Author Archives: Rick McDonald

Cannabis Industry News: February 13th, 2023

The U.S. legalized cannabis, CBD, and hemp industries are rapidly evolving. It’s important to stay on top of changing regulations and shifting landscapes in order to protect and grow your business. That’s why we round up the leading headlines every week to help you stay up-to-date.

Keep reading to see what’s going on in the world of legalized cannabis, CBD, and hemp this week. And check back here every week for your regular update on the biggest cannabis news.

New Regulation Updates From Kansas and Arkansas

Big changes are on the horizon for Arkansas and Kansas. Both states introduced bills to push forward their cannabis industries, with Kansas proposing the legalization of medical cannabis and Arkansas proposing a new adult-use market. 

Voters in Arkansas rejected adult-use legalization in November, but Republican senator Joshua Bryant’s new bill would legalize the possession and cultivation of recreational cannabis. The state’s current laws allow medical cannabis but prohibit home cultivation.

In Kansas, both medical and adult-use cannabis are illegal. New bills are proposing the legalization of cannabis for veterans, the elimination of possession penalties, and past record expungements.

These moves represent growing Republican support for the cannabis industry.

New York to See Two New Adult-use Cannabis Operations

After the success of the first adult-use cannabis dispensary in New York, two more operations are following in the coming weeks. 

Just Breathe in Binghamton opened its doors this past week, and Union Square Travel Agency: A Cannabis Store will be opening temporarily on East 13th Street in Manhattan this coming week.

In keeping with the trend of New York’s first dispensary, both new stores are connected to nonprofits, Broome County Urban League and The Doe Fund respectively. 

Cost of Raising Capital for Cannabis Ventures Expected to Reach New Heights This Year

Cannabis companies in search of capital in 2023 might face an uphill battle. Continuing the trend from last year, which saw an overall decrease in investor funds of over 60 percent, the cost and competition to secure investments are both expected to rise.

Experts believe certain businesses involved in the cannabis industry will have better luck securing funding than others. For example, ancillary businesses with fewer overhead costs will have an easier time than those that deal directly with cannabis products.

For the first few weeks of the year, a lack of debt deals in the market was concerning experts, since debt deals are a major part of what keeps the market going. But in late January, MariMed became the first cannabis operator of the year to announce it had secured funding from investors. This news was considered a relief, as it demonstrated the potential for midsized enterprises to get the funding they need.

Aleafia Health Reports Job Cuts at the End of 2022

Canadian cannabis company Aleafia Health’s recent jobs report found the company reduced their number of full-time equivalent employees by 20 percent in the final months of 2022. 

The cuts, which impacted forty employees, were part of a large effort to reduce operating costs at the company that saw as much as a 36 percent reduction of the company’s total workforce over all of 2022.

This is just the most recent of many examples of cannabis companies scaling back employee numbers in recent months, a trend that many experts believe will continue into 2024. 

Connecticut Attorney General Sues Dispensaries for Alleged Delta-8 THC Products

Five Connecticut cannabis store owners are facing legal repercussions for the alleged sale of delta-8 THC products. The sale of delta-8 THC products is prohibited under the state’s Connecticut Unfair Trade Practices Act. They are also packaged in a way that could attract children, says Attorney General William Tong. Such products pose a serious risk of accidental consumption by minors.

Additionally, the products in question have never been properly tested and are therefore not legal to be sold in Connecticut. The packaging omits important information such as potency and safe consumption guidelines. 

Connecticut’s adult-use cannabis market opened in January. Since its opening, the market has seen many of its operators face warnings from the FDA. In a statement regarding the issue, Tong reasserted the state’s commitment to regulation and quality assurance, saying that unlicensed and noncompliant operators would face significant consequences.

Stay Up-to-Date With Cannabis News in Qredible®

In our rapidly changing industry, it’s important to stay in the know with regard to headlines and important events. If you want in-depth cannabis news coverage tailored for you, you’ll find all the resources you need to stay current in Qredible®.

Qredible’s pro subscribers unlock access to a customized stream of the latest industry headlines so they can remain relevant and avoid missing key updates about regulations in their state.

To learn more about Qredible’s premium features and functionalities, sign up for a free webinar today. And for free updates on cannabis industry news, follow us on LinkedIn and Instagram.

Cannabis Industry News: Feb 7th, 2023

The U.S. legalized cannabis, CBD, and hemp industries are rapidly evolving. It’s important to stay on top of changing regulations and shifting landscapes in order to protect and grow your business. That’s why we round up the leading headlines every week to help you stay up-to-date.

Keep reading to see what’s going on in the world of legalized cannabis, CBD, and hemp this week. And check back here every week for your regular update on the biggest cannabis news.

California Attorney General Considers Interstate Cannabis Trade After Letter From State Regulators

In a recent letter, California cannabis officials pitched a legal framework to expand the trade of marijuana across state lines. The plan would have to navigate federal regulations intended to prevent interstate cannabis trade.

It is the first step in what would be a long process, one that many experts believe may never be completed. The main concern is that another state will need to be willing to trade with California. Such an agreement is unlikely to happen this year. 

Florida Medical Cannabis License Date Set

Applications for 22 additional Florida medical cannabis licenses will officially open as of April 24th, 2023. This is the first increase in available licenses in over five years, so it marks a major milestone for the state’s medical cannabis market.

The new addition of 22 licenses will double the state’s existing market of vertically integrated cannabis companies. Florida is one of the country’s largest MMJ markets at $1.5 billion in annual sales. 

While advocates are celebrating the expansion, many are still pushing for an adult-use cannabis market.

Chicago Cannabis Store Expanding Into Multi-use Liquor Licensed Space

A Chicago suburb is about to get a unique cannabis store. Okay Cannabis and West Town Bakery Cafe + Lounge will be opening a space that is licensed to sell both cannabis and alcohol. The space will also sell baked goods and host events. It is the first multi-use cannabis space in the state of Illinois and one of only a select few across the country.

The goal of the new space is to facilitate gatherings and a community where customers can choose to consume cannabis or not.

Hong Kong Bans CBD Products

In a move that goes against the flow of many countries around the world, Hong Kong has enacted a ban on the trade and production of CBD products. Those in violation of the new law will face harsh penalties such as life in prison and up to $5 Hong Kong dollars.

Despite the growing market, the Hong Kong government has classified CBD with dangerous drugs such as cocaine. This means it will be heavily controlled and prohibited. 

Businesses selling CBD products were thriving until the prohibition was announced. Businesses that had previously been operating in Hong Kong will need to shift focus to friendlier markets in the Asia-Pacific region.

Stay Up-to-Date With Cannabis News in Qredible®

In our rapidly changing industry, it’s important to stay in the know with regard to headlines and important events. If you want in-depth cannabis news coverage tailored for you, you’ll find all the resources you need to stay current in Qredible®.

Qredible’s pro subscribers unlock access to a customized stream of the latest industry headlines so they can remain relevant and avoid missing key updates about regulations in their state.

To learn more about Qredible’s premium features and functionalities, set up a discovery call today. And for free updates on cannabis industry news, follow us on LinkedIn and Instagram.

 

Cannabis Industry News: February 1, 2023

The U.S. legalized cannabis, CBD, and hemp industries are rapidly evolving. It’s important to stay on top of changing regulations and shifting landscapes in order to protect and grow your business. That’s why we round up the leading headlines every week to help you stay up-to-date.

Keep reading to see what’s going on in the world of legalized cannabis, CBD, and hemp this week. And check back here for your regular update on the biggest cannabis news.

Tribunal Finds Canadian Cannabis Company SNDL Used Intimidation to Squash Union Efforts

A provincial labor tribunal in Alberta, Canada found that cannabis grower SNDL intimidated workers meeting to discuss unionization. As a result of this action, the company must now pay workers to attend mandatory meetings with the union.

Workers at SNDL, previously called Sundial, were scared to attend the meeting because of two managers who had parked out front of the location. The managers claimed to be interested in what the union could do for them, but a union worker testified that many employees were uncomfortable.

The tribunal rejected the managers’ testimonies and ruled that the actions were consistent with union-busting behavior.

Unionization wins have been sweeping the continent over the past few months, including in the cannabis industry. SNDL’s experience sets an example of how interfering with union efforts can backfire.

Massachusetts Adult-use Cannabis Sales Exceed $4 Billion

Since the launch of Massachusetts’ adult-use cannabis market in November of 2018, the state has surpassed $4 billion in sales. The state has had 265 retail locations and 14 delivery businesses operating over the past four years.

Demand in the state has been consistent, and the expansion of licensed businesses has led to significant growth over the past year. In 2022, the state saw 71 new dispensaries and seven new delivery businesses open.

Cannabis Legalization in Wisconsin Challenges MMJ Progress

Wisconsin lawmaker Robin Vos is halting Democratic Governor Tony Evers’ medical and recreational cannabis legalization plans. Vos believes a medical program should be the primary priority.

Budget is the main concern for Vos—the speaker believes if adult-use cannabis legalization is included before a medical program is established, it could threaten the success of the medical program. 

The Assembly and Senate are both Republican-controlled, so the inclusion of adult-use sales could cause both groups to oppose legalization.

Officials in Virginia Push Two Cannabis Bills Despite Legislature Divide

Virginia legislators are acting to move forward two bills to legalize both medical and adult-use cannabis sales in the state. If passed, the state could see its adult-use market open in 2024 so businesses would be able to take business tax deductions.

The first bill would open the cannabis market on Jan. 1, 2024. The second would qualify cannabis businesses to follow tax regulations under Section 280E of the U.S. tax code. 

The biggest challenge to these efforts is Republican Governor Glenn Youngkin. The governor is on the fence about adding an adult-use market in addition to the state’s existing medical program. His top priority with regard to the issue of cannabis is delta-8 and consumer safety. 

Floridan House Republican Pushes to Reschedule Cannabis From Class 1 to Class 3

For the third time since 2019, Republican representative Greg Steube has reintroduced a bill to reclassify cannabis from Schedule 1 to Schedule 3 in the Controlled Substances Act. 

The move is intended to support cannabis businesses struggling to cope with federal tax responsibilities while also opening the door to more research opportunities. 

President Biden requested that the Department of Health consider the classification of cannabis last fall. 

Steube’s moves to pass this legislation failed in 2019 and 2021.

Stay Up-to-Date With Cannabis News in Qredible®

In our rapidly changing industry, it’s important to stay in the know with regard to headlines and important events. If you want in-depth cannabis news coverage tailored for you, you’ll find all the resources you need to stay current in Qredible®.

Qredible’s pro subscribers unlock access to a customized stream of the latest industry headlines so they can remain relevant and avoid missing key updates about regulations in their state.

To learn more about Qredible’s premium features and functionalities, set up a discovery call today. And for free updates on cannabis industry news, follow us on LinkedIn and Instagram.

Cannabis Industry News: Jan 24th, 2023

The U.S. legalized cannabis, CBD, and hemp industries are rapidly evolving. It’s important to stay on top of changing regulations and shifting landscapes in order to protect and grow your business. That’s why we round up the leading headlines every week to help you stay up-to-date.

Keep reading to see what’s going on in the world of legalized cannabis, CBD, and hemp this week. And check back here every week for your regular update on the biggest cannabis news.

U.S. House Oversight Committee Ready to Question the FDA Regarding CBD Regulations

In a recent interview between James Comer, the chair of the House Oversight Committee, and the U.S. Hemp Roundtable group representative Comer expressed his intention to question the Food and Drug Administration on their lack of action regarding CBD regulations. 

CBD falls under the FDA’s jurisdiction and representative Comer believes that the group’s inaction is leading to a number of safety and quality issues in the industry. Comer also explored the possibility of questioning the FDA on other areas of jurisdiction, and what factors may have influenced the present lack of regulation. 

A Cannabis Consumption Hotel is Scheduled to Open in Las Vegas This Spring

Las Vegas is preparing for the opening of the city’s first cannabis-friendly hotel. Cannabis consumption lounges have been legal in the city since 2022, and advocates are looking forward to this next step toward destigmatization.

The new project is from Elevations Hotels and Resorts. The company bought the Artisan hotel last year for an estimated $11.9 million and has since invested over $15 million into the renovations.

The new hotel is called The Lexi—it is currently undergoing renovations but will host 64 rooms and an entire floor designated for cannabis consumption. Elevations’ rewards program aims to attract travelers who are interested in cannabis tourism as well as other novel experiences.

Texas Prepares for More Medical Cannabis Dispensaries as Applications Open

Public safety officials in Texas are beginning a new medical cannabis business license process. The aim of the project is to expand upon the existing restrictive medical dispensary program.

Businesses who wish to apply for a medical cannabis license can do so until April 28th. While there is no information regarding the number of licenses that will be approved, officials were open about their decision to consider adding more licenses to the state’s program.

Over the past three years, only three medical cannabis licenses have been approved. Governor Greg Abbott passed legislation to increase that number in 2021, citing the need to make medical cannabis available to more patients. 

Legislation in Texas now includes low-THC cannabis for PTSD patients and patients with any form of cancer. THC products were formerly only available to terminal cancer patients and those with a select group of other medical conditions.

Workers to be Laid Off as Tilray Cuts a Quarter of Portugal Medical Cannabis Facility Jobs

Canadian multinational company Tilray is set to let go of approximately 25% of its workforce at its Portugal-based medical cannabis facility. The facility, which employs nearly 200 employees, is scaling back production, manufacturing, and quality control processes. 

Layoffs will take place over the next three months. The affected employees are currently working in the above departments, as well as in labs, cultivation, logistics, and IT.

Tilray Brands hopes these changes will help the company adapt to the current economic challenges facing the industry.

MJBizDaily Predicts Continued Cannabis Layoffs in 2023

The cannabis industry has been facing a series of layoffs and cost-cutting for the past year. According to many industry experts, these trends are likely to continue throughout 2023. 

As demand slows and the market gains halt quicker than anticipated, hundreds of employees across multiple businesses have been affected. The layoffs and exits have impacted C-suite executives as well. 

Some of the businesses that have laid off workers include:

  • Dutchie
  • WM Technology
  • Curaleaf
  • Leafly Holdings
  • Trulieve
  • Leaflink
  • Akerna
  • Green Leaf Medical

While most experts agree that layoffs will continue for the next year, some even predict they will extend into 2024. 

Stay Up-to-Date With Cannabis News in Qredible®

In our rapidly changing industry, it’s important to stay in the know with regard to headlines and important events. If you want in-depth cannabis news coverage tailored for you, you’ll find all the resources you need to stay current in Qredible®.

Qredible’s pro subscribers unlock access to a customized stream of the latest industry headlines so they can remain relevant and avoid missing key updates about regulations in their state.

To learn more about Qredible’s premium features and functionalities, set up a discovery call today. And for free updates on cannabis industry news, follow us on LinkedIn and Instagram.

5 Things Businesses

There are many factors that contribute to a safe and reliable legalized cannabis, CBD, and hemp industry. One of the most important ones is lab testing.

Cannabis lab testing protocols lay the foundation for safe products and safe commerce. Unfortunately, there are players in the industry who don’t always adhere to the rules. Whether accidentally or intentionally done, actions like altered Certificates of Analysis (COAs), outdated lab reports, or misused information leads to a merited distrust of the industry among businesses, consumers, investors, financial institutions, and governments.

When lab reports and COAs are trustworthy and transparent, everyone in the supply chain benefits. But what exactly is a trustworthy lab report? And how can businesses begin to feel more confident in COAs and other laboratory information?

In this article, we will cover the basics of cannabis lab reports and COAs, including requirements, repercussions, and solutions for finding a trustworthy cannabis testing lab near you.   

Is Lab Testing Required For Cannabis?

The laws regarding testing regulations vary state by state. Essentially, every state with some level of legal recreational or medical marijuana requires licensed cannabis products to be tested before sale.

Other regulating and certifying bodies also require COAs and lab reports in order to certify or approve a product. For example, any products grown under the USDA must submit to regular testing as per the organization’s testing standards

Financial institutions also require cannabis businesses to demonstrate compliance with COAs and lab reports. Due to the nature of their operations, they are required to be stringent and meticulous in their assessment of a company’s compliance with federal and state regulations. For this reason, manufacturers, distributors, and other cannabis businesses will need to obtain reliable reports to access financial support. 

It’s also important to note that consumers value reporting transparency with regard to their cannabis testing. This is because some of the leading purchase influences include potency, accurate labeling, quality, and safety. While the average consumer may not read a lab report, the trustworthiness of the information that informs product labeling and messaging is essential to their purchase decision.

Repercussions for Missing, Fraudulent, or Misleading Lab Reports

Businesses that fail to comply with testing regulations will face legal repercussions, risk losing their license, and face damage to their reputation. The same can be said for businesses that use misleading labeling informed by fraudulent or altered lab reports and COAs.

Regardless of whether or not a lab, retailer, manufacturer, distributor, or other business is at fault for the modification of the COA, all companies involved in the dispute may be held liable and face legal action. Some of the ways in which COAs are often misused include:

  • Connecting an outdated COA to an irrelevant batch number or product
  • Altered information and data
  • Misrepresenting the testing laboratory or altering the source of the test

In the event a company is caught in any of the above illegal actions, the burden of proof will fall to them to demonstrate their innocence. Unfortunately, this is incredibly difficult—and sometimes impossible—to do.

What Do Cannabis Labs Test For?

There are two main purposes for cannabis testing. They are as follows:

  • Compliance data: Ensuring the product meets all standards as set out by the state’s regulatory authority. This can include safety and potency testing.
  • Quality data: Information for labeling, marketing, and safety. This can include potency, strain, and contaminant information.

Because there is no universal standard for cannabis testing, each lab must adhere to the guidelines set out by the state in which it operates. In most cases, labs are certified third-party testing companies that report on compliance to the regulatory authority in their state. Companies doing business with these labs use this data to obtain licenses to sell and distribute their products.

Specifically, cannabis labs perform the following tests:

Potency Analysis

One of the leading reasons consumers cite for their preference for regulated cannabis over illicit markets is the availability of accurate potency and dosage labeling.

This is achieved through a potency analysis, in which labs measure the THC and CBD levels in a batch. Labs can analyze cannabis potency by measuring the presence of cannabinoids per weight, the total amount, or the ratio of THC to CBD. 

This information is then used on product labeling to tell consumers exactly what they are purchasing.

There are strict requirements for this in various states. In fact, the Florida Health Department recently levied fines and penalties against multiple labs for compliance violations relative to misreporting of potency levels, particularly how flower THC potency was labeled on certificates of analysis (COA). 

This is just one example of increasing levels of enforcement action taken by states to ensure safety and transparency for consumers. 

Contamination Screening

Cannabis products can be contaminated by many different sources during the growing and manufacturing processes. 

The plant itself has an inherent ability to absorb heavy metals from the soil. it essentially acts like a sponge soaking up the good, the bad, and the ugly from the soil. In fact, cannabis plants have been used for the remediation of contaminated sites. 

But this ability to soak up toxic metals may also make cannabis dangerous for people who ingest it. The purpose of contamination screening is to determine the safety of the product before it goes to market while also informing the growers and manufacturers of any safety risks in their operations.

Some of the most common contaminants that labs test for include:

  • Pesticides: Chemicals, growth hormones, and pesticides are not safe for human consumption. 
  • Solvents: Concentrates and extracts commonly contain solvents such as xylene, ethanol, and butane.
  • Foreign matter: Dust, dirt, insects, and fecal matter are some of the common contaminants found in cannabis products. 
  • Microbial matter: Contaminants such as E.Coli, Salmonella, mold, and mildew are dangerous when present in products intended for human consumption.
  • Heavy Metals: Lead, mercury, and other metals are sometimes absorbed through soils and substrates.  

Contamination poses a serious health risk to consumers and, as such, it is one of the most important factors that regulators and labs are required to screen for.

Terpene Analysis

Terpenes testing helps companies better understand their product. These tests offer information about the strain and potency of their product and help them provide more accurate data to their buyers and consumers.

What are the Different Types of Cannabis Testing?

There are three main types of cannabis tests. The data the lab is trying to obtain will dictate which type of test is conducted.

The different tests are as follows:

  • Analytical Chromatography: This process is used to determine the presence and potency of compounds in the sample.
  • Mass Spectrometry: This process is used to measure the chemical composition of a sample.
  • Nuclear Magnetic Resonance Spectroscopy: This process is used to measure the structure of molecules and chemical compounds in a sample.

How to Find a Reliable Cannabis Testing Lab

Finding a reliable lab report is necessary to ensure the safety and security of your business. Without one, you could face legal consequences, reputational harm, and catastrophic loss in revenue. 

Until recently, it has been impossible to ensure the utmost integrity when it comes to COAs and lab reports. This is because anyone can alter, misuse, or delete a file to suit their needs.

The only way to ensure a lab report has not been modified is to work with a Q-verified lab. Verified labs in Qredible® submit all lab reports directly from the test equipment. Once submitted, each report is immediately blockchain-protected. 

This means:

  • No human has the ability to modify the information at any time
  • All lab reports from Q-verified labs will be completely immutable
  • The information on the report will be identical to what the testing equipment uncovered

In a situation where the burden of proof falls on your company to demonstrate that you did not alter the lab report, Qredible’s documentation will make the process seamless. 

The burden of proof will be on the lab that the data they provided was not altered or misreported. Some labs have used blockchain themselves to store their lab reports; however, Qredible is a third party. This is important when ensuring trust in parties in the supply chain. 

When all parties throughout the supply chain utilize Qredible’s secure Q-Vault, security and authenticity are ensured. This allows us to be the single source of truth and transparency for lab reports. 

Not only does this level of trust and transparency protect business owners, but it also protects consumers and encourages safer commerce for all. 

Qredible is the only digital registry of verified and validated legalized cannabis, hemp, and CBD brands. Want to be in Qredible? Get started today