July 15 2022,

THE BIG IDEA

Hi all,

So much to read in today’s newsletter, let’s get to it.

  • Does going vertical make sense in California?
  • SCOOP: MedMen sued again

Lots, lots, more,

Alex

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OAKLAND FACTORY OWNER SUED FOR AIR POLLUTION

Environmental non-profit Environmental Democracy Project has sued the Colorado-based owners of an Oakland edibles factory for allegedly violating the federal Clean Air Act. 

  • The complaint alleges that the facility, owned by Green Sage Management, has been operating up to nine
    18-wheeler-sized diesel generators twenty-four hours a day, seven days a week, since July 2020.
  • It claims this is in violation of the federal clean air act since the generators don’t have air quality permits. 
  • Green Sage did not immediately respond to a request for comment. The City of Oakland had previously warned Green Sage about the generators.
    KQED
  • A federal judge rejected a temporary restraining order to shut down the generators on grounds that they did not pose an immediate threat.

The facility had previously been occupied by Colorado-based Coda Signature, an upscale edibles brand which has since left California.

  • It wasn’t clear from a DCC license search who currently occupies the facility.

CANNASAFE SHUTS CALIFORNIA LAB, BLAMES LAB SHOPPING

Van Nuys testing lab Cannasafe said it’s shutting down its sole California lab on account of “lab shopping,” the practice of choosing a testing lab based on its willingness to provide a high potency score.

President Antonio Frazier, who had posted the news on social media, told WeedWeek that some retailers were reluctant to buy flower lower than 25% THC, leading to potency inflation.

  • You can now find 50% THC flower, Frazier said, despite that seeming physically impossible.
  • Last week the DCC said it’s looking to standardize testing practices statewide to protect public health and consumer confidence.
  • It’s accepting public comment until August 2 at publiccomment@cannabis.ca.gov

Meanwhile: Steep Hill’s Arkansas has been sued under the federal racketeering statute for inflating potency. See the complaint here.
Law360

  • An executive at Steep Hill Arkansas did not respond to a request for comment.

DOGWALKER

SCOOP: MedMen sued for back rent

MedMen has been sued by giant Thor Equities for owing $950,000 in back rent on a property in Chicago.  Read the complaint. MedMen declined to comment. It’s the same Thor that just won a $5M judgement for back rent owed by High Times in San Francisco.

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QUICK HITS

Sacramento:

Business:

Local:

  • Sacramento Co. officials declined to move forward with dispensaries.
    CapRadio
  • Eureka (Humboldt Co.) has made it easier to host cannabis events.
    California City News
  • Guadalupe city (Santa Barbara Co.) rescinded a dispensary license it issued to Element 7. The company is still in the running for the license.
  • Madera’s (Madera Co.) first dispensaries could open as soon as this fall.
    The Business Journal

Nevada:

  • State regulators require consumption lounges to have a DUI plan.
    Las Vegas Weekly

Fun and interesting:

In the news

CHART OF THE WEEK

Last week we looked at California’s top-selling flower brands. For our new Chart of the Week, here’s another list from data shop Headset. This one’s the state brands with the biggest market share across categories, with a comparison to last year.

NOTABLES

Company Milestones:

Job moves:

  • SF-based industry lawyer Marc Hauser, and author of newsletter Cannabis Musings, is leaving law firm Reed Smith to form a consultancy. 

Upcoming:

Awards:

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