Cannabis Briefs for May 28, 2024
May 28, 2024•Eaze, the San Francisco-based cannabis delivery player, is facing foreclosure from its largest investor, Netscape-founder Jim Clark. According to reporting in SFGate, the move comes after Eaze defaulted on a loan, with Clark now attempting to secure all of Eaze’s collateral in the foreclosure. The roots of Eaze’s dealings with Clark begin in 2021, when Clark, through a shell company, loaned Eaze $36.9 million with the stipulation that Clark could seize the entire company if Eaze did not match or exceed monthly revenue levels. This information was revealed in a 2023 lawsuit filed by other Eaze investors alleging that Clark misrepresented Eaze’s finance to bolster investment funds. That lawsuit was dismissed in November 2023.
•The California State Assembly has advanced a new bill legalizing cannabis cafes to the state’s Senate. The bill—which is a second attempt, after Governor Newsom vetoed the previous version—would allow for cannabis cafes at licensed retailers, also giving cafes permission to sell food and (non-alcoholic) drinks made without cannabis. In addition, the bill would allow cafes to host live performances. The initial version of the bill was vetoed, according to the governor, over concerns about smoke-free workplace laws. The new version mandates separation between food production areas and cannabis consumption zones.
•Connecticut and Iowa have enacted new restrictions on hemp-derived cannabis products, with both states lowering the acceptable level of THC for legal products. In Iowa, the law now mandates that products not exceed 4-mg. of THC per serving and 10-mg. of THC per package. Connecticut’s new restrictions are more strict, with products restricted to 1-mg. of THC per serving, effective October 1, and 0.5-mg. per serving, effective January 1. There is, however, an exception for cannabis beverages, which can contain up to 3-mg. of THC per 12-ounce serving and can be sold in 4-packs.
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