Ohio recreational sales kick off today

OHIO
Buckeyes get their weed

What happened: Attention all Ohioans! Good things come to those who wait. 

Legal cannabis sales will officially kick off in our home state today, well ahead of the planned September 7 deadline. 

Ohio’s Division of Cannabis Control (DCC) announced the 98 dispensaries that received dual-use Certificates of Operation, allowing them to sell recreational cannabis starting August 6. (Yes, that’s today!)

Businesses confirmed to launch sales on August 6 include:

• The Cannabist Company (Columbia Care and gLeaf brands)

• Curaleaf Holdings

• Green Thumb Industries (Rise)

• Klutch Cannabis (The Citizen by Klutch)

• Pharmacann (Verilife)

• Trulieve Cannabis Corp.

• Verano Holdings (Zen Leaf)

• Vext Science (Herbal Wellness Center)

Here’s the complete list. 

What they’re saying: “Today marks a significant step forward for Ohio, and the nation at large, as we celebrate the end of cannabis prohibition and turn the page on a new chapter that will deliver countless benefits for the Buckeye State in the form of job creation, economic development, investment, state and local revenue, and social progress,” Verano CEO George Archos said. 

And: “We firmly believe that Ohio has the potential to be one of the nation's most exciting cannabis markets and have prepared for this moment by increasing cultivation capacity and prioritizing flower availability to accommodate the launch, Curaleaf CEO Matt Darin said. 

Back up: Ohio voters last year approved Issue 2, the marijuana legalization Initiative.

Since then, us Ohioans have been waiting on pins and needles for the licensing process to be complete to allow medical dispensaries — and soon others — to begin recreational sales. 

Why it matters: Speed, the potential size of the market in an industry that sorely needs winds, and the pressure Ohio puts on neighboring states.

First, sales have begun far ahead of the September 7 deadline. DCC Superintendent James Canepa credited the state’s existing Medical Marijuana Control Program for the smooth transition. 

Second, Ohio’s big population and relatively unrestricted market is a boon to cannabis companies who’ve been looking for new markets, as sales growth has plateaued in many more mature states. Executives at big multistate operators like Curaleaf and Verano are clearly excited about the state’s potential. 

And third, as mentioned in yesterday’s newsletter, Ohio’s recreational cannabis sales put immense pressure on neighboring states like Pennsylvania to follow suit, as their cannabis dollars and the associated tax revenue are instead flowing to Ohio. 

What’s next: Dispensaries with provisional licenses must resolve incomplete applications before starting sales, and the DCC will continue to review and approve additional dispensary licenses which will become operational over time. 

The DCC will evaluate market demand to determine further growth by September 2026 and potentially issue a new wave of licenses. 

-CB

“It’s a racist program, I called it out for what it was,” John Loe, a cannabis shop owner in Sonoma County, California, told SF Gate. about the county’s cannabis equity grant program. “I hovered over it and made sure it wasn’t racist, and because of that they were not able to be as racist as they would have liked to have been.”

But Loe received nearly $40,000 from a social equity grant program he criticized as “racist” and discriminatory against white people. Despite his public accusations, the program does not consider race in its eligibility criteria, focusing instead on those impacted by cannabis criminalization. 

The effectiveness and fairness of such social equity programs in the cannabis industry are under scrutiny, with ongoing debates about their impact and implementation.

Some that scrutiny is good faith. Others, not so much. Read more. 

NH expands state’s medical cannabis 🌿

New Hampshire Governor Chris Sununu signed HB 1278, which expands the state’s medical cannabis program by allowing doctors to prescribe cannabis for any debilitating condition they deem fit. This law introduces more flexibility for healthcare providers and aims to make medical cannabis more accessible to a broader range of patients, while also maintaining a structured list of conditions for less experienced providers. Read more. 

Recall delays run rampant ⌛

There are significant delays for recalling contaminated products in several states, according to an analysis by MJBizDaily, with recalls often coming too late to prevent consumption or sale of products contaminated with mold or pesticides. This issue is exacerbated by allegations of testing labs tampering with results to favor clients.

Nebraska cannabis keeps chugging 🚂 

Two cannabis legalization bills in Nebraska were introduced by Senators Justin Wayne and Terrell McKinney, respectively, and had initial committee hearings. Both bills aim to legalize and regulate cannabis, arguing it could generate significant tax revenue and address the ongoing harm of the war on drugs. Read more. 

Cannabis earnings season is in full swing. Here’s what we’ve got so far:

Green Thumb Industries reported another profitable quarter, a rarity in the ailing sector. The company reported $21 million in net income on $280 million of revenue, up 11% sequentially. Cannabis is an expensive business, though: The company reported $150 million of gross profit, an attractive 53% of revenue. 

Ascend Wellness also reported second-quarter results yesterday. The company reported a $21.8 million net loss on $141.5 million revenue, up 15% sequentially. 

Nasdaq-listed cannabis real estate firm Innovative Industrial Properties (IIP) reported $41.7 million in net income on $80 million of revenue for the second-quarter. 

Canadian cannabis firm SNDL reported Q2 results last week. The company reported a $5 million (CAD) net loss on $228 million of revenue, a 1.6% percent sequential decline. 

The New York Office of Cannabis Management (OCM) posted the job application to be the agency’s new Executive Director on LinkedIn. Felicia A.B. Reid is currently serving in the role in an interim capacity.

Jose Jimenez has been freed from prison after almost two decades locked up for charges stemming from intent to distribute cannabis and a firearms charge — though the weapon was never used. Read more from Last Prisoner Project. 

Far from ‘fun’ in the traditional sense but good news we’d like to celebrate nonetheless.

Pennsylvania’s Marc Fogel wasn’t part of Russian prisoner swap, but his family keeps pushing | Pennsylvania Capital-Star

Cannabis Commission says it failed to collect $500,000 in licensing fees | CommonWealth Beacon

Leading Democratic senators call for marijuana to be ‘entirely’ descheduled | MJBizDaily

Weed contaminated with fentanyl found in unlicensed Connecticut smoke shop | New York Post

Police review board investigating NYPD raid of Staten Island pot shop | The City

Low dose THC and heart rate? | Dr. Ben Caplan’s Substack