Issue 50: Celebrating One Year of Burn After Reading
Plus, Cresco is the latest MSO to lay off workers, Levia's founder announces his exit, and Saint Kitts and Nevis is the latest Caribbean country to consider cannabis reform.
Can you believe it? Tomorrow marks the one year anniversary of the first issue of Burn After Reading!
Originally started as a way to get my old column in Worcester Magazine out to a wider audience, this publication has slowly become my #1 focus over the past year…and it’s been incredibly rewarding.
When I used to go to cannabis networking events, most people had no idea who I was.
They still usually have no idea who I am, but when I explain that I write Burn After Reading, their eyes often light up. While I do my best to advertise this thing, the best publicity remains word-of-mouth.
Leaving the cannabis industry to become a writer probably wasn’t the most lucrative financial decision I’ve ever made, but I wouldn’t have things any other way.
That being said, reader support is the only thing that’s making this venture possible. So if you can afford it…
⬇️ If you don’t want to sign up for a monthly or yearly subscription but still want to support my work, please consider a one time paypal tip to make this anniversary extra special for me. ⬇️
Cresco Lays off Workers While Opening New Florida Stores, as Deadline for Diddy Divestment Deal Draws Near
As the clock ticks closer to Cresco Labs’ self imposed deadline of June 30th to complete their merger with Columbia Care, it appears that things might not be going so well for the company, as they laid off a number of employees this week.
Employees impacted by the layoffs reported that they were company wide, with many in Senior or Regional Manager roles being sent packing.
Attempts to reach Cresco to get more information about the layoffs were unsuccessful.
Perhaps Cresco didn’t get back to me because they were too busy putting out this press release about how they just opened two more new stores in Florida. They seem to be one of a few MSOs who are cutting staff and expenses in other areas while investing heavily in the Sunshine State, hoping that Florida will legalize in 2024.
There’s just one problem with this strategy, though: As mentioned before here, the ballot initiative in Florida faces a lot of hurdles, and many people are skeptical that it will struggle to get the 60% support that is necessary for a initiative to pass in Florida (if the initiative even reaches the ballot).
If the Cresco/Columbia Care falls apart, that would also likely mean the end of their deal with Diddy, which was going to allow them to divest from assets that would have put them over the license limits in several states. This deal included the Sunnyside dispensary in my neck of the woods here in Worcester.
Tension Between Ayr Wellness and Seltzer Brand Levia Bubbling To The Surface? Founder Announces Departure and New Venture
Levia Co-Founder and CEO Troy Brosnan announced on LinkedIn Thursday that he is no longer with the company and is looking to launch a new cannabis brand sometime next year.
Brosnan said that he had been under “garden leave” the last three months and described his departure as “the best thing that has happened since the acquisition,” lending more credence to the rumors that Levia’s time under Ayr’s control has been less than an enjoyable experience.
Levia was one of the first successful canna-beverage products in Massachusetts, and quickly became one of the state’s most recognizable brands. Ayr Wellness originally purchased Levia for $20 million in February last year, with the company clearly looking to acquire the ability to create as many of their dispensary’s products in-house as possible. The Canadian publicly traded company (formerly known by the less catchy name of “Cannabis Strategies Acquisition”) initially entered the Massachusetts market through a buyout of Sira Naturals back in 2019.
Since these big purchases, things have been rough sledding for Ayr. The company has shuttered one of it’s cultivation buildings in Milford and has been laying off workers in a bid to stay afloat. The company also sold off a bunch of Arizona-based assets in February, and suffered a FY2022 Q4 loss of $166.4 million.
Brosnan didn’t share too many details about this next venture, but said his new brand will be launching in early 2024 across multiple states.
Saint Kitts and Nevis Considers Legalizing Growing/Smoking Cannabis “For the Enjoyment of A Person’s Freedom of Conscience”
While some countries look to legalize cannabis to create massive amounts of tax revenue and wealth, one of the smallest countries in the world is considering a different path: Saint Kitts and Nevis lawmakers are considering legislation that would allow adults to acquire a license to possess and grow cannabis, allowing residents to have access to marijuana without creating a commercial market.
The bill, which received its first reading in the country’s National Assembly on Monday, would allow for adults to apply for a license to be able to grow up to five cannabis plants in their home. This license would also allow for the possession and use of cannabis in private settings, as well as limited designated public areas.
The cost of a license would be EC$ 100 (that’s $37 in U.S dollars). The bill does not limit the licenses to SKN residents, leaving the door open to cannabis tourism from the United States and elsewhere.
While a EC$100 license for the right to possess cannabis may not be a perfectly equitable idea, at least cannabis in Saint Kitts and Nevis is already decriminalized, and the Eastern Caribbean Supreme Court has already ruled that cannabis use should be allowed by adults in their own homes, as well as by the Rastafarian community.
These licenses would more-or-less work as medical marijuana cards work here in the states, minus the need for a doctor’s approval. Applicants for a license would have to attest under the penalty of perjury that they believe that the use of cannabis is an integral part of their “religion, faith or belief-based upliftment and edification.”
For the uninitiated, Saint Kitts and Nevis is a small dual-island country in the general vicinity of the slightly more well known island of Saint Martin. The islands were some one of the first to be colonized by Europeans, but the country was eventually granted independence from the U.K in 1983. This independence allows the country to avoid British interference in the potential enactment of this law, as we’ve seen in Bermuda and the British Virgins Islands.
At 50,000 residents, SKN is the smallest country in the western hemisphere and the smallest federation in the world. Despite their small stature, Saint Kitts and Nevis get a single UN vote just like everyone else, meaning their pro-cannabis stance could someday play a role in changing international marijuana laws.
Alabama Gives Us the Wackiest Cannabis Regulation Yet
On this week’s episode of Blunt Banter, news that Alabama is only allowing peach flavored gummies had Ravon and I discussing some of the wackiest cannabis regulations we’ve heard of. Check it out:
You can catch the full episode of Blunt Banter here on Spotify or on Youtube.
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New England
WITH R.I. CANNABIS COMMISSION CONFIRMED, MORE STORES COULD OPEN IN 2024 (Steph Machado | Boston Globe)
But the lottery was also criticized by business owners who thought a merit-based system should have been used, with the state weighing the applicants’ qualifications before selecting who should get a license.
“It’s not something I come into with a prejudged notion,” Ahern said, adding that the commission will study methods used in other states.
As for when the new stores could be open, Ahern said it would likely be in 2024, but she didn’t commit to a specific timeline. The commission first has to go through the rules and regulations process, which is expected to take months.
ANALYSIS: Not a great sign.
I mean this with all due respect to Rhode Island’s new CCC Chair: you’ve been hired to regulate the cannabis industry. You’re allowed to have opinions on the best way to award licenses without those thoughts being “prejudged notions,” and it really shouldn’t take too long to realize that a process where regulators get to pick winners and losers is a terrible idea (particularly in Rhode Island, which is not exactly a corruption-free state).
Every day spent on this “listening tour” is another day in limbo for small cultivators and prospective dispensary owners. Hearing that additional dispensaries might be open 18 months from now isn’t going to bring relief.
SOME HAVERHILL POT SHOPS WITHHOLDING IMPACT FEES (Mike LaBella | The Eagle Tribune)
Controversy over the use of impact fees by host communities may be coming to a resolution based on new guidance expected from the state’s Cannabis Control Commission.
David O’Brien, president and CEO of the Mass Cannabis Business Association, said the state’s Cannabis Control Commission is on the verge of reissuing guidance on what it considers to be “reasonable” expenses related to impact fees.
“The commission has been talking about issuing this guidance within a week or two, along with model Host Community Agreement templates to be shared with host communities and their operators — both retail cannabis and cultivators and other cannabis license types,” he said.
ANALYSIS: Years after the controversial host community agreement concept was codified into law, everyone’s still trying to figure out what the rules are (as cities and towns continue to collect cash). As a freelance writer, I’m not in a position to lecture people about barely meeting deadlines, but hopefully the situation in Haverhill (and elsewhere) inspires the Commission to act swiftly, rather than just assuring us their on-track to meet their November deadline for publishing updated HCA guidance.
HOP LATENT VIROID INFILTRATES VERMONT CANNABIS GROW SITE (Tony Lange | Cannabis Business Times)
Hop latent viroid has made its way to Vermont, where the state’s Cannabis Control Board (CCB) confirmed its presence at a tier 1 cannabis cultivation site—the smallest of six license types with a max canopy size of 1,000 square feet.
Also referred to as “dudding” or “dudders” disease, hop latent viroid (HpLVd) is a highly contagious plant pathogen responsible for stunted growth, underdeveloped trichomes and diminished cannabinoid content, notably THC potency.
ANALYSIS: At this point, it would probably be bigger news if regulators found a grow site that didn’t have an HLV problem.
Rest of U.S / National
FOLLOWING CALLS FOR ACCOUNTABILITY, REUBEN MCDANIEL RESIGNS FROM NEW YORK CANNABIS CONTROL BOARD (Brad Racino | NY Cannabis Insider)
In May, the state’s largest cannabis trade group – the Cannabis Association of New York – called it “a conflict of interest for the Executive Director of DASNY to hold a seat on the Cannabis Control Board given the direct business involvement of DASNY with the CAURD program.”
At a recent meeting at the CUNY School of Law, the DASNY president faced an angry crowd of licensed retailers calling for transparency and accountability from his agency. One CAURD licensee, Carson Grant, refused to shake McDaniel’s hand after delivering a passionate speech – later telling NY Cannabis Insider he believed McDaniel was purposely lying on stage.
ANALYSIS: I can’t imagine McDaniel’s resignation is going to magically fix NY’s program, but it seems like a step in the right direction. (I also can’t imagine how little we would know about how NY’s legalization rollout was going if it wasn’t for the work of Brad and NY Cannabis Insider)
MARYLAND MARIJUANA REGULATORS SUSPEND COOKIES’ BALTIMORE LICENSE (Chris Roberts | MJBizDaily)
The June 2 suspension came less than a week after the medical marijuana dispensary’s grand opening in Baltimore and about a month before the widely anticipated July 1 launch of adult-use cannabis sales in the state.
Alleged violations of state law include “operational failure risking diversion or endangering health” that appear to be at least in part related to a marijuana “smoke blower” that’s become a Cookies brand staple, according to document posted on the Maryland Cannabis Administration’s website.
ANALYSIS: Cookies global expansion has been impressive, but it’s getting increasingly clear that they are flying a bit too close to the sun with this rapid, chaotic growth. (Also, I’m not in the company’s targeted demo, but the smoke blower concept just seems to reinforce the concept that Cookies is glorified mids. You simply don’t waste good weed by putting it in a “smoke gun.”)
STATE WARNS MARIJUANA GROWERS AFTER "MANY EXAMPLES" OF ATTEMPTS TO CHEAT TESTING ( Thomas Mitchell | Westword)
In the MED's recent memo, department heads warned business owners that evidence of "willful or deliberate" adulteration or alteration of marijuana testing samples could result in license suspension or revocation, up to six figures in fines and a class two misdemeanor for violating public safety.
In the past, the MED hasn't come down as hard.
ANALYSIS: I think it’s a bit naive to think this strongly worded notice is going to have any real impact on Colorado’s testing scene. It’s not easy to prove a sample was adulterated, and I’m skeptical that the state’s 13 testing labs are going to want to tattle on their own clients.
International
🇩🇰AURORA CANNABIS CLOSING PRODUCTION FACILITY IN DENMARK (Matt Lamers | MJBiz)
In early 2018, Aurora had envisioned creating “Europe’s largest” medical cannabis producer in Denmark when it unveiled plans to become the second licensed cultivator to build a facility in the Scandinavian country.
The fully built-out facility was expected to produce a stunning 120,000 kilograms (132.3 tons) of medical cannabis annually – significantly more than the European market demands.
ANALYSIS: Large companies are closing cultivation centers in Europe left and right, but we’re still supposed to believe that the continent is somehow going to offer refuge for MSOs from tough times in the U.S. and Canada. Consider me highly skeptical.
I’m not sure if this truly counts as a welcome distraction, but it is a welcome reminder that the cannabis industry isn’t the only place where large corporations are producing utter nonsense.
Toyota announced this week that they are looking into producing an electric car that has a “manual transmission” that requires the driver to “shift gears” to drive, even though electric cars don’t have a gearbox. They’ve even considering having the car “stall” if you shift gears incorrectly.
Why stop there, though? Personally, I want an electric reproduction of a Model T, complete with an unnecessary-but-functional crank start that you have to spin every time you start the car.
This week’s cat is Wednesday, who is clearly not open to your suggestions for the music playlist.
Thanks to reader Alexandra Gomes for the submission!
Special Bulletins
MJBizCon is offering scholarships for social equity applicants. The Deadline to apply is July 24th.
If you happen to be in the Worcester area, be sure to pick up a copy of Pulse Magazine to read my June column!