MJBiz Magazine March 2022 by MJBiz Daily

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Pathways to Reform All three branches of the U.S. government have the power to influence cannabis law. Which will be first to cross the finish line?

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March Table of Contents

From the Editor COVER STORY

PATHWAYS TO REFORM

All three branches of the U.S. government have the power to influence cannabis law. Which will be first to cross the finish line?

Q&A With Beena Goldenberg

Hemp Notebook

Company News

Industry Developments

Industry Players

Unboxed

Our Advertisers

MARCH 2022

Seed to CEO

M AGA Z I N E VOLUME 9 • ISSUE 3 • $12.95

Pathways to Reform All three branches of the U.S. government have the power to influence cannabis law. Which will be first to cross the finish line?

On Our Cover Graphic artist Katie Ruland created the illustration for this month’s cover package, drawing inspiration from popular board games to symbolize the possible routes to marijuana reform.

4 March 2022 | MJBizMagazine

Organigramʼs product line Shred includes flower and gummies. Read about CEO Beena Goldbergʼs vision for the company on page 10.

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MJBizMagazine March 2022 Volume 9 • Issue 3

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FROM THE EDITOR Kate Lavin

Joining the Game in Progress How to create change when authorities say, ‘Do not pass go’

peaking on the main stage at MJBizCon 2021, cannabis lobbyist Saphira Galoob pointed out that expecting dramatic federal change to happen all at once is futile. Instead, she said, there are many possible pathways to marijuana reform. MJBizDaily graphic designer Katie Ruland breathed life into that idea for this month’s cover (see the full illustration on page 28). The future of cannabis regulation, like many board games, includes a variety of twists and turns, characters and outcomes. Of course, marijuana reform is not a game—especially for medical cannabis patients and those serving prison terms for drug-related crimes. But as you will see in the cover package, written by Omar Sacirbey, Jeff Smith and John Schroyer, many decision-makers in Washington DC do seem to view marijuana reform as a game of political one-upmanship. From prohibiting legislation from reaching the Senate floor to potentially stripping the SAFE Banking Act from a must-pass defense bill so their legislation can be considered first, federal lawmakers have engaged in shady tactics that do little to further the wishes of the American public.

Time to Take Responsibility

According to the Pew Research Center in Washington DC, 91% of Americans want to see medical marijuana legalized nationwide,

8 March 2022 | MJBizMagazine

and 60% of U.S. adults are in favor of legalizing recreational marijuana. So, what is the holdup? As evidenced by the 2018 U.S. Farm Bill, which inadvertently legalized delta-8 THC, an intoxicating cannabinoid derived from hemp, lawmakers should proceed with caution when regulating marijuana. But that is no excuse for stalling progress to become the face of marijuana reform. While no one is claiming responsibility for removing SAFE Banking from legislation passed in December, someone did it, and cannabis companies are paying the price.

The Road Less Traveled

If elected officials aren’t acting fast enough, other avenues exist to achieve marijuana reform, although those present their own challenges. Rescheduling marijuana through the U.S. Drug Enforcement Administration, for example, could be a boon to well-capitalized medical research businesses. But it would do little to solve the challenges facing state-legal marijuana companies and might even make their operations more difficult. Arguing for an end to prohibition through the legal system is another option, although the U.S. Supreme Court has indicated that administrative avenues such as petitioning the DEA must be exhausted before the justices will hear such a case. The avenues to achieve real

From prohibiting legislation from reaching the Senate floor to potentially stripping the SAFE Banking Act from a must-pass defense bill so their legislation can be considered first, federal lawmakers have engaged in shady tactics that do little to further the wishes of the American public. change are plentiful and overlapping. This month’s cover package takes a nuanced view at the most likely pathways for issues such as banking, decriminalization, veterans’ access to cannabis and more. Familiarize yourself with the various actions currently taking place. That way, when reform does arrive, your business can be a winner.

Kate Lavin is the editor of MJBizMagazine. Reach her at kate.lavin@ mjbizdaily.com.

FIVE QUESTIONS with Beena Goldenberg

Growing MJ Sales Organically Organigram CEO talks future expansion and the value cannabis market By Matt Lamers

rganigram is among a handful of large Canadian cannabis producers that managed to grow their share of the country’s cannabis market in 2021 via nondilutive, organic sales growth. Organigram isn’t profitable yet, but that might change in the coming months. In January, the company signaled it would turn a profit by mid-2022, three months earlier than previously expected, with an assist from its recent purchase of Quebec cannabis producer Laurentian Organic. MJBizDaily spoke with Goldenberg about a range of topics, including her recent foray into the M&A market to purchase Laurentian in a deal worth at least $27.8 million (CA$36 million).

What is your vision for Organigram? Our goal is delighting our consumers with our brands by introducing innovative products that are insights-driven. This is basic (consumer packaged goods), CPG 101. Start there, make sure you’re delivering on those experiences, build your brand, build your product portfolio—and then, as the markets legalize around the world, see how we can expand into those markets. We’ve seen some of our competitors try to establish foundations in the U.S. market.

10 March 2022 | MJBizMagazine

sales), because if your cost structure isn’t right, and you can’t make money at it, it’s a lot of work for nothing. We have spent a lot of time and drove efficiencies in our operations so that we can sell at these more compressed prices and still make money.

Beena Goldenberg

I can’t say we’re not looking, but we’re looking (to be) as much of a (cannabis) pure play as we can. We’re sort of biding our time. We don’t think legalization (in the U.S.) is happening as quickly as people were predicting.

Organigram is handily beating rivals in market share, especially in the value segment. How? We haven’t shied away from that value segment, and we have a very strong brand in Shred. We believe you have to meet consumers at every price point, and there are a lot of consumers who are interested in buying the highestTHC products at the price point that they’re looking for. Our Shred brand meets that. It brings people from the illicit market into the legal market. I think our competitors have shied away from (low-cost, high-volume

Three years into legalization, no large license holder has held on to its market share. How do you plan to hold on to yours? It’s about consistently delighting our consumers. So, bringing new products, innovation, staying on the forefront, making sure it’s not getting old, making sure your quality is always there. I’ve been in consumer packaged goods for my whole career, and if you deliver on consumer expectations, they come back. Brands build over time. It takes a long time to build brand equity.

Organigram made an additional investment in Hyasynth Biologicals. Why? This is really about our commitment to biosynthesis. The opportunity isn’t tomorrow, but it’s in the future: being able to use biosynthesis to get rare cannabinoids in their purest form. We took another investment in this company because we really think that they have strong IP (intellectual property) in terms of scaling-up of this technology.

FIVE QUESTIONS

“I’ve been in consumer packaged goods for my whole career, and if you deliver on consumer expectations, they come back.” (We) focus on R&D and the development of products—not just for today but for the future and trying to get ahead of it.

How do you direct company resources to address future opportunities overseas relative to opportunities in Canada today? Our short-term focus has been in Canada to strengthen

the foundation we operate here. We saw opportunity with this Laurentian acquisition to strengthen our position in Quebec. But from there, we’re constantly monitoring what’s going on in different markets around the world. We’re watching Germany closely to see what happens there. We’ve heard positive messages out of Japan regarding CBD.

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Matt Lamers is the international editor at MJBizDaily. You can reach him at matt.lamers@ mjbizdaily.com.

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HEMP NOTEBOOK Kristen Nichols

Too Little, Too Late New COVID-19 studies underscore the ongoing problems with cannabis research

xciting news hit the hemp industry just in time for the second anniversary of the COVID-19 pandemic. A group of studies suggested that cannabinoids in the hemp plant (both real and synthetic) might offer some protection against the virus that causes COVID-19. The studies underscored the therapeutic potential of cannabis extracts and gave CBD entrepreneurs some clinical studies to back up reams of anecdotal data showing that the plant has medicinal value. But they also highlighted the insanity of barriers to research higher-THC varieties of cannabis.

ROADBLOCKS REMAIN There’s been no shortage of lip service from the U.S. government about researching cannabis. Regulators have been saying

for decades that we don’t know enough about the plant’s therapeutic value. Those same regulators have done precious little to allow that to change, though. After decades of limiting research to varieties grown by the University of Mississippi, the U.S. Drug Enforcement Administration said in December that it would allow “a number” of additional organizations to grow cannabis for medical research. It only took a global pandemic and more than two decades of private businesses bootstrapping their own research in violation of federal drug law. So, the federal warming to cannabis research strikes me as too little, too late. One of the lead researchers on CBD and COVID-19, Oregon State University’s Richard van Breemen,

“The studies underscored the therapeutic potential of cannabis extracts and gave CBD entrepreneurs some clinical studies to back up reams of anecdotal data showing that the plant has medicinal value.”

said his researchers wanted to explore THC acids, too—but they couldn’t because of legal red tape. Ridiculous. Oregon has allowed recreational cannabis use since 2014. But public universities such as Oregon State still must comply with arcane federal laws regarding academic research. That means the smartest minds in science aren’t bothering to look at the whole plant, which could contain real medicine, all because of stupid government bureaucracy.

MISSED OPPORTUNITIES I’m not naïve enough to argue that pigheaded resistance to cannabis research has extended the COVID-19 pandemic. But who knows how much farther along we’d be exploring cannabinoid therapies if the government was not so restrictive about cannabis research, all in the name of “protecting” society? Even as we celebrate the CBD research coming out of Oregon State University and the University of Waterloo, let’s pause to consider what other illnesses we could be treating if global drug regulators weren’t so damn slow to embrace marijuana research.

Kristen Nichols is the editor of Hemp Industry Daily. She can be reached at kristen.nichols@ hempindustrydaily.com.

12 March 2022 | MJBizMagazine

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COMPANY NEWS U.S., Canada & International by MJBizDaily & Hemp Industry Daily Staff U.S. DEVELOPMENTS Verano Eyes Three Markets With $413M Acquisition

Chicago-based multistate operator Verano Holdings signed a definitive agreement to acquire Goodness Growth Holdings for roughly $413 million, a move that will enable the cannabis multistate operator to expand into Minnesota, New Mexico and New York. The deal, which also includes operations in Arizona and Maryland, positions Verano to expand in several new and emerging recreational marijuana markets. Under the terms of the agreement, Verano will issue 0.22652 shares for each Goodness Growth share and 22.652 shares for each Goodness Growth super voting share. When the acquisition is completed, Verano’s operational footprint will span 15 states and include 1.3 million square feet of cultivation capacity as well as 111 retail outlets.

Cannabis REIT Cancels $300 Million Notes Offering San Diego-based cannabis real estate investment trust (REIT) Innovative Industrial Properties canceled a senior note offering to raise an aggregate principal amount of $300 million. Innovative Industrial Properties (IIP) announced the offering on Feb. 1, but three days later, the company said it would not proceed with the issue “due to market conditions.”

14 March 2022 | MJBizMagazine

IIPR does seem to have underperformed both its peer group and MSOS ETF year-to-date. The REIT is down more than 25% versus a decline of only about 10% for its peers. Still, Viridian Capital Advisors believes the reintroduction of the SAFE Banking Act is primarily to blame. Renewed hope of banking reform spiked the MSOS ETF index upward by more than 10%.

Silver Spike Aims to Raise $125 Million

Silver Spike Investment Corp. announced plans to raise $125 million through an initial public stock offering and use the proceeds to make loans or equity investments in “middle-market” cannabis companies. The specialty finance company expects to list on the Nasdaq and be managed by New York-based Silver Spike Capital. Silver Spike Investment plans to sell approximately 8.9 million shares at $14 per share, with an option to sell about 1.3 million additional shares.

Trulieve Closes on Final Slice of $425M Raise

Multistate operator Trulieve Cannabis said it closed on a private placement offering of $75 million, the second tranche of a marijuana industry-record $425 million debt raise. The senior secured notes, due in 2026, carry an annual interest rate of 8%, which is among the lowest for the cannabis industry. The notes have the same terms as the

first tranche of $350 million, which closed in October. Florida-based Trulieve said it intends to use the proceeds for capital expenditures and other corporate purposes.

Leafly Closes SPAC Merger, Goes Public on Nasdaq

Cannabis commerce platform Leafly Holdings started trading on the public stock markets after completing its previously announced merger with special purpose acquisition company Merida Merger Corp. I in early February. Seattle-based Leafly is trading on the Nasdaq under the ticker symbol LFLY. Merida Merger, sponsored by New York-based Merida Capital Holdings, adopted the Leafly name and is no longer trading as MCMJ.

Creso Pharma Enters U.S. Markets With $21 Million Acquisition

Australian marijuana producer Creso Pharma is the latest company entering the United States via a CBD maker. Creso Pharma announced that it is buying Sierra Sage Herbs in an all-stock deal worth $21 million. Based in Lyons, Colorado, Sierra Sage Herbs makes a range of wellness products, including some with CBD. The company, which produces the Green Goo and Southern Butter CBD brands, has distribution in more than 110,000 outlets nationwide, including Walmart and CVS Pharmacy locations. The $21 million deal also includes the potential for future stock payouts in 2022 and 2023 if Sierra Sage Herbs hits certain revenue targets.

COMPANY NEWS U.S., Canada & International

GB Sciences Exits Cannabis Cultivation with Sale of Las Vegas Site

Las Vegas-based GB Sciences is leaving the cannabis cultivation space to pursue further interests in the biopharmaceutical industry. The company closed the sale of its only remaining cultivation facility in Las Vegas for $8 million. Proceeds from the sale include $1.2 million in cash, $3.8 million in immediate debt and liabilities reduction and a $3 million interest-bearing note payable to GB Sciences by the buyer over a three-year term.

The sale was contingent on GB transferring its marijuana production and extraction licenses to AJE Management, per a Nevada Cannabis Compliance Board mandate. Andrea Small-Howard, president and chief science officer at GB Sciences, confirmed in an email to MJBizDaily that the company remains in the medical cannabis business, but its focus is on pharmaceutical products.

CBD Extraction Company Sells for $120 Million

Icanic Brands, a Canadian firm that offers marijuana products in

California and Nevada, announced the acquisition of Leef Holdings, a California extraction company, for $120 million. Leef Holdings extracts and distributes CBD concentrates in Willits, California. The company also has an edibles production line. Under the terms of the agreement, Icanic will acquire all of Leef’s stock for at least $120 million or more based on Leef’s revenue. The acquisition, expected to be completed before March 31, is subject to approvals by regulators and Leef shareholders.

COMPANY NEWS CANADIAN & INTERNATIONAL DEVELOPMENTS Canadian Beverage Maker Wraps $21 Million Acquisition

BevCanna, a Canadian maker of white-label CBD beverages and Keef Brands THC drinks, completed its $21 million all-stock acquisition of Toronto-based Embark Health, a solventless extraction company. BevCanna Chief Financial Officer John Campbell said the acquisition includes $11 million in equipment, an extraction facility in Delta, British Columbia, and majority ownership of ProteinQuest.

Little Green Pharma to ‘Demerge’ Unit

Australian cannabis producer Little Green Pharma says it

plans to “demerge” the ownership of its psychedelics unit, Reset Mind Sciences, so the respective companies can pursue their strategies as independent businesses. A spokesperson for Little Green Pharma (LGP) said the move is essentially a spinoff, and LGP will not retain any financial interest in the psychedelics company. LGP entered the psychedelics space in late 2020.

Investor Seeks to Oust Most of Hexo’s Board

An activist shareholder of Canadian cannabis producer Hexo Corp. is pushing to replace the majority of the company’s board, alleging

the board was “grossly remiss” in approving “destructive financings,” according to a news release. Adam Arviv owns approximately 2% of Hexo, the news release noted, and has been “waging a battle” with Hexo management since it acquired competing Canadian producer Redecan for $730 million (CA$925 million) in 2021. Have a company announcement you want us to consider? Send a news release or general information to editorial@mjbizdaily.com. (Note: We’re looking for news about expansions, financing, deals, partnerships and similar developments, not product announcements.)

INDUSTRY DEVELOPMENTS National & International

INDUSTRY DEVELOPMENTS

National & International News

Tom Vilsack

and verify the carbon and greenhouse gas benefits associated with those practices. • Develop markets and promote the resulting climate-smart commodities. Applications will be taken in two groups, sorted by the size of the proposals. Deadlines are: • April 8 for the first funding pool (proposals from $5 million to $100 million). • May 27 for the second funding pool (proposals from $250,000 to $4,999,999).

Hemp Businesses Might Qualify for Climate-Smart Funding, Ag Secretary Says Hemp was lauded as a climatesmart commodity for its use as a construction material by U.S. Agriculture Secretary Tom Vilsack as he highlighted new funding opportunities for farmers. Speaking at a university in Missouri on Feb. 7, Vilsack pointed to hemp when he announced that the U.S. Department of Agriculture will invest $1 billion in climatesmart commodities. The new Partnerships for ClimateSmart Commodities fund will go to farmers, ranchers and forest landowners who use climate-smart practices, Vilsack said. The USDA defines a climate-smart commodity as a commodity crop produced using practices that reduce greenhouse gas emissions or sequester carbon. The USDA’s Commodity Credit Corp. will be used to fund pilot projects and provide incentives to: • Implement climate-smart production practices, activities and systems on working lands. • Measure or quantify, monitor

cannabis products into line with those produced domestically. One of the most meaningful changes involves imported medical cannabis products, which currently don’t have to adhere to the same strict quality production requirements as locally made versions. The companies importing the goods, known as sponsors, will have to maintain evidence to show compliance for each batch of medical cannabis products they import. The government has pledged an unspecified “reasonable” transition period so companies can adapt to the new requirements.

New Australian Cannabis Import Rules Could Leave Non-GMP Producers Cold Australia’s Department of Health, preparing to overhaul its medical marijuana regulations, is poised to require that all products imported into the country’s small but growing cannabis market be produced in accordance with Good Manufacturing Practice (GMP). The government currently requires Australian medical cannabis manufacturers to comply with GMP standards. However, a similar requirement does not apply to products imported into Australia. The move would effectively shut out non-GMP-compliant manufacturers operating overseas by bringing production rules governing imported medical

Legal Marijuana Has Added $34.2B to Canada’s GDP, Report Says Canada’s regulated cannabis industry contributed $34.2 billion (CA$43.5 billion) to the country’s gross domestic product between recreational marijuana legalization in 2018 and 2021, according to a new report. That estimate by the Deloitte consultancy calculated $3.5 billion of direct GDP contributions as well as $11.9 billion in tax revenue, not including licensing fees or revenue from government wholesalers.

mjbizdaily.com | March 2022 19

INDUSTRY DEVELOPMENTS State by State

WA MT

MN ID

DE MD VA

TN AR

SC MS

OH WV

RI PA

LA FL

■ Medical ■ Recreational HI

State News

Note: This map does not include states that have legalized only CBD-based oils.

Alaska The U.S. Department of Agriculture approved a new hemp-production program in Alaska. Current hemp permit holders must apply for new licenses. Alaska Agriculture Division Director David Schade said hemp holds economic promise for the state. “The goal is diversification of Alaska’s economy with the addition of a new crop for our farmers,” he said in a news release. “Industrial hemp is one crop where Alaska is not years behind the Lower 48 in development.”

Arizona A lawsuit that attempted to keep coveted social equity marijuana business licenses in Arizona out of the hands of big companies has been dismissed, with the presiding judge ruling that state regulators have acted in keeping with the law. The suit was filed in November by the Greater Phoenix Urban League and social equity company Acre 41. A spokesperson for the plaintiffs said in a news release that a second suit might be filed in the coming months. Acre 41 Principal Celeste Rodriguez said that unless the applicant pool is culled to include only “true social equity applicants”—and not those backed by multistate operators—her group would file a second suit and identify MSO-connected applicants by name. 20 March 2022 | MJBizMagazine

INDUSTRY DEVELOPMENTS

Arkansas A Black-owned company in Arkansas filed suit against state medical marijuana regulators and other officials, alleging that it was discriminated against during the dispensary licensing process because of its owner’s race. The lawsuit filed by Little Rock-based dispensary applicant Absolute Essence accuses the state Medical Marijuana Commission of applying its own rules differently to Black-owned companies compared with other license applicants, tainting the entire licensing process.

California Assembly member Thurston Smith of San Bernardino introduced a bill to recriminalize unlicensed cannabis cultivation, making it a felony to grow more than six plants without a permit. Smith said he introduced the bill to combat the enormous illegal grow operations that have cropped up across the state in recent years. Currently, misdemeanors are punishable by a maximum of one year in jail and a $1,000 fine—though first-time violators usually are only fined—while felonies are punishable by 16 months to three years in jail.

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INDUSTRY DEVELOPMENTS State by State Connecticut Regulators opened the window in February to social equity applicants seeking to build and operate cannabis cultivation facilities totaling up to 250,000 square feet as part of the state’s upcoming adult-use market. But there’s a catch: The licensing fee is $3 million. The hefty fee sticks out in a social equity program that otherwise is considered one of the best in the country in terms of promoting greater participation among minority entrepreneurs and individuals affected by the war on drugs. It also is believed to be by far the highest fee social equity applicants face in the U.S. marijuana industry.

Illinois The state Supreme Court denied a request to allow regulators to license the winners of craft marijuana cultivation licenses, which means the process is halted until pending lawsuits are settled. According to state law, Illinois was required to issue up to 60 new craft cultivation cannabis licenses by Dec. 21, but at least 13 applicants sued when they were denied permits. This summer, the state awarded the first 40 craft grower licenses before the court prohibition took effect, so those will still be issued. Meanwhile, another 185 new adult-use retail licenses are stuck in limbo as lawsuits proceed in that sector.

INDUSTRY DEVELOPMENTS Maine The Aroostook Band of Micmacs are testing hemp as a phytoremediator to clean up 600 polluted acres of land. The tribe regained the land in 2009, when the U.S. government turned over the former Loring Air Force Base to the tribe, but the soil was so polluted that it was categorized as a federal Superfund site. Many of the toxins have since been removed, but there are still concerning toxicity levels in the soil and water. A research group planted several small plots of industrial hemp fiber varieties in the polluted soil and found that concentrations decreased in the hemp plots, while chemicals accumulated in hemp plant tissue. A larger hemp crop is planned for this summer.

Minnesota State medical cannabis stores will be able to sell dried marijuana flower starting March 1. Having the product on store shelves likely will provide a more affordable option to customers and could financially bolster the state’s MMJ program. The smokable-flower provision was part of an omnibus health bill that Minnesota lawmakers passed last year. At the time, supporters of the change said the existing products, including cannabis oil, were too expensive. Some forms of marijuana edibles are expected to be added to the program in August.

INDUSTRY DEVELOPMENTS State by State Mississippi Gov. Tate Reeves signed medical marijuana legislation into law, making Mississippi the 39th state to legalize MMJ. The law is effective immediately, and the market could launch before year-end. The bill passed by lawmakers is more restrictive than what voters approved at the ballot box in 2020, before the Mississippi Supreme Court voided that measure on a technicality. The law signed by Reeves includes a potency cap of 30% THC for flower and 60% for concentrates, oils and tinctures. There is no limit on the number of business licenses, but municipalities can choose to opt out.

Montana Federal regulators approved a hemp-production plan in Montana, which has been one of the largest producers since the hemp pilot program launched under the 2014 Farm Bill. The state licensed 37 producers who planted 2,540 acres in 2021. According to the state hemp program, the majority of the planted acres were for grain (1,700 acres), followed by fiber (590 acres) and CBD (250 acres). About 2,000 acres of hemp were produced on tribal lands in Montana in 2021. Applications for outdoor producers are due to the Montana Department of Agriculture by May 30.

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INDUSTRY DEVELOPMENTS New Mexico Marijuana companies now may grow double the number of plants they were previously allowed. Regulators filed an emergency rule to meet demand under the recreational market expected to launch this spring. It can take four to six months to grow a plant, then cure and dry it for consumption. “Doubling the plant count for licensed producers makes sense to ensure that everyone can maximize the benefits of a thriving cannabis industry,” Kristen Thomson, the new director of the state’s marijuana regulatory agency, said in a news release.

North Dakota One effort to place a recreational marijuana initiative on the North Dakota ballot in November has failed, but a separate drive is being contemplated. The group behind the failed initiative was able to collect only 19,500 of the 31,164 verified signatures needed to put the adult-use question to voters. Matt Schweich, deputy director of the Marijuana Policy Project, told MJBizDaily that his Washington, DC-based organization is exploring the possibility of a separate 2022 adult-use cannabis initiative in North Dakota.

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INDUSTRY DEVELOPMENTS State by State Ohio A campaign to legalize recreational marijuana in Ohio has succeeded in getting its proposal sent to the Legislature, the next step before a ballot question goes to voters in November. According to a news release from the Coalition to Regulate Marijuana Like Alcohol (CRMLA), the campaign was informed by the secretary of state that it had cleared the threshold for the necessary signatures to force lawmakers to consider its amendment to the state constitution to legalize adult-use sales. Next comes a four-month process in which state lawmakers will have the opportunity to consider the CRMLA’s proposal. If the Legislature doesn’t approve the measure, then the CRMLA will have to collect 132,877 more voter signatures to get recreational marijuana legalization onto the November general election ballot.

Oklahoma A state legislator is proposing a measure to place a moratorium on new medical marijuana licenses until regulators can confirm that existing operators are in full compliance with the law. The proposed measure is the latest example of some Oklahoma lawmakers trying to rein in one of the most business-friendly marijuana markets in the country. Another lawmaker recently filed legislation to increase local control over cultivation licensing, curbing the number of growers in the state.

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INDUSTRY DEVELOPMENTS South Dakota The state issued its first three medical marijuana dispensary permits. But with no corresponding cultivation or processing licenses awarded, it’s unclear when sales might begin. The state health department said it continues to process business applications but did not provide a timeline for more approvals. In 2020, South Dakota became the first market where voters approved both medical and recreational marijuana during the same election, but the state’s highest court struck down the adult-use program on technical grounds.

Virginia Lawmakers filed a flurry of bills that would make critical changes to the recreational marijuana law enacted last year. Proposed changes include moving up the retail sales launch from 2024 and slashing the overall tax rate from 21% to 10%, according to the Associated Press. The original law earmarked 30% of tax revenue from retail sales for a fund that would reinvest in communities affected by the war on drugs, but two lawmakers have proposed legislation to funnel the money away from reinvestment. The Virginia Minority Cannabis Coalition is one of several advocates that say eliminating equity funding is a “slap in the face” to the effort to ensure the adult-use industry is equitable and inclusive. Note: Entries sourced from MJBizDaily, Hemp Industry Daily and other international, national and local news outlets. These developments occurred before this magazine’s publication deadline, so some situations might have changed.

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Pathways to Reform

Roll the dice and watch cannabis regulatory STATES change REFORM unfold!

RESCHEDULING MARIJUANA

ACT

SAFE BANKING ACT

28 March 2022 | MJBizMagazine

CHALLENGE IN THE COURTS

MORE ACT

4/20 Will U.S. Senate Majority Leader Chuck Schumer introduce his legalization bill?

CANNABIS ADMINISTRATION AND OPPORTUNITY ACT

Potential for

By Omar Sacirbey

Change

All three branches of the U.S. government have the power to reform cannabis law. Which will be first to cross the finish line?

omething’s going What that environment to give, and soon. will look like depends That’s the forecast on what pathway reform from many cannabis takes. In the following industry observers for pages, MJBizMagazine federal marijuana reform. explores the three The real question is how. likeliest pathways to “I think we’ll see some reform—and what each substantial reform before one would mean for Steve Hawkins the midterms and certainly marijuana business before this Congress is out,” executives: predicted Steve Hawkins, executive • An act of Congress. director of the U.S. Cannabis Council • Executive decision or rescheduling. (USCC). He said he was “very optimistic” • Legal challenges through that there were enough votes in both the courts. chambers of Congress to at least While each pathway leads to reform, pass banking reform. “There’s strong the consequences for cannabis consensus for banking and potentially businesses will be significantly some other measures—either through different. appropriations or tax relief.” If Hawkins is right, at this time Congressional Action next year, marijuana businesses Hands-down, the most preferred path will be operating in an environment to reform is through Congress, where substantially different than what exists lawmakers have several bills to consider. today. That is, an environment where Some legislation aims at comprehensive there should be legal and regulatory reform and goes as far as establishing consistency—at least to some degree. a taxed and regulated market, while

30 March 2022 | MJBizMagazine

Most cannabis executives agree that federal marijuana legalization is still years away. But incremental changes such as passage of the SAFE Banking Act could come sooner—and greatly improve the way marijuana companies do business. Reform could take one of many directions, including: • Members of Congress seem more willing than ever to compromise on cannabis reform. Some previously introduced legislation would offer veterans access to medical marijuana and provide states with funds for conviction-expungement efforts. • Rescheduling marijuana from Schedule 1—reserved for highly addictive drugs with no medical value—to Schedule 2 or lower could open the doorway to federally approved medical research. Such a move would likely prompt the government to increase the number of cultivation licenses approved by the U.S. Drug Enforcement Administration and potentially clear a path to market for cannabis-derived medicines. • Several court cases intended to strike down federal marijuana were lost on technicalities in recent years. But many attorneys believe a successful case is possible by exhausting other administrative avenues and making the right argument.

Welcome to the FUTURE…

other bills shoot for incremental gains, such as the SAFE Banking Act, which would allow financial institutions to serve state-legal marijuana businesses without fear of federal reprisal. “This is a question for Congress. It’s a nuanced question of congressional detail. There needs to be a regulatory system set up. There needs to be a taxation structure and a place for where that tax money goes,” said Andrew Freedman, executive director of the Coalition for Cannabis Policy, Education and Regulation in Washington DC. When it comes to reform through Congress, the preferred result is a comprehensive bill that calls for federal legalization—but many advocates are willing to move in increments. “The USCC has as its top priority to see comprehensive reform happen in Congress. That said, we recognize that Congress might very well take up various aspects of the cannabis industry and the needs of the industry in steps,” Hawkins said. Those steps could focus on banking, Section 280E relief and expungement. “It would not be uncommon for Congress to address cannabis like it has other issues, in a step-by-step approach. We certainly are engaged in comprehensive reform but also looking at where there are opportunities for incremental victories,” Hawkins said. Not all cannabis leaders, however, share Hawkins’ optimism. “I know our government won’t legalize (through Congress) for some time,” said Albert Gutierrez, CEO of MedPharm, a Colorado company with a U.S. Drug Enforcement Administration license allowing it to conduct cannabis research. “There’s too much tax money involved.”

Courts and Rescheduling Another potential pathway is through the courts. Several legal challenges to the federal government’s cannabis

32 March 2022 | MJBizMagazine

Andrew Freedman

prohibition have failed for various reasons. But some lawyers still believe victory through the justice system is possible. Other cannabis executives believe reform could happen by rescheduling marijuana as a Schedule 2 drug or even lower. Such a move would require action from numerous federal agencies—most notably the DEA and the U.S. Food and Drug Administration. Both federal agencies have been anything but cannabis-friendly. But some industry executives believe several factors point to rescheduling happening before congressional reform, including: • U.S. support for cannabis rescheduling at the United Nations. • The DEA awarding a limited number of licenses allowing companies to grow cannabis for federally approved research. • Congressional foot-dragging on cannabis reform. “The government has indicated by authorizing us and some other folks that they’re trying to start to set up a federal regimen that is compliant with all the rules: the whole DEA rules, the state rules,” said Joe Grzyb, CEO of Groff North America, a cannabis cultivation company in Pennsylvania that holds a DEA grow license. “How what the DEA and FDA have done now merges with the state programs is still a good question.”

Adam Goers

Albert Gutierrez

Respecting the States Whatever pathway is taken, reform success will be contingent on federal authorities not overreaching, according to Adam Goers, senior vice president of corporate affairs at New York-based Columbia Care, a multistate cannabis operator. “It’s the states that have the most rational policy, and it’s the feds that need to catch up,” Goers said. “If the feds think that they’re running in to save the day, they’re ignoring the fact that most states in the country already have a state-licensed medical and or adult-use cannabis operation going.”

Omar Sacirbey is a reporter for MJBizMagazine. You can reach him at omar. sacirbey@mjbizdaily.com.

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BEYOND LIGHT

Progress by Cannabis lobbyists believe incremental steps are the most likely path to change

hile not impossible, comprehensive marijuana reform that includes federal legalization of the plant in the form of one bill would be a politically heavy lift in today’s divisive Congress. So it’s important to focus on the most politically palatable and plausible ways to make progress, said Saphira Galoob, principal and CEO of The Liaison Group, a cannabis lobbying firm in Washington DC. “I think legalization is more of a process than a moment,” Galoob said. “It’s not that I’m against comprehensive reform. I just don’t think it’s going to happen in Washington in one fell swoop—and I don’t believe we will only have one bite at the apple, where every issue surrounding legalization gets resolved at once.” She advocates creating a pathway to legalization through a “sequencing,” or more incremental, approach that invokes authority within both the Biden administration and Congress. For Galoob and other veteran lobbyists, several incremental measures offer the best opportunity for passage this year: • Cannabis banking reform such as the SAFE Banking Act would enable financial institutions to serve state-legal marijuana businesses

34 March 2022 | MJBizMagazine

Degrees By Jeff Smith

without fear of federal reprisal. The legislation could be attached to a must-pass spending measure or other authorizing bill, such as the America COMPETES Act/U.S. Innovation and Competition Act. • The Medical Marijuana Research Act is a bipartisan effort to expedite research into cannabis. • The HOPE Act would direct funds to states for cannabis convictionexpungement efforts. Unlikely allies in the U.S. House—Ohio Republican David Joyce and New York Democrat Alexandria Ocasio-Cortez—introduced the measure. • A bill such as the Veterans Equal Access Act of 2021 would allow Veterans Administration doctors to provide medical marijuana recommendations to former military service members. Lobbyists agreed these incremental measures are more likely to pass than a wide-ranging federal legalization effort. “What’s at stake if we don’t take the right pathway, if we are unrealistic with our political and advocacy strategy and get nothing?” Galoob asked. The result could be that individuals continue to languish in prison, social equity programs will not have the financial institutions in place to

Saphira Galoob

support their chance to succeed, and there will be further delays in reforms needed to help marijuana businesses access capital, banking services and equal treatment in terms of taxation, she said. Taking the wrong pathway also will delay federal investments in communities and individuals hurt by the war on drugs, she said.

The Bucket Approach Galoob sees cannabis reform efforts as sitting in distinct buckets. One bucket contains the various measures that would legalize

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marijuana and, over time, create a national marketplace. Many comprehensive measures already are on the table, including the social justice-focused MORE Act, which the U.S. House of Representatives has passed before. At press time, Senate Majority Leader Chuck Schumer and fellow Senate Democrats Cory Booker of New Jersey and Ron Wyden of Oregon were continuing to work on a sweeping, comprehensive measure called the Cannabis Administration and Opportunity Act (CAOA). The bill is expected to be unveiled in April. The second bucket contains reforms needed by state-legal cannabis businesses because marijuana is federally illegal, Galoob said. That includes the SAFE Banking Act and eliminating the application of Section 280E, the provision of the IRS tax code that prevents cannabis companies from taking standard business deductions. “There are politics, policies and personalities in each of those buckets,” Galoob said. “Each of those live on very distinct political and legislative thoroughfares and pathways.” The questions one needs to ask, Galoob said, are: • What is the political landscape that we are faced with now, and how do we drive the opportunity through that landscape? • What is the terrain between now and November, and how should we be marching given the players and the politics and what else Congress is dealing with?

Cannabis Banking The SAFE Banking Act is the measure that would help cash-dependent marijuana businesses the most. Galoob said she believes that passing SAFE Banking is a realistic goal for this year and would help create momentum for further reform by “letting the

36 March 2022 | MJBizMagazine

Cory Booker

any marijuana legislation needed to include provisions to correct America’s failed war on drugs, although he later told Yahoo Finance that he supported SAFE Banking and saw its potential to be the “sweetener” to get moderates on board with equitable justice reform.

SAFE a ‘Viable’ Stand-alone

Chuck Schumer

economics of the industry influence public policy.” SAFE Banking was stripped out of a defense budget bill last year but was recently revived and attached to a federal technology and innovation spending bill that was passed by the House on Feb. 4. But it’s unclear whether SAFE Banking will pass the full Congress. One hitch: Schumer and Booker have made it clear they first want their comprehensive marijuana bill to be considered in the Senate, even though it’s believed to be extremely unlikely the two could muster the 60 votes needed for passage. That led some industry insiders to conclude the senators were responsible for stripping SAFE Banking out of the recent defense budget bill. In fact, Booker said last year that

Steve Hawkins, president and CEO of the U.S. Cannabis Council, sees similar reform pathways as Galoob. Hawkins said what has happened to SAFE Banking so far in the 2021-22 congressional session is “part of the dance” and not uncommon when congressional leaders have bills they want to get first consideration. “There are various legislative agendas,” Hawkins said. “But I’m confident that when the smoke clears, we’ll get a chance to get (SAFE Banking) to the Senate floor.” Hawkins noted that SAFE Banking has 40 Senate co-sponsors, including nine Republicans. “I think it’s definitely viable as a stand-alone” measure, Hawkins said, if it doesn’t pass as an attachment to another bill. U.S. House Rep. Ed Perlmutter, a Colorado Democrat who announced he will not run for reelection, has been the biggest champion of SAFE Banking over the years and has pledged to get it across the finish line before he leaves Congress.

The HOPE Act Hawkins indicated the HOPE Act might offer the equitable justice provisions that Schumer, Booker and other progressives want but which currently aren’t included in the SAFE Banking bill. The fact that U.S. Reps. OcasioCortez and Joyce teamed up to introduce the measure in the House is seen as indicative of the broad support the bill could get.

In addition to giving money to states to help them administer expungements of cannabis offenses, HOPE would require states to report about the impacts of marijuana prohibition on communities and individuals. “It’s a pretty powerful tool in advancing criminal justice,” Hawkins said of the legislation.

A Long Time Coming For marijuana businesses, frustration is growing over the lack of progress on Capitol Hill. Rachel Gillette, head of the new cannabis industry group at the Denverbased law firm Holland & Hart, said she was a “little offended by the kind of horse trading” that resulted in the SAFE Banking measure coming out of the defense spending bill.

Rachel Gillette

“I’m really disappointed because I think (SAFE Banking) is such a necessary concept for cannabis businesses to exist in the modern world.” Gillette said cash control is one of the biggest issues her clients deal with, and it seems as if everyone would be better served—the federal government included—if state-legal marijuana businesses could access traditional financial services.

The current situation “creates this tremendous safety issue for a multibillion-dollar industry,” she said. Cannabis businesses fortunate enough to get bank accounts pay exorbitant fees as high as $15,000 to move money between the accounts, she said. “I don’t think people recognize how expensive (cannabis) banking is,” she said. Gillette added that she just wants some progress in federal marijuana reform to be made in Congress. “At this point, I think I’ll take anything,” she said. Jeff Smith covers government and regulatory issues for MJBizDaily. Reach him at jeff.smith@ mjbizdaily.com.

mjbizdaily.com | March 2022 37

Rescheduling

Roulette By Omar Sacirbey

he absurdity of federal marijuana policy in the United States is perhaps best symbolized by the placement of cannabis on Schedule 1 of the Controlled Substances Act, according to industry observers. Schedule 1 is reserved for drugs considered highly addictive and having no medicinal value. By comparison, cocaine is listed on Schedule 2, implying the U.S. Drug Enforcement Administration considers the drug less dangerous and less likely to be abused than marijuana. Cannabis advocates have objected to the designation since the Controlled Substances Act was first published in 1971.

Shifting Directions Rescheduling marijuana from Schedule 1 to something lower was, until recently, viewed as the most likely path to legalization. But that was before the recent wave of support for marijuana reform in Congress, where pro-legalization sentiment has never been greater. It was also before the federal government’s attempt at hemp regulation, primarily through the 2018 Farm Bill, which many stakeholders say has resulted in confusion over how CBD and other cannabinoids can be used. This has fueled the assertion held by some industry observers that federal involvement in marijuana regulation is bound to make matters worse.

38 March 2022 | MJBizMagazine

The pros and cons of moving cannabis from Schedule 1 on the list of controlled substances

Heather Hatcher

“I think we can get a hint of how well this might go from the 2018 Farm Bill,” said Heather Hatcher, a North Carolinabased regulatory scientist with the law firm Womble Bond Dickinson, where she advises attorneys on regulatory matters related to the DEA and U.S. Food and Drug Administration. “It’s a bit of a hot mess.” (See “Liquid Gold” in the February 2022 issue of MJBizMagazine to learn how the 2018 U.S. Farm Bill created a legal loophole for delta-8 THC and other unregulated, intoxicating cannabinoids.)

What Would Change Now, with reform efforts squarely focused on Congress, rescheduling is on the back burner. That’s just fine with most cannabis industry executives and advocates, who view Congress as the preferred path to legalization and who see several potential pitfalls with rescheduling.

“Our position is that cannabis should be descheduled. It should not be treated as a controlled substance,” said Steve Hawkins, executive director of the U.S. Cannabis Council in Washington DC. “With the current political atmosphere, we believe strongly that there are opportunities in this Congress for substantial cannabis reform and that any talk of rescheduling would be taking away from the mission and not matching where the political winds are at this time.” Nonetheless, some cannabis executives believe that rescheduling is more likely to happen than congressional legalization, and they see it unleashing a wave of new opportunities for pharmaceutical companies and state-licensed marijuana businesses. “Schedule 2 would drive hospital systems and the VA (Department of Veterans Affairs Medical Centers) to make it available. We truly believe it would be a new paradigm,” said Dr. Steven Groff, founder and chair of Dallastown, Pennsylvania-based Groff North America, one of a handful of entities in the United States with a DEA license for growing marijuana that can be sold to businesses, universities and other organizations conducting federally approved research involving cannabis. “How the state medical folks do in this paradigm is still a question, but I think that there are grand opportunities for them to do very well.”

Steve Groff

Rescheduling would open a lot of these opportunities, and it can be done in a way that wouldn’t undermine the existing state markets, Groff added.

A Question of Timing One key reason Groff believes rescheduling will happen before Congress legalizes a marijuana market is the U.S. vote at the United Nations in 2020 to drop medical cannabis from a category of the world’s most dangerous drugs. By supporting the change to the international scheduling regimen, the U.S. made it possible to reschedule cannabis domestically without violating international drug treaties. “We think that the Schedule 2 step is most likely in the United States, because the U.S. was behind it internationally and supported a Schedule 2 equivalent in the International Narcotics Control Board,” Groff said. “The U.S., by supporting rescheduling at the U.N. level, says it believes that there is medical use of cannabis. And we think the follow-through will be marijuana becoming Schedule 2 in the U.S.,” he said, adding that rescheduling would be a multiyear endeavor. Another impetus behind the DEA and FDA’s desire to reschedule marijuana, Groff said, is Congress’ failure—in his view—to effectively regulate hemp. As a result, the rules governing how CBD and other cannabinoids can be used are confusing, giving rise to problems such as the unregulated manufacturing and retailing of delta-8 THC. “The federal government (has) a real desire to take these powerful chemicals—both CBD and THC—and make sure that they’re handled properly for public safety,” Groff said. “The federal government, I think, in general recognizes that this current situation with CBD is really a bit of a Wild West show. … And I don’t think they’re particularly excited about repeating that same Wild West show with THC-containing compounds.

40 March 2022 | MJBizMagazine

“That said, I think there’s a real desire to get this material out into the medical community as quickly as possible but in more of a controlled way than just completely descheduling it.”

Rescheduling Upshots While considered a long shot, marijuana rescheduling would have several potential impacts, such as access to more capital investment. The most positive and evident effect would be felt in cannabis-related research. Rescheduling marijuana would make it easier for businesses to receive federal approval to conduct research involving the plant and its derivatives. “We believe that rescheduling will make research easier. There’s less restrictions, somewhat less rigor in receiving approval to do research” with Schedule 2 drugs, Groff explained. Albert Gutierrez, CEO of MedPharm, a Colorado company with a DEA license allowing it to conduct cannabis research, noted that rescheduling would mean more companies applying for Schedule 2 licenses so they could conduct studies on proprietary formulations. Such studies could likely be carried out only by well-heeled companies with the deep pockets to pay for the research. “With this new paradigm, we believe that MSOs can take their favorite formulations and then start moving those formulations in a federally legal way through the FDA approval process,” Groff said of multistate operators.

Rescheduling would also allow physicians to discuss cannabis with their patients and offer it as a treatment “rather than the situation now, where most physicians are fearful of even mentioning it because they could risk their own personal DEA registration,” said Groff, a physician who is certified in Pennsylvania to recommend medical marijuana to patients.

Rescheduling Downsides Rescheduling skeptics acknowledge research benefits but point out that rescheduling also has many potential drawbacks. For one thing, moving cannabis to Schedule 2 would not eliminate Section 280E of the federal tax code. That would happen only if the plant was moved to Schedule 3 or lower. Meanwhile, Adam Goers, vice president at multistate operator Columbia Care, said rescheduling would not solve the “huge dichotomy between state and federal law.” “Just because the federal government decides to reschedule through the executive department’s administrative action, it’s not going to change the way that New York or Georgia or Florida are going to do their programs,” Goers said. “To be successful, any rescheduling effort would have to recognize the work that states have done to move this forward.” What would ignoring the states look like? Mandating marijuana prescriptions for patients rather than giving recommendations that enable them to buy the drug, as is currently the case in states with legal medical cannabis markets. “We need to make sure that how rescheduling happens isn’t a boon for the illicit market, like we’ve seen through the ambiguity of the Farm Bill and what that means for delta-8 products,” Goers said. “The answer isn’t to make everything go through double-blind drug trials and put it under an FDA rubric.”

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Court Fight By John Schroyer

Legal action could spur marijuana reform

any cannabis industry observers have pinned their hopes for federal marijuana legalization on an act of Congress or even an executive order from the president. But there’s another option: legal challenges through the U.S. court system. Although no lawsuit has yet succeeded in forcing the U.S. Drug Enforcement Administration to move cannabis from Schedule 1 on the list of controlled substances, that doesn’t mean it won’t happen, according to attorneys who have attempted to advance marijuana reform through the judiciary. “It could totally be done in the courts,” said Texas-based attorney Matthew Zorn, who tried to force the DEA to hold a hearing on rescheduling marijuana but lost on a technicality. Zorn was representing cannabis researcher Dr. Sue Sisley, who has been trying for years to launch clinical trials to study the medical effects of marijuana on patients. The case—originally filed in 2020 as a petition with the Ninth Circuit Court of Appeals—was met with defeat in 2021, when the court ruled the plaintiffs failed to “exhaust administrative remedies,” Zorn said. In other words, the court said Sisley should have begun by petitioning the DEA directly to request that marijuana be rescheduled.

42 March 2022 | MJBizMagazine

Matthew Zorn

of legal cases that tried to overturn the federal government’s marijuana prohibition.

Supreme Effort

Dr. Sue Sisley

“Nobody has ever managed to put together all the pieces at once, which is: having legal standing, exhausting administrative remedies and then making the right argument,” Zorn said, noting there have been a number

Washington v. Barr, a multiyear lawsuit that began in summer 2017, sought to fully legalize marijuana by having the courts proclaim its Schedule 1 status unconstitutional. That case failed when the U.S. Supreme Court declined to take it up in 2020, after the plaintiffs had lost in the lower federal courts. Judges cited the same technicality: The plaintiffs did not first ask the DEA to change its mind. “We took a look at the history of efforts to reschedule cannabis, and each of those efforts took seven to nine years,” said New York City attorney Lauren Rudick, one of a team of lawyers at Hiller PC who spent years on the Washington case. Rudick said her team went straight to the courts because their plaintiffs were medical cannabis patients who didn’t have the time and money to wait for the DEA to say no before filing a lawsuit. But that doesn’t mean the same tactic couldn’t be successful, Rudick said. “For every Loving v. Virginia—the case that legalized interracial marriage—or Brown v. Board of Education—which

desegregated schools—there were scores of cases that came before them. It was a buildup,” Rudick said, arguing that the cultural stigma attached to marijuana has been one of the main hurdles faced by cannabis lawyers.

Recipe for Success The issue, both attorneys said, is a combination of finding the right plaintiffs and the right team of lawyers, all of whom are dedicated enough to spend a decade or more working for court victories. “Resources are huge. We took on the Washington case pro bono. It was millions of dollars in legal fees,” Rudick said. “This is a monopolizing effort for a firm. It could easily put a small firm out of business, this type of litigation. Especially when you have the weight of the (U.S. Department of Justice) against you, and they have all the resources in the world.” Notably, legal outcomes of these two cases could have had drastically different impacts for existing marijuana businesses. If Sisley and Zorn had won their case, for instance, and the DEA moved cannabis to Schedule 2, that could have opened the door for pharmaceutical giants to get into the cannabis industry and created immense disruption with new federal regulations. (See “Rescheduling Roulette” on page 38.) That was something that Rudick said her team wanted to avoid. And it was also one of the reasons her team decided against starting with a rescheduling petition to the DEA before moving to a lawsuit. “Something that’s worse than what we have right now—which is sort of a hands-off policy—is Schedule 2, which would basically put all of our existing industry out of business. We can’t have a pharmaceutical model,” Rudick said.

44 March 2022 | MJBizMagazine

Lauren Rudick

“And that was one of the fears we had with a rescheduling petition.”

Open-ended Possibility Both attorneys said a court victory—and either rescheduling or descheduling, depending on the plaintiff’s request—is there for the taking. Rudick said federal marijuana prohibition violates “so many fundamental constitutional rights” that it would be almost child’s play for an attorney to win on the merits of a legal argument in open court. “It’s rooted in unconstitutionality,” Rudick said of marijuana’s Schedule 1 classification—which, according to

the DEA, means that cannabis has “no currently accepted medical use and a high potential for abuse.” That very definition—and how it’s understood by DEA officials—is why Zorn says the agency’s standards for Schedule 1 classification are absurd. “Our core contention in that case, and something that wasn’t decided (by the judge) … was that the DEA has misinterpreted the phrase, ‘No currently accepted medical use,’ to mean ‘approved by the (U.S. Food and Drug Administration),’” Zorn said. “And because of that, (the DEA) refuses to reschedule marijuana.” Which means that the policy debate is ripe for the right attorney, Zorn said. “File a petition, make all the same arguments we made, and when the DEA rejects it, go file an appeal. Go to whichever circuit court, take our brief and copy and paste it,” Zorn said. “If you don’t lose on a technicality, you will win.”

John Schroyer is chief correspondent for MJBizDaily. He can be reached at john.schroyer@ mjbizdaily.com.

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INDUSTRY PLAYERS New Hires & Promotions by Omar Sacirbey

Co-founder of Papa & Barkley Becomes CEO Papa & Barkley, a California-based manufacturer of THC topicals, edibles and concentrates, appointed co-founder Guy Rocourt as president and CEO effective Feb. 1. Rocourt has been the company’s chief product officer since 2015. “I look forward to leading Papa & Barkley as we focus more on THC markets in California and other states,” Rocourt said in a statement. Rocourt replaces Evelyn Wang, who joined Papa & Barkley as CEO in January 2021 after a long career in the cosmetics industry. Papa & Barkley also added J. Roy Pottle to its board of directors. Pottle is chair and CEO of American Messaging Services, a critical-messaging company, and senior adviser to Granite Point Capital, an early investor in Papa & Barkley. Pottle is also a board member of LPF Holdco, which does business as Loudpack, a California cannabis company.

Ayr Adds Finance and Operations Veteran to Board Ayr Wellness, a vertically integrated MSO, appointed Joyce JohnsonMiller to its board of directors. She was also appointed to Ayr’s audit committee. Johnson-Miller served as senior managing director and partner at Relatively Capital from 2008 to 2017 and as a managing director at Cerberus Capital Management from 1993 to 2002, in addition to vice president roles at ING Bank and Citicorp. She has spent 4½ years as chief growth officer at MyOwnDoctor, a virtual medical consultation platform. Johnson-Miller is also on the board of directors for NewLake Capital Partners, a provider of real estate capital to state-licensed U.S. cannabis operators, and SportsTek, a special purpose acquisition company targeting investment opportunities that focus on the intersection of sports, technology and health, and serves as board chair and chief investment officer for Pacific Gate Capital Management, a value-oriented investment manager specializing in U.S. private credit investments. She is a Henry Crown Fellow of the Aspen Institute, a famous Washington DC think tank, serves

46 March 2022 | MJBizMagazine

on the boards of Hope Chicago, the Chicago Counsel for Global Affairs and the Chicago Sinfonietta and is chair emeritus of the DuSable Museum of African American History.

California Retailer Hires Marketing Chief California cannabis retail chain Perfect Union hired Nicole Hanratty as their new vice president of marketing. Hanratty spent four years as marketing director with cannabis edibles company Bhang, two years as vice president of the Brand Wagon Agency, a California marketing firm, and founded and led for eight years Life of a Rockstar, a charity-focused entertainment website.

Canna Real Estate Firm Nabs Digital Power AFC Gamma, a cannabis-focused commercial real estate company, appointed Marnie Sudnow to its board of directors. Since 2020, she has served as senior vice president of client success at Stylitics, a retail technology company. Before Stylitics, she held several leadership positions at Mediaocean, an advertising and technology company, and worked in private banking for JPMorgan.

Canna-focused HR Firm Hires Marketing Officer Würk, a Denver-based “human capital management” company for the cannabis industry, appointed Colton Keluche as marketing director. Keluche has had at least two other stints in cannabis: one with Green Screens, a digital signage business where he was chief marketing officer, and the other with Rollanow, a Colorado delivery company where he was chief operations officer. Keluche’s pre-cannabis posts include marketing manager at KelSie Biotech, vice president of business development at Sticky Media and chief marketing officer at Sharp Solutions Courier.

Vaporizer Manufacturer Hires Attorney for Two Roles Vuber Technologies, a vaporizer deviceWalker Weitzel manufacturing company headquartered in Spokane, Washington, appointed Walker Weitzel as its chief technology officer and chief intellectual property counsel. Weitzel’s mandates include identifying and

INDUSTRY PLAYERS developing Vuber’s patentable technologies, managing all IP efforts—including 20-plus pending and five issued patents—as well as trademarks and licensing. Before Vuber, Weitzel spent nearly seven years an attorney with Alloy Patent Law in Seattle and nearly 10 years as a project engineer with Electroimpact, a maker of aerospace manufacturing equipment in Mukilteo, Washington.

growth strategies for its supplier and provincial board partners. MacKenzie most recently was Kindred’s national director of trade development. He also worked as a category manager for the Nova Scotia Liquor Corp. and as an account manager at Diageo.

Toronto Cannabis Brokerage Hires Alcohol Vet as GM Kindred Partners, a Toronto-based cannabis brokerage serving the adult-use market, appointed Curtis MacKenzie to the role of executive vice president and general manager effective Feb. 4. MacKenzie will oversee market commercial sales activities and

Rinat Efrima

Yael Harrosh

Israeli Cannabis Firm Appoints Rinat Efrima as CEO IMC Holdings, the Israeli subsidiary of IM Cannabis Corp., hired

Rinat Efrima as its new chief executive officer. IM Cannabis is an international medical and recreational cannabis company. Efrima will join IMC Holdings in the first quarter of 2022, according to a news release. Previously, Efrima held positions at quartz-countertop maker Caesarstone and personalcare company Kimberly-Clark Corp. Additionally, Yael Harrosh was promoted to global chief legal and operations officer, effective immediately. Efrima and Harrosh will report to Oren Shuster, who remains the CEO of IM Cannabis. Hired or promoted someone for a senior-level position? Send a news release or general information to Omar Sacirbey at omar.sacirbey@ mjbizdaily.com.

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UNBOXED Cannabis Packaging and Design Insights

Comely Cordials Koan’s evocative packaging design speaks to cannabis newcomers and wellness seekers By Kate Bertrand Connolly

he packaging design for Koan cannabis-infused cordials hits the sweet spot between current and timeless. The single-serving cordials—a hybrid of tincture, edible and beverage—are named for their intended consumer experiences: Balance, Calm, Create, Delight, Play and Wonder. Koan introduced Love to the lineup in time for Valentine’s Day, and Sleep will launch later this year. In designing the cordials’ packaging, “our goal was to create an initial product experience … before (consumers) even consumed a cordial,” said Henry Steingieser, creative director and co-founder of Resonate Blends, the California-based holding company that owns Koan. The company recruited Californiabased illustrator Daren Thomas Magee to make that happen. “It clicked in my mind that Daren’s art would be perfect for this,” Steingieser said. “He tapped into these archetypal images.” Although collaborating with an illustrator “was an additional cost for us, it was well worth the expense,” Steingieser added.

In-house Graphics The cordial packaging includes a paperboard tray-in-sleeve carton and 10-milliliter glass bottles with aluminum, pull-tab caps. Three single-serving bottles are packed in each tray. Resonate Blends plans to add multiserve bottles and singles in 2022.

48 March 2022 | MJBizMagazine

SUPPLIERS Illustrations: Daren Thomas Magee, realfunwow.com Paperboard cartons and carton printing: Sun Grown Packaging, sungrownpackaging.com Glass bottles, bottle printing and caps: SureSource, sure-source.com Market research: Brightfield Group, brightfieldgroup.com

The color-coded cartons and bottles have soft-touch finishes. All packaging materials are recyclable or compostable except for a polymer gasket in the cap. California-based Sun Grown Packaging supplies the custom, child-resistant cartons, and Chinabased SureSource provides bottles, bottle printing and caps. Resonate Blends created the package graphics in-house to accompany Magee’s illustrations. The design includes an iconbased visual system that quickly conveys THC and CBD levels, terpene content and the product’s stimulating or sedating effects. The system is printed on the sleeve as well as on a four-panel inner flap.

Universal Praise Resonate Blends worked with Chicago-based Brightfield Group for market insights. Koan’s marketing skews toward the female demographic, and its two primary consumer targets are the cannabis curious and wellness seekers. Secondary cohorts are “experienced explorers” and “discreet unwinders,” Steingieser said. Koan Cordials are sold exclusively in California, through select dispensaries and online via the company website. “We have received universal praise from both consumers and retailers on our packaging and product design,” Steingieser said, noting that Koan won a Bronze 2021 Clio Cannabis Award for its packaging and a 2021 Gold Leaf Award for Best New Brand at the Luxury Meets Cannabis Conference. Ultimately, he added, the design keeps Koan’s products “clear, clean and approachable for our consumers.” To suggest a product for this department, email magazine@ mjbizdaily.com.

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SEED TO CEO Sound Bites from the MJBiz Podcast

veryone wants to get in on the cannabis market. The podcast “Seed to CEO” gives marijuana entrepreneurs an edge. Each week, MJBizDaily interviews a cannabis executive to learn the stories behind their successes and failures. To hear from those who have been there and done that, visit mjbizdaily.com/podcast or listen to “Seed to CEO” wherever you get your podcasts.

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Tune In Today!

These “Seed to CEO” podcast guests answered:

If you had the chance to start your cannabis career over again, what would you change?

JEANETTE WARD HORTON

HOPE JONES

SIMON NANKERVIS

CEO, NuProject Portland, Oregon

President, Superior Phenos; CEO, Emergent Cannabis Sciences Phoenix

CEO, The Source Las Vegas

I think it’s what I tell myself every day, which is to stress less and not take it so seriously. Cannabis is going to be hard for much longer. (Securing) funding to small businesses is going to be hard for much longer. And so, you just have to have joy in the midst of it. That’s what I would tell myself and other entrepreneurs, because being an entrepreneur is hard.

Comments have been edited for length and clarity.

50 March 2022 | MJBizMagazine

I stayed a bit quieter than I really was comfortable with. I was such a newbie and learning so much that I don’t know if that was right or wrong. I’m really inspired by the idea of how you present yourself and your confidence. I would have been more confident, regardless of my newness in this industry. There were certain things that I just knew we should be doing differently. And I should have made more of a stand and made my voice clearer. That’s really been my motto at ECS ever since. You may not like what I have to say, but you’re hiring me to protect your business and/or your license. And so, this is my 2 cents. You can take it or leave it, but I’m not going to hold back.

I would have been a little bit more conservative in my projections around how quickly I could turn the business around. I would have been a little bit slower on my expectations around how quickly you can bring improvements. That’s the biggest learning I’ve had: You’ve just got to take your time—especially with the challenging period we find ourselves in. You’ve got to be mindful that people are people, and we’re all getting faced with new hurdles every day. And just when you think you’ve got something figured out, we get (the omicron variant) or … supply-chain challenges. It’s a great industry, but I would certainly say it is not for the faint of heart.

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MJBizDaily Buyers Guide Cannabis Retail

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INTRODUCTION Retail is one sector of the cannabis industry that has continued to boom, despite the economic impacts of the COVID-19 pandemic. Once marijuana dispensaries were deemed essential businesses and allowed to remain open, all bets were off. Retailers continued to come up with ways to keep their businesses not only surviving but thriving, with curbside pick-up, e-commerce, delivery and other services that kept their customers happy. So it’s no surprise that retail stores are popular among entrepreneurs looking to make an entry in the cannabis market. But once they obtain their retail licenses, where do they go for guidance to get started with setting up their stores? Laura Drotleff MJBizDaily

That’s where we come in. MJBizDaily is pleased to present the Cannabis Retail Buyers Guide to provide entrepreneurs with the critical information they need to know to get started in directto-consumer sales. In addition to a list of companies pertinent to sourcing products for retail stores, business owners also receive smart content from industry experts covering: • Designing a cannabis dispensary. • Selecting display infrastructure for a retail store. • Choosing a point-of-sale system. • Planning for e-commerce and last-mile delivery. Once again, we offer kudos and thanks to contributor Georgie Smith for her work on this guide. We hope you find this content helpful in guiding your efforts in setting up a dispensary or retail store, and we welcome any feedback at editorial@mjbiz.com.

Laura Drotleff

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The first step in a design process is for a cannabis retailer to understand their business model. Photo by Thomas Kelsey

HOW TO DESIGN A CANNABIS DISPENSARY

A good cannabis dispensary design reinforces a retailer’s brand elements while optimizing the operational efficiencies of the business.

With an estimated 7,200 to 8,800 marijuana retail shops nationwide and an additional 2,700 to 3,300 stores within vertically integrated cannabis businesses—according to the 2021 MJBiz Factbook—a well-thought-out and executed cannabis dispensary design is becoming crucial to retail success. “Ensuring you have a good interior design isn’t just about aesthetic. It’s about the form, the flow and the customer’s journey,” said Danielle Marzarella, vice president of SevenPoint Interiors, a Torontobased cannabis retail designer. “But it also considers the product journey to ensure the efficiency of the space, so you maximize the sell-through of your product.” Megan Stone, owner and founder of High Road Design Studio in Arizona, agrees, saying it’s no longer good enough to open a dispensary based on the traditional design the industry started with in medical marijuana states. “This doesn’t have to be about walking up to a window and being buzzed into another room with a U-shaped display case,” Stone said. “There’s a lot more creativity that can be explored.”

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Seven cannabis dispensary design do’s and don’ts Don’t copy a trend just because

When it comes to dispensaries, cannabisspecific retail designers see the same design misses repeatedly.

“Copy and replication doesn’t necessarily get down to the bottom of why things are the way they are. We see a lot of trends happen in this industry. We saw a massive movement to digital menus, for example. But that hasn’t always resulted in the same sell-through of the product. You need to be able to distinguish between the trends that might be relevant to your business.” – Krista Raymer, Vetrina Group

Whether it’s missed opportunities or design faux pas, here’s a roundup of seven common do’s and don’ts cannabis interior design consultants want cannabis retailers to know.

Do skip the tech store model “We’ve taken the best example that we know of in retail, which is an Apple store, and replicated the concept as well as the aesthetic into a cannabis store. The problem with doing this is that the purchasing behavior around cannabis is totally different. In most instances, we can’t put the product directly into the customer’s hand.” − Krista Raymer, Vetrina Group

Do design for convenient pick-up “Especially since COVID, customers are looking for things as convenient or as quick as possible. That means online express pickups. Keep (pickup locations) to the front of the store. Don’t locate them where they are going to make for an unpleasant experience and be a challenge to integrate.” – Megan Stone, High Road Design

Don’t forget customer engagement “One of the big differences we have seen since we started is the understanding of customer engagement. It’s not just a transaction anymore, it’s about building relationships, building a sense of community and warmth and environment when somebody steps into a space.” − Danielle Marzarella, SevenPoint Interiors

Don’t forget to plan for change “A lot of retailers have made a mistake in not anticipating changes in category sales. So we build the store for performance of the product today, not necessarily how the product will perform in the future. A really good example of this is retail environments that didn’t build a fridge into their store or leave a space where a fridge could exist. And now we’re seeing beverages, specifically in California, grow as a percentage of total revenue.” – Krista Raymer, Vetrina Group

Do design for impulse purchases “As an industry we’ve done a really bad job thinking about impulse (purchases). Impulse shopping can account for a huge driver in terms of revenue and profitability. Often these products are under $20 but can drive more gross margin through because the customer is less price sensitive in that area. So we want to make sure that we are positioning impulse in cannabis stores in a way that creates opportunities to have multiple units per transaction.” – Krista Raymer, Vetrina Group

Do make it about your brand “Explore who you are and what you offer to your customers and find a way to bring that experience you offer to them. There’s always a way to put a personal touch on an experience.” – Megan Stone, High Road Design

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7 Things to Look for When Evaluating a Cannabis POS 1. Reviews & Reputation Read reviews from POS users and software experts to see if the software performs as promised. Research the company credentials. Do they have expertise in the industry? 2.Reliability and Crash Reports Here’s a tip: search the name of a POS + CRASH and see what the results reveal. You might be surprised how many systems have failed on critical days like 4/20. 3. A Live Demo That's Customized to You Armed with research, book a demo, and don’t just sit back and listen to a sales pitch. Come with questions and get a personalized walk-through of the features that matter to you. 4. Usability High turnover and limited experience are expected in this business. The POS your team depends on should be easy to learn and loaded with product information. 5. Integrations & Ecosystem As your business grows, you’ll need additional software (e-comm, HR, security, etc.) that works together. Look for a POS with an expansive partner ecosystem and open API. 6. Scalability Some software works ﬁne for a single dispensary but can’t keep up with multi-locations and enterprise needs. If you’re looking to grow, look for a POS proven to keep pace. 7. Support That’s There When You Need It Everyone promises great support, but so many leave you hanging. Make sure your prospective POS support is easy to ﬁnd and responds just as fast as the sales department.

I’ve been with Cova POS since the beginning, and they’ve always been there to help. Three years and counting, I’m one happy customer. Natasha Sokoloski Chief Operations Ofﬁcer DM Compassion Center, CA

Award-Winning, Fully Compliant Cannabis Retail Software High-Volume 4/20 Proven Reliability Offline Mode Easy-to-Use Mobile Budtender Sales Tools Flexible Workflows & Fulfillment Heart of the Largest Cannabis Tech Ecosystem Praised for Industry Leading Support

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FORM FOLLOWS FUNCTION

The first step in a design process is for a cannabis retailer to understand their business model. “Are we going to be a really small location with a tight menu? Or are we a larger location attempting to serve multiple types of clientele? That’s going to tell us what features need to be built into the store,” said Krista Raymer, co-founder of Vetrina Group, a Toronto-based cannabis consulting firm. Other operational considerations include how sales transactions will happen, Raymer said. For example, will sales be completed in front of displays on the sales floor, or at a cash desk? Will product be dispensed from the sales floor or brought out from secure storage in the back? Based on a store’s expected traffic, how many budtenders will the store need, and will it make sense for them to dispense from the showroom or behind a counter? And it’s not just the showroom floor, but inventory control and storage that need to be considered in a design process, said Holly Cottrell, business development consultant for SevenPoint Interiors. “The front of the house and the back of the house have to coexist and work together efficiently for you to be able to run the store,” Cottrell said. Raymer agrees, noting that little things often get overlooked in a design process and can make all the difference when it comes to operational efficiencies.

A cannabis retail design checklist What to know and what to ask Before hiring a designer or consultant ask:

Before you start the design process, ask yourself: F

What does your brand represent?

How can you reinforce your brand message through the retail environment?

How do you plan to interact with customers?

What experience do you have in the cannabis industry?

Do you offer just design services, or do you also consult with other aspects of setting up a new cannabis retail business?

Can you help select manufacturers for display infrastructure or manufacture it yourself?

How will you support e-commerce sales and delivery?

How will compliance regulations control the showroom and inventory?

What emerging trends are applicable for the brand?

What will the inventory list look like?

How will sales transactions be completed?

How can you help us stay within our budget?

How many employees will you need on the showroom floor? In inventory?

Rethink everything!

What is the design and build-out budget, including infrastructure?

Visit other stores.

Plan for future changes.

Be creative.

Don’t be afraid to:

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“Give yourself an opportunity to stay organized,” she said. “A lot of the time we don’t build enough storage space onto the sales floor for all these other pieces that involve running a retail store, like cleaning supplies, merchandising tools and all of the retail stuff. That stuff needs to be considered when we’re building out a store plan as well.” It’s all part of designing for function rather than form, Marzarella said. “The best practices come from when we look at all those parts together, so they work harmoniously and they’re not afterthoughts,” Marzarella said. “So where your POS is and where your vault is and making sure there’s an efficient relationship there is just as important as the fixtures and displays placed on the sales floor.”

REINFORCING YOUR BRAND

Once a retailer understands all the operational elements of the story, the “cherry on top” is marketing, merchandising and telling the brand story elements, Raymer said. Little things like color and material choices, signage and merchandising systems—and even how a dispensary sets up its budtenders to interact with customers—reinforce the brand messaging. “If fun is part of the brand, we need to create fun and newness in everything: in the way the store is laid out; in the way that the merchandising shows up; in the way that the budtenders interact with the product and how the product is positioned to the customer,” Raymer said. And when it comes time to scale and open new stores, make sure to identify those core brand elements that can be replicated and stay consistent while designing future locations with new communities in mind, she added.

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Be sure to plan for and be flexible about evolving state cannabis regulations in designing both medical and recreational dispensaries. Photo by Sean Capshaw

DESIGNING FOR RECREATIONAL VERSUS MEDICAL DISPENSARIES

Compliance rules and customer needs will predicate different design goals for recreational versus medical dispensaries, Stone said. Medical dispensaries typically have an environment designed to fit patient licenses, age and privacy regulations. For example, they usually must include a secure check-in area or waiting room, whereas recreational stores have more flexibility in their layout, merchandising and transactions. But don’t forget to plan for and be flexible about evolving state cannabis regulations, Cottrell said. Many of SevenPoint Interior’s medical dispensary clients want designs that can accommodate a future recreational model. Designing for future changes is a good practice in general, Raymer said. It’s hard to predict what the retail environment might look like in the future. To that point, she recommends installing track lighting that can easily be changed to highlight different areas of the store or choosing fixtures that are flexible with varying categories of product. Also, avoid making signage permanent. “We don’t want to pigeonhole ourselves into a commitment,” Raymer said.

PLANNING FOR POP-UPS AND PARTNERSHIPS

When thinking about a retail store design, consider the emerging trend of pop-up or product feature opportunities that can highlight vendor partnerships. If they have the space, dispensary operators might want to include a VIP room that could accommodate a band or an autograph signing, or give a brand a distinct area to host a short-term promotion, Marzarella advised.

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Pop-up or product feature opportunities can highlight vendor partnerships and may include features like a VIP room that could accommodate a band or an autograph signing, or give a brand a distinct area to host a short-term promotion. Photo courtesy of Charlotte's Web

But even in smaller spaces, retailers can feature specific vendors by using different merchandising techniques or fixtures to highlight areas, Marzarella said. Consider what brands might need if they were to come in for a pop-up type of promotion, Raymer said. “If a beverage company wants to come in and do a feature, what are they going to need to be able to get the product sold? And how is that person going to be positioned on the floor?” she said.

DESIGNING FOR YOUR INVENTORY

Another element that is crucial to cannabis retailer success is choosing inventory. While it might not seem obvious, planning for inventory is part of the design process. “Inventory is where the profitability comes in,” Raymer said. “Step one is how the store is built out and presenting the product to begin with, but our goal as a business is always to be working around the inventory and (product) assortment.” Raymer recommends making a financial forecast of the performance of the business as part of the design process. For example, how much revenue does the store expect to do? How long will inventory need to last? Build an assortment strategy first and then fill it with details. “We then give ourselves a tight and defined shopping list to go and find the right partnerships, the right vendors to work with to build out an inventory,” Raymer said. “If we go straight to creating vendor relationships, we often tend to overbuy because we get decision paralysis as business owners. We don’t want to miss an opportunity.” Once the inventory plan is in mind, it is easier to map out the space for it—keeping in mind that product categories may change in the future, Marzarella said.

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“If they plan to open with 40% flower, 25% concentrate, we’re planning that into our place. But we need flexibility so that the flower table might become a concentrate table. Or that wall fixture is something that is easy to convert into apparel,” she said.

CHOOSING A CANNABIS RETAIL DESIGNER

While some retailers might be inclined to do their own design or hire an interior designer without cannabis-specific experience, understanding the cannabis retail environment is critical. “There’s definitely an advantage to having people who understand not just the product and the customer behavior but also the nuances around compliance issues,” Raymer said. Many retailers wait too long before bringing in a designer with cannabis experience, Stone said. It’s not just the aesthetics. Having a partner that understands the operational side of the cannabis retail business is helpful. Marzarella recommends finding somebody who can help you throughout the project’s life, not just for individual parts of it. “Understanding what your needs are and planning is so very important. Find the right people who have a lot of experience,” Marzarella said. Cottrell also advises retailers to have a compliance person on the team. Even though a good design company should do their due diligence regarding compliance issues, it’s important to have a compliance person in-house to keep on top of changing rules. “Whether you have one store or 500 stores, you need to have someone on staff that does compliance,” Cottrell said. “Every state is different and some of these states change hourly as far as what is allowed and what is not allowed.”

Cannabis retail design isn't only about the aesthetics. Hiring a designer who understands the operational cannabis retail environment is critical. Photo by Mark Leffingwell

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Budget for retail infrastructure at the beginning of the design process, not as an afterthought at the end. Photo courtesy of Common Citizen

HOW TO CHOOSE THE RIGHT INFRASTRUCTURE FOR YOUR DISPENSARY

Look to function, durability, flexibility and reinforcing brand elements when choosing critical infrastructure pieces—think shelving, countertops and display cabinets—for a cannabis retail outlet. “It’s not just about the color and the way it looks, but it’s how is this environment going to create an experience that is going to support the sell-through of the product?” said Danielle Marzarella, vice president of SevenPoint Interiors, a Toronto-based cannabis retail design and manufacturing group. That means considering “how is the product is displayed? What’s supporting that product display? How are we designing the fixtures to best suit the brand?” Marzarella explained. Start thinking about and budget accordingly for infrastructure at the beginning of the design process, not as an afterthought at the end, Marzarella and other cannabis dispensary design consultants and display case manufacturers told MJBizDaily. “Aside from building your walls and installing your lights, your store is your fixtures and your signage,” said Megan Stone, owner and founder of Arizona-based High Road Design Studio. “Make sure your budget around those items is realistic and treat these things with the importance that they hold.”

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Don't forget about security and compliance in a dispensary design. Some cannabis-specific display systems make it easy, with security built into the design. Photo courtesy Planet 13

INFRASTRUCTURE THAT SUPPORTS COMPLIANCE

Understanding compliance rules and how they will drive the daily workflow is the first step in choosing dispensary infrastructure. For instance, can product be locked into a display case and left in the showroom overnight? Or does it have to be removed to a secured storage area and brought out each day? A dispensary’s infrastructure should accommodate compliance rules while still facilitating workflow efficiency. That could be as simple as locking display cabinets with rollers on them that can be easily rolled back or forth, said Holly Cottrell, business development consultant for SevenPoint Interiors. There are also cannabis-specific display systems with security built into the design. Some sampling display systems include security built into their sample display jars, like sample jar tethers that allow customers to smell and inspect product but not walk off with it, said Will Smith, founder and owner of Bud Bar Displays in California. A dispensary could take a more customized approach to its infrastructure needs. One idea is a credenza area at the check-out counter, with a wall that has pass-through drawers in it for employees in the vault to stock—a feature that supports the point-of-sale transaction on the other side of the wall, Marzarella said.

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DURABILITY, FLEXIBILITY AND LIGHTING

Select durable materials when choosing shelving, cabinets and display cases for dispensaries. “Fixtures are supporting an environment that is going to sustain a lot of wear and tear, so they really need to be built to commercial standards,” Marzarella said. “Sure, you can buy something online, on Amazon or through some other website. But the residential versus the commercial standards are different.” The proper color lighting spectrum can make a big difference in attracting

Whether it’s the materials or consumers. Courtesy of Seven Point Interiors the fixture hardware, all finishes should be chosen with a dispensary environment in mind. But flexibility is also important: even something as simple as shelving that can adjust in height can give cannabis retailers many more options.

“You might want to place different products in different places in the store at different times,” said Krista Raymer, co-founder of Vetrina Group, a Toronto-based cannabis consulting firm. “If we commit to permanent shelving heights, then we might not be able to get that 14-inch bong in the case.” Don’t overlook display case lighting, Smith recommends. Lights that put out too much heat can damage and dry out delicate flower or even melt edibles and other cannabis products. Plus the proper color spectrum can make a big difference. “We use LEDs in a color signature that is very appealing in retail,” Smith said. “It just makes products look attractive.”

RETROFITTING AND STAYING ON BUDGET

Whether a dispensary owner is building all new customized display pieces, converting old ones or working with modular systems, the best way to stay on budget is to have a realistic understanding of infrastructure needs and costs from the beginning. “While cheap is nice, cheap isn’t always good,” Marzarella said. “And cheap isn’t always going to last you the duration of the life of your business.” However, there are many more off-the-shelf, cannabis-specific display options available than even a few years ago, such as custom design services and more budget-friendly, cannabis-specific preengineered modular systems. And while it might be tempting to save some dollars by retrofitting or reusing old infrastructure to meet a new dispensary’s workflow, it can be a challenge to capture brand elements and comply with retail-related regulations. “Where can you pull in your brand elements to be able to create consistency?” Marzarella asked. “Understanding what is currently in the space as infrastructure, and if it is related to your compliance opportunities or requirements, is going to be important.”

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Most cannabis retailers set out to choose a point-of-sale system by considering their workflow and how a POS will support that. Photo by Andrew Long

CHOOSING A POS SYSTEM FOR YOUR CANNABIS RETAIL OPERATION

Buying a point-of-sale system for a cannabis store is no small endeavor. Many factors come into play. But the decision-making process can be made easier by following some general guidelines. A cannabis retailer should choose a POS system with features that support their business model, operations and brand, according to cannabis retail designers, consultants and POS experts. “A POS is going to help us run our business, right? So what tools do you need to be able to run that business?” asked Krista Raymer, co-founder of Vetrina Group, a Toronto-based cannabis consulting firm. “If you’re data-focused, you want a POS provider who is going to provide you the data to make decisions. If the majority of your business is going to be run through e-commerce, finding a POS provider that has a smooth integration with e-commerce is going to be really important.” Christine Foss, Director of Product for POSaBIT Inc., a Washington state-based POS and payment company, said while there’s a lot to consider when choosing a POS system, ultimately a retailer’s business operations should drive the decision-making process.

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Most cannabis retailers start by considering their workflow and how their POS will support that.

A cannabis point-ofsale checklist

“Devices have limitations on the workflow. If you have a register that’s bolted to the counter, you can’t walk around the store with it if you want to have an Apple store model,” Foss said.

What to know and what to ask What to ask yourself when looking for a POS system:

Mobile is also useful for retailers who plan to fulfill lots of online or curbside orders, or make deliveries. But that brings up another point – internet access. What happens if your store’s Wi-Fi goes down or your employee is making a delivery and needs to complete a transaction in an area with bad connectivity? Check for systems that have an offline mode that can be updated once connectivity is re-established, Foss suggested.

What does your cannabis brand represent?

How can a POS system support your operations?

Is e-commerce part of your business model?

How many employees will need access to a POS device?

Do you want stationary or mobile POS devices—or a combination?

Questions to ask POS providers:

COMPLIANCE, CONTROL AND FLEXIBILITY

How do you approach compliance issues?

Like every aspect of the cannabis industry, “compliance is king” when choosing a POS system, Foss said.

Who are your banking partners?

Are you transparent about financial services and compliance requirements?

The POS provider should keep on top of changing laws—whether that’s purchase limits or tax laws—and, ideally, help you avoid problems, she said.

Does your system offer an off-line mode?

How often does your company update software and how does that process work?

Do you integrate with other online cannabis marketplaces?

What sort of control features can be customized to transactions?

What reports and data can you generate?

How available is your customer service team for problem solving?

Another feature in POS systems is the program’s ability to control what budtenders can and cannot do at the point of purchase and provide visibility back to the owners based upon each purchase. “Sometimes what happens is budtenders will give away too many discounts, or they’ll give away a discount that they shouldn’t,” Foss said. “We can set up discount stacking limitations, we can allow expectations, or we can have a whole discount limit within the store, so no one’s getting more than 50% off.”

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Another factor for retailers to consider is whether they want to pull up a transaction by the product or by the customer, Foss said. Systems that can pull up the customer first at the point of a transaction will allow a budtender to access that person’s profile, including their favorite products, any recent purchase history or other notes about the customer. That feature supports more personal engagement with the customer, which is helpful if personalized customer interaction is part of the retailer’s brand, Foss said.

UPGRADING THE ATM MODEL

A POS system improves upon the traditional ATM model many dispensaries have, and it can increase profitability, Foss said. POS systems allow cannabis retailers to make debit sales, resulting in higher average transactions than cash sales alone, Foss said. For example, a POSaBIT case study of a Washington state cannabis retailer found that the store’s average debit ticket was nearly $20 more than the average cash ticket. “It’s just the nature of the beast. People spend more money with a card,” Foss said. “A lot of owners will say, I make a lot of money from my ATM. And yes, they do. But the amount of money you’re going to make up from that average ticket being so much larger is a much bigger difference than making dollars off the ATM.” A POS system aligned with all cannabis rules and regulations can also help retailers avoid potential legal problems associated with dispensary ATMs, like the warning from Visa reported in December by MJBizDaily. The financial behemoth notified banks and other financial institutions that it was aware of a scheme under which cashless ATMs in dispensaries were being deliberately miscoded to disguise cannabis purchases—an apparent way to circumvent federal marijuana prohibition and banking rules.

POS SYSTEMS AREN’T PERFECT

The biggest complaints about POS systems from customers usually target hardware reliability as well as system breakdowns, slow speeds or reporting errors, Foss said. Another logistical headache can be details like naming conventions for products. For example, does the POS system allow products to be shared across stores? Once the product is in the system at one location, is it auto-generated in the system? This avoids having a database with multiple entries of the same product, Foss said. But at the end of the day, one of the biggest concerns with POS systems is customer service. So make sure any vendor you choose offers top-notch customer service and is highly responsive in the event of problems, Foss advised. “Not being able to reach someone when something is really wrong is a problem,” Foss said. “You know there’s a big difference between a donut shop versus a cannabis store where there are compliance issues and some really bad ramifications if you don’t get things resolved quickly.”

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PLANNING FOR LAST-MILE CANNABIS DELIVERY

Include plans for e-commerce and last-mile delivery to capture more revenue and brand awareness for your cannabis dispensary, even if you are opening a traditional brick-and-mortar store. The COVID-19 pandemic shift in consumers looking for online purchasing and home delivery options has had a huge impact on cannabis, said Drea Ballard, regional operations director for Blackbird, a Nevada-based cannabis software and delivery company. When Nevada closed dispensaries due to coronavirus restrictions, last-mile purchases increased by 600% overnight, Ballard said. “They opened the stores back up, but that was a wakeup call to everyone that they need delivery services,” Ballard said. “Every restaurant, you now have an option for Grubhub. It’s logical that cannabis needs its version.”

IN-HOUSE OR THIRD-PARTY DELIVERY?

Last-mile purchases increased by 600% overnight in Nevada when

While some cannabis retailers may coronavirus restrictions shut down retail stores. Photo courtesy of Blackbird prefer to keep their deliveries in-house, Ballard said there are many costs and logistics to consider with cannabis last-mile deliveries, especially compared to other sectors, like food, that have instituted delivery systems. “The costs and regulations of cannabis are entirely different. Insurance is five times as much. Vehicle regulations are strict,” Ballard said, also noting that delivery rules can differ between municipalities. “What are the benefits of a third-party delivery company rather than doing it in-house? It’s one more person to hire in-house,” Ballard noted.

BUILDING BRAND AWARENESS THROUGH E-COMMERCE DELIVERY

The good news is that while e-commerce and last-mile delivery bring in new revenue streams, offering and advertising delivery is also a great way to spread brand awareness, Ballard said. New customers will find your store when they search for local cannabis delivery options. “It’s a great channel for marketing and advertising before it is more visible than just your store,” Ballard said.

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COMPANY NAME

WEBSITE

100% Hemp Packaging by Contempo

www.contempopackaging.com

333 Apparel & Promotions

333apparelandpromotions.com

3SI Security Systems

www.3si.com

3WIN CORP

www.3wincorp.com

420WholesalePack.com by McCallum Packaging

420WholesalePack.com

4SCORE

www.its4score.com

Aaron Equipment Company

www.aaronequipment.com

AbeTech

www.abetech.com/solutions/ intelligent-edge

ABSCENT, LLC

abscent.com

Abstrax

www.abstraxtech.com

Accelerant Manufacturing

www.accelerantmanufacturing.com/

Accudyne Systems Inc

www.accudyne.com/

Accu-Seal

accu-seal.com/

ActionPac

www.actionpacscales.com

Advanced Labeling Systems

www.advancedlabelingsystems.com

Advanced Nutrients

www.advancednutrients.com/

Afinia Label

www.afinialabel.com

Agrarian Supply

www.agrariansupply.com

AgroRefiner LLC

agroref.com/

Agrowth Corp.

www.agrowthcorp.com

AIKOGROW

aikogrow.com

All American Label

www.allamericanlabel.net

Alpha Packaging

www.alphap.com

American Horticultural Supply, Inc.

americanhort.com/

American International Container

www.aicontainer.com

Amerivacs

www.AmeriVacS.com

Amish Farms Soap

www.moistureguardpro@gmail.com

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COMPANY NAME

WEBSITE

Amstergum

www.amstergum.com

Apache Stainless

apachestainless.com

APG Cash Drawer

www.cashdrawer.com

Ardent Cannabis

ardentcannabis.com/

A-ROO Company

www.a-roo.com

Arrow System

www.arrsys.com/

ARTIFISOL LIGHTING

www.hittvape.com

Ash Smoke

ashsmoke.com/

AssurPack LLC

www.assurpack.com

Astraea Purification

astraeapurification.com

AT Information Products

www.atip-usa.com

ATG Pharma Inc.

www.atgpharma.com

ATID

Atidusa.com

Atlantic Packaging Corporation

www.safercannabispackaging.com

Australis Capital

www.ausa-corp.com/

AuthentiBrand Inc. / HoloShield

authentibrand.com

AVD - Advanced Vapor Devices

www.avd710.com

Azuca

azucatime.com/

Best Damn Gummys

bestdamngummys.com/

BIC

www.bicworld.com

Big Cannabis Co

www.bigtripmfg.com/

Big Island Grown Dispensaries

www.bigislandgrown.com

Bindle Bottle

bindlebottle.com

Bio Hazard Inc

biohazardinc.com

bioMérieux Inc.

www.biomerieux-usa.com/

BioTrack/Forian

www.biotrack.com/

Black Mamba

www.BlackMambaGloves.com

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COMPANY NAME

WEBSITE

Bodega Boyz

thebodegaboyz.com

BOLD MAKER

www.boldmaker.com

Bouldin & Lawson

www.bouldinlawson.com

Boundless Technology

www.bndlstech.com

Boveda

www.bovedainc.com

Brez Inhaler

www.brezinhaler.com

Brightside Scientific Inc.

www.brightsidesci.com

BROCONE ORGANIC PVT LTD

www.brocone.com/

Brother Mobile Solutions

www.brothermobilesolutions.com

Brytemap

www.brytemap.com

Buddies Brand

buddiesbrand.com/

Buddy Boy Farms

buddyboyfarm.com/

Buddy Inc

www.buddy-usa.com

Calcanna CC

calcannaca.com/

Calico Brands, Inc.

calicobrands.com

California Label Products

www.californialabelproducts.com

CalyFx Inc

calfx.com/

Calyx Containers

calyxcontainers.com

Can of Bliss

www.canofbliss.com

Canapa / Paxiom

www.canapasolutions.com

CanBreed

www.canbreedseeds.com

Candy Pros

candypros.com/

Canna Brand Solutions

cannabrand-solutions.com

Cannabis Promotions

Cannabispromotions.com

Cannabis10x

cannabis10x.com

Cannabiz Venture Partners

www.cannabizventure.com/

Cannabolish by OMI Industries

www.cannabolish.com

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COMPANY NAME

WEBSITE

CannaDevices

www.cannadevices.com

Cannaline Custom Packaging Solutions

www.cannaline.com

CannaOne

CannaOne.com

Cannapaco

cannapaco.com/

CannaPlanners

www.cannaplanners.com

CannaPoint / Mariner Business Solutions

canna-point.com/

Canndescent

canndescent.com/

CannVerify

cannverify.com

Cannvital

Cannvital.com

CBD Organics

shopscbdorganics.com/

CCELL

www.ccell.com

Charles Beseler Company

beseler.com/

Chart Inc.

www.chartindustries.com

Chicago Culinary FX

www.ccfx.us

Chubby Gorilla, Inc.

www.chubbygorilla.com/

CILICON

www.ciliconplus.com

Cirona Labs

www.cironalabs.com/

City Trees Fresh Cannabis

citytrees.com/

Clark Food Service Equipment

www.cfse.biz

Clear Cannabis Inc.

www.clearcannabisinc.com

ClearBags

www.clearbags.com

ClearSolv

clearsolv.com

Cleveland Equipment and Machinery

www.clevelandequipment.com

Clipper Lighters

FLAMAGAS.COM

CNC Packaging INC

Www.Cncpackaginginc.com

CNP Operating

cnpoperating.com

Coastal Labs

www.coastallabs.com/

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COMPANY NAME

WEBSITE

Coastal Vape Co

www.coastalvapeco.com

Coldcore Inc.

www.coldcoreinc.com

Colorado Chromatography

coloradochromatography.com/

Compliant Packaging LLC

compliantpackaging.com/ mjbizcon-2021/

Confections Unlimited, LLC

cloud9cannabisconfections.com/

Constantia Flexibles

www.cflex.com

Contempo Specialty Packaging

www.contempopackaging.com

Corners Packaging

www.curtispackaging.com

Country Cannabis

www.countrycannabis.com

Cova Software

www.covasoftware.com

CRATIV Packaging

crativpackaging.com/

Create Goodness

www.chocolatedeliverysystems.com

Creative Cannabis Promotions

www.cannabisswag.com

Credence Engineering Inc.

www.credencefillingsystems.com

Crown Iron Works

www.crowniron.com

Cure8

www.cure8.tech

CurTec

curtec.com

Custom Cones USA

www.CustomConesUSA.com

Custom Pak Solutions

custompaksolutions.com/

CUSTOMPACKCO

www.custompackco.com

Cvault/FreshStor

freshstor.com

DabCap LLC

originaldabcap.com/

Dablicator™

ammoniteinc.com/

Dark City Molds

darkcitymolds.com

Davinci Tech

www.davincitech.com

Delta9 Systems & Color Label Solutions

www.delta9systems.com

Denali Innovations, LLC.

www.denali-innovations.com

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COMPANY NAME

WEBSITE

Detroit Dispensing Solutions

DetroitDispensingSolutions.com

Deutsche Process

www.deutscheprocess.com

Diamond CBD

diamondcbd.com

DisplayDispensary.com

DIZPOT / DOSS Carts

www.DIZPOT.com

DL Wholesale Inc.

www.dlwholesale.com

DMG Corporation

dmghvac.com

DMLIFT INC

www.DMLiftinc.com

Dr Dabber

drdabber.com

Dr. Grind LLC

www.drgrindusa.com/

Dura-Pack

www.dura-pack.com

DVP Distro LLC

dvpshop.com/

DYMAPAK

www.dymapak.com

E.L. Products

www.poweredbyflav.com

East Mesa

eastmesa.farm/

eBottles420

www.eBottles420.com

Ecosorb by OMI Industries

www.EcosorbIndustrial.com

ECS Brands Ltd.

www.ecsbrands.com

El Dorado Group

www.coastaldistro.com

Elemental Container Inc. a Tournaire S.A. Company

www.aluminumbottles.com

Elevated Signals

elevatedsignals.com

EnviroKure

www.envirokure.com/

Erika Record Baking Equipment

www.erikarecord.com

Extract Consultants

extractconsultants.com

Extract Labs

www.extractlabs.com/

Eybna Technologies

www.eybna.com

EZ Grow Systems

www.ezgrowsystems.com

Factory 6

www.factory6cbd.com

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COMPANY NAME

WEBSITE

Far & Dotter

fardotter.com/

Fibredust LLC

fiberdust.com

Fiftyshot Unite Vapeware

www.fiftyshot.com

FILAMATIC

www.filamatic.com

Flow Scientific

flowscientific.ca

Flower Mill USA

flowermillusa.com

Flowermate Technology LLC

flowermate.com/

Foodarom Group Inc.

foodarom.com

Freeminded

Freeminded.co

Fritsch Milling & Sizing, USA Inc.

www.extractionsbestbud.com

Futurola USA LLC

www.futurolausa.com

Gamer Packaging, Inc.

www.gamerpackaging.com

Gemini Extraction

www.GeminiExtraction.com

Genius Pipe

geniuspipe.com/

GH Trading INC.

ghlalighter.com

Global Cannabis Applications Corp

cannappscorp.com/

Global Smart Commodity Group

smartcommoditygroup.com/

Gold Leaf Packaging

www.goldleafpackaging.com

Golden Triangle Group Co., Ltd.

www.gtg.co.th

Green Life Productions

www.glpnv.com

Green Ocean Trading Company

www.caldwellspipes.com

Green Vault Systems

www.greenvaultsystems.com

Green420pack

www.green420pack.com

Greenlane

gnln.com

GreenSTOP Inc

greenstop.us/

Greenzilla

www.greenzilla.tech

Groen Automation

www.groenautomation.com

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COMPANY NAME

WEBSITE

Grove Bags

www.grovebags.com

Grow Merchandise

growmerchandise.com

Grower's Ally

www.sarasotagg.com

Growspec USA, Inc

www.growspec-inc.com

GVB Biopharma

gvbbiopharma.com/

Hamilton Devices

www.hamiltondevices.com

Happy Head Marketing

www.happyheadmarketing.com

Hato Vape Electronic CO., LTD

WWW.HATOVAPE.COM

HBI International

www.hbiinternational.com

Heat and Control, Inc.

www.heatandcontrol.com/cannabisindustry-solutions

Hefestus USA Inc.

www.hefestus-cannabis.com/

Heinz Glas

heinz-glas.com/en/

Hemper

www.harasupply.com

HempNova Lifetech Corp.

www.hempnova.com

Herbal Concepts

cbdheatpack.com

HERO Packaging, a div. of TARAL Plastics

www.HeroPackaging.com

Herring Bank

herringbank.com

Heyes Filters Inc.

heyesfilters.com

High CBD Farms

www.highcbdfarms.com

High End Dabzation

hedcarts.com

High Fidelity Paper Co

www.innovativesourcing.com

High On Love

HighOnLove.store

High Tek USA, Inc.

www.hightekusa.com

HIGHTEN SIFTER

hightensifter.com/

HISIERRA Compliant Packaging

www.hisierra.com

Hitachi Industrial Equipment & Solutions America, LLC

www.hitachi-iesa.com/industrialmarking-and-coding

HMP Brands

Www.HMPBRANDS.com

30 Copyright 2022, MJBizDaily, a division of Emerald X, LLC. You may NOT copy this report, or make public the data and facts contained herein, in part or in whole. For more copies or editorial permissions, contact CustomerService@MJBizDaily.com or call 720.213.5992 ext. 1.

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COMPANY NAME

WEBSITE

Hoffmann Neopac AG

www.hoffmann.ch

HolistaPet

holistapet.com/

Hoodie Analytics

www.hoodieanalytics.com

Hoosier Custom Plastics, LLC

www.hcplastic.com

HOPF Holding Inc.

www.hopfholding.com

Horticulture Lighting Group

HLG.com

Hourglass International, Inc.

hourglass-intl.com

Humboldt Seed Company

humboldtseedcompany.com/

Ideal Print Solutions

idealprintsolutions.com/

iFillSystems

www.ifillsystems.com

iKrusher

www.ikrusher.com

IMPAK CORPORATION

www.sorbentsystems.com/ scentshield.html

Inca Trail Terpenes

incatrailterpenes.com

Industrial Sonomechanics, LLC

www.sonomechanics.com

Innovative Packaging Company

innovativepackagingco.com

Integra By Desiccare

www.integra-products.com/

Intermetro Industries

www.metro.com

Introstem

introstem.com/

InTu Mobility

www.intupackaging.com/cannabispackaging/

IPL Packaging

www.iplpackaging.com/

Isolate Extraction Systems Inc.

www.isolatesystems.com

Ispire

getispire.com

ItemGrabber Green

www.itemgrabbergreen.com

IVEK Corporation

www.ivek.com

JWC Environmental

www.jwce.com

Kalvara

www.kalvara.com

Kana Planet

www.kanaplanet.com

31 Copyright 2022, MJBizDaily, a division of Emerald X, LLC. You may NOT copy this report, or make public the data and facts contained herein, in part or in whole. For more copies or editorial permissions, contact CustomerService@MJBizDaily.com or call 720.213.5992 ext. 1.

MJBizDaily Buyers Guide Cannabis Retail

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COMPANY NAME

WEBSITE

Kandypens, Inc.

www.kandypens.com

Kashmir Rolling Papers

kashmir420.com

Kind Spectrum

kindspectrumlabs.com/

Kinematica

www.kinematicausa.com

King Kone

kingkoneusa.com

Kush Kolectiv

kushkolectiv.com

Labels Lab

www.labelslab.com

Labeltronix

www.labeltronix.com

Latini-Hohberger Dhimantec Inc.

www.LatiniUsa.com

Leaf Trade

leaf.trade/

LeafLocker

www.leaflocker.com

LeafyPack

leafypack.com

Left Coast Extracts LLC

leftcoastextracts.info/

Leune

www.leune.co/

Leybold USA Inc.

www.leybold.com/us/en

Lifetime Coatings LLC

lifetimegreencoatings.com/

LifeTonic by Vapor Distilled

www.lifetonic.com

Lightning Labels

www.lightninglabels.com

Linhardt GmbH & Co.KG

www.linhardt.com/en/

Lit Supplies LLC

N/A

Loda Enterprises, Inc

www.loda.com/

LuvBuds, LLC

www.shopluvbuds.com

LuxLeaf Packaging

LuxLeafPackaging.com

Mactec Packaging

www.mactecpackaging.com

Marijuana Packaging by A&A Global Imports

www.MarijuanaPackaging.com

MarkVision Biotech

www.markvisionbiotech.com

Martini Incentives

www.martiniincentives.com

32 Copyright 2022, MJBizDaily, a division of Emerald X, LLC. You may NOT copy this report, or make public the data and facts contained herein, in part or in whole. For more copies or editorial permissions, contact CustomerService@MJBizDaily.com or call 720.213.5992 ext. 1.

MJBizDaily Buyers Guide Cannabis Retail

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COMPANY NAME

WEBSITE

meCANNical Services

rollingingreen.ca/

Mellow Fellow

www.mellowfellow.fun

Mellow Vibes

mellowvibes.com/

Melt-to-Make Gummies

melt-to-make.com

Microfluidics International Corporation

www.microfluidics-mpt.com

MIICROBIAL MASS

miimhort.com

Mile High Labs

www.milehighlabs.com

Milford Enterprises

www.milfordei.com

Minorities for Medical Marijuana, Inc.

linktr.ee/M4mmunited

Miracle Leaf Health Centers

miracleleafdoc.com/colorado/

MMI Agriculture

mmiagriculture.com

Mold-Rite Plastics

www.mrpcap.com/markets/cannabis

Monkey Pak Me

monkeypakme.com

Montel Inc. | Grow More With Less Space®

www.montelgrowmore.com

Montroy Sign and Graphic Products

Montroy.com

MULTIPOND America Inc

www.multipond.com/en/

MUNCH Machine

www.munchmachine.com

Nanografix

www.nanografix.com

Navac INC

industrial.navacglobal.com/

NBS Calibrations

nbscalibrations.com

Netwatch North America

info.netwatchusa.com

NeuraLabel Printing Solutions

neuralabel.com

NeutraFog

www.neutrafog.com/

New World Packaging

www.newworldpackaging.com

no smell no tell

nsntspray.com/

Northern Diversified Solutions

northerndiversified.com

Northwestern Extract Co.

www.nwextract.com

33 Copyright 2022, MJBizDaily, a division of Emerald X, LLC. You may NOT copy this report, or make public the data and facts contained herein, in part or in whole. For more copies or editorial permissions, contact CustomerService@MJBizDaily.com or call 720.213.5992 ext. 1.

MJBizDaily Buyers Guide Cannabis Retail

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COMPANY NAME

WEBSITE

Novopack™ Machinery

www.novopackus.com

Nspire by KC Store Fixtures

www.nspire.com

NUG

nug.com/

O2VAPE

www.o2vape.com

Obsidian Supply Inc

obsidiansupply.com

Oceanus lab

www.oceanuslab.com/

Once Again Nut Butter

www.oanb.com

OTC Candy Equipment

www.otc-candy.eu

Outlier Biopharma Inc.

www.outlierbiopharma.com/

P&L Sales Group, Inc.

plsalesgroup.com/

Pack Leader USA

www.packleaderusa.com

Pack3000

www.pack3000.com/home/

Pall Corporation - Food and Beverage

www.pall.com

Paper Tube Co.

www.papertube.co

PAQcase

www.paqcase.com/

Paragon Separation System

paragonseparationsystem.com/index_ en.html

Paxxo

www.paxxo.com

Paybotic

www.paybotic.com

Peak Season Botanicals

www.peakseasonbotanicals.com

Pearl Rolling Company

www.pearlrolling.com

PeopleGuru

www.peopleguru.com

Pharmco by Greenfield Global

go.pharmco.com/extraction/

Phoenix

www.phxpkg.com

PIC Solution Inc

www.pic-sfc.com

Pipp Horticulture

www.pipphorticulture.com/

Plan Automation LLC

planlp.com

Planet 13

www.planet13lasvegas.com

34 Copyright 2022, MJBizDaily, a division of Emerald X, LLC. You may NOT copy this report, or make public the data and facts contained herein, in part or in whole. For more copies or editorial permissions, contact CustomerService@MJBizDaily.com or call 720.213.5992 ext. 1.

MJBizDaily Buyers Guide Cannabis Retail

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COMPANY NAME

WEBSITE

Planet Canit, LLC

www.planetcanit.com

Plant Works Group by Vincent Corporation

www.vincentcorp.com/

Polar King International

polarking.com

PortaFab Corporation

www.portafab.com/

Powder - Nation

www.powdernation.com

Precision Elements LLC

precisionelements.com

PreRoll-Er

preroll-er.com/

Production Automation : Cantel Life Sciences

www.gotopac.com

PurCann Pharma

purcannpharma.com

Pure Hemp® & Smoking® Rolling Papers and Pre-Roll Cones

www.PureHemp.com

PuroGen Laboratories, LLC

www.purogen.com/

QUADREL LABELING SYSTEMS

www.quadrel.com

Quadro Engineering Corp.

www.quadroliquids.com

Range Marketing

www.rangemarketing.com

Rebelle

www.letsrebelle.com

Redlight Distro

www.pufffin.com

Republic Brands

www.ocbusa.com

Reusable Transport Packaging

reusabletranspack.com/

Revelry Supply

revelrysupply.com/

Ring Organic

www.ringorganic.com

Riverview Farms

growwithrvf.com/about-us

Rocket Seeds

www.rocketseeds.com

Roll The Life Premium Rolling Tips

www.rollthelife.com

RollPros

www.rollpros.com

Root Pouch

www.rootpouch.com

Rootseller Seeds

www.rootsellerseeds.com/

RotaChrom Technologies LLC.

www.rotachrom.com

35 Copyright 2022, MJBizDaily, a division of Emerald X, LLC. You may NOT copy this report, or make public the data and facts contained herein, in part or in whole. For more copies or editorial permissions, contact CustomerService@MJBizDaily.com or call 720.213.5992 ext. 1.

MJBizDaily Buyers Guide Cannabis Retail

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COMPANY NAME

WEBSITE

Royal 4 Systems

www.royal4.com/cannabis-software/

Royal Supply

www.RoyalSupplywholesale.com

Royale Botanicals

royale-botanicals.com

RXDco

www.rxdco.com

S10 Labs

s10labs.com

Sana Packaging

www.sanapackaging.com/

Sativa Science

sativa.science/

Sauce Terps

medicalterpenes.com

Savage Bros Co

www.savagebros.com

Savenseal.com ltd

www.humidi.co

Scales Plus

www.scalesplus.com/

Seed Tracker Technology

www.seedtracker.com/

Seidel GmbH & Co. KG

www.seidel.de/en/420/

SEMPERMED USA, INC.

www.sempermedusa.com/

Seven Point Packaging

www.sevenpointpackaging.com/

Shenzhen SPV Technology Co., Ltd

www.hbflavor.com

Shine Papers

shinerollingpapers.com/

Shivvers Manufacturing, Inc.

www.shivvers.com/hemp/

Sibu Sura Chocolates

sibusura.com

Sierra Bags LLC

www.sierrabags.com

Sin Semilla Gardens

www.facebook.com/profile. php?id=100008379528262

Smiss Technology Co.,Ltd

www.smisstech.com

Smokeisseurs

www.Smokeisseurs.com

Smokezilla

Smokezillashop.com

Smosi

www.smosibox.com

Snail Custom Rolling Papers

www.snailpapers.com

Sollich North America

sollichna.com

36 Copyright 2022, MJBizDaily, a division of Emerald X, LLC. You may NOT copy this report, or make public the data and facts contained herein, in part or in whole. For more copies or editorial permissions, contact CustomerService@MJBizDaily.com or call 720.213.5992 ext. 1.

MJBizDaily Buyers Guide Cannabis Retail

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COMPANY NAME

WEBSITE

SonEx Labs

sonexlabs.us

Sorbent Technologies

www.sorbtech.com

Spectrum Global Enterprises, Inc.

spectrumlighters.com/

Split Lite Co.

splitliteco.com/

Square One Starts

www.square1starts.com/wordpress1/

SSE Group, LLC

www.ssegroupllc.com/

Stanley Brothers

www.recreatecannabis.com

START International

www.startinternational.com

STAT Shots LLC

acadianaplastics.com/products/statvials/

Stephen Gould Corporation

www.safelylock.com

STICK IT LABS LTD.

www.stickit-labs.com

STM Canna

stmcanna.com

Stölzle Glass USA

www.stoelzle.com/pharma/

STRAIN

thestrainapp.com

Stuffed & Stacked

stuffednstacked.com

Summit Research

www.summit-research.tech

Sunset Packaging by Fluted Partition

sunsetpackaging.net

Swisher International

hempire.com

T4 Manufacturing Inc.

T4FC.com

Take-a-Label, Inc

www.take-a-label.com

Tauriga Sciences Inc.

tauriga.com/

Taylor

www.thepouchhouse.com

TCF Sales

www.tcfsales.com

TEKLYNX

teklynx.com

Temeka Group Inc

www.temekagroup.com

Terpene Belt Processing LLC

terpenebeltfarms.com

Texas Barcode Systems

www.texasbarcode.com

37 Copyright 2022, MJBizDaily, a division of Emerald X, LLC. You may NOT copy this report, or make public the data and facts contained herein, in part or in whole. For more copies or editorial permissions, contact CustomerService@MJBizDaily.com or call 720.213.5992 ext. 1.

MJBizDaily Buyers Guide Cannabis Retail

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COMPANY NAME

WEBSITE

Thar Process

www.tharprocess.com

THC Label Solutions

thclabelsolutions.com/

THC Living

www.THCLIVING.COM

The Blinc Group

www.theblincgroup.com

The Cones Factory

theconesfactory.com

The Flavor Co.

cdxxflavors.com

The Packaging Company

www.thepkgco.com

The REVOLVER

www.therevolver.store/

The Strainrite Companies

www.strainrite.com/

The Terpene Store

www.theterpenestore.com

THiCket

www.thicketnow.com/

Thomas Packaging

www.thomaspackaging.com

Thompson Duke Industrial, LLC

thompsondukeindustrial.com

Tilt Holdings

www.jupiteresearch.com

Tomric Systems, Inc.

www.tomric.com/

TOQi

mytoqi.com/

Trade Show USA,Inc.

www.Cigarettesmachine.com

Transpring Technology

www.transpring.com

Treeform Packaging Solutions LLC

www.treeformpackaging.com/

Treez

www.treez.io

TRI Innovations

www.tri-usa.com

Trilogene Seeds

www.TrilogeneSeeds.com

Triverity Laboratories

www.triveritylabs.com

Trojan Horse Cannabis

TrojanHorseCannabis.com

True Liberty Bags

www.truelibertybags.com

True Terpenes

trueterpenes.com/

Truffly Made

trufflymade.com

38 Copyright 2022, MJBizDaily, a division of Emerald X, LLC. You may NOT copy this report, or make public the data and facts contained herein, in part or in whole. For more copies or editorial permissions, contact CustomerService@MJBizDaily.com or call 720.213.5992 ext. 1.

MJBizDaily Buyers Guide Cannabis Retail

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COMPANY NAME

WEBSITE

uKera Lab

www.ukeratech.com

Union Standard Equipment

unionmachinery.com

United Label

www.unitedlabel.com

United Strains of America

unitedstrainsofamerica.com/

Uniti - V Syndicate

vsyndicate.com

Vape Beast LLC

Vapebeastnj.com

Vape Gear

www.vapegear.us

VapeEZ USA

www.myvapeez.com/

Vape-Jet

www.vape-jet.com

Vaper Tip

www.vapertip.com/

VC999 Packaging Systems

vc999.com

Vector Molds

www.vectormolds.com

Vegalab S.A.

www.vegalab.com/

Ventiv Design

www.ventiv.design

Verde Financial Solutions

verderetail.com

Virtual Packaging

virtualpackaging.com

Vist Labs LLC

vistlabs.com/

Visual Elements

www.visual-elements.ca/

VIVE CBD

www.vivecbd.com

Voon Innovation

getvoon.com

W.G.F.T Cannabis Genetics

www.weedguardiansfamilytree.com/

We Architects Group

www.WeArchitectsGroup.com

Weber Packaging Solutions, Inc.

www.weberpackaging.com

Welch Vacuum by Ingersoll Rand

www.welchvacuum.com

WIPOTEC-OCS

www.wipotec-ocs.com/us/

WizardPins

wizardpins.com/

Wolfgang Enterprise, Inc.

fhpkg.com

39 Copyright 2022, MJBizDaily, a division of Emerald X, LLC. You may NOT copy this report, or make public the data and facts contained herein, in part or in whole. For more copies or editorial permissions, contact CustomerService@MJBizDaily.com or call 720.213.5992 ext. 1.

MJBizDaily Buyers Guide Cannabis Retail

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COMPANY NAME

WEBSITE

WRH Industries, Ltd.

www.wrh.net

XACT

xactlife.com

Xylem Technologies

xylemtech.com

Yamato Corp

YamatoAmericas.com

Your CBD Store

cbdrx4u.com/

YUZU CBD PLUS

www.yuzucbdplus.com

Zelira Therapeutics

www.zeliratx.com

Zig Zag

wholesale.zigzag.com

Zodiak's Moonrock

zodiaksmoonrock.com/

ZUNA INC

www.zunaco.com

40 Copyright 2022, MJBizDaily, a division of Emerald X, LLC. You may NOT copy this report, or make public the data and facts contained herein, in part or in whole. For more copies or editorial permissions, contact CustomerService@MJBizDaily.com or call 720.213.5992 ext. 1.