Virginia became the 16th U.S. state to legalize the possession of small amounts of marijuana on Wednesday. Under the new law, adults ages 21 and over can possess an ounce or less of marijuana beginning on July 1 this year, rather than Jan. 1, 2024.
Gov. Ralph Northam, a Democrat, proposed moving up the date, arguing it would be a mistake to continue to penalize people for possessing a drug that would soon be legal. Lt. Gov. Justin Fairfax, also a Democrat, broke a 20-20 vote tie in Virginia’s Senate to pass the bill. No Republicans supported the measure.
Democratic House of Delegates Speaker Eileen Filler-Corn hailed the plan, according to NPR. “Today, with the Governor’s amendments, we will have made tremendous progress in ending the targeting of Black and brown Virginians through selective enforcement of marijuana prohibition by this summer,” she said in a statement.
Republicans voiced a number of objections to what they characterized as an unwieldy, nearly 300-page bill. Several criticized measures that would grant licensing preferences to people and groups who’ve been affected by the war on drugs and make it easier for workers in the industry to unionize. Senate Minority Leader Tommy Norment also questioned Northam’s motives.
“We have a governor who wants to contribute to the resurrection of his legacy,” Norment said, referring to the 2019 discovery of a racist photo in Northam’s 1984 medical school yearbook.
The accelerated timeline creates an unusual situation for Virginia cannabis consumers. While it will be legal to grow up to four marijuana plants beginning July 1, it could be several years before the state begins licensing recreational marijuana retailers. And unlike other states, the law won’t allow the commonwealth’s existing medical dispensaries to begin selling to all adults immediately.
Jenn Michelle Pedini, executive director of Virginia NORML, called legalization “an incredible victory” but said the group would continue to push to allow retail sales to begin sooner, according to NPR. “In the interest of public and consumer safety, Virginians 21 and older should be able to purchase retail cannabis products at the already operational dispensaries in 2021, not in 2024,” Pedini said in a statement. “Such a delay will only exacerbate the divide for equity applicants and embolden illicit activity.”
PAX Labs has launched the Era Life cannabis vaporizer. Created for the on-the-go consumer. According to the company, Era Life delivers an effortless experience without compromising on full flavor, vapor or consistency. The device brings together a high performing battery with PAX’s most compact device yet. Era Life works with any PAX Era pod, featuring curated, high-purity cannabis, produced by one of PAX’s carefully selected partners across the country. Era Life is available in the colors Onyx, Grass, Blaze and Indigo.
“We designed the Era Life to provide a simple, fun way to enjoy cannabis while still carrying the PAX promise of iconic design and enduring quality that our customers have come to know and trust,” said Colt Stander, head of product at PAX Labs, in a statement.
We designed the Era Life to provide a simple, fun way to enjoy cannabis while still carrying the PAX promise of iconic design and enduring quality.
“Cannabis is one of today’s fastest growing industries and we’re seeing new consumers enter the space rapidly. We’ve taken the best PAX has to offer, perfected the core functionality, and packaged it up in our most portable design yet—perfect for those who want the easiest possible experience but still care about durability, aesthetics, and safety in the products they use.”
PAX’s temperature control checks the temperature 125 times per second, ensuring a consistent temperature that delivers a full, never-burnt flavor throughout the life of the pod. Whether using lower temperature for more flavor or higher temperature for more vapor, Era Life creates smooth airflow through laser cut sidings and achieves better hits every time.
Era Life provides more than 150 puffs per charge and an easy-to-read LED low battery indicator ensures it’s never without juice. The product is UL-certified, meeting the leading safety standards
Priced at $35, Era Life is available for purchase by those 21 and over beginning on pax.com and at licensed retailers in legal U.S. states where PAX products are sold.
The Tobacco Authority of Thailand (TOAT) plans to start planting hemp for commercial purposes by August, reports The Bangkok Post.
The Council of State is currently reinterpreting the Tobacco Authority of Thailand Act that states TOAT can only produce tobacco leaves and other plants. The council decides if TOAT is legally eligible to produce hemp for commercial purposes, said TOAT governor Panuphol Rattanakanjanapatra. The decision is expected next week.
TOAT will focus on production of hemp in the preliminary stage, which can be used for medical and industrial purposes. TOAT aims to encourage 13,500 tobacco farmers to shift to hemp or cannabis farming to increase their income; the authority cut its tobacco leaf purchases to 13 million kg per year from 20 million kg per year.
State lawmakers in New York have agreed to legalize marijuana for recreational use in a late-night session. The move positions the state to join at least 14 other states already allowing residents to buy marijuana for recreational and not just medical use. New York’s past efforts to pass marijuana legalization have failed in recent years.
“My goal in carrying this legislation has always been to end the racially disparate enforcement of marijuana prohibition that has taken such a toll on communities of color across our state, and to use the economic windfall of legalization to help heal and repair those same communities,” Sen. Liz Krueger, Senate sponsor of the bill and chair of the Senate’s finance committee, said.
Democrats who now wield a veto-proof majority in the state Legislature that made passing the bill a priority this year, and Democratic Gov. Andrew Cuomo’s administration has estimated legalization could eventually bring the state about $350 million annually, according to a story in the Associated Press. Cuomo has pointed to growing acceptance of legalization in the Northeast, including in Massachusetts, Maine and most recently, New Jersey.
The legislation would allow recreational marijuana sales to adults over the age of 21, and set up a licensing process for the delivery of cannabis products to customers. Individual New Yorkers could grow up to three mature and three immature plants for personal consumption, and local governments could opt out of retail sales. The bill also sets aside revenues to cover the costs of everything from regulating marijuana, to substance abuse prevention, according to the AP.
The legislation would take effect immediately if passed, though sales wouldn’t start until New York sets up rules and a proposed cannabis board, according to the AP. Assembly Majority Leader Crystal Peoples-Stokes estimated Friday it could take 18 months to two years for sales to start.
New York would set a 9% sales tax on cannabis, plus an additional 4% tax split between the county and local government. It would also impose an additional tax based on the level of THC, the active ingredient in marijuana, ranging from 0.5 cents per milligram for flower to 3 cents per milligram for edibles.
New York would eliminate penalties for possession of less than three ounces of cannabis, and automatically expunge records of people with past convictions for marijuana-related offenses that would no longer be criminalized, according to the AP. That’s a step beyond a 2019 law that expunged many past convictions for marijuana possession and reduced the penalty for possessing small amounts.
The bill allows cities, towns and villages to opt out of allowing adult-use cannabis retail dispensaries or on-site consumption licenses by passing a local law by Dec. 31, 2021 or nine months after the effective date of the legislation. They cannot opt out of legalization.
Greenrose Acquisition Corp said it would buy four private companies to build a cannabis cultivation, distribution and retail network across seven U.S. states. Greenrose will buy Shango Holdings Inc, Futureworks LLC, Theraplant LLC and True Harvest LLC at an initial deal value of $210 million and a maximum earnout of $110 million, it said on Monday.
“The companies we are bringing to market fully align with Greenrose’s core objectives,” CEO Mickey Harley said. “We are targeting strategic assets in several key states that present opportunities for further consolidation as we seek to deepen our presence, particularly in the West.”
The acquisitions will give Greenrose, a special purpose acquisition company, legal-weed operations in seven states – Arizona, California, Colorado, Connecticut, Michigan, Nevada and Oregon. Greenrose said in a statement that the acquisitions will create “a vertically integrated and cash flow positive platform positioned for significant growth.”
Media reports say Greenrose is betting on the nation’s pot industry opening up soon. According to Sharik Khan with Reuters, dealmaking in the U.S. cannabis industry has surged in recent months on expectations that President Joe Biden’s administration will relax federal prohibition and make it easier for companies to operate similarly to rivals in the alcohol or tobacco industries.
The combined company will have nine dispensaries and over 300,000 square feet of cultivation space, Greenrose said. Greenrose said it expects to temporarily move from the Nasdaq to over-the-counter trading because companies growing or selling marijuana in the U.S. cannot list on major stock exchanges.
The company also plans to list on Canada’s NEO exchange after the deal closes, though there is still a chance it may not have to leave the Nasdaq, Harley told Reuters.
Cannabis vaping needed a full-service hardware manufacturer with products designed for CBD and THC oils.
By Timothy S. Donahue
When the cannabis industry began to take off in the U.S., vaping became a popular way to consume cannabinoids. However, many of the devices used to vape nicotine products did not work as well with the more viscous cannabinoid oils, especially THC and cannabidiol (CBD). There was a massive need for high quality vaping products that were specific to the fast-growing cannabis industry.
The Blinc Group started in 2017 to provide industry-specific vaping hardware to cannabis companies in Canada, the U.S. and Europe, according to co-founder and CEO Arnaud Dumas de Rauly. The company offers off-the-shelf products that can be fully customized and creates bespoke products. Dumas de Rauly says Blinc Group isn’t a cannabis company; it’s a technology company that serves the cannabis industry. Blinc Group provides every level of service from product design and customization to compliance testing, manufacturing, shipping and logistics.
When the legal cannabis industry began to grow and more states legalized marijuana in some form, it wanted to separate itself from the nicotine vaping industry. There was little crossover between products. To Dumas de Rauly, who honed his skills in nicotine vaping hardware, it was baffling that no one was applying the knowledge gained in nicotine vaping to cannabinoids. He says that the cannabis industry today is in the same situation the nicotine vaping industry was in two or three years ago.
“It’s becoming more accepted by regulators, by the general public. However, I can see the cannabis industry making some of the same mistakes that nicotine vaping had made … such as marketing to kids. That is going to bite our industry in the ass over the next couple of years, especially when all of this becomes federally legal,” said Dumas de Rauly. “We’re going to be really frowned upon if we are using cartoons on our packaging, if we don’t use proper standards.”
In regulatory matters, the cannabis industry was trying to reinvent the wheel. Instead of using manufacturing standards and regulation that had been developed in electronic nicotine-delivery systems (ENDS), the cannabis industry wanted to create its own standards. When the industry started developing its own way of analyzing product emissions, Dumas de Rauly said he had had enough.
“We already have these standards in nicotine vaping. We can already use that basis and then just add some components we’ll be testing for that are specific to the terpenes that are specific to more viscous extracts, that are specific to cannabinoids. We already have a base,” he explains. “Radioactive components, for example. It’s something that seems logical. It’s in the nicotine vaping standards. We’ve got to make sure that there are no radioactive materials in there. That’s very easy. You just translate over to cannabis. Why the heck won’t we do it? Testing for aldehydes, heavy metals is stuff we’ve already been doing in nicotine vaping for years.”
Be on the Blinc
The same couldn’t be said for the hardware. While standards and regulation could be carried over from the nicotine vaping industry, hardware needed to be specific to cannabis. Eric Newman, director of sales for Blinc Group, says the THC industry in the beginning used hardware designed for nicotine but soon shifted to specific cannabis vaping products. Newman said to get the cannabis industry comfortable developing its own hardware was an educational experience.
“Different clouds work well with different types of products. Customer experience is something that we take seriously. For us, it was coming from a product perspective and a knowledge and educational perspective as well. We needed to teach the end user that one device or one product is better than the other and why they should use one product over another.”
Newman says that more companies are moving toward open systems and that is expected to continue moving forward. He said that Blinc Group is dedicated to passing along its knowledge across all stakeholders and getting more people talking about best practices and standard operating procedures [SOPs]. “I think it’s education first then proving that what you’re educating actually works,” says Newman. “Then you open up the network to the masses.”
A good example of a hardware change to accommodate cannabis products is the move away from poly-type or plastic cartridges, according to Newman. He says Blinc Group now uses strictly glass cartridges.
“The whole market hasn’t switched to that model, and we’re pushing the market into, from a quality and safety perspective, going to all-glass type cartridges,” he says. “The next step to that process is actually happening already. We’re making full ceramic cartridges, making full glass cartridges. Except for the inner components that still have to have some metal and ceramic cores—but it’s happening in front of us where we’re seeing those type of products. Unfortunately, Blinc Group hasn’t found any that fit our model, but there’s certainly a revolution happening already, and I think Blinc Group’s ahead of the curve on it.”
Dumas de Rauly attributes much of the Blinc Group’s success to the emphasis it placed on safety and compliance throughout the EVALI crisis of 2019 and the Covid-19 pandemic. Even outside investors are starting to notice. In early January, Blinc Group successfully raised $1.5 million in bridge funding.
“Our team navigated 2019’s vape crisis helping set standards and advise regulators on testing and compliance, and last year, the company saw our best quarter yet amid the Covid-19 pandemic as the industry learned the benefits of safety and traceability,” said Dumas de Rauly. “We have shown that we are a resilient company that puts consumers first, which has made all the difference.”
In just over a year, Dumas de Rauly and his two partners managed to turn their company into a business generating approximately $1 million in revenue, adding an additional five team members in the process. By 2019, the company was grossing over $4 million in revenue and had 15 employees. In 2020, Blinc Group more than tripled its orders with more than 330 percent year-over-year growth.
The technology company seemed to have a knack for expanding in an increasingly difficult regulatory landscape. “I don’t have the exact numbers yet, but I know in terms of sales orders, we hit $14.2 million in 2020,” said Dumas de Rauly. “We have increased our team to 21 members, and we are really excited about our future in this unique and exciting industry.”
Blinc of an eye
The Blinc Group specializes in standards and quality. The company was created to help the cannabis industry comply with Canada’s robust regulatory requirements through the highest quality testing and supply chain standards. Canada legalized recreational marijuana in 2017.
Dumas de Rauly and his two Blinc Group co-founders, Givi Topchishvili and Alexander “Sasha” Aksenov, who also serves as chief innovation officer, had the collective experience needed to change nearly every aspect of how the cannabis industry was operating, from standards and other regulatory needs to lobbying, manufacturing and even sales. Topchishvili is an entrepreneur, investor and author with 30 years of market entry experience in Europe, Asia and the U.S. Aksenov has been in the cannabis vaping industry for more than seven years. He has created several ventures ranging from branding studios, record labels and media management companies to marketing agencies.
Dumas de Rauly is the scientist. He currently chairs the ISO (International) Standards Committee TC126/SC3 on Vaping Products and the CEN (European) Standards Committee TC437 on Vapor Products. He is also a member of the informal Marijuana Science and Policy Work Group managed by the Colorado Department of Revenue’s Marijuana Enforcement Division and Colorado Department of Public Health and Environment. Dumas de Rauly is also the former president of FIVAPE, the French vaping trade federation, and now serves as the organization’s secretary-general for international relations.
“As chairman of ISO standards on vaping products, I was getting a lot of friends that were coming up to me and asking me what I thought of their vaping products. And when I looked at them, I quickly saw that the products they were using were not adapted to the format of the [cannabis] extract, which is very, very viscous, oily, in some cases, really like molasses,” explains Dumas de Rauly. “I got concerned about the safety issues, started looking into it and … my partners and I decided to create the Blinc Group to bring the wealth of experience we had in nicotine vaping over to the cannabis industry.”
What sets Blinc Group apart from other cannabis industry hardware manufacturers is its involvement in every aspect of the process, from design to sales—what Dumas de Rauly calls “enterprise solutions” or consultative sales. The company doesn’t do sales on a traditional transactional basis. Every Blinc team member gets involved. “We can move along the entire vaping value chain. We have done product formulations for clients; we go through automation with filling and capping SOPs all the way down to point of sale and training,” says Dumas de Rauly. “We train our clients’ salespeople on specific hardware. We really insert ourselves throughout the entire value chain of vaping products in cannabis.”
The Blinc Group may be the only cannabis industry vaping hardware manufacturer that controls its entire supply chain. This is important because when a manufacturer orders from a factory in Shenzhen, China, where most vapor hardware is produced, that company has no clue where the raw material is sourced. The factory knows but not the client. Blinc Group sources the raw material suppliers. It then tells the subcontracted factory that those factories need to use the Blinc-sourced suppliers.
“We have an entire audit trail of every single material that comes into the device. That is one very important [differentiator] and one of our biggest differentiators. It also allows us more resiliency and redundancy within our supply chain because we’re not buying just from one factory,” Dumas de Rauly says. “We have four different manufacturers we work with—or assemblers, as we call them because they don’t really manufacture. They assemble products. And when one of them is not available, we can have the same product manufactured by another one because we own all of that supply chain.”
Blinc and you’ll miss it
There is one fundamental reason for controlling the supply chain: safety. Alongside innovation, quality and integrity, Dumas de Rauly says safety is part of Blinc Group’s foundation. It’s the company’s main focus in advocacy as well. For example, recently, the company worked with the U.S. state of Colorado to implement emissions testing in vapor products.
“[Colorado is] the first state in the U.S. that is requiring emissions testing, but that just goes to show that we’re even willing to put barriers in front of our business to make sure the consumer is safe. We have pioneered the use of medical-grade stainless steel in the products instead of using the regular H59 material to avoid any leaching of lead,” Dumas de Rauly explains. “We push our analysis and the control of the supply chain specifically for these reasons. Another example: In a typical 510-threaded cartridge, you have all of the materials that come into contact with the oil inside. Each one of those materials is sent off from each supplier—and we have four suppliers for each material—to undergo testing in an international lab. And given what we find, we adjust that material to make sure that individually, every single piece one of our cartridges will not leach, for example, heavy metals.”
Blinc Group has a large presence in Canada specifically because of the company’s compliance and regulatory stance, according to Dumas de Rauly. He expects the U.S. to adopt a similar type of regulatory framework soon. “People have already started understanding the need for regulations since the EVALI vaping crisis,” he said. “I’m very confident that this year, we’re going to be focusing a lot of our attention on the U.S. market and growing our U.S. presence.”
After Canada legalized recreational marijuana, the country passed the Cannabis Act. It includes some of the most stringent rules for cannabis on compliance and regulation in the world. Batteries, for example, need to be UL 8139 certified. In the U.S., it’s only a recommendation. The certification costs a little more, and the UL process could take anywhere from three-month to six-months, says Dumas de Rauly, but it’s necessary to protect the end user.
“We were the only ones attacking that market with UL-certified products in terms of batteries. We were the only one attacking that market with FDA, CFR21 or CPG21 certifications for our raw material. That was our edge, and that’s why we made such a big impact in Canada in 2020,” says Dumas de Rauly. “As regulation is becoming a little more stringent in the U.S. and after the EVALI scare, those consumers are starting to understand that they need to be paying attention to what’s in the vaping hardware.”
As EVALI soared in the U.S., many believed the vaping industry was dead and the disposable option was a fad. Dumas de Rauly says that, in reality, cannabis accounts for more than 30 percent of the market in some states. Some states with legal medical marijuana allow only the sale of THC vaporizers. This is because contents and strength can be easily regulated in a vaping product. The same is not true for cannabis flower products. He sees the industry growing even more rapidly in the U.S., especially if marijuana is legalized on a federal level.
“The road is going to be bumpy. There is going to be more regulation. We are pushing for more regulation because we want to make sure that our business is sustainable over the next five to 10 years,” he says. “We don’t want to see what happened to nicotine vaping happen to cannabis vaping. We’re really pushing for good stewardship for the industry. We are thought leaders in the space, and we want to be at the forefront of education and making sure that consumers get safe products.”
As the legal cannabis market grows in the U.S., Dumas de Rauly says that the Blinc Group will be growing and continuing to grab more market share as well. He says that the Blinc process is highly developed. It runs like a well-oiled machine. “We have a very strong team,” says Dumas de Rauly. “We have a strong presence. Our processes are well refined. I believe we’re going to be doing very, very good this year.”
The vapor industry may find a semblance of normalcy in Las Vegas this Spring. The Tobacco Plus Expo (TPE) tradeshow is scheduled to take place May 12-14. The TPE is traditionally been the first vapor and alternative products tradeshow of the year.
The industry only show includes numerous vaping nicotine hardware and e-liquid suppliers, as well as numerous members of the cannabis industry. Owned by Kretek International Inc., the TPE was originally to be held in January.
A press release states that the show will be following Covid-19 protocols to ensure the safety of both exhibitors and attendees. Masks will be mandatory on the show floor (meaning attendees cannot walk around and vape) and there will be temperature checks, sanitizing stations and social distancing.
Exhibitors will be permitted to vape at their booths, and there will be designated vaping areas for those attending the show. For more information, visit tobaccoplusexpo.com.
Ireland has the highest rate of people who use e-cigarettes in the European Union at 7 percent, while the EU average is 2 percent.
According to a new survey from Eurobarometer, Ireland also has the highest percentage of people in the EU who use cannabis products at 17 percent. Tim Hayes of the European Commission said the number of Irish people smoking cigarettes has continued to decline, according to breakingnews.ie.
“Luckily, the number of people smoking is steadily declining in Ireland, and now only one in five smoke tobacco on a daily basis,” he said. “Nevertheless, about one in ten smoke e-cigarettes, and surprisingly, almost one in five have smoked cannabis over the last year.”
The owner of the Kool cigarette brand sued the maker of Bloom cannabis e-cigarettes in Los Angeles federal court for allegedly infringing the brand’s trademark, according to Bloomberglaw.com.
Bloom’s logo uses interlocking “O” letters that confusingly resemble ITG Brands LLC’s famous Kool logo, according to ITG’s complaint. The suit was filed last week in the U.S. District Court for the Central District of California.
ITG says Capna Intellectual, which owns the Bloom brand, has applied for federal trademarks covering Bloom for e-cigarettes and oral vaporizers. ITG says it sent Capna a cease-and-desist letter in December.
The complaint says the Bloom marks are intended to trade off of Kool’s well-known branding.
The Blinc Group has successfully raised a $1.5 million in bridge funding until its next round of funding, Series A. The financing of was led by Equitas Partners Fund, WGD Capital, LP, and 7thirty Capital.
“The Blinc Group puts quality and safety at the forefront of its vape technology and since day one, that dedication to the highest standards has brought us the endorsement of institutional investors focused on the cannabis industry,” said Arnaud Dumas de Rauly, CEO and co-founder of the Blinc Group. “Our team navigated 2019’s vape crisis helping set standards and advise regulators on testing and compliance, and last year the company saw our best quarter yet amid the COVID-19 pandemic as the industry learned the benefits of safety and traceability. We have shown that we are a resilient company that puts consumers first, which has made all the difference.”
In 2020, Blinc Group, a regulatory-focused designer and provider of premium, customized and bespoke vaporizer technologies, more than tripled its orders with over 330 percent YOY growth, showcasing the technology company’s ability to scale and flourish in a difficult regulatory landscape, according to a press release.
Dumas de Rauly attributes much of the company’s success to the emphasis it placed on safety, compliance throughout the vape crisis of 2019 and the Coronavirus pandemic. The company has serves clients around the globe including Canadian heavyweights because of its unique ability to meet Health Canada’s rigorous standards.
“We began underwriting our initial investment in Blinc near the onset of the so-called vape crisis in 2019 and it became quickly apparent that the team’s experience within the vape technology space and its focus on quality, traceability and customer service would see them through and enable them to emerge as a market leader,” said Andi Goldman, Managing Member and co-founder of the Equitas Partners Fund. “While others turned more attention towards safer vaping products after the crisis, safety had always been a major pillar of Blinc’s products and part of its DNA, which attracted us as investors and gave us confidence that they would be able to substantially expand their business into Canada and elsewhere.”
The Blinc Group has also stayed ahead of the industry in part due to its strong ties in Shenzhen, China, and employing a manufacturing line dedicated to their products, which helped eliminate hiccups in the supply chain, according to the release. The Company’s China-based team is the backbone of Blinc’s “Powered By Blinc” offering, a certified product manufactured to the highest international standards of safety and compliance with complete quality control and full traceability of the product, process, and each sub-component across the entire supply chain.
“We have watched the Blinc team over the past few years as they have grown their business and dedicated their focus to safety and traceablity within the vape hardware sector. Blinc’s reputation for putting these important factors first has secured customer wins with some of the leading cannabis operators in North America”, said Michael Mitgang, managing director and Co- Founder of the WGD Opportunity Fund.
Proceeds from this financing will go towards expanding Blinc’s sales team, opening an office in Toronto, as well as expanding the team in Shenzhen, and the research and development of new innovative materials and vape technologies.
“The vape category is one of the primary revenue drivers in every market and satisfies the demands of some of the most committed cannabis consumers. Providing high-quality products is a must for any brand looking to win and retain loyal shoppers,” said 7thirty’s director of Research, Ben Richardson “The Blinc Group’s focus on vape safety and compliance, in addition to CEO Arnaud Dumas de Rauly’s leadership roles with International and European committees on vaping products, position the Company as a leading voice in this fast-growing category.”
In 2020, The Blinc Group worked closely with Colorado’s Science & Policy Committee on the adoption of new testing standards for the emissions from vape devices. This kind of work is just one example of the dedication that the Blinc Group team puts on aligning the cannabis industry with best practices for the safest products possible.
The Blinc Group also received additional funding from the Arcview Collective Fund and the Panther Opportunity Fund.