June 29 2023,
THE BIG IDEA
What a quarter, huh? I hope everyone enjoys their well deserved holiday weekend. And maybe we’ll see strong sales as well.
In the newsletter:
- What will Biden do?
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WHAT YOU MISSED IN WEEDWEEK CALIFORNIA PRO
SCOOP: Herbl defaulted to lender in November: Lawsuit
Distributor Herbl, which went into receivership this month, first defaulted on its obligations to East West Bank in November, the lender alleges in a lawsuit filed last week.
East West’s lawsuit provides the bank’s view of Herbl’s struggle to remain solvent at the center of California’s cannabis supply chain. It also names the receiver it has requested to oversee what is believed to be the largest such case in industry history.
According to the complaint, East West provided Herbl with a $15M revolving credit line in March 2022. For collateral, Herbl provided…
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WHAT WILL BIDEN DO?
Following news that the Biden administration plans to unveil its federal scheduling review this year, there’s been speculation about what it might do, and how it might alter the cannabiz.
The existing industry wants to see cannabis de-scheduled, similar to alcohol and tobacco are now. However there’s a possibility it could be re-scheduled to a less restrictive level, which, depending on the level, could be highly disruptive for the industry.
An executive with the new industry group called the Coalition for Cannabis Scheduling Reform told Marijuana Moment that “We strongly support descheduling…[and] we also believe rescheduling to Schedule III, IV or V would be historic progress towards ending federal prohibition.”
Green Market Report discusses some of the uncertainties involved in re-scheduling, such as whether a Schedule III placement would end industry-hated tax rule 280E. “The point is, nobody truly knows. Not yet.”
- Shaleen Title of the non-profit Parabola Center argues that big tobacco shouldn’t have a seat at the table with the Cannabis Regulators Association.
- Today is the self-imposed deadline for the acquisition of Columbia Care by fellow MSO Cresco Labs, but as of press time there hadn’t been an announcement. I recently wrote about Cresco’s misadventure in California.
- Food Dive got a look at Mary Jones’ soda’s expansion to new states.
- MSO TerrAscend became the first operator which touches the plant in the U.S. to uplist to Canada’s biggest stock exchange. It also closed on a $25M loan.
- A law suit alleges MSO iAnthus stole millions.
Baltimore Business Journal
- MSO Ayr Wellness reached agreements to defer $69M in debt payments.
- Canadian former powerhouse Canopy Growth had another rotten quarter and endured some brutal commentary about its prospects. It also sold a property in California.
New Cannabis Ventures, Fortune, Green Market Report
- WSJ reports on the drugs now fueling Silicon Valley. Sergey Brin and Elon Musk are reportedly fans.
- Cookies’ Baltimore shop will be able to reopen but has to pay a $81k fine.
- Hip-hop mogul Diddy, who joined the cannabiz last year, has ended his partnership with liquor company Diageo.
State and local:
- Florida’s attorney General laid out an argument against a Trulieve-supported REC ballot measure which the MSO would like to see come before voters in 2024.
Cannabis Business Times
- Florida Gov. and presidential candidate Ron DeSantis (R) signed a bill allowing Florida patients to get their green cards via telehealth. However, he said he doesn’t support national decriminalization.
NBC, Business Insider
- In Oregon, two farms were hit with recalls over the state’s controversial new aspergillus testing requirement.
- REC becomes legal in Maryland tomorrow.
- In Wisconsin, Republican lawmakers defeated a REC bill.
- Clark Co. (Vegas) Nevada is gearing up to open consumption lounges.
- As prices rebound, Michigan’s largest dispensary Lume is reopening a dispensary in Oakland Co., near Detroit, and opening another store nearby.
- The new coffee-table book Higher by Dan Michaels with photography by Erik Christiansen explores the “lore, legends and legacy” of cannabis.
Fun and interesting:
- “Sous vide your weed.“
- The L.A. Times‘ Adam Tschorn describes a new device as a “near-perfect way to consume weed.” But it makes him angry.
- Attorney Lauren Mendelsohn wrote on the risks associated with the state consumption lounge bill.
- Investor and founder Seth Yakatan explains why he’s bullish on California.
- A poll found Californians strongly support legalization and want dispensaries in their communities.
- A Senate-passed bill to decriminalize psychedelics passed an Assembly committee.
- Cannabis Wire checked in with the states’ Cannabis Advisory Committee.
- Humboldt supes discussed a proposal some fear would wipe out the local cannabiz.
Times-Standard, Lost Coast Outpost
- Santa Barbara Co. plans to crack down on pot tax flakes.
Santa Maria Times
- SLO Co. supes cut their pot business tax.
- Another consumption space is coming to WeHo.
- Sacramento city wants to crack down on illegal grows.
- Pot tax revenue fell in San Jose.
San Jose Spotlight
- The LAPD busted an illegal concentrates lab hidden in a pizzeria.
- Ciencia Labs, Hello Again and Vet CBD joined the Petalfast stable of brands. Ciencia and Vet CBD were previously with Herbl.
- Beverage brand Uncle Arnie’s, another Herbl refugee, signed on with Kiva Sales and Service.
- Jetty Extracts expanded to Colorado.
- Cookies launched a wholesale seed bank.
- Glass House shareholders passed a resolution extending the “sunset” date on the company’s multiple voting shares.
- The Cannabition experience is returning to Planet 13’s Vegas superstore.