Dec 16 2024

New Jersey Doubles Marijuana Social Equity Fee, Announces January Start for Cannabis Lounge Applications

The New Jersey Cannabis Regulatory Commission (CRC) has approved increase in the state’s social equity excise fee (SEEF), and introduced an application process for cannabis consumption lounges.

Starting January 1, 2025, the SEEF will increase from $1.24 to $2.50 per ounce. Revenue from this fee is directed toward programs supporting education, economic development, and social services in communities disproportionately affected by the war on drugs.

Over the past fiscal year, New Jersey generated approximately $2.6 million from the SEEF. The fee had previously fluctuated, dropping from $1.52 in 2023 to $1.24 in 2024, after starting at $1.10 when recreational marijuana sales were legalized.
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Dec 16 2024

LEEF Brands Becomes First Publicly Traded Cannabis Company to Integrate Bitcoin via $5M Debenture Offering

LEEF Brands, Inc., a publicly traded cannabis company, is making history as the first in the industry to adopt Bitcoin as a treasury reserve asset.

The company has announced a private placement offering of up to $5 million in Bitcoin-backed convertible debenture units. Canaccord Genuity will act as the lead agent for the offering, which is expected to close in January 2025. Each unit includes $1,000 in convertible debentures and 5,660 detachable common share purchase warrants. The debentures will mature in 2030, with a 10% annual interest rate, and are convertible into shares at $0.18 per share. Warrants will allow holders to purchase shares at $0.28 for up to 36 months.

The proceeds will be used to acquire additional Bitcoin, fund growth initiatives, and cover general corporate expenses. LEEF has already acquired 3.937 Bitcoin at an average price of $88,255.17 and secured it in an institutional-grade cold wallet. Following the offering, any future Bitcoin trades will be at management’s discretion.
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Dec 16 2024

New York Regulators Consider Limit of 1,600 Marijuana Retail Licenses

Regulators in New York are weighing a recommendation to temporarily limit the number of marijuana retail licenses to 1,600.

The suggestion comes from the Cannabis Advisory Board (CAB), which voted Friday to send the nonbinding proposal to the state Cannabis Control Board (CCB), according to a report originally published by MJBizDaily.

CAB Chair Joseph Belluck emphasized that the proposed limit is not a permanent cap but rather a strategy to stabilize the market during its early growth phases. The CCB would need to formally approve the measure for it to take effect.
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Dec 16 2024

Senate Democrats Push Schumer to Hold Standalone Vote on SAFER Banking Act Before Losing Majority Leader Role

A group of Senate Democrats are pressing Majority Leader Chuck Schumer to hold a standalone vote on the SAFER Banking Act immediately, according to staffers from two Senate offices.

The SAFER Banking Act, which seeks to provide marijuana businesses that are legal under state law with access to financial institutions, has stalled in the Senate, despite passing the Senate Banking Committee in September 2023 with bipartisan support. The urgency comes as Democrats will lose the Majority Leader position next month, at the start of the next Congress. Senate staffers speaking exclusively to The Marijuana Herald said that the “handful” of senators pushing for action believe “it would be a terrible look for the Democrats to hand over control without a vote”. They noted that the senators have refrained from publicly criticizing Schumer on the issue out of respect, but added that their patience is wearing thin.

The SAFER Banking Act has been a legislative priority for the cannabis community and for some lawmakers for years, with advocates emphasizing its role in addressing safety and economic concerns for marijuana businesses operating in a largely cash-based industry. Despite Majority Leader Schumer promising a full Senate vote soon after SAFER was approved by the Senate Banking Committee, no vote has been scheduled, with Schumer set to relinquish his role next month.
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Dec 15 2024

California Marijuana Sales Total $346 Million in November, Over $3.8 Billion Year-to-Date

There was $346 million in marijuana and marijuana products sold in California during November.

Marijuana sales in California remained steady in November, with the $346 million in sales representing a slight 0.5% decrease compared to November 2023 and nearly identical to the $345.5 million sold last month. This is according to data released by the Seattle-based research firm Headset.

The state’s total marijuana sales for 2024 have now surpassed $3.8 billion, keeping it on track to exceed $4 billion by year’s end. These sales have resulted in over $820 million in tax revenue.
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Dec 14 2024

Report: Massachusetts Surges to Third in U.S. Pre-Roll Sales, Tops $317 Million in a Year and $1.2 Billion Since Market Launch

Massachusetts now ranks third nationwide for pre-roll revenue, trailing only California and Michigan, according to data from Headset. 

Massachusetts prerolls sales reached $317 million in revenue from December 2023 to November 2024. This achievement is notable given Massachusetts’ modest population size, ranking 16th in the United States. Since the state launched its recreational marijuana market in 2018, pre-roll sales have exceeded $1.2 billion.

Over the past year, pre-roll sales in Massachusetts grew by 29%, with consumers purchasing more than 32 million units. Pre-rolls now account for 19.5% of total marijuana revenue in the state, making them the third-largest product category after flower and vapes. August 2024 marked a high point, with pre-roll sales reaching $29.9 million.
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Dec 14 2024

Vermont: $11.86 Million in Marijuana Sold in October, $116 Million in 2024

There was just shy of $12 million in legal marijuana sold in Vermont in October.

Data released by the Vermont Department of Taxes shows that there was $11.86 million in total marijuana sales in October, garnering the state $1.66 million in taxes. Sales were slightly less than, but roughly on par with, the $12.06 million sold in September.

For 2024, marijuana sales now stand at $116 million, with all-time sales just shy of $250 million.
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Dec 14 2024

New Washington House Bill Proposes Shifting Marijuana Licensing to Department of Agriculture

Washington State Representative Kristine Reeves (D) has prefiled legislation for the 2025 session that would move control of marijuana licensing away from the Liquor and Cannabis Board.

House Bill 1067 seeks to transfer licensing and regulatory authority for marijuana production, processing, and testing from the Liquor and Cannabis Board to the Department of Agriculture. This proposal builds upon a significant shift in regulatory responsibility enacted earlier this year, where marijuana testing labs were placed under the jurisdiction of the Department of Agriculture. That change, passed during the 2024 legislative session, took effect on July 1 and granted the department the authority to accredit and oversee testing laboratories.

House Bill 1067 explicitly states that all powers and duties currently handled by the Liquor and Cannabis Board in these areas would transition to the Department of Agriculture. This includes licensing and regulation of cannabis concentrates, useable marijuana, and infused products. Additionally, all records, equipment, and appropriations associated with these functions would also be transferred by July 1, 2026.
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Dec 13 2024

Kentucky Governor’s Office to Oversee Second Lottery for Medical Marijuana Dispensary Licenses

Governor Andy Beshear’s office has announced that it will partner with the Kentucky Office of Medical Cannabis and the Kentucky Lottery Corporation to oversee the second and final lottery for medical marijuana dispensary licenses.

This event will determine selectees for dispensaries in the Kentuckiana and Bluegrass regions. According to state officials, four selectees will be drawn from counties in these regions, excluding Fayette and Jefferson counties. Separate drawings will determine two selectees each for Fayette and Jefferson counties, which include Lexington and Louisville, Kentucky’s largest cities.

This lottery is part of Kentucky’s implementation of its medical marijuana law, signed by Governor Beshear earlier this year. The law establishes a tightly regulated medical cannabis program, allowing qualified patients access to cannabis products through licensed dispensaries. Kentucky’s approach includes using lottery systems to allocate dispensary licenses across the state’s regions, aiming to ensure fair access.
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Dec 13 2024

New York Court Blocks Marijuana License Processing for Some Applicants

A New York trial court judge has halted state regulators from processing certain cannabis dispensary licenses.

On Thursday, State Supreme Court Justice Sharon Graff issued a preliminary injunction preventing the state from processing licenses for dispensary applicants who had not secured municipal approval by November 17, 2023. The decision followed a lawsuit filed on behalf of four applicants who have secured locations but are awaiting state approval.

The plaintiffs argued that a now-waived rule requiring dispensaries to maintain a 1,000-foot distance from one another jeopardized their locations. Graff agreed, stating that the state created a scenario where a “belated designation of a secured location would be too close to a non-provisional license applicant’s previously designated secured location,” potentially invalidating the plaintiffs’ chosen sites.
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