Business
5 Canadian cannabis producers face May deadline in ‘extracts/edibles’ conflict
Health Canada has asked five companies to stop distribution and sale of noncompliant cannabis edibles products by the end of May and provincial wholesalers have been notified of the ongoing crackdown after months of confusion, MJBizDaily has learned.
Canada’s cannabis industry and the federal government have been on a collision course over the products since January, when Health Canada started asking some licensed companies to stop selling certain ingestible marijuana products.
The industry says the products are appropriately classified as cannabis “extracts” because the ingredients used are not food and, thus, are compliant with federal marijuana regulations.
However, Health Canada, the nation’s federal cannabis regulator, has said the affected products are improperly classified as “extracts” and should actually be categorized as “edibles.”
The distinction is important because any cannabis product classified as an extract has 100 times more allowable THC per package than a product classified as an edible.
For instance, certain packages of Ottawa, Ontario-based Indiva Limited’s Wild Cherry Lozenges and Life Lemon Lozenges contain 100 milligrams, 250 milligrams and 500 milligrams of THC per package.
However, if those were classified as edibles, they would be limited to no more than 10 milligrams of THC per package.
Indiva was one of the five companies hit with a notice of noncompliance letter by the federal regulator.
Toronto-headquartered Organigram Holdings also said it received a notification from Health Canada claiming some of its products were incorrectly classified as “extract” rather than “edible.”
Both Indiva and Organigram paused production of the affected product formats.
Health Canada released a long-awaited compliance statement in early March intended to help identify products improperly classified as extracts.
Deadline looms
Health Canada said federal license holders with noncompliant products are expected to “stop further distribution and sale” of those products in question by May 31.
To date, five noncompliance letters have been issued regarding affected product formats, but that number might grow “while we (Health Canada) gather information from them on their products,” a spokesperson told MJBizDaily via email.
Asked what consequences license holders could face if they fail to comply, the spokesperson said Health Canada’s preference is for regulated parties to voluntarily undertake actions to regain compliance.
“However, Health Canada may take enforcement measures to address non-compliance or mitigate risks to public health or public safety as outlined in the Compliance and enforcement policy for the Cannabis Act,” the email noted.
Those measures could range from calls and letters – which are intended to educate and prevent noncompliance – to inspections to measures intended to correct noncompliance or address a public health or safety risk.
Those could include the suspension or cancellation of a federal license or the issuance of administrative monetary penalties up to 1 million Canadian dollars ($730,000).
Health Canada also told MJBizDaily it recently informed provincial wholesalers of the situation.
The Ontario Cannabis Store, the largest marijuana wholesaler in Canada, subsequently sent letters to suppliers on March 15.
In one such letter viewed by MJBizDaily, the wholesaler reminds the recipients they must ensure products they sell to the OCS are compliant with applicable laws and regulations.
“If you currently sell or have proposed to sell products to the OCS that may be affected by the Compliance Statement, you must provide the names and brands of the affected product(s) by the end of day, March 24, 2023,” the letter reads.
The letter, sent by OCS Chief Operating Officer Denny Palarchio, says the agency “will continue to replenish and accept deliveries” for the affected products until May 31, 2023.
Industry reacts
Industry sources say the crackdown will cost the struggling industry tens of millions of dollars.
They also say Health Canada’s crackdown is a gift for the underground market, since legal cannabis edibles containing no more than 10 milligrams of THC per package can’t compete with illegal products that don’t face such restrictions.
Another source of frustration is the fact that the products Health Canada is trying to pull from the market already underwent the government’s so-called Notice of New Cannabis Product (NNCP) process, which requires licensed producers to notify the regulator months in advance of new products.
While that process doesn’t mean those products were necessarily “approved” by Health Canada, the agency would have signed off on and been aware of the respective products, including the amount of THC contained in each package.
Shane Morris, founder of Ottawa-based Morris & Associates Consulting, said serious questions need to be asked about why Health Canada reviewed several NNCPs for these products and then allowed them to exist in the market for years.
“For example, the Organigram Jolts were launched in August 2021 and subsequently had multimillion-dollar sales. How does this happen?” Morris asked.
“Regulatory certainty is a key element of good regulatory policy. Having the regulator change their minds overnight after months or years of allowing reviewed products in market speaks to either incompetence and/or gross inconsistency on the part of Health Canada.”
Morris wants the industry to ask for an independent review of this situation.
Source: https://mjbizdaily.com/5-canadian-cannabis-producers-face-may-deadline-in-extracts-edibles-conflict/
Business
A Tipping Point for Cannabis: President Trump Champions CBD & Cannabis Science on Truth Social
When the President of the United States shares a video about the life changing potential of hemp derived CBD on his personal social media platform, it is more than news, it is a cultural shift.
For decades our government lied to us about cannabis. It demonized the plant, waged war on its users, and filled prisons while allowing pharmaceutical companies to flood the nation with addictive and deadly drugs. For over a century we have been fighting uphill, not just for legalization, but for truth, for science, and for the right to heal ourselves naturally.
Now in 2025, the most powerful political figure on Earth is using his own voice and platform to talk about the endocannabinoid system and the science backed benefits of CBD. That is monumental. It is validation for everyone who has fought, been arrested, been silenced, and been dismissed for telling this truth. The President’s video post is already being described as a pivotal moment in cannabis history, and President Trump CBD Cannabis Science Truth Social is trending across platforms as advocates celebrate the breakthrough.
The Science Behind the Endocannabinoid System
The video begins by introducing something most people, including many doctors, still know little about, the endocannabinoid system. Discovered in the 1990s, the ECS is a network of receptors and signaling molecules that works as the body’s master regulator, coordinating communication between major systems like the nervous, immune, cardiovascular, and digestive systems.
The roots of this discovery go back much further. CBD was first isolated in 1940 by American chemist Roger Adams, but it was Dr. Raphael Mechoulam, an Israeli organic chemist, who fully elucidated the chemical structure of CBD and identified its stereochemistry in the 1960s. His pioneering work not only opened the door to modern cannabinoid science but also earned him the title “Godfather of Cannabis Research.” It was this foundation that led to the identification of the endocannabinoid system itself decades later, revealing how cannabinoids interact with our physiology on a fundamental level.
The ECS is now widely recognized as a vital part of human biology, with extensive research supported by the National Institutes of Health. When functioning properly, the ECS acts like the conductor of an orchestra, ensuring every section plays in harmony. As we age, the system weakens. That imbalance is linked to inflammation, chronic pain, cognitive decline, sleep problems, and many other conditions associated with aging.
Mainstream medicine often addresses these issues with pharmaceutical band aids, dangerous and addictive drugs that treat symptoms rather than root causes. Lifestyle changes such as diet and exercise help, but they only partially support the ECS and do so slowly over time.
Hemp Derived CBD: A Game Changer for Aging
Here is where the science gets exciting. As the video explains, the ECS can be restored much more quickly with hemp derived CBD. Strengthening this system naturally helps the body regain balance, reducing pain, improving sleep, lowering stress, slowing disease progression, and even extending healthy lifespan.
It is not theoretical. One in five seniors is already using CBD to manage pain, arthritis, cancer symptoms, sleep disorders, Alzheimer’s, and more. Despite decades of research and acknowledgment from institutions like the National Institutes of Health, most physicians receive no training on the ECS. There are still no FDA standards for CBD products on the market. If that were the case for any other class of medicine, it would be considered malpractice.
The World Health Organization has confirmed CBD’s excellent safety profile and non addictive nature in its critical review report. The result is that millions of older Americans are suffering unnecessarily when a safe and natural solution exists.
Hemp derived CBD is a powerful first step in restoring balance to the endocannabinoid system, but it is only part of the picture. Research shows that full spectrum cannabis extracts, which include a broader range of cannabinoids and terpenes, can work even more effectively. Complete concentrated cannabis oil, containing the full spectrum of natural endocannabinoids, may deliver the most profound results for certain patients. Expanding access to these therapies will be essential if we want to unlock the full healing potential of this plant.
The Economic and Social Impact
The video cites a powerful figure. A PricewaterhouseCoopers analysis estimates that fully integrating cannabis into the healthcare system could save the United States nearly 64 billion dollars annually. These savings reflect reduced pharmaceutical dependency, fewer hospitalizations, improved chronic disease outcomes, and enhanced quality of life for aging Americans. You can read more about PwC’s research on healthcare innovation here.
It is a financial argument, but it is also a moral one. Why should our elders endure pain, anxiety, and cognitive decline when nature has given us tools to help them live longer, happier, and healthier lives?
A Call to Action: Finish What the Farm Bill Started
The message concludes by crediting the 2018 Farm Bill, championed by President Trump, for legalizing hemp and laying the groundwork for today’s CBD market. The Farm Bill was just the first step.
Now the call is for bold next moves.
- Educate doctors about the endocannabinoid system
- Include CBD under Medicare coverage
- Provide clear federal standards for CBD quality and dosing
These steps would constitute the most significant senior health reform in modern history, one that would transform aging and cement a powerful legacy for any administration that makes it happen.
What This Means for Future Cannabis Medicine
For those of us who have been in the cannabis community for decades, this is not just another news story. It is a signal that our movement is winning. A conversation that was once criminalized and censored is now being amplified by the President of the United States on his own platform.
It means the science is undeniable. It means the truth can no longer be buried. It means the wall of prohibition is cracking, not just legally, but culturally, scientifically, and politically.
It also means that everything we have been fighting for at 420 Magazine since 1993, education, access, healing, and justice, is finally moving full steam ahead. The President Trump CBD Cannabis Science Truth Social moment is proof that science and policy are finally converging.
Business
New Mexico cannabis operator fined, loses license for alleged BioTrack fraud
New Mexico regulators fined a cannabis operator nearly $300,000 and revoked its license after the company allegedly created fake reports in the state’s traceability software.
The New Mexico Cannabis Control Division (CCD) accused marijuana manufacturer and retailer Golden Roots of 11 violations, according to Albuquerque Business First.
Golden Roots operates the The Cannabis Revolution Dispensary.
The majority of the violations are related to the Albuquerque company’s improper use of BioTrack, which has been New Mexico’s track-and-trace vendor since 2015.
The CCD alleges Golden Roots reported marijuana production only two months after it had received its vertically integrated license, according to Albuquerque Business First.
Because cannabis takes longer than two months to be cultivated, the CCD was suspicious of the report.
After inspecting the company’s premises, the CCD alleged Golden Roots reported cultivation, transportation and sales in BioTrack but wasn’t able to provide officers who inspected the site evidence that the operator was cultivating cannabis.
In April, the CCD revoked Golden Roots’ license and issued a $10,000 fine, according to the news outlet.
The company requested a hearing, which the regulator scheduled for Sept. 1.
At the hearing, the CCD testified that the company’s dried-cannabis weights in BioTrack were suspicious because they didn’t seem to accurately reflect how much weight marijuana loses as it dries.
Company employees also poorly accounted for why they were making adjustments in the system of up to 24 pounds of cannabis, making comments such as “bad” or “mistake” in the software, Albuquerque Business First reported.
Golden Roots was fined $298,972.05 – the amount regulators allege the company made selling products that weren’t properly accounted for in BioTrack.
The CCD has been cracking down on cannabis operators accused of selling products procured from out-of-state or not grown legally:
- Regulators alleged in August that Albuquerque dispensary Sawmill Sweet Leaf sold out-of-state products and didn’t have a license for extraction.
- Paradise Exotics Distro lost its license in July after regulators alleged the company sold products made in California.
Golden Roots was the first alleged rulebreaker in New Mexico to be asked to pay a large fine.
Source: https://mjbizdaily.com/new-mexico-cannabis-operator-fined-loses-license-for-alleged-biotrack-fraud/
Business
Marijuana companies suing US attorney general in federal prohibition challenge
Four marijuana companies, including a multistate operator, have filed a lawsuit against U.S. Attorney General Merrick Garland in which they allege the federal MJ prohibition under the Controlled Substances Act is no longer constitutional.
According to the complaint, filed Thursday in U.S. District Court in Massachusetts, retailer Canna Provisions, Treevit delivery service CEO Gyasi Sellers, cultivator Wiseacre Farm and MSO Verano Holdings Corp. are all harmed by “the federal government’s unconstitutional ban on cultivating, manufacturing, distributing, or possessing intrastate marijuana.”
Verano is headquartered in Chicago but has operations in Massachusetts; the other three operators are based in Massachusetts.
The lawsuit seeks a ruling that the “Controlled Substances Act is unconstitutional as applied to the intrastate cultivation, manufacture, possession, and distribution of marijuana pursuant to state law.”
The companies want the case to go before the U.S. Supreme Court.
They hired prominent law firm Boies Schiller Flexner to represent them.
The New York-based firm’s principal is David Boies, whose former clients include Microsoft, former presidential candidate Al Gore and Elizabeth Holmes’ disgraced startup Theranos.
Similar challenges to the federal Controlled Substances Act (CSA) have failed.
One such challenge led to a landmark Supreme Court decision in 2005.
In Gonzalez vs. Raich, the highest court in the United States ruled in a 6-3 decision that the commerce clause of the U.S. Constitution gave Congress the power to outlaw marijuana federally, even though state laws allow the cultivation and sale of cannabis.
In the 18 years since that ruling, 23 states and the District of Columbia have legalized adult-use marijuana and the federal government has allowed a multibillion-dollar cannabis industry to thrive.
Since both Congress and the U.S. Department of Justice, currently headed by Garland, have declined to intervene in state-licensed marijuana markets, the key facts that led to the Supreme Court’s 2005 ruling “no longer apply,” Boies said in a statement Thursday.
“The Supreme Court has since made clear that the federal government lacks the authority to regulate purely intrastate commerce,” Boies said.
“Moreover, the facts on which those precedents are based are no longer true.”
Verano President Darren Weiss said in a statement the company is “prepared to bring this case all the way to the Supreme Court in order to align federal law with how Congress has acted for years.”
While the Biden administration’s push to reschedule marijuana would help solve marijuana operators’ federal tax woes, neither rescheduling nor modest Congressional reforms such as the SAFER Banking Act “solve the fundamental issue,” Weiss added.
“The application of the CSA to lawful state-run cannabis business is an unconstitutional overreach on state sovereignty that has led to decades of harm, failed businesses, lost jobs, and unsafe working conditions.”
-
Business2 years agoPot Odor Does Not Justify Probable Cause for Vehicle Searches, Minnesota Court Affirms
-
Business2 years agoNew Mexico cannabis operator fined, loses license for alleged BioTrack fraud
-
Business2 years agoAlabama to make another attempt Dec. 1 to award medical cannabis licenses
-
Business2 years agoWashington State Pays Out $9.4 Million in Refunds Relating to Drug Convictions
-
Business2 years agoMarijuana companies suing US attorney general in federal prohibition challenge
-
Business2 years agoLegal Marijuana Handed A Nothing Burger From NY State
-
Business2 years agoCan Cannabis Help Seasonal Depression
-
Blogs2 years agoCannabis Art Is Flourishing On Etsy
