A TIME TO REFLECT
Flow Cannabis Co. reflects on its long list of woes
California’s Flow Cannabis Co., with its innovative business model and Flow Kana brand, was once one of the most-hyped companies in the industry. Now, its executives are reflecting on the tough lessons they’ve learned amidst an unsuccessful pivot resulting in another round of layoffs, reports MJBizDaily.
Originally, Flow was a distributor, contracting underground California growers who wanted to transition to the regulated market. More recently, they ditched that idea to grow their own supply instead.
Upon reflection, there is a long list of challenges
- Bet on federal legalization
- Attempted to pivot to growing their own cannabis as the unregulated market grew
- Fell victim to California’s troubled regulatory system, sky-high taxes, rock-bottom prices and shrinking dispensary numbers
- Alienated its original suppliers, Emerald Triangle growers, because of a contract dispute
- Lost 80 acres in an accidental fire started by an employee (which also destroyed three houses and sent 250 fleeing to safety)
- Lost some major investors and lost the support of one, who had veto power over board decision-making
- Had to destroy some of its first harvest last fall due to mold
The original contracted cultivators say they feel “used” by the company: “They used us to get investment money,” the farmer said. “Their idea was to get these contracts with 21 farmers with a guaranteed amount of pounds, that’s ‘X’ amount of dollars. They went out, raised money on that – their relationships with us – as we get screwed.”
Enjoy Cannabis Daily each morning at 7 a.m.
WHAT’S UP DOC?
Access grows for New York medical cannabis
Doctors in New York are now permitted to authorize medical cannabis for any condition rather than an approved list through the state’s new registration and certification system, reports Marijuana Moment.
As the state preps for adult-use sales, state regulators have also:
- Allowed flower sales to the medical market
- Waived $50 fees for medical consumers
- Announced plans to allow home cultivation
“Launching the new patient certification and registration system and expanding eligibility for the Medical Cannabis Program are significant steps forward for our program,” said Chris Alexander, the executive director of the Office of Cannabis Management. “We will continue to implement the [The Marihuana Regulation & Taxation Act] and ensure that all New Yorkers who can benefit from medical cannabis have the access they need to do so.”
OH CANADA
Canadian cannabis drama ensues with closures and infighting
Two recent closures show Canadian cannabis is still finding its way:
- Agro-Greens announced it is closing Shelter Market, a beloved online medical cannabis portal, on Twitter. (FYI – Licensed Producer Mendo is offering a discount to those who sign up with them.)
- BC Craft has filed for bankruptcy, according to a press release
And petty social media bickering continues among competitors: After consultant Farrell Miller proudly tweeted a package of LOOSH edibles she designed, the CEO of Rubicon Organics called it out for a perceived compliance infraction for using neon colors.
After initially deleting his criticism saying it was meant to be a direct message, he doubled down: “I was trying to be kind by deleting, but 100% stand behind the statement,” wrote Jesse McConnell. “Fluorescent cooors [sic] with cotton candy like brand element is definitely non-compliant. Feel free to screenshot.”
Sigh.
