Cannabis Briefs for October 22, 2019October 22, 2019
•Hexo is launching Original Stash, a bulk cannabis flower brand meant to undercut the illicit market. Hexo will sell Original Stash in 28-gram units—approximately one ounce—for C$125.70 ($96.10), making for an effective price of C$4.49 ($3.43) a gram. This is less than half the average price of recreational cannabis, which was C$10.23 ($7.82) during the third quarter of the year, according to Statistics Canada, and less even than black market product, which cost C$5.59 ($4.27). The brand is currently available exclusively in Quebec, where Hexo grew it, but is in the process of entering other provinces.
•California Governor Gavin Newsom signed a suite of cannabis legislation last week, one piece of which allows cannabis businesses to claim state tax deductions, something the industry has long sought. Due to federal prohibition, cannabis businesses of all types have been barred from deducting costs like rent, salaries, utilities, and other similar expenses from their taxes like other industries. Other pieces of legislation allow companies to re-test their product to correct minor errors, create a fee waiver pilot program for equity license applicants, and authorize the Center for Medicinal Cannabis Research at U.C. San Diego to cultivate its own crop for study.
•Canopy Growth brand Houseplant is expanding into new formats. Co-founded by comedian Seth Rogen and director Evan Goldberg, the label has previously been limited to flower but is now launching pre-rolls and softgel capsules. Additionally, the brand has also significantly expanded its retail footprint and is now available in British Columbia, Ontario, Manitoba, Newfoundland & Labrador, Quebec, and Saskatchewan.
•Chicago-based Cresco Labs became the first company in Illinois to be approved for adult-use sales, which begin on January 1, 2020. All five of its existing Illinois medical dispensaries received Early Approval Adult-Use Dispensing Organization Licenses from regulators. It also received approval for adult-use cultivation at the end of last month. The locations include Phoenix Botanical in Champaign, MedMar Lakeview in Chicago, MedMar Rockford in Rockford, PDI Medical in Buffalo Grove, and FloraMedex in Elmwood Park, all of which will transition to the Sunnyside brand Cresco announced in July. Additionally, through Cresco’s New York acquisition Valley Agriceuticals, last week the company opened Remedy, a medical dispensary in Brooklyn’s Williamsburg neighborhood.Subscribe to Shanken News Daily’s Email Newsletter, delivered to your inbox each morning. You will also receive the Cannabis edition as part of your subscription.