Issue 35: METRC Flexes its Muscles in Michigan
Plus, Canada is dumping its extra weed..where?! (and a bunch of other news).
Welcome to Issue #35 of Burn After Reading! You can check out last week’s issue here, and if you haven’t subscribed yet, please do.
This jam packed newsletter is dangerously close to gmail’s email length limit, so let’s get right into it.
METRC Flex its Muscles, Reminding Us All How Much Power They Truly Have
It’s a well documented fact at this point that a lot of cannabis businesses owe people money, but I never stopped to consider that some of the cannabis businesses may own money to METRC — the industry’s near ubiquitous and state-mandated plant and product tracking technology.
That was until news broke this week that over 100 Michigan-based businesses have missed monthly payments that they owed the company, resulting in METRC threatening to cut off these businesses’ access to their services.
I’ll state the implications of losing METRC access as simply as possible: If your access is cut off, your cannabis business ceases to be able to operate while still complying with state regulations. It’s basically a death blow.
Details over this controversy are still a bit murky, but it seemingly stemmed from the fact that METRC recently introduced a $40 per month fee for operators in Michigan. Apparently some operators were never notified about this new fee, while others claim they paid it and still got hit with a notice. At any rate, METRC’s support lines are ringing off the hooks (nothing new, according to many operators I’ve spoken with) and the company has issued a 30 day stay of execution on any of these shut-offs.
This controversy will only add further fuel to the debate surrounding METRC’s increasing influence over the cannabis space. Some question whether or not seed-to-sale tracking with plant-specific tags is actually necessary to prevent diversion or other regulatory violations, while others take issue with the sheer amount of plastic waste that the tags produce.
(The company has responded to these latter concerns by creating tags that are more environmentally friendly. Of course, you could argue that this is just greenwashing.)
METRC currently has contracts with 21 states, plus D.C and Guam (assuming Guam’s program ever gets off the ground). METRC’s closest competitor is BioTrack, who has contracts in ten markets.
Putting specific criticism of METRC aside, the fact that any company can yield this much power across the cannabis industry is a bit alarming. We should all probably be asking ourselves what exactly is in METRC’s contracts with state regulators. Will more states see this happen? Can METRC cut off a company’s access simply because they don’t like the cut of their jib?
Regulators have largely handed control of the seed-to-sale game to a single private company, and I think we’ve only begin to understand the implications of that.
Canada Dumping its Stockpile of Weed…in Jamaica?
We all know that Canada has way too much weed on its hands, and it turns out that at least one company has a surprising destination for their overflowing vaults of product: Jamaica.
Last weekend, news was leaked that a Canadian company has been given permission from the Jamaican government to import an undisclosed amount of cannabis into the country.
It’s still unknown what company is importing the cannabis, but news of the shipment outraged many farmers and residents, according to local media reports. A press release from an anonymous citizen that was obtained by Herb Jamaica said that the Canadian importers would make it impossible for Jamaican growers to compete. The statement reads (in part):
To ensure a level playing field and [to] protect our domestic industry, Jamaica should apply heavy anti-dumping duties and taxes on imported cannabis products from Canada. We should also require stringent testing for pesticides, fungicides, and heavy metals by the Ministry of Health and or the Bureau of standard, all at the importers cost.
Where’s that canuck weed going, you ask? Who knows. It seems like there would be a limited market for it in Jamaica’s relatively small medical cannabis program, but it seems equally unlikely that a Canadian company would ship cannabis to be processed in Jamaica only to have it then sent elsewhere.
(Ironically, tourists seem to make up a decent chunk of Jamaica’s medical consumers. So if the weed is indeed being sold at licensed dispensaries in Jamaica, an unexpecting Canadian tourist could be buying “Jamaican ganja” that was actually grown in the factory down the street from their house back in Ontario.)
The hubbub over Canada’s encroachment reached all the way to the Jamaican Parliament on Thursday, as Industry Minister Aubyn Hill defended the imports as within the letter of the law. Hill’s Opposition counterpart, Anthony Hylton said that he was strongly against the decision, noting previous Canadian resistance to the importation of Jamaican weed.
Canada has been accused of routinely preventing imports of cannabis into its own market, drawing complaints of protectionism. The lack of an export market from Jamaica has previously caused some companies looking to grow in the Caribbean country to head elsewhere, according to some.
For a country that relies on imports for many products that it once produced itself, the idea of a wealthy nation like Canada importing ganja is a tough pill to swallow. With all the promises that have been made by Jamaican politicians and regulators about allowing traditional farmers into the legal marketplace, it’s hard to blame local growers for being up in arms over this incident — even if all applicable laws were followed.
This story also highlights the fact that equity in the cannabis industry is a global issue…and it’s high time that American activists treat it as such.
Exhaustive Coverage of Proposed Topless Dispensary Has the Media Looking Like A Bunch Of Boobs
If Burn After Reading isn’t the only cannabis news content you consume, you’ve probably heard by now that some folks in Whately, Massachusetts are hoping to open a topless dispensary.
That’s really all you need to know about this story at the moment.
As anybody with an ounce of marijuana industry experience knows, a lot of people have a lot of plans to open a lot of different cannabis businesses. Very few of those plans end up coming to fruition, even before you throw in a gimmick curveball like topless budtenders.
I’ve done my best to ignore this story-that’s-not-a-story, but mainstream publications certainly aren’t making that easy. It’s been nothing but to wall-to-wall coverage of this proposal to turn a sad looking building in to the the world’s most awkward dispensary experience.
Even if this business does somehow get permission to open, there’s a litany of additional hurdles they’ll have to overcome… but I feel like I’ve already given this story enough oxygen as it is.
Trust me, I get it. Running a media publication requires that — above all else — you publish media. That being said, there’s no shortage of actual cannabis news to cover regarding businesses that are actually licensed and opened. Perhaps if more media outlets were actually hiring (and supporting) full time cannabis beat reporters, they wouldn’t have to resort to aggregating news like this.
Now let’s move on to some real stories and never speak about this again.
Other Random Musings
Here’s where I would update you on who has been selected to be a Cannabis Commissioner in Rhode Island…..if I had any updates to give! The state’s Governor originally said that members of the three person Commission would be selected by the end of January, but later claimed that background checks have delayed the process. It’s now March, and there’s still no news. No Commissioners means no new cannabis licenses in Rhode Island, so I’m sure existing dispensaries don’t mind this delay.
Speaking of cannabis commissions, I can’t help but notice how many open positions there are at the Massachusetts CCC right now. A few of these positions have seemingly been open for a while. Add that to the increasingly large folder of “things that someone should probably be taking a look at.” It’s in (almost) no one’s best interest for the Commission to be understaffed, so if you qualify: apply! Just don’t tell them I sent you…
Are you TIRED of lugging around TWO tiny vape pen batteries when you’re attempting to enjoy more than one type of cartridge at a time? Well good news, the people at Jupiter Research recently announced that they have developed Threadz Double cartridges — allowing you to vape two carts at once. While I’m sure that Xzibit is excited that someone put a vape in your vape so that you can vape while you vape, I must question whether science has gone too far with this particular product..or if there’s any actual demand for such a thing. I guess we’ll find out.
Brad Racino over at New York Cannabis Insider had this insightful LinkedIn post that details how things are going with the state’s cannabis program (spoiler alert: not great!). New York attorney Paula Collins also penned an op-ed (🔒) pushing back against some of the myths about illicit cannabis shops that have popped up there.
HEADLINES
New England
ROSLINDALE DISPENSARY ROBBED AT GUNPOINT (Adam Gaffin | Universal Hub): “The High Profile x Budega dispensary, 3995 Washington St., was robbed shortly after 7 p.m. on Sunday by three men in ski masks, at least two with guns. One wore a three-quarter-length dark coat with fur on the hood, another a tan cap above his ski mask. The thieves may have made off with as much as $50,000 in cash, plus marijuana, from the dispensary, which opened in November.”
BRATTLEBORO SAVINGS & LOAN TO CLOSE ALL CANNABIS BANKING ACCOUNTS (Ella Guinan | Heady Vermont): “Last summer, former Brattleboro Savings & Loan (BS&L) president and CEO Dan Yates told VTDigger that BS&L would like to be the “go-to” banking institution for cannabis businesses south of Route 4. The thought behind this sentiment remains true for BS&L, the company said in a press release today, but that the costs of banking with cannabis businesses far outweighed the benefits for both the bank and its cannabis clients.”
NEW HAMPSHIRE HOUSE GIVES INITIAL APPROVAL TO ADULT-USE CANNABIS LEGALIZATION BILL (Melissa Schiller | Cannabis Business Times): “The House voted 234-127 on Feb. 22 to advance House Bill 639 to the Ways and Means Committee. While the New Hampshire House has repeatedly passed adult-use cannabis legalization measures—most recently approving legislation in March 2022 that would have allowed state-run liquor stores to sell cannabis—the Senate has stalled these efforts.”
KALI CANNABIS BREAKS GROUND IN PALMER WHILE MARIJUANA INDUSTRY SHOWS GROWING PAINS (Jim Kinney | MassLive): “Kali’s application to the Massachusetts Cannabis Control Commission was deemed complete, he said Wednesday. And he expects to get a provisional license “shortly.” A Worcester native with a background in real estate, Klimavich said his business partner Suzanne Melanson, the CEO, has a background in cannabis and recently moved to Palmer.”
Rest of U.S. / National
CRESCO LABS, COLUMBIA CARE DELAY CLOSING OF $2-BILLION MERGER (Tony Lange | Cannabis Business Times): “Cresco CEO Charles Bachtell now expects the agreement to close before the end of June 2023 with the mutual extension moving the closing date from March 31 to June 30. That extension was spurred by the companies needing additional time to finalize divestiture agreements and to obtain the regulatory approvals necessary for closure.”
A NYC CANNABIS COMMUNITY SPACE IS HARMING THEIR WORKERS AND BLACK-LED BUSINESSES (Alexandra Martinez | Prism Reports ): “Without a human resources official, Cruz had to share her concerns with one of the company’s three founders. “When I had raised that concern, I was told that my position is one of an Uber Eats driver for weed and that I should stay in my lane essentially,” Cruz said.”
COLORADO’S FIRST LICENSED CANNABIS-CONSUMPTION BUS ROLLS OUT THIS WEEK (Tiney Ricciardi | Denver Post): “Although other cannabis buses have operated in Colorado before, they weren’t technically legal and all of them shut down or were forced to close by authorities. The Cannabis Experience, on the other hand, has a state-issued marijuana hospitality permit along with a license from the city.”
International
🇳🇱 NETHERLANDS TO KICK OFF LEGAL CANNABIS SALE PILOT PROGRAM (Dario Sabaghi | Forbes): "Although the country is known to be the European heaven for cannabis users due to its tolerance policy towards the so-called “soft drugs,” the cultivation of cannabis is still illegal in the Netherlands. But a pilot program expected to start by the end of this year could pave the way toward a full legal sale of cannabis.”
🇧🇲 BERMUDA’S GOVERNMENT BUDGETS $50,000 FOR MORE WORK ON LEGALISATION OF CANNABIS (Caribbean News Weekly): "The Bermuda government has pledged to continue work on a “world-class” legal cannabis regime for Bermuda, six months after the legislation was turned down by Britain.”
🇨🇦 CANADIAN GOVERNMENT’S CANNABIS DUTY SURPASSES CA$1 BILLION SINCE 2018 (Matt Lamers | MJBizDaily): “Canada’s federal government has assessed more than 1 billion Canadian dollars ($740 million) in total duty on cannabis products since they were legalized for recreational use in 2018, according to federal data. The milestone comes as executives hope the government offers relief on the fee and excise regime it imposes on the industry amid mounting job and financial losses.”
Welcome Distraction
(For the uninitiated, this is where I provide a piece of media or content to distract you from the craziness of life and the cannabis space. )
One of the dedicated members of NHL94.com made an updated version of this all-time classic sports video game featuring 2023 teams and rosters.
For the uninitiated, there’s these programs/apps called ‘emulators’ that allow you to play old video games on pretty much any modern device, using what’s known as a “rom.” Consult google for more info if you want to figure out how to play this thing (or any game of yesteryear).
Are emulated games like this technically legal? Probably not, but neither is anything else I discuss in this newsletter, so who cares..
Cat of the Week
This cat that briefly interrupted a spring training game between the Red Sox and Marlins.
Even as a baseball fan, I must admit that spring training is boring as hell, so props to this little guy for bringing some excitement to the proceedings.
Special Bulletins
I hope to see you all at NECANN next week! I’m always appreciative of conferences and events that give this humble independent outlet a press pass without any hassle.
We have a CCC meeting next week as well, so paid subscribers should be on the lookout for a meeting recap. I’ll also be sending paid subscribers a preview of Oklahoma’s cannabis ballot initiative on Monday.
That’s a wrap on this issue. Thanks for reading! If you have any suggestions or feedback, email me here. Be sure to subscribe if you haven’t already, and if you would like to support my work, please consider a paid subscription.