Hi all,

We had a great conversation yesterday on the business of cannabis hospitality. Thanks again to Lauren Fontein, Jerred Kiloh,  and Scot Rutledge for joining us. Think WeedWeek should include you in a future virtual event? Drop me a line.

You’ll see High Society is back in today’s newsletter. I hope to run a special section following MJBizCon so take lots of pictures and send them along. And of course if you see me, say hi.

In the newsletter:

• Trulieve worker died of occupational asthma: report
• After chasing thieves, Calif. biz owner charged with attempted murder

The newsletter will be off for Thanksgiving. I’m deeply thankful for your ongoing support and interest in WeedWeek. Best wishes to all of you for a healthy and restful holiday.

Alex

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SCOOP: Grassdoor sued as delivery companies flail

A concentrate maker sued LA-based delivery service Grassdoor alleging lack of payment and fraudulent inducement. The suit highlights tough times for California delivery services.

Investors once got excited about cannabis delivery services and their Silicon Valley adjacent business models. But their mainstream equivalents like Uber Eats and DoorDash have struggled to maintain profitability, and that’s without the cannabiz’s baked in disadvantages.

Read the story…

The owner of licensed Santa Cruz, Calif. business Decibel Gardens, Derek Hubbard, was arrested and charged with four counts of attempted murder after he attempted to thwart a robbery.
SFGate

Hubbard, 36, arrived at the property around 4 a.m. after an alarm was triggered. He fired several shots from a handgun and rammed one of the getaway vehicles with a car.

Hubbard said the thieves, who have not been caught, shot back. He was released on bail today.

Hubbard’s facility has been targeted by burglars before, at least once this year. His arrest has triggered widespread outrage from California operators who say law enforcement has ignored the crime wave they’re facing.

Decibel Gardens posted video of the robbery on the business.

• Elliot Lewis, CEO of retailer Catalyst Cannabis, who reposted it, frequently posts videos of robbers targeting his and other businesses. Some are successful, some aren’t.

Read more at KSBW…

A report from state and federal regulators determined that 27 year old Trulieve worker Lorna McMurrey was the industry’s first occupational asthma reported fatality. McMurrey collapsed during a January 2022 shift at a factory in Holyoke, Mass and died days later at a hospital.

The report calls on the industry…

Don’t hold your breath

Federal:

• Congress put off renewing the farm bill for a year. The 2018 farm bill gave rise to the intoxicating hemp derived cannabinoid industry which is now roughly as big as the ~$25B state licensed cannabis industry. Both sides are paying close attention.
  MJBiz

Business:

• Multi state retailer Planet 13 said it can’t reclaim $21.5M from Santa Barbara, Calif. cash management firm El Capitan Advisors, which is registered with the SEC. Planet 13 alleges some of that amount was misappropriated. El Capitan recently lost an unrelated $35M lawsuit to Casa Verde Capital, the investment firm started by Snoop Dogg. El Capitan didn’t respond to a request for comment.
  The Deep Dive
• The SEC raised a red flag over ailing Canadian player Canopy Growth’s attempt to enter the U.S. market.
  MJBiz
• Snoop Dogg said he was quitting “smoke,” leading to speculation that he’s starting an edibles brand.
  CNN
• CNBC spoke to beverage brand Cann which is on track to hit $36M in annual sales. More: Read my profile of the company from last December.
  WeedWeek
• Cheech & Chong opened three re-branded shops in Massachusetts.
  MassLive
• Attorneys at firm Troutman Pepper weighed in on the pros and cons of using RFID tags to track product.
• Very upscale edibles brand Rose Los Angeles has a new collaboration with Virgilio Martinez, the chef behind Peru’s Central, recently rated the best restaurant in the world.
  SFGate
• MG Magazine asked ‘What’s blocking hospitality?‘

State and local:

• Pennsylvania Gov. Josh Shapiro (D) cited said REC legalization in Ohio as “another reminder” that the Keystone State should take the plunge.
  Marijuana Moment
• New York regulators know out of state brands aren’t playing by the rules. Also, the license deadline is today.
  NY Cannabis Insider
• A top Massachusetts regulator resigned, contributing to ongoing disarray.
  Talking Joints Memo
• Rhode Island fired back at a lawsuit alleging state law forced the plaintiff company into an unfair labor agreement. A similar lawsuit has been filed in California.
  Law360, WeedWeek
• There was a huge bust of illegal product in Oklahoma.
• Michigan suspended licenses held by the makers of Muha Meds after its  products couldn’t be traced to regulated plants.
  Detroit Free Press
• Georgia awarded its last four MED licenses after years of delay.
• Maine authorities found widespread product contamination.
  MJBiz
  
• Montana regulators agreed to a 60-day injunction against raising license fees.
  Ganjapreneur
• University of Nevada Las Vegas launched a cannabis policy institute.
• Thrive Cannabis Marketplace said it would open Las Vegas’ first licensed consumption lounge, Smoke and Mirrors, this year.
  KLAS
• A Mississippi MED shop owner sued the state alleging it censors him from advertising.
  AP
• Connecticut businesses are struggling to get licensed.
  Hartford Business

Crime:

• The Virginia mother of a six-year old boy who shot and seriously wounded his teacher was sentenced to 21 months for using marijuana while owning a gun. She awaits a separate sentence for felony child neglect.
  AP
• Poker player Shawn Sheikhan was sentenced to four years for running an illegal cannabis business.
  Casino.org

R.I.P.

• Chrissy Visco, an entrepreneur who was the first woman to receive a Pennsylvania MED license, died of breast cancer at 52.
  Chestnut Hill Local

International:

• Spain has a patchwork of cannabis laws similar to America’s, and it’s causing similar problems, Politico reports.

Fun and interesting:

• There are no “White Jews,” argues Cannabis Jew magazine.

State:

• Attorney Jason Horst posted that it appears like a federal appeals court will tell a district court that it can not abstain from deciding whether residency requirements in Sacramento’s equity plan violate the U.S. Constitution’s dormant commerce clause.
• Rolling back environmental protections won’t help the industry, argue an academic and a former president of the California Fish and Game Commission.
  CalMatters

Business:

• Following a solid quarterly report, Glass House CEO Kyle Kazan thinks the operator can capitalize on California’s market contraction. Investor Aaron Edelheit discussed the quarter with management.
  Green Market Report
• Vape brand Dosist was acquired by Final Bell and said it would soon expand to Florida and New York.
• MedMen reached an $877,000 settlement on rent owed in Pasadena.
  Law360
• Asset-lite California brand Old Pal talked national expansion with Forbes.

Local:

• Santa Monica’s first dispensary is expected to open next year.
  Los Angeles Magazine
• Some Emerald Triangle growers are relocating to Sonoma Co. for its cooler climate, renowned for growing grapes.
  KCRA
• San Jose OK’d longer opening hours for pot shops.
  Silicon Valley Business Journal
• Supporters and opponents of Measure A, the Humboldt Co. ballot initiative that growers fear would wipe them out, squared off at a public forum in Arcata.
  Lost Coast Outpost, Times-Standard
• Dispensaries are thriving in Chico.
  Enterprise-Record
• A contributor to the Eureka Times-Standard called for cannabis greed to be curbed.
• The local industry wants Santa Cruz to become a pot tourism destination.
  Lookout
• A Sacramento man complained there’s nowhere to smoke in the city.
  CBS

Crime:

• LA Times investigative reporter Paige St. John discussed the complicated word “cartel.”

Company milestones:

• Ball Family Farms is releasing a strain with screenwriter Lena Waithe.
• As part of an ongoing turnaround effort, Unrivaled Brands said it had settled a $4M debt.
  Benzinga

Lake Elsinore, Calif. residents receive two of the 700 Thanksgiving turkeys at Gelato dispensary. Turkeys are free without purchase while supplies last.

Send High Society pics to hello@weedweek.com