Business
New Jersey Q3 Adult-Use Cannabis Sales Top $100 Million
Sales of recreational marijuana in New Jersey totaled more than $100 million during the third quarter of 2022, according to data from the state’s cannabis regulator.
Sales of adult-use cannabis in New Jersey for the third quarter of 2022 topped $100 million, according to recently released data from state officials. The New Jersey Cannabis Regulatory Commission reported that sales of recreational marijuana from June 2022 through September 2022 totaled $116,572,533, representing a jump of 46% over the previous quarter. Sales of medical cannabis came to $61,138,231 during the same time period, bringing the total for combined medical and recreational marijuana sales to $177,710,764 for Q3 2022.
“New Jersey is only seeing the beginning of what is possible for cannabis” Jeff Brown, executive director of the New Jersey Cannabis Regulatory Commission (CRC), said in a statement from the agency. “We have now awarded 36 annual licenses for recreational cannabis businesses to New Jersey entrepreneurs, including 15 for dispensaries. Those businesses alone will be a significant growth of the market. With more locations and greater competition, we expect the customer base to grow and prices to come down.”
New Jersey now has 20 dispensaries licensed to sell recreational marijuana, which was legalized with a referendum passed by voters in November 2020. Legislation legalizing commercial cannabis activity was passed by lawmakers the following month, and licensed sales of recreational marijuana began in April 2022.
“We are looking forward to seeing local, small business owners participate in this lucrative market,” said CRC chairwoman Dianna Houenou. “Our priority application process as well as new initiatives like the no-cost Cannabis Training Academy being launched by New Jersey Business Action Center in early 2023 are paving that path for them to be included.”
Another 10 dispensaries are licensed to sell medical marijuana to registered medical marijuana patients only. The medicinal use of cannabis was initially legalized in New Jersey in 2010, with subsequent legislation expanding the scope of the state’s medical marijuana program to encompass more patients and medical conditions.
George Archos, the founder and CEO of cannabis multistate operator Verano, said that sales were meeting expectations in New Jersey, where the company operates three Zen Leaf branded dispensaries.
“We’re thrilled to see the continued success of the cannabis industry in New Jersey,” Archos said in an email to NJ Advance Media late Friday. “The impressive revenue growth figures the Cannabis Regulatory Commission released from the third quarter are no surprise, given New Jersey’s large and dense population, robust summer tourism season, and proximity to other states without existing legal adult use cannabis programs.”
New Jersey Pot Retailers Now Face Nearby Competition
While sales of recreational marijuana in New Jersey have grown steadily since launching in April, the state’s weed retailers face new competition from New York, where regulated sales of adult-use cannabis began on December 29. But New Jersey Governor Phil Murphy said that he welcomes the expansion of regulated marijuana and that his state’s cannabis industry is ready for the competition from New York’s regulated operators.
“The Governor believes that a fair, regulated adult-use market for cannabis is a critical step toward advancing social justice on behalf of communities disproportionately impacted by marijuana prohibition,” Natalie Hamilton, press assistant to Murphy, said in a statement.
“The Governor is proud that New Jersey’s industry is serving as a model for other states in the nation and he looks forward to continuing our efforts to grow a cannabis industry that reflects the diversity of the state, protects access for medical marijuana patients, prioritizes justice, and promotes equal opportunities for communities of color,” added Hamilton.
Charles Gormally, an attorney specializing in cannabis law, said that the launch of retail cannabis sales in New York should be seen by New Jersey’s recreational marijuana industry as an incentive to produce high-quality products as a way to encourage consumers to buy locally.
“If a New York outlet has a great product, or a unique retail experience, or a great price — they certainly will attract market share from New Jersey sources,” said Gormally. “That said, New Jersey is the Garden State. We opened the market before New York, and I suspect when the start-up pain ends, there will be fantastic product, unique retail experiences, and consumption lounges — all of which might attract the New York cannabis consumer.”
“New Jersey should not view New York so much as a competitor but rather as a challenge to supply cannabis connoisseurs what they need to stay local,” he said. “Cannabis is not like a Broadway show after all,” adding, “In the adult use cannabis marketplace, the ultimate ‘spoils’ will belong to those outlets that have the most diverse product mix at the most competitive prices.”
Source: https://hightimes.com/news/new-jersey-q3-adult-use-cannabis-sales-top-100-million/
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.”
Business
Alabama to make another attempt Dec. 1 to award medical cannabis licenses
Alabama regulators are targeting Dec. 1 to award the first batch of medical cannabis business licenses after the agency’s first two attempts were scrapped because of scoring errors and litigation.
The first licenses will be awarded to individual cultivators, delivery providers, processors, dispensaries and state testing labs, according to the Alabama Medical Cannabis Commission (AMCC).
Then, on Dec. 12, the AMCC will award licenses for vertically integrated operations, a designation set primarily for multistate operators.
Licenses are expected to be handed out 28 days after they have been awarded, so MMJ production could begin in early January, according to the Alabama Daily News.
That means MMJ products could be available for patients around early March, an AMCC spokesperson told the media outlet.
Regulators initially awarded 21 business licenses in June, only to void them after applicants alleged inconsistencies with how the applications were scored.
Then, in August, the state awarded 24 different licenses – 19 went to June recipients – only to reverse themselves again and scratch those licenses after spurned applicants filed lawsuits.
A state judge dismissed a lawsuit filed by Chicago-based MSO Verano Holdings Corp., but another lawsuit is pending.
Source: https://mjbizdaily.com/alabama-plans-to-award-medical-cannabis-licenses-dec-1/
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