Dave Newman | Adobe Stock

Tennessee Lawmakers Table Bill Aimed at Regulating Delta-8 THC Products

House Bill 1927 was not heard during an April 27 House floor session and will not likely be revived unless the Senate Finance Committee calls a special session April 28 to discuss it.

April 28, 2022

Melissa Schiller

Legislation and regulation News Politics State by State: Tennessee

Tennessee lawmakers have tabled legislation aimed at regulating delta-8 THC products in the state.

House Bill 1927, sponsored by Rep. William Lamberth, R-Portland, would essentially ban the sale or possession of any hemp-derived products containing more than 0.3% THC on a dry-weight basis.

Delta-8 THC products are currently legal to sell and consume in Tennessee since the compound is produced from hemp, but lawmakers have expressed concerns about the lack of regulations governing it and other cannabinoids in the state.

H.B. 1927 was not heard during an April 27 House floor session and will not likely be revived unless the Senate Finance Committee calls a special session April 28 to discuss it, according to ABC News affiliate News Channel 9.

A Senate spokesperson told the news outlet that if the Senate Finance Committee does not take up the bill Thursday, the legislation will be dead for the year and delta-8 products will continue to be sold in the state as they are now.

New Jersey adult-use cannabis customers wait in line outside one of Acreage Holdings’ retail facilities ahead of a 10 a.m. opening on April 21.

Acreage Holdings | The Botanist

New Jersey Reveals Sales Figures for First Day of Adult-Use Cannabis

More than 12,400 customers spent roughly $150 per transaction when 12 state retail locations opened up for adult business last week.

April 28, 2022

Tony Lange

Finance Dispensary News State by State: New Jersey

Lines wrapped around buildings as New Jerseyans 21 and older gained access to 12 adult-use cannabis dispensaries when the state officially launched its licensed retail program on April 21.

The results?

The 12 retail locations sold nearly $1.9 million in adult-use cannabis and products to 12,438 customers, or roughly $150 per transaction, according to the New Jersey Cannabis Regulatory Commission (CRC).

CRC Executive Director Jeff Brown said in a statement April 27 that the 12 retail locations, which were already established medical cannabis dispensaries, did not report negative impacts to their medical cannabis supply amidst the adult-use rollout, the Asbury Park Press reported.

“We expected sales to be substantial, and the data shows that the market is effectively serving both adult-use consumers and patients,” Brown said. “We continue to monitor inventory and access for patients and are prepared to take enforcement action against any [retailer] that does not meet the requirements for patient access and supply.”

CRC officials had delayed the application and licensing process leading up to last week’s commercial sales launch—a full 534 days after New Jersey voters passed Question 1 in the November 2020 election. The commission’s rationale was partly to ensure state-licensed businesses were ready to provide an adequate supply of cannabis to both medical and adult-use customers.

CRC imposed limits on adult-use cannabis customers, who are able to purchase up to 1 ounce of dried flower; or up to 5 grams of concentrates, resins or oils; or 10 100-millgram packages of ingestible items in a single transaction.

As 13 of New Jersey’s 23 medical cannabis dispensaries were approved to begin serving adult-use customers April 21 (one of the 13 approved did not start selling to adult-use customers on opening day), medical cannabis patients stocked up the day before. In addition to anticipation of the next day’s adult-use rollout, April 20 is traditionally a big day for cannabis sales.

On April 20, New Jersey’s dispensaries sold roughly 5,400 ounces of medical cannabis to their patients, more than double the daily average from March, the Asbury Park Press reported. In the five days after, they sold another 7,500 ounces.

As New Jersey became the 14th state to launch commercial adult-use sales, executives from the seven companies operating the 13 approved dispensaries reinforced that patient care for those under the state’s medical program will remain a top priority.

“Our local teams look forward to building strong relationships with new consumers while deepening our ties with the medical community,” Curaleaf CEO Joe Bayern said in a press release. “Providing top-tier medical patient care remains our main priority and we have adopted considerable safeguards to make sure they can seamlessly access products to find relief.

demerzel21 | Adobe Stock

New York’s Adult-Use Cannabis Sales Expected to Launch This Fall, According to Top Official

Cannabis Control Board Chair Tremaine Wright provided details about the program last weekend at a public forum hosted by the Central Harlem Community Board.

April 27, 2022

Melissa Schiller

State by State: New York Dispensary News

Adult-use cannabis products are expected to hit dispensary shelves in New York this fall, according to a top state official.

Cannabis Control Board Chair Tremaine Wright provided details about the program April 23 at a public forum hosted by the Central Harlem Community Board, Syracuse.com reported.

In sharing insight into New York’s adult-use cannabis cultivator and retail conditional licensing programs that the state launched last month, Wright said conditional dispensary license holders will be eligible to receive loans with interest—as opposed to grants or interest-free loans—and that the funding will come from a $200 million cannabis social equity fund, which Gov. Kathy Hochul announced during her State of the State address in January.

“Loan funds will be provided to our conditional dispensary licensees,” Wright said Saturday, according to Syracuse.com. “I want you to think about this as a franchise model: these folks don’t get to pick where their location is, they will have a lot of assistance on buildout, and they will repay their loans.”

The Dormitory Authority of the State of New York (DASNY) released a Request for Information in February, Syracuse.com reported, to gauge interest among possible investment partners in a program that would finance all expenses related to the sourcing, leasing, planning, design, construction and equipping of conditional license holders’ dispensaries.

Then, in March, the Cannabis Control Board approved draft rules for conditional retail licensees and earmarked the first adult-use dispensary licenses for applicants with cannabis-related convictions.

Wright said Saturday that the Cannabis Control Board would like to eventually establish a grant program, as well as a zero-interest loan program, Syracuse.com reported. She also said that the Cannabis Control Board anticipates a maximum of 200 conditional dispensary licenses in the state.

On the cultivation side of the market, Hochul signed legislation in February to allow New York’s hemp businesses to grow cannabis for the state’s forthcoming adult-use market.

The Cannabis Control Board at its April 14 meeting unanimously approved the first 50 conditional licenses for hemp farmers to cultivate cannabis, and some of the new licensees could harvest their first crops as soon as September or October.

Alexey Stiop | Adobe Stock

Kentucky Governor Signs Legislation Authorizing Cannabis Research Center at University of Kentucky

Gov. Andy Bashear used his line-item veto authority to expand the center’s work and allow more flexibility in choosing its oversight board.

April 27, 2022

Melissa Schiller

Legislation and regulation Medical Cannabis News State by State: Kentucky

Kentucky Gov. Andy Bashear is doing what he can to support a cannabis industry in his state.

The Democratic governor signed legislation April 26 that authorizes a cannabis research center at the University of Kentucky, according to the Associated Press.

The measure, approved by the Legislature on the last day of this year’s legislative session earlier this month, was backed by key lawmakers who were opposed to legalizing medical cannabis in the state, the news outlet reported.

The research center, they argued, would allow more time to study the effectiveness of medical cannabis in treating certain ailments.

Bashear used his line-item veto authority to expand the center’s work and allow more flexibility in choosing its oversight board, AP reported.

In his line-item vetoes, Bashear cut language that would have allowed University of Kentucky officials to be considered for board membership alongside medical specialists, according to the news outlet. He also struck provisions that would have restricted the center’s work and its access to state funding.

“I am vetoing these parts because they limit the purpose of the center and dictate who the president of the University of Kentucky should consider appointing to the advisory board after giving the president of the university sole appointing power,” Beshear said in his veto message, according to AP.

The line-item vetoes will remain intact since Kentucky’s Republican-controlled Legislature will not reconvene for its next regular session until January 2023.

Separate legislation to legalize medical cannabis won House approval in March before ultimately dying in the Senate this year.

Bashear has since been pondering executive action on medical cannabis, and has instructed his legal team to review potential options to legalize cannabis for medical purposes through an executive order, AP reported.

The governor is also creating a medical cannabis advisory team to gather public input on the issue, according to the news outlet, and said last week that the team’s review will likely be completed in the next couple of months.

In the meantime, the legislation establishing the cannabis research center authorizes the University of Kentucky’s president to appoint members of an advisory board that will oversee the center’s work and finances, AP reported.

CascadeCreatives | Adobe Stock

Canopy Growth Announces Cost-Cutting Initiatives, Layoffs

The Canadian cannabis producer plans to cut 250 jobs as it further streamlines the organization in its quest to achieve profitability.

April 27, 2022

Melissa Schiller

Finance Canada News

Canadian cannabis producer Canopy Growth Corporation has announced cost-cutting initiatives and layoffs as it further streamlines the organization in its quest to achieve profitability.

The company announced in an April 26 press release that it will take several steps to reduce costs and drive efficiency, including:

Reducing the cost of goods sold (COGS) in Canopy’s Canadian cannabis business by lowering per-gram cultivation costs through increased cultivation-related efficiencies and facility improvements;
Implementing a flexible manufacturing platform inclusive of contract manufacturing for certain product formats;
Rightsizing indirect costs and generating efficiencies across the company’s supply chain and procurement;
Aligning selling, general and administrative costs (SG&A) with short-term business expectations by reducing third-party professional fees and office costs; and
Further streamlining the organization to drive process-related efficiencies.

The organizational changes will impact Canopy’s employees “as the company operates with a reduced headcount moving forward,” according to the press release.

The company plans to lay off roughly 250 workers, according to a Reuters report.

Canopy had 3,259 employees, including 2,362 full-time workers in Canada, as of March 2021, according to the news outlet.

“To realize profitability and power growth, we are taking critical actions to further evolve Canopy Growth into an agile organization with a clear focus on the areas where we have the greatest potential of success,” CEO David Klein said in a public statement. “These necessary changes are being implemented to ensure the size and scale of our operations reflect current market realities and will support the long-term sustainability of our company.”

Through these actions, Canopy’s management team expects to generate COGS savings of $30 million to $50 million and reduce SG&A expenses by $70 million to $100 million within the next 12 to 18 months, according to the press release.

“The savings and operational efficiencies generated through these additional steps reinforce our commitment to driving Canopy to profitability,” CFO Judy Hong said in a public statement. “Achieving profitability in our Canadian business is critical to the success of our company and will ensure we can continue investing in our key strategic growth areas including US THC to build significant long-term value."

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