Cannabis Regulatory Agency

LANSING, Mich., Sept. 15, 2022 – PRESS RELEASE – Michigan Gov. Gretchen Whitmer announced the appointment of Brian Hanna as acting executive director of the Cannabis Regulatory Agency (CRA). Effective Sept. 19, Hanna will join the CRA, bringing extensive experience to fill this vital role within the Whitmer-Gilchrist Administration.  

“I am thrilled to welcome Brian Hanna as the new acting executive director of the Cannabis Regulatory Agency, where he will continue putting Michiganders first, growing our economy and creating jobs,” Whitmer said. “The state of Michigan and the CRA are at the forefront of the nation’s hemp and marijuana industry, setting the standard for stimulating business growth and preserving secure consumer access to cannabis. A win for the industry is a win for Michiganders because its tax revenue allows us to invest back into our schools, roads, and other essential services that make a real difference in our communities. I am confident Brian will serve as an excellent leader as the CRA continues establishing Michigan as the national model for cannabis regulations.”

Hanna’s previous service in the Marijuana Regulatory Agency, now CRA, under former Executive Director Andrew Brisbo will ensure he continues the mission and ongoing work of the agency. Hanna spent five years with the CRA as the manager of field operations, inspections and investigations. He has a law enforcement and military background, having previously worked as a criminal intelligence manager and analyst with MSP and as a deputy sheriff for Kalamazoo County.

He also served as a captain in the United States Army Reserve with a combat deployment to Afghanistan from 2010-2011. Hanna holds a Bachelor of Arts in Criminal Justice from Western Michigan University and an associate degree in law enforcement from Kalamazoo Valley Community College.  

“I am excited to return to the Cannabis Regulatory Agency and am grateful for this opportunity,” Hanna said. “I look forward to reconnecting with stakeholders to ensure we have a clear and concise regulatory framework for oversight of this industry to promote continued growth in Michigan. I also look forward to working with the administration and our legislative partners wherever possible to continue providing safe products to consumers. I’m honored that Gov. Whitmer has appointed me to lead this important agency and look forward to getting to work.” 

Michigan state officials will conduct a nationwide search to select a permanent executive director for the CRA. 

A legal battle over a cannabis cultivation facility worth more than $30 million in Shelton, Wash., alleges an acquiring company’s former directors stole the property and business in a breach of fiduciary duties, conversion and unjust enrichment.

The lawsuit was filed Sept. 13 by boutique litigation law firm Dovel & Luner in the Superior Court of Mason County on behalf of Agrios Global and its wholly owned subsidiary, Timberland Bay Properties.

Founded in 2017 in Vancouver, British Columbia, Agrios leases and manages properties and equipment to eco-sustainable agronomy and provides services to support all aspects of aeroponic cultivation in the cannabis sector. Timberland is its limited liability subsidiary in Washington.

The lawsuit names former Agrios directors and Timberland officers James Foster and Christopher Kennedy as defendants in the case, which stems from Agrios’ 2018 acquisition of the Shelton facility for roughly $20 million. The title to the facility was held in Timberland’s name.

Foster was the board chairman at Agrios, while Kennedy was the CEO.

Foster previously owned the Shelton facility before Agrios acquired it in 2018. That transaction allowed Foster to invest in Agrios without providing cash in exchange for approximately 26% of the shares in the publicly traded company.

Under the direction of Foster and Kennedy, Agrios invested an additional $6 million in the facility to increase capacity and install new hydroponic equipment. That expansion and renovation was completed by 2020, and the facility had been leased out and was generating “millions of dollars in annual net profits” for Agrios and Timberland, according to the lawsuit.

At that point, the facility was worth in excess of $30 million, according to the complaint, and Agrios’ only debt was to a bank with an outstanding balance of less than $3 million. But in September 2020, Foster and Kennedy arranged for JRV Finance & Lease LLC, which was controlled by Foster, to replace the bank as a lender on the bank loan, according to the lawsuit.

Soon after, JRV—now doing business as Flora Real Estate LLC—called the loan despite Agrios not having $3 million in cash immediately on hand to pay the entire balance, according to the lawsuit.

“Under the terms of the loan, JRV’s remedy would be to commence foreclosure proceedings, which would give Agrios and Timberland at least four months to arrange debt or equity financing to pay off the $3 million loan,” the lawsuit states. “As directors and officers of Agrios and Timberland, Foster and Kennedy had fiduciary duties to arrange that financing. And because the Shelton facility was worth in excess of $30 million and was generating millions of dollars in net profits, arranging for $3 million in capital would have been relatively easy to accomplish.”

Instead of arranging for that financing, Foster and Kennedy had Timberland sign a deed in lieu of foreclosure, according to the lawsuit. That deed transferred the entire Shelton facility to JRV, allowing Foster’s company “to reap the benefits of the business that Agrios had created by investing millions of dollars and years of effort,” according to the lawsuit.

“Directors and officers are supposed to act for the interests of the company they serve—not in their own self-interest,” Alexander Erwig, of Dovel & Luner, who submitted the complaint to the court, said in a press release provided to Cannabis Business Times. “Plaintiffs brought this case to reclaim their business and stop Foster and Kennedy from profiting from their breaches of duty.

The Vermont Cannabis Control Board (CCB) issued its first round of cannabis retail licenses Sept. 14 to businesses in Rutland, Middlebury and Burlington. 

The CCB awarded the retail licenses to Mountain Girl Cannabis in Rutland and FLORA Cannabis in Middlebury and granted one integrated license to CeresMED medical cannabis dispensary in Burlington. Mountain Girl Cannabis was the first social equity applicant to receive a retail license.

The integrated license allows CeresMED to engage in “all activities allowed under all current adult-use licenses,” including cultivation, manufacturing, testing and distribution.

RELATED: Vermont Licenses 7 More Adult-Use Cannabis Businesses

In April, CeresMED stated if it was awarded a license, it would plan to open an adult-use storefront by October—right on the mark for when adult-use sales are expected to launch Oct. 1.

While the CCB released the retail licenses two weeks ahead of schedule, it noted that it recognizes not everyone may be able to engage in the market this year due to it missing its initial May 1 deadline to begin issuing licenses.

“While these approvals mark a turning point in the road to a more sensible adult-use marketplace, it is important to note that this is not the end of the journey,” the CCB stated.

Cookies has partnered with New York-based Cirona Labs to reformulate its on-the-shelf cannabis products.

Cirona Labs, with its focus on emulsion chemistry and food science, will work with Cookies to develop new products and expand the company’s footprint in hemp-derived cannabinoids, according to a release.

“Cirona Labs has demonstrated best-in-class technology for infusing cannabinoids into all types of products,” said Parker Berling, president of Cookies. “We’ve been impressed by its scientific approach to innovation in our industry and we know our customers will be impressed by the taste and efficacy of its creations.”

Cookies plans to launch a range of infused products later this fall, including beverages, capsules, tinctures and topicals. The products will each contain a variety of cannabinoids and terpenes supported by Cirona’s research and development of emulsions and powders.

“Cookies built a loyal fanbase because of its high-quality flower product. This same fanbase is just as discerning when it comes to new methods of consumption that utilize the latest infusion technology,” said Hunter Friedland, founder and CEO of Cirona Labs. “This project has been an exciting challenge for our team, as we were tasked with developing custom emulsions for several different formats. This partnership validates the need for precise water-soluble ingredients backed by science.”