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Marijuana Companies laying off hundreds of workers, deemed “essential”.

Marijuana companies lay off hundreds, retrench amid economic woes

Women, minority execs show few gains in U.S. cannabis industry, according to the latest data from the MJBiz Diversity, Inclusion and Equity Report.


While business around the world shuttered as COVID-19 spread, the marijuana industry was deemed “essential” in nearly 30 states and stood to gain from the pandemic.

But more than two years later, amid rising inflation and fears of a recession, North American cannabis companies are cutting hundreds of jobs, closing retail outlets and cultivation facilities or shuttering altogether.

The marijuana industry mirrors mainstream companies that saw similar demand and now are struggling to right-size their businesses.

Sales of Peloton bikes spiked when gyms closed and people sought fitness alternatives; but the New York-based company has axed more than 4,000 jobs so far this year.

The pandemic-era e-commerce boom that boosted Shopify’s business also appears to have cooled, and the Canadian company, which makes the technology that powers online stores, has laid off about 1,000 workers.

The cannabis industry layoffs and retrenchment have affected plant-touching companies large and small as well as tech businesses such as Akerna of Colorado, Dutchie of Oregon and delivery operator Eaze of California.

The factors behind the cannabis retrenchment are numerous. They include falling wholesale marijuana prices, cash-strapped consumers and structural changes affecting the industry, experts said.

Among the more notable plant-touching companies that have been caught up in the fallout in recent months:

  • California-based cannabis advertising giant Weedmaps cut 10% of its roughly 600-member workforce, citing market contractions in California, Colorado and Oklahoma.
  • Arizona medical marijuana grower Nature AZ Medicine laid off around 100 employees as medical sales drop and recreational sales spike.
  • Michigan-based Lume Cannabis closed four of its roughly 30 stores in the state but did say it plans to open three additional stores in more populated areas. The realignment, disclosed in July, comes at a time when marijuana prices in Michigan have tumbled because of market saturation.

Corporate turnarounds

In addition to inflation and economic woes, cannabis businesses are grappling with staffing issues.

For one, many public marijuana companies are undergoing turnarounds, which often translate into the shedding of employees.

“The guys who come in to handle turnarounds don’t understand the market and cannabis,” said Avis Bulbulyan, CEO of Siva Enterprises, a California-based marijuana consulting firm.

Edmonton, Alberta-based Aurora Cannabis said in June that it was cutting 12% of its workforce as part of a corporate restructuring.

The company expects the move will save up to 90 million Canadian dollars ($69 million) and put it on the path to profitability. The company’s goal is to turn its first profit next year.

Another Canadian public company, Canopy Growth Corp., disclosed in August it cut 245 employees – or about 8% of its workforce – as part of sweeping changes across the company designed to help stem recent losses and nudge the struggling producer to profitability.

Canopy said it expected the cuts and adjustments to generate up to CA$150 million in savings in 12-18 months.

Canopy also closed its cultivation facilities on 23 acres in Niagara-on-the-Lake, Ontario, last year.

Echoes of the dairy industry

“The legal cannabis business is volatile,” said Daniel Sumner, professor of agricultural and resource economics at the University of California, Davis and co-author of “Can Legal Weed Win? The Blunt Realities of Cannabis Economics.”

“It’s a new industry,” he said, “and companies are coming and going and being acquired in all parts of the industry – not just growing and processing and selling.”

Consolidation in the marijuana industry is similar to what happened to Wisconsin’s dairy industry, which lost 10% of its farms in 2019 and 44% over the past 10 years.

“Production went way up, but the number of farms went way down,” Sumner said. “It’s consolidation. A lot of that consolidation means if you’re a manager, you call it labor-saving efficiencies.

“But if you’re a worker, you lost your job.”

Despite the cost of other products rising because of inflation, the price of marijuana has declined, another factor impacting companies’ ability to retain employees.

In Colorado, for example, the wholesale price per pound of marijuana was $709 as of July 1 – an all-time low – and down 46% from $1,309 a year ago and nearly 60% from $1,721 in January 2021, according to Colorado Department of Revenue data.

“Farm-level cannabis costs coming down is the reality of this business,” Sumner said. “It’s partly improved management; some is technology.”

But, Sumner said, like other agricultural crops, price declines in the marijuana industry should be expected.

“Adjusting for inflation, we now spend 10% of our income on food – not 4% like we did two generations ago – and there’s no reason to think cannabis won’t follow that trajectory.”

 Structural changes

And just as practices shifted from a customer-focused approach at grocery and liquor stores where someone would tell you about the products, practices at cannabis retail stores also are likely to see changes that result in the need for fewer employees.

“Everybody used to buy their beef or their fish from the person who really knew beef and fish – you walked in and talked to the baker, the butcher or the fish monger about what you want,” Sumner said.

“That’s the way it’s handled in cannabis now. But cannabis is moving away from it. It will be cheaper and more available, but there won’t be the services and employment.”

Like other industries, venture capital funding also has become scarce for cannabis businesses seeking investors to fuel their growth.

Without financing, it’s tough to keep as many employees as possible on staff, said Karson Humiston, founder and CEO of Denver-based cannabis recruiting network Vangst.

“People are really tightening the belt and working to preserve cash because funding is hard to come by,” Humiston said.

“When companies have a harder time raising capital, they need to make sure they have enough cash to weather the storm. The first thing to go is expensive headcount.”

The majority of job cuts are at the senior level – not hourly employees who work in grows or retail shops, Humiston said.

And with many multistate operators using more gig employees than in the past, Vangst is having its busiest summer ever.

“People are still purchasing and consuming cannabis, so these hourly workers are essential,” she said.

“Cannabis still needs to be grown, packaged and delivered to customers. Those are hourly roles.”

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Trulieve has completed the acquisition of an Operational 64,000 sq. ft. Cultivation Facility in Phoenix and Celebrates One Year Anniversary of Recreational Cannabis Sales in Arizona

TALLAHASSEE, Fla., Jan. 21, 2022  Trulieve Cannabis Corp In Recent News announced it has completed the acquisition of an operational 64,000 sq. ft. cultivation facility in Phoenix, Arizona.

Trulieve will pay $13.75 million cash at closing, with potential milestone payments subject to earn-out and escrow requirements.

“We are excited to close this acquisition which is in line with our strategic priorities. The facility strengthens Trulieve’s presence in the cornerstone market of our Southwest hub, as well as expands our cultivation capacity. We look forward to serving more patients and customers throughout Arizona with our high-quality, proprietary brands.” said Kim Rivers, CEO of Trulieve.

The new cultivation facility immediately improves supply chain capacity and becomes Trulieve’s fifth cultivation facility in Arizona, supporting Trulieve’s 17 dispensaries in the state of Arizona with flower for medical patients and adult-use customers. Trulieve locations in Arizona include Avondale, Casa Grande, Chandler, Cottonwood, Glendale, Guadalupe, Lake Havasu, Mesa, Peoria, Phoenix, Scottsdale, Tempe and Tucson.

Trulieve is also celebrating it’s one year anniversary of Recreational Cannabis in Arizona which occurred shortly after voters approved Proposition 207, which legalized the possession and use of marijuana for adults. Proposition 207, also known as the Smart and Safe Arizona Act, was a voter initiative that appeared on the November 3, 2020 Arizona general election ballot. Passing with about 60% of the vote, the proposition allows for the legalization, taxation, and recreational use of cannabis for adults 21 and over. Proposition 207 includes a new statute (A.R.S. § 36-2862) that authorizes some people to petition a court for an order that will seal their marijuana-related criminal records. Eligible petitioners are those who were arrested, charged, convicted or acquitted of any of the below listed offenses based on conduct occurring before November 30, 2020.

Kim Rivers, CEO of Trulieve

“Arizona’s adult-use market has surpassed expectations in its first year and our local teams are thrilled to celebrate this milestone with our patients and customers,” said Kim Rivers, CEO of Trulieve. “We are excited to celebrate this milestone with our loyal customers as we continue to expand access to across the state.” Trulieve-affiliated dispensaries in Arizona are located in Avondale, Casa Grande, Chandler, Cottonwood, Glendale, Guadalupe, Lake Havasu City, Mesa, Peoria, Phoenix, Scottsdale and Tucson.

 

 

 

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Active Health Foods, Inc. announces joint venture with the Hub Craft, a licensed Massachusetts cannabis cultivator.

LOS ANGELES, CA January 6, 2022, Cannabis Global, Inc. and Active Health Foods, Inc.  today announce the cannabis consumer brands to be included in their recently announced letter of intent to create a joint venture with the Hub Craft, a licensed and permitted Massachusetts cannabis cultivation, manufacturing, and retail company.

The proposed joint venture plans to bring the following Hub Craft brands into the California marketplace. 1. Freeway Cannabis by Rick Ross 2. Payton’s Place by NBA Star Gary Payton 3. TRUTH34 brand via Paul Pierce, 10x NBA All-Star, aka ‘The Truth’. The brand will include flower, vapes, bubble hash, pre-rolls, and edibles. 4. Whoopi Goldberg’s brand “Emma & Clyde” to include pre-rolls, flower, vapes, and edibles from the health-conscious brand “Emma & Clyde”.

Under the terms of the proposed joint venture, Cannabis Global, Active Health and The Hub Craft will form a California corporation to enter the California cannabis marketplace. In addition to being granted exclusive licenses on all Hub Craft products, branding, and associated technologies for the State of California, the joint venture will be provided an option to purchase a 51% controlling position in Hub Craft anytime within nine months of the effective date of the joint venture for a price of $15 million.

“Our Company, Cannabis Global, will add the licensed California cannabis component to this proposed joint venture. We are proud to add these brand names to the endeavor”, commented Arman Tabatabaei, CEO of Cannabis Global. “The California market is highly competitive, and branding is more important than ever. These powerhouse cannabis brands will be an impressive addition to our California marketing efforts”

We believe these brands will significantly increase the marketability of the future joint venture’s product offerings,” commented Mr. Glen Bonilla, CEO of Active Health. “With the competitiveness of the mature California markets, branding is proving to be a key competitive differentiator. We are looking forward to working with both Hub Craft and Cannabis Global to make these brands highly successful in the California market.”

While the executives of the companies have agreed to the proposed initial terms of the joint venture to address the California market as outlined in the non-binding letter of intent, no definitive agreement has been signed. Moreover, there are still a considerable number of details to be worked out before the companies would be able to finalize an agreement. Thus, there can be no assurance a transaction as contemplated will ultimately take place.

We are marketing and producing Comply Bag(TM), an innovative solution for cannabis storage, transport and tracking. Our subsidiary, Natural Plant Extract (NPE), is a Southern California licensed cannabis manufacturer and distributor which licenses our technologies to produce edibles for the cannabis marketplace.

Comply Bag Technology

 

Cannabis Global has filed three non-provisional and multiple provisional patents for cannabis infusion and nanoparticle technologies and continues an active research & development program. About Active Health Foods Active Health Foods recently acquired CoinChamp, Inc., and the operations of CoinChamp now represent the operations of the entire Company. CoinChamp is developing a platform for the plug-and-play creation of non-fungible tokens.

More details will be disclosed in the near future. Glen Bonilla, President and CEO, is an experienced serial entrepreneur with an extensive banking background, years of managerial experience, and a fresh vision as a tech-savvy millennial CEO.

About The Hub Craft

The Hub Craft, LLC is a minority-led provisionally licensed business with future cultivation, manufacturing, and adult-use dispensary locations. Their facilities are currently in development in Clinton, Holyoke, and Fitchburg, Massachusetts. The Hub Craft is the exclusive distributor of TRUTH34, Emma & Clyde, Payton’s Place, and Freeway Rick Ross branded products in Massachusetts.

While the executives of the companies have agreed to the intent to merge, via a share exchange type of arrangement, as outlined in this press release, no definitive agreement has been signed. Thus, there can be no assurance a transaction as contemplated will ultimately take place. Except as required by applicable law, we do not intend to update any of the forward-looking statements so as to conform these statements to actual results

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Food and Drug Administration (FDA) Disclosure

Statements in this website have not been evaluated by the FDA and are not intended to diagnose, treat, or cure any disease. Always check with your physician before starting a new wellness or dietary program. Please view our full terms of use agreement for more information and the terms and conditions governing your use of this site. Cannabidiol (CBD) is a natural derivative of cannabis plants that promote and support nutrition, health and wellness, as well as anti-aging. Source: US Government Patent #6,630,507: “cannabinoids as antioxidants and neuroprotectants.” Marijuana Company of America, Inc. (MCOA) does not sell or distribute any products that are in violation of the United States controlled substances act (US CSA) in California. MCOA grows, produces, sells and distributes solutions for health, wellness, and anti-aging companies. MCOA solutions include cannabis- and/or CBD/CBN-based elements. Where allowed, MCOA may sell or distribute solutions containing THC. For more information, please contact us.   Marijuana Company of America · MCOA · Diversified Holding Company
   

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Cannabis Global in Distribution and Purchase Option Agreement for Cannabis Transport System Comply Bag(R)

LOS ANGELES, CA November 10, 2021 Cannabis Global, Inc. , an innovation-oriented company investing in disruptive cannabis technologies, today announces it has entered into a distribution agreement with Humboldt Bliss to distribute the Company’s Comply Bag®, cannabis transport system with integrated smartphone track and trace app.

As part of the agreement, the Company also also granted Humboldt Bliss an option to purchase a controlling interest in Ethos Technology LLC, dba Comply Bag®, a wholly-owned subsidiary of Cannabis Global, for $4 million, which controls the products and the associated intellectual property.

David Welch, the managing partner at DRWelch, a Los Angeles-based law firm specializing in regulatory compliance and intellectual property issues with a strong specialization in the cannabis industry, who serves as general counsel of Humboldt Bliss, commented, “We see strong possibilities relative to Comply Bag® especially relating to what most people in the cannabis industry believe will be an upcoming national market for cannabis. Comply Bag® is the best way to stop diversion of cannabis from the legal market into the illicit market and we believe likely to become a standard requirement for Government approved cannabis facilities. As more licensed and legal cannabis commerce occurs, the secure tracking and tracing of cannabis shipments will become a vital interest of both corporations and regulatory agencies.”

 

 Comply Bag® utilizes proven security, tamper resistance, and tracking

features that will allow cannabis companies to transport products

as safely as large financial institutions transport cash and marketable securities.

The product includes the integration of the METRC applications programming interface (API)

into a custom smartphone app that will allow cannabis shippers and receivers to scan shipments

with the information being integrated directly into the leading cannabis track and trace system.

At least 15 states, including California. #CannabisGlobal

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New Year’s Celebration – Why Pet owners increasingly turning to CBD for their animals – Full Spectrum CDB! NO THC.

We can all appreciate having our family pet with us so much, that we may come to think of them as Family.

While we Celebrate this New Year with Fire Works and Car Horns, our Furry Family may not be so happy. Loud noises especially terrify many domestic and rural animals.

However there may be a CBD Product That Gives Natural Calming Qualities with regular use.

Many have found and experienced the many benefits of CBD in their lives, just recently and perhaps have wondered if CDB can be of benefit to their furry or feathered pet.

The good news is that every mammal is endowed with an Endocannabinoid System or ECS. Research is now showing the promise of CBD in our lives. We, at HempSMART, are poised to deliver to your doorstep, 3rd party Quality tested, organically grown in the USA, Full Spectrum CDB minus ALL THC, in 250mg or 500mg drops (flavored in Strawberry, Orange, Lemon or Mint). 300 mg of CBD Pain Capsules or CDB Pain Cream. Patented CBD Brain Capsules and Face Cream (CDB infused). Ships same day as order

 

Also, on the Human Side, we need to help our Immune System and we are promoting our Patented “Brain” capsules & Drops.

Inspirational Technologies

Steven Smith, CEO Owner/Founder

Inspirational Technologies

Background Noise Studios

InspirationalTech.org

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