Week in Weed – July 6, 2024

| Staff

This past week at StratCann, we spoke with the industry about proposed regulatory changes, discussing what the government got right and what is missing the mark. We also looked at the five companies now offering cannabis distribution in Manitoba.

We also broke the story of MediPharm’s plans to close Canna Farms’ facility in BC and move its medical sales to Ontario. On Canada Day, we dropped our newest monthly Cannabis Industry Jobs update.

Lastly, this week, our newest company profile features BC’s Fort 20 Farms, a newer micro cultivator with products for sale in BC.

In other cannabis news…

SNDL Inc. announced that it completed the acquisition of the principal indebtedness of Delta 9 Cannabis Inc. from Connect First and Servus Credit Union Ltd. for a purchase price of $28,138,284. As a result, SNDL has become Delta 9’s senior secured creditor with a first-priority security interest in all of the assets of Delta 9 and certain Delta 9 subsidiaries. The Purchased Indebtedness brings Delta 9’s total indebtedness owing to SNDL to $40,653,352.

SNDL Inc. also announced that it had entered into an agreement to offer to purchase all of the issued and outstanding shares of Indiva and the business and assets of the Indiva Group. The Bid Agreement has been entered into in the context of Indiva’s CCAA proceedings as part of a sales process where the Indiva Assets will be marketed to prospective purchasers.

The Ontario government has told four of its largest provincial agencies, including the Ontario Cannabis Store (OCS), to allocate 25% of their annual advertising spending to Ontario publishers. StratCann has reached out to the OCS for more information on their past annual advertising expenditures for context. We’ll share that with our readers when the OCS can respond. 

Health Canada is hosting a hybrid meeting on July 10 with representatives from several cannabis industry associations discussing various updates from Health Canada on topics such as licensing, compliance, medical access, cannabis inspections, legislative changes, and more. It will include members of AQIC, C3, C-45, Craft Cannabis BC and the Canadian Chamber of Commerce

Village Farms International, the parent company of Pure Sunfarms, is listed as the 95th largest business in BC by revenue on their performance for the 2023 fiscal year, according to BCBusiness.

The Canadian Cannabis Spot Index was assessed at $4.50 per gram this week, or $3.37 after excise taxes are subtracted, down from last week’s C$4.56 per gram, according to Cannabis Benchmarks

PEI Cannabis wishes those attending the Cavendish Beach Music Festival this weekend to have fun and be safe. Unfortunately, that safe fun can’t include smoking or vaping cannabis, as the festival website notes that smoking is not allowed due to provincial regulations.

The City of Kawartha Lakes OPP seized 56 cannabis plants growing outdoors. One male was arrested and charged under the Cannabis Act.

International cannabis news

A Canadian woman admitted that she smuggled almost $1.8 million of cannabis into Bermuda. No quantity of cannabis was noted in news reports, just a dollar value. 

Collective cannabis growing clubs were allowed to begin in Germany on July 1 formally, but confusion around licensing, regulations and other aspects of the new laws continue to be a challenge. 

A federal judge in the US dismissed a lawsuit by several Massachusetts cannabis businesses who argued that the federal prohibition on cannabis is unconstitutional, saying only the US Supreme Court could overturn its 2005 ruling upholding the law.

A move to legalize medical cannabis in North Carolina appears to have died on the vine after the state House of Representatives did not take up the bill. 

However, the Eastern Band of Cherokee Indians Tribal Council in the same state voted to allow the sale of cannabis, opening the door for North Carolina’s first recreational cannabis dispensary to open by the end of the summer, despite being illegal there. 

Finally, one in four admissions to adult mental health ward in 2023 on Guernsey, an island in the English Channel, was likely to be linked to cannabis use, a report has found. The figures are based on “clinical judgement,” which means there could be other contributing factors, but doctors think it is more likely to be linked to cannabis than not, reports the BBC