Recap: Nevada Cannabis Compliance Board’s Inaugural Board Meeting

NEVADA: This week the Nevada Cannabis Compliance Board (CCB) held its first board meeting at the Grant Sawyer Building. Led by former Nevada Supreme Court Chief Justice Michael Douglas, who serves as Chair, the CCB moved to approve its core set of regulations, the Nevada Cannabis Compliance Regulations (NCCR 1-14).

Moving forward, the NCCR 1-14 will guide regulation of the cannabis industry in this State. Within those regulations, some highlights include: -An increase to all civil penalty categories (NCCR 4). -A more expansive and comprehensive licensing and approval structure for cannabis companies, owners and employees (NCCR 5). -Enhanced requirements for cannabis testing facilities, including more transparency of results (NCCR 11).

Additionally, the CCB voted to lift the extended review period, now allowing for the processing of transfers of interest. The extended review period was put into place last year, at the recommendation of the special task force, formed by Governor Steve Sisolak, to ensure a more thorough and appropriate vetting process within the cannabis industry.

Lastly, the CCB approved a disciplinary settlement with CWNevada, which held 14 licenses and certificates in this State. The settlement includes the revocation of six licenses, a fine of $1.25 million, remittance of all taxes owed in the amount of $1.5 million, and the forced sale of all remaining licenses to pay back owed employee wages and other financial obligations.

All registered owners of CWNevada will not be allowed to collect any proceeds from the sale and could face additional discipline. The full board meeting can be viewed here. The final NCCR 1-14 can be found here

iAnthus Expands Nevada Footprint With Agreement To Acquire Vertically Integrated Northern Nevada Operator

NEVADA:  iAnthus Capital Holdings, which owns, operates, and partners with best-in-class regulated cannabis operations across the United States, announced that its U.S. subsidiary has entered into an agreement to acquire WSCC, Inc. (“Sierra Well“), a leading Nevada-based vertically licensed cannabis company with two dispensary locations and over 20,000 square feet of cultivation/production facilities in Reno and Carson City.

The acquisition will enhance iAnthus’ presence and accelerate growth efforts in Nevada, which represents an approximately US$640 million adult-use and medical cannabis market growing at over 20% annually, based on data made publicly available by the Nevada Department of Taxation. In conjunction with its current operations, iAnthus’ footprint will be as follows:

  • 6 dispensary Nevada licenses across the state, which includes two currently operating dispensaries under the Sierra Well brand.
  • 50,000 square feet of Nevada cultivation and processing capabilities to further capitalize on strong production and distribution capabilities in the state (MPX-branded products, including award-winning concentrates and recently launched edibles, are currently sold in over 40% of dispensaries in Nevada).
  • Pro forma open dispensary count of 29 stores nationwide.

Sierra Well was founded in 2014, and opened its Reno location in 2015 and its Carson City location in 2016. On an unaudited standalone basis (prepared in accordance with US GAAP), Sierra Well’s last quarter annualized revenue was approximately US$16 million with an EBITDA (non-IFRS) margin above 20% and positive net income.

The transaction is expected to close in the first half of 2020, subject to customary regulatory approvals including approval of the license transfers by the Nevada Department of Taxation. Upon closing of the transaction, the Sierra Well dispensaries will be renamed under the Company’s Be. brand, which is being launched nationwide in October 2019.

“Strengthening our foothold in one of the most successful adult-use cannabis markets is consistent with our strategy to deliver iAnthus’ nationally recognized products in premier markets,” said Hadley Ford, CEO of iAnthus. “This strategic transaction will allow us to scale our Nevada operations, add talent, and solidify both our retail and brand presence in both the Northern and Southern portions of the state.”

“We’re excited to join the iAnthus team and look forward to expanding our business with the expertise of a tried and tested multi-state operator,” said Steven Nightingale, Chairman of the Board of Sierra Well. “We at Sierra Well see this partnership as a perfect fit, one that will allow our dynamic workforce to deepen their ability to provide top-notch service and products to the communities of Reno and Carson City.”

Cresco Labs’ Mindy’s Edibles Ranks First for Cannabis Edible Sales In Nevada

ILLINOIS: Cresco Labs, one of the largest vertically integrated multistate cannabis operators in the United States, is excited to announce that its Mindy’s Kitchen brand has been ranked the top selling edible in Nevada according to Headset, the first real-time data analytics and business intelligence platform for the cannabis industry. In partnership with Cresco Labs, James Beard Award-winning chef Mindy Segal created the industry’s first culinary-backed, cannabis-infused edibles, with a six-state distribution planned for 2019. In Nevada, Mindy’s Pink Lemonade Gummies, Strawberry Sparkling Wine Hard Sweets and Wild Cherry Gummies, ranked first, ninth and tenth, respectively, by Headset, for edible sales in the state.

“We launched Mindy’s Edibles in Nevada in mid-August and, in less than six months, our products are now carried in 62 out of 67 dispensaries in the state,” said Cresco Labs CEO and co-founder Charles Bachtell. “Our proven ability to create brands that resonate with each consumer segment and establish a dominant retail market position is a key differentiator for Cresco Labs.”

Mindy’s Artisanal Edibles include a line of decadent chocolate brittle bars and homespun baked goods infused with clear distillate allowing the best ingredients to shine through. The Mindy’s Kitchen brand – a collaboration between Mindy and her talented group of chefs – offers fun, fruity confections for everyday enjoyability and effectiveness. The confections are infused with RSO and winterized sativa, indica and hybrid oil that complement the approachable flavors. Mindy’s Edibles are produced and distributed in partnership with Silver State Wellness in Nevada.

MedMen Opens First Branded Store In Las Vegas

CALIFORNIA: In classic Las Vegas fashion, with red-feathered showgirls and an Elvis impersonator entertaining the crowds, MedMen Enterprises opened its first branded store in the tourist mecca and entertainment capital of the world.

Located at 823 3rd Street in the Arts District and near the Fremont Street Experience, MedMen Downtown Las Vegas is the Company’s 14th store nationwide. MedMen has been operating a second dispensary in North Las Vegas, which won approval last month to move to 4503 Paradise Road near the Hard Rock Hotel, the Thomas and Mack Center and McCarran International Airport. MedMen Las Vegas Airport is currently under construction.

“We’re excited to put an anchor here in Downtown Las Vegas. Nevada is setting an example for the world,” said MedMen CEO Adam Bierman during a ribbon-cutting ceremony attended by local dignitaries and a crowd of onlookers awaiting to enter the store. “This is just the beginning.”

Nevada State Senator Tick Segerblom, a longtime advocate for marijuana legalization, was in attendance. “We are so excited to have MedMen here in Downtown Las Vegas,” said Segerblom. “They are the premiere brand in the world and we can’t thank them enough for coming here.”

Las Vegas City Councilwoman Michele Fiore said, “MedMen is raising the bar. This is not a pot shop. This is a retail store that shatters stereotypes. This is the future of cannabis.”

Las Vegas ranks as one of the world’s most visited tourist destinations, with an average 40 million visitors annually. The historic center of Las Vegas and the original gambling district, the city’s downtown area has been going through a much-touted renaissance in recent years.

Nevada also is one of the fastest growing state-sanctioned marijuana markets in the country. According to the Nevada Department of Taxation, cannabis accounted for about $386 million of the total statewide taxable sales for the period of July 2017 through March 2018, about 19.3 percent of the state’s growth in taxable sales compared to the same period last year.

A leading cultivator, producer and retailer of state-sanctioned cannabis in the U.S., MedMen currently operates licensed facilities in California, Nevada and New York.

Kush Bottles To Open New Facility In Las Vegas

CALIFORNIA:  Kush Bottles, a leading provider of packaging, suppliesvaporizershydrocarbon gasessolventsaccessories and branding solutions for the regulated cannabis industry, today announced it has signed a lease for a new warehouse facility in Las Vegas to meet demand from the consumer market as well as support the current and new businesses entering the industry or expanding operations.

kush bottles

With the 13,000 square foot facility, expected to be operational mid-June, Kush Bottles expects to minimize the time taken to receive and distribute packaging and supplies, streamline its logistics and access more storage space for high-demand products with rapid turnover times, such as exit bags, cartridges, and pre-roll tubes. By opening its first local distribution facility in Las Vegas, the Company aims to become a stronger partner to some of the most advanced cannabis cultivation and retail facilities in the industry, which are located in Nevada. This warehouse will complement the existing Kush Bottles hazmat facility used today to service the Las Vegas and greater Nevada market with a variety of hydrocarbons, which businesses use to turn cannabis plants into oils.

“The new Las Vegas facility will further solidify Kush Bottles’ commitment to the city’s thriving, local cannabis community and strengthen our own mission to be the go-to partner for cannabis companies as they scale their operations,” said Kush Bottles CEO Nick Kovacevich. “The fluctuating demand from the tourism and organic growth in the cannabis market means that a lot of our partners are having a difficult time forecasting their packaging and supply needs. By having a local facility, we give our clients the added flexibility of faster delivery as well as offering on-site pick up if that’s what their business dictates.”

Reno Cannabis Convention To Be Held April 7-8 At Whitney Peak Hotel

First Time Cannabis Convention In Reno

NEVADA:  Celebrating the arrival of adult use Cannabis in the state of Nevada, the first Reno Cannabis Convention will be held the weekend of April 7 at Reno’s Whitney Peak Hotel. Cole Markus, Owner of the convention, made the announcement this week.

Designed to appeal to all cannabis users, – Adult use, Medical and Enthusiasts –the show will operate on April 7 from 11-4:45 and April 8 from 11-4:30. The Reno Cannabis Convention is a unique industry trade show that encompasses the emerging local cannabis community in Reno, Nevada. The Convention, sold out for exhibitors but with event tickets still available, serves to foster industry expansion through advocacy and education.

Speakers include “CannaNurses” Juhlzie Monteiro, RN, BSK and Heather Manus, RN, who will speak on cannabis for children and Loral Langemeier “The Millionaire Maker” and Nevada native who is on a relentless mission to empower people to become millionaires.

Cannabis Nurses Network™ Presents  Cannabis Education for Nurses at UNLV-Las Vegas, NV

Cannabis Education for Nurses at UNLV-Las Vegas, NV

Ticket prices are $25 for a 1-day pass and $40 for a 2-day pass. Sponsored booths will also be available to the public during convention hours. The Reno Cannabis Convention is strictly a non-consumption event.

Marapharm Is Building A Third Facility In Las Vegas

CANADA: Marapharm Ventures Inc. has announced construction plans for a third building which will be 65,635 square feet on the 7 acre property located in Las Vegas, adjacent to 2 existing cultivation buildings. The ground prep pad is ready to build on, most infrastructure is designed and in place and building plans go for bid in October 2017. Construction will begin soon thereafter. This building is slated to be the first 3 story cannabis building in the state of Nevada.

“Current pricing and comparable facilities in Nevada indicate that revenue from the new 3 story building will potentially be $50 million gross and $30 million net, after operating costs, for the first year (source Kurt Keating). We will be at about 20% build out with regard to the square footage of the licenses we have.  Marapharm is the largest marijuana license holder in Nevada.” Linda Sampson, CEO, Marapharm.

Marapharm engaged Kurt Keating to do the evaluation of this project. Kurt won 2 High Times Cannabis Cups in 2014 while cultivating medical cannabis and he has been consulting, evaluating and growing cannabis for several years. The market price for this type of marijuana at present is approximately $2300 wholesale per pound in Nevada. The evaluation for the three floors is 22,600 pounds per year.

Terra Tech Signs LOI To Acquire Cannabis Cultivation & Production Facilities In Nevada

CALIFORNIA: Terra Tech, a vertically integrated, cannabis-focused agriculture company, announced that it has signed a non-binding letter of intent to acquire 50% of NuLeaf Sparks Cultivation LLC and NuLeaf Reno Production LLC. The acquisition is expected to fast track Terra Tech’s cultivation and production facilities allowing them to introduce their IVXX wholesale brand as well as support increasing demand for cannabis products throughout Nevada.

NuLeaf Sparks holds a Nevada medical cannabis cultivation license and is in the process of constructing a 30,000 square foot cannabis cultivation facility in Sparks, Nevada. NuLeaf Reno holds a Nevada medical cannabis production license and is in the process of constructing a 15,000 square foot cannabis production facility in Reno, Nevada. Both facilities are expected to be completed by the fourth quarter of 2017.

Derek Peterson, CEO of Terra Tech, commented, “This partnership will allow us to rapidly increase our time to market without needing to invest vast amounts of time or capex into establishing cultivation and production capabilities from scratch. The NuLeaf team, which has operated BPG cannabis dispensary in Berkeley, CA, has been a premier vertically integrated supplier in California for over two decades. Our combined experience positions us to be a dominant force throughout Nevada. We aim to close the transaction in Q3 2017 and to start generating revenues from cannabis produced at the joint facilities by the end of the year. Cannabis grown at these facilities will be harvested under the safest conditions, free of toxic pesticides, harmful molds and chemical residues in order to meet the high standards associated with our IVXX brand. The new cultivation and production facilities will supply our three dispensaries in Las Vegas, as well as our Reno dispensary, and third party dispensaries across the State of Nevada.”

Tim Schick, president and CEO of NuLeaf, commented, “We are excited to enter into this partnership with Terra Tech, which is one of the most well-known and reputable operators in Nevada’s burgeoning cannabis market. The legalization of cannabis in Nevada has opened a major opportunity for companies to develop and introduce brands to a global market. Terra Tech’s seasoned team combined with our significant industry experience should give us a solid first mover advantage with brand penetration in the Nevada market and we are excited to move forward with this transaction.”

The proposed transaction is subject to customary closing conditions, including both parties completing due diligence and obtaining any approvals from applicable state and local authorities. The closing is conditional on negotiating final agreements in addition to the other closing conditions. Assuming completion of these conditions, the transaction is expected to close in the third quarter of 2017.

The Wink In Weed: CannaFest Destiny Takes MJBA To Las Vegas

MJBA Expands National Footprint, Relocates HQ To Silver State

By David Rheins

This summer I undertook a cross-country, coast-to-coast, “CannaFest Destiny” road show. Sponsored by Curved Papers, the MJBA tour made ‘official’ stops in Washington, Oregon, Nevada, Indiana, Massachusetts and New York. We gathered in small groups and large, hosting meetups, participating in panel discussions, exhibiting and speaking at trade shows, investor summits and Hempfests. We exchanged ideas, shared our dreams and committed to working together to build a truly sustainable, profitable and ethical legal industry.

The MJBA held court at Indianapolis’ oldest political venue, the storied Antelope Club, where alongside Hoosier Veterans for Medical Cannabis and the Indiana Chapter of the Libertarian Party, where we discussed ways that Hoosiers can participate in the Cannabis and Hemp revolution today.

The CannaFest Destiny Tour generated excitement and positive press – in local newspapers and radio, on podcasts, through Facebook feeds and social media – opening eyes and making new allies and friends all along the way.

mylesanddavecurved

Having spent much of the past 5 years working to build the legal cannabis industry in the Pacific Northwest and Colorado, it has been exciting for me to witness CannaFest Destiny at work: how each new state and local community is incorporating and modifying best practices from Washington, Colorado and Oregon to create a unique legal marketplace tailored to the needs and sensibilities of the local culture.  While laws, rules and regulations vary widely, I found a common spirit of community and cooperation and commitment to building a fair and responsible industry.

2017-07-15 11.10.04

Nowhere did I witness more radical change in such a short time as Nevada.  It has not been too many years ago that possession of a seed or stem in the Silver State would get you 20 years, and trafficking could earn you life behind bars.  Today, Las Vegas is home to the biggest of the industry trade shows (though recently the Casino and Gaming Commission has discussed banning the legal cannabis industry from Casinos) and nearly 150 licensees grow, process and sell some very fine cannabis.

Screenshot 2017-09-03 09.27.11

The state passed its medical marijuana initiative in 2000, and its recreational initiative in 2016.  Adult use sales began on July 1st and since that time Nevada has outpaced the launch of both the Colorado and Washington markets.  With 42 million tourists visiting annually, Las Vegas is ground zero for the next wave of the legal market, heralding in the era of Commercialization and Normalization. Demand has challenged supply, overwhelming a short-lived monopoly by the alcohol distributors and causing major bottleneck. Pains of growth are inevitable and signs that legalization, once the exclusive province of the liberal West Coast, has now reached the mainstream. Las Vegas is where America (and the world) comes to play – and the players want their legal weed.

True to our mission to provide reliable business intelligence, professional networking and business opportunity to participants in legal cannabis, the Marijuana Business Association has decided to relocate its HQ to Las Vegas.  An ideal location to service the expanding national footprint of the MJBA, Las Vegas offers cheap and easy travel, amazing entertainment venues and one of the fastest-growing legal cannabis marketplaces in the world.   In addition to hosting meetups and professional education events, we will be in a better position to support our growing MJBA Chapters in Oregon, California and Washington, while simultaneously growing our presence on the East Coast – expanding MJBA New York and launching MJBA Boston.

MJBA is Amazing

We’re taking on new partners, and soon will be unveiling a more robust suite of member benefits, including meaningful discounts on the industry’s most important trade events and media opportunities, a new b2b technology platform, and exclusive members-only invitations. Stay tuned to this space!

 

 

 

 

Marapharm Wins Conditional Approval As Nevada Marijuana Distributor

NEVADA: The Nevada Department of Taxation, the main oversight body for marijuana in the state, conditionally approved Marapharm Ventures‘ application for a marijuana establishment distributor license, subject to vehicle and facility inspections.

This is the first award among multiple applications Marapharm submitted. The conditional approval means Mararpharm may proceed with purchase of vehicles with essential operating standards that include interior climate control to ensure the integrity of the products carried between licensees and security features to protect product, drivers, and the community during transit.

“Marapharm is one of the first marijuana businesses of more than 80 applicants to receive a conditional distribution license. This is great news.” Linda Sampson, Marapharm CEO