January 13 2023,
THE BIG IDEA
Starting today we’ve got a new feature: Poll of the Week. Scroll down to respond and check back next time for the results.
In the newsletter:
- A new bill to overturn 280E
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WHAT YOU MISSED IN WEEDWEEK CALIFORNIA PRO
Unrivaled sees lifeline in Cookies deal
Vertically integrated operator Unrivaled Brands has announced a deal to acquire two Cookies-branded stores. The deal represents a new direction for Unrivaled, formerly Terra Tech, which has struggled as it vacillated between strategies.
Unrivaled said it has binding letters of intent giving it 12-month options to purchase stores in Redding (Shasta Co.) and Oakland at a not yet determined price. Unrivaled also intends to enter into agreements to operate the stores for up to…
NEW AT THE WEEDWEEK JOB BOARD
COULD CONGRESS OVERTURN 280E?
Congress’s failure to pass SAFE banking during the lame duck session has many in the industry skeptical about any kind of federal reform, especially with Republicans now controlling the House. However, attorney Hilary Bricken, of Harris Bricken writes on the firm’s Canna Law Blog notes that new legislation from Rep. Nancy Mace, (R-S.C.) takes aim at industry hated tax rule 280E.
It will have to be filed for the new Congress, but the summary text would “amend the Internal Revenue Code of 1986 to allow deductions and credits relating to expenditures in connection with marijuana sales conducted in compliance with State law.”
Sounds simple enough, right? Well, there’s a reason why IRC 280E has never been amended to accommodate the cannabis industry. And that’s because such an amendment could have significant collateral damage for taxes related to illegal activities around Schedule I and II drugs. Plus, I doubt that the IRS and federal government are so keen to give up the massive windfall provided by IRC 280E without full federal legalization taking place first.
Of course, with the correctly tailored language and so long as enforcement can do its job with the IRS, miracles can happen. Public sentiment likely supports such a measure to ensure that the state democratic experiments persist without bankrupting cannabis companies. But it’s unlikely in my opinion.
- Industry has overtaken advocacy groups as the main funder of legalization efforts.
- The Parent Co. said it would restructure its relationship with Jay-Z.
- Green Market Report asks who’s the leading cannabiz company?
- PoS provider Blaze bought Tymber, an e-commerce platform for undisclosed terms.
- U.S. sales fell in November.
New Cannabis Ventures
- A California bong maker filed 347 lawsuits last year in a war on counterfeits.
- Security InfoWatch examined the state of industry security.
- Stock analyst Aaron Edelheit sees a looming weed shortage in California.
- California-based brand Lowell Farms said it had engaged Cannacord Genuity to explore a sale or other strategic options.
- mg Magazine takes a long look at the “promise and peril” of celebrity partnerships.
- Swami Select co-founder Nikki Lastreto wrote about surviving as a craft farmer.
- Flailing Canadian giant Tilray is exploring the fruit and beer markets. It’s stock is down about 98% since October 2018.
- You can reclose beer cans now.
State and local:
- Storms played havoc with licensees across California. There have been floods, product loss and some inaccessible operations.
- Sunburn Cannabis, which acquired MedMen‘s Florida assets, launched.
Green Market Report
- REC went on sale in Connecticut.
- Veterans are outraged over the lack of representation in New York State agencies.
NY Cannabis Insider
- Vogue checked out the vibes at New York City’s first pot shop.
- Minnesota lawmakers on the road to legalization. Maybe Wisconsin too?
- Ohio lawmakers have limited time if they want to legalize and prevent a REC ballot initiative in November.
- There’s a new REC push in Hawaii.
Health and science:
- Ending a four year case, the state supreme court ruled that a woman who used MED while pregnant had not abused or neglected her child.
- California ERs reported a huge spike in cannabis related ER visits by senior citizens.
- New guidelines recommend screening all surgery candidates for cannabis use. They may have more pain and other complications.
- A study found three in 10 Americans with chronic pain treat it with weed.
- A federal sentencing commission proposed new guidelines for judges that would treat past convictions more leniently. Many cannabis prisoners are serving longer sentences because of past convictions.
Fun and interesting:
- Resonate Blends said its Koan Cordials line would be the first beverage in a program from distributor Nabis designed to highlight boutique and equity brands.
- Las Vegas-based cannabinoid company Covalent has partnered with Florida-based Qredible, which calls itself the cannabiz’s “first blockchain-backed digital registry.“
- Mary Jones Soda, the Jones Soda spinoff, expanded to Washington state.
- Jushi opened its first Ohio shop in Cincinnati. It’s the MSO’s fifth state and 36th shop.
- MSO Schwazze named Todd Williams EVP, M&A and Real Estate; Steve Pear, President, Wholesale and Ken Diehl President, New Mexico.
- Five Harris Bricken attorneys were named global top 200 psychdelic lawyers.