A.B. 45, a once-contentious bill that would legalize CBD products in the state, has gained support from the governor and heads to a final vote next week.
Assembly Bill 45 in California has been a contentious piece of legislation: While it would open up the ingestible cannabidiol (CBD) market in the state, it would also ban smokable hemp. But U.S. Hemp Roundtable (USHR) announced Sept. 1 that it has compromised with Gov. Gavin Newsom to remove the smokable hemp provision of the bill, leaving two of hemp’s most lucrative hemp markets open in California should the bill pass.
According to a written statement from the industry organization, the smokable hemp ban has been “replaced by a phase-in approach that will permit [its] sale to adults and the immediate manufacture of smokable products to be sold in other states.”
In addition to allowing smokable hemp, A.B. 45 would also permit cannabinoids and other hemp extracts to be added to dietary supplements, food, beverages, cosmetics and pet food, all of which is currently prohibited in the state.
The smokable hemp ban was a compromise made to advance CBD legislation once state lawmakers failed to reach an agreement on a similar bill before the end of last year's legislative session, USHR General Counsel Jonathan Miller told Hemp Grower back in January, adding that "perfect is the enemy of the good.”
Notably, Newsom is up for a recall in the state, with a vote taking place Sept. 14 to potentially replace the governor. (According to FiveThirtyEight, the pre-election polls show a tight race, with about 51% indicating they want to keep the governor.)
However, USHR is aiming to see a final vote on the bill just before that election. A.B. 45 is due for a final vote in the state Senate Sept. 8 and a final vote in the state Assembly later that week. It has so far passed six legislative committees and “the Assembly floor with only a handful of no votes,” the statement from USHR says. The bill contains an urgency clause, meaning it will become effective upon a signature from Newsom.
Previously, the California Hemp Council had expressed its opposition to the bill, in large part because of its ban on smokable hemp. USHR says it coordinated with the organization to remove the contentious provision.
“We are deeply grateful for the leadership of Governor Gavin Newsom, who met with Roundtable leadership and was deeply invested in securing passage of this bill. We are also appreciative for the leadership of the California Hemp Council, the voice of the state’s hemp industry, which partnered with the Roundtable, other California stakeholders, and, of course, our amazing bill sponsor, Rep. Cecilia Aguiar-Curry, to secure the final compromise,” says the USHR statement.
The statement urges those from California to send a letter to state lawmakers supporting the bill through USHR’s website.
Courtesy of Planet 13
Planet 13 Announces Plans to Open SuperStores in Orlando and Miami
Planet 13 entered into a definitive agreement with a subsidiary of Harvest Health & Recreation Inc. to acquire a license in Florida.
Planet 13 today announced a definitive agreement with a subsidiary of Harvest Health and Recreation that will see the Las Vegas-based vertically integrated SuperStore retailer moving into Florida. The license at the heart of this agreement will allow Planet 13 to open as many dispensaries as possible, and the company plans to start with the Orlando and Miami medical cannabis markets.
The acquisition clocks in in $55 million.
"Florida has long been one of our most coveted markets with over 20 million residents, 130 million annual visitors and incredible consumer demand already demonstrated in the medical program. It was important for us to enter the market prior to a transition to adult-use to put the pieces in place to capitalize on this market in both the short and long term," said Larry Scheffler, Co-CEO of Planet 13, in a public statement. "We are excited to introduce our best-in-class retail experience and portfolio of popular products to the Florida market and to continue to build the Planet 13 brand across the United States."
As of late August, according to the company, there were 22 companies holding vertically integrated licenses in Florida, with 371 dispensaries among them.
This Florida agreement follows Planet 13's recent retail license win in Illinois (although that batch of lottery winners in Illinois' retail licensing program remain in limbo). The plan in Illinois is to open a similar SuperStore in the Chicago area.
The SuperStore model can be seen thus far in Las Vegas (with a 120,000-sq.-ft. "cannabis complex" just off the Strip) and in Santa Ana, Calif. (pictured above).
"After a lot of planning on how we wanted to approach this market, now is the time for action. We are well capitalized to complete the initial buildout of our cultivation and retail plan which includes a network of neighborhood stores in priority metro areas to support future SuperStores in Miami, Orlando, and other tourist destinations," said Bob Groesbeck, Co-CEO. We have a successful track record of completing large retail and cultivation buildouts on time and on budget. This expertise combined with our differentiated, experience-driven retail and diverse product portfolio gives us confidence moving into the Florida market."
Beacon Securities Limited is acting as financial advisor to the company in connection with the license acquisition.
Planet 13 Enters Into Definitive Agreement to Acquire Florida Cannabis License
The company will purchase a Medical Marijuana Treatment Center license from a subsidiary of Harvest Health & Recreation.
LAS VEGAS, NV / ACCESSWIRE / September 1, 2021 / PRESS RELEASE / Planet 13 Holdings Inc., a vertically-integrated national cannabis company, has announced that it has entered into a definitive license purchase agreement with a subsidiary of Harvest Health & Recreation Inc. pursuant to which a newly acquired subsidiary of the company to be renamed Planet 13 Florida Inc. will purchase a license to operate as a Medical Marijuana Treatment Center issued by the Florida Department of Health to the seller, and no other assets or liabilities, from the seller for US$55 million in cash.
Licensed Medical Marijuana Treatment Centers (MMTCs) are vertically integrated and the only businesses in Florida authorized to dispense medical marijuana cannabis to qualified patients and caregivers. MMTCs are authorized to cultivate, process, transport and dispense medical marijuana. As of Aug. 26, 2021, there were 22 companies with MMTC licenses with 371 dispensing locations across Florida. License holders are not subject to restrictions on the number of dispensaries that may be opened or on the number or size of cultivation and processing facilities they may operate.
"Florida has long been one of our most coveted markets with over 20 million residents, 130 million annual visitors and incredible consumer demand already demonstrated in the medical program. It was important for us to enter the market prior to a transition to adult-use to put the pieces in place to capitalize on this market in both the short and long term," said Larry Scheffler, co-CEO of Planet 13. "We are excited to introduce our best-in-class retail experience and portfolio of popular products to the Florida market and to continue to build the Planet 13 brand across the United States."
"After a lot of planning on how we wanted to approach this market, now is the time for action. We are well capitalized to complete the initial buildout of our cultivation and retail plan which includes a network of neighborhood stores in priority metro areas to support future SuperStores in Miami, Orlando, and other tourist destinations," said Bob Groesbeck, co-CEO. "We have a successful track record of completing large retail and cultivation buildouts on time and on budget. This expertise combined with our differentiated, experience-driven retail and diverse product portfolio gives us confidence moving into the Florida market."
As consideration for the license, the company will pay US$55 million in cash to the seller, with an initial deposit therefrom of US$2 million to be delivered by the company and held in escrow by a third party escrow agent upon execution of an escrow agreement as promptly as possible after the date hereof. The transaction is subject to certain closing conditions including the successful close of the Trulieve Cannabis Corp./Harvest arrangement transaction, the Florida Department of Health's Office of Medical Marijuana Use (OMMU) approval for Planet 13 Florida to acquire the license and other customary closing conditions. If the foregoing regulatory approval is not obtained, the company and seller will have the right to terminate the agreement.
Beacon Securities Limited is acting as financial advisor to the company in connection with the license acquisition.
Wana Brands Launches Wana Optimals Fast Asleep
Wana's new gummies harness the power of custom formulations of rare cannabinoids and other plant compounds to deliver sound sleep to the sleepless.
BOULDER, Colo. (Sept. 1, 2021) – PRESS RELEASE – As many as 70 million people in the United States wrestle with unsatisfactory sleep. But today, sleep sufferers across Colorado have a solution—Wana Optimals Fast Asleep gummies. Fast Asleep is the first product from Wana Brands’ new line of daily wellness products, Wana Optimals, that are steeped in science and crafted to help people achieve different health goals through the power of plants.
Leveraging proprietary encapsulation technology for quick onset in 5-15 minutes, the Wana Optimals Fast Asleep custom sleep formulation—powered by Wana’s ongoing research on minor cannabinoids and terpenes—is carefully crafted to address the root causes of sleeplessness, such as stress and physical discomfort, rather than simply inducing drowsiness, as with most sleep medicines. The majority of other products on the market are designed to knock a person out to sleep, while the Fast Asleep formulation is designed to get better sleep, faster.
Each fast-acting gummy contains 10mg CBD for calming and relaxing effects, and promoting REM sleep; 2mg CBN, which can lower stress, relieve tension, and alleviate physical discomfort; 2mg CBG for its relaxing and anti-inflammatory effects; 2mg THC, which works with the CBD to help regulate the body’s circadian rhythm; 1mg Melatonin, a sleep hormone to enhance the effects of these powerhouse cannabinoids; 30+ Specialized Terpenes, chosen via extensive user research for their sleep-promoting properties.
“At Wana, we are fully committed to harnessing the power of the cannabis plant and delivering on the many promises it provides for different consumer experiences and benefits,” said Nancy Whiteman, CEO of Wana Brands. “To do this, we are looking well beyond the two most well-known cannabinoids THC and CBD, at the many other cannabinoids and terpenes produced by the plant that are known to have their own pharmacological effects. Wana Optimals Fast Asleep is our first offering meant to achieve specific results like better sleep. Why use a sledgehammer when you can use a scalpel?”
Fast Asleep is the first product in the Wana Optimals’ line of daily wellness products that leverage the power of a variety of rare cannabinoids, including CBG and CBN, for their unique effects. As consumer education about and research into cannabinoids grows, demand for these potent and dynamic plant compounds will continue to spike. Wana is at the forefront of cannabinoid research and development, and its Optimals line stands as a leading-edge product. Wana Optimals Fast Asleep Gummies are vegan and organically sweetened.
Fast and effective, Wana Optimals harness Thermodynamic Individual Molecular Encapsulation (TiME), a quick-onset technology from Azuca. While traditional edibles result in metabolism of the cannabinoids by the liver, Wana Optimals feature individually encapsulated cannabinoids with greater bioavailability that work at the molecular level to bypass the liver and enter the bloodstream immediately. This means onset in less than 15 mins for most and feeling sleepy faster.
Fast Asleep gummies’ efficacy also depends in part on the suite of 30+ terpenes included in the Fast Asleep formula. Wana partnered with Abstrax and Effects Lab by Budboard to harness consumer data and AI algorithms to find correlations between strains — and their terpene profiles — that were noted by users to help with sleep. These terpene blends were replicated in the formulations used in the Fast Asleep product.
DRATHEVERLIVING | Adobe Stock
‘It Wasn’t Working Out for Farmers’: University of Maryland Researchers Say Hemp May Not Be Economically Viable Crop
Drs. Andrew Ristvey and Nicole Fiorellino have studied hemp production in the state since 2019 and concluded that it might not be a worthwhile crop for farmers under current market conditions.
In 2019, Maryland launched regulated hemp production under the 2014 Farm Bill, and roughly 65 growers partnered with various higher education institutions to study the crop.
Eleven of those growers joined forces with the University of Maryland for a study that primarily evaluated hemp’s nitrogen requirements.
And now, more than two years later, the researchers leading that study have a message for farmers contemplating hemp production: use caution.
“We never said don’t grow it,” Dr. Andrew Ristvey, a commercial horticulture specialist with the University of Maryland Extension, told Hemp Grower. “But we were saying, ‘Be cautious because we don’t know where we sit with the future market.’”
Through the university’s research, Ristvey and his colleague, Dr. Nicole Fiorellino, an assistant professor and agronomy specialist with the University of Maryland Extension, discovered several issues with hemp production in Maryland that could diminish the crop’s economic viability in the state.
For starters, Ristvey said, Maryland has some of the most progressive nutrient management regulations in the country to protect the Chesapeake Bay.
“Not many people know about it that aren’t from Maryland, but farmers are very much aware of the nutrient management regulations,” he said. “They have to deal with them every year, and it’s a complicated process, but any new plant that’s being grown, especially with the potential for high production, the University of Maryland needs to do the research to find out what the nitrogen and phosphorus requirements are. Those are the two nutrients that are being monitored because of their potential to disrupt surface waters with nutrient pollution.”
Another issue, Ristvey added, is pest and disease management. The Mid-Atlantic region’s climate is hot and humid—the perfect environment for various pests and diseases that can befall hemp crops.
Not many pesticides or fungicides are labeled for hemp, and Ristvey said, especially in 2019, there was almost nothing farmers could apply to control pests and diseases, and any number of them could decimate a crop.
“The biggest insect problem that we have is corn earworm, which jumps over from the corn and gets into the hemp flowers, and then it will damage hemp flowers and they rot,” he said. “If you’ve got a rotten flower head, how are you going to sell that? We don’t know the mycotoxins, the fungal toxins that might be transferred over to the hemp oil if it’s being processed.”
Photo by Edwin Remsberg, Remsberg Inc.
Eleven hemp cultivators joined forces with the University of Maryland in 2019 for a study that primarily evaluated hemp’s nitrogen requirements. The researchers leading the study, Drs. Andrew Ristvey and Nicole Fiorellino, have since concluded that hemp may not be an economically viable crop for the state's farmers.
Many of Maryland’s hemp farmers started growing floral varieties for CBD production, Ristvey said, and another potential pitfall is declining CBD prices—that is, if farmers can find anyone to purchase the biomass at all.
“All these farmers were looking at this as being a huge boom,” Ristvey said. “It was fantastic. Everyone was excited. October came around, everyone harvested their hemp, and the price dropped 25%. Farmers didn’t want to sell their crop because they wanted those prices back again. So, they held onto it. Some … were selling floral hemp or the flowers, which were [for] smoking, and that was relatively lucrative if you could find someone who was going to buy it from you.”
Although some processing companies have started up in the state, there is still a shortage of processors to turn biomass into finished CBD products, Ristvey said, which adds another complication to farmers’ plans.
“A lot of the processors dropped out and didn’t do what they promised,” he said. “There were a lot of bad stories associated with that, which was really unfortunate.”
At the end of the 2019 season, many farmers struggled to break even, let alone make a profit, Ristvey said.
“It was an unfortunate loss,” he said. “And with the prices continuing to fall past October 2019 and the amount of labor involved in production, … it wasn’t working out for farmers. … Certainly, I think there’s a lot of potential of this crop for so many different reasons, but we’ve got to find the processing, and we’ve got to make sure our farmers investing in this are actually making a profit.”
Proceed with Caution
In early 2020, Ristvey and his team started warning Maryland’s farmers that hemp may not be an economically viable crop in the state, at least under current market conditions.
“My colleague, Dr. Fiorellino, and I … were saying, ‘Look, if you’re going to get into this, you’ve got to be careful. You’ve got to be wise. Don’t get into it thinking you’re going to make a million dollars because there are a lot of externalities, [like] the upfront costs. Where are you going to sell it?’”
Some of the farmers who launched into the hemp market in 2019 dropped out in 2020, Ristvey said, and the University of Maryland is now refocusing its research on whether hemp fiber and grain may be more lucrative than CBD production for the state’s growers.
However, successful fiber production hinges on additional processors coming into the state—and many farmers are hesitant to grow hemp until processors are up and running.
“There’s some interest in processing coming in, but processing means biomass, and no farmer’s going to grow it unless there’s processing,” Ristvey said. “So, what comes first, the chicken or the egg? My colleague, Dr. Fiorellino, and [I] are trying to figure out how to utilize hemp in different ways as a tool to maybe do some nutrient management, pulling phosphorus out of the ground, … so we have biomass, and then processors might come in.”
In the meantime, Ristvey urges hemp farmers to do their research and have contracts in place to sell their crop before it’s in the ground.
“Have a signed agreement that whatever processor buys your stuff is going to pay the price they promised you, … so people aren’t caught off guard by growing all this hemp, processing it, and then having tons of it in storage, waiting to sell it,” he said. “That’s pretty much the bottom line to what Dr. Fiorellino and [I] are saying. … Be real careful stepping into this one because a lot of people have already gotten burned."
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