Nevada CCB Launches Investigations Into Three Nevada Dispensaries, Selling Potentially Unsafe Product

NEVADA: The Nevada Cannabis Compliance Board (CCB) has opened investigations into three dispensaries for selling product that twice failed microbial testing.

On March 5, 2020, the Department of Taxation and CCB issued a directive to all dispensary/retail stores to immediately stop selling the product, Cherry OG F3, which failed laboratory testing for yeast and mold, coliforms, Enterobacteriaceae and Aspergillus.

At that time, the CCB instructed dispensary/retail stores to destroy or return the affected product to the cultivator and communicate that they took such action with the State. Despite the CCB’s directive, it appears three dispensaries retained their inventory of Cherry OG and began selling the product again in May.

Approximately 375 grams of the Cherry OG product were sold between May 19, 2020 and June 29, 2020 at the following Retail Stores/Medical Dispensaries:

1. Waveseer of Las Vegas, LLC (Jenny’s Dispensary), 5530 N Decatur Blvd, Las Vegas, NV 89130 (License # 83760475147127946601);

2. Paradise Wellness Center, LLC (Las Vegas ReLeaf), 2244 Paradise Road, Las Vegas, NV 89104 (License # 54283805068313943868); and

3. Desert Aire Wellness, LLC (Sahara Wellness), 420 E Sahara Ave, Las Vegas, NV 89104 (License # 25729455103203031356)

On May 16, 2020, a hold on the product was temporarily lifted due to a CCB error that occurred during an unrelated investigation. However, the CCB’s health and safety advisory remained in effect; and under the directive, dispensaries should not have had the product in their inventory.

The CCB advises those who have purchased the product to avoid consuming it. Consumers should check any Cherry OG products for the source package # 1A404030000076F000006649. The CCB notified the aforementioned dispensaries and initiated investigations which are ongoing. There are no known reports of illness.

Industries Booming Since Marijuana Legalization

The marijuana industry has been growing steadily since its legalization in the United States, with more than 75% increase in sales, and contributing greatly to the economy of this nation. To date 11 states have legalized marijuana for recreational use and other 33 have authorized cannabis for medicinal use.

Legalization has seen the creation of a diverse range of companies related to the production and distribution of marijuana, driving the creation of hundreds of thousands of new jobs. Some of the industries that have directly benefited the most from marijuana legalization include farms that grow the plant, to the dispensaries that sell its many product forms, as well as various distribution channels, including delivery services.

Below are some of the popular industries that have developed since marijuana was legalized.

Farms

Before marijuana legalization, farmers used to practice secret-indoor farming which consumed much energy. This is now changing since they can freely grow the plant outdoors and utilize the power of the sun. Farming legally has enabled this industry to take advantage of traditional farming practices such as irrigation and multi-farming. Legalization has enabled farmers to practice quality control, including the use of organic fertilizers and eco-friendly growing methodologies.  These innovations improve productivity and improve the marketplace, reducing demand for marijuana black markets.

Dispensaries

Following the legalization of marijuana in some states, dispensaries selling cannabis have mushroomed nationwide. As earlier mentioned, many people have secured employment in these dispensaries including young people, thus reducing the crime rate in towns due to joblessness.

Legal dispensary owners have had to advance their marketing strategies to compete in this legal market. This means that if you desire to venture in this business, you will need more than the investment capital and the proper licenses, you will be required to create a compelling retail experience, and a differentiated brand.  Dispensaries need to stock their shelves with the right products for their local customers and offer the best customer service.

Delivery Services

Dozens of new cannabis delivery services have sprouted all over the country, thanks to legalization. Initial cannabis laws featured restrictions concerning the sale, use, marketing of marijuana, and licensees could not freely make deliveries to their clients.

In recent years, however, several legal states have amended their regulations to allow for home delivery, and this has helped improve customer satisfaction as well as retention.

Manufacturing Industry

The manufacturing industry has been a huge beneficiary of cannabis legalization. Marijuana is no longer just a smokeable product. Cannabis, once its active ingredients are extracted or distilled,  can be infused into a wide range of products — ranging from beauty lotions and potions, wellness and nutraceuticals, food and beverages, sweets and savories.

Wrap Up

The legalization of marijuana for both medical and recreational use has transformed a once cottage industry into big business. Investors are rushing into the cannabis markets, along with entrepreneurs intoxicated with the endless opportunities the Green Rush has presented. Cannabis legalization is driving the growth of a number of ancillary and adjacent industries, and industry analysts expect its current growth to continue to expand for decades to come.

 

Cresco Labs Continues Its Illinois Expansion With Regulatory Approval For Three Dispensaries

ILLINOIS: Cresco Labs Inc., one of the largest vertically integrated multi-state cannabis operators in the United States, today announced that it received approval from the Illinois Department of Financial and Professional Regulation (IDFPR) for Cresco’s previously announced acquisitions of licensed medical cannabis dispensaries MedMar Rockford and MedMar Lakeview, located in the popular Wrigleyville neighborhood of Chicago. The IDFPR also approved Cresco’s acquisition of PDI Medical, a medical cannabis dispensary located in Buffalo Grove, Illinois, which was purchased by the Company in November 2018. The MedMar dispensaries are Cresco Labs’ fourth and fifth dispensary acquisitions in Illinois bringing the Company’s footprint to five dispensaries in its home state.

“Illinois is at the forefront of our nation’s evolution of the cannabis industry, and with these three dispensary approvals, Cresco has reached the maximum level of dispensaries any single company can own and operate in our home state,” said CEO & Co-Founder Charlie Bachtell. “We have already achieved the highest market share of any operator in Illinois and our prospects for accelerated growth are promising with the recent implementation of the Alternatives to Opioids program that began on February 1st. Illinois has opened access for patients by eliminating the three-month waiting period as well as requirements for fingerprinting and background checks for all patients with any qualifying condition. With a doctor’s approval, a patient can now receive a medical-use cannabis card in just one day.”

In addition to its five dispensaries in Illinois, Cresco operates three cultivation and processing facilities across the state.

MedMen Acquires Monarch Wellness; Expands Reach Into Arizona Medical Marijuana Market

CALIFORNIA: MedMen Enterprises  announced that it has signed a definitive agreement with WhiteStar Solutions to acquire control of Monarch, a Scottsdale, Arizona-based licensed medical cannabis license holder with dispensary, cultivation and processing operations through the acquisition of Omaha Management Services, LLC. In addition, MedMen will acquire from WhiteStar their exclusive co-manufacturing and licensing agreements with Kiva, Mirth Provisions and HUXTON for the state of Arizona.

medmen

“Our strategy has been to establish our brand in the primary markets of California, Nevada and New York,” said Adam Bierman, MedMen chief executive and co-founder. “We have a leading presence in those primary markets and we are now ready to expand our reach. Arizona, with its robust medical marijuana program and connectivity to California and Nevada where our brand is already strong, makes this a great fit.”

Arizona is one the largest medical marijuana markets in the country with over 172,000 current patients. The state also represents one of the larger addressable adult-use markets in the U.S. A ballot measure to legalize adult-use narrowly missed in 2016, and is expected to return in 2020.

Founded in 2013, Monarch is among the top medical marijuana dispensaries in the country, known for exceptional patient service, commitment to cannabis product education and innovative operational concepts. Monarch is the first cannabis dispensary to break ground in Scottsdale with impressive product offerings in its portfolio and a run rate revenue of over US$10 million.

In addition to the medical marijuana dispensary, Monarch is licensed to operate a 20,000-square-foot cultivation and manufacturing facility in Mesa, Arizona. As one of the top wholesalers in the Arizona market, Monarch distributes branded products to over 60 dispensaries in the state.

As consideration for the acquisition, the Company will pay approximately 80 percent in stock and 20 percent in cash. The stock consideration will be satisfied by way of issuance of shares of MedMen Enterprises, Inc.

The transaction is expected to close within 90 days and is subject to customary closing conditions.

 

 

Study: Marijuana Dispensaries Associated With Declining Rates Of Painkiller Abuse

GEORGIA: Cannabis dispensaries are associated with reduced levels of opioid-related treatment admissions and overall drug mortality, according to a study published online on SSRN.com.

A University of Georgia economics professor assessed the relationship between the opening of medical cannabis dispensaries and drug treatment admissions.

Dispensary openings are associated with “a 20 percentage point relative decrease in painkiller treatment over the first two-years of dispensary operations,” the study reported. This correlation was strongest among non-Hispanic white males in their thirties.

Dispensary openings also resulted in fewer drug-related mortalities per 100,000 people.

The author concludes, “[T]he unintended beneficial effects of allowing for marijuana dispensary operations should be considered by policymakers as they aim to curtail narcotic abuse and limit the impact of the opioid epidemic.”

The paper’s findings are similar to prior studies reporting that states permitting medical marijuana dispensaries experience a relative decrease in both opioid abuse and opioid overdose deaths compared to states that do not.


For more information, contact Paul Armentano, NORML Deputy Director, at: paul@norml.org. Full text of the study, “The effect of medical marijuana dispensaries on adverse opioid outcomes,” appears online.

Marijuana Legalization In Delaware: New Medical Dispensaries Set To Open In 2016

DELAWARE: On Dec. 2, the Delaware Department of Health and Social Services began to accept proposals for nonprofit companies to operate a medical marijuana dispensary in several counties in the state, Delaware Public Media reported. The deadline is March 30 so that two centers can open by fall 2016, the Cape Gazette reported.

The revitalized program has aims to expand accessibility to medical marijuana throughout the state since its legalization in 2011 and decriminalization in June. Gov. Jack Markell had put it on hold because of pressure with the federal law that kept it illegal, according to Delaware Public Media.

It took about four years for the first pilot dispensary to open. Called the First State Compassion Center, residents lined up around the parking lot on its opening day in June, according to Delaware Online. However, there is a legal limit of 2,000 ounces kept in dispensary’s inventory, the Cape Gazette reported.

Pot Risk Vs. Profit: Bankers Cautious Of Marijuana Dispensaries

COLORADO: Every month, Jamie Perino hires a security detail to come to her three recreational marijuana dispensaries. They stop by, collect thousands of dollars in cash and head out to deliver the money to the state, county and city.

Perino, the CEO of Euflora dispensaries, said she can’t find a bank that will work with her. She pays her employees and her landlord in cash. She can only accept cash from customers. She must even pay her taxes in cash.

“I can’t bank my money,” she said. “It’s really frustrating. … When I go to pay my federal taxes, you get a 10 percent penalty for paying in cash, but we can’t have a bank account. So it’s just a big Catch-22.”

Oregon Releases Draft Recreational Marijuana Rules

OREGON:  Oregon public health officials have released draft rules for medical marijuana dispensaries selling legal recreational pot.

The Oregon Health Authority‘s rules limit the type of marijuana products sold as of October 1 to seeds, dried leaves and flowers and plants that are not flowering. As expected, edibles won’t be sold to recreational users at medical marijuana dispensaries.

The products can be purchased in limited quantities, including up to one-quarter ounce of marijuana flowers or leaves per day.

Only adults age 21 and older will be able to enter the dispensaries, which will verify age via a state or federally issued ID. Each purchase will be recorded.

New Jersey Issues Standards For Edible Forms Of Medical Marijuana

NEW JERSEY:  New Jersey this week issued its first standards for edible forms of medical marijuana, a move that could clear the way for the state’s three dispensaries to start making and selling the products.

The state Department of Health told The Associated Press on Friday that the standards, intended to assure patient and employee safety, were sent to the clinics on Tuesday.

Executives at the three clinics did not immediately return calls to The Associated Press on Friday afternoon, so it’s not clear whether the standards will be enough to jump start production of a form of the drug that some advocates have long said should be made available, especially for children.

Cannabis Comes To Las Vegas: Answering Your Burning Questions About Medical Marijuana

NEVADA:  In the coming weeks, the first crops of cannabis will begin blooming in warehouses across the valley, the most tangible sign yet that medical marijuana is headed to Southern Nevada.

Businesses that received state approval in November have been busy preparing buildings, sourcing crops and getting ready to open their doors. When they do, an industry that has been almost 15 years in the making will be born.

Voters first legalized medical marijuana in 2000, but the state never established a formal system for growing and distributing it. Patients grew their own plants for personal use.

That changed in 2013 when lawmakers approved a statewide system of dispensaries, growing facilities and labs. It has taken nearly two years to write rules, collect applications and award licenses, but Nevada’s first medical marijuana businesses finally are set to begin operations.