Category Archives: Medical Marijuana

How Does The FDA’s E-Cig Crackdown Impact The Cannabis Industry?

How Does The FDA’s E-Cig Crackdown Impact The Cannabis Industry?

eCann Media is proud to showcase our portfolio of investments and subsidiaries. We have completed numerous investments across multiple verticals and sectors in the cannabis industry. Requesting an invitation will enable the eCann team to consider your eligibility for investment as well help us to identify the opportunities that best fit your needs and investment objectives.

Published at Wed, 19 Feb 2020 19:25:00 +0000

Insider Tips for Crafting a Cannabis Business Plan That Attracts Investors

Insider Tips for Crafting a Cannabis Business Plan That Attracts Investors

eCann Media is proud to showcase our portfolio of investments and subsidiaries. We have completed numerous investments across multiple verticals and sectors in the cannabis industry. Requesting an invitation will enable the eCann team to consider your eligibility for investment as well help us to identify the opportunities that best fit your needs and investment objectives.

Published at Thu, 06 Feb 2020 17:00:00 +0000

Top Mexican Senator Says Marijuana Legalization Bill Will Be Approved This Month

Top Mexican Senator Says Marijuana Legalization Bill Will Be Approved This Month

Sen. Julio Menchaca of the ruling MORENA party, who serves as president of the Justice Committee, said this week that legislation to legalize cannabis has “already circulated to the members” of key panels following “many exercises of open parliament.”

The Supreme Court ruled in 2018 that Mexico’s ban on the personal use and possession of marijuana is unconstitutional and it initially set a deadline of October 2019 to amend the policy. But while lawmakers came close to voting on a bill late last year that was approved by a series of committees, they requested a deadline extension at the last minute, and the court approved it.

Congress now has until the end of April to legalize cannabis, but Menchaca said “we hope to take it out in the Senate this month.”

“Prohibition has generated a lot of violence in the last 100 years,” he said, including fostering “the creation of an organized crime.”

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Published at Thu, 13 Feb 2020 15:41:48 +0000

Here Are the Six Cannabis and Hemp Businesses That Will Pitch to Investors at SXSW

Here Are the Six Cannabis and Hemp Businesses That Will Pitch to Investors at SXSW

Location: Salinas Valley, Calif.

One word to describe your cultivation style: “A hybrid between canna-ag technology and large-scale, year-round production,” Hackett says.

Indoor, outdoor, greenhouse or a combination: Greenhouse

Can you share a bit of your background and how you and your company got to the present day?

Photos courtesy of Riverview Farms

Riverview Farms employs a 75% to 85% female workforce.

I was born and raised here in the Salinas Valley by my parents, Mike and Sylvia Hackett. We were educated here. My parents have been entrepreneurs their whole lives, having multiple businesses—agricultural businesses, commercial real estate, restaurants. After they educated us, I was a St. Mary’s graduate with a business degree. I decided to move back to the Salinas Valley and [start] my career in agriculture at a local, family-owned and -operated company called Church Brothers. I was with them for about five years in the sales department, running their largest account, which was Sysco Food Service. Then, I decided to transition into our family business, which is Riverview Farms.

Riverview Farms was established in 2016 by my dad, Michael Hackett. He was the first cannabis operation in the Salinas Valley to get the exemption to even grow within our county and our city. Riverview Farms is a family-owned and -operated cannabis company that is vertically integrated. We hold nursery, cultivation [and] distribution licenses, so we control everything that we do from seed to sale.

It’s an incredible experience because I get to not only work side-by-side with my dad, who founded our company—he stepped back and put me in the lead position—but [also with] my sister, Lauren, [who] has also come on board and manages our retail division. Now, I would consider ourselves the largest female-owned and -operated cannabis company out of the Salinas Valley and possibly even in the state of California. We’re definitely very proud of that. My mom is our landowner, my sister and I run the company together, and we employ over 75% to 85% of a female workforce. I find that extremely important to me and to the ethics we hold here at Riverview Farms because I just don’t think a lot of companies could say the same about themselves. We employ our people 365 days a year. We don’t stop for a winter or fall crop. We are a consistent, 365-day-a-year supplier, producer [and] grower.

What tool or software in your cultivation space can you not live without?

For our style of growing, which is greenhouse-grown, we are relying 100% on the natural environment. We don’t have any supplemental lighting in the greenhouses. So, the software or tool that I would say comes in most handy for our lead cultivator and our entire team is an atmosphere control system that allows us to monitor the temperature both inside and outside the greenhouses 24/7, 365 days a year. It measures the temperature, the humidity [and] the wind speed both inside as well as outside the greenhouse, which is really awesome. Temperature control is everything. The atmosphere for the plants can greatly dictate the success of the crop. Being sure that we have a tool that we can monitor 24/7 the atmosphere of our greenhouses is very important.

What purchase of $100 or less has most positively impacted your business in the last six months?

The best purchase of $100 or less would be the king-sized Advil at Costco for the headaches that Monterey Country has put on our industry as a whole. I feel that Monterey County has been one of the most challenging counties within the state to work with. My family and I come from ag. We’re looking to run this as an agricultural operation. If you come visit us, no one is stoned. No one is doing anything that’s not on the up-and-up, and [there is] a lack of local enforcement and [the] headache of the hoops that our county is making us go through.

For example, we already report to the state through Metrc—that’s out track-and-trace system. Our county decided to add on CC reporting, which is basically a redundancy of what Metrc’s doing. [There is also a] lack of opportunities for additional licensed retailers. I think that creates a lot of challenges for us and makes it almost impossible to succeed. So, I guess the Advil helps you ease those headache days.

Hackett runs Riverview Farms as she would any other agricultural operation.

What cultivation technique are you most interested in right now, and what are you actively studying (the most)?

The most important thing for us in terms of longevity is finding the strongest genetic library that we can possibly have. Part of being vertically integrated means that we have our own nursery on site, so we generate 100% of our own clones. Finding the plants that are going to do the best— [that are] going to yield the highest, have the highest THC percentage and cannabinoids—and making sure we keep it fresh and consistent is very important to us. Some of the strains that work, for example, in an indoor or outdoor cultivation [operation] might not work well here in the greenhouse model, but I would say the No. 1 thing that Riverview Farms focuses on is making sure we have the strongest genetic library possible.

How has a failure, or apparent failure, set you up for later success? Do you have a “favorite failure” of yours?

For us, failure is not an option. This is our family’s legacy that we’re putting into this company. I’ve made this 100% my career. My sister has made this 100% her career. We’ve tied up 20 acres—that’s what we cultivate on—of my parents’ commercial real estate to make this a successful business.

We have learned from our mistakes and we grow every time that we are faced with a challenge. Part of being in a new and emerging industry is no one has done production to this scale before, ever, [with] cannabis cultivation. I think for us, [we’re] learning how to be the best grower we can be and how to sustain our business long-term. We’re in it for the long haul. Longevity and consistency and being a sustainable, successful business is really what we’re focused on. Every single crop comes with its own challenges. We’re on a waiting list for power upgrades. We’re dealing with Mother Nature. This is still a plant—not every single crop performs the exact same way, but we always learn from previous challenges and better ourselves for that next round.

Although every crop comes with its own unique set of challenges, Hackett remains focused on making Riverview Farms a sustainable business that produces consistent product.

What advice would you give to a smart, driven grower about to enter the legal, regulated industry? What advice should they ignore?

If I were new to this space and coming in, I would really do my research. If you’re in the state of California, which county is really working best with their growing operations? You want to be in a county where [cannabis is] widely accepted, and the regulators are actually trying to understand the challenges that growers are faced with and understand that it’s a commodity-based business. [Do] your research into where you’re actually going to be putting your cultivation space and [make] sure it’s sustainable. Rent, taxation, distribution fees—it really adds up very quickly. It’s a money pit, and you have to be prepared to sustain your business. [Make] sure that you’re in the best possible area that’s setting you up for success long-term because a lot of people enter into these high-end leases and think they’re going to turn a profit immediately, and that’s not always the case. In any start-up business, it takes time to generate cash flow and there are a lot of expectations in terms of compliance. It’s a very exciting industry to get into, but also one of the most challenging industries I’ve ever worked in. The United States is still against you—[cannabis is] still not federally regulated. There’s a big red target on your back always. [You have] payroll, taxes, crop loss, construction, power upgrades—there are so many things that you’re faced with on a daily basis that you may not see in the beginning or you don’t think it will affect you directly, but it affects us all. It catches up with any business, so be prepared.

Some of the biggest and most talked about brands, companies [and] retailers in the industry, unfortunately, are failing tremendously due to the amount of investor capital they’ve taken in and some of the poor business decisions that have been made. So, just because it’s potentially a big or widely known name in the industry, do your research. Make sure that’s a company that can pay you on your product. Some of the biggest retail names or some of the biggest brand names are not paying their vendors because they’re in so much debt that they’re in fear of closing down businesses. There are huge walkouts of employees who were once paid these large salaries but are now doing large-scale exits of 50, 100 [or] 150 employees. Six months ago, they were the talk of the town, like “Oh my gosh, are you in Shop x?” or “Are you carrying Brand x?” Some of these very hyped-up retailers or these very hyped-up brands have not been sustainable due to the companies’ lack of organization and financial independence. So, I guess my advice would just be to keep your circle small of who you’re doing business with and make sure that you are very aware of people’s cash flow. Not all business is good business. Do your research into who you do business with and who you’re selling to.

Riverview Farms cultivates greenhouse-grown cannabis on 20 acres of family-owned land in Monterey County, Calif.

How do you deal with burnout?

Because we’re a family-owned and -operated business and because our headquarters is actually on our cultivation site, we keep a very tight-knit community atmosphere. My employees see [me], my sister and my dad on a daily basis—we’re very active in the day-to-day activity. So, ultimately, we always have a list of people wanting to come and work with us. We’re very fortunate and very blessed that in Salinas Valley specifically, we employ a very large amount of ag labor. In the other local commodity crops—such as lettuce, broccoli, spring mix, berries, artichokes [and] wine grapes—most of those are only seasonal opportunities, so only about six months of the year are those crops growing here, and then the other six months, they’re moving to Yuma, Ariz., so you have to uproot your family if you want consistent work. At Riverview Farms, because we’re choosing to grow 365 days per year, we can offer that consistency in terms of workflow. So, we are very fortunate to have opportunities to bring on additional staffing [to avoid burnout].

How do you motivate your employees/team?

I really try to go above and beyond for our Riverview family. I make sure that every single month we do an appreciation barbeque or, as it gets hot, I’ll grab snow cones or Jamba Juice for everybody. [Sometimes it’s] just going out and having lunch and talking with our people about what’s going on. We’ve very involved, making sure they’re treated with the utmost respect because without them, we wouldn’t have a business.

Things [can be] as simple as proper meal breaks, clean lunch areas [and] making sure our restrooms are sanitized daily. You would think that these are all common-sense requirements for this industry, [but] I’ve heard horror stories of people who have worked at other grows or other operations, even locally, who aren’t treated to that same high standard. I think the way we motivate is by ensuring that we are doing best practices, not only on a day-to-day basis, but also making sure that we’re working hard but have a lot of fun, too. For senior management, we do appreciation days, we do Christmas parties, we do team bonding events. I really try to make sure that we stay very engaged with one another.

One of Hackett’s goals is to have a strong genetic library to maintain high yield and a robust cannabinoid profile.

What keeps you awake at night?

What really keeps me awake at night is knowing how skewed the perception of our industry really is. I feel that our county sees [cannabis], as a collective group, as the enemy, and that makes it very challenging. I don’t feel like our local jurisdiction wants to see cannabis succeed in our county, which is a real bummer. What really keeps me up at night is knowing that we just constantly have that big target on our back, and instead of working together and being transparent and educating people, I feel like our local county is so closed off to learning about our industry and growing together and making it a successful and safe business for our state and our community. What bothers me or what irks me is knowing that we don’t have that support, and I wonder if it would be different in other counties or in other jurisdictions, where it would be a little bit more well-received.

What helps you sleep at night?

What helps me sleep at night is knowing that I have an incredible team that I can rely on to get this done 365 days a year, knowing that were are in full control of our business, being vertically integrated and family-owned, and knowing that I don’t have any outside investors expecting unrealistic returns on a profit. We’re being modest and growing at a rate that we can actually afford to and [we’re] being sustainable for the long haul.

Because we’re part of the Salinas Valley, which is known as the “Salad Bowl of the World,” it’s so important that we are thinking about our environment and being sustainable. We want to be eco-friendly and conscientious as much as possible. For example, in our greenhouses, we use drip irrigation to make sure we’re not overwatering [or] overfeeding our plants, but then we’re also recollecting that water at the end of its cycle and reusing it here on the farm.  We also reuse and sanitize all of our pots throughout our operations, so we’re not going through as much plastic. Even the style in which we grow—being a greenhouse cultivator, relying on 100% natural UV light and not using any supplemental lighting in our greenhouses is growing green in the natural way. Whatever you’re getting is true to that time of year—during the colder or winter months when you’re not getting as big a bud structure or as high a THC percentage, that’s true and natural to the time of year in which we’re growing. When we have full sun in spring and summer and we have these big buds and high THC, that’s because we have the UV light. We’ve also added a special topping to our roofing, [which] helps us save on our heat bill by about 20% to 30%.

Editor’s Note: This interview has been edited for style, length and clarity.

Published at Fri, 14 Feb 2020 14:26:00 +0000

Majority Of Kentucky Residents Back Legalizing Marijuana For Any Purpose, Poll Finds As Medical Hearing Approaches

Majority Of Kentucky Residents Back Legalizing Marijuana For Any Purpose, Poll Finds As Medical Hearing Approaches

Nine out of 10 Kentucky residents support legalizing medical marijuana, and almost 60 percent say cannabis should be legal under “any circumstances,” according to a survey released on Wednesday.

The Kentucky Health Issues Poll, which involved phone interviews with 1,559 residents from October to December 2019, shows a significant increase in support for reform over the past several years.

In 2012, just 78 percent of Kentuckians said they favor medical cannabis legalization and 38 percent said it should be legal for any purpose.

Interestingly, the new survey separately asked respondents about their views on “recreational” legalization, as opposed to legalizing under “any circumstances.” Just under half—49 percent—said they back legalizing recreational marijuana.

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Published at Mon, 10 Feb 2020 18:49:32 +0000

Governors Across U.S. Step Up Push To Legalize Marijuana In Their States

Governors Across U.S. Step Up Push To Legalize Marijuana In Their States

State legislatures across the U.S. have convened for new sessions over the past month, and a growing number of governors are taking steps to push lawmakers to include legalizing marijuana as part of their 2020 agendas.

At least 10 governors have gone so far as to put language ending marijuana prohibition in their annual budget requests, or used their State of the State speeches to pressure legislators to act on cannabis reform.

Some are proactively addressing the issue, while others appear to be mostly reacting to support that has already built up among lawmakers. But altogether, it’s clear that top state executives are now taking marijuana more seriously than ever before.

Here’s a look at how governors are taking action on marijuana as 2020 legislative sessions get underway.

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Published at Tue, 11 Feb 2020 21:10:25 +0000

Where Are They Now: Q&A with Jeff Radway

Where Are They Now: Q&A with Jeff Radway

New Hampshire lawmakers have again launched cannabis legalization efforts this year, this time taking a criminal justice approach to the issue.

H.B. 1648 would legalize the possession and limited home cultivation of cannabis for adults 21 and older, and may be more palatable to lawmakers than past legislation aimed at creating a taxed and regulated cannabis market in the state, according to Matt Simon, New England political director for the Marijuana Policy Project (MPP).

“It just eliminates the existing civil penalty for possessing up to three-quarters of an ounce,” Simon told Cannabis Business Times. “It eliminates criminal penalties for possessing up to six plants, of which three can be mature, and that’s pretty much it. There is no regulation or tax component. It’s a straight-up criminal justice reform, similar to what Vermont passed in 2018.”

The House Criminal Justice and Public Safety Committee approved the bill Jan. 28 in a 13-7 vote, and a full House vote is expected sometime this month.

“It’s significant,” Simon said. “It passed in a 13-7 vote and last year, the legalization bill passed in a 10-9 vote, so we gained three votes, which could be attributed to the issue evolving [or] to the bill being simpler and not having a complex regulatory and tax proposal along with it. Either way, it’s a sign of momentum. It’s a sign that we’re continuing to gain support in the House.”

Last year, the New Hampshire House passed a similar bill, H.B.481, which would have not only legalized cannabis, but also created a regulated and taxed market. The legislation passed the House, but ultimately stalled in the Senate after the Judiciary Committee referred it for “interim study.”

Simon is optimistic about the House vote on this year’s bill but fears the legislation could hit a snag in the Senate again, unless lawmakers are more receptive of legalization that does not include a commercial market.

“The House has been much more amenable than the Senate or the governor in previous years and with past cannabis legislation, so I’m pretty sure it will pass the House, hopefully by a big margin,” he said. “Then we’ll go to the Senate and we’ll face more of an obstacle.”

It is an election year, however, and polls have shown strong public support for legalization in New Hampshire, Simon added.

“It’s an issue that’s more popular than any politician in the state at this point,” he said. “Do they really want to go through another election having been prohibitionists, or do they want to get on the right side of this before being potentially challenged by somebody who might be good on the issue and knock them out of office? It used to be politicians were afraid of running for cannabis during an election year, and now I think they should be afraid to vote against it in an election year. Two polls in a row show 68% support for legalization in New Hampshire. That should work in our favor.”

Gov. Chris Sununu, however, might be the largest roadblock to legalization of all. The Republican governor has been largely opposed to adult-use legalization and other cannabis policy reforms in the state, which earned him a D+ grade on NORML’s recent 2020 Gubernatorial Scorecard.

Simon said that unless Sununu changes his mind this year, he could continue to stand in the way of any legalization attempts in the state.

“He talks about how much he appreciates the ‘Live Free or Die’ state and all the wonderful freedoms we have in New Hampshire, yet we’re surrounded by states that have more freedom relative to cannabis, and that would seem to be at odds with most of his other positions,” he said. “Of course, we hope he comes around, and we’ll see if he does.”

Ultimately, a legalization bill lacking a tax-and-regulate component is just this year’s approach to the issue, Simon added; next year, MPP may support legislation to implement a commercial cannabis market in the state.

“This is just a strategy for this year, given we know we don’t have the votes in the Senate for a comprehensive, regulated-and-taxed system,” he said. “The strategy worked very well in Vermont in refocusing the issue as a state criminal justice reform and civil liberties issue. As we’ve seen in Vermont, once it’s legal for adults, often a lot of our opponents say, ‘Well, I didn’t want it to be legal, but now that it is legal, it should obviously be regulated,’ and then they become allies in the push for taking that step.”

MPP has been lobbying, organizing attendance to public hearings, encouraging residents to contact their elected officials and conducting media outreach to build awareness and momentum in New Hampshire, Simon said, and the organization will continue to do so until the state successfully legalizes.

“So much of the support is passive and people assume it’ll happen eventually, and they don’t feel like they need to necessarily do anything,” he said. “A lot of our opponents are really motivating—they think the sky will come crashing down if cannabis is legal, and even though that’s only a few dozen people in the state, they can be really loud if they put their mind to it. So, we have to counteract that with a broad, robust coalition that comes to the statehouse and that engages elected officials and at some point, it will be successful. It’s just no guarantee whether some point will happen in 2020.”

Several other cannabis-related bills have been introduced in New Hampshire this year, in addition to H.B. 1648. One, another legalization bill, would distribute cannabis through the state’s liquor stores. That legislation has not yet been scheduled for a hearing, and Simon noted that it could still be amended to take a different approach to legalization.

Other cannabis policy reform efforts this year include a medical cannabis home grow proposal, S.B. 420, which would allow patients to cultivate their own plants. The Senate approved the legislation Feb. 6, and the bill will proceed to the House for consideration.

The legislature passed a similar bill last year, but the legislation was ultimately vetoed by Sununu. The House voted to override the veto, but the Senate vote fell short of the required two-thirds majority to override the veto in that chamber.

Simon points to the medical home grow bill as an indication of whether a legalization bill has the support to pass the legislature and, ultimately, Sununu this year.

“If that bill doesn’t pass, you might conclude that H.B. 1648 is not going to do very well,” he said. “If they’re not going to let patients have a few plants, are [they] going to let everybody have a few plants? We’ll see.”

Published at Fri, 07 Feb 2020 21:05:00 +0000

Aurora Cannabis CEO Steps Down, Cannabis Industry Loses Legendary Breeder Subcool: Week in Review

Aurora Cannabis CEO Steps Down, Cannabis Industry Loses Legendary Breeder Subcool: Week in Review

In the months since Green Peak Innovations CEO Jeff Radway donned the cover of the June 2019 issue

of CBT, the company has already gone through a world of change. Michigan recently legalized adult-use cannabis sales, which started in December. And while Green Peak didn’t start rec sales at its Skymint store in Ann Arbor until January, the company was the first large-scale, vertically integrated cannabis producer for adult-use in the state. Here, Radway shares how the company scrambled to jump on adult-use sales, how he balances inventory for two different consumers and the lessons he’s learned from a new market.

Cannabis Business Times: Can you give me an update on what’s changed for the company since June?

Jeff Radway: Oh, wow. It feels like it was three lifetimes ago. Quite a bit has changed. We now have six stores open, and we have another five stores set to open over the next few months. Our main production facility where we cultivate and process is recreationally approved, so we’re actually growing rec product as of early January—not yet harvested, but that’s in the process. We have our first rec store open in Ann Arbor, which is phenomenal, and we are learning and navigating through the process of trying to maintain two different sets of inventory and trying to optimize both sides of the business in terms of medical and recreational and have the right product at the right place at the right time for the right consumers. All of that is on top of actively working on some acquisitions in some other states. So yeah, it’s been busy. 

CBT: How is the Ann Arbor market?

JR: It’s been phenomenal. We were actually the eighth or ninth store open in Ann Arbor for adult-use—we’re one of the newer med stores. We had only been open I think six or eight weeks before we went rec. There are stores, of course, that have been open in Ann Arbor for years, but the response has been terrific. We feel like we’re showing the consumer for recreational as well as the patient for medical a new buying experience. Our stores are really an elevated model. There are browsable floors, and you can preorder and pick up in the store. You can step up to the counter without lines or stanchions. That’s always been a concern of ours— that the cannabis retail experience doesn’t look like other retail environments, and we frankly thought that it should. And then, of course, if you have questions or want to browse the floor, we have sales associates with mobile POS, checkouts on iPads, able to help give information or even check a customer out on the floor. 

CBT: Can you describe how that store in particular is set up and how you guide consumers depending on which market they belong to? 

JR: We really don’t differentiate medical to rec as far as the consumer. Once you have passed our reception desk, first of all, you enter our store and you’re greeted by basically a concierge, and they’re going to ask you if you’re in our system. If not, we’re going to ask you to sign up or, if you’re there for recreational, show an ID and also sign into our system so we’re able to track daily purchase limits to stay compliant with state regulations. Once you’ve passed through the reception desk, you’re onto an open sales floor, and you can browse by brand. We certainly carry a lot of our own in-house brand, Skymint, but we carry a full selection of really solid brands that are available to the Michigan market, so you can shop by brand and by form factor. Or, you can stop at iPads in sort of an informational journey and try to learn more about the products. 

If you’re unfamiliar, you can also be helped by a mobile sales associate out on the floor. So, we have really a bunch of ways to experience it. We have sniff jars out on the floor for various strains. We think we’ve got the broadest selection of flower right now in the state of Michigan. But again, the product on the floor looks the same to medical and rec. The strains are the same. The offerings are mostly the same, but not every product from outside third party-vendors is available to recreational yet. There’s just a really limited supply right now in the state, but we expect that to change here shortly.

CBT: How did you go about preparing your supply for the adult-use market and have you experienced any shortages on either side?

JR: Frankly, the state of Michigan opened up [adult-use sales] rather unannounced, and there wasn’t much advanced warning. We actually thought it would happen 45 or 60 days later than it did. … This came very quickly, and we had to sort of scramble to get our application in first, get our cultivation and processing facility licensed, and then go through all the local municipality steps for our stores. It’s a bit of a learning curve, I’ll be honest with you. We’re learning more every day about the differences between a recreational customer and a medical customer. They do indeed act differently in the market. Michigan may be unique because we’re a more than 10-year-old mature medical market, but the recreational customer needs a lot more assistance, help and knowledge about understanding the various product types, where the medical customer tends to know a lot about the market already.

[The state] invoked a rule called Rule 40, which allows for up to 50% of your medical inventory to be transferred to adult-use. … We had a lot of inventory in our vault and we had a lot of inventory at our stores, and to the extent that it met the criteria put out by the state, we were able to transfer that, so we started day one of being open for recreational having full shelves on both sides of the equation. 

Because we are a vertical producer, in some cases we’ve had to reallocate between our wholesale and our retail division, but we are still very active on both sides of the distribution equation. As far as our third-party buys, approximately 20% of what we carry in our stores is purchased on the outside. That has been limited. There’s very little to choose from right now in the Michigan market in terms of vape, concentrates, edibles, so we’re buying everything that we can that is from a quality producer with strong branding. 

CBT: What’s the ratio of what you’re growing for medical versus rec?

JR: Some of that is confidential. What I will say is that the market for adult-use is far bigger than for medical. This state is already seeing a decline in the medical card patient base, which leads me to believe that it’s just easier for certain consumers not to have to worry about seeing a doctor and renewing their cards. I think there is an economic [aspect] for the patient who needs a lot of medicine, because it’s still less expensive to buy using a medical card. I don’t know how that plays out in the future, but I suspect the two will probably meet somewhere in the middle on price point. As a company, we charge medical customers less just because we feel an obligation to the patients who have serious medical conditions. We don’t want them to be quite as exposed to the supply and demand types of pricing issues as an adult-use customer. 

CBT: What would you say has been the biggest lesson you’ve learned over the past year or two? 

JR: I would say that first of all, operating inside of a federally illegal business is incredibly challenging for all the reasons we all deal with, from banking to insurance to working with suppliers. But I would say the thing that surprised me the most is that it is not normal or natural or easy to grow a highly regulated agricultural product indoors that has to meet very stringent levels of state regulations and testing. So, indoor farming is not easy.

Published at Sat, 08 Feb 2020 13:00:00 +0000

Tilray Inc (NASDAQ:TLRY) Lays Off A Fraction Of Its Workforce In Restructuring Efforts

Tilray Inc (NASDAQ:TLRY) Lays Off A Fraction Of Its Workforce In Restructuring Efforts

Tilray Inc (NASDAQ:TLRY) has communicated several of the changes it is making to several financial news outlets. The business guru made its statement via email after the close of the market on Tuesday.

Laying
off employees

This cannabis producer lay off about
10% of its workers in a bid to cut down on its operational costs. This global
restructuring effort is being looked at as a way for the company to ease the
tension among its shareholders. The investors in the company have been closely
monitoring its performance, with some expressing satisfaction with the turn of
events.

The cutting down of the company’s
workforce is one of the many moves the company will be resorting to in a bid to
regain stability.

November was an important month that
considering that it was the point the shareholders learned about the company’s
operating costs for 2019. Such instances have always been important for
investors who decide about the best time to make investments.

Shareholders and the concerned parties
aware of the company’s moves have shown mixed reactions. There is a section
that sides with the company saying that the decision was necessary. However,
there is the second lot that belives the company should have resorted to
something other than terminating the services of the dedicated workers.

Opinions
expressed

Tilray has been quick to defend its
decision outlining that it was in the best interest of the company and the
shareholders. According to it, there were always times that called for the
making of some difficult choices and that this was one of those moments.

Analysts following closely on the
matter have also aired out their views. They take the strong stand that the
business guru was trying its best to soften the landing, and that is in line
with the earnings reports.

The earnings were not impressive for
the company, and that is the reason it took a drastic measure. Most of the
analysts are not in support of the decision that led to about 140 employees
losing their employment. They think that it paints the company in a bad light
and believes there were better alternatives that the company should have looked
at.

Published at Fri, 07 Feb 2020 13:13:00 +0000