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.

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