The rollout of recreational cannabis in New York has faced yet another hurdle as a judge from the state’s Supreme Court has put a halt on all applications for business licenses to establish adult-use marijuana dispensaries. The judge cited inconsistent and unclear information from regulating officials. This recent setback adds to the challenges that have characterized the launch of legalized marijuana in New York.
The issue revolves around a program called the Conditional Adult Use Retail Dispensary (CAURD), managed by the Office of Cannabis Management (OCM). When the state legalized marijuana in March 2021, lawmakers and cannabis regulators initially announced that a portion of retail licenses would be reserved for small nonprofit organizations and individuals who had been adversely affected by the war on drugs.
This exclusion left out several potential marijuana businesses, including those with existing medical cannabis licenses, often owned by larger multistate operators. Some of these operators took legal action against the state earlier this year. Additionally, a group of service-disabled military veterans filed a lawsuit against the state, arguing that the CAURD program violates their rights and is unconstitutional because they were not eligible for permits.
As a response to this lawsuit, Judge Kevin Bryant, presiding over the State Supreme Court, issued an injunction on Aug. 7, 2023, which temporarily suspended all CAURD applications. This injunction was subsequently upheld on Aug. 18. While the OCM has granted licenses to a few hundred emerging CAURD businesses, records from the agency indicate that only 23 legal marijuana retail stores are operational in the state. Interestingly, more than 1,500 unlicensed cannabis retailers are currently operating exclusively in New York City.
Last week, a glimmer of hope emerged for certain applicants when the state released a list of 30 CAURD applicants that had made significant progress in the application process and were thus exempt from Judge Bryant’s order. However, in a subsequent ruling last week, Bryant noted that information from the OCM indicated that not all 30 applicants had fulfilled the necessary licensing prerequisites. As a result, he directed OCM to provide an updated list of potential injunction-exempt applicants under oath, planning a comprehensive, individualized order.
This series of events has taken many by surprise and left both applicants and observers feeling perplexed. Osbert Orduña, CEO of the Cannabis Place, which is in the process of applying for a CAURD license to operate in Queens, expressed disappointment in the recent developments. He emphasized that this setback has negative repercussions for small businesses, potential employees and cannabis consumers in New York — all affected by a lawsuit initiated by a small group of individuals.
These regulatory hiccups can be massively disruptive, and even established companies such as Tilray Brands Inc. (NASDAQ: TLRY) (TSX: TLRY) may possibly reconsider staying in a market that doesn’t have a reliable regulatory regime guiding operators, creating uncertainty about the stability of the rules under which they operate.
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CNW420 spotlights the latest developments in the rapidly evolving cannabis industry through the release of two informative articles each business day. Our 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. Articles are released each business day at 4:20 a.m. and 4:20 p.m. Eastern – our tribute to the time synonymous with cannabis culture. 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.
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Department of Justice and Public Safety peace officers in New Brunswick recently seized cannabis products from two locations in the province, one in Saint John and one in Moncton.
The raids also resulted in the seizure of psilocybin, contraband cigarettes, cash, and three arrests.
On August 29, officers executed a search warrant at Up Town Smoke West in Saint John at 391 Lancaster Ave, seizing 3,941 grams of dried cannabis, 801 grams of hashish, an undisclosed quantity of assorted cannabis products and edibles, and $7,065 in cash.
A press release says a 41-year-old man from Saint John and a 37-year-old woman from Passekeag could face charges. The investigation is ongoing.
Very little information on Up Town Smoke is available online. The company’s Facebook page was active until June of this year, with a recent comment referencing a raid. The website the Facebook page links to is no longer available, but an archive of the site from earlier this year lists a different address in Saint John. A Google street view of the Lancaster Ave location in June 2022 had signage for Up Town Smoke West.
On August 30, officers executed a search warrant at the L’Nuk Lounge in Moncton at 575 Main St. and seized 7,719.5 grams of dried cannabis, 690.4 grams of hashish, 171.3 grams of psilocybin (magic mushrooms), 246 grams of cannabis shatter, an undisclosed quantity of assorted cannabis products, edibles, contraband cigarettes, and $10,432 in cash.
Authorities say a 33-year-old man from Eel River Bar First Nation could face charges, and the investigation is ongoing.
A video shared on Facebook in May shows several store employees and First Nations representatives delivering a letter to the RCMP stating that the store is operating under the territorial rights, which they argue does not need a licence from the province. The store is located just a few doors down from an RCMP station.
Former National Assembly of First Nations Chief Del Riley also appears in the video, and has been working with many First Nations communities in Canada to make similar arguments of sovereignty for cannabis retailers on First Nations land.
The government of New Brunswick maintains that only Cannabis NB, the provincially-run cannabis branch in the province, and provincially licensed private retail stores are permitted to sell cannabis.
Planet 13 Holdings has announced a $48.9 million acquisition of VidaCann, a vertically integrated cannabis operator in Florida with 26 medical marijuana dispensaries. A recent news release revealed that both companies’ boards unanimously approved the total acquisition of VidaCann’s debt, cash and stock by Las Vegas-based cannabis firm Planet 13 Holdings.
The membership interest purchase agreement will see Planet 13 Holdings acquire an operational greenhouse cultivation facility, an analytical and processing laboratory, and three product lines, including licensed brands Stanley Brothers, Tikun Olam and the VidaCann house brand. The state-of-the-art facility is fully operational and capable of supporting more than two times the volume of cannabis that flows through VidaCann’s and Planet 13’s dispensary networks combined.
According to Planet 13’s co-CEO Larry Scheffler, VidaCann is among the 10 largest marijuana operators in retail size in the entire state of Florida. Furthermore, Scheffler noted that the Florida-based cannabis company has developed a reputation for producing high-quality products and providing great customer service. Acquiring the company will allow Planet 13 to “significantly accelerate” its entry into the Florida market, Scheffler said, and also allow it to capture a greater share of the market.
Planet 13 currently has 13 retail operations in the state of California along with 4 leased retail operations in Florida; the company is also set to launch a retail store in Illinois.
Scheffler said that Planet 13 was partly drawn to the acquisition deal by the prospect of teaming up with VidaCann’s “amazing management team” as it has built VidaCann into the ninth largest marijuana company in the state with little outside capital and limited debt. Scheffler added that VidaCann’s management’s ability to run a lean and efficient operation would be a strategic and cultural fit to Planet 13’s philosophy of launching retail operations in other states.
The Las Vegas cannabis operator has outlined a set of goals to achieve after the acquisition deal is complete that will build VidaCann into an even stronger company next year, Scheffler concluded.
According to the purchase agreement, which received unanimous approval from both VidaCann managers and the Planet 13 Board of Directors, the acquisition deal should close in Q1 2024. Upon the deal’s closing, VidaCann will be granted the right to nominate a fifth member to Planet 13’s board of directors. As per the proposed agreement, former VidaCann shareholders will have a 26% pro forma ownership on a fully diluted basis in Planet 13 Holdings.
As these major players in the cannabis industry expand their footprint in different markets across the country, they inevitably create opportunities for other ecosystem actors such as Innovative Industrial Properties Inc. (NYSE: IIPR).
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CNW420 spotlights the latest developments in the rapidly evolving cannabis industry through the release of two informative articles each business day. Our 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. Articles are released each business day at 4:20 a.m. and 4:20 p.m. Eastern – our tribute to the time synonymous with cannabis culture. 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.
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Colorado officials will hold online hearings to gather public opinions on Colorado’s efforts to implement psychedelic decriminalization measures. The state became one of the first regions in the country to pass psychedelic policy after Colorado voters approved a measure to decriminalize several psychedelics for adults aged 21 years and older, setting the state on a path to legalize and regulate psilocybin “healing centers.”
Colorado is now seeking public views on implementing psychedelic decriminalization in the state, specifically how the public believes a regulated psychedelic program should look and function. This includes how to train first responders to address psychedelic-related medical emergencies, how Colorado will educate the public about hallucinogens, and how the state will test for psychedelics to ensure residents are compliant with regulations.
Officials will hold one-hour online sessions on Sept. 5, 12, 22, 27, and Oct. 3 to hear public opinions on a variety of issues related to psychedelic legalization in the state. This also includes how to train first responders to address psychedelic-related medical emergencies, how Colorado will educate the public about hallucinogens, and how the state will test for psychedelics to ensure residents are compliant with regulations.
Officials will also take public opinions on how to regulate psychedelic cultivators and manufacturers as well as how Colorado could rely on historical and traditional psychedelic cultivation practices while crafting psychedelic regulations. Regulators hope to gather comments from both the general public and people associated with the psychedelic industry to help inform their regulation efforts.
The senior director of the Department of Revenue’s Natural Medicine Division and Marijuana Enforcement Division Dominique Mendiola wondered what indigenous community members might be thinking now that the state is actively working to implement psychedelic legalization.
While interest in psychedelics among the general public has exploded in recent years thanks to an influx of studies associating psychedelics with mental-health benefits, indigenous communities in the Americas and other parts of the world have used psychedelics for more than a thousand years. Members of some Indigenous communities have protested their lack of involvement in state and nationwide discussions regarding psychedelics, their potential mental health benefits and the multibillion industry they could potentially spawn.
The Department of Revenue (DOR) will host the online sessions and use the data it gathers to inform its efforts to craft cultivation and manufacturing rules for the nascent psychedelic industry. The DOR will also provide first responders with the training they will need to deal with psychedelic-related emergencies and track adverse health events and law enforcement incidents related to psychedelics, consumer protection claims, impacts on behavioral health and the impact of psychedelic legalization on Colorado’s healthcare system.
As the authorities in Colorado seek input on how they can implement the law on psychedelic decriminalization, enterprises such as Compass Pathways PLC (NASDAQ: CMPS) are making headway in developing psychedelic-based formulations that could be approved by the FDA and availed via doctors’ prescription.
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Die Erste Cannabis-Universität der Welt: Oaksterdam University
With alumni around the world, Oaksterdam University is thrilled to be included in the September 2023 issue of THCENE, a Berlin-based magazine about cannabis culture. The four-page feature Q&A with Oaksterdam University Chancellor Dale Sky Jones begins:
“With the USA still considered the “land of opportunity,” it is not surprising that the world’s first cannabis university was founded here. Cannabis has been studied in Oakland since 2007 – from its cultivation and medical use to the details of corporate governance. We spoke to the head of the university, Dale Sky Jones, among others. About the past, present and future of Oaksterdam University …”
THCENE: Germany has announced that it will decriminalize the recreational adult use of cannabis and allow people to grow up to 3 plants, cannabis social clubs, and the possession of up to 25 gram of dried flower. What’s your opinion on this development?
Dale: I am extremely proud to say that I feel like Oaksterdam is an instrumental part of Germany’s adult use legalization effort. In September 2022, the German Federal Health Committee delegation visited Oaksterdam to learn how we’ve approached legalization and consider our recommendations for policy reform. I was honored to organize and present with a group of key stakeholders including City of Oakland representatives, and welcoming them at City Hall. We also focused on sustainability and reasonable regulations like home grow, because the five political parties in the delegation could have gone uber restrictive, and I feel we changed their hearts and minds to view cannabis as a safer alternative in their community than alcohol and to choose evidence-based community health and safety over the fear and stigma perpetrated under the failed policy of prohibition. I was so pleased to see the first legalization steps for Germany. Moments like this are my hit of hope!
A cannabis producer in Victoria, BC, is trying to generate support for its application with the city for a cannabis farmgate licence.
The Victoria Cannabis Company (VCC), located at 340 Mary Street in Victoria West, has filed an application with the province for its producer retail store licence, also called a cannabis farmgate licence, but still needs municipal approval for the location. If approved, the application will go back to the province for final approval.
The province began accepting applications for producer retail stores (PRS) in November 2022. The program allows micro cultivators, standard cultivators, and nurseries to sell their own products in a retail cannabis store at their own production facilities or sites, as well as an array of products from other producers.
Only two producers have applied so far, with the first, ShuCanna located in Salmon Arm, receiving their licence in August 2023. The province charges an application fee of $7,500, plus a first-year licensing fee of $1,500 and an annual renewal fee of $1,500.
“We are not located in an industrial park on the outskirts of town. Our store is just minutes from the sea wall in Lime Bay and has the potential to become a tourist destination.”
Kyp Rowe, VCC President
The VCC’s farmgate application comes before Victoria City Council on September 14 and has posted a petition to show community support for their application.
“By signing below, the undersigned provides support for the proposal and, specifically, encourages Council to approve the retail sales of cannabis via the farmgate proposed for 340 Mary Street,” reads the petition, in part.
Kyp Rowe, president of VCC, tells StratCann their goal is to create a dynamic storefront that can show off not only their own unique cannabis products from cannabis grown on-site, but also other small craft producers in BC. VCC’s location is near the E&N Rail Trail, a popular bike path.
“We are very excited at the opportunity to be among the first potential Production Retail Store locations in British Columbia,” says Rowe. “What sets us apart from other locations is the amount of frontage traffic we have in Vic West. We are not located in an industrial park on the outskirts of town. Our store is just minutes from the sea wall in Lime Bay and has the potential to become a tourist destination.
“Our goal will be to focus on British Columbia producers as well as featuring our own flower grown and packaged on-site. Now, more than ever, small provincial craft producers need an opportunity at the retail level to showcase their products. With all of the pay-to-play for shelf space and the discount retail chains, more and more small producers are getting edged out by large corporations. We want to be able to tell BC’s rich craft cannabis story, and we feel this new farmgate store will give us this opportunity.”
The rezoning application for VCC was first heard by council in May 2023 and passed first and second reading on August 3. The September 14 meeting is a public hearing, after which the application will go to third and final reading. The application says the majority of products it carries, if licensed, would be produced on-site. A previous council meeting referenced concern about competition from a nearby cannabis retailer.
Two other provinces, Ontario and New Brunswick, also have cannabis farmgate licenses, with a handful of stores licences in each province.
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