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Governor Polis Signs Bill Eliminating Possession Offense For Up To 2 Ounces Of Marijuana

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COLORADO: Gov. Jared Polis signed a bill into law this week increasing the amount of cannabis adults can legally possess from one ounce to two ounces. It also streamlines the record-sealing process for past cannabis possession convictions and expands record-sealing eligibility to include additional cannabis offenses. The new law takes effect immediately.

In 2012, voters approved Amendment 64, making possession of up to one ounce of cannabis legal for adults 21 and older under the state constitution. Possession of between one and two ounces of cannabis remained unlawful because a previously existing Colorado statute classified possession of up to two ounces as a petty offense.

HB21-1090, sponsored by Rep. Alex Valdez and Sen. Julie Gonazales, eliminates the offense for possession of up to two ounces of cannabis, thereby increasing the legal possession limit from one ounce to two ounces for adults 21 and older. It also preserves the illegal status of possessing any amount of cannabis for people under 21.

Bringing the legal possession limit into alignment with the historical classification for lowest-level possession offenses is also expected to reduce the administrative burden associated with sealing the records of past possession offenses.

American Cannabis Company, Inc. Receives Approval from Colorado’s Marijuana Enforcement Division (MED) and the City of Colorado Springs to Acquire, Own, and Operate Naturaleaf™ in Southern Colorado

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COLORADO:  American Cannabis Company, Inc. announced that on April 30, 2021, Colorado’s Marijuana Enforcement Division (MED) and the City of Colorado Springs granted regulatory approvals for the Company’s acquisition and operation of Medihemp, LLC, and its wholly owned subsidiary SLAM Enterprises, LLC, and Medical Cannabis Caregivers, Inc., all doing business as Naturaleaf™, a long-standing vertically integrated cannabis business.

As a result of the regulatory approvals and the closing of the asset purchase, the Company acquired Naturaleaf’s three medically licensed retail stores, and a 10,000 square foot cultivation and extraction facility located in the metropolitan area of Colorado Springs. Naturaleaf™ has earned a strong reputation for its quality products and customer experience, having served its loyal and growing patient base since 2009. 

“We are incredibly happy to have completed this acquisition, and this is only the beginning,” said Terry Buffalo, Chief Executive Officer of American Cannabis Company. Buffalo continued, “With the approval from the regulatory bodies now behind us, this is where the real work starts. Brand integration is key for success, and our team is working diligently to dial in processes and procedures, as well as implementing ACC’s company culture and core values, while also maintaining Naturaleaf™ brand integrity. We look to expand production capacities by revamping the cultivation operation, adding technology and equipment, including our proprietary cultivation methodologies and ‘just add water’ all-natural potting mix, SoHum Living Soils®, to effectively grow a consistent, high-value flower product. In addition to the modifications we plan to make in the back of the house, we also aim to elevate the retail experience by adding best-in-market products, new retail equipment and technologies to maximize customer/patient experience, as well as maintain consistent inventories. With this acquisition we anticipate over $2mm+ in gross revenue, and we look to increase upon that. For more details, please read the Company’s most recent 8-K filings.”

Scott Saunders, owner of Naturaleaf™, commented: “We are happy to have been acquired by American Cannabis Company. Since 2009 Naturaleaf has been pioneering the local medical market. The staff is excited to transition under the ownership of a public company, and I am excited for the people of Colorado Springs to see what American Cannabis Company is going to bring to the local community.”

Overall Transaction Background

On December 10, 2020, American Cannabis Company announced that it had executed a non-binding letter of intent to acquire all three (3) Naturaleaf™ medical marijuana centers along with its ten thousand (10,000) square foot commercial cultivation facility that also includes non-volatile extraction facilities.

On March 11, 2021, American Cannabis Company announced that it had executed the official Asset Purchase Agreement (APA) and on April 20, 2021 the Company received a contingent approval letter from Colorado’s Marijuana Enforcement Division (MED), outlining the change of ownership.

After now having obtained final regulatory approval transferring the Naturaleaf™ licenses to the Company, and finalizing the closing of the asset purchase transaction as of April 30, 2021, the Company plans to acquire additional local and national cannabis assets and brands, with the goal of creating a portfolio of cannabis assets elevating the consumer experience through a commitment to wellness, quality products, and cleaner green practices.

For a complete disclosure of the asset purchase agreement, see the Company’s Form 8-K filed with the Securities and Exchange Commission:

https://www.sec.gov/Archives/edgar/data/945617/000172186821000142/f2sammj8k031121.htm

For a complete disclosure of the acquisition for Naturaleaf™ and the received regulatory approval, see the Company’s Form 8-K filed with the Securities and Exchange Commission:

https://www.sec.gov/Archives/edgar/data/945617/000172186821000254/f2sammj8k043021.htm

How Big Is Legal Cannabis In Colorado?

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MED Resources and Statistics

As of December 1, 2020

Medical Marijuana Business License Numbers:

  • 663 Cultivations
  • 6 Delivery (Permits)
  • 7 Operators
  • 216 Product Manufacturers
  • 1 Development and Research Cultivation
  • 431 Stores
  • 11 Testing Facilities
  • 6 Transporters

 Retail Marijuana Businesses License Numbers:

  • 712 Cultivations
  • 3 Hospitality
  • 9 Operators
  • 288 Product Manufacturers
  • 604 Stores
  • 12 Testing Facilities
  • 12 Transporters

Individual Licensees:

  • 185 Owner Entities
  • 1,726 Business Owners (Natural Person)
  • 39,653 Employee Licensees

MED Licensee Demographic Data

Cannabis Software And Consulting Leader MJ Freeway Closes $3 Million In Series B Extension Investment

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COLORADO: MJ Freeway, a leading provider of business management solutions and consulting services for the cannabis industry, has announced $3 million in Series B extension financing raised from existing investors. MJ Freeway received new investments from existing investors Roger McNamee and Tao Capital Partners. With the unprecedented growth of the cannabis market, the company will use this funding to invest in continued market expansion.

In 2016, the medical and recreational marijuana industry saw tremendous growth with sweeping votes for cannabis across the US and the world. According to a recent report from Arcview Market Research, America’s marijuana industry is expected to reach $22.5 billion by 2021. As the inventors of patented seed-to-sale tracking software, the company sees the investment as an opportunity to continue to effectively support this growing industry.

“MJ Freeway has been the leader in business management solutions catering to the needs of this unique market for seven years,” said Roger McNamee. “The new Platform product is a game changer that will enable the industry and regulators to succeed as the industry grows and becomes mainstream.”

“Even industry insiders could not predict the success cannabis saw during the 2016 ballot as nine states weighed in on marijuana reform. With the expectation that the cannabis market is set to more than double by 2018, we chose to invest additional capital with MJ Freeway,” said Joby Pritzker, Managing Director of Tao Capital Partners and Chairman of the Marijuana Policy Project, the largest organization in the United States focused on marijuana policy reform.

“We are grateful for the partnership we’ve developed with Roger McNamee and Tao Capital Partners. It’s thrilling to have received this funding from such experienced, forward-thinking investors who continue to help strategically advise our position in the market,” said Jessica Billingsley, COO and Co-Founder of MJ Freeway.

With the recent launch of MJ Freeway’s new enterprise level traceability and business management software, the company has seen a tremendous surge in sales. Adds Amy Poinsett, CEO and Co-Founder, “The response to MJ Platform, our enterprise resource management software, has been very positive. This solution, specifically designed to ease the compliance and business management aspects for cannabis operators, is revolutionizing the space and this funding will enable us to meet the demand.”

The extension financing marks a total of $11 million raised in MJ Freeway’s Series B investment round.

Feds Ask Supreme Court To Stay Out Of Lawsuit Over Colorado Marijuana

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COLORADO: The federal government has asked theU.S. Supreme Court to avoid wading into a lawsuit brought by Oklahoma and Nebraska over Colorado’s legalized marijuana system.

Oklahoma and Nebraska say Colorado’s legal marijuana system has created a flood of modern-day bootleggers who are buying pot in Colorado and then illegally crossing state lines. Oklahoma and Nebraska have sued Colorado, asking the Supreme Court to block the state’s legal marijuana system. Colorado asked the court to throw out the lawsuit, and the Supreme Court this fall asked the federal government to weigh in.

“Entertaining the type of dispute at issue here — essentially that one state’s laws make it more likely that third parties will violate federal and state law in another state — would represent a substantial and unwarranted expansion of this court’s original jurisdiction,” Solicitor General Donald Verrilli Jr. wrote in his response filed Wednesday.