WeedWeek edition / February 17, 2020
SHARE:

Connect with WeedWeek on TwitterFacebookInstagram and LinkedIn!

Check out the WeedWeek Podcast’s new themed playlists: CBDMoneyEntrepreneurshipSustainabilitySportsAdventurePolicyActivismScienceCulture, and Psychedelia.

A limited number of tickets for the first annual Weedy awards are now on sale! Get yours before they sell out.

1 IS CALIFORNIA BACK?

image
FLORIAN MUELLERKLEIN
Despite struggles at well known companies like Eaze and MedMenLeafly reporter David Downs argues the world's largest legal REC market is poised for a recovery this year. "On a bureaucratic and social timescale, California is still at hour one of day one of legalization," Downs writes. Reasons for optimism:
  • More than 3.2M Californians 25 and older used cannabis in the past month.
  • California's 13,000 liquor stores outnumber licensed dispensaries 21 to 1.
  • While 67% of state local jurisdictions don't allow dispensaries, "cities and counties are now beginning to compete to attract cannabis dollars."
  • Delivery services are expanding their reach.
  • BDS Analytics sales data from several states, including California, show vape sales began to recover late last year.
  • Leafly's annual cannabis jobs report found California leads the nation in pot jobs. WW California has more.
  • Jeff Schultz, an executive with investment firm Navy Capitalcontinues to see opportunity amid the volatility. MJBiz
"I think California is fucking fantastic," Graham Farrar, CEO of Glass House Farms and a WeedWeek Council member, told Leafly. The company just opened a massive 355,000 square foot greenhouse in Santa Barbara County. The company believes its 500,000+ square feet of greenhouse canopy may make it the largest such operator in the country. Forbes Still, not all is rosy. Among other issues, MJBiz says taxes are still a major headache for California businesses.
  • In addition to the industry hated federal tax rule 280E, state tax collectors have weighed on company finances because they're quick to levy heavy penalties for late payment.

2 CALIFORNIA LABOR TENSIONS ESCALATE

image
Thus far the cannabis industry has had relatively amicable relations with organized labor, especially in California. Vox Two recent developments suggest that may be changing:
  • CCIA executive director Lindsay Robinson said the paper was not supposed to be anti-union. “We retract any statements that may have been misleading,” she said in a statement. “This document does not reflect priorities in our legislative platform, nor our guiding policies."
  • While it's not yet clear if the fallout will be substantial, Adam Spiker, executive director of industry group Southern California Coalition, called it an "unforced error" by CCIA. "Labor has been a partner with local and state government much longer than regulated cannabis," he added
Separately, The Daily Beast reports on a group called ProTech Local 33 which calls itself a union but "looks like a front group for bosses." Reporter Chris Roberts writes:
  • "Privately, labor officials have suggested ... ProTech, is a business-friendly front meant to help companies meet state labor requirements without ever intending to allow workers to organize. Indeed, ProTech appeared to dance very close to the definition of “a company union”—ersatz worker organizations set up by management to crush organizing efforts before they can begin—which have been banned under federal labor law since the 1930s."
  • “This union has never ever been found guilty of anything,” the group's head said.

Quick Hit

  1. Business Insider is tallying layoffs -- now about 2,000 total -- across the industry.
Advertise with us!
Reach the highest minds in the
cannabis industry

Interested in advertising in the WeedWeek newsletter, website, or podcast? Reach out to our advertising team so we can help you spark up a campaign.

3 IN CANADA, DOLDRUMS PRESIDE

image
PHOTO BY SHANNON KUNKLE ON UNSPLASH
The corporate news out of Canada continues to be bleak. Major player Aurora announced a quarterly loss of C$1.3 Billion (US $980M). Barron's
WW Canada has lots more.
banner

4 TRUMP BUDGET WOULD END MED PROTECTIONS

image
PHOTO BY DARREN HALSTEAD ON UNSPLASH
President Trump's proposed $4.8 Trillion budget would eliminate existing protections for state-legal MED activity from enforcement by the U.S. Justice Department. Presidents Trump and Obama both previously asked, unsuccessfully, for the protection to be removed. Marijuana Moment
  • Rep. Matt Gaetz (R-Fl.), a Trump ally, said Congress has the votes to extend the existing protections, which have been in place since 2014. Marijuana Moment
Elsewhere in the proposed budget:
  • It asks for money to help the Food and Drug Administration regulate "cannabis and cannabis derivatives."
  • It also extends a longstanding provision blocking the District of Columbia from using local tax dollars to legalize sales.
Are you registered to vote?

Quick Hit

  1. Thirteen GOP lawmakers thanked Senate Banking Committee Chair Mike Crapo (R-Idaho) for delaying a committee vote on the cannabis banking bill which passed the Democratic-led House. Marijuana Moment

5 STATES UPDATE

image
PHOTO BY CHRISTOPH VON GELLHORN ON UNSPLASH
Here's the latest state news:
How can WeedWeek help you succeed? Take this anonymous two-question survey.

6 INVESTORS FLOWHUB

image
PHOTO BY DAVID CARBONI ON UNSPLASH
Legacy tech
Business Insider calls "retail management" company Flowhub, the "buzziest start-up in cannabis."
  • FlowHub's platform is designed to provide all the software a dispensary needs including inventory tracking, sales processing and compliance.
  • With almost 1,000 dispensary customers, the company processes $1 Billion in annual sales. Its software package starts at $499/month.
  • The company closed a $23M Series A in October from investors including Poseidone.ventures and Evolv Ventures.

Quick Hit

  1. When evaluating pot stocks, New Cannabis Ventures cautions not all revenue is the same.
  2. Medical psychedelics companies are starting to go public. Bloomberg
A note from the editor

Since 2015, WeedWeek has been the best way to keep up with the Green Rush. WeedWeek’s audience includes many of the most influential figures in cannabis because we are editorially independentAdvertisers have no influence on our editorial content.

We put out three free newsletters:

1) WeedWeek by founder Alex Halperin

2) WeedWeek California by Donnell Alexander

3) WeedWeek Canada by Jesse Staniforth

We also publish the WeedWeek Podcast and original reporting. The original WeedWeek newsletter has 11,000 subscribers.

Tips, comments and complaints to Alex alex@weedweek.net.

To advertise contact Lisa Marie Dudenhoeffer lisamarie@weedweek.net

banner

7 DON’T INJECT THC

image
PHOTO BY PATRICK LANZA ON UNSPLASH
A study published in Nature found that taking THC intravenously can cause schizophrenia like symptoms. Merry Jane discusses the brief and unhappy history of injecting THC:
  • "Basically, folks would boil weed buds into a “broth,” pull that filtered broth up into a syringe, then inject it. Rather than getting lit, they got sick AF instead, which included bouts of vomiting, intense muscle pains, and serious heart problems."
  • Snorting weed isn't a good idea either: "You’ll end up blowing pot-snot all day and never catching a buzz."

Quick Hit

  1. A Canadian man who stabbed his mother to death in 2017 after injesting a small amount of cannabis was sentenced to 45 months in prison. CBC

8 L.A. VACATING 66,000 POT CONVICTIONS

image
Los Angeles County DA Jackie Lacey said she would dismiss 66,000 pot convictions. L.A. Times
  • Lacey said she would vacate 62,000 felony convictions dating back to 1961 and 4,000 misdemeanor convictions.
  • Of those granted relief, 32% are black, 45% are Latino and 20% are white.
  • A partnership with tech non-profit Code for America helped determine the people who should receive relief.
Kansas City, Mo. Mayor Quinton Lucas (D) said he would pardon those convicted of municipal marijuana possession. FOX-Local

10 BEER AND POT PARTNER FOR GOOD

image
The Washington Post discusses a new effort in Colorado to recycle carbon dioxide produced by the Denver Beer Co. to help cannabis plants grow: From the paper: "The refrigerator-sized device [developed by Austin-based Earthly Labs] purifies the greenhouse gas and chills it into a liquid. Stored in 750-pound tanks, the recovered CO2 is transported about nine miles to the Clinic, where growers vaporize the liquid and pump it into rooms full of pot plants to speed photosynthesis."

Quick Hit

  1. Martha Stewart and Snoop's "Potluck Party Challenge" looks like fun. @TheEllenShow