Category: Cannabis

22nd Century Restructures Panacea Investment

Photo: Mitch
22nd Century Group has signed a definitive agreement to restructure its strategic investment in Panacea Life Sciences in line with the ongoing development of 22nd Century’s strategic partnership network.
Under terms of the agreement, 22nd Century’s existing $7 million note in Panacea will be exchanged for ownership of Needle Rock Farms, located in a Colorado hemp/cannabis growing location and valued at $2.2 million. The company will also receive a new $4.3 million note and $500,000 in Panacea equity. The new note is backed by a mortgage on the Panacea Life Sciences operations building located in Golden, Colorado, appraised at $10.7 million. Panacea will retain certain farm assets under its own nameplate of PANA Organic Botanicals at Needle Rock.
Also under the agreement, $7 million in Panacea Life Sciences Series B Preferred Stock held by 22nd Century will be converted into 91 million shares of Exactus as part of a business combination transaction via share exchange with Panacea under which Panacea will become publicly traded. The transaction is expected to be immediately accretive to 22nd Century.
“This exchange is an exciting leap forward for 22nd Century as we advance our upstream value chain strategy to bring highly disruptive hemp and cannabis plant lines to market. It is also highly attractive to 22nd Century on a financial basis, creating immediate value, asset-backed future value and potential future liquidity from an existing investment,” said James A. Mish, CEO of 22nd Century Group, in a statement.
“Needle Rock Farms is a world-class farming operation in a prime growing location where we already have plants in the ground toward our goal of revenue recognition from our cannabis franchise in the second half of 2021. We will also retain access to Panacea’s extraction, purification and testing equipment located in Golden, Colorado, for the benefit of our customers.”
“Rapidly growing demand means that mass cultivation is quickly becoming the critical challenge in the cannabis industry. Most existing plant lines do not exhibit the stable genetics, predictable yield or specific composition of cannabinoids required to fully unlock the value of the cannabis industry,” said Mish. “22nd Century can provide the stable, predictable plant solutions required to achieve true commercial scale and do so in as little as two years versus 7 to 10 years through traditional processes.”
July 2, 2021
Hemp Industry Group Supports Legality of Delta-8
The Hemp Industries Association (HIA) announced support for the legal position that Delta-8 THC, along with all other hemp-derived cannabinoids, were federally legalized by the 2018 Farm Bill. The group cites a legal opinion drafted by attorneys Rod Kight and Philip Snow of Kight Law.
Credit: Elsa Olofsson
“It is clear that the 2018 Farm Bill, which removed hemp from the Controlled Substances Registry, directed that hemp be regulated as an agricultural product, and defined hemp to include its cannabinoids and all tetrahydrocannabinols from hemp, is the governing law for the hemp industry,” the HIA states in a release. “History has shown that natural cannabinoid consumption does not present public health and safety risks like those from alcohol and tobacco, but researchers have only begun to explore the full range of potential hemp-extracted compounds and their various properties. What is needed is a regulatory framework for their production that prioritizes consumer safety while being grounded in science.”
The HIA states that prohibition is a failed concept. It only exacerbates the threat to consumers created by unregulated markets, and is antithetical to the spirit of free enterprise. The HIA wants state lawmakers to eschew ineffective bans in favor of partnering with the hemp industry to craft hemp policy that safely opens markets, fosters innovation, spurs investment, and creates valuable jobs.
The HIA calls on industry leaders to build consumer confidence and expand the market for hemp cannabinoids by adopting the highest quality and potency testing standards for Delta-8 THC and similar minor cannabinoids, by marketing those products responsibly through use of transparent and detailed labeling, including potency data and warnings against consumption by minors.
“Businesses, farmers, and consumers all deserve regulations that support the exploration of the hemp plant’s full potential. This isn’t just about one minor cannabinoid —the list is over a hundred already and growing,” said Jody McGinness, HIA’s Executive Director “Fortunately, the industry has all the expertise legislators could need, and those manufacturing leaders and scientists are engaged and ready to help create productive policy solutions.”
The HIA’s Cannabinoids Council, a newly-formed member body focused on national priorities distinct to the cannabinoids sector of the hemp industry, has identified safe market expansion as a core focus for its early efforts. The stance on Delta-8 THC and other hemp-derived cannabinoids is in line with the HIA’s history of vigorously defending the legality of all hemp products, and supporting the growth of industries utilizing all parts of the hemp plant, according to the release.
The group, a trade association composed primarily of businesses and farms in the hemp industry, is currently engaged in two lawsuits in response to the DEA’s Interim Final Rule on the 2018 Farm Bill that was issued in August of 2020, creating a threat to extractors and manufacturers of hemp cannabinoids. This is the fourth time the association has gone to court to protect hemp since forming in 1994.
July 1, 2021
Helius Appoints Perry to the Cannabis Company’s Board
New Zealand’s largest licensed medicinal cannabis company, Helius Therapeutics, has appointed Joanna Perry to its Board of Directors. The appointment comes as the New Zealand-based company prepares to enter both the domestic and international markets. Perry will serve as chairperson on the board’s Audit Finance Committee.
Joanna Perry, Credit: Helius
“Joanna’s significant governance experience, combined with her well-known inquisitive probing, will be a real asset. Her nature to challenge and always seek continuous improvement strongly aligns with Helius’ internal cultural value of staying curious,” says Carmen Doran, CEO of Helius Therapeutics.
Having raised $48m in capital since 2018, Helius has invested significantly in both its facility and talent, according to a press release. Perry’s arrival to the board of Helius is timely, with its state-of-the-art, integrated medicines manufacturing facility in Auckland’s East Tamaki set to begin production.
“Our world-class executive leadership team is complete, and our board is equally excited to bring high quality, highly efficacious medicinal cannabis products to market with an exciting R&D pipeline to follow,” says Doran.
Perry says it is a once-in-a-lifetime opportunity to be involved with such an innovative biotechnology company, leading the infancy of New Zealand’s medicinal cannabis sector. “I’m delighted to add my governance and financial experience to the vast pharmaceutical and cannabinoid medicine experience of the Helius team. It’s an incredible journey not only for Helius, but for the country,” says Perry.
June 30, 2021
Georgia Cops Cracking Down on Delta-8 Sales
A central Georgia vape shop is the latest business to be raided by authorities in relation to the sale of delta-8 THC products . Two store employees were charged as part of the crackdown. The proliferation of delta-8-THC products being sold outside dispensaries has prompted a patchwork of enforcement reactions and crackdowns in states with varied policies on cannabis, from South Carolina to Oregon.
Credit: Fotokitas
The Newnan Times-Herald reports that Coweta County authorities were tipped off that the store called Tobacco & Vapor was illegally selling THC products. An undercover officer bought gummies from the store that failed THC testing. A search warrant was later executed and authorities seized 554 suspected delta-8-THC edibles and 616 suspected delta-8-THC products other than edibles.
Two of the store’s employees were charged with drug crimes including narcotics possession. Delta-8-THC is a molecule that exists rarely in the cannabis plant but can be easily synthesized from cannabinoids extracted from legal hemp, prompting confusion over its legality. Delta-8 is not specifically banned in Georgia. Delta-8 will also provide a positive result in testing as current tests used by law enforcement cannot differentiate between delta-8-THC and delta-9-THC (which is illegal federally and in Georgia).
While hemp itself is federally legal (at or less than 0.3 percent THC), each state has different laws and restrictions regarding byproducts derived from hemp, including Delta-8. No products containing Delta-8 have been tested by the U.S. Food and Drug Administration or are FDA-approved. The 2018 Farm Bill, which legalized hemp and its byproducts, explicitly excluded delta-9-THC, also known as simply THC, the compound that produces the typical marijuana “high.” But because of the bill’s loophole, delta-8 seemingly remains legal.
Twelve states have completely banned delta-8 sales specifically. Those states include Alaska, Arkansas, Arizona, Colorado, Delaware, Kentucky, Idaho, Iowa, Mississippi, Montana, Rhode Island and Utah. New York has a proposed rule to ban Delta-8 products, which is under a comment period until July 19. California, Oregon, Vermont and Washington are in the process of enacting regulations for delta-8 products. Several other states are also considering bans. Florida’s language concerning delta-8, however, allows for the legal sale of delta-8 in that state.
In order to prosecute a business or individual for selling or possessing delta-8 products, the government has to prove that you knowingly possessed or distributed a schedule I controlled substance, specifically THC or marijuana. Georgia officials have been cracking down on delta-8 sales over the last year. In May, local law enforcement in the metro-Atlanta area executed search warrants at several stores and a warehouse belonging to a small business owner who operates a chain of vape shops. Police seized several products that allegedly contain delta-8.
June 28, 2021
Connecticut Governor Signs Legal Marijuana Bill
The governor of Connecticut on Tuesday signed a bill to legalize marijuana—making it the 19th state to enact the reform. Last week, Gov. Ned Lamont threatened a veto over language on equity licensing that had been added, prompting legislators to revise it.
Credit: Spyrakot
“For decades, the war on cannabis caused injustices and created disparities while doing little to protect public health and safety,” Lamont said in a press release. “The law that I signed today begins to right some of those wrongs by creating a comprehensive framework for a regulated market that prioritizes public health, public safety, criminal justice and equity. It will help eliminate the dangerous, unregulated market and support a new and equitable sector of our economy that will create jobs.”
Connecticut is the fourth state to legalize cannabis for adult use this year alone, following New York, Virginia and New Mexico. Possession of cannabis among adults age 21 and over will be legal in Connecticut beginning July 1, 2021. Adults cannot have more than 1.5 ounces of cannabis on their person, and no more than 5 ounces in their homes or locked in their car truck or glove box.
Retail sales of cannabis aim to begin in Connecticut by the end of 2022. The sale, manufacture, and cultivation of cannabis (aside from home grow) requires a license from the state. Products that contain delta-8-THC, delta-9-THC, or delta-10-THC are considered cannabis and may only be sold by licensed retailers. Individuals who are not licensed by the state may gift cannabis to others but may not sell it. Individuals may not gift cannabis to another individual who has “paid” or “donated” for another product.
Certain cannabis-related convictions that occurred between January 1, 2000 and October 1, 2015 will be automatically erased. Those seeking to erase cannabis-related convictions outside of that period will require petitioning. The law enacts a tax rate structure on the retail sale of cannabis that includes a new source of revenue for municipalities.
This includes (1) a 3% municipal sales tax, which will be directed to the town or city where the retail sale occurred; (2) the 6.35% state sales tax; and (3) a tax based on the THC content of the product, which will be 2.75 cents per milligram of THC for cannabis edibles; 0.625 cents per milligram of THC for cannabis flower; and 0.9 cents per milligram of THC for all other product types. This means that Connecticut generally will have about a 4% lower tax rate than New York and about the same as Massachusetts.
“The states surrounding us already, or soon will, have legal adult-use markets. By allowing adults to possess cannabis, regulating its sale and content, training police officers in the latest techniques of detecting and preventing impaired driving, and expunging the criminal records of people with certain cannabis crimes, we’re not only effectively modernizing our laws and addressing inequities, we’re keeping Connecticut economically competitive,” Lamont said. “This legislation directs significant new funding to prevention and recovery services, which will be used to help prevent cannabis use by minors and to promote safe, healthy use of cannabis by those of legal age.”
Cannabis use is prohibited in state parks, state beaches, and on state waters.
June 23, 2021
22nd Century Set to Maximize Cannabis Opportunities

Photo: felix brönnimann
22nd Century Group has announced new initiatives to strengthen and maximize revenue opportunities in its hemp/cannabis franchise. Included in these developments are strategic partnerships with two plant breeders in the northern and southern hemispheres, providing the company with year-round growing capabilities, close partnership activities with Aurora Cannabis, and the establishment of a newly created Canadian subsidiary.
“The addition of breeders who specialize in alkaloid-based plant cultivation to our network of strategic partnerships provides us with the competitive edge to commercialize our second-generation IP and technologies,” said James A. Mish, CEO of 22nd Century Group, in a statement. “As cannabis regulation evolves, we believe that companies able to control the traits and consistency of the plants will command a premium price and margin in the marketplace. 22nd Century is well positioned to capitalize on the tremendous potential in the global legal cannabis space by creating hemp/cannabis plants that have stable, specific cannabinoid levels at commercial scale for various end-use markets.
“As a matter of preparedness, earlier we announced a $40 million registered direct offering through Cowen and Company,” Mish continued. “Cowen is well-known as a pioneer in the cannabis institutional markets, and with this registered direct placement, 22nd Century is now squarely positioned in the mainstream of the cannabis equity space. Proceeds from this offering will be used as needed for future strategic growth opportunities as our hemp/cannabis market activity continues to increase. With the Special Equities Group as our financial advisor on this transaction to the company, we now have ample financial flexibility for this franchise as we advance our revenue-generating initiatives later this year.”
Incorporated in April 2021, 22nd Century’s Canadian subsidiary will serve as a base for the company’s expanded activities in tobacco, hemp/cannabis and its yet-to-be announced third franchise.
22nd Century Canada will also serve as a hub for expanded reduced nicotine tobacco activities in Canada, to include a possible future launch of VLN and the potential expansion of its reduced nicotine tobacco-growing programs.
June 8, 2021
New York Latest State to Ban Delta-8 Products
New York state has joined a growing number of U.S. states that have expressly prohibited delta-8 THC and other THC isomers derived from hemp. However, lawmakers in the Empire State did make several small concessions to hemp producers, including a modification to limits on smokable hemp and removing a requirement that all cannabinoids over 0.05 percent THC be listed on product labels.
The delta-8 THC ban is part of the state’s revised regulations for hemp products. The new rules state that hemp cannabinoid products may “not contain synthetic cannabinoids, or cannabinoids created through isomerization, including [delta] 8-tetrahydrocannabinol and [delta] 10-tetrahydrocannabinol.”
New York has also placed a ban on hemp prerolls, cigarettes and any “flower product labeled or advertised for the purpose of smoking.” But the state health department says it will allow the sale of hemp flower, so long as the flower is not branded as an item for smoking, according to Hemp Industry Daily.
Hemp vapes are legal for customers over 21 and must carry “a warning stating that smoking or vaporizing is hazardous to your health.”
At least six states have considered or are currently updating their laws to specifically govern delta-8 THC, joining at least 11 that already have laws on the books addressing the minor cannabinoid, which can produce psychoactive effects in some people, although they are considered to be less potent than the delta 9-THC common in marijuana.
The labeling requirement remains in place for CBD and THC amounts in a product, just not for all cannabinoids in a product. The New York updates come six weeks after Gov. Andrew Cuomo signed a law making a first-in-the-nation attempt to regulate hemp operators working with flower and cannabinoid products the same way the state oversees marijuana operators, designating a new category for “cannabinoid hemp” that will be governed by a new Office of Cannabis Management.
New York’s health department told hemp and marijuana operators that it won’t require track-and-trace systems for hemp products, as some marijuana operators have requested. “Unlike medical marijuana and adult–use cannabis markets, cannabinoid hemp products can enter interstate commerce and it would be impractical to impose a state level seed–to–sale requirement on an industry not limited to intrastate,” regulators wrote. The state legalized recreational marijuana earlier this year.
Michelle Bodian, a cannabis attorney with the Vicente Sederberg firm in New York City, said that the state has the “potential to set a model for the rest of the country in regulating consumable hemp products.” But she added that the U.S. Food and Drug Administration needs to implement a single set of health-and-safety regulations. “Until there are national standards from FDA concerning cannabinoid hemp products, it continues to be very difficult and impractical for businesses to comply with these very specific state testing and labeling requirements, let alone all the other unique requirements.”
May 21, 2021
Alabama Medical Marijuana Bill Faces Filibuster
Legislation to authorize medical marijuana in Alabama stalled Tuesday in the state House of Representatives after Republican opponents used a filibuster to at least temporarily delay a vote.
Credit: Sharon McCutcheon
Representatives adjourned shortly before midnight without a vote after nearly 10 hours of debate on the Senate-passed bill. The bill is expected to return to the House floor on Thursday, according to the AP.
The lengthy debate brought impassioned discussion that included lawmakers expressing fervent opposition or how they changed their minds on the issue after the illnesses of family members
The bill would allow people with a qualifying medical condition to purchase marijuana after getting a recommendation from a doctor. More than a dozen conditions, including cancer, a terminal illness, depression, epilepsy, panic disorder and chronic pain would allow a person to qualify. The bill would allow marijuana in forms such as pills, skin patches and creams but not in smoking or vaping products.
May 6, 2021
U.S. House Passes Cannabis Banking Bill

Photo: Feelgoodsk | Dreamstime
The U.S. House of Representatives on April 19 passed legislation that would allow banks to serve cannabis companies in states where it is legal, reports Reuters.
The bill clarifies that proceeds from legitimate cannabis businesses would not be considered illegal and directs federal regulators to craft rules for how they would supervise such banking activity.
Banks have generally been unwilling to do business with companies that sell marijuana or related products, fearing they could run afoul of federal laws.
That has left companies in the marijuana industry with few options, including relying on just a handful of small financial institutions or doing business in cash.
Thirty-six states have legalized medical cannabis while 17 states now allow adult use, according to the National Conference of State Legislatures.
Lawmakers voted 321-101 to approve the bill and send it to the Senate.
April 21, 2021
Cannabis Consumers Have 6 Archetypes, Says Euromonitor
The legal cannabis is expected to increase more than 200 percent by 2025. According to research by Euromonitor International, global market research company, the market will rise from $30 billion in 2020 to over $90 billion in 2025 as consumers increase their usage in diverse parts of their lives, according to Euromonitor International.
Shane MacGuill
In a recent white paper, Breaking Stereotypes: Getting to Know the Cannabis Consumer, Euromonitor explores six adult cannabis consumer archetypes making up the emerging legal cannabis consumer base in 2021. “Cannabis user profiling is also relevant for cannabis-adjacent FMCG industries as more global consumers have access to cannabinoid-infused products,” says Shane MacGuill, senior industry manager for Nicotine and Cannabis at Euromonitor. “Cannabinoid consumers report drinking less alcohol, smoking less and taking fewer consumer health products across markets.”
The report, lists the six archetypes as:

The Seasoned Consumer: Long time regular consumers who use cannabis to enhance their well-being. 24% of these consumers suffer from high or extreme stress while 64% are strongly in favour of recreational legalization.

The Casual Social: Younger, newer consumers leveraging cannabinoid products as part of their wider lifestyles. 75% of them take vitamins or health supplements at least monthly, while 61% are strongly in favor of recreational legalization.

The Dabbler: Occasional cannabis users, familiar and comfortable with the substance but unlikely to see it as a key part of their lifestyle. 68% are in favor of its legalization for medical use while 45% believe legal cannabis should be at least as widely available as tobacco and alcohol.

The Canna-curious: A broad consumer group with an interest in adult-use cannabis consumption if legalized in their countries but with limited knowledge about cannabinoid products. 56% are in favor of legalization for medical use, while only 43% support adult-use liberalization.

The Unsparked: Consumers who are outwardly negative towards cannabis use but express enough uncertainty that many could be persuaded to engage further. 18% of these consumers believe that cannabis is unsafe, while 8% see cannabis as something that enhances a user’s lifestyle (8%).

The Naysayer: Strongly against adult use – only 8% in favor of legalization – they are not an immediate target for producers and brand owners. 51% state that they either have no or low levels of daily stress – the least stressed of all profiles.
Seasoned cannabis consumers are established, long-standing and often traditionalist cannabis users “who will form the backbone of the legal industry” as it evolves, according to MacGuill, who quthored the report, adding that companies need to understand and address the priorities of this group without alienating newer consumers whose product and brand priorities are often divergent
“As legalization expands and the normalization of cannabinoid use continues, organizations need to understand the motivations of the modern cannabis consumer and look beyond typical stereotypes,” MacGuill states. “The legal cannabis industry must mirror the views and values of its consumers, given its history and the nature of its often counter-cultural evolution. Industry players can only achieve this with a nuanced segmentation and holistic understanding of participants in the sector.”
April 20, 2021