DENVER, Thursday, October 18, 2018 -- PRESS RELEASE -- The adult-use marijuana industry in Colorado continues to grow, according to data in a trio of regularly issued reports released by the Colorado Department of Revenue (DOR) and its Marijuana Enforcement Division (MED). The reports include MED’s mid-year update, the monthly marijuana sales and tax revenue reports alongside the methodology of Oct. 1 Average Market Rates (AMR), all released in the past 30 days. 

“Data collection is one of the hallmarks of the state’s robust regulatory structure for the commercial, regulated marijuana industry,” said Mike Hartman, DOR executive director. “We closely monitor all available data when evaluating licensee compliance and industry trends, and when drafting industry regulations, with the priority always being the protection of public health and safety.”

MED’s mid-year update is one of two reports issued annually by the Division to provide an aggregate overview of marijuana business licensing, plant counts, volume sold to consumers, testing data and investigations. Key findings from this update include:

• Adult-use marijuana business licenses continue to be the majority of new licenses issued, at 77 percent of all new licenses in the first half of 2018. Thirty-six percent of all new business licenses were adult-use cultivations during that same time period.
• Denver, Pueblo, El Paso and Boulder counties cultivated 80 percent of all plants grown statewide in June 2018. 
• Flower sales remain relatively consistent while edibles and concentrates continue to grow (increased by 13.8 percent and 94.6 percent respectively). 

Additionally, the marijuana tax revenue and sales reports also show growth, with sales so far this year exceeding $1 billion and revenue topping $200 million. Marijuana sales in August saw a 2.6 percent increase in a year-over-year comparison from last year or $25.9 million increase from 2017. On the revenue side, there was a 10.3 percent increase from last year or $18.7 million increase from 2017. 

In a continuing trend, the average price per pound of bud and trim fell from the previous quarterly update, specifically to $759 per pound for the bud rate (from $846) and $325 per pound for the trim rate (from $404) as did the trim allocated for extraction rate. The bud allocated for extraction rate and seed rate remained relatively steady, while immature plant rate increased. Increased supply of marijuana, marijuana product and marijuana concentrate is believed to be one factor driving down the price of the bud and trim rates. 

AMR is defined as the average price of all unprocessed retail marijuana that is sold or transferred from retail marijuana cultivation facilities to retail marijuana product manufacturing facilities or retail marijuana stores. The October 1 AMR was calculated based on retail marijuana transactions recorded from May 1, 2018 through July 31, 2018 in DOR’s Marijuana Enforcement Division (MED)’s marijuana inventory tracking system. 

For MED’s 2018 mid-year report, visit here: https://www.colorado.gov/pacific/enforcement/med-updates
For monthly marijuana sales reports, visit here: https://www.colorado.gov/pacific/revenue/colorado-marijuana-sales-reports
For monthly marijuana tax revenue reports, visit here: https://www.colorado.gov/pacific/revenue/colorado-marijuana-tax-data
For the latest AMR, including the methodology, visit here: https://www.colorado.gov/pacific/tax/marijuana-taxes-file

PRESS RELEASE - The list for pesticides that can be used on cannabis without being a violation of the Pesticide Applicators' Act has been updated. Please note the following products have been added:

• Athena Mildew Control
• Athena Spider Mite Control

To view the updated list, click here for a pdf or click here for an Excel form. For questions regarding this change, contact Laura Quakenbush at (303) 869-9060 or email Laura.Quakenbush@state.co.us.

The Colorado Department of Agriculture (CDA) is currently reviewing pesticide labels upon request and maintaining a list of products whose label it has reviewed that it believes could be used on marijuana without violating 35-10-117(1)(i), as long as the applicator follows the label directions.

Please be sure to review the list; pesticide products may be removed from the allowed products list if the registrant has not renewed their pesticide product with the Department. Use of unregistered pesticides on cannabis would be a violation of the Pesticide Applicators' Act.

Stay Informed

For the latest information on CDA's Pesticides Program, visit these important webpages:

• Main Pesticides Page
• Pesticide use in Marijuana Production
  

VANCOUVER, October 18, 2018 – PRESS RELEASE – C21 Investments Inc. has  announced that it has entered into definitive agreements for the June 18, 2018 announced acquisition of Phantom Venture Group LLC and Phantom Brands LLC (together Phantom Farms) and SDP Development Group, LLC (SDP), the owner of the real property used in the Phantom Farms business.

Phantom Farms has outdoor cannabis cultivation facilities totalling 80,000 square feet plus an additional 40,000 square feet under development in Southern Oregon. In addition, they operate a 5,600-square-foot facility which includes a wholesale distribution warehouse and an extraction laboratory, plus a 7,700-square-foot state of the art indoor grow facility in Central Oregon. SDP currently leases such property to Phantom Farms.

“Phantom Farms is a high-quality operation with a talented team producing some of the finest products in Oregon,” said Robert Cheney, president and CEO of C21 Investments. “Phantom Farms is among several successful companies set to join C21 Investments in order to make us a world-class, vertically integrated cannabis company.”

“We are excited to be part of a growing company with passionate employees who are committed to the quality of the products they produce and the communities they serve,” said Sky Pinnick, CEO of Phantom Farms. “Joining C21 Investments will enable us to expand our operations and establish our brand as a powerhouse in the global cannabis industry.” 

C21 Investments’ strategy is to acquire existing and successful cannabis operations with experienced management teams in place. C21 Investments’ focus is to expand into jurisdictions where it can wholly own indoor/outdoor cultivation operations, processing/extraction facilities, bakeries, branded products, and retail dispensaries with a large distribution network.

Terms of Phantom Farms Acquisition

The Phantom Farms acquisition is subject to prior approval of the Oregon Liquor Control Commission (OLCC) which is expected to be received in  approximately 3 months, with closing to occur following receipt of approval. On closing, C21 Investments will acquire 100 percent of Phantom Farms’ membership units.  The aggregate purchase price payable is (1) US$8,010,000 payable by the issue of 2,670,000 common shares at a deemed price of USD$3.00 per share, (2) 2,000,000 share purchase warrants of C21 Investments, with each warrant exercisable for one share at a price of CAD$1.50 per share, and (3) up to an additional 4,500,000 shares upon C21’s Oregon business achieving certain performance targets over up to a 7-year period following the closing date.  

Terms of SDP Acquisition

Closing of the acquisition of the SDP membership interests has been deferred until October 2020. Until then, Phantom Farms will continue to lease the real property from SDP at market rents. On closing, C21 Investments will acquire 100 percent of SDP’s membership units for an aggregate purchase price of US$8,010,000 payable in cash, or, at the election of the vendors, in whole or in part by the issue of 2,670,000 shares at a deemed price of USD$3.00 per share.

Washington, DC - PRESS RELEASE: The National Organization for the Reform of Marijuana Laws (NORML) is welcoming world famous musician David Crosby (founding member of Crosby, Stills, Nash & Young and The Byrds) to its Advisory Board.

Commenting on joining the organization, Crosby stated, “I’d like cannabis to be legal everywhere. I knew people who were in jail for years over a couple of joints and it’s just not right. I do feel a responsibility to stick up for people who have been stuck in jail for it unfairly, and that is why I’m partnering with NORML to lend my name and talents to help end our multi-decade failure that is prohibition. Bottom line is: It should be legal and people shouldn’t be going to jail for it, and I want to reinforce that to the degree that I can.

“People are looking at the success in places like Colorado and Oregon. The places that have done it are winning and they will have money for schools, roads, and hospitals and are no longer arresting otherwise respectable adults for consuming marijuana. I’m proud to join the NORML Advisory Board to help bring this sensible policy to the entire country.”

NORML Executive Director Erik Altieri welcomed Crosby to the Advisory Board, saying,“We are absolutely ecstatic that David wants to lend his considerable talents and celebrity to help advance the cause of marijuana law reform. While we have made great progress in ending our country’s failed prohibition, with nine states plus the District of Columbia legalizing the adult use of marijuana and 31 states allowing for medical access, there is still much work to be done. Despite all our gains, over 650,000 Americans were arrested for marijuana-related offenses last year. Together with David, we will continue to fight for legalization across the country. We will end this disastrous war on marijuana consumers that has gone on for far too many decades and ruined far too many lives.”

Music legend David Crosby is best known for being a founding member of two of the world's most successful rock bands: Crosby, Stills, Nash & Young and The Byrds. The globally-recognized, Grammy award-winning singer, songwriter, guitarist, author and activist has had an unparalleled career and sold over 35 million albums worldwide. His songs are heard by millions around the world each day, and he has twice been inducted into the prestigious Rock & Roll Hall of Fame as well as the Songwriters Hall of Fame. He now serves on the NORML Advisory Board alongside other notable advocates such as country music legend Willie Nelson, former Dallas Cowboy Mark Stepnoski, Harvard Professor Emeritus Lester Grinspoon, and movie and television producer Ann Druyan.