has little to lose by allowing the whistle to be formally blown, now the aims of the vaccination programme (to subdue fertility, to lower IQ, to create lifelong customers for Big Phama) have been completed for so many millions – and now that they have an alternative that doesn’t require these adjuvants.
Under the subject heading vaccine Safety Testing, the concept of “safe vaccines” is propaganda.
Why? Because there is no such thing as a “safe vaccine.”
Moreover, the technology of mercury and aluminum in childhood CDC-approved injections has been long superseded by mRNA technology, i.e., nanotechnology, which was developed in the 1970s.
The development of vaccines and the lack of safety testing is tied to politics.
Politics and Propaganda
As we approach a new S-election, we have an opportunity to question the status quo and pick apart the Propaganda being fed to the masses. As hindsight is 20/20, let’s return to that year.
In 2020, The CDC and FDA rushed experimental EUA mRNA injections to market without requisite testing.
At the time, people were unaware that that stage had already been set to prevent ‘safety testing.’ The Emergency Use Authorized (EUA) C19 injections would be exempt from any clinical testing under statute 21 USC 360bbb-3(k), Authorization for emergency use of medical products, Relation to other provisions.
Four years later, after the fact, celebrity politicians claim that all vaccines (many more now mRNA) must be ‘safety tested.’
However, under the amended PAHPR Act, all EUA-Medical Countermeasures (vaccines) are “non-investigational,” exempt from all testing, monitoring and enforcement, outside current regulations.
I believe vaccines should be safety-tested. I don’t think we ought to be mandating vaccines for unwilling Americans unless we know precisely that that vaccine is helping people rather than hurting them.- Presidential Candidate 2024
Does this statement make sense knowing that: 1) all mandates are illegal; 2) under any emergency, no EUA vaccine can ever be tested; and 3) testing will be done using your Digital Twin?
Are people who refuse a digital ID considered “unwilling Americans?”
In an immoral game of propaganda, choosing the lesser of two evils has been made acceptable. Just play along.
The Politics of Acting
Hollywood and government are connected by a revolving door where actors become presidents (Ronald Regan), and presidents become film producers (Barak Obama).
we can draw extensive parallels between acting and politics – between Hollywood and The White House – because these are essentially the same people doing the same jobs (hence why so many politicians have a theatrical background).
They are skilled professional deceivers, embodying scripted characters on the world stage in order to captivate public attention and powerfully shape behaviour.
Gordon Johnson from Pixabay” width=”220″ height=”300″>Hollywood and D.C. are joined at the hip. They work together to promote the propaganda of Social Engineering. The father of Social Engineering is Ed Bernays who wrote his book, Propaganda in 1928. [This 120-page book can be read here].
Propaganda pushes a point of view (and behavior) of the Establishment, to control “public opinion.” If it’s propaganda, the elite will take on a burden for you because you are too dumb. Bernays false assertion that a group mind (hive mind) is more easily influenced and controlled, is found in this quote from Bernays’ book:
The conscious and intelligent manipulation of the organized habits and opinions of the masses is an important element in democratic society. Those who manipulate this unseen mechanism of society constitute an invisible government which is the true ruling power of our country. …We are governed, our minds are molded, our tastes formed, our ideas suggested, largely by men we have never heard of. This is a logical result of the way in which our democratic society is organized. Vast numbers of human beings must cooperate in this manner if they are to live together as a smoothly functioning society. …In almost every act of our daily lives, whether in the sphere of politics or business, in our social conduct or our ethical thinking, we are dominated by the relatively small number of persons…who understand the mental processes and social patterns of the masses. It is they who pull the wires which control the public mind. ― Edward Bernays, Propaganda
The Art of Propaganda
In the Art of Propaganda, a controversial ploy by manufacturers uses doctors to promote their products. If a physician claimed smoking tobacco was safe and beneficial to health, then who was anyone to question it?
As a sign of masculinity and health, no testing was ever required. No one mentioned carcinogens, or that Philip Morris and other tobacco companies had been using ammonia in their products for addiction.
The 1950s brought fears about smoking and health.
Then, in 1964, a report was released, meant to turn things around: Smoking and Health—Report of the Advisory Committee of the Surgeon General of the Public Health Service.
the findings of the 14-month study by the 10-member committee were blunt and unequivocal. Principal among the conclusions: “Cigarette smoking is causally related to lung cancer in men; the magnitude of the effect of cigarette smoking far outweighs all other factors,” and “it is a health hazard of sufficient importance to warrant appropriate remedial action.
The damage had been done, the addiction taken hold.
OpenClipart-Vectors from Pixabay” width=”318″ height=”272″>Today, masculinity, like the cigarette, is a thing of the past, because propagandists, have moved on to other products, such as those promoted by the CDC, (i.e., mRNA technology).
Recent Comments