News

Tinley’s Products Receive Notice to Purchase from Ontario Cannabis Store for Expected April 2022 Release

The Tinley Beverage Company Inc. announced that the Company and its two Canadian licensed co-packers have now completed their submissions of the additional technical, marketing and training documentation requested by the Ontario Cannabis Store (OCS) following the issuance by the OCS on December 16, 2022, of a formal notice to purchase (“the Notice”). The Notice included the Canadian versions of the Company’s Cannabis Cup awardwinning Tinley’s ’27 TM Coconut Cask, branded in Canada as Tinleys ’27 TM Smooth Coconut, and its Tinley’s TonicsTM La Paloma ready-to-drink sparkling ‘mocktail’, to be produced in Canada as Tinley’s ClassicsTM Mystic DoveTM.

Neptune Wellness Extends Mood Ring Product Line with In-Demand Pre-rolls Launching in Ontario and Alberta

Neptune Wellness Solutions Inc., a diversified and fully integrated health and wellness company focused on plant-based, sustainable, and purpose-driven lifestyle brands, announced the launch of Mood Ring’s new cannabis preroll product line in Alberta and Ontario in late December. With the introduction of pre-rolls, Neptune now has an offering for every major cannabis product category in Canada. Mood Ring pre-rolls will initially be available in the popular Florida Citrus KushTM strain in 2 x 0.5 gram format, launching in Alberta and Ontario in January. In addition, Neptune will introduce several new Mood Ring product formats across Canada, including: Jack Flash Distillate Applicators across Alberta and Ontario, and Pure Kush Distillate Applicators in Alberta; Craft Golden Berry dried flower in Alberta, British Columbia, and Ontario; High THC Oil in Alberta; and THC/CBD Balanced Oil in Ontario. For more information, please visit https://moodring.com.

Health Canada Releases New Data on Cannabis Use in Canada

The Government of Canada takes a public health approach to cannabis regulation, which includes collecting data to better understand how Canadians view and use cannabis. In late December, Health Canada published the results of its 2021 Canadian Cannabis Survey (CCS). Health Canada has conducted the CCS every year since 2017. This is the fifth cycle of the survey. Data for the 2021 survey was collected from April to June 2021. Results of the CCS will be used to evaluate the impact of The Cannabis Act; inform policy and program development; and to advance effective public education and awareness activities. This important survey complements Health Canada’s other national substance use surveys, including the Canadian Alcohol and Drugs Survey and the Canadian Student Tobacco, Alcohol and Drugs Survey. Visit the Government of Canada’s website for more information.

Indiva Signs Exclusive Licensing and Manufacturing Agreement With Grön

Indiva Limited, the leading Canadian producer of cannabis edibles, is pleased to announce that it has entered into a Licensing and Manufacturing Agreement with Oregon-based Grön to bring its innovative and fun edibles brand portfolio to Canada. Following Indiva’s success producing and distributing the topselling chocolates and gummies in Canada, the launch of Grön products in Canada will expand its edible portfolio to include products with thoughtful, unique minor cannabinoid ratio combinations and form factors. The initial term of the agreement is for five years, automatically renewing for three additional five-year terms.

Canadian Analytical Laboratories Granted Licence to Conduct Analytical Testing for Psilocybin and Psilocin

Canadian Analytical Laboratories, a leading provider of analytical testing, method development, validation and research services to the regulated health and food products industries in Canada announced that the Company has been granted a licence from Health Canada to possess and conduct laboratory analysis for Psilocybin and Psilocin. This licence is an addendum to the company’s current Health Canada Controlled Substances License. Psilocybin (PB) and Psilocin (PC) are psychoactive or hallucinogenic indole alkaloids produced by numerous mushroom species that are also commonly referred to as “magic mushrooms”. Both substances are controlled under the Controlled Drugs and Substances Act (CDSA). According to Health Canada, “there is increasing interest in the potential therapeutic uses of psilocybin. At this time, there are no approved therapeutic products containing psilocybin in Canada”.

Entourage Health Enhances Cultivation Platform with Tissue Culture IP and Introduces New Genetics for Premium Adult-Use and Medical Product Lineup in 2022

Entourage Health Corp., a Canadian producer and distributor of award-winning cannabis products and brands, announced it has upgraded its cultivation platform to include a unique company-wide standardized system rooted in tissue culture propagation that is expected to drive commercial growth for premium products in 2022. Tissue culture propagation is widely recognized as a superior way of growing and preserving agricultural root health and has been primarily used across agricultural channels over the last 60 years. Entourage’s Guelph facility has developed a proprietary tissue culture program “SteadyStem Solutions” for the cannabis industry using biotechnology techniques aimed at plant cell growth in a clean, scientific-data driven environment. Its “Plant Empowerment” approach is a precision agriculture, datadriven philosophy based on environmental monitoring, integrated rootzone management, plant response data and KPIs focused on excellent donor stock that minimizes contamination, and promotes genetic integrity and the growth of vigorous, prolific plants. Visit www.entouragehealthcorp.com for more information.

Canopy Growth Divests Pharmaceutical C3 Cannabinoid Compound Company

Canopy Growth Corporation has entered into an agreement to divest its subsidiary business, C³ Cannabinoid Compound Company GmbH (C3), to Dermapharm Holding SE, a European pharmaceutical company headquartered in

Canopy Growth Issues Environmental, Social, and Governance Report

Canopy Growth Corporation announced the release of its Environmental, Social, and Governance (ESG) Report (“the Report”) for calendar year 2020, as well as qualitative details on some key activities that occurred in 2021. The Report recognizes Canopy’s current progress and describes its priorities and approach to ESG as part of its long-term path toward responsible and sustainable growth. “As the cannabis industry becomes more established, we recognize the role we must play to ensure that progress is achieved responsibly and sustainably,” said David Klein, CEO of Canopy Growth. Key highlights included conducting its first-ever baseline assessment of its Scope 1 and Scope 2 energy use and GHG emissions; invested more than $1 million in supporting record-clearing, wrap-around and ancillary services for people affected by the war on drugs; registered 23,000 patients for its Compassionate Pricing Program through Spectrum Therapeutics; hired its first Vice President of Diversity Equity & Inclusion in 2021 and established Employee Resource Groups representing Indigenous, Black and LGBTQ2S+ employees and employees living with disabilities; achieved near gender parity of women in its global workforce; trained 93% of Canopy Growth employees on its pharmacovigilance program; and recorded 0 safety-related product recalls globally.

Grünwald, Germany. The C³ business develops and manufactures pharmaceutical products and is consists of Spectrum Therapeutics GmbH, based in Neumarkt-in-der-Oberpfalz, Germany, THC Pharm GmbH The Health Concept, based in Frankfurt, Germany, and Spectrum Therapeutics Austria GmbH, based in Vienna, Austria. With the divesture of C³, Canopy Growth is continuing its evolution into a CPG-modelled organization and furthering its strategy of driving focus and consistent business across its core markets. The Company will continue to leverage its high-quality supply of Canadian cannabis products for the medical channel in its core international markets, including Germany, while also serving adultuse consumers in Canada. As a result of the divesture, Canopy Growth is expected to avoid future operational complexities associated with C³ and is significantly reducing short-term capital investment requirements.

Humble & Fume Inc. Enters Exclusive Sales Representation Agreement with Galaxie Brands Inc. for the Commercialization and Distribution of Wyld Cannabis Edibles in Canada

Humble & Fume Inc., a leading North American distributor of cannabis and cannabis accessories, announced that its subsidiary Humble+ Cannabis Solutions (“HCS”) has entered into an exclusive sales representation agreement with Galaxie Brands Corporation (“Galaxie”), a subsidiary of The Green Organic Dutchman Holdings Ltd. (“TGOD”) for the commercialization and distribution of Wyld cannabis edibles in Canada. Through the partnership with Galaxie, Humble will provide sales representation for Wyld cannabis edibles across the Canadian market, including generating new listings, trade marketing services, product education, and commercial planning support. Wyld’s much-anticipated launch into the Canadian market will expand Humble’s edible portfolio to include Wyld’s high-quality cannabis gummies, which are created using real fruit ingredients and natural flavours. Cannabis edibles continue to be one of the fastest-growing cannabis product segments in Canada.

High Tide to Acquire Fastendr™ Retail Kiosk and Smart Locker Technology Through Acquisition of Bud Room Inc.

High Tide Inc., a leading retail-focused cannabis company with brick-and-mortar as well as global e-commerce assets, is pleased to announce that it is taking yet another step to introduce innovative technology into both its brick-and-mortar retail cannabis operations, as well as third-party retailers, by entering into a definitive agreement pursuant to which High Tide will acquire 100% of the equity interest of Bud Room Inc., as well as assignments of the vendors’ shareholder loans, for CAD$3.6 million (the “Transaction“) and acquire all rights to the customized Fastendr™ retail kiosk and smart locker technology and Bud Room’s retail cannabis store located at 1910 St. Laurent Blvd in Ottawa, Ontario. Fastendr™ is a unique and fully automated technology that integrates retail kiosks and smart lockers to facilitate a better buying experience through browsing, ordering and pickup. The technology is a catalyst to faster transaction times, increased average basket size, lower overhead and labour costs, and provides a seamless end-to end customer experience.

Trees Corporation to Commence Trading on the NEO Exchange

Trees Corporation announced that the Company has received final approval to list its common shares on the Neo Exchange Inc. Trading is expected to commence at market open on January 11, 2022, under the symbol “TREE”. Trees is an independent retail cannabis operator that is deeply rooted in the cannabis community and has been a respected voice of advocacy for cannabis legalization. Through its trusted reputation, history and passion for the ‘plant’, Trees delivers a unique and authentic consumer experience. With 10 Trees branded storefronts in Canada, including six stores owned and operated in Ontario by Trees and four additional stores operated by 1015712 B.C. Ltd. (“101“) in British Columbia.

Canntab Delivers First Shipment to the Ontario Cannabis Store

Canntab Therapeutics Limited, the leading innovator in cannabinoid and terpene blends in hard pill form for therapeutic applications, provided an update on its recent product deliveries for Ontario and Australia. On January 7, 2022 Canntab completed its first shipment of 5 mg THC tablets to the Ontario Cannabis Store (“OCS”). Larry Latowsky, Chief Executive Officer of Canntab commented “Our initial delivery to the OCS is a first for us and marks the beginning of a productive and growing relationship. Our product will be available to all Ontario Cannabis stores for purchase in addition to being available for sale via the OCS website. We will support the sales and distribution of the Canntab brand with strong marketing materials and point of sale programs, engaging expert teams to educate all Ontario budtenders about the unique nature of Canntab’s products and its patented delivery system. We are encouraged as well with our future listing of CBD products which will ship to the OCS in early spring 2022.”

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Trends in Cannabis Packaging

By Moira Stein, Market Research and Consumer Insights at Berlin Packaging

The cannabis sector is one of the fastest-growing industries in Canada. According to The Brightfield Group, Canadian adult-use cannabis sales doubled in 2020 to reach $2.6 billion and are on track to grow another 60% from 2021. This growth is largely due to increased retail access, expansion in e-commerce and more competitive pricing. Brands are striving to improve the consumer experience and differentiate themselves from the competition. This, in turn, elevates the role of packaging in this fast-growing and ever-changing category. Unique regulatory approval and product usage requirements come into play when considering cannabis packaging and product and design trends. As the cannabis category continues to mature and evolve, the packaging solutions will also.

ACCESSIBILITY

Accessible and inclusive design is gaining traction across multiple categories, including the cannabis sector. Unilever recently introduced Degree Inclusive for consumers with disabilities, Procter & Gamble has added tactile markings for the visually impaired to some of its Herbal Essences products and Microsoft’s new Xbox adaptive controller packaging was redesigned for gamers with limited mobility. One in five Canadians live with a disability, and for cannabis and CBD consumers with common afflictions such as chronic pain and arthritis, easy-to-open and use packaging is essential in creating a positive user experience. THC- and CBD-based topicals require child-resistant packaging, which is often at odds with the needs of consumers suffering from pain in their hands, including seniors.

Berlin Packaging’s Studio One Eleven design and innovation division is creating unique cannabis packaging that explores new functionalities, allowing seniors to utilize the stronger parts of their hands, such as palms or power-grasp fist positions, rather than requiring fingertip actuation of small buttons to unlock. The packaging will also allow for larger text sizes (where possible) like the oil-dosing tincture, which will have measurements two-and-a-half times larger than those typically printed on glass stems.

SUSTAINABILITY

Today’s eco-conscious consumers are looking to purchase environmentally-friendly products. Cannabis users are especially interested in buying “greener” brands, as they are acutely aware of what they’re putting into their bodies and what they’re putting into the environment. They often support businesses that use responsible growing practices and sustainable packaging. Aqualitas received Canada’s first Clean Green Certification for its commitment to organic and sustainable cultivation methods. The Green Organic Dutchman is dedicated to eco-friendly packaging, using recyclable and reusable glass containers for its oils and flowers.

Other cannabis companies are utilizing aluminum packaging because of its high recycling rate. Biodegradable, compostable and paper-based packaging solutions are also growing in popularity. Cannasupplies, a division of Berlin Packaging, offers the GoZero pre-roll tube that is 100% compostable in industrial or municipal facilities. It is better for the environment while also protecting the product inside. With zero migration, zero odour and zero visibility, these air-tight tubes maintain freshness and meet regulatory requirements.

DOSING & DELIVERY

Effective cannabis packaging goes beyond just being regulatory compliant. It needs to address consumer usage habits and user experiences as well. Controlled dosing and mess-free application are essential for both medical and recreational products. Given some of the negative associations of cannabis and consumer skepticism, it is important that THC- and CBD-based products reassure consumers that they are getting the proper dosage to be both safe and effective. Two examples from Cannasupplies’ extensive product line include oil and extract dosing caps specifically designed for cannabis usage. Accurate and mess-free delivery systems create a better user experience and drive repeat purchases and brand loyalty.

Working with design partners and packaging suppliers that understand the unique product and market considerations for cannabis and CBD is key to a brand’s success. The future is ripe for innovation as these markets grow and evolve. Companies that turn the challenges into change have an opportunity to become category leaders.

Introducing The CRATIV PB (Plant Based) Packaging Line

In October 2021, CRATIV Solutions, Inc., a pioneer in sustainable, child-resistant packaging, launched its USDA Certified

BioPreferred packaging. The new earthfriendly packaging is designed and manufactured in North America using a proprietary blend of renewable, plant-based materials to meet the exacting standards of the cannabis, THC, CBD and hemp markets. CRATIV Packaging has committed to manufacturing only plant-based and accelerated degradation products, while honouring its commitment to reduce and discontinue traditional plastic manufacturing. “Products from CRATIV Solutions,

Inc. are contributing to an ever-expanding marketplace that adds value to renewable agriculture commodities, creates jobs in rural communities, and decreases our reliance on petroleum,” said Vernell Thompson, USDA Biopreferred Program Analyst. CRATIV PB (Plant Based) packaging standard offerings are in black, white and natural colours, while offering the availability for direct printing and custom colour options to enable flexible branding solutions. The new PB line has been engineered to enable pre-roll, edible and flower producers to find the perfect aesthetic and configuration to bring their products to market in a more sustainable packaging format. “CRATIV Earth” is our mission and we consider it our responsibility to be environmentally friendly with our actions and products. Our motto is “Our Planet, Our Home, Our Responsibility”. We take our responsibility seriously and are continuously sourcing innovative materials and processes which will reduce the burden of plastic generated by marijuana packaging”, said CEO and founder Bill Ludlow. “Our interests are in partnering with our customers to drive and take action with environmentally focused packaging rather than simply talk about what “could be” for the industry.” Cannasupplies is a proud preferred Canadian distributor of the CRATIV product line.

How Elevated Signals is Driving Sustainability and Innovation Forward

BY DAVID HALPERT

Why don’t you tell me a little about the company, how it got started? How long have you been in business? What were the circumstances surrounding the creation of the business?

Back in 2016, I was studying water engineering at UBC, and I started working with Tantalus Labs, a licensed producer based just outside Vancouver. Initially my goal was to find ways that technology could help address water usage issues that Tantalus might face with the space-aged greenhouse it was building. However, I quickly recognized that, in order for Tantalus to fully embrace digital transformation and data analytics, it needed a bespoke and comprehensive bio-product manufacturing technology solution that would go well beyond water efficiency. So my co-founders (Benn Mapes and Hardeep Shoker) and I began building out Elevated Signals to help address crop production and processing inefficiencies in the industry at large.

Most cannabis facilities were using legacy seed-to-sale software, paper, spreadsheets and whiteboards for inventory management and compliance back then (in fact most still are today!). This isn’t sustainable for mid- to large-size producers, let alone small facilities, so we set about creating a platform that would reform environmental monitoring, quality assurance and inventory tracking all in one, with data analytics and the scientific method at its core.

Fast forward a few years, our software is now used by some of the largest producers in North America, as well as many innovative mid-size and craft facilities across Canada, Europe and Australia.

What are the ways in which an LP facility is inefficient in the course of its daily operations?

The inefficiency we see most often is tedious and incomplete data collection. All producers recognize that efficient data gathering and evaluation are critical to becoming a successful organization, but the tech industry to date has failed to provide them with the tools to easily capture and analyze data. Without data to work with, decisions are made with good intentions but nearsightedness. Incomplete methods of data gathering result in scarce access to the information that can help improve cannabis businesses.

An example of inefficient data gathering is the paper-based quality system, which is common in the cannabis industry today. Teams utilize a manual and physical record keeping tool with inherent limitations regarding control, size, agility and access. At scale, this paper system can incur hundreds of thousands, if not millions of dollars in unnecessary labour, maintenance and other expenses.

Often this system is architected with a focus on compliance, when it should act as a data asset that can be leveraged to improve efficiencies, save money and increase performance across the business. What’s needed is a digital tool that captures information more efficiently, warehouses that data for the future, and provides immediate access to help inform sound business decisions.

What are common CTS challenges that a LP faces in the course of its daily operations? What are some challenges it may not take into account, and how are they solved with your platform?

The CTS challenges we typically see usually stem from inadequate data tracking and disorganized internal processes. Inventory tracking is often done with a myriad of complex tracker-style spreadsheets. This is extremely error prone, and takes a lot of time and effort to extract and coalesce the necessary information to complete a CTS report. Mistakes are bound to happen, and reconciling these inventory issues results in a cascade of corrections that need to be made on the final batch records and inventory ledgers. As facilities scale up, new manufacturing processes, as well as iterative changes to existing workflows (e.g. new processing methods, different intermediate or new final products), are challenging to implement because complex inventory tracking requirements will have compounding effects on what CTS data is collected.

With Elevated Signals, data entry is democratized across all production staff, meaning everyone can capture their work in real-time and operations teams at the shop-floor level are not overburdened with deluges of data entry. Internal audit trails provide the traceability and transparency required for any corrective inventory actions. Furthermore, our platform is a highly customizable and flexible system, so iterating on production processes can be done quickly, with real-time reports to help producers understand if they are tracking towards their internal KPIs. Since Elevated Signals captures all critical information surrounding inventory transactions (cultivation,

extraction, processing, etc.), our users have a “central source of truth” to surface required information to help complete CTS reports, as well as financial reporting. Ultimately this provides the necessary operational insights to help businesses make more informed decisions that are backed by data.

Why don’t you tell us how Elevated Signal’s seed-to-sale platform differs from other similar CTS technology?

The seed-to-sale software that was adopted by licensed producers back in the pre-legislation days is designed to only handle plant and production batch inventory transactions. Any of the supporting Health Canada quality assurance records or general manufacturing forms must be documented in a separate system, most commonly on paper and spreadsheets.

These two disconnected systems (seed-tosale + paper) result in producers spending massive amounts of time manually combining all of their paperwork into the final batch production record, which is required to be presented to Health Canada for health and safety compliance. In addition, all of this critical manufacturing process data is stranded in paper or siloed in disconnected digital systems. This greatly limits the ability of companies to analyze their own data to understand what is working well versus areas for improvement. In today’s competitive cannabis industry, if you aren’t getting better, you’re falling behind.

Elevated Signals drastically improves tracking cannabis and non-cannabis inventory from seed, through to harvest and processing, all the way to finished product. Our software makes traditional track-and-trace software and paper/spreadsheets obsolete within a facility. By enabling the granular tracking of biomass at each stage of transformation, we have made it possible for operating logs and critical quality assurance records to be captured without a single sheet of paper in a fully digital, remotely accannabis industry has a profound effect on the environment, and businesses in this space should be aware of the ecological impact of their processes.

We help LPs digitize their operations, and while going paperless will only have a small impact on a facility’s footprint in practical terms, it’s a step in the right direction, and surely a no-brainer. Digitizing operations enables a business to start adopting ‘lean manufacturing’, a production process that allows companies to figure out where resources can be optimized, helping them to maximize productivity while simultaneously minimizing waste. Even if paper-based methods were better for business (which, I think we’ve established, they’re not) they are wasteful and don’t provide any analytical insight into how a facility can reduce its environmental impact while increasing profits.

Where do you see the cannabis industry headed over the next three to five years?

In Canada, the market will become more and more competitive, and we’ll continue to see M&A activity and US brands entering Canada. Producers are really going to have to streamline their operational processes if they want to be profitable and resilient. With this in mind, I really hope businesses start to take a more data-led approach to decision-making. It’s scary how many producers are using guess work to guide their product and business strategy. For example, how many producers know what their most profitable cultivars are? This requires granular tracking of all costs associated with the manufacturing of a given batch - batch-specific costof-goods-sold remains elusive for most producers. Without real-time access to a thorough data warehouse holding information on everything from propagation and cultivation, through to final sale, it’s impossible to make the right decisions.

“Without data to work with, decisions are made with good intentions but nearsightedness.

Incomplete methods of data gathering result in scarce access to the information which

“can help improve cannabis businesses.

cessible framework. This allows the software to automatically generate chronological, GMP-validated electronic batch production records in seconds without any manual data aggregation or excessive data-entry tasks from production staff.

Producers also have the capability to integrate their existing environmental control systems, or deploy third-party sensors to associate time-stamped environmental data with the corresponding production batches. As this data is all captured digitally in real-time, producers can use it for historical performance analysis, yield forecasting and process optimization.

What are the ways Elevated Signal’s makes LP facilities more sustainable (e.g., less waste, less time, less energy, etc.)?

As a manufacturing and agricultural field, the Amar Singh is the CEO & Co-founder, Elevated Signals.

Five Benefits to Automating Your Cartridge Production

By Daniel Voci

Let’s face it, the shift from raw, unprocessed cannabis flower buds to cannabis vape cartridges is in full effect. According to data from Grandview Research, the market size value for cartridges is USD $7.43 billion, with a projected revenue forecast of USD $40.25 billion by 2028. Not only does the market indicate exponential growth but production-wise cannabis cartridges can make a significant profit for your business if production costs remain low and demand for products continues to increase. So, as the fastest-growing category of cannabis oil products, cartridges can be highly beneficial to add to your product lineup. Here’s why:

WHAT IS A CANNABIS CARTRIDGE?

First things first, cannabis cartridges are pre-filled with a gram or half-gram of cannabis oil. The oil contains various combinations of cannabinoids and terpenes extracted from cannabis. There are many different cartridges for you to choose from depending on your personal preference. The growing popularity began when consumers started to compare cartridges with other methods of consumption. Cartridges also seem to offer a safer, more convenient, and cleaner alternative.

EASE OF PRODUCTION (WITH THE PROPER EQUIPMENT)

With the proper equipment and processes, introducing cartridges to your production line and getting your new product on the market is relatively painless. The key is to invest in good equipment. Semi-automated production equipment allows your company to automate production while maintaining autonomy. This not only creates an efficient production line, but it provides the ability to support increased demands. Cannabis cartridges are also one of the fastest products to fill, cap and package during production because there’s essentially no wait time for the product itself. Once filled, it’s then ready to be packaged and sent for distribution; something that’s not always the case for other cannabis products such as gummies, balms or slaves, which take additional waiting time to solidify before the packaging process can begin.

PROFIT

Look at the prices around you. Half-gram oil cartridges can range from $20-$45 and a THC cartridge filled with one gram can cost anywhere from $15-$75. Consumers are happy to pay a larger price to cart refills as it offers them a more discrete and ‘safer’ alternative to consuming cannabis. Plus, with cost-effective equipment made to increase throughput, your number of units sold goes up and so does your profit. Now you have a product with low production costs and retail for a premium price. Not to mention it allows you to scale with demand.

The most suitable setup we suggest is the MonoBlox and MonoPress system which is designed to optimize production for fast oxidizing/leaking products. The system allows for quick capping of nine to 50 cartridges within 45 seconds. It also allows operators to start the capping process as the machine fills the remaining cartridges. They are significantly reducing the chances of oxidation or other quality issues.

LONGER SHELF LIFE

Are you thinking about selling your cartridges at a cannabis store? No problem, cannabis cartridges have a much longer shelf life than other products like cannabis flower, which loses its taste and odour over a period. In many cases, it depends on how the flower is dried and cured by the grower. However, when compared with vape pen cartridges, the taste and odour aren’t lost, no matter how long they are on the shelf. Also, if you’re planning to distribute your product to retail stores across the country there’s less of a worry as the quality of the product will remain intact, while other product types may require a shorter shelf-life window or specific temperature to stay solidified.

VARIETY IN YOUR PRODUCT TYPE Don’t be afraid to change it up! With the industry rapidly growing, new innovations are coming to the market all the time. Even with cartridges, there are ways to switch things up. Cannabis cartridges are available in a variety of cannabis strains. This allows you to customize your user experience based on your customers’ comfort level and preference. Plus, there are a ton of different types of hardware to choose from. While some are simpler, others may have unique features that allow for a more enhanced consumer experience. Similarly, your business has the flexibility to integrate brand colours and design elements that best suit your company and stand out in the market.

BROAD CONSUMER RANGE

With cannabis products becoming legal in more countries, the consumer base is growing and because cannabis cartridges are the most popular products on the market, now is the time to capitalize on them. Consumers are happy to pay a larger price for products that offer them a more discrete, safe and accessible alternative to consuming cannabis.

CONCLUSION

With the influx of demand in the cannabis market, bringing products to the market, fast and affordability is top of mind. Before starting your cartridge production, consider what equipment you’re using to ensure you’re getting the most out of your investment. Adapting semi-automation equipment into your production will help streamline your processes and create a more cost-effective tool for your operators.

Daniel Voci is the Marketing Manager for ATG Pharma.

How Label Management Software Helps Licensed Producers with Multiple Locations

By Doug Niemeyer

Licensed producers or wholesalers with multiple locations have unique cannabis labeling challenges and needs. When locations are spread across different cities or areas of the country, those challenges and needs are magnified. Better connections are paramount in a multi-location or vertically integrated cannabis labeling environment, so companies should carefully consider how label management software can create efficiencies, reduce complexities and waste, and set them up for long-term success.

SEPARATE NETWORKS WITH LARGE PHYSICAL DISTANCE BETWEEN THEM

Companies with a single location can enjoy the simplicity of a single network that serves the entire company, but multi-location companies don’t have this luxury. Multi-location IT teams manage a complex infrastructure of networks to make data and software available to the right people at the right time. Label management software alleviates this burden in three ways:

1. Browser-based printing interface: Print users access the label printing interface via a web browser, eliminating the need to install and manage software licences on multiple

PCs at different locations. A lighter software footprint frees up resources for other business needs. 2. Easy deployment and management of software licences: For users who need to design labels, the required software can be deployed from a central cloud-based administration command centre. The label management infrastructure and database are securely hosted in the cloud, while label design software can be deployed to local print stations. 3. Cloud-based label management: Today’s label management solutions are cloud-ready, providing built-in flexibility and scalability for multi-location or vertically integrated cannabis companies. Not only can the software be installed in the cloud, but label files and label data can be accessed from the cloud using the latest technology such as

OData and RESTful API.

COMPLEX LABELING NEEDS AND HIGH NUMBER OF PRINT USERS

Multi-location companies tend to have more complex labeling processes, which increase the opportunity for errors and label waste. They also often have a higher number of print users. Label print automation software takes the manual steps out of label printing. Using an existing business system – seed-to-sale software or Cannabis ERP system – label print jobs are automatically triggered. The business system contains all the label data and generates a text file or database record that generates the print request. Automating label printing eliminates human interaction with the labeling process, greatly reducing the risk of creating waste from labeling errors.

For many businesses, large portions of their labeling can be automated, but some processes still require a manual trigger. When a print user must interact with the labeling software, it should be as simple and straightforward as possible to reduce the risk of error and make their job quick and easy.

LABELING WITH VARIOUS REGULATIONS AND EMERGING STANDARDS

The cannabis industry is faced with strict labeling regulations for a variety of cannabis products, including plant-based, edibles, and oils, for both THC and CBD content. Label management software gives licensed producers or wholesalers the tools to efficiently design, manage, and print compliant recreational or medical cannabis for case, carton, and packaging needs.

Multi-location businesses already know the benefit of using label templates with variable data instead of individual label files to streamline processes. They may also be connecting database fields, automatically printing weight captured from a scale directly onto labels or leveraging RFID (Radio Frequency Identification) tags in cannabis cultivation facilities. Database connections can also be used to manage label translations or add legally required text to labels based on where the product is being distributed.

Compliant cannabis labeling is critical to get right, and mistakes can be costly. Multi-location label management requires an enforced label approval process, so non-approved or outdated labels aren’t available to be used by print users. Using enterprise label security and traceability software, multi-location companies can define their approval process, assign user roles, and maintain a record of every action taken. Version control allows you to easily roll back changes if necessary.

TEAMS WORK ACROSS MULTIPLE TIME ZONES With multiple locations comes the potential challenge of working across multiple time zones. If your label designer works in Vancouver, but your regulatory expert for Canada lives in Toronto, they may not always be able to synchronize for immediate label approval. The electronic label approval process ensures that an email will be waiting in the approver’s inbox the next morning. The approver can also log into the label management system to view approval tasks in one place.

Sometimes, the server and client of a label management system reside in different time zones. This can cause glitches in the label approval process and prevent users from checking out approved labels. An effective multi-location label management system converts all date and time stamps to Coordinated Universal Time (UTC) with offsets, enabling respect for all time zones.

Label management software is built to offer a variety of solutions to the challenges of multi-location labeling processes. By nature, it’s a flexible and configurable solution that can be molded to meet the labeling needs of any cannabis company that requires security, efficiency, and accuracy in labeling.

To learn more about label management or print automation solutions and how TEKLYNX helps companies in the cannabis industry streamline processes and reduce waste, visit teklynx.com.

Doug Niemeyer is the President and General Manager at TEKLYNX Americas.

A MATURING MARKET SOARS HIGHER: 2022 CANNABIS

INDUSTRY OUTLOOK By Jay Virdi

The Canadian cannabis market is expected to reach new heights in 2022, with rapid growth pushing the industry toward maturity and growing acceptance across the country. As of this writing, Canadian sales are projected to reach US$4 billion by the end of the year and monthly record sales of $319 million in June 2021.

While cannabis sales are exploding, there will be roadblocks, especially when it comes to insurance. Cyber coverage is expected to rise by at least 30% as the number of cyber risks cases explodes and more businesses seek coverage. Cannabis Property-Casualty coverage is also expected to rise 10- 20%, with larger increases for businesses in catastrophe-prone areas. Risk management has never been so important.

These trends will drive the industry in the coming year:

1. INSURANCE CAPACITY WILL REMAIN LIMITED

We are experiencing a textbook case of a “hard” insurance market: a period when there is a high demand for insurance but a low supply of coverage available. Most carriers providing support to the Canadian cannabis industry are based outside the country. As a result, capacity remains limited, which means some cannabis businesses may not be able to secure coverage. Unfortunately, this means cannabis companies will have to support their own risks longer than necessary. They may need guidance from their broker in coping with the risks of a fast-growing market still in its awkward adolescence.

2. MERGERS AND PARTNERSHIPS WILL LEAD TO GREATER RISKS

Despite growing sales, many cannabis operations are unprofitable. They may be looking for a way out, which may include considering acquisition or international partnerships. In fact, Canada had a record number of mergers and acquisitions in the first half of 2021 – more than double the number for the same period in 2020. And while at least two Canadian cannabis organizations have already earned EU Good Manufacturing Process (GMP) certifications, allowing them to participate in the European market, this process may or may not turn around a company’s fortunes.

Either solution comes with risk management issues. Organizations looking to merge or partner with other organizations must take proper risk management measures and secure appropriate insurance, including Reps & Warranties (R&W) and Directors & Officers (D&O) coverage.

3. THE EDIBLES MARKET WILL CONTINUE TO GROW

In the booming cannabis market, edibles sales topped $100 million in the first year, but that comprised only 4.2% of regulated sales. Edibles remain a huge area of potential growth. As both a cannabis product and a food product, edibles are in an awkward position: producers must follow food manufacturing regulations, while cannabis businesses may lack the experience to make edibles, resulting in manufacturing issues.

Many recalls in early 2021 were due to mould or incorrect labeling. At the same time, with regulations severely restricting the levels of THC in edibles, some users are turning away from edibles entirely. Moving into the edibles market shouldn’t be taken lightly. It requires strong risk management to minimize the risks. In the event of a major loss, product recall insurance and general liability can protect cannabis companies as well.

4. “FARM-GATE” SALES WILL CHANGE THE RETAIL MARKET

Several provinces are allowing licensed cannabis growers to sell their products directly to consumers, in a move many are calling “farm-gate.” These sales may create an opportunity for smaller growers to attract a larger base of support. Any grower or producer that opens a farm-gate operation should contact a broker to make sure it has appropriate coverage for a retail outlet, including product recall, cyber and crime insurance.

5. INCREASING CYBERCRIME HITS CANNABIS BUSINESSES HARD

Cannabis businesses are a veritable treasure trove when it comes to sensitive customer data. Whether it’s names and contact information or medical information, businesses are up against a rising tide of cyber attacks, with the average data breach costing more than $6 million. Protecting against the risks requires strong risk management protocols as well as proper cyber insurance coverage, no matter what side of the cannabis industry you cover.

6. OUTDOOR CULTIVATION CONTINUES TO CHALLENGE GROWERS

With climate change driving unpredictable weather patterns, such as heat waves in the western provinces, as well as flooding and drought across the country, outdoor cannabis cultivation is highly susceptible to failure. Cannabis businesses will be looking for special coverage, beyond the typical property insurance, equipment breakdown insurance or even crop insurance, to protect them from these risks. They may consider parametric insurance, which is designed to kick in after a certain parameter is met.

LOOKING AHEAD

In 2022, cannabis organizations will have to seek out appropriate coverage to protect them from disaster. They will be looking to their brokers and insurance professionals for guidance and best practices. In a rapidly evolving market, a broker with cannabis industry expertise can identify coverage options, advise on workplace safety and help point operations in the right direction.

Jay Virdi is Chief Sales Officer of Hub International’s cannabis specialty practice in the U.S. and Canada.

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Tether Survey Results: What Cannabis Brands Need to Know About Budtenders

By Katie Pringle

Budtenders are the face of cannabis retail, and they have a big job in the industry. They are the first point of contact to help guide consumers, no matter what stage of their cannabis journey. We look to budtenders to establish brand loyalty and act as the face of the cannabis industry. Tether, Canada’s budtender community created by Marigold PR, surveyed more than 300 budtenders across the country to learn more about who they are and what they’re looking for from brands, retailers and the industry. Through the survey and more than 70 in-person retail visits in multiple provinces, Tether got the opportunity to learn about budtenders’ career aspirations, their opinions on the industry as well as education preferences. From these insights, brands, marketers and sales agencies can better bridge the gap between budtenders and cannabis brand loyalty. “A sincere thank you to Canadian budtenders for trusting Tether with your thoughts and opinions, and for allowing us to get to know you better,” said Bridget Hoffer, CSO and Co-Founder of Tether and Marigold PR. Budtenders that participated in the survey were entered to win a free week of lunch for their team. Congratulations to our winner Shari and the team from Soul Rebel Cannabis in Scarborough.

Budtenders, at a glance: » 54% of respondents identify as female » 42% of budtenders surveyed were within the ages of 26-35, people 35+ represented 29% of respondents » 32% have been employed in cannabis retail for approximately two years, with 25% working in cannabis retail for 3-5 years » 50% have aspirations of career growth within the cannabis industry » 70% agree that there is a need for more in-depth

product and industry education » 88% of budtenders say they primarily learn through online research » 80% indicate product sampling is their preferred method of learning » 84% say that packaging is the industry’s key area for improvement » 62% state sustainability as one of their biggest concerns » 80% want to connect and build community with other budtenders

BUDTENDERS WANT: EDUCATION THROUGH EXPERIENCE

While online research is beneficial and currently the top way budtenders source their information, their preferred way of learning is through experience. More than 70% of budtenders agree there is a need for improved educational opportunities for cannabis retail staff.

Budtenders’ preferred means of learning is through sampling and 82% feel they could benefit from sommelier and sampling sessions that allow them to pair personal experience with education and product experts. Other activities that rated high with budtenders include cultivation tours and education sessions.

Brand ambassador visits are resonating with 60% of budtenders whereas popups, often targeted at consumers, scored lowest in terms of budtender impact and preference. The combination of personal experience and deep product knowledge empowers budtenders to enhance the customer experience.

BUDTENDERS WANT: INDUSTRY ADVANCEMENT & IMPROVEMENT Budtenders care about the cannabis industry and should be considered a motivated talent pool. More than 50%

of budtenders are looking to advance their career within the cannabis space and 25% of budtenders hope to progress into retail management or ownership.

Packaging and sustainability are primary concerns for the budtenders surveyed. Budtenders want to see a more eco-friendly future for cannabis, using materials like hemp plastic and glass that are biodegradable and recyclable. Budtenders want to see changes to the packaging regulations and status quo to make them more easily digestible and accessible for consumers.

One of the most frequent complaints Tether heard in cannabis stores is the lack of clear content marking for beverages, stating that ratios are unclear and confusing to read for even the most experienced budtenders. With a hunger for product knowledge and a genuine fire lit under them to advance their careers in cannabis, budtenders have a desire to become more involved in the industry.

BUDTENDERS WANT: COMMUNITY ENGAGEMENT

While many budtenders are offered internal team- building opportunities, more than half say they want to be able to learn and connect with each other and budtenders from surrounding locations and neighbouring retailers. Some budtenders in the locations Tether visited were candid about heavy market saturation, making the industry feel competitive as opposed to collaborative and welcoming.

The Tether summer launch event in Edmonton is a great example of the deep need and interest in community connection. Tether events create a space for budtenders to network, learn from each other, and have a great time. They also provide a compliant opportunity to feature and promote brands.

Tether, backed by the award-winning cannabis-focused PR firm Marigold PR, is celebrating the contribution of budtenders during the inaugural Budtender Appreciation Week, March 21-25, 2022. B-Week aims to engage budtenders across the country through customized virtual and in-person brand and partner activations.

Tether has a full calendar, aiming to create memorable experiences for budtenders throughout 2022 and beyond. Learn more about the budtender survey and upcoming events at tetherbuds.com.

THE FUTURE OF RETAIL: HOW PAYMENT INNOVATIONS WILL HAVE A BIG ROLE TO PLAY

By Shakir Tayabali

We live in a time of great innovation and change, especially when it comes to the retail industry. It’s now more competitive than ever, with ecommerce giants like Amazon continuing to grow and dominate the market.

The internet has changed how we shop, and technologies like contactless payments have made shopping more convenient than ever before. In particular, payment innovations have been changing the way consumers pay for goods and services. As a result, retailers need to stay on top of emerging trends to maintain their competitive edge.

This article will explore the future of payment technologies and what it means for you as a cannabis retailer. What is the future of payment solutions?

1. Shift Towards Digital Payments

Nowadays, most consumers love to shop online and hate carrying cash with them. This trend only grew larger with the COVID-19 pandemic accelerating the cashless transactions trend with stayat-home orders prompting people to tap into the world of ecommerce. However, if they do decide to visit a physical store, they expect a quick and painless transaction. This is why your business must offer a digital payment solution in addition to cash.

Payment methods such as cash and cheques are cumbersome and require an effort to use, but the digitization of payments through digital wallets makes it more convenient for both merchants and customers. An innovative payment solution for your business may include a mobile app or QR code that allows customers to pay in store, online or through mobile-based payments.

2. Increased Popularity of Mobile Wallets

Almost everyone carries a phone with them nowadays, sometimes even leaving their wallets at home. And since customers prefer convenience, mobile payments are now generating billions of dollars in revenue each year. Simply put, mobile payments are any payments made with a mobile phone, be it through an ecommerce site or an app. With widespread acceptance of mobile payments now available, it’s no wonder there’s 53%1 faster growth on mobile devices versus desktop computers.

Mobile wallets (Apple Pay® or Samsung Pay, for example) are an innovation that allows customers to pay using a credit or debit card. Making a purchase is now increasingly easy and convenient. It’s also secure, as the app stores this information by linking personal identification such as number, key, QR code or image of the owner to each card.

As a business, the use of these wallets can help you collect data on customers’ shopping habits and preferences so that you can tailor your promotions individually. Besides, mobile wallets prompt their owners to spend money in one tap, which could potentially increase sales.

3. Biometric Payments

While speed and ease of use are more popular considerations when deciding on a payment solution, security should be on the top of your list. Introducing biometric payments! Exceptionally secure payments leveraging new technology from popular consumer devices. Many customers are already engaged in biometric technology without even realizing it. Consumers are now used to biometric authentication, as most mobile devices use face ID or fingerprint to unlock themselves.

Similarly, this payment technology uses biometric authentication methods to identify the user and to authorize deductions from their bank account. A majority of mobile payments now leverage biometric technology through either a face or fingerprint scan. When it comes to biometric payment methods, most POS (point-of-sale) systems incorporate two-factor authentication, meaning you will have to scan your finger as well as put in a PIN, just as you would with a normal credit card.

4. Prepaid Cards

A prepaid card is a payment method similar to a debit card, as you load a certain amount of money on it, but it is not linked to a specific financial institution. Customers can use these cards when shopping at major retailers or even when they’re paying bills. Prepaid cards are a good way for customers to save money by only buying the products they need and are also often used when shopping online because they are convenient and cost-effective.

So why should you accept prepaid cards? For businesses, accepting prepaid cards can be easy. There’s often no additional hardware or software required to accept them. Major card brands usually issue them; the process may even look similar to accepting credit/debit cards - you might already have this set up with your payment provider.

Prepaid cards are an integral part of the future of commerce. They’re a flexible and effective way to improve customer experience while capturing new customers who may not want to have a debit or credit card. After all, it’s best to provide as many payment options as possible.

5. Virtual Cards

Virtual payment cards are the holy grail of online transactions. They act just like traditional debit or credit cards; without the need for an actual physical card, these virtual randomly-generated 16-digit numbers are accepted anywhere traditional cards are accepted.

Companies love cashless transactions, since they are easier to manage. Virtual payments eliminate the need for paper money and coins, which reduces the time they spend counting the cash and collecting change. Cashier errors and theft are also eliminated with this method of payment. More importantly, it improves customer satisfaction, as it offers another way for them to pay at your store.

6. IoT Devices

With Internet of Things (IoT) devices continuously growing, our already connected world is becoming more integrated: the most tangible trend is the expansion of payment acceptance networks. This means that smartphones or tablets are not the only potential purchasing tool in the eyes of the consumer - every device is.

Today’s consumer expects to make purchases wherever they are and whenever they want. This expectation, tied in with the feeling of familiarity of shopping using mobile or voice-activated devices, created an expectation that even your fridge should be able to deliver your groceries. With this in mind, it’s important for businesses to stay agile and utilize Internet of Things devices to your advantage.

Bottom Line

In the next decade, we will see more and more payment innovations. As a result, the future of payment solutions is rapidly changing. To keep up in the retail space, you will need to expand your payment solutions into next-gen capabilities that will include biometric authentication, mobile payments and contextual awareness.

We are the industry experts for all things payments in the cannabis sector. For more information, email us at marketing@merrco.com.

Shakir Tayabali is the EVP of Sales for Merrco Payments. 1Global Commerce Unbound. https://usa.visa. com/visa-everywhere/innovation/innovations-for-a-cashless-world.html

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Five Cannabis Expenses and How They Affect Working Capital

By Joshua Reynolds

Canadian cannabis is in a state right now, and though some may be experiencing the growth and revenue they dreamed of, many are fighting to stay alive. Either way, both sides are suffering from working capital issues. How could a company doing well with revenue not have working capital to survive, you ask? Let’s look at five reasons why working capital in Canadian cannabis is in such turmoil.

Unpaid invoices: This one is first up as it has been widely discussed, publicly and privately, among C-suites. Sales teams have been working extra hard to move the oversupply of flower onto LPs, with processing and sales amendments, converting it to products for distribution to the boards. Price compression has resulted in flower of various qualities being sold at discount prices. The LPs, short on the capital needed to pay upfront, have requested terms. Invoices start aging, and before you know it, term dates pass and invoices remain unpaid.

Additionally, joint ventures with flowthrough agreements are on the rise, which are pay-on-paid agreements. For example, a processor sells to the OCS, waits for 60 days to get paid, then pays the cultivator 1030 days later, meaning the cultivator could be waiting 70 - 120 days after the product ships to get paid.

Pay-on-paid agreements are necessary, but they cripple a company’s working capital.

Unforeseen Logistics Costs: The decimated global supply chain has led to cannabis companies having difficulty getting packaging, hardware for vapes or even cones for pre-rolls, let alone at prices that conform with the committed sale prices of the delivered product. Every company strives to buy in bulk for discounted prices to fulfill forecasted growth. In reality, most don’t have the working capital to buy in the large quantity required to offset the unforeseen additional logistics cost.

Events that catch businesses off-guard can be devastating. If you were in British Columbia in October 2021, you know how bad the flooding was and how difficult it was to deliver your goods to the BC Board.

Price Reductions or Return to Vendor: Provincial boards run the show and have “super” creditor status. This means that if your delivered product is sitting on the shelves and is on the verge of expiry or there is a current oversupply, they can, with notice, adjust the pricing or send it back.

If adjusted pricing occurs, it is reflected as a credit on the next payable invoice. We have seen amounts that have come close to exceeding the total value of the due invoice. Any payment shortfall will hamper your working capital forecasts and cause a cascading effect on the accounts payable you need to settle.

Rapid Growth: Wait, what? Yes, this can be a severe problem. Perhaps you’ve heard the term “growing out of business”. You and your team create a phenomenal product and deliver it to the boards, and it sells out in hours. Reorders occur immediately, which you may not have been prepared for, causing a scramble to fulfill the additional request. Now you have two complete orders shipped, along with all of the associated costs to one or multiple boards that still demand the same payment terms from you. These extra operational costs will also strain working capital that could take months to recoup. Excise Tax: This has been the most dominant cannabis conversation over the last few years. Social media avenues have daily posts on the burdens of this cost. Many are advocating for changes to the excise tax implemented by the Cannabis Act but without certainty of when and if changes will come.

For the time being, companies have to figure out ways to survive and thrive, given the current tax regime. The good news, so far, is that the Canada Revenue Agency (CRA) has been willing to work with companies, large and small, to get through the outstanding balances. The CRA has not forgiven any amounts owing that we are aware of but have also not revoked excise tax renewal letters or closed down operations. They want to get paid, and the only way that happens is for business to proceed and for working capital to continue flowing.

All five of these working capital crunches will be solved by a reputable cannabis asset-based financing company that is also focused on the community supporting it. CapitalNow Cannabis consists of experts who collect money and help you avoid late or non-payment. In addition to understanding logistic delays and how to help you prepare for them, we also conduct inventory analysis to help you mitigate the price reduction and return-to-vendor risks and avoid unexpected sales setbacks. We know how to stop you from “growing out of business,” and we deeply understand the tax burdens cannabis operators like you face and aren’t afraid to help you and your team weather that storm. We help our clients solve these problems every day; feel free to reach out to us if you think we could help you.