In the News 2/9/23
Canopy Growth lays off 800 employees
Canopy Growth Corp, a Canadian cannabis company based in Smiths Falls, Ontario, has announced its plans to lay off 800 employees, approximately 35% of its total workforce. This move is part of a larger transformation plan, which will see the company close its flagship facility in Hershey and consolidate some of its cultivation operations. The layoffs are expected to take place over the next several months.The CEO of Canopy Growth, David Klein, stated that the company needs to reach profitability to become a leader in the North American cannabis market. He added that the company’s business model is being transformed into an asset-light model and that these changes are necessary to drive the company toward profitability and growth.In a recent financial report, Canopy Growth reported a net loss of $266.7 million, or 54 cents per diluted share, for the quarter that ended December 31st. This result was higher compared to the same quarter the previous year, where the net loss was $115.5 million, or 28 cents per diluted share. The company attributed the larger loss primarily to non-cash fair value changes and increased asset impairment and restructuring costs.In terms of revenue, the third quarter of the company’s financial year saw net revenue of $101.2 million, which declined from $141.0 million in the previous year.
Connecticut’s Attorney General William Tong sued five retailers
Connecticut’s Attorney General, William Tong, has sued five retailers for selling illegal delta-8 THC products that mimic popular snack foods and candies, which are considered youth-oriented. The illegal delta-8 THC products were found during unannounced visits to vape shops and gas stations in December 2022. Delta-8 THC is a naturally occurring chemical compound found in hemp and marijuana plants and is illegal in Connecticut, even in licensed cannabis retailers. Tong is also sending warning letters to Connecticut-licensed retailers about the sale of delta-8 THC and the dangers of electronic vaping products. The sale of delta-8 THC products over 0.3% THC is considered illegal and businesses found in violation are subject to criminal and civil penalties.
New York Announces Opening of Third Cannabis Dispensary, First in the Southern Tier
Governor Kathy Hochul announced on February 8th, 2023 that the first Conditional Adult-Use Retail Dispensary licenses in the Southern Tier of New York will open in Binghamton. The dispensary, called Just Breathe, will be owned and operated by a partnership between a local entrepreneur, Damien Cornwell, and the non-profit Broome County Urban League. The dispensary will be located at 75 Court Street and will offer locally sourced cannabis products. The opening of the dispensary advances the state’s Seeding Opportunity Initiative, which prioritizes providing licenses to justice-involved individuals and non-profits that serve such individuals. The dispensary will open for public sales on February 10th, with regular operating hours from 12 p.m. to 8 p.m. from Monday to Wednesday, 12 p.m. to 9 p.m. on Thursday, 12 p.m. to 10 p.m. on Friday, and 12 p.m. to 9 p.m. on Saturday.
Cannabis Prisoner Luke Scarmazzo Released
Luke Scarmazzo, who was known as California’s last cannabis prisoner, was recently released from federal custody after spending nearly 15 years in prison. Scarmazzo and his business partner, Ricardo Montes, were operating a state-legal medical marijuana dispensary in compliance with California’s Proposition 215, which legalized the medicinal use of cannabis in the state in 1996. Despite operating in accordance with state law, the pair were raided by the DEA in 2006 and convicted of operating a continuing criminal enterprise in 2008. Scarmazzo was sentenced to 21 years and 10 months in prison, while Montes received a 20-year sentence. Montes was granted clemency by President Barack Obama in 2017, but Scarmazzo was left in prison. He was not pardoned by President Donald Trump, and it was not until a compassionate release petition was filed on his behalf in 2019 that Scarmazzo was finally freed. The campaign to free Scarmazzo was led by the Last Prisoner Project and was supported by criminal justice advocates, including former cannabis prisoner Weldon Angelos, who was pardoned by Trump in 2020. Only days after his release, Scarmazzo pledged to fight for those still serving time for cannabis-related convictions.
New ‘fix’ to Georgia’s medical cannabis program clears legislative committee
The Georgia House Judiciary Committee (Non-civil) has approved a bill aimed at resolving a legal issue that has prevented the state’s medical marijuana program from moving forward. House Bill 196 would increase the number of medical cannabis production licenses the state awards from six to 14, with the eight additional licenses going to companies that have filed lawsuits over denied license bids. The legal protests could potentially drag on for up to two years and prevent the program from providing low-THC cannabis oil to patients. The bill is seen as a way to resolve the litigation and get the program moving forward. The bill’s chief sponsor, state Rep. Alan Powell, R-Hartwell, said the legislation would “get us out of litigation.” The bill now moves to the House Rules Committee for a vote on the House floor.
