Cannabis Briefs for August 13, 2019
August 13, 2019•Cannabiniers has launched two new seasonal offerings under its Two Roots cannabis beer brand. The non-alcoholic, THC-infused brand is rolling out the two new brews, Mango Dango and Grapefruit Fight, in dispensaries in Nevada and California in individual cans ($8) and four-packs. Two Roots’ core offerings include a Lager, Blonde, Wheat, Stout, and New West IPA. San Diego-based Cannabiniers also markets Brewbudz cannabis coffee, Just Society cannabis coffees and teas, and the forthcoming Creative Waters Co. line of low-cal cannabis RTDs.
•Greenlane Holdings, a global seller of cannabis accessories, has gained exclusive U.S. distribution rights to Storz & Bickel vaporizers. A 22-year-old company best known for its tabletop Volcano vaporizer, Storz & Bickel was acquired by Canopy Growth late last year for approximately $162 million. Greenlane distributes to over 11,000 retail locations in North America and will be responsible for bringing to market Storz & Bickel’s latest release, the third-generation Volcano Hybrid, which launches this month, retailing for $700.
•Nevada cannabis retailer Planet 13 released July sales and traffic figures for its flagship location in Las Vegas, providing a sense of customer trends in the Silver State. In July the 16,000-square foot Planet 13 Cannabis Entertainment Complex averaged 1,937 customers a day whose purchases averaged $90.41 each. These numbers have plateaued since March’s average of 1,987 daily visitors bought $88.58 worth of cannabis apiece. Sales at the Complex account for over 10% of sales statewide. The facility is in the midst of an expansion that promises to add a coffee shop, bistro, customer-facing production facility, and event space.
•Boulder, Colorado-based CBD company Charlotte’s Web will more than triple its footprint with a new 137,000-square foot production facility in Louisville, Colorado. The company will build out the facility over the next two years to accommodate rapid production growth that threatens to overwhelm its extant 40,000-square feet of space. Charlotte’s Web harvested 675,000 pounds of hemp in 2018—more than 10 times its 2017 harvest—and has nearly tripled their number of acres planted this year.
•Cresco Labs has acquired Valley Agriceuticals, one of only 10 vertically integrated cannabis business licenses in New York State, for $32.5 million in cash and 13.5 million shares. As a Chicago-based company, the acquisition gives Cresco a foothold in New York, both for cultivation upstate and for a promising recreational market. Valley Agriceuticals is licensed for a 75,000-square foot production facility in Wallkill, New York that should be completed by the spring of 2020. It has four retail locations, two of which are open (in Bardonia and New Hartford) and two of which will open in the next two weeks, in Williamsburg, Brooklyn and Huntington, Long Island.
•Ohio Attorney General Dave Yost has advised prosecutors to suspend all cannabis prosecution in the state following the legalization of hemp, which prosecutors and law enforcement say effectively legalized cannabis. The distinction between cannabis and hemp is determined by whether THC levels exceed 0.3%, but crime labs in the state are capable only of testing for the presence of THC in general without distinguishing specific amounts. “This bill de facto legalizes marijuana in Ohio … at least for a time,” Louis Tobin, executive director of the Ohio Prosecuting Attorneys Association, told local news. In addition to enacting a moratorium on new cannabis-related cases, the Columbus City Attorney is dropping all pending cannabis cases.
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