Los Angeles, CA (March 1, 2021) – PRESS RELEASE – Today, Shawn ‘JAY-Z’ Carter and his cannabis brand, MONOGRAM, a part of The Parent Company (“TPCO Holding Corp.”) (NEO: GRAM.U, GRAM.WT.U) (OTCQX: GRAMF; OTC PINK: GRMWF) house of brands, launch a nationwide awareness campaign focused on cannabis law. The out-of-home and digital series draws attention to the hypocrisy of current regulations governing cannabis throughout the United States, with shockingly factual headlines set against the backdrop of eight striking portraits of individuals who have been charged for cannabis-related offenses. With 45 years having passed following the onset of the War on Drugs, MONOGRAM’s campaign highlights the lack of progress made since, along with the outsized consequences still facing those who have been victimized by its lasting effects across the U.S.

“Cannabis laws are out of date and disproportionately cruel and punishing when compared to the rest of the legal code. We still don’t have proper regulation for texting and driving in Missouri, but staying home and smoking weed will get you locked up,” shared Mr. Carter. “I created this campaign to amplify the voices of those who have been penalized for the very same thing that venture capitalists are now prospering from with the emerging legal cannabis market. Far too often we forget that these are real people whose everyday lives and futures have been affected by this outdated legislature - people like Bryan Rone, who can no longer pursue a career in sales because of a cannabis-related conviction in 2003.”

As demonstrated by the results of the 2020 election, more and more states are moving towards legalization as voters and lawmakers recognize the potential economic and wellness benefits the plant can provide. However, while some progress has been made, cannabis continues to be stigmatized by political agendas and arbitrary borders that still demarcate who can benefit from it, whether that’s through entrepreneurship or the positive effects of its use. MONOGRAM aims to shed light on just how antiquated these regulations are by juxtaposing them with far more divisive realities, depraved vices or dangerous transgressions - from cannibalism to flamethrowing - each of which is still permitted in the eyes of local lawmakers. These murals, billboards, mobile ads and wild-postings are currently on display across Los Angeles, San Francisco, New York, Chicago, Washington D.C. and Miami, with plans to expand to additional cities before the end of March.

While MONOGRAM endeavors towards a future through which cannabis can assume its rightful place in culture, the campaign’s depictions of real people negatively affected by the War on Drugs underscore that there is still significant work to be done to repair the injustices of its past. Beyond high-impact static visuals, the campaign will also introduce video testimonials from its eight featured individuals, offering each the chance to share their firsthand experience with inequitable punishment for cannabis offenses in the U.S. This footage, which will live on the MONOGRAM website, www.MONOGRAMCOMPANY.com, as well as the brand’s Instagram (@MONOGRAMCOMPANY), Twitter (@MONOGRAMCOMPANY) and YouTube (MONOGRAM) channels, takes viewers through the subjects’ personal dealings with the criminal justice system, speaking to issues like profiling and excessive charging. Each participant contributes details of how their life has been impacted by unjust policing practices, with irreversible consequences ranging from financial penalties to incarceration.

Through each and every initiative, MONOGRAM seeks to bring dignity to cannabis culture, which cannot be accomplished without righting the wrongs of the past. Steve Allan, CEO of The Parent Company, shared the following:

“One of the founding principles of The Parent Company was to foster social equity in cannabis. The disproportionate effects of the War on Drugs have been devastating, and we believe it is our responsibility to lay the stage to begin the process of righting the many wrongs against the Black and other minority communities.

"With this goal in mind, The Parent Company has funded a social equity ventures program to give Black and other minority entrepreneurs equal opportunity for participation in the legal cannabis industry. Led by Shawn ‘JAY-Z’ Carter and Desiree Perez (CEO of Roc Nation), this program will identify and fund the next generation of cannabis business leaders who are building value for their communities and diversity in our industry. The social equity ventures program will officially launch in the coming months.

"In addition to the social equity ventures program, The Parent Company is empowering our house of brands to amplify this call to action as a part of their own advocacy campaigns. We are proud of MONOGRAM’s ground-breaking efforts to address such an important issue.”

When she worked in the fields of natural products and dietary supplements, policy attorney Amber Littlejohn started doing some work in the hemp and CBD space. And not only for that reason, the career change to serve as senior policy adviser for the Minority Cannabis Business Association (MCBA) in some ways placed her in a comparable atmosphere.

The cannabis and hemp markets are similar to the natural products and dietary supplement industries, Littlejohn said, because all of them are “heavily regulated,” “emerging” and “embattled.”

Photo courtesy of Amber Littlejohn

“Another really significant overlap [is that] while there are big players, innovation and culture around the products are really driven by small companies,” she said. “And I wanted to make sure that as we’re growing the cannabis industry that there are adequate opportunities for small and especially small minority businesses."

Littlejohn has now been with MCBA for almost two years, first working on its federal policy program as senior policy adviser, then taking the helm as executive director this past November.

“Our leadership has done an extraordinary job of creating policies and building the reputation of the organization,” Littlejohn said of MCBA’s work. “And so, now, we really want to leverage that to be a strong resource for our community, both in providing the resources that people need to enter and succeed in the industry, as well as driving policy around the country.”

In an interview with Cannabis Business Times, Cannabis Dispensary and Hemp Grower, Littlejohn expands on the importance of strengthening small businesses and businesses owned by people of color—and how it can be done.

This interview has been edited for length and clarity.

Patrick Williams: What are you currently most excited about that's going on at MCBA?

Amber Littlejohn: I am most excited about our growing ability to engage a broader cross-section of our membership and community. We are seeing new opportunities through committees and advisory boards to be able to really leverage the voices and have the voices of both operators and community members become a more meaningful part of the discussion. So often around the country, the voices of minority operators are absent in the discussion. And so, we want to make sure that that’s heard. The large corporate interests—the multi-state operators—do a great job of advocating for their interests. The criminal justice and social justice activists have been doing this for quite some time and are great at advocating for the needs of the community in that regard. But we really want to make sure that economic justice is part of the discussion and that as we are … building any sort of a functioning legal cannabis framework that equity is a cornerstone of that and that equity is inclusive of policies that create and sustain opportunities for small, minority-owned businesses.

PW: Could you talk about how the challenges and opportunities surrounding representation and social equity compare when you're looking at both the state-legal market and the hemp market?

AL: Some of the ways that they're similar is that there is a gigantic opportunity and resource gap between small minority businesses and some of the larger operators. When you are entering a heavily regulated, capital-intensive industry, there is a gigantic learning curve in terms of making the connections you need to within the supply chain, the technical compliance issues, and even just some of the foundational business knowledge that in the communities that have been most impacted by prohibition are not always there or accessible. And I would say that carries through to the hemp industry as well. I would say the one major difference there is that while access to capital is an issue in the hemp industry, it is an extraordinary issue when it comes to the cannabis industry and to federal prohibition on lending to cannabis businesses.

PW: In states where cannabis is fully legal and state-legal programs are set up, could you talk about what social equity programs are doing right and what they're doing wrong?

AL: One thing that's happening the right way is that around the country, we are definitely seeing that there is a commitment to equity being a part of any legal framework. And that's promising, and that's heartening. I feel one of the biggest challenges, though, is ensuring that the language that's included and the provisions that are put forth are truly actionable and meaningful. Social equity language can sound good, but if there isn't funding, if there are extraordinary regulatory hurdles baked into either the qualification or the framework itself, that can yield results that are inequitable. Again, another issue is going to be access to capital, access to properties and real estate, zoning laws—all of these things are hurdles that need to be addressed as we're going through these frameworks if we want the end result to be equitable and not just the language in the law.

PW: Why don't we see more social equity programs in medical-only states?

AL: So, that's interestingly enough something that we're looking at in the state of Virginia, and looking at the possibility of expanding the medical program there with a focus on social equity and small business. [Why] I don't think we see more of that is that—again, this is baked into the regulations of many medical programs: a requirement to create hurdles that are insurmountable for all small businesses, especially minority-owned small businesses.

So, we want to make sure that when we're looking at medical programs—either new medical programs [or existing ones]—that they are ensuring that there are opportunities created within that framework that are accessible and sustainable. A good example is extraordinarily high canopy minimums that require tens of thousands of dollars in startup capital. … Also, most states have … medical programs [that] have limitations … [on] who can operate that exclude some of the individuals that have been most impacted by prohibition.

I really do think it's important that as we are going through the legalization process, that in addition to expanding the medical program—or expanding medical programs throughout the country with an eye towards equity and small business—that we're also reevaluating existing medical programs to provide opportunity, because what we're seeing is a push toward co-location of adult-use licenses with medical operators. And this can have—depending on the market, this could have a very [big] impact from completely consuming the market and leaving little for anyone else, as we see in Arizona, to potentially providing the opportunity for medical operators to incubate or support small minority businesses. So, again, it’s something that absolutely has to be revisited because we don’t want to see non-diverse medical operators control any market.

PW: Did Americans' increased outspokenness about systemic racism and police brutality last year shift the focus of the cannabis and hemp industries at all—or highlight how focuses should be shifted—to better suit the needs of people of color?

AL: Yeah, absolutely. We had started to see a shift before that in some circles. But as of last year, we really have seen a recommitment and a recognition that this can't move forward without equity being a strong element of the program. Last year, MCBA worked with the U.S. Hemp Roundtable to create the Minority Empowerment Committee there, which was an extraordinary step for the hemp industry, in both recognizing its own history as an industry and the need to move forward with a greater focus on diversity. So, we've done, again, some great work, both in bringing some new ... programming and even shifting the policy priorities of the hemp industry to focus on issues like the drug felony exclusion that's in the 2018 Farm Bill.

PW: Also last year, you joined the board of the U.S. Hemp Authority. Are you working with them on issues of representation as well? 

AL: The U.S. Hemp Authority focuses primarily on standards-setting for the industry. Regulatory compliance and having the ability to have guidance and support in creating safe and effective products is something that is necessary for all businesses. But when it comes to the ability to navigate a crowded market, we want to make sure that we are making accessible to smaller businesses the advantage of third-party certification, [for them] to be able to stand out in that industry, so definitely wanting to reach a broader audience to provide greater understanding on the labyrinth of compliance. We had some individuals from the Hemp Authority participate in some educational events and really helping to better inform the community on [the] … framework that we have for hemp.

PW: What types of policy and funding do you feel need to be built into a federal cannabis legalization bill so that legalization helps repair the harms of prohibition?

AL: We need to ... incentivize [government] to create frameworks that are supportive and inclusive of the communities that have been most impacted by the war on drugs. We also want to see a significant amount of the revenues directed back into the communities in ways that are beyond just the industry, but working at restoring some of these generational [funds that address] … prohibition and the incarceration that surrounded prohibition. It's also really necessary to take a look at the framework itself that's created because again, if you're excluding from the industry individuals that have been most impacted, that is an unacceptable result. We need to make sure that we are able to [assign] appropriate regulatory burdens to small businesses so that, again, small businesses and small minority-owned businesses are just not buried in costly and unnecessary regulations.

PW: We have heard that nonprofits have been compelled to pay taxes in the cannabis industry. How can that be remedied?

AL: So, in 2018, [the government] passed a rule that any organizations that advocate for the cannabis industry are not able to receive a determination letter from the IRS, which means that we can't get federal nonprofit status. There are some organizations that were grandfathered in, but at that time, MCBA was not officially recognized as a federal nonprofit. So, this means that older, established organizations that had previously completed the [registration] process can advocate, and organizations that advocate against the cannabis industry can receive federal nonprofit status. But organizations like MCBA or any of the newer, emerging social equity organizations, cannot get those same protections. So, it leaves us, firstly, paying taxes on what we raise. And then additionally, it limits contributions from organizations that are looking for opportunities to get to actually federally [recognized] nonprofit [status]. So, it does limit the growth of organizations like ours. We are of the mind that it is pretty clearly unconstitutional, given the fact that it only keeps from nonprofit status organizations that are advocating for, not organizations that are advocating against, [cannabis].

PW: What can the cannabis industry do to honor Black history and the history of people of color throughout the entire year and recognize how Black history has led to where we are today? (This interview was conducted in February, Black History Month.)

AL: It's important to realize that equity is woven throughout everything that we do. Equity is not just D&I [diversity and inclusion]. It is not just a statement that you're making on social media. And it's not just narrow, one-off initiatives. It is woven through your practices from seed to sale and beyond. It is your supply chain. It is how you are reinvesting money. It's about policy. And it's important that when, especially the larger companies are moving throughout markets and communities that they're understanding how the policies that they are supporting are going to impact communities. And so, if you're looking at [supporting] monopolies, that is not promoting equity.

If you are supporting a system or a framework that doesn't have meaningful opportunities for communities of color, you are not actually supporting and creating equity. If there is not community reinvestment, if you are not focused on ensuring that alongside legalization comes the restoration of communities, that's not true equity. So, equity needs to be a part of all decision-making, from, again, your events and DEI [diversity, equity and inclusion] policy to your regulatory policy. And so, it’s important that industry is looking for Black voices and voices of color, and representation, throughout the company, and not just in departments that are handling either community outreach or DEI.

Sean Pavone | Adobe Stock

Implementing an adult-use cannabis program doesn’t happen overnight, but it’s officially on the to-do list for the Virginia state legislature. Pending Democratic Gov. Ralph Northam’s signature, Virginia would become the first southern state to legalize cannabis, but not until Jan. 1, 2024.

The state’s legislative chambers overcame differences to pass a compromise bill on Saturday—Senate Bill 1406 and House Bill 2312—to legalize cannabis possession, personal cultivation and retail sales for adults 21 and older.

RELATED: Virginia Is Moving Quickly on the Governor’s Cannabis Legalization Proposal. But What Happens Next?

The partisan bill drew three sponsors and two co-sponsors, all Democrats, in the 40-seat Senate, as well as five sponsors and 20 co-sponsors, all Democrats, in the 100-seat House. When Democrats flipped both chambers in 2019, they gained control of both the legislature and governor’s office for the first time in more than two decades.

“Equitable legalization of marijuana is an essential step towards racial justice in Virginia,” House Majority Leader Delegate Charniele Herring, primary sponsor of H.B. 2312, said in a prepared statement. “We have created a plan to start this important work, and we will continue to move forward and compromise to get this work done together.”

Northam, who supports adult-use legalization, unveiled a proposal in January that would have allowed cannabis sales to start Jan. 1, 2023—a year earlier than the legislature’s timeline. Northam has the option to approve the compromise bill, amend it or veto it.

Jenn Michelle Pedini, the development director for the National Organization for the Reform of Marijuana Laws (NORML), said in a press release she hopes to continue working to accelerate specific facets of the push for legalization.

“This effort remains a work in progress and our efforts in Virginia are far from over,” said Pedini, who also serves as the executive director of Virginia NORML.

“NORML is dedicated to continuing our work with lawmakers and regulators to advance legislative reforms that are most closely aligned with the views of the majority of Virginians who desire a safe, legal cannabis market,” she said. “In particular, we hope to expedite the timeline with which Virginia adults will no longer face either criminal or civil penalties for the personal possession and cultivation of cannabis.”

Statewide polling data released Feb. 2, 2021, by Christopher Newport University’s Watson Center for Civic Leadership, showed that 68% of registered voters in Virginia, including majorities of Democrats and Republicans, support adult-use cannabis legalization. That mirrored the 68% of Americans who support legalization, according to a November 2020 Gallup poll.

Highlighted in the compromise bill passed Saturday is the automatic sealing of low-level past cannabis offenses, a social equity program that would promote inclusion in the legal cannabis industry and the earmarking of 30% of tax revenue to a Cannabis Equity Reinvestment Fund, a program to provide scholarships, training and workforce development opportunities in areas hit hardest by prohibition.

Steve Hawkins, the executive director of the Marijuana Policy Project (MPP), an organization that works solely on cannabis policy reform in the U.S., said in a press release that Virginia is an example of how enacting cannabis legislation can do more than just legalize the cultivation, sale and use of a flowering plant.

“Virginia legislators are proving that it is possible to work swiftly to pass legislation that would not only legalize cannabis, but also address the disproportionate harm caused by decades of prohibition,” Hawkins said. “Virginia is on the brink of becoming the 16th state to end cannabis prohibition and replace it with sensible legalization and regulation for adults 21 and over. MPP is proud to have played an important role in all three states where legislatures have voted to legalize cannabis—Vermont, Illinois, and now Virginia.”

As the compromise bill stands, adults 21 and older could possess up to 1 ounce of cannabis, or the equivalent amount of cannabis products, beginning Jan. 1, 2024. Adults could securely and discreetly cultivate up to four cannabis plants at their primary residence. Possessing more than an ounce, but no more than 1 pound, would be punishable by a civil fine of up to $25. And possessing more than a pound could result in one to 10 years in prison.

In addition, punitive measures would be in place for public consumption, consumption in a motor vehicle, possession by minors, possession on school grounds and transportation of cannabis into the state.

Also in the bill, legislators agreed to establish an independent agency in July 2021, the Virginia Cannabis Control Authority, to oversee regulations and licensing, inclusion and equity. A five-member board of directors would institute the number of licensees, which could not exceed 400 retailers, 25 wholesalers, 450 cultivators and 60 product manufacturers. A state tax of 21% at the point of retail sale would be levied, in addition to standard 6% sales taxes. Localities could impose a tax of up to 3% on sales to consumers in the municipality.

Many of the provisions in the 300-page bill are subject to a second review and vote by members of the General Assembly in 2022. However, provisions that do not require further action include legalizing cannabis possession and sales on Jan. 1, 2024, as well as the start of regulatory work. 

“The advancement of this legislation is another historic step for cannabis justice in Virginia,” Pedini said. “Stakeholders, the administration and the legislature have dedicated hundreds of hours to craft legislation that is just and equitable, and that will replace the failed policy of cannabis prohibition with one that promotes Virginia’s economy as well as Virginians’ public health and safety.”

This week, we’re spotlighting state cannabis markets in various states of flux: hung up in court, on the precipice of sales and somewhere in the early stages of the transition from medical to adult-use. It’s an exciting time in the industry. As 2021 opens, we can see new business landscapes taking shape in nearly every corner of the U.S.

Federal reform, while far from clear, is inching closer into our sightlines, too.

Here are some of the top headlines from this past week:

• Despite the entire adult-use market being held up by a recent appeals court ruling (deemed unconstitutional, in fact), South Dakota legislators are moving forward with plans to license retail businesses. It’s new territory for the cannabis landscape, and it remains unclear how this tension will resolve. Read more 
  
• Meanwhile, in West Virginia, dispensaries are getting ready to open their doors once product is in place later this year. Read more 
• And in Pennsylvania, a bipartisan bill has emerged that would legalize adult-use cannabis. It’s a significant step forward in a state whose governor and lieutenant governor have championed the cause. Read more 
• In Arizona, Verano Holdings announced its acquisition of Territory Dispensary, expanding the multi-state operator’s footprint in this newly legalized adult-use market. Read more 
• Texas Original Compassionate Cultivation CEO Morris Denton provided a glimpse into his business’s response to severe winter weather this month. “Our team is a resilient bunch,” he said, “and very purpose-driven and passionate about doing our best to get our medicine safely and quickly into the hands of our patients whom we serve throughout the state of Texas.” Read more 
  

And elsewhere on the web, here are the stories we’ve been reading this week:

• Virginia Mercury: As of Friday morning, Virginia lawmakers were scrambling to align an approach to adult-use cannabis legalization—resolving differences over regulatory language set up for 2021—and it wasn’t quite clear whether a Saturday deadline would be met. Read more 
  
• NJ.com: New Jersey Gov. Phil Murphy has announced his picks for the Cannabis Regulatory Commission, which will oversee the recently legalize adult-use marketplace. Read more  
  
• MLive.com: Cookies, which already had a retail site in Detroit (medical-only, for now) celebrated its grand opening in Kalamazoo, Mich., on Friday. Read more   
  
• ABC15: While Arizona got off to a quick start with its adult-use licensing process, the medical cannabis market in rural areas of the state is suffering. Retailers have sued the state, insisting that the licensing procedure over the past few years has left an imbalanced landscape for patients to navigate. Read more  
  
• Marketwatch: Soccer star David Beckham’s cannabis skin care company, Cellular Goods, is off to a hot start on the London Stock Exchange—only a few days after the trading platform began allowing cannabis businesses into the fold. Read more