NY judge: Store accused of selling illicit cannabis should reopen

NY, NY
Enforcement hits a hurdle

What happened: A New York state judge ordered the city to allow a Queens store to reopen that was accused of selling cannabis illegally, The New York Times reports. 

The judge ruled that the city’s actions violated due process after the original summons was dismissed, and criticized the city for keeping the store padlocked on shaky legal grounds. 

What they’re saying: “The court acknowledges that the unlicensed sale of cannabis within the City of New York represents an enormous public health concern,” Justice Kevin J. Kerrigan said. 

“However, summarily shuttering businesses prior to taking the necessary steps to determine whether a violation has occurred stands against the cornerstone of American democracy and procedural due process.”

And: “We are confident that we are acting in accordance with the law to protect public safety,” Liz Garcia, a spokesperson for the mayor’s office told The Times. 

Why it matters: Sure, it’s only one store, but the judge’s ruling could throw a wrench in Mayor Eric Adams’ “Padlock to Protect” initiative to shut down the illicit cannabis shops that have flourished since cannabis was legalized in the state.

So far, the initiative has shut down over 750 stores in an effort to drive consumers — and associated profits and tax revenue — to licensed dispensaries. 

-JB

“While efforts to bring about Marc’s release continue, we are urgently concerned about Marc’s declining health. He has lived with chronic pain for decades, having undergone three back surgeries, a spinal fusion, a hip replacement, and two knee surgeries,” a bipartisan group of lawmakers wrote to Secretary of State Antony Blinken. “Without access to the medical marijuana and other specialized treatments necessary to subdue his pain, Marc’s condition has progressively worsened.” 

Marc Fogel is a US citizen imprisoned in Russia for possessing medical cannabis legally obtained in Pennsylvania. Signatories of the letter include Sen. Bob Casey (D-PA) and Sen. Marco Rubio (R-FL), among others. 

Lawmakers are urging the Biden administration to secure Fogel’s release. They are pressing the State Department to designate him as wrongfully detained to intensify diplomatic efforts for his release, drawing comparisons to the case of WNBA player Brittney Griner. 

However, despite ongoing efforts, Fogel’s case remains unresolved, with concerns about his declining health and lack of transparency from the administration. Read more. 

• Canadian cannabis firm Organigram reported C$2.8 million of net income on $41.1 million of revenue, up 25%.

• Rubicon Organics reported $4 million gross profit on $12 million of net revenue. 

• Springbig, a cannabis software firm, reported a $600,000 net loss on $6.6 million of revenue.

Martha’s Vineyard and Nantucket get more weed 🚢
Nova Farms says it will be the first company to transport cannabis to Martha's Vineyard and Nantucket, after the Massachusetts Cannabis Control Commission allowed maritime transport to address supply shortages on the islands. Prior to that ruling, all cannabis sold on the islands had to be grown on the island. 

No smoking 🚫
Senator Joe Gruters proposed a bill to ban smoking in Florida’s public spaces if voters approve cannabis legalization in November. The bill would apply to smoking tobacco, vaping, and marijuana, and aims to regulate public smoking to protect public health and safety. Read more. 

ND medical 🤝 recreational cannabis
Medical cannabis businesses in North Dakota — companies like Pure Dakota Health and Curaleaf — heavily financed the campaign to legalize recreational cannabis, contributing over $287,000. North Dakotans are set to vote on legalization in November. Read more. 

Dallas to decriminalize? 🚓
Dallas voters will decide on cannabis decriminalization in November after the City Council approved placing the initiative on the ballot. The measure would decriminalize possession of up to four ounces of cannabis, preventing arrests and citations for low-level offenses and barring police from using the odor of cannabis as probable cause for searches. Read more. 

NYSE and Schedule III 📈
Will major US stock exchanges like the NYSE or Nasdaq list US cannabis companies if or when cannabis is moved to Schedule III? “No comment,” was the answer Jeremy got when he reached out to NYSE. Nothing yet from Nasdaq. But most experts say the exchanges will wait for broader rules from Congress, rather than immediately list companies. Green Market Report has more.

Anne Forkutza, who held multiple roles at Dutchie — most recently Head of Social Impact and Industry Partnerships — is leaving the company, she said on LinkedIn.

TerrAscend secured a $140 million loan to help pay off debts and to fund expansion. The loan has a 12.75% interest rate, is due in 2028, and gives the company more financial flexibility without affecting its ownership structure.

Planet 13 Holdings Inc. partnered with rapper Wiz Khalifa’s Khalifa Kush to cultivate and sell exclusive Khalifa Kush products at their Las Vegas dispensary. A launch event will take place August 19, 2024, and Wiz Khalifa will make a personal appearance at Planet 13 on August 30.

Trulieve Cannabis Corp. announced the opening of a new medical cannabis dispensary in New Port Richey, Florida, with a grand opening event on August 16, 2024. This is Trulieve's second dispensary in the area. 

County Road Cannabis opened in Orange County, New York — adding another licensed cannabis shop in the state. 

THC-infused beverages from Cann and TBD, a newish brand, are popping up on store shelves in New York City, Jeremy spotted last night. But state regulations stipulate that infused products must only be sold at licensed dispensaries, so it’s an interesting gray area: 

O-H-... -I-O! 💰
Ohio’s newly legal cannabis market generated over $11.5 million in sales within the first five days. Including medical cannabis sales, Ohio is on track to reach nearly $1.3 billion in annual sales.

Ohio’s early sales performance is comparable to nearby Illinois, which saw nearly $11 million in sales during its first week of legal cannabis sales in 2020.

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