LOS ANGELES, Nov. 19, 2018 /PRNewswire/ -- PRESS RELEASE -- Calyx Peak Capital has announced that Ed Schmults, former CEO of FAO Schwarz and COO of Patagonia, will join its team of cannabis industry experts. As CEO, Ed brings his extensive experience in worldwide branding to Calyx Peak, joining Chief Investment Officer Michael Bang and Dr. Paul Y. Song, chief medical officer, in their pursuit to revolutionize and further develop the burgeoning cannabis industry ahead of full federal legalization.
As a cannabis-centric funding partner, Calyx Peak Capital has set itself apart with a diverse team of medical, construction, business, financial and cannabis industry experts, who tout extensive experience in heavily regulated industries, such as finance, trading and government contracting, as well as retail, healthcare, consumer products, operations, IT and logistics. Additionally, it is among the only capital groups in the industry to also boast a house brand, Josh D, with such a strong legacy.
"The cannabis market is very intriguing to me, given the market size, growth rates and the incredible life-changing and life-saving medicinal benefits cannabis has to offer. In addition, there are significant positive social justice benefits to decriminalization as well as other societal benefits, like safer products and substantial tax revenues," says Schmults. "I've spent my career building and turning around brands with rich histories. I joined Calyx Peak because I believe my experience is an excellent fit to help them build a great brand and team. We're here to create a rich branded experience through high quality and innovative product and long-lasting relationships with our customers based on reliability and trust."
"We're very proud to be welcoming Ed to our team," says Bang. "His resume says it all—he's transformed brands, built strong operational teams and infrastructure and understands how to build and market products that create strong emotional connections with customers. He's an integral piece to Calyx Peak's future in the cannabis industry."
Calyx Peak launched with a small investment in Nevada in 2016 and quickly expanded to investments in three states within its first 18 months. Currently, Calyx Peak Capital manages seven permits and related operations in three states with 225,000 square feet of cultivation facilities and continues to expand. It operates cultivation, processing and distribution facilities in California, Ohio and Nevada, with pending operations in Massachusetts. Calyx Peak is poised to broaden operations as cannabis regulations evolve nationwide.
"Our goal is to continue to build a great company with strong national brands, with scalable processes and procedures that will prepare us for the eventual legalization or decriminalization at the federal level," says Schmults.
New Jersey Senate, Assembly Committees Advance Adult-Use Cannabis Legalization Bill
New Jersey’s legislators advanced an adult-use cannabis legalization bill Nov. 26 in a joint Senate and Assembly Budget Committee vote of 7-3 and 7-2, respectively.
The vote came after four hours of public testimony and debate. The committees were scheduled to take up a separate medical cannabis expansion bill and cannabis conviction expungement legislation. Collectively, the bills comprise a trio of cannabis reform measures that have been talked about in various forms since Gov. Phil Murphy took office in January (though sponsor Sen. Nick Scutari has been leading the legalization conversation in Trenton for more than a decade). After running up against the clock, the committee halted testimony and took a vote only on the adult-use bill.
The approved and amended version of that bill would set a 12-percent retail tax and an optional local 2-percent tax on cannabis sales. Notably, the legislation would set up a licensing process that does not mandate vertical integration; five license types would be available, including growers, product manufacturers, wholesalers, testing facilities, and retailers. (The state’s medical cannabis market currently includes only vertically integrated businesses.)
Home cultivation is not a part of this legislation. Rather, adults 21 and older would be allowed to purchase and possess one ounce of flower; up to 72 ounces of liquid marijuana-infused products, like beverages; up to 16 ounces of solid marijuana infused-products, like edibles; and seven grams of marijuana extracts, like cannabis oil.
The bill will now go to the full Senate and Assembly floors for separate votes, which could happen as soon as next month. Murphy has vocally supported cannabis legalization, but he has yet to openly endorse this particular bill. ("Governor Murphy remains committed to legalizing adult-use marijuana, a critical step in eliminating racial disparities in our criminal justice system,” according to a statement published by his office on Thanksgiving.)
And, indeed, much of the debate on Monday swirled around how legalization would impact local populations affected disproportionately by law enforcement under prohibition. As NJ.com’s Payton Guion has reported, New Jersey has historically arrested more people for cannabis possession “than nearly any other state, but for minorities, that risk is even greater.”
State Sen. Ronald Rice argued that the legalization bill, as written, would continue the economic and social disparity between white and black residents of the state. The economic impact, he said, could end up excluding black residents who were hurt most by prohibition policies. Only six companies have been licensed so far in New Jersey’s nascent medical marijuana market, and six more vertically integrated licenses are expected to be issued soon.
“Whether you’re for or against this bill, this bill requires a racial impact statement,” Rice said. (Former Gov. Christ Christie enacted that law during his final days in office, mandating an analysis for future bills that would alter “pretrial detention, sentencing and parole,” according to the Wall Street Journal.) Such an analysis has not yet been presented on this bill.
Assemblyman Jamel Holley, who cast a “yes” vote for the bill, also lent his voice to the calls for clarity on the question of racial and social inequality in cannabis reform. He pressed John Zebrowski, police chief in Sayreville, on the history of law enforcement and cannabis prohibition. “Until we provide some relief, this [trend of arrests] is going to continue,” he said. “This keeps you in business.”
Zebrowski joined other law enforcement officials in testifying against the bill, saying only that the state should look into “decriminalization” instead.
“Painfully absent in your testimony is any mention of a solution,” Assemblyman Joe Danielsen countered.
State Sen. Sam Thompson put it most starkly in his summary comment: “I feel the negatives of legalization outweigh the positives. I’m a no.”
Ultimately, though, the yeas had it.
The Marijuana Policy Project issued a statement on the tone of the hearing, which teed up another round of debate when the expanded medical cannabis bill and the cannabis conviction expungement bill land in the committees’ laps.
“New Jersey is one step closer to replacing marijuana prohibition with sensible regulation,” general counsel Kate Bell said. “Arresting adult cannabis consumers is a massive waste of law enforcement officials’ time and resources, and it does nothing to improve public health or safety. … We are encouraged by the ongoing discussion about how best to address the history of racially disparate enforcement of marijuana laws. By streamlining the expungement process, the state can help ensure people with criminal records for marijuana-related offenses get a clean slate. Nobody should be branded a criminal simply for using a substance that is less harmful than alcohol.”
Sen. Paul Sarlo, who chaired the meeting, said that the cannabis legalization debate brought in “probably the largest budget committee hearing ever convened.” He added that he was a “no” vote before the hearing began—but he decided to abstain from casting a vote, in order to “allow the debate to go forward.”
“I just don’t believe we are there yet in New Jersey to legalize marijuana,” he said. “As a parent, as a coach, it’s something I wrestle with.”
Sen. Sandra Cunningham, calling the bill a “criminal justice opportunity and an economic development opportunity,” said that the testimony offered during the day-long hearing flipped her from a “no” to a “yes” vote. She painted a picture of the poorer families of New Jersey, with children stuck in economic ruts inflamed in part by drug arrests and cannabis prohibition. She said she wanted to find a solution.
“I don’t know if this is the bill to do it—to generate hope and get things moving,” she said, “but it is a start.”
Top photo courtesy of pabrady63/Adobe Stock
Jane Technologies and CanPay Partner to Bring Online Payments to Customers in the Cannabis Marketplace
The new partnership provides a legitimate online payment solution.
LITTLETON, Colo. and SANTA CRUZ, Calif. /PRNewswire/ -- PRESS RELEASE -- CanPay, a legitimate debit payment solution for the cannabis industry, and Jane Technologies, an online cannabis marketplace, have partnered together to launch the industry's first integrated online menu and ordering platform with payments for cannabis dispensaries around the country. With the announcement, licensed dispensaries using Jane's online menu and ordering platform can accept payments through their website from customers paying with CanPay. This partnership marks the first time electronic payments have been legitimately available to cannabis patients and consumers for their online orders for express in-store pickup or delivery, in markets where such payments are allowed.
Due to existing federal laws and the extreme transparency required to enable online payments, the cannabis industry has lacked access to a familiar shopping experience where customers can pay online at the time of checkout–until now. As the U.S. cannabis industry expands across the nation, consumers are increasingly looking for the same ease and convenience in their cannabis shopping experience that they enjoy with other retailers. While Jane continues to transform brick-and-mortar storefronts into competitive online 'click-and-mortar' retailers, in markets where access to compliant cannabis banking is available, CanPay is giving Jane customers the freedom to legitimately accept online payments for in-store and delivery orders made through Jane's platform.
"In an already fast-growing market, Jane has revolutionized the way American consumers shop for cannabis. But the way they pay for their cannabis products still largely hinges on the hassles of paying at the store and usually doing so in cash," said Dustin Eide, CEO of CanPay. "Our collective goal in integrating electronic payments with the Jane platform is to bring greater convenience to cannabis consumers and normalize their shopping experience by providing them with the opportunity to transparently and legitimately pay online for purchases made through their local dispensary's website."
In markets where online orders are legal, Jane's technology, quick deployment and low cost make it possible for any dispensary to turn their existing website into a fully automated digital storefront. This creates an online experience where customers can access a dispensary's website to view a live menu, choose what products they wish to purchase, and as a result of this partnership, now pay for that purchase when they checkout.
"In creating the cannabis industry's first complete online marketplace, our goal is to provide customers with a safe and simple way to shop for their cannabis," said Jane CEO Socrates Rosenfeld. "Through our partnership with CanPay, we are excited to expand our offerings to include online payments and provide dispensaries and consumers with a fully compliant, end-to-end shopping experience."
Any dispensary with compliant banking in any regulated market across the United States where online ordering and payments is allowed can quickly begin offering this free-to-the-customer convenience. This includes the more than 450 dispensaries already on the Jane platform and the over 200 dispensaries around the country accepting CanPay in their retail locations.
Cansortium Holdings, through their brand Knox Medical, leads the way as the first cannabis retail group to adopt online ordering and payments powered by the Jane and CanPay partnership. Knox Medical even co-funded the development of Jane Technologies' API to make this integration possible. All Knox Medical dispensaries, located in Florida, Texas, Pennsylvania and Puerto Rico currently accept CanPay as a payment method.
"An improved buying experience is essential to our mission of expanding access to safe, consistent, and effective medical cannabis," said Jose Hidalgo, CEO of Cansortium Holdings. "As partners, Jane Technologies and CanPay align with those values, and together they've built the kind of intuitive e-commerce experience that our patients have come to expect in their everyday lives. We're excited to be the first to roll out our online storefront with payments and make the buying process safer and more convenient for our patients across the country."
Aurora Cannabis Receives Final Regulatory Approval and Completes Acquisition of ICC Labs
The deal reflects an aggregate purchase price of approximately $290 million.
EDMONTON, Nov. 22, 2018 /PRNewswire/ - Aurora Cannabis Inc. and ICC Labs Inc. are pleased to announce today the completion of the previously announced plan of arrangement pursuant to which Aurora has acquired all of the issued and outstanding common shares of ICC for $1.95 per share (payable in common shares of Aurora), reflecting an aggregate purchase price of approximately $290 million. ICC is now a wholly-owned subsidiary of Aurora. Completion of the Arrangement follows receipt of approval of the Arrangement from the Instituto de Regulación y Control del Cannabis, the Uruguayan regulatory authority overseeing the regulation and control of cannabis in Uruguay.
ICC's common shares will be delisted from the TSX Venture Exchange, subject to TSX-V approval, and applications will be made for ICC to cease being a reporting issuer.
The acquisition of ICC establishes Aurora as an industry leader in Latin America, a region which encompasses more than 650 million people from across Mexico, the Caribbean, Central America, and South America. ICC, based in Uruguay, the first country in the world to legalize cannabis for adult consumer use, has developed a strong portfolio of high-quality, low-cost production assets, product offerings, and commercial agreements. Located in Uruguay's free trade zone, ICC's state-of-the-art science and GMP compliant processing facility, the first of its kind in Latin America, brings very significant capacity and early mover advantage to build significant market share both in Latin America and the international cannabis and wellness markets.
Acreage Holdings Acquires Blue Tire Holdings to Bring Cannabis Products to Michigan
Blue Tire and Acreage will work together to acquire licenses to operate in the cannabis business in Michigan.
NEW YORK, Nov. 26, 2018 – PRESS RELEASE – Acreage Holdings, Inc. has announced it has entered into an agreement to acquire the real estate assets of Michigan-based Blue Tire Holdings, LLC to bring cannabis products to Michigan residents throughout the state. Leading development efforts in the state will be a team of Acreage Holdings and Blue Tire experts, including Blue Tire's chief medical officer, Dr. Saqib Nakadar, who was recently appointed to the Michigan Medical Marijuana Advisory Panel. Dr. Nakadar brings unparalleled medical cannabis experience and regulatory access to the venture for the state of Michigan.
Blue Tire spent the past several years acquiring a portfolio of real estate assets which, now through the expertise and financial resources of Acreage, are optimally suited to building a large scale vertical operation in Michigan, one of the highest per capita cannabis-use markets in the United States. Blue Tire and Acreage will work together to acquire licenses to operate in the cannabis business in Michigan with respect to such properties. Acreage will invest significant financial capital in Michigan to build out existing operations and hopes to acquire additional dispensary operations over the next few years.
The venture is already well positioned to start dispensary operations with municipal licenses in key cities throughout the state including Detroit, Bay City, Battle Creek, Lansing and Ann Arbor. Real estate assets have been secured in strategic locations, including a 55,000-square-foot facility in Flint that will serve as a large-scale mixed use indoor facility to cultivate high-end cannabis, provide manufacturing and packaging services, and serve as a flagship retail location. Acreage will also leverage an additional 30-acre property in Vassar with a licensed greenhouse cultivation and processing facility.
Acreage also brings to Michigan a deep team of experts from leading companies in retail, spirits and other highly regulated industries. Acreage's Board of Directors has unparalleled levels of political access and corporate governance with members including former Speaker of the House of Representatives John Boehner, former Prime Minister of Canada Brian Mulroney, former Governor of Massachusetts Bill Weld, former tw telecom (formerly Time Warner Telecom) Chairman and Chief Executive Officer Larissa Herda, former IBM Chief Financial Officer Douglas Maine and Chair Blue Cross and Blue Shield of Massachusetts, Inc., Bill Van Faasen.
Legislative Map
Cannabis Business Times’ interactive legislative map is another tool to help cultivators quickly navigate state cannabis laws and find news relevant to their markets. View More