Tag: marijuana

Organigram Closes 2nd Tranche of BAT Investment

Photo: krishnadasekm
Organigram Holdings closed the second of three tranches of a CAD124.56 million ($92.2 million) equity investment by British American Tobacco’s BT DE Investments subsidiary.
Pursuant to the second tranche closing, the investor acquired 4,429,740 common shares and 8,463,435 Class A preferred shares at a price of CAD3.22 per share for gross proceeds of $30.82 million. The remaining 12,893,175 shares subscribed for are due to be issued at the per share price in the final tranche on or around Feb. 28, 2025.
“With two tranches of the Jupiter pool now funded, combined with our strong balance sheet and targeted investment strategy, Organigram is well on its way to executing on its ambitious growth plan focusing on international, technological and product expansion,” said Organigram CEP Paolo De Luca in a statement.
“Our inaugural Jupiter investment in Open Book Extracts marked our second investment in the U.S. market, and our first international investment in Sanity Group represents a significant first step in our ambitions to grow our footprint in the fast-growing German market,” he added.
September 5, 2024
Research Grant to Study Biopesticides for Hemp

Credit: Mex Chriss
The economic importance of hemp is increasing globally and in the United States. However, because federal laws restricted hemp growth and research until recently, commercial hemp production lacks best practices for cultivation, including effective and safe pest and disease management.
The Foundation for Food & Agriculture Research’s (FFAR) Hemp Research Consortium is providing Cornell University with a $210,000 grant to identify biologically derived crop protection products—biopesticides—to control hemp’s major pest and disease threats.
BioWorks and the University of Kentucky (UK) are participating in the research, and BioWorks is providing matching funds for a total investment of $420,000.
“Research on hemp production is still in its infancy, and pests and disease can be an overwhelming challenge for many growers,” said Kathy Munkvold, FFAR scientific program director. “This project is providing actionable knowledge that will help the hemp production industry thrive.”
Companies developing crop protection products currently focus on fruit, vegetable, and commodity crops such as corn and soy, rather than newer crops like hemp. This project seeks to fill that gap through a partnership between academic institutions and industry, according to a press release.
Researchers at Cornell, BioWorks and UK, led by Christine Smart, director of Cornell AgriTech, are determining the effectiveness of biopesticides against several hemp diseases and investigating the tolerance of hemp crops to these products.
They are also studying the compatibility of biopesticides with other crop protection products used in hemp production. In addition, the team is examining how long the microbes in bioproducts remain on the plant, which is important for product application timing and post-harvest hemp microbial testing required for some hemp products.
The research will broaden the understanding of how to effectively manage the pests and diseases that undermine hemp production and inform recommendations for controlling those threats. Ultimately, growers will save money through the proper use of inputs and higher crop yield, and consumers will gain more comprehensive access to safe, high-quality hemp products, according to a press release.
“Hemp growers are looking for information on pest and disease control, and I am enthusiastic that this project will enable improved management strategies,” said Smart.
To learn more about this grant, visit the Evaluating Biopesticides for the Treatment of Hemp page on FFAR’s website.
September 4, 2024
Texas Police ‘Traumatize’ Store Staff in Hemp Raids

Credit: Ongala
Police in Allen, Texas, secured up evidence and marched out business owners in handcuffs for selling what attorneys for the vape shops say are legal products. In a coordinated raid, police invaded nine locations simultaneously.
Allen police chief Steve Dye told media that the stores involved, more than a third of the vape shops within Allen city limits, were all caught marketing and selling products with illegal levels of THC. The THC compound can be derived from marijuana and hemp (both members of the cannabis family).
“We did multiple rounds of undercover operations, including sending minors in, and many of them were able to buy the THC underage. And then we started testing those products and we found that the vast majority of those products were well over the .3 percent,” he said.
Early Wednesday morning, an attorney representing some of the vape shops in a federal lawsuit against the DEA called the raids “legally questionable.”
“These local, family-owned businesses are operating legally. The Allen, Texas Police Department and the DEA overstepped their authority by destroying products, taking point-of-sale systems and records, and confiscating personal computers belonging to employees,” said David Sergi of San Marcos-based Sergi & Associates.
Pictures provided by the U.S. Drug Enforcement Administration, which assisted with the raid, show a bag of chips labeled “Doweedos”, cookies labeled “Trips Ahoy” and candy labeled “Medicated Skittles.”
“We’ve seen percentages of THC in the high teens, upwards of 60, 65 percent. That is almost toxic levels of THC when you think about it. And is that what somebody is expecting to get?” asked DEA Special Agent In Charge Eduardo Chavez.
The raids left owners and employees “traumatized,” according to Sergi, who also represents the Allen Hemp Coalition as well as eight of the nine shop owners. “We think it’s absolutely horrendous,” he told a media oulet.
Sergi said that when police sent a letter to businesses in May raising concerns, the stores voluntarily removed the products mentioned from their shelves. This time, he said, police chose a different approach.
“Rather than getting guidance and partnership from the Allen Police Department, we have gotten arrested, we have had clients whose stores have been destroyed, we have employees whose computers have been taken,” he said.
Sergi said that while there’s no law against selling hemp products to minors, many shops voluntarily choose not to.
When asked about the attorney’s comments, a spokesperson for Allen police said the department tried working with store owners, offering to provide advice about which products might pose a problem. Not all, he said, took them up on it.
August 31, 2024
UKVIA Warns Against Illegal ‘Spice’ Vape Devices

Photo: fedorovacz
The U.K. Vaping Industry Association (UKVIA) has cautioned consumers about an increase in illegal “Spice vapes” and called for urgent government action to protect young people.
The warning follows reports of people misusing “open” vape devices—which allow consumers to add e-liquid—to deliver synthetic cannabinoids such as Spice and the psychoactive chemical THC, which is found in cannabis. Spice is a nickname for a substance containing one or more synthetic cannabinoids.
The trade UKVIA the regulated nicotine vape industry is in no way connected with the trend of using open vape devices as a delivery mechanism for illegal drugs.
“Consumers can feel confident that when they buy regulated products from any reputable vape supplier, that they will be getting nicotine vapes which are designed to help them transition from cigarettes,” said UKVIA Director General John Dunne in a statement.
“I am worried, however, that there are vape devices available from unofficial sources which may contain illegal drugs and that those who buy them may have no idea what is contained in these products.”
According to Office for Health Improvement & Disparities statistics, of the 12,418 young people under 18 in contact with alcohol and drug services between April 2022 and March 2023, cannabis was the most common substance (87 percent) for which young people sought treatment. While 10,837 young people reported having a problem with cannabis only 1,737 said they had a problem with nicotine.
“We need the government to step on now with a nationwide education campaign in traditional and social media to highlight the dangers of obtaining vape devices from unofficial sources and explaining the differences between legal and illegal vape products,” said Dunne.
“Unless a clear distinction is made between the regulated vape market supplying adult smokers with products which are 95 percent less harmful than cigarettes and the unofficial supply of illegal products, then people will become wary of all vapes with the potential to drive smoking rates back up again.”
llamcorper mattis, pulvinar dapibus leo.
August 28, 2024
DEA Sets Hearing on Cannabis Rescheduling

VV Archives
The U.S. Drug Enforcement Administration has scheduled a Dec. 2 public meeting on a proposal to lower cannabis to a less dangerous Schedule III classification under U.S. law.
The U.S. Drug Enforcement Administration has scheduled a Dec. 2 hearing on its proposal to lower the classification of marijuana to the less dangerous level of Schedule III, according to a public announcement late Monday.
The DEA had never issued any timeline for its process to potentially change the Schedule I classification of cannabis for the first time since the Controlled Substances Act went into effect in 1970. Still, some in the cannabis industry had hoped for a final decision before the U.S. election.
The DEA had already received 43,000 comments on its proposal, initially made on May 21, with a comment period that closed late in July. The DEA said the comments included requests to hold a public hearing.
DEA Administrator Anne Milgram said she would determine who will participate in the hearing and name a presiding officer to run the meeting, which will take place on Dec. 2 at 9 a.m. Eastern Time at 700 Navy Drive, Arlington, Virginia.
The government said the meeting may also be moved to a different location, continued from day to day, or recessed to a later date without notice.
August 27, 2024
RICO-Based Hemp Case Headed for Supreme Court

Credit: Adobe Stock
For the first time since the 2018 Farm Bill became law, the Supreme Court of the United States will decide a case about hemp. The lawsuit, Medical Marijuana, Inc., et al. v. Douglas J. Horn, involves the Racketeer Influenced and Corrupt Organizations Act (RICO) and asks whether product manufacturers can be held responsible for a person’s lost earnings and other job benefits under that powerful statute.

The plaintiff is a commercial truck driver who was fired for failing a random drug test after taking a CBD product that was marketed as THC-free. The plaintiff then filed a RICO claim and state law claims against the companies that marketed the CBD product. He asserted that his lost job earnings and benefits are “business or property” damages that are recoverable under RICO.

The federal district court dismissed the plaintiff’s RICO claim, finding for the companies that RICO does not provide for personal injury losses. However, the Second Circuit Court of Appeals reversed the district court and reinstated the RICO claim. The Supreme Court agreed to take up the case. If the Supreme Court affirms the Second Circuit’s ruling, the plaintiff could recover up to three times his lost earnings, plus attorney’s fees.
The U.S. Hemp Roundtable has filed a “friend of the court” brief supporting the defendants’ position that Congress did not intend RICO to apply to personal injury losses. As the brief argues, expanding RICO has major implications for the hemp products industry.
Industry experts have stated that increased costs will be passed on to consumers, potentially making products unavailable to people who need them. Additionally, more liability may cause manufacturers, distributors, or retailers to exit the industry entirely, which will reduce economic opportunities for hemp farmers and businesses.
The case is expected to be heard during the court’s next session, which begins in October.
August 12, 2024
States 2.0 Act may Clarify State, Federal Pot Rules

VV Archive Photo
In light of the widespread nullification of federal marijuana prohibition, the rising public support for legalization, and the potential excise revenues, policymakers are compelled to seriously consider significant reforms to federal marijuana policy. Last December, members of Congress introduced the STATES 2.0 Act, which would remove marijuana from the Controlled Substances Act, federally legalize its sale and use, and allow for interstate commerce.
A defederalized marijuana prohibition policy would allow states to decide for themselves whether cannabis would be legal within their borders—which they have already been doing for decades—and how that legal cannabis market would be taxed, writes the Tax Foundation.
What legal markets already exist are burdened by federal prohibition and punitive taxation, which keeps prices substantially higher than illicit markets. Bolstering black markets is a common unintended consequence of prohibition, and marijuana has been no different—even with existing state legalization. Revisions to federal cannabis policies, such as those in the STATES 2.0 Act, would give much-needed reform to a market struggling with a messy policy landscape.
Regulating Cannabis Markets
Instead of enforcing marijuana prohibition through the Drug Enforcement Administration, the STATES 2.0 ACT would rely on the Food and Drug Administration to regulate marijuana products permissible in US markets and the Alcohol and Tobacco Tax and Trade Bureau (TTB) to track products and collect taxes. Federal and state law enforcement would be able to shift focus and budgets away from petty offenses for marijuana possession toward removing more dangerous substances from illicit markets and preventing violent and property crimes.
The recent failings of the FDA to properly facilitate a legal vaping market may call into question its ability to do the same for cannabis, and there are more efficient ways to ensure product safety. However, the STATES 2.0 Act specifies that no premarket approval would be required, which would preclude the type of disaster inflicted on the vaping market.
Allowing legitimate businesses to manufacture and sell cannabis products, as well as allowing banks to do business with a legal cannabis industry, would do much to enable a safe, legal market to undercut the existing black markets dominated by cartels.
The STATES 2.0 Act would allow interstate commerce in cannabis and cannabis products when traveling between states that have provided for legalized cannabis within their borders, even if passing through states that have chosen to keep marijuana illegal.
TTB would be responsible for administering a national track-and-trace system. Similar track-and-trace systems are already in place within states that have legalized recreational marijuana, allowing states to track marijuana plants from seed to consumer sale.
A federal system administered by TTB could incorporate existing state systems into a national database. TTB would also enforce consistent and timely tax collections.
August 9, 2024
Turning Point Announces Second Quarter Results

Photo: David
Turning Point Brands (TPB) announced financial results for the second quarter ended June 30, 2024.
Total consolidated net sales increased 2.8 percent to $108.5 million compared to the previous year period. Zig-Zag product net sales increased 8 percent. Stoker’s product net sales increased 18.5 percent. Creative Distribution Solutions (CDS) net sales decreased 33 percent. Gross profit increased 2.6 percent to $53.8 million. Net income increased 31 percent to $13 million. Adjusted net income increased 12.2 percent to $17.2 million. Adjusted EBITDA increased 6.9 percent to $27 million.
“We were pleased by our second-quarter results,” said President and CEO Graham Purdy in a statement. “We achieved our highest quarterly EBITDA since the second quarter of 2021. We believe Zig-Zag is on a sustainable growth trajectory, and Stoker’s MST continues to grow market share. In addition, sales of FRE, our modern oral nicotine pouch, grew 76 percent sequentially as we continue to expand our national footprint.”
The company is increasing its previous full-year 2024 adjusted EBITDA guidance from $95 to $100 million to $98 to $102 million, which excludes CDS.
For the second quarter, CDS net sales were $15.3 million, gross profit was $3.4 million and gross margin was 22.5 percent.
August 1, 2024
Cannabis Investor Accused in ‘Ponzi-Like’ Scheme

Credit: Somchairakin
The U.S. Securities and Exchange Commission filed a lawsuit on Monday against California businessman Robert Newell and one of his former companies, Black Hawk Funding. They alleged that Newell orchestrated a $38 million “Ponzi-like” scheme to defraud investors.
The lawsuit, filed in U.S. District Court in the Central District of California, alleges that 63-year-old Newell raised $37.7 million from about 200 investors nationwide between 2016 and 2019 to ostensibly invest in legal marijuana businesses. Instead, he “engaged in various undisclosed and unauthorized uses of the funds, including making Ponzi-like payments to investors and paying for the expenses of unrelated entities.”
Newell founded Black Hawk Funding in 2011, originally with a focus on the real estate industry, but he pivoted to cannabis following recreational legalization in California in November 2016, according to the lawsuit. Newell acted as the principal financial adviser to three private funds: Verde Ventures Inc., Verde Holdings Inc., and Verde Partners Inc, according to Green Market Report.
Another separate corporation, National Asset Valuation Services, was also created by Newell “as a conduit to misappropriate money” from two of the three funds, the SEC lawsuit alleges.
“Newell engaged in a scheme and deceptive course of business to defraud investors by creating a false impression that the Verde Funds were more successful than they were, which allowed Newell to continue raising funds from investors and to enrich himself at the expense of the investors,” the SEC alleged in the suit.
July 25, 2024
Missouri Boosts Legal Levels of Vitamin E Acetate

Credit: Sean Pavone Photo
Missouri regulators have raised the allowable limit for vitamin E acetate in regulated marijuana products from 0.2 parts per million to 5 parts per million, sparking concern from stakeholders, including the state’s chapter of the National Organization for the Reform of Marijuana Laws (NORML).
Previous regulations required vitamin E acetate testing for cannabis concentrates and inhalables, but the updated rule applies to concentrates, infused plant material, pre-rolls and vapes, according to media reports.
Vaping industry operators might remember vitamin E acetate as having caused the EVALI (e-cigarette or vaping use-associated lung injury) crisis of 2019-20, when nearly 70 people died and more than 2,500 vape consumers were hospitalized for a mystery lung illness eventually tied to the chemical, which some product manufacturers used as a thickening agent for vape oil.
After medical professionals sounded the alarm in 2019 about patients becoming gravely ill from vaping, it took months before scientists were able to identify the culprit.
According to Kansas City TV station KCTV, the Missouri Department of Health and Senior Services’ rules for licensed marijuana operators took effect March 1 and allow 25 times more vitamin E acetate in finished marijuana products, including vapes.
Missouri NORML Coordinator Dan Viets told KCTV that “there appears to be no rational explanation for why the state of Missouri would dramatically increase the amount of a very toxic substance in legal cannabis products when none of it whatsoever should be present in them.”
The health agency wrote in a letter to state marijuana business license holders that the Missouri Division of Cannabis Regulation “determined the good cause for granting this variance is that it provides accurate standardization of the method reference material for testing licensees, reduces the risks for false failures, and to ensure Vitamin E Acetate is not added to marijuana product.”
July 21, 2024