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Several States Call for Renewed Cannabis Legalization Efforts, New Jersey Makes Changes to Adult-Use Bill: Week in Review

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After Democrats secured the majority in the U.S. Senate following the Jan. 5 Georgia Senate runoff election, many in the cannabis industry are undoubtedly wondering how the shift in power might affect federal reform efforts.

“The Senate flipping from red to blue is a huge green light for cannabis policy,” Melissa Kuipers Blake, an attorney with Brownstein Hyatt Farber Schreck, tells Cannabis Business Times and Cannabis Dispensary. “[Incoming Majority] Leader [Chuck] Schumer has long been an advocate of cannabis reform, particularly the MORE Act, and we expect him to act on comprehensive cannabis reform in the coming year.”

RELATED: How U.S. House, Senate Results Could Influence Cannabis Legislation

According to Kris Krane, founder and president of 4Front Ventures, the parent company of Mission Dispensaries, the Democrats taking control of the Senate “changes things completely.”

“It’s an entirely different calculus now in terms of what we can get accomplished at the federal level than it was just a few days ago, when it looked like we’d be looking at the prospects of the Biden administration and a Republican Senate,” Krane tells Cannabis Business Times and Cannabis Dispensary.

RELATED: What Would a Joe Biden Presidency Mean for the Cannabis Industry?

With a Republican-controlled Senate, Krane says passing the Secure and Fair Enforcement (SAFE) Banking Act appeared somewhat likely, and while the legislation’s efforts to increase the industry’s access to banking would be a welcome change, significant, long-lasting changes in federal law seemed out of reach.

Now, with Democrats at the helm of a unified government in Washington, Krane says the industry has a chance at real federal reform, possibly for the first time ever.

Incoming Senate Majority Leader Chuck Schumer has indicated that he wants to make cannabis legalization a priority, Krane says, and House Speaker Nancy Pelosi has been historically receptive to reform efforts.

The House passed the SAFE Banking Act as a standalone bill in 2019 (and again as part of a COVID-19 relief bill in May), and also approved the Marijuana Opportunity Reinvestment and Expungement (MORE Act) last month to federally deschedule cannabis.

“I think we now have a possibility for major federal reform, including descheduling and legalization, that we’ve frankly never seen before,” Krane says.

These descheduling and legalization efforts are likely to include social equity and social justice provisions, Kuipers Blake adds.

“It’s important to remember the social equity component of cannabis reform, which the Democrats have made a priority, and we don’t expect that to change,” she says. “So, there’s also an opportunity for cannabis reform to be coupled with criminal justice reform.”

However, according to Krane, it remains to be seen what legislation like the MORE Act and SAFE Banking Act will ultimately look like in the new Congress.

“I think the MORE Act is going to be the basis for whatever type of comprehensive reform the Democrats want to push,” he says. “That said, I don’t know … if the bill that does end up getting pushed and getting passed will be the MORE Act as it’s currently written.”

Lawmakers may spend more time fine-tuning the details of the legislation now that it has a chance of being considered in the Senate, Krane says.

“The details are really important if it can actually pass versus if it can’t, if it’s a symbolic piece of legislation,” he says. “My guess is that the MORE Act serves as the foundation for a broader descheduling bill. What that ultimately looks like, I don’t think we know yet, but I don’t think it’ll be exactly the MORE Act.”

Krane predicts that the SAFE Banking Act will make it through Congress as standalone legislation much quicker than a descheduling bill like the MORE Act will, as lawmakers may see banking reform as low-hanging fruit that Republicans can throw support behind.

“That’s where the debate’s really going to fall, is how far do they go first?” Krane says, adding that an exact timeline for federal cannabis reform remains unclear as Congress continues to grapple with the COVID-19 pandemic and other high-priority issues. However, he says lawmakers will likely get some sort of major reform legislation through Congress within the next two years, before the midterm elections in 2022, which could shift the power in one or more houses of Congress back to the Republicans.

In the meantime, Krane advises cannabis businesses to start preparing for the possibility of banking reform and even changes to 280E, which could come before any major descheduling or legalization efforts make it through Congress.

Businesses should also consider donating to the advocacy groups that are working to push these reforms through Congress, Krane says.

“I think we have an obligation to step up and support the groups that can represent us and get this done because this is it—we’ve got two years to get it done,” he says. “If we don’t get it done in these two years, who knows when we’re going to have another window to potentially see these types of reforms. This has to be an all-in effort on the part of the industry and the movement, and the industry needs to step up and support the organizations that are working on this stuff in D.C. Again, if it doesn’t happen now—this is our window, and it may never happen again.”

What Does a Democrat-Controlled Senate Mean for Federal Cannabis Policy Reform?

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After Democrats secured the majority in the U.S. Senate following the Jan. 5 Georgia Senate runoff election, many in the cannabis industry are undoubtedly wondering how the shift in power might affect federal reform efforts.

“The Senate flipping from red to blue is a huge green light for cannabis policy,” Melissa Kuipers Blake, an attorney with Brownstein Hyatt Farber Schreck, tells Cannabis Business Times and Cannabis Dispensary. “[Incoming Majority] Leader [Chuck] Schumer has long been an advocate of cannabis reform, particularly the MORE Act, and we expect him to act on comprehensive cannabis reform in the coming year.”

RELATED: How U.S. House, Senate Results Could Influence Cannabis Legislation

According to Kris Krane, founder and president of 4Front Ventures, the parent company of Mission Dispensaries, the Democrats taking control of the Senate “changes things completely.”

“It’s an entirely different calculus now in terms of what we can get accomplished at the federal level than it was just a few days ago, when it looked like we’d be looking at the prospects of the Biden administration and a Republican Senate,” Krane tells Cannabis Business Times and Cannabis Dispensary.

RELATED: What Would a Joe Biden Presidency Mean for the Cannabis Industry?

With a Republican-controlled Senate, Krane says passing the Secure and Fair Enforcement (SAFE) Banking Act appeared somewhat likely, and while the legislation’s efforts to increase the industry’s access to banking would be a welcome change, significant, long-lasting changes in federal law seemed out of reach.

Now, with Democrats at the helm of a unified government in Washington, Krane says the industry has a chance at real federal reform, possibly for the first time ever.

Incoming Senate Majority Leader Chuck Schumer has indicated that he wants to make cannabis legalization a priority, Krane says, and House Speaker Nancy Pelosi has been historically receptive to reform efforts.

The House passed the SAFE Banking Act as a standalone bill in 2019 (and again as part of a COVID-19 relief bill in May), and also approved the Marijuana Opportunity Reinvestment and Expungement (MORE Act) last month to federally deschedule cannabis.

“I think we now have a possibility for major federal reform, including descheduling and legalization, that we’ve frankly never seen before,” Krane says.

These descheduling and legalization efforts are likely to include social equity and social justice provisions, Kuipers Blake adds.

“It’s important to remember the social equity component of cannabis reform, which the Democrats have made a priority, and we don’t expect that to change,” she says. “So, there’s also an opportunity for cannabis reform to be coupled with criminal justice reform.”

However, according to Krane, it remains to be seen what legislation like the MORE Act and SAFE Banking Act will ultimately look like in the new Congress.

“I think the MORE Act is going to be the basis for whatever type of comprehensive reform the Democrats want to push,” he says. “That said, I don’t know … if the bill that does end up getting pushed and getting passed will be the MORE Act as it’s currently written.”

Lawmakers may spend more time fine-tuning the details of the legislation now that it has a chance of being considered in the Senate, Krane says.

“The details are really important if it can actually pass versus if it can’t, if it’s a symbolic piece of legislation,” he says. “My guess is that the MORE Act serves as the foundation for a broader descheduling bill. What that ultimately looks like, I don’t think we know yet, but I don’t think it’ll be exactly the MORE Act.”

Krane predicts that the SAFE Banking Act will make it through Congress as standalone legislation much quicker than a descheduling bill like the MORE Act will, as lawmakers may see banking reform as low-hanging fruit that Republicans can throw support behind.

“That’s where the debate’s really going to fall, is how far do they go first?” Krane says, adding that an exact timeline for federal cannabis reform remains unclear as Congress continues to grapple with the COVID-19 pandemic and other high-priority issues. However, he says lawmakers will likely get some sort of major reform legislation through Congress within the next two years, before the midterm elections in 2022, which could shift the power in one or more houses of Congress back to the Republicans.

In the meantime, Krane advises cannabis businesses to start preparing for the possibility of banking reform and even changes to 280E, which could come before any major descheduling or legalization efforts make it through Congress.

Businesses should also consider donating to the advocacy groups that are working to push these reforms through Congress, Krane says.

“I think we have an obligation to step up and support the groups that can represent us and get this done because this is it—we’ve got two years to get it done,” he says. “If we don’t get it done in these two years, who knows when we’re going to have another window to potentially see these types of reforms. This has to be an all-in effort on the part of the industry and the movement, and the industry needs to step up and support the organizations that are working on this stuff in D.C. Again, if it doesn’t happen now—this is our window, and it may never happen again.”

Illinois Lawmakers to Create 75 New Cannabis Retail Licenses

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The state of Michigan has passed a law allowing veterinarians to consult with pet owners on using marijuana or hemp—including cannabidiol (CBD)—products for their animals.

Michigan Gov. Gretchen Whitmer signed H.B. 5085 into law in late December 2020.

According to a legislative analysis of the new law, veterinarians were previously unable to consult with pet owners on the use of marijuana or hemp. This law would open up their freedom to either recommend or advise against giving animals cannabis in various forms.

“The current restriction on veterinarians’ ability to discuss the benefits, as well as the risks, of treatments for pets derived from marijuana or industrial hemp results in incomplete and inadequate pet health care,” the legislative analysis says. “Allowing veterinarians to become a trusted source of information, in a marketplace with many competing and confusing claims, would ultimately benefit both pets’ health and their owners’ peace of mind.”

Michigan’s law currently bans selling CBD animal and pet feed products, including pet treats. However, residents in the state can add CBD products, like oils, to their pet’s food, according to the Michigan Department of Agriculture and Rural Development. The agency notes that “safe levels for animal consumption have not been established.”

A report released in February 2020 by Nielsen, a global data analytics company, and Headset, a data and analytics service provider for the legal cannabis industry, showed projected growth in the pet CBD market. The report found that hemp-based CBD pet products will represent 3-5% of all hemp CBD sales in the U.S. by 2025. Other findings from that report include:

  • 74% of CBD consumers have pets.
  • Pet products have accounted for nearly $10 million in sales at regulated adult-use cannabis retailers in California, Colorado, Nevada and Washington combined (Q1 2018 through Q3 2019).
  • The average price per pound for CBD dog treats is twice that of the average dog treat.
  • About one in four pet owners uses hemp-CBD either for themselves, their pet(s), or for both.

 

First Cannabis Safety & Quality Certificates Issued to Curaleaf and One Plant

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PRESS RELEASE–St. Louis, Mo. (Jan. 7, 2020)–Cannabis Safety & Quality (CSQ) has awarded the first CSQ Certifications to Curaleaf, a leading U.S. provider of consumer products in cannabis, and Florida-based retailer, One Plant. The CSQ Certification Program and applicable standards aim to serve as protection for these brands by minimizing the risk and ensuring regulatory requirements are met from seed-to-sale. The standards were built in 2020 to meet ISO requirements and Global Food Safety Initiative (GFSI) requirements.

“We are thrilled to have Curaleaf and One Plant as the first of many industry-leading brands putting compliance and quality first with CSQ’s stamp of approval,” said Tyler Williams, founder and chief technical officer of CSQ. “Obtaining third-party certifications like ours helps lay the groundwork for a more self-regulated industry that continuously produces safe and reliable products for patients and consumers.”

CSQ’s licensed third-party auditors, technical directors, and consultants have been training since the beginning of December 2020 to make these pilot audit certifications possible. Both companies were reviewed under the “Manufacturing and Infusion of Cannabis into Food & Beverage Products” standard, which applies to the addition of cannabis flower or cannabis derivatives into shelf-stable food and beverage products. This standard is one of four total standards within CSQ that are breaking new ground as part of the world’s first cannabis certification program meeting the GFSI requirements, set to be benchmarked in 2022. Additional standards include:

●       Growing and Cultivation of Cannabis Plants

●       Manufacturing and Extraction of Cannabis

●       Manufacturing of Cannabis Dietary Supplements

​Based in Florida, One Plant specializes in responsibly farmed cannabis. One Plant currently operates a state-of-the-art Nexus greenhouse, a full lab, and seven retail locations with five new locations coming soon. One Plant also operates a robust, ecommerce driven, next-day Statewide delivery model. Cultivators and manufacturers like One Plant that get certified are less likely to have a recall, endure a regulatory warning, or a voluntary withdrawal.

Curaleaf is a vertically integrated, high-growth cannabis operator known for quality, expertise, and reliability. Curaleaf and its brands, including Curaleaf and Select, provide industry-leading service, product selection, and accessibility across the medical and adult-use markets. Curaleaf currently operates in 23 states with 95 dispensaries, 22 cultivation sites, and over 30 processing sites.

A benefit for leading retailers like Curaleaf would also include peace of mind when working with suppliers who receive third-party audits. Eventually, dispensaries will have the capability to hand-pick new suppliers using CSQ’s searchable database to determine whether or not the supplier is compliant.

The Evolution of Cannabis Entrepreneurship

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Cannabis presents a plethora of challenges for entrepreneurs not seen in more traditional industries. Akin to the dot-com boom of the early 2000s, the cannabis industry has seen an astonishing flurry of business over the past decade. Within this dynamic landscape, new cannabis companies come and go on a near-daily basis.

To capitalize on novel markets’ potential, hopeful entrepreneurs from all walks of life have “jumped headfirst” into the cannabis space. This new breed of entrepreneurs must not only be smart, but they must also be challenging. Yet, as the cannabis industry evolves under the forces of legalization and innovation, our understanding of what defines cannabis entrepreneurs continues to change.

Cannabis businesses are shaped by the regulations, challenges and opportunities of specific market niches. As such, cannabis entrepreneurs have evolved with the environments in which they do business.

California & Proposition 215   

California paved the way for the industry of today by legalizing medical cannabis in 1995. Since the passage of historic Proposition 215, cannabis has continued to gain momentum across the globe. This progress has happened through the visions and hard work of small business owners.

The early days of legal cannabis in California are now criticized for their lack of regulation. During the late 1990s and early 2000s, all you needed to start a cultivation business in California was a place to grow a garden. While early dispensaries did need local business licenses, they could legally purchase and sell untested products from unlicensed growers.

The genealogy of the modern cannabis industry can be traced directly back to the days of California’s Prop 215. During this era, the first cannabis dispensaries were founded – this model has since been replicated thousands of times. Also, the Prop 215 model gave rise to America’s first legal, commercial cannabis farms.

Cannabis entrepreneurs in California’s medical space focused primarily on developing the blueprints for a brand-new industry. To this end, they did not have the time or luxury to finetune the businesses for such things as operational efficiency and brand awareness. Even more, these people did not have to deal with such complexities as employee screening, product testing and seed-to-sale tracking.

Medical Cannabis Entrepreneurs

New medical markets stand in stark contrast to those seen in the early days of California. To this end, today’s medical markets operate within a web of stringent government regulations. For entrepreneurs, these rules set forth major emphases on both compliance and technology.

The Pennsylvania medical cannabis industry provides an excellent platform for understanding how the regulatory system of a market shapes entrepreneurial paths. For instance, medical cannabis cards are only issued to patients that meet the minimum criteria of 23 qualifying conditions, including severe conditions like aids, cancer and epilepsy. Beyond that, cannabis dispensaries in Pennsylvania must meet a slew of challenging criteria to operate and pay large sums of money in licensing fees.

To handle the regulatory requirements in places like Pennsylvania and remain profitable, medical cannabis entrepreneurs are incredibly dependent on technology. To this end, dispensaries utilize point-of-sale (POS) and seed-to-sale software to track inventory and stay compliant carefully. Even more, they use state-of-the-art security systems to safeguard their operations.

Cannabis entrepreneurs in medical markets must be able to run compliant operations and support their businesses with requisite technology. These elements stand in stark contradiction to the “wild west” mentality that pervaded the early industry. As such, it’s safe to assume that the rules of today’s markets force entrepreneurs to be more professional than in the days of CA Prop 215.

Adult-Use Cannabis Entrepreneurs

The most considerable difference between medical and adult-use cannabis companies has to do with their available customer base. Importantly, adult-use cannabis companies are only bound by minimum age requirements and state borders. Furthermore, limited restrictions on licensing create highly competitive markets that require sophisticated sales and marketing operations.

As there are no limits on potential customers, and limited regulations on license counts, business opportunities in adult-use markets are primarily directed by supply and demand rules. Because competition is the driving force in adult-use markets, entrepreneurs in this vertical have a good deal in common with peers outside the cannabis industry.

Perhaps the most defining characteristic of adult-use entrepreneurs is an emphasis on branding and marketing. As adult-use markets mature in places like Colorado, a phenomenon known as “brand concentration” occurs when a few companies come to dominate a majority of the market. As smaller companies fight for market share, they must develop professional brands that appeal to a broad customer base.

Cannabis entrepreneurs in adult-use markets must master the skills required in medical cannabis while also expanding their knowledge base in modern business dealings. Of these, the development of professional brands is one of the most defining characteristics of adult-use entrepreneurs.

It’s astonishing to see how much the cannabis industry has grown and matured looking back just a few short years. As business opportunities come about with new legalization efforts, entrepreneurs quickly rise to take advantage of untapped markets. As the cannabis business continues to evolve with the times, entrepreneurs must pivot to stay compliant, relevant and successful.

While the early Prop 215 market in California barely resembles today’s industry, it’s important to remember where we came from. Namely, our understanding of the contemporary cannabis business results from everyone who came before us. As the industry progresses, we will continue to complement established best practices with the requisite innovations that come with new opportunities.

‘Cleanup’ Bill Gets NJ Closer to Legalization and Decriminalization of Cannabis, with Some Changes to Consequences for Youth

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The state of Michigan has passed a law allowing veterinarians to consult with pet owners on using marijuana or hemp—including cannabidiol (CBD)—products for their animals.

Michigan Gov. Gretchen Whitmer signed H.B. 5085 into law in late December 2020.

According to a legislative analysis of the new law, veterinarians were previously unable to consult with pet owners on the use of marijuana or hemp. This law would open up their freedom to either recommend or advise against giving animals cannabis in various forms.

“The current restriction on veterinarians’ ability to discuss the benefits, as well as the risks, of treatments for pets derived from marijuana or industrial hemp results in incomplete and inadequate pet health care,” the legislative analysis says. “Allowing veterinarians to become a trusted source of information, in a marketplace with many competing and confusing claims, would ultimately benefit both pets’ health and their owners’ peace of mind.”

Michigan’s law currently bans selling CBD animal and pet feed products, including pet treats. However, residents in the state can add CBD products, like oils, to their pet’s food, according to the Michigan Department of Agriculture and Rural Development. The agency notes that “safe levels for animal consumption have not been established.”

A report released in February 2020 by Nielsen, a global data analytics company, and Headset, a data and analytics service provider for the legal cannabis industry, showed projected growth in the pet CBD market. The report found that hemp-based CBD pet products will represent 3-5% of all hemp CBD sales in the U.S. by 2025. Other findings from that report include:

  • 74% of CBD consumers have pets.
  • Pet products have accounted for nearly $10 million in sales at regulated adult-use cannabis retailers in California, Colorado, Nevada and Washington combined (Q1 2018 through Q3 2019).
  • The average price per pound for CBD dog treats is twice that of the average dog treat.
  • About one in four pet owners uses hemp-CBD either for themselves, their pet(s), or for both.

 

New Michigan Law Allows Veterinarians to Discuss Marijuana and CBD With Pet Owners

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The state of Michigan has passed a law allowing veterinarians to consult with pet owners on using marijuana or hemp—including cannabidiol (CBD)—products for their animals.

Michigan Gov. Gretchen Whitmer signed H.B. 5085 into law in late December 2020.

According to a legislative analysis of the new law, veterinarians were previously unable to consult with pet owners on the use of marijuana or hemp. This law would open up their freedom to either recommend or advise against giving animals cannabis in various forms.

“The current restriction on veterinarians’ ability to discuss the benefits, as well as the risks, of treatments for pets derived from marijuana or industrial hemp results in incomplete and inadequate pet health care,” the legislative analysis says. “Allowing veterinarians to become a trusted source of information, in a marketplace with many competing and confusing claims, would ultimately benefit both pets’ health and their owners’ peace of mind.”

Michigan’s law currently bans selling CBD animal and pet feed products, including pet treats. However, residents in the state can add CBD products, like oils, to their pet’s food, according to the Michigan Department of Agriculture and Rural Development. The agency notes that “safe levels for animal consumption have not been established.”

A report released in February 2020 by Nielsen, a global data analytics company, and Headset, a data and analytics service provider for the legal cannabis industry, showed projected growth in the pet CBD market. The report found that hemp-based CBD pet products will represent 3-5% of all hemp CBD sales in the U.S. by 2025. Other findings from that report include:

  • 74% of CBD consumers have pets.
  • Pet products have accounted for nearly $10 million in sales at regulated adult-use cannabis retailers in California, Colorado, Nevada and Washington combined (Q1 2018 through Q3 2019).
  • The average price per pound for CBD dog treats is twice that of the average dog treat.
  • About one in four pet owners uses hemp-CBD either for themselves, their pet(s), or for both.

 

Break Up Vertical Integration | Cannabis Industry Journal

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Editor’s Note: This is an excerpt from chapter ten of From Seed to Success: How to Launch a Great Cannabis Cultivation Business in Record Time by Ryan Douglas. Douglas is founder of Ryan Douglas Cultivation, a cannabis cultivation consulting firm. He was Master Grower from 2013-2016 for Tweed, Inc., Canada’s largest licensed producer of medical cannabis and the flagship subsidiary of Canopy Growth Corporation.

Cultivation businesses should consider specializing in just one stage of the cannabis cultivation process. The industry has focused heavily on vertical integration, and some regulating bodies require licensees to control the entire cannabis value chain from cultivation and processing to retail. This requirement is not always in the best interest of the consumer or the business, and will likely change as the industry evolves. Not only will companies specialize in each step of the value chain, but we’ll see even further segmentation among growers that choose to focus on just one step of the cultivation process. Cannabis businesses that want to position themselves for future success should identify their strengths in the crop production process and consider specializing in just one part.

Ryan Douglas, former Master Grower for Tweed and author of From Seed to Success: How to Launch a Great Cannabis Cultivation Business in Record Time

Elsewhere in commercial horticulture, specialization is the norm. It is unlikely that the begonias you bought at your local garden shop spent their entire life inside that greenhouse. More likely, the plant spent time hopping between specialists in the production chain before landing on the retail shelf. One grower typically handles stock plant production and serves as a rooting station for vegetative cuttings. From there, rooted cuttings are shipped to a grower that cares for the plants during the vegetative stage. Once they’re an appropriate height for flowering, they’re shipped to the last grower to flower out and sell to retailers.

Cannabis businesses should consider imitating this model as a way to ensure competitiveness in the future. In the US, federal law does not yet allow for the interstate transport of plants containing THC, but the process can be segmented within states where vertical integration is not a requirement. As we look ahead to full federal legalization in the US, we should anticipate companies abandoning the vertical integration model in favor of specialization. In countries where cannabis cultivation is federally legal, entrepreneurs should consider specialization from the moment they begin planning their business.

Cultivators that specialize in breeding and genetics could sell seeds, rooted cuttings, and tissue culture services to commercial growers. Royalties could provide a recurring source of income after the initial sale of seeds or young plants. Contracting propagation activities to a specialist can result in consistently clean rooted cuttings that arrive certified disease-free at roughly ¼ the cost of producing them in-house. This not only frees up space at the recipient’s greenhouse and saves them money, but it eliminates the risks inherent in traditional mother plant and cloning processes. If a mother plant becomes infected, all future generations will exhibit that disease, and the time, money, energy, labor, and space required to maintain healthy stock plants is substantial. Growers that focus on large scale cultivation would do well to outsource this critical step.

From Seed to Success: How to Launch a Great Cannabis Cultivation Business in Record Time

Intermediary growers could specialize in growing out seeds and rooted cuttings into mature plants that are ready to flower. These growers would develop this starter material into healthy plants with a strong, vigorous root system. They would also treat the plants with beneficial insects and inoculate the crop with various biological agents to decrease the plant’s susceptibility to pest and disease infestations. Plants would stay with this grower until they are about six to 18 inches in height—the appropriate size to initiate flowering.

The final stage in the process would be the flower grower. Monetarily, this is the most valuable stage in the cultivation process, but it’s also the most expensive. This facility would have the proper lighting, plant support infrastructure, and environmental controls to ensure that critical grow parameters can be tightly maintained throughout the flowering cycle. The grower would be an expert in managing late-stage insect and disease outbreaks, and they would be cautious not to apply anything to the flower that would later show up on a certificate of analysis (COA), rendering the crop unsaleable. This last stage would also handle all harvest and post-harvest activities—since shipping a finished crop to another location is inefficient and could potentially damage the plants.

As the cannabis cultivation industry normalizes, so, too, will the process by which the product is produced. Entrepreneurs keen on carving out a future in the industry should focus on one stage of the cultivation process, and excel at it.

Virginia Lawmaker Reintroduces Bill to Legalize Adult-Use Cannabis

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TORONTO and PORT WASHINGTON, N.Y., Jan. 05, 2021 (GLOBE NEWSWIRE) — PRESS RELEASE — North America’s first research and development facility dedicated to advancing cannabis cultivation techniques and systems has been completed by The Flowr Corporation and Hawthorne Canada Limited. Hawthorne is a subsidiary of the Hawthorne Gardening Company division of The Scotts Miracle-Gro Company. Scotts Miracle-Gro is a marketer of branded consumer lawn and garden products and indoor growing solutions. Flowr cultivates and sells premium cannabis to medical and adult-use markets in Canada, Europe and Australia.

Located on Flowr’s cultivation campus in Kelowna, British Columbia, Canada, the R&D Center includes laboratories, indoor grow suites and training areas in a single building. Flowr will test cultivation systems and techniques using Hawthorne’s lighting, fertilization and irrigation systems, growing mediums, and research protocols. In addition, Flowr intends to focus its own research on cannabis genetics and integrated growing systems in line with its goal of delivering premium quality cannabis products through highly efficient cultivation.

“We built Hawthorne to help cultivators of all sizes grow quality plants with high levels of efficiency and consistency. Completing the industry’s only dedicated R&D facility gives us a distinct advantage. We will leverage Flowr’s cultivation expertise and our technical capabilities into real world testing and results that will make a difference to growers,” said Chris Hagedorn, SVP & General Manager of Hawthorne Gardening. “We are proud of this collaboration with Flowr, a leading international cannabis company, with extensive growing experience indoors, in greenhouses and at-scale outdoors. Flowr is also one of a few companies that have had experience growing diverse genetics in different countries. We believe this experience will benefit our companies and the growers we serve.”

“The completion of the R&D Center brings our work with Hawthorne fully to life and will help keep both companies on the leading edge of cannabis cultivation for years to come,” commented Lance Emanuel, President and Interim Chief Executive Officer of Flowr. “Operationalizing the R&D Center is a major accomplishment for our organization and strengthens our competitive advantage in cultivation. We believe the long-term success of Flowr will be rooted in our ability to maximize the cannabinoid and terpene expression of genetics without sacrificing yield. The work we will do at the R&D Center will help us build upon the success we’ve had producing high quality, premium cannabis like our award-winning, flagship-strain BC Pink Kush beloved by budtenders and consumers throughout Canada. Leveraging our work at the R&D Center will be imperative to our eventual entry into the United States once federally permissible by law.”

The R&D Center is the centerpiece of a strategic R&D partnership formed by Flowr and Hawthorne in March 2018. It brings two of the world’s leading experts together to be at the forefront of cannabis cultivation. The operations will be led by Dr. Deron Caplan, the first person in North America to earn a PhD focused on cannabis cultivation and production. Caplan was awarded his doctorate by the University of Guelph in August 2018 and is Flowr’s Director of Research and Development. The R&D Center will be staffed by Flowr’s scientists, five of whom have PhDs in various plant biology, plant genetics and plant biochemistry disciplines. Hawthorne R&D will lead the research design and methodology.

All requisite licensing from Health Canada has been obtained by Flowr and the expectation is that the R&D Center will be operating at full capacity in Spring 2021. Research has already begun conducting growing trials at scale using Hawthorne products.

Connecticut Governor Says Cannabis Legalization Is a Priority for New Legislative Session

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TORONTO and PORT WASHINGTON, N.Y., Jan. 05, 2021 (GLOBE NEWSWIRE) — PRESS RELEASE — North America’s first research and development facility dedicated to advancing cannabis cultivation techniques and systems has been completed by The Flowr Corporation and Hawthorne Canada Limited. Hawthorne is a subsidiary of the Hawthorne Gardening Company division of The Scotts Miracle-Gro Company. Scotts Miracle-Gro is a marketer of branded consumer lawn and garden products and indoor growing solutions. Flowr cultivates and sells premium cannabis to medical and adult-use markets in Canada, Europe and Australia.

Located on Flowr’s cultivation campus in Kelowna, British Columbia, Canada, the R&D Center includes laboratories, indoor grow suites and training areas in a single building. Flowr will test cultivation systems and techniques using Hawthorne’s lighting, fertilization and irrigation systems, growing mediums, and research protocols. In addition, Flowr intends to focus its own research on cannabis genetics and integrated growing systems in line with its goal of delivering premium quality cannabis products through highly efficient cultivation.

“We built Hawthorne to help cultivators of all sizes grow quality plants with high levels of efficiency and consistency. Completing the industry’s only dedicated R&D facility gives us a distinct advantage. We will leverage Flowr’s cultivation expertise and our technical capabilities into real world testing and results that will make a difference to growers,” said Chris Hagedorn, SVP & General Manager of Hawthorne Gardening. “We are proud of this collaboration with Flowr, a leading international cannabis company, with extensive growing experience indoors, in greenhouses and at-scale outdoors. Flowr is also one of a few companies that have had experience growing diverse genetics in different countries. We believe this experience will benefit our companies and the growers we serve.”

“The completion of the R&D Center brings our work with Hawthorne fully to life and will help keep both companies on the leading edge of cannabis cultivation for years to come,” commented Lance Emanuel, President and Interim Chief Executive Officer of Flowr. “Operationalizing the R&D Center is a major accomplishment for our organization and strengthens our competitive advantage in cultivation. We believe the long-term success of Flowr will be rooted in our ability to maximize the cannabinoid and terpene expression of genetics without sacrificing yield. The work we will do at the R&D Center will help us build upon the success we’ve had producing high quality, premium cannabis like our award-winning, flagship-strain BC Pink Kush beloved by budtenders and consumers throughout Canada. Leveraging our work at the R&D Center will be imperative to our eventual entry into the United States once federally permissible by law.”

The R&D Center is the centerpiece of a strategic R&D partnership formed by Flowr and Hawthorne in March 2018. It brings two of the world’s leading experts together to be at the forefront of cannabis cultivation. The operations will be led by Dr. Deron Caplan, the first person in North America to earn a PhD focused on cannabis cultivation and production. Caplan was awarded his doctorate by the University of Guelph in August 2018 and is Flowr’s Director of Research and Development. The R&D Center will be staffed by Flowr’s scientists, five of whom have PhDs in various plant biology, plant genetics and plant biochemistry disciplines. Hawthorne R&D will lead the research design and methodology.

All requisite licensing from Health Canada has been obtained by Flowr and the expectation is that the R&D Center will be operating at full capacity in Spring 2021. Research has already begun conducting growing trials at scale using Hawthorne products.