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Hi all,

Congratulations to the Humboldt Co. cannabis community for their big win over Measure A, an environmental proposal that growers feared would have threatened the future of growing in the heart of the Emerald Triangle.

In the newsletter:

• Catalyst win could boost California operators

Read up,

Alex

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CATALYST RULING COULD BOOST MANY CALIF. BUSINESSES

A recent legal win for fast-growing retailer Catalyst Cannabis could bring some relief to California cannabis businesses saddled with local payments created under the auspices of local “development agreements” (DAs)

Last month a judge in Stanislaus County (Modesto) granted Catalyst a preliminary injunction to block the city of Patterson “Apricot Capital of the World” from shutting down Catalyst’s shop follows a long-running dispute over “public benefits” payments.”

If Catalyst prevails, and the preliminary injunction is a strong indication that it will, according to Armada Law managing partner Robert Finkle, “This decision has the potential to impact all local California jurisdictions that opted to implement cannabis programs using DAs.”

Read the story

Federal:

• President Biden touted marijuana reform in his state of the union address, the first time a president has done so.
  Marijuana Moment
• In what’s now something of an annual rite, Senate Majority Leader Chuck Schumer (D-N.Y.) says he wants to pass banking reform this year.
  Marijuana Moment

Business:

• A new initiative supported by industry group U.S. Cannabis Council enables customers to donate their change to legalization efforts. Cartoonist Brian “Box” Brown mocked the idea.
  Marijuana Moment
• In response to Pax’s patent infringement lawsuit against vape rival Stiiizy, The U.S. International Trade Commission said it will investigate the industry. It stressed that it hasn’t made a decision about the merits of PAX’s case.
  Tobacco Reporter
• After Trulieve claims to have developed a proprietary method to sidestep industry-hated tax rule 280E, Boris Jordan, chairman of rival MSO Curaleaf mused about just not paying it.
  Bloomberg
• A ruling went Cookies’ way in the lawsuit over the Manhattan dispensary where the brand used to have a clothing store. 
• Accountants with AB FinWright argued that “tax stacking” harms the industry and drives up prices.
  Bloomberg
• Retail tech shop Alpine IQ acquired online menu provider Dispense for undisclosed terms.
• Canna Law Blog shares five red flags for cannabiz investors.
• Retailer Planet 13 sold stock to raise $11.3M.
• Multistate edibles brand Wana is planning a European debut in Switzerland.
• Genetics company Phylos said is has completed an IRB-approved, double-blind clinical research study on the effects of minor cannabinoid THCV.
• Cookies Berner and partner Ashley Dee have a new son: Gilbert Anthony Milam Jr. Congratulations! 
• Seth Yakatan shares who he thinks is the Coca-Cola of weed.

State and local:

• Iowa Republican lawmakers seek to impose low-THC caps on hemp-derived products.
  Axios
• Hemp companies sued New York cannabis regulators for rules limiting THC
• The manager of Oklahoma lab Havard Industries found widespread potency inflation.
  OK News 4
• Virginia Gov. Glenn Youngkin(R) could allow a Virginia REC bill to become law without signing it.
  Green Market Report
• New Jersey now has more than 100 dispensaries. 
• Hawaii’s senate passed a bill to legalize REC.
  Honolulu Civil Beat
• Florida lawmakers sent a far reaching ban on hemp-derived intoxicants to Gov. Ron DeSantis.
  Tampa Bay Times
• A 19-year old died in an explosion and fire at a Michigan vape factory.
  WXYZ

Health and science:

• A federal judge in Vermont determined MED use isn’t protected under the Americans with Disabilities Act.
  National Law Review
• In Canada, a study linked legalization to declining beer sales.
  Marijuana Moment

Fun and interesting:

• Master wine sommelier Ian Cauble assessed the house Pink Jesus strain at Sonoma Hills Farm.
• Ngaio Bellum rants that, “Weed is magic” and “Cannabis hates capitalism.”
  High Times

State:

• A Michigan man who has challenged residency rules in Sacramento and elsewhere, can proceed with his case in federal court.
  Northern California Record
• OB Rag goes through some bills before the legislature this year.
• State pot taxes are a “disaster, with no end in sight,” lawyer Griffen Thorne writes for Canna Law Blog.

Business:

• The receiver handling the distributor Herbl’s assets, unloaded three key lots, including the companies accounts receivable debt for $600,000, about seven cents on the dollar. According to a court filing, the brands left in the lurch declined to buy the right to collect on their debt.
  MJBiz
• Coastal Sun Farm exec Darren Story posted that he’s looking to sue the Department of Cannabis Control on behalf of growers overcharged for mixed light licenses.
• Lookout profiled Santa Cruz area Neatleaf, a startup providing AI and robotics for cultivators.
• A subsidiary of Blüm, which recently rebranded a Santa Ana dispensary from People’s to Blüm sued an interest holder in the People’s brand for allegedly stealing Blüm signage.
• MJBiz dives into a lawsuit filed by Mercy Wellness alleging corruption led to lower scoring applicants Solful and Jane receiving two licenses available in the wealthy wine country town of Healdsburg (Sonoma Co.). 
• Glass House said it would restate financial statements from between 2021 and 2023 with an “immaterial” impact on earnings.
  Cannabis Equipment News
• Forbes profiles operator A Golden State.

Local:

• Bay Area pot shops are closing as sales slump.
  SFGate
• There’s a petition to support a new shop from WAMM Phytotherapies and The Hook in Santa Cruz.
• Milpitas (Santa Clara Co.) adopted rules to allow MED delivery for the first time.
  SiliconValley.com
• California City (Kern Co.) voted to raise taxes on manufacturers and distrus.
  Antelope Valley Press

Company milestones:

• Sacramento-based real estate listings site 420 Property launched in Germany and Canada.
• Beverage brand Green Monké and Cookies partnered on a new 12 oz. 100 mg THC beverage, Original California Iced Tea Lemonade.
  
• Budtender incentive platform SparkPlug and ERP provider Distru partnered to support multi-state edibles brand Smokiez.

Job moves:

• Lobbyist Nara Dahlbacka was elected board president of the Lake County Cannabis Alliance.

Upcoming:

• The Emerald Cup has been postponed from May to August 17-18.