Cannabis News

Prior to the completion of the arrangement, 48North had outstanding one class of warrants to purchase 48North Shares listed on the TSX-V under the trading symbol ‘NRTH.WT.’ It is anticipated that the listed 48North warrants will be listed and commence trading on the Toronto Stock Exchange (TSX) under the symbol ‘HEXO.WT.A’ as of the opening of trading on Sept. 3, 2021. The listed 48North warrants will then remain listed on the TSX until the earliest to occur of their exercise, expiry or de-listing. HEXO has entered into a supplemental warrant indenture in respect of the Listed 48North warrants, a copy of which will be available on 48North’s and HEXO’s respective SEDAR profiles at www.sedar.com.

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It took recently inaugurated New York Gov. Kathy Hochul less than two weeks do what former Gov. Andrew Cuomo failed to accomplish in the five months following his signing of the Marijuana Regulation and Taxation Act (MRTA).

Hochul nominated former Drug Policy Alliance staffer Chris Alexander for executive director of the new Office of Cannabis Management (OCM) and former New York Assemblywoman Tremaine Wright for chair of the Cannabis Control Board (CCB) during a special legislative session that convened Sept. 1.

Hochul, who became New York’s first female governor last week—after Cuomo resigned following months of sexual harassment allegations—called for the session the previous day.

Established within New York’s Division of Alcoholic Beverage Control, the OCM will operate as an independent entity with exclusive jurisdiction to oversee not only the adult-use cannabis regulatory structure but also the state’s existing medical cannabis and hemp programs. The five-member CCB will govern the office.

Hours after Hochul announced her picks to head the OCM and CCB, the Senate confirmed her appointees. Now, after months of being stalled, MRTA’s authoritative arm is free to move forward with oversight infrastructure for licensure, cultivation, production, distribution, sale and taxation.

Drug Policy Alliance Executive Director Kassandra Frederique said in a statement she applauded the nominations.

Frederique said, “By moving swiftly to establish the adult-use cannabis program after delays under her predecessor and nominating leaders who have long been involved in the fight for marijuana justice in New York, Gov. Hochul is sending a strong signal that the landmark racial and economic justice provisions we fought so hard for in the Marijuana Regulation and Taxation Act will be taken seriously and implemented accordingly.”

Drug Policy Alliance

Alexander, a government relations and policy manager in the cannabis sector for the past year, spent 3 1/2 years as a policy coordinator at Drug Policy Alliance from 2015-2018 and was an associate counsel to the New York Senate from 2019-2020. A New York resident from Queens, he was involved in crafting MRTA to ensure it prioritized racial and economic justice.

As OCM executive director, Alexander will oversee certain powers in the industry, such as performing inspections of any premises where cannabis or hemp are manufactured, cultivated, processed, stored, distributed or sold; prescribing forms of applications for licenses, registrations and permits; coordinating across state agencies and departments; and the like.

“I worked over the last several years leading the effort, from a variety of perspectives, to end marijuana prohibition in the state and to bring about the new regulated market and diverse industry that we have jumpstarted today,” Alexander said at a Senate Finance Committee hearing Wednesday, before the full chamber approved him as the nominee.

“I have built and led the statewide campaign to end prohibition as the policy coordinator at the Drug Policy Alliance, where we assembled a coalition of advocates, educated communities across the state and pushed you all to consider what taxing and regulating cannabis could look like,” he said. “It was in that role that I began drafting what would become the Marijuana Regulation and Taxation Act and eventually the cannabis law.”

Also, in his work as a government relations and policy manager for Black-owned Village and sister-company Viola, Alexander said he’s seen first-hand the challenges experienced by entrepreneurs in the space, “particularly those of color,” who have limited access to capital and are asked to navigate a “jigsaw puzzle” of laws and regulations with little to no assistance.

Drug Policy Alliance

Meanwhile, Wright represented New York’s 56th District from 2017 through 2020. During that time, the Democrat from Brooklyn was the chair of the New York State Black, Puerto Rican, Hispanic and Asian Legislative Caucus. A University of Chicago Law School graduate, Wright was an associate with Paul Hastings and a staff attorney at Skadden, and she practiced as a public defender with Brooklyn Law Services.

Not to mention, Wright spent 14 years sitting on and chairing a local community planning board and 8 1/2 years as a coffee shop owner.

As CCB chairwoman, Wright will head a five-member board that has sole discretion to limit, or not to limit, the number of registrations, licenses and permits to be issued within the state in a manner that prioritizes social and economic equity applicants (with the goal of 50% awarded to such applicants), considers small business opportunities and concerns, avoids market dominance in sectors of the industry and reflects the demographics of the state. Among other functions, the board will also have discretion to issue, refuse to issue or revoke any registration, license or permit.

“This is one of those moments where we’re all coming together and we have an opportunity to create an entire industry from the bottom up, which will provide access as well as needs to people throughout this state and give them a way to participate in an industry which has the potential to be a tremendous economic engine here in our state,” Wright said during the Senate Finance Committee hearing Wednesday.

“In every single community throughout this state, cannabis has the potential to be a driver for communities to create opportunities, to create the outcomes and to shape the manner in which they want cannabis to play out in their community,” she said. “That’s what we need.”

In addition to her background as a state representative, lawyer and business owner, Wright is currently serving as New York’s first director of the Statewide Office of Financial Inclusion and Empowerment to help meet the financial services and needs of low- and middle-income New Yorkers.

Frederique said Wright and Alexander’s resumes speak from themselves.

“They both understand the deep harm that criminalization has caused to individuals and communities—especially communities of color—across the state,” Frederique said. “Their past work has reflected a commitment to working with people who have been directly impacted by prohibition and demonstrated a belief in evidence-based policies that center equity and justice.”

Democratic State Sen. Liz Krueger, the Finance Committee chair who sponsored MRTA, said in a statement she was extraordinarily pleased with the governor’s nominations.

“Their hard work, knowledge and dedication will ensure that the historic law we passed this year will be implemented the right way, with focus and equity that brings real benefits to the communities that have suffered the most under prohibition,” she said. “I am grateful to Gov. Hochul for demonstrating her seriousness of purpose and collaborative vision by moving swiftly to make such excellent nominations. The process of implementing MRTA has been delayed too long, but finally we are seeing some light at the end of the tunnel.”

OTTAWA and TORONTO, Sept. 01, 2021 (GLOBE NEWSWIRE) — PRESS RELEASE — HEXO Corp. and 48North Cannabis Corp. have announced that they have completed the previously announced arrangement, pursuant to which HEXO has acquired all of the issued and outstanding common shares of 48North by way of a court-approved plan of arrangement under the Canada Business Corporations Act.

Under the terms of the arrangement, each former shareholder of 48North is now entitled to receive 0.02366 of a common share in the capital of HEXO for each 48North Share held immediately prior to the completion of the arrangement. It is anticipated that the 48North Shares will be de-listed from the TSX Venture Exchange as of the close of trading on or about Sept. 2, 2021.

In order to receive the consideration, registered holders of 48North Shares will be required to deposit their share certificate(s) representing 48North Shares, together with a duly completed letter of transmittal, with TSX Trust Company, the depositary under the arrangement. Shareholders whose 48North Shares are registered in the name of a broker, dealer, bank, trust company or other nominee should contact their nominee regarding the receipt of the consideration.

Further information about the arrangement is set forth in the materials prepared by 48North in respect of the special meeting of 48North shareholders held on Aug. 17, 2021, which were mailed to 48North shareholders and filed under 48North’s profile on the System for Electronic Document Analysis and Retrieval (SEDAR) at www.sedar.com.

Warrants

OTTAWA and TORONTO, Sept. 01, 2021 (GLOBE NEWSWIRE) — PRESS RELEASE — HEXO Corp. and 48North Cannabis Corp. have announced that they have completed the previously announced arrangement, pursuant to which HEXO has acquired all of the issued and outstanding common shares of 48North by way of a court-approved plan of arrangement under the Canada Business Corporations Act.

Under the terms of the arrangement, each former shareholder of 48North is now entitled to receive 0.02366 of a common share in the capital of HEXO for each 48North Share held immediately prior to the completion of the arrangement. It is anticipated that the 48North Shares will be de-listed from the TSX Venture Exchange as of the close of trading on or about Sept. 2, 2021.

In order to receive the consideration, registered holders of 48North Shares will be required to deposit their share certificate(s) representing 48North Shares, together with a duly completed letter of transmittal, with TSX Trust Company, the depositary under the arrangement. Shareholders whose 48North Shares are registered in the name of a broker, dealer, bank, trust company or other nominee should contact their nominee regarding the receipt of the consideration.

Further information about the arrangement is set forth in the materials prepared by 48North in respect of the special meeting of 48North shareholders held on Aug. 17, 2021, which were mailed to 48North shareholders and filed under 48North’s profile on the System for Electronic Document Analysis and Retrieval (SEDAR) at www.sedar.com.

Warrants

Earlier this year, the Colorado Department of Public Health and Environment (CDPHE) announced a plan to introduce new testing rules for the state’s growing hemp industry. Under the new regulations, hemp products must be tested for residual solvents, heavy metals and pesticides, in addition to making sure they contain less than 0.3% THC.

The CDPHE are planning on a gradual rollout to prevent any supply chain issues or a lab testing bottleneck, similar to what we’ve seen in other states launching new testing requirements in years past, such as Arizona or California. Well, the Colorado rollout appears to be hitting similar snags and because of supply chain issues related to instruments and consumables in laboratories, the implementation of those testing rules is somewhat delayed. What was originally supposed to be implemented over the summer was pushed back to an October 1 deadline, and that deadline has now been pushed back to 2022.

As a result of supply chain shortages and the learning curve to test for such a wide range of pesticides, Colorado is opening hemp testing to out-of-state labs in an effort to stay on schedule with the rollout. Dillon Burns, lab manager at InfiniteCAL, a cannabis testing company with locations in California and Michigan, just completed an audit with the CDPHE in their work to get certified and start conducting hemp testing for businesses in Colorado.

Burns says they’re well-acquainted with the list of pesticides because of how similar the list is to California’s requirements. “For the pesticide testing rules that were supposed to go into effect on August 1^st, it’s basically the same list as California just with slightly different action levels,” says Burns. “I would say these action limits are generally stricter – they have much lower LOQs [limits of quantification].”

Come January 1, 2022, they are expecting an additional 40 pesticides to be required under the new rules. “But currently, it’s still unclear when these regulations will actually go into effect,” says Burns. The full pesticide testing list is currently slated to be implemented on April 1, 2022.

The supply chain issues referenced above have a lot to do with what the state is asking labs to test for. Previously, most of the pesticides tested for under Colorado’s adult use and medical cannabis programs could be analyzed with an LC/MS. A handful of pesticides on the new list do require GC/MS, says Burns. It’s entirely possible that a lot of labs in Colorado just don’t have a GC/MS or are in the process of training staff and developing methods for using the new instrument. “Cleanliness of these instruments is such a priority that it takes time to acquire the right skill set for it,” says Burns.

The new testing rollout isn’t just another compliance hurdle for the cannabis industry; these rules are about protecting public health. Dillon Burns said he’s seen hiccups in California with the amount of new hemp farmers getting into the space. “The hemp products we’ve tested in California often fail for pesticides,” says Burns. It’s a lot easier in most states to get a license for growing hemp than it would be for growing adult use cannabis. “You’ll see a lot more novice growers getting into hemp farming without a background in it. They’ll fail for things they just haven’t considered, like environmental drift. We see a lot of fails in CA. Hemp is bioaccumulating so it presents a lot of problems. If they’re not required to look for it, they weren’t monitoring it.”

When asked how the market might react to the new rules, Burns was confident that Colorado knows what they’re doing. “I don’t anticipate that [a testing bottleneck] happening here. The regulators are reasonable, supportive of the industry and opening it up to out-of-state labs should help in preventing that.”

It took recently inaugurated New York Gov. Kathy Hochul less than two weeks do what former Gov. Andrew Cuomo failed to accomplish in the five months following his signing of the Marijuana Regulation and Taxation Act (MRTA).

Hochul nominated former Drug Policy Alliance staffer Chris Alexander for executive director of the new Office of Cannabis Management (OCM) and former New York Assemblywoman Tremaine Wright for chair of the Cannabis Control Board (CCB) during a special legislative session that convened Sept. 1.

Hochul, who became New York’s first female governor last week—after Cuomo resigned following months of sexual harassment allegations—called for the session the previous day.

Established within New York’s Division of Alcoholic Beverage Control, the OCM will operate as an independent entity with exclusive jurisdiction to oversee not only the adult-use cannabis regulatory structure but also the state’s existing medical cannabis and hemp programs. The five-member CCB will govern the office.

Hours after Hochul announced her picks to head the OCM and CCB, the Senate confirmed her appointees. Now, after months of being stalled, MRTA’s authoritative arm is free to move forward with oversight infrastructure for licensure, cultivation, production, distribution, sale and taxation.

Drug Policy Alliance Executive Director Kassandra Frederique said in a statement she applauded the nominations.

Frederique said, “By moving swiftly to establish the adult-use cannabis program after delays under her predecessor and nominating leaders who have long been involved in the fight for marijuana justice in New York, Gov. Hochul is sending a strong signal that the landmark racial and economic justice provisions we fought so hard for in the Marijuana Regulation and Taxation Act will be taken seriously and implemented accordingly.”

Drug Policy Alliance

Alexander, a government relations and policy manager in the cannabis sector for the past year, spent 3 1/2 years as a policy coordinator at Drug Policy Alliance from 2015-2018 and was an associate counsel to the New York Senate from 2019-2020. A New York resident from Queens, he was involved in crafting MRTA to ensure it prioritized racial and economic justice.

As OCM executive director, Alexander will oversee certain powers in the industry, such as performing inspections of any premises where cannabis or hemp are manufactured, cultivated, processed, stored, distributed or sold; prescribing forms of applications for licenses, registrations and permits; coordinating across state agencies and departments; and the like.

“I worked over the last several years leading the effort, from a variety of perspectives, to end marijuana prohibition in the state and to bring about the new regulated market and diverse industry that we have jumpstarted today,” Alexander said at a Senate Finance Committee hearing Wednesday, before the full chamber approved him as the nominee.

“I have built and led the statewide campaign to end prohibition as the policy coordinator at the Drug Policy Alliance, where we assembled a coalition of advocates, educated communities across the state and pushed you all to consider what taxing and regulating cannabis could look like,” he said. “It was in that role that I began drafting what would become the Marijuana Regulation and Taxation Act and eventually the cannabis law.”

Also, in his work as a government relations and policy manager for Black-owned Village and sister-company Viola, Alexander said he’s seen first-hand the challenges experienced by entrepreneurs in the space, “particularly those of color,” who have limited access to capital and are asked to navigate a “jigsaw puzzle” of laws and regulations with little to no assistance.

Drug Policy Alliance

Meanwhile, Wright represented New York’s 56th District from 2017 through 2020. During that time, the Democrat from Brooklyn was the chair of the New York State Black, Puerto Rican, Hispanic and Asian Legislative Caucus. A University of Chicago Law School graduate, Wright was an associate with Paul Hastings and a staff attorney at Skadden, and she practiced as a public defender with Brooklyn Law Services.

Not to mention, Wright spent 14 years sitting on and chairing a local community planning board and 8 1/2 years as a coffee shop owner.

As CCB chairwoman, Wright will head a five-member board that has sole discretion to limit, or not to limit, the number of registrations, licenses and permits to be issued within the state in a manner that prioritizes social and economic equity applicants (with the goal of 50% awarded to such applicants), considers small business opportunities and concerns, avoids market dominance in sectors of the industry and reflects the demographics of the state. Among other functions, the board will also have discretion to issue, refuse to issue or revoke any registration, license or permit.

“This is one of those moments where we’re all coming together and we have an opportunity to create an entire industry from the bottom up, which will provide access as well as needs to people throughout this state and give them a way to participate in an industry which has the potential to be a tremendous economic engine here in our state,” Wright said during the Senate Finance Committee hearing Wednesday.

“In every single community throughout this state, cannabis has the potential to be a driver for communities to create opportunities, to create the outcomes and to shape the manner in which they want cannabis to play out in their community,” she said. “That’s what we need.”

In addition to her background as a state representative, lawyer and business owner, Wright is currently serving as New York’s first director of the Statewide Office of Financial Inclusion and Empowerment to help meet the financial services and needs of low- and middle-income New Yorkers.

Frederique said Wright and Alexander’s resumes speak from themselves.

“They both understand the deep harm that criminalization has caused to individuals and communities—especially communities of color—across the state,” Frederique said. “Their past work has reflected a commitment to working with people who have been directly impacted by prohibition and demonstrated a belief in evidence-based policies that center equity and justice.”

Democratic State Sen. Liz Krueger, the Finance Committee chair who sponsored MRTA, said in a statement she was extraordinarily pleased with the governor’s nominations.

“Their hard work, knowledge and dedication will ensure that the historic law we passed this year will be implemented the right way, with focus and equity that brings real benefits to the communities that have suffered the most under prohibition,” she said. “I am grateful to Gov. Hochul for demonstrating her seriousness of purpose and collaborative vision by moving swiftly to make such excellent nominations. The process of implementing MRTA has been delayed too long, but finally we are seeing some light at the end of the tunnel.”

It took recently inaugurated New York Gov. Kathy Hochul less than two weeks do what former Gov. Andrew Cuomo failed to accomplish in the five months following his signing of the Marijuana Regulation and Taxation Act (MRTA).

Hochul nominated former Drug Policy Alliance staffer Chris Alexander for executive director of the new Office of Cannabis Management (OCM) and former New York Assemblywoman Tremaine Wright for chair of the Cannabis Control Board (CCB) during a special legislative session that convened Sept. 1.

Hochul, who became New York’s first female governor last week—after Cuomo resigned following months of sexual harassment allegations—called for the session the previous day.

Established within New York’s Division of Alcoholic Beverage Control, the OCM will operate as an independent entity with exclusive jurisdiction to oversee not only the adult-use cannabis regulatory structure but also the state’s existing medical cannabis and hemp programs. The five-member CCB will govern the office.

Hours after Hochul announced her picks to head the OCM and CCB, the Senate confirmed her appointees. Now, after months of being stalled, MRTA’s authoritative arm is free to move forward with oversight infrastructure for licensure, cultivation, production, distribution, sale and taxation.

Drug Policy Alliance Executive Director Kassandra Frederique said in a statement she applauded the nominations.

Frederique said, “By moving swiftly to establish the adult-use cannabis program after delays under her predecessor and nominating leaders who have long been involved in the fight for marijuana justice in New York, Gov. Hochul is sending a strong signal that the landmark racial and economic justice provisions we fought so hard for in the Marijuana Regulation and Taxation Act will be taken seriously and implemented accordingly.”

Drug Policy Alliance

Alexander, a government relations and policy manager in the cannabis sector for the past year, spent 3 1/2 years as a policy coordinator at Drug Policy Alliance from 2015-2018 and was an associate counsel to the New York Senate from 2019-2020. A New York resident from Queens, he was involved in crafting MRTA to ensure it prioritized racial and economic justice.

As OCM executive director, Alexander will oversee certain powers in the industry, such as performing inspections of any premises where cannabis or hemp are manufactured, cultivated, processed, stored, distributed or sold; prescribing forms of applications for licenses, registrations and permits; coordinating across state agencies and departments; and the like.

“I worked over the last several years leading the effort, from a variety of perspectives, to end marijuana prohibition in the state and to bring about the new regulated market and diverse industry that we have jumpstarted today,” Alexander said at a Senate Finance Committee hearing Wednesday, before the full chamber approved him as the nominee.

“I have built and led the statewide campaign to end prohibition as the policy coordinator at the Drug Policy Alliance, where we assembled a coalition of advocates, educated communities across the state and pushed you all to consider what taxing and regulating cannabis could look like,” he said. “It was in that role that I began drafting what would become the Marijuana Regulation and Taxation Act and eventually the cannabis law.”

Also, in his work as a government relations and policy manager for Black-owned Village and sister-company Viola, Alexander said he’s seen first-hand the challenges experienced by entrepreneurs in the space, “particularly those of color,” who have limited access to capital and are asked to navigate a “jigsaw puzzle” of laws and regulations with little to no assistance.

Drug Policy Alliance

Meanwhile, Wright represented New York’s 56th District from 2017 through 2020. During that time, the Democrat from Brooklyn was the chair of the New York State Black, Puerto Rican, Hispanic and Asian Legislative Caucus. A University of Chicago Law School graduate, Wright was an associate with Paul Hastings and a staff attorney at Skadden, and she practiced as a public defender with Brooklyn Law Services.

Not to mention, Wright spent 14 years sitting on and chairing a local community planning board and 8 1/2 years as a coffee shop owner.

As CCB chairwoman, Wright will head a five-member board that has sole discretion to limit, or not to limit, the number of registrations, licenses and permits to be issued within the state in a manner that prioritizes social and economic equity applicants (with the goal of 50% awarded to such applicants), considers small business opportunities and concerns, avoids market dominance in sectors of the industry and reflects the demographics of the state. Among other functions, the board will also have discretion to issue, refuse to issue or revoke any registration, license or permit.

“This is one of those moments where we’re all coming together and we have an opportunity to create an entire industry from the bottom up, which will provide access as well as needs to people throughout this state and give them a way to participate in an industry which has the potential to be a tremendous economic engine here in our state,” Wright said during the Senate Finance Committee hearing Wednesday.

“In every single community throughout this state, cannabis has the potential to be a driver for communities to create opportunities, to create the outcomes and to shape the manner in which they want cannabis to play out in their community,” she said. “That’s what we need.”

In addition to her background as a state representative, lawyer and business owner, Wright is currently serving as New York’s first director of the Statewide Office of Financial Inclusion and Empowerment to help meet the financial services and needs of low- and middle-income New Yorkers.

Frederique said Wright and Alexander’s resumes speak from themselves.

“They both understand the deep harm that criminalization has caused to individuals and communities—especially communities of color—across the state,” Frederique said. “Their past work has reflected a commitment to working with people who have been directly impacted by prohibition and demonstrated a belief in evidence-based policies that center equity and justice.”

Democratic State Sen. Liz Krueger, the Finance Committee chair who sponsored MRTA, said in a statement she was extraordinarily pleased with the governor’s nominations.

“Their hard work, knowledge and dedication will ensure that the historic law we passed this year will be implemented the right way, with focus and equity that brings real benefits to the communities that have suffered the most under prohibition,” she said. “I am grateful to Gov. Hochul for demonstrating her seriousness of purpose and collaborative vision by moving swiftly to make such excellent nominations. The process of implementing MRTA has been delayed too long, but finally we are seeing some light at the end of the tunnel.”