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October 13 2023,
THE BIG IDEA
Hi all,
Hope you’re enjoying the fall conference season. Don’t forget to send your High Society event pics to hello@weedweek.com.
In the newsletter:
- How California’s cannabiz defeated a labelling bill
- Herbl brands and receiver still at impasse
Rock on,
Alex
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WEEDWEEK CALIFORNIA PRO
SCOOP: Herbl brands and receiver at impasse as window closes
In a meeting last week, the receiver for defunct distributor Herbl, and the former Herbl brands owed accounts receiveable payments, made little progress over how to pursue the funds from retailers. The receiver has indicated that today would be the deadline before it gave the AR debt to a collection agency.
As WeedWeek previously reported, the receiver had asked the brands to pay 10% of what they were owed to fund collection efforts. Darren Story, CEO of Coastal Farms, said he was open to the idea of paying some amount upfront, but the receiver
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How California’s cannabiz defeated a labeling bill
California Gov. Gavin Newsom vetoed A.B. 1207, a bill that would have banned cannabis companies from using images of people in their labelling and marketing materials. Though watered down from a previous version of the bill, the industry argued the burden would fall especially hard on equity businesses and craft farmers, for whom identity is central to their brand.
Supporters of the bill framed it as a way to reduce the number of children going to the ER after overconsuming edibles.
In his veto statement, Gov. Newsom wrote, that while he “deeply appreciates…”
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In case you missed it…
SCOOP: Eaze lawyer grew “increasingly concerned” over Calif. partnerships
In May Eaze CEO Cory Azzalino received an email from the company’s general counsel that cast doubt on the legality of some of its partnerships. “PRIVILEGED AND CONFIDENTIAL” the lawyer wrote. “I am growing increasingly concerned about how our CA depots are run.”
“We haven’t gotten caught yet, but this could end up being a major issue at some point soon.”
Asked by WeedWeek about the agreements and email, CEO Azzalino wrote, “Eaze’s subsidiary Stachs LLC is licensed as an Owner (per [California Department of Cannabis Control] (DCC) regulations) at all thirteen of our delivery locations. Any operations governed by Management Services Agreements [MSAs] have been disclosed to the DCC. Any claim to the contrary is inaccurate.”
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SCOOP: March and Ash sued Cookies over hemp-derived products
PLUS: Is another big California brand selling hemp-derived products?
QUICK HITS
Business:
- The Wall Street Journal looked at some of the industries challenges.
- Supply chain competition for the vape market is heating up.
Green Market Report - Adam Wilks, CEO of Carma HoldCo. parent of Mike Tyson and Ric Flair’s brands talked to Essential Sports.
- A federal court declined to dismiss a bankruptcy case for the former parent of the Lowell Farms brand.
- Dispense, which creates e-commerce menus for dispensaries, shared a survey of 200 consumers.
- The Philly Inquirer profiled Ethos CEO Gibran Washington, a rare Black MSO CEO. (Ethos’ site.)
- Weed “breathalyzer” company Hound Labs has a machine designed to discourage use at work.
10News - (Re) insurance company Canopius has a new cyber insurance product for the industry.
Intelligent Insurer - Michael Johnson, CEO of seed-to-sale software provider Metrc, whose customers are state governments, said it is becoming more focused on the experience for companies forced to use its system.
State and local:
- Colorado proposed removing a requirement to use RFID chips to track plants, which could save businesses a lot of money.
Regulated State - Alaska moved to rout hemp-derived products through the state cannabis regulator.
Alaska Beacon - Oregon released the findings of an investigation into whether an audit of the state regulator was inappropriately influenced by donors to Shemia Fagan (D), the Secretary of State who was forced to step down.
Willamette Week - Georgia will soon be the first state to allow MED sales at pharmacies.
AP - McMormick, maker of Old Bay Seasoning, threatened to sue a Maryland company for trademark infringement.
Baltimore Sun - Early voting is underway for Ohio’s REC initiative, the only one on the ballot this year.
AP - Alabama threw out a lawsuit filed by MSO Verano seeking to reinstitute its MED license.
Alabama Daily News - Most Arizona equity shops missed a key opening deadline.
MJBiz - New Mexico may hike license fees. But the state market is suffering from overproduction.
KRQE
Health and science:
- A study found cannabis users had better Covid outcomes than nonusers.
Marijuana Moment - A study found topicals might reverse some hair loss.
GreenState
International:
- Five years after legalization, the Canadian government found the industry is still struggling.
City News - Amid the Gaza crisis, the Israeli government extended MED licenses.
Cannabis Health - What Thailand’s new coalition government means for the industry.
CNBC
Books:
- Only a few days left to back the Kickstarter for cartoonist Brian “Box” Brown’s book Legalization Nation. He recently interpretted WeedWeek‘s story adding detail to the death of Trulieve worker Lorna McMurrey.
Fun and interesting:
- Pumpkin spice weed, from Native Roots in Colorado.
- Bottomless brunch restaurants in California are charging “vomit fees.“
- Ophelia Chong on the Sisterhood of Rolling Joints.
- In Greece, sheep broke into a greenhouse and went to town on the MED.
NY Post
CALIFORNIA HITS
State:
- The state is opening a new $15M equity grant round for local jurisdictions.
Marijuana Moment
Business:
- Founder and CEO Caroline Yeh posted on why she’s folding Tsumo Snacks. She notes that she’s spent several months researching the D9 hemp market: “I can without a doubt say that this is where the growth is happening.”
Local:
- A Sacramento City Council meeting got a bit loud after workers protested the ordered closure of a Natura industry complex, for fire code violations. The company has sued the city.
SacBee - LA shuttered an unlicensed shop.
Law360 - The LA Times checked out the first Latinas in Cannabis Summit in Echo Park.
- The Humboldt County Growers Alliance filed a lawsuit alleging the supporters of March 2024 ballot initiative Measure A, collected signatures on the basis of misleading language about what it would mean for small growers. If passed, growers fear the “Karen initiative” would be devastating for their businesses.
SF Gate - WEHOville met Kurt Haaker, manager of Statehouse-owned Urbn Leaf, the first pot shop on the Sunset Strip.
Company milestones:
- Operator Unrivaled is reorganizing as Blum Holdings.
Community:
- Santa Barbara Co.-based Autumn Brands said it would contribute 50% of October net proceeds from delivery sales to the Breast Cancer Resource Center.
Coastal View - The Source dispensary and Wyld are partnering to give away Formula 1 Las Vegas tickets.
8NewsNow
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