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What to Expect from President Biden’s Cabinet on Cannabis

January 20, 2021 by CBD OIL

When Mike Howard, director of cultivation at The Grove, first caught word of the record-breaking cannabis yields being harvested regularly by fellow grow teams around the country (Lume Cannabis in Michigan and Green Life Productions in Nevada) he knew the game was changing. Once Howard dug deeper into the news, he discovered a common catalyst behind the success of his peers: Both facilities were actively growing under the A3i LED grow light from Fohse. 

After hearing firsthand from the grow teams in Michigan and Nevada how they had increased yields over HPS by 31% and 100% respectively, Howard knew he had to get Fohse lighting into The Grove—and fast!

The Grove, a vertically integrated cannabis business with dispensary, cultivation, distribution and production licenses, has been producing, sourcing and selling high quality edibles, cartridges and recreational cannabis products since 2015. Their 26,600-square-foot growing and production facility is state-of-the-art and eco-friendly. They strive to recreate the conditions that cannabis would find in nature and use only all-natural growing media and inputs as well as biological measures to control any pests or diseases. It only makes sense then that they would seek out and select Fohse products—the best lighting fixtures in the business—to match The Grove’s exacting standards.

The dry Las Vegas air makes for a challenging indoor growing environment for cannabis. Fohse fixtures operate at much cooler temperatures than standard HPS fixtures.

At The Grove, this means that the humidifiers and cooling systems don’t have to work as hard, and that an equilibrium between temperature and humidity level can be more easily achieved and maintained. This has led to some of the record harvests being seen regularly at The Grove.

Looking at how Fohse’s A3i 1500-watt fixtures compare to standard 1000-watt DE HPS fixtures in an “apples to apples” comparison reveals just how in sync these intelligent fixtures are with cannabis. The numbers from a recent, late fall harvest tell an impressive tale:

  A3i 1500W LED 1000W DE HPS
Total Fixtures 35 64
Total Plant Count 520 520
Grow Media Coco pots Coco pots
Grow Area 1056 sf 1056 sf
Flower Cycle 65 days 65 days
PPFD (early flower) 800-820 800-820
PPFD (late flower) 1250-1350 1000-1050
Wet weight 1,392 lbs. (631.4 kg) 716 lbs. (324.8 kg)
Dry Weight 223 lbs. (101.3 kg) 135 lbs. (61.2 k g)
Yield in oz./ Square Foot 3.4 oz (96 g) 2.05 oz (58 g)
Lbs. of Cannabis/Light Fixture* 6.37 lbs. (2.98 kg) 2.11 lbs. (.96 kg)
Total kWh 41,072 49,155

*Strawberry Cheesecake was the highest-yielding strain at 7.2 lbs/light, while Cookies was the lowest at 5.49 lbs/light

In the now-typical example above from the fall of 2020, the A3i system generated an average of 27% more light as compared to the HPS fixtures. This additional light led to an increase in dry yield harvest weights by a whopping 65%. All of this, while using 16% less energy than the HPS lighting it was compared to and in the same physical footprint of space with the same number of plants.

Remarkable results like those at The Grove are not a fluke or an accident and they are not restricted to Howard and his team alone. Growers all over are finding results like these to be the new norm, regardless of growing media and style of growing.

Lume Cannabis has been tracking results of their Fohse A3i fixtures for over 40 hydroponic growing cycles and across eight different strains of cannabis. Without fail, the team at Lume under Kevin Kuethe’s direction reports higher yields under the A3i than those grown under HPS. For example, with Fohse fixtures they have harvested 7,130 lbs. versus 5,241 lbs. with the same strains grown under HPS. THC levels under Fohse lights have been 3% higher too; 20% versus 17% on average. In other words, the cannabis that Lume grew under Fohse lighting netted more than $2.5 million more than the cannabis grown under HPS.

@Keene.Media

 

Steve Cantwell at Green Life Productions also reports unbelievable differences since switching over to Fohse’s A3i and F1V fixtures. Green Life Production’s typical harvests under their previous lighting system clocked in at 80-90 lbs. The average harvest now using Fohse fixtures is 160 to nearly 200 lbs. pulled from their 4×8, no-till, living organic soil beds.

Like Howard’s team at The Grove, Cantwell and his team have the enviable logistics problem of figuring out where to put all of the bounty from these sky-high yields. All three teams, The Grove (coco pots), Lume Cannabis (hydroponics) and Green Life Productions (live soil), are blowing harvest records out of the water time and time again across three drastically different cultivation styles. These highly regarded and experienced cannabis producers are showing that the rules have changed and that Fohse lighting fixtures enable previously unobtainable and unthinkable results.

Howard and the grow team at The Grove have achieved their amazing results by relying on the horticultural skills of their talented team, and also by utilizing two of Fohse’s premier products. They have predominantly been using the A3i model, Fohse’s workhorse grow light, to achieve their highest yields. The A3i is specifically designed to grow cannabis and that is exactly what it does. Its spectral distribution is custom-made to address the unique needs of cannabis. As evidenced in the remarkable yields outlined in the table above, the A3i’s output (of up to 4,970 µmol/s depending on configuration) can be adjusted to supply seasonably appropriate lighting depending on the growth phase of the crop. All of this while producing up to 156% more light per fixture and burning cooler (no hotter than dishwashing water) than traditional HPS grow lights. This means the A3i is safer to operate for both growers and their cannabis crops.

The A3i system is designed to handle the harsh extremes of a growing environment. The IP67-rated fixture will continue to operate at peak performance even with the moisture, dust, pests and biological debris, such as spores that are present in most indoor growing environments. Not many growers would expect their grow lights to still perform well after being submerged under several feet of water; the A3i can survive such a plunge and be relied on to deliver its photon payload as designed. Howard and his team at The Grove do not just rely on the A3i for their high yields. In their double-stack rooms they deploy Fohse’s lighter, more nimble F1V for its pound-for-pound power.

Just like the A3i, the F1V fixtures rely on industry-proven Samsung LEDs for their photon delivery. While almost the same dimensions as the A3i, at 38 lbs. (17.2 kg) per fixture they are almost half the weight of each A3i (70 lbs./31.75kg each). Like the A3i fixtures, their power supply rating is +100,000 hours. Depending on the needs of the grower and the ability of the existing systems, Fohse offers 420W, 600W, and 800W versions of the F1V. In his own F1V rooms, Howard has reported similarly positive results as in his A3i rooms: 60%+ yield increases, increased utility efficiencies, and better labor efficiency. The team now does not have to “chase canopy” by raising and lowering the lighting fixtures to achieve late-flower PPFD intensities like they did with the old LED lights that they were using in those double-tiered systems.

Fohse lighting products outperform their competition not only at The Grove, but anywhere they have been put to the test. So why hasn’t every cannabis grower switched over to Fohse?

Growers who have not yet seen the results firsthand still believe that LEDs cannot keep up with the high lighting demands of cannabis the way that HPS lighting traditionally has. The narrative had long been one of incremental change and an acceptance that two pounds of harvested yields per light fixture was the best one could expect. At the turn of the century, there was chatter that this didn’t have to be “good enough.”

the grove cannabis led lighting

@Keene.Media

 

By 2015, growers both professional and amateur alike had proven that three pounds per light was achievable based on advancements up to that point, but no one thought it would ever get better than that. Until Fohse set out to prove them all wrong, and then did. They showed that higher light output does not have to mean higher heat and that Diode technology had come a long way in just a few short years. Howard gives his take on this phenomenon:

“Everyone looks at LED lighting as still kind of a novelty; not something where it needs to be yet for cannabis growers. Having seen the evolution of LEDs that the Fohse team has created because of their cannabis mindset, it became obvious that we could focus on producing healthy plants.

A lot of other grow lighting companies are still looking at making and selling lights that can grow anything. Cannabis takes a lot of light and many companies and even growers don’t put enough light into commercial setups. Many cannabis growers never thought that LED technology was ever going to make it, but the power that comes out of Fohse fixtures is insane. Fohse lighting lets the grower focus on plant health and our yields show that. With Fohse LEDs overtaking HPS, you can really push the limits of your grow.”

As Howard said, Fohse fixtures are engineered with a “cannabis mindset.” HPS light output has plateaued because the added heat load is both detrimental to the cannabis crop and uneconomical to counterbalance. With Fohse fixtures growers can focus more on the nuances of a high-intensity light environment instead of combatting heat. Ever since that first time Mike Howard oversaw production in the initial grow room where Fohse products were installed at the Grove, he immediately saw the results. He is now vowing to keep replacing The Grove’s less efficient HPS fixtures and outdated LEDs with Fohse lighting as they continue expanding. Find out how switching to Fohse fixtures will increase your cannabis production and about all of Fohse’s record-busting lighting at Fohse.com.

Filed Under: Cannabis News

Harvest at The Grove: How Fohse LED Fixtures Increased Yields and Drove Higher ROI

January 20, 2021 by CBD OIL

When Mike Howard, director of cultivation at The Grove, first caught word of the record-breaking cannabis yields being harvested regularly by fellow grow teams around the country (Lume Cannabis in Michigan and Green Life Productions in Nevada) he knew the game was changing. Once Howard dug deeper into the news, he discovered a common catalyst behind the success of his peers: Both facilities were actively growing under the A3i LED grow light from Fohse. 

After hearing firsthand from the grow teams in Michigan and Nevada how they had increased yields over HPS by 31% and 100% respectively, Howard knew he had to get Fohse lighting into The Grove—and fast!

The Grove, a vertically integrated cannabis business with dispensary, cultivation, distribution and production licenses, has been producing, sourcing and selling high quality edibles, cartridges and recreational cannabis products since 2015. Their 26,600-square-foot growing and production facility is state-of-the-art and eco-friendly. They strive to recreate the conditions that cannabis would find in nature and use only all-natural growing media and inputs as well as biological measures to control any pests or diseases. It only makes sense then that they would seek out and select Fohse products—the best lighting fixtures in the business—to match The Grove’s exacting standards.

The dry Las Vegas air makes for a challenging indoor growing environment for cannabis. Fohse fixtures operate at much cooler temperatures than standard HPS fixtures.

At The Grove, this means that the humidifiers and cooling systems don’t have to work as hard, and that an equilibrium between temperature and humidity level can be more easily achieved and maintained. This has led to some of the record harvests being seen regularly at The Grove.

Looking at how Fohse’s A3i 1500-watt fixtures compare to standard 1000-watt DE HPS fixtures in an “apples to apples” comparison reveals just how in sync these intelligent fixtures are with cannabis. The numbers from a recent, late fall harvest tell an impressive tale:

  A3i 1500W LED 1000W DE HPS
Total Fixtures 35 64
Total Plant Count 520 520
Grow Media Coco pots Coco pots
Grow Area 1056 sf 1056 sf
Flower Cycle 65 days 65 days
PPFD (early flower) 800-820 800-820
PPFD (late flower) 1250-1350 1000-1050
Wet weight 1,392 lbs. (631.4 kg) 716 lbs. (324.8 kg)
Dry Weight 223 lbs. (101.3 kg) 135 lbs. (61.2 k g)
Yield in oz./ Square Foot 3.4 oz (96 g) 2.05 oz (58 g)
Lbs. of Cannabis/Light Fixture* 6.37 lbs. (2.98 kg) 2.11 lbs. (.96 kg)
Total kWh 41,072 49,155

*Strawberry Cheesecake was the highest-yielding strain at 7.2 lbs/light, while Cookies was the lowest at 5.49 lbs/light

In the now-typical example above from the fall of 2020, the A3i system generated an average of 27% more light as compared to the HPS fixtures. This additional light led to an increase in dry yield harvest weights by a whopping 65%. All of this, while using 16% less energy than the HPS lighting it was compared to and in the same physical footprint of space with the same number of plants.

Remarkable results like those at The Grove are not a fluke or an accident and they are not restricted to Howard and his team alone. Growers all over are finding results like these to be the new norm, regardless of growing media and style of growing.

Lume Cannabis has been tracking results of their Fohse A3i fixtures for over 40 hydroponic growing cycles and across eight different strains of cannabis. Without fail, the team at Lume under Kevin Kuethe’s direction reports higher yields under the A3i than those grown under HPS. For example, with Fohse fixtures they have harvested 7,130 lbs. versus 5,241 lbs. with the same strains grown under HPS. THC levels under Fohse lights have been 3% higher too; 20% versus 17% on average. In other words, the cannabis that Lume grew under Fohse lighting netted more than $2.5 million more than the cannabis grown under HPS.

@Keene.Media

 

Steve Cantwell at Green Life Productions also reports unbelievable differences since switching over to Fohse’s A3i and F1V fixtures. Green Life Production’s typical harvests under their previous lighting system clocked in at 80-90 lbs. The average harvest now using Fohse fixtures is 160 to nearly 200 lbs. pulled from their 4×8, no-till, living organic soil beds.

Like Howard’s team at The Grove, Cantwell and his team have the enviable logistics problem of figuring out where to put all of the bounty from these sky-high yields. All three teams, The Grove (coco pots), Lume Cannabis (hydroponics) and Green Life Productions (live soil), are blowing harvest records out of the water time and time again across three drastically different cultivation styles. These highly regarded and experienced cannabis producers are showing that the rules have changed and that Fohse lighting fixtures enable previously unobtainable and unthinkable results.

Howard and the grow team at The Grove have achieved their amazing results by relying on the horticultural skills of their talented team, and also by utilizing two of Fohse’s premier products. They have predominantly been using the A3i model, Fohse’s workhorse grow light, to achieve their highest yields. The A3i is specifically designed to grow cannabis and that is exactly what it does. Its spectral distribution is custom-made to address the unique needs of cannabis. As evidenced in the remarkable yields outlined in the table above, the A3i’s output (of up to 4,970 µmol/s depending on configuration) can be adjusted to supply seasonably appropriate lighting depending on the growth phase of the crop. All of this while producing up to 156% more light per fixture and burning cooler (no hotter than dishwashing water) than traditional HPS grow lights. This means the A3i is safer to operate for both growers and their cannabis crops.

The A3i system is designed to handle the harsh extremes of a growing environment. The IP67-rated fixture will continue to operate at peak performance even with the moisture, dust, pests and biological debris, such as spores that are present in most indoor growing environments. Not many growers would expect their grow lights to still perform well after being submerged under several feet of water; the A3i can survive such a plunge and be relied on to deliver its photon payload as designed. Howard and his team at The Grove do not just rely on the A3i for their high yields. In their double-stack rooms they deploy Fohse’s lighter, more nimble F1V for its pound-for-pound power.

Just like the A3i, the F1V fixtures rely on industry-proven Samsung LEDs for their photon delivery. While almost the same dimensions as the A3i, at 38 lbs. (17.2 kg) per fixture they are almost half the weight of each A3i (70 lbs./31.75kg each). Like the A3i fixtures, their power supply rating is +100,000 hours. Depending on the needs of the grower and the ability of the existing systems, Fohse offers 420W, 600W, and 800W versions of the F1V. In his own F1V rooms, Howard has reported similarly positive results as in his A3i rooms: 60%+ yield increases, increased utility efficiencies, and better labor efficiency. The team now does not have to “chase canopy” by raising and lowering the lighting fixtures to achieve late-flower PPFD intensities like they did with the old LED lights that they were using in those double-tiered systems.

Fohse lighting products outperform their competition not only at The Grove, but anywhere they have been put to the test. So why hasn’t every cannabis grower switched over to Fohse?

Growers who have not yet seen the results firsthand still believe that LEDs cannot keep up with the high lighting demands of cannabis the way that HPS lighting traditionally has. The narrative had long been one of incremental change and an acceptance that two pounds of harvested yields per light fixture was the best one could expect. At the turn of the century, there was chatter that this didn’t have to be “good enough.”

the grove cannabis led lighting

@Keene.Media

 

By 2015, growers both professional and amateur alike had proven that three pounds per light was achievable based on advancements up to that point, but no one thought it would ever get better than that. Until Fohse set out to prove them all wrong, and then did. They showed that higher light output does not have to mean higher heat and that Diode technology had come a long way in just a few short years. Howard gives his take on this phenomenon:

“Everyone looks at LED lighting as still kind of a novelty; not something where it needs to be yet for cannabis growers. Having seen the evolution of LEDs that the Fohse team has created because of their cannabis mindset, it became obvious that we could focus on producing healthy plants.

A lot of other grow lighting companies are still looking at making and selling lights that can grow anything. Cannabis takes a lot of light and many companies and even growers don’t put enough light into commercial setups. Many cannabis growers never thought that LED technology was ever going to make it, but the power that comes out of Fohse fixtures is insane. Fohse lighting lets the grower focus on plant health and our yields show that. With Fohse LEDs overtaking HPS, you can really push the limits of your grow.”

As Howard said, Fohse fixtures are engineered with a “cannabis mindset.” HPS light output has plateaued because the added heat load is both detrimental to the cannabis crop and uneconomical to counterbalance. With Fohse fixtures growers can focus more on the nuances of a high-intensity light environment instead of combatting heat. Ever since that first time Mike Howard oversaw production in the initial grow room where Fohse products were installed at the Grove, he immediately saw the results. He is now vowing to keep replacing The Grove’s less efficient HPS fixtures and outdated LEDs with Fohse lighting as they continue expanding. Find out how switching to Fohse fixtures will increase your cannabis production and about all of Fohse’s record-busting lighting at Fohse.com.

Filed Under: Cannabis News

Arizona’s MITA Welcomes Industry Participation in New Free Course

January 20, 2021 by CBD OIL

Beginning Jan. 21, the Arizona Marijuana Industry Trade Association (MITA) will offer a free, weekly, virtual course for prospective social equity applicants looking to enter the state’s forthcoming adult-use cannabis industry.

While much of the curriculum for the 16-week Social Equity Applicant Mentorship Program is complete, MITA Executive Director Demitri Downing told Cannabis Business Times and Cannabis Dispensary that the association would still welcome industry members who are willing to provide education free of charge.

“We so want people to get involved. … There’s room for other people to add their expertise, and we would love to have them on board,” Downing said.

RELATED: Arizona Health Officials Announce Draft Rules for Adult-Use Cannabis Market

Educational Overview

MITA’s course will focus on specific aspects of Arizona’s medical cannabis program and the cannabis industry more broadly, while welcoming speakers from in and around the industry.

Speakers such as Tahir Johnson, membership manager and diversity, equity and inclusion manager at the National Cannabis Industry Association, and Dr. Bobra Crockett, a business professor at Scottsdale Community College, will discuss the first week’s topic, “Social Equity Licensing, What is the Opportunity and Why?”

Then, Lilach Power, founder and CEO at Giving Tree Dispensary, and Janet Jackim, partner at Zuber Lawler, will be among the panelists to dive into the following week’s topic, “History of Arizona Licensing, Structure of Our Market Place and Who is Who?”

RELATED: Two Dispensaries in Phoenix Team Up to Support Women Empowerment, Raise Funds for Domestic Abuse Shelter

The 16 lessons will weave through divergent takes on the market, from dispensing to cultivation to manufacturing, from extraction to HR to security, according to a course outline that Downing shared with CBT and CD.

“There [are] 1,000 ways to divide up the industry,” Downing said. “We’re just trying to do the best that we can to give them a high-level overview, so some basic information. Our target audience is that true social equity candidate who probably doesn’t know too much about the industry but who’s going to hear about the opportunity. We’re looking at 101s, ABCs.”

Attendees will learn about Arizona-specific regulatory structures and the specific market conditions they create, Downing said, providing this example: “With an unlimited canopy license and what we see as the eventual interstate commerce aspects of cannabis, it’s really wise for the enterprise to invest in a larger-scale cultivation. They shouldn’t plan on facilitating just the Arizona market; they should work towards the national market, as well.”

Along with Downing, who has lobbied on the industry’s behalf and founded MITA in 2016, the mentorship program facilitators are Dr. Will Humble, Paul Paredes and Jeff Tice.

Humble served as director of the Arizona Department of Health Services (ADHS), the agency that regulates cannabis in the state. (The medical program was “his baby,” Downing said.)

Paredes is a consultant at AZ MJ Logic—and the designated “fact-checker” for the mentorship program, according to Downing. Paredes has worked in compliance and written applications, and has directed operations for cultivation and dispensary operations in Arizona. (“He will be on every single panel, and his specific task … is to make sure that nothing is said that isn’t true,” Downing said.)

Tice, a certified public accountant, received one of the first cannabis licenses in Arizona for SWC Tempe. (Educationally, Downing said, “he’s going to be helping make sure that we suck the meat off of the bones” of the presentations.)

Social Equity Questions

Who exactly will qualify as a social equity applicant in Arizona? The answer remains to be seen.

Prop. 207, the adult-use legalization measure that voters passed by 60% in Arizona’s 2020 general election, outlined that the state will issue 26 dispensary licenses to social equity applicants. Licensees will be able to cultivate, manufacture and distribute cannabis, Downing said.

Under the Social Equity Ownership Program (SEOP), Arizona will issue licenses to owners who come from communities that have disproportionately faced the effects of cannabis prohibition.

“Anyone can think that they’re eligible for social equity,” Downing said. “We have an idea because of what’s happened in all the other states, but we’ll see what [Arizona] decides.”

Because of the wait for the SEOP rules, MITA has scheduled lesson modules for the end of the course that will touch on those specific requirements. If it takes longer than that for the state to make an announcement, which Downing said it very well may, MITA will delay teaching those modules until the state announces the rules.

The live weekly modules will be recorded so that registrants can view them on MITA’s website later, he added. People who attend all of the modules will be awarded a certificate at the end of the course.

“It will be online for perpetuity,” Downing said. “I guess at a certain point, one or two or three years from now, or as soon as federal interstate commerce transitions this industry, it will become irrelevant, so we’ll probably take it off. But [until then] the knowledge that is shared will be relevant not just to social equity applicants, but anybody who wants to learn about how the Arizona cannabis industry works.”

About 200 prospective social equity applicants have registered as attendees for MITA’s mentorship program so far, Downing said last week; he anticipates thousands of people will register as the news of it spreads.

He stressed the program’s uniqueness, in how it will provide a free overview of the Arizona and national industry with numerous people participating pro bono, adding, “This is something we’re really proud of.”

Filed Under: Cannabis News

Massachusetts Dispensaries Sue Regulators Over New Delivery Rules

January 20, 2021 by CBD OIL

Beginning Jan. 21, the Arizona Marijuana Industry Trade Association (MITA) will offer a free, weekly, virtual course for prospective social equity applicants looking to enter the state’s forthcoming adult-use cannabis industry.

While much of the curriculum for the 16-week Social Equity Applicant Mentorship Program is complete, MITA Executive Director Demitri Downing told Cannabis Business Times and Cannabis Dispensary that the association would still welcome industry members who are willing to provide education free of charge.

“We so want people to get involved. … There’s room for other people to add their expertise, and we would love to have them on board,” Downing said.

RELATED: Arizona Health Officials Announce Draft Rules for Adult-Use Cannabis Market

Educational Overview

MITA’s course will focus on specific aspects of Arizona’s medical cannabis program and the cannabis industry more broadly, while welcoming speakers from in and around the industry.

Speakers such as Tahir Johnson, membership manager and diversity, equity and inclusion manager at the National Cannabis Industry Association, and Dr. Bobra Crockett, a business professor at Scottsdale Community College, will discuss the first week’s topic, “Social Equity Licensing, What is the Opportunity and Why?”

Then, Lilach Power, founder and CEO at Giving Tree Dispensary, and Janet Jackim, partner at Zuber Lawler, will be among the panelists to dive into the following week’s topic, “History of Arizona Licensing, Structure of Our Market Place and Who is Who?”

RELATED: Two Dispensaries in Phoenix Team Up to Support Women Empowerment, Raise Funds for Domestic Abuse Shelter

The 16 lessons will weave through divergent takes on the market, from dispensing to cultivation to manufacturing, from extraction to HR to security, according to a course outline that Downing shared with CBT and CD.

“There [are] 1,000 ways to divide up the industry,” Downing said. “We’re just trying to do the best that we can to give them a high-level overview, so some basic information. Our target audience is that true social equity candidate who probably doesn’t know too much about the industry but who’s going to hear about the opportunity. We’re looking at 101s, ABCs.”

Attendees will learn about Arizona-specific regulatory structures and the specific market conditions they create, Downing said, providing this example: “With an unlimited canopy license and what we see as the eventual interstate commerce aspects of cannabis, it’s really wise for the enterprise to invest in a larger-scale cultivation. They shouldn’t plan on facilitating just the Arizona market; they should work towards the national market, as well.”

Along with Downing, who has lobbied on the industry’s behalf and founded MITA in 2016, the mentorship program facilitators are Dr. Will Humble, Paul Paredes and Jeff Tice.

Humble served as director of the Arizona Department of Health Services (ADHS), the agency that regulates cannabis in the state. (The medical program was “his baby,” Downing said.)

Paredes is a consultant at AZ MJ Logic—and the designated “fact-checker” for the mentorship program, according to Downing. Paredes has worked in compliance and written applications, and has directed operations for cultivation and dispensary operations in Arizona. (“He will be on every single panel, and his specific task … is to make sure that nothing is said that isn’t true,” Downing said.)

Tice, a certified public accountant, received one of the first cannabis licenses in Arizona for SWC Tempe. (Educationally, Downing said, “he’s going to be helping make sure that we suck the meat off of the bones” of the presentations.)

Social Equity Questions

Who exactly will qualify as a social equity applicant in Arizona? The answer remains to be seen.

Prop. 207, the adult-use legalization measure that voters passed by 60% in Arizona’s 2020 general election, outlined that the state will issue 26 dispensary licenses to social equity applicants. Licensees will be able to cultivate, manufacture and distribute cannabis, Downing said.

Under the Social Equity Ownership Program (SEOP), Arizona will issue licenses to owners who come from communities that have disproportionately faced the effects of cannabis prohibition.

“Anyone can think that they’re eligible for social equity,” Downing said. “We have an idea because of what’s happened in all the other states, but we’ll see what [Arizona] decides.”

Because of the wait for the SEOP rules, MITA has scheduled lesson modules for the end of the course that will touch on those specific requirements. If it takes longer than that for the state to make an announcement, which Downing said it very well may, MITA will delay teaching those modules until the state announces the rules.

The live weekly modules will be recorded so that registrants can view them on MITA’s website later, he added. People who attend all of the modules will be awarded a certificate at the end of the course.

“It will be online for perpetuity,” Downing said. “I guess at a certain point, one or two or three years from now, or as soon as federal interstate commerce transitions this industry, it will become irrelevant, so we’ll probably take it off. But [until then] the knowledge that is shared will be relevant not just to social equity applicants, but anybody who wants to learn about how the Arizona cannabis industry works.”

About 200 prospective social equity applicants have registered as attendees for MITA’s mentorship program so far, Downing said last week; he anticipates thousands of people will register as the news of it spreads.

He stressed the program’s uniqueness, in how it will provide a free overview of the Arizona and national industry with numerous people participating pro bono, adding, “This is something we’re really proud of.”

Filed Under: Cannabis News

Wurk Announces Passing of Founder and CEO Keegan Peterson

January 20, 2021 by CBD OIL

Beginning Jan. 21, the Arizona Marijuana Industry Trade Association (MITA) will offer a free, weekly, virtual course for prospective social equity applicants looking to enter the state’s forthcoming adult-use cannabis industry.

While much of the curriculum for the 16-week Social Equity Applicant Mentorship Program is complete, MITA Executive Director Demitri Downing told Cannabis Business Times and Cannabis Dispensary that the association would still welcome industry members who are willing to provide education free of charge.

“We so want people to get involved. … There’s room for other people to add their expertise, and we would love to have them on board,” Downing said.

RELATED: Arizona Health Officials Announce Draft Rules for Adult-Use Cannabis Market

Educational Overview

MITA’s course will focus on specific aspects of Arizona’s medical cannabis program and the cannabis industry more broadly, while welcoming speakers from in and around the industry.

Speakers such as Tahir Johnson, membership manager and diversity, equity and inclusion manager at the National Cannabis Industry Association, and Dr. Bobra Crockett, a business professor at Scottsdale Community College, will discuss the first week’s topic, “Social Equity Licensing, What is the Opportunity and Why?”

Then, Lilach Power, founder and CEO at Giving Tree Dispensary, and Janet Jackim, partner at Zuber Lawler, will be among the panelists to dive into the following week’s topic, “History of Arizona Licensing, Structure of Our Market Place and Who is Who?”

RELATED: Two Dispensaries in Phoenix Team Up to Support Women Empowerment, Raise Funds for Domestic Abuse Shelter

The 16 lessons will weave through divergent takes on the market, from dispensing to cultivation to manufacturing, from extraction to HR to security, according to a course outline that Downing shared with CBT and CD.

“There [are] 1,000 ways to divide up the industry,” Downing said. “We’re just trying to do the best that we can to give them a high-level overview, so some basic information. Our target audience is that true social equity candidate who probably doesn’t know too much about the industry but who’s going to hear about the opportunity. We’re looking at 101s, ABCs.”

Attendees will learn about Arizona-specific regulatory structures and the specific market conditions they create, Downing said, providing this example: “With an unlimited canopy license and what we see as the eventual interstate commerce aspects of cannabis, it’s really wise for the enterprise to invest in a larger-scale cultivation. They shouldn’t plan on facilitating just the Arizona market; they should work towards the national market, as well.”

Along with Downing, who has lobbied on the industry’s behalf and founded MITA in 2016, the mentorship program facilitators are Dr. Will Humble, Paul Paredes and Jeff Tice.

Humble served as director of the Arizona Department of Health Services (ADHS), the agency that regulates cannabis in the state. (The medical program was “his baby,” Downing said.)

Paredes is a consultant at AZ MJ Logic—and the designated “fact-checker” for the mentorship program, according to Downing. Paredes has worked in compliance and written applications, and has directed operations for cultivation and dispensary operations in Arizona. (“He will be on every single panel, and his specific task … is to make sure that nothing is said that isn’t true,” Downing said.)

Tice, a certified public accountant, received one of the first cannabis licenses in Arizona for SWC Tempe. (Educationally, Downing said, “he’s going to be helping make sure that we suck the meat off of the bones” of the presentations.)

Social Equity Questions

Who exactly will qualify as a social equity applicant in Arizona? The answer remains to be seen.

Prop. 207, the adult-use legalization measure that voters passed by 60% in Arizona’s 2020 general election, outlined that the state will issue 26 dispensary licenses to social equity applicants. Licensees will be able to cultivate, manufacture and distribute cannabis, Downing said.

Under the Social Equity Ownership Program (SEOP), Arizona will issue licenses to owners who come from communities that have disproportionately faced the effects of cannabis prohibition.

“Anyone can think that they’re eligible for social equity,” Downing said. “We have an idea because of what’s happened in all the other states, but we’ll see what [Arizona] decides.”

Because of the wait for the SEOP rules, MITA has scheduled lesson modules for the end of the course that will touch on those specific requirements. If it takes longer than that for the state to make an announcement, which Downing said it very well may, MITA will delay teaching those modules until the state announces the rules.

The live weekly modules will be recorded so that registrants can view them on MITA’s website later, he added. People who attend all of the modules will be awarded a certificate at the end of the course.

“It will be online for perpetuity,” Downing said. “I guess at a certain point, one or two or three years from now, or as soon as federal interstate commerce transitions this industry, it will become irrelevant, so we’ll probably take it off. But [until then] the knowledge that is shared will be relevant not just to social equity applicants, but anybody who wants to learn about how the Arizona cannabis industry works.”

About 200 prospective social equity applicants have registered as attendees for MITA’s mentorship program so far, Downing said last week; he anticipates thousands of people will register as the news of it spreads.

He stressed the program’s uniqueness, in how it will provide a free overview of the Arizona and national industry with numerous people participating pro bono, adding, “This is something we’re really proud of.”

Filed Under: Cannabis News

Cresco Labs’ Acquisition of Bluma Wellness Combines Two Like-Minded Companies, According to Executives

January 20, 2021 by CBD OIL

Multistate cannabis operator Cresco Labs announced Jan. 14 that it will acquire Bluma Wellness, a vertically integrated company with operations in Florida, in a transaction that company executives say combines two like-minded companies with similar business models.

For Cresco CEO Charlie Bachtell, the acquisition is “the culmination of a multi-year evaluation of how to get into the Florida market the right way.”

“We wanted to make sure we [entered the market] in a very thoughtful and appropriate way, and Bluma really presented that perfect opportunity for us, so we’re really happy with it,” Bachtell tells Cannabis Business Times and Cannabis Dispensary.

Bachtell describes Cresco as a more traditional, consumer packaged goods (CPG)-focused organization with a “product-first” approach that prioritizes the creation and distribution of branded products into as many retail stores as possible. This differs from other companies’ retail-first business models, he says, which prioritize the opening of as many dispensaries as possible.

RELATED: Built to Scale: How Cresco Labs Developed a Consumer-Packaged-Goods Approach to Cannabis

“You look at Bluma, and Bluma is arguably the only operator in Florida that thinks about the industry similarly to how we do,” Bachtell says. “They focused on production first, and then they opened very strategic, very thoughtful retail locations as they had product to sell.”

As a single-state operator, Bluma has been looking for a multistate company to partner with in order to expand nationally, especially as cannabis policy reform efforts begin to take shape at the federal level after the 2020 election, according to Bluma CEO Brady Cobb.

“We’ve had a rapid expansion through Q2, Q3 and Q4 [2020],” Cobb says. “I’ve also been an advocate at the federal level, both congressionally and in the White House, for … four and a half to five years now. You see the winds changing. … With the presidential election results [and] the Senate races in Georgia, it was time for us to find an MSO and a partner to be able to expand and be able to take advantage of this opportunity at the federal level that we’re seeing.”

Cobb says Bluma had a lot of suitors looking to enter Florida’s market, but that Cresco emerged as the best partner.

“Ultimately, Cresco was the clear, correct partner to pick, based on their culture [and] their focus on having the best flower and best premium products in any market that they operate,” he says. “They invested like we did in building out cultivation and … manufacturing so that you could have quality product, and then [focused] on retail. … Once we had a chance to meet them and see how great of a cultural fit it was, too, it was a no-brainer and we can’t be more excited to go on this ride with them.”

Florida’s market requires all cannabis operators to be vertically integrated, and businesses cannot purchase product wholesale from each other. While this regulatory structure may be challenging for some, Bachtell says that Bluma has thrived within these regulations.

“Florida is a very difficult state and climate to grow consistent, high-quality cannabis in,” he says. “Bluma does it as well if not better than anybody down there. That’s the reputation they have, is … being the No. 1 producer of premium and ultra-premium cannabis in the state of Florida.”

Bluma currently operates seven dispensaries under the One Plant Florida brand, with eight more locations planned. The company also has 54,000 square feet of cultivation space, with a planned expansion of its cultivation capacity, processing lab and edibles kitchen.

The acquisition places Cresco in 10 total U.S. states and advances the company’s overall goal of developing a strategic geographic footprint based on desirable regulatory structures and population, Bachtell says. Cresco aims to operate in states with robust regulations that place clearly defined obligations on cannabis businesses, he says, and that also have large populations to support a strong patient and consumer base.

“The only [state] that’s in the top 10 nationally that has cannabis programs that we weren’t in was Florida,” he says. “It’s the third most populated state in the country and had the second highest amount of growth in 2020 from a population increase. It’s a well-structured program with a ton of population there to support it, so it’s key. For our stated goal of having the most strategic geographic footprint we can, you want Florida by all definitions.”

When expanding to new states, Bachtell says management and leadership teams are critical to success in markets outside of a company’s home state, and he describes Bluma as having “the strongest management team and the best operations” in Florida.

“As we add Florida to our portfolio, it comes with a solid base on the ground that’s already been doing it, as opposed to us having to figure that out remotely in a state that isn’t our home state,” he says. “We’re very fortunate that they have as strong of an operational team there as they do, and we look forward to having them be part of the Cresco family now.”

Employment contracts are underway, and Cobb says that it will be business as usual for Bluma following the acquisition, although the company has a lot of work ahead to expand its cultivation, manufacturing and retail footprint.

“For me, it’s getting the transaction closed, which we’re aiming [to do] by April 1, [and] I think we can get there,” Cobb says. “Then, it’s building the expansion of our cultivation facility. We’re looking at doing a large indoor facility at our existing farm, and then also building out a manufacturing house where we can do a full post-harvest process—dry, cure, trim, dry packaging, a full edibles kitchen, a full concentrates lab, full hydrocarbon lab, distillation lab. Getting all of those projects done in 2021 is a key goal, and getting us up to 15 stores is a key goal.”

Looking ahead, Bachtell says Cresco is also working to expand, increasing its depth in the markets where it currently has a presence.

“As we look at M&A going forward, … it’s about getting depth in all of the markets that we’re in, not just Illinois and Pennsylvania and California and Florida, but we have room to go in Massachusetts and Michigan and Arizona and even potentially more in California,” he says. “That’s where our focus will be for the remainder of this year. We’re opportunistic. We have our eyes open on everything, but that’s definitely the focus, is more depth in states we’re already in via M&A.”

Filed Under: Cannabis News

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