FAILED TEST
Cannabis testing labs in Florida under fire
Florida regulators recently cracked down on several licensed medical cannabis testing labs, tightening the screws on a part of the cannabis industry that is increasingly coming under fire across the country, reports MJ Biz Daily.
The situation is multifaceted, including:
● A growing public mistrust of cannabis testing-lab results.
● A pervasive trend among cannabis businesses to shop for labs that will give them favorable test results.
● Testing labs that say they are struggling to retain market share and losing money as unethical counterparts gain new clients by inflating THC potency numbers.
A possible solution would be for the state to create an audit trail that checks testing results.
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GOING GREEN
British American Tobacco makes moves into cannabis
British American Tobacco (BAT) has taken a noncontrolling minority stake in German cannabis company Sanity Group for an undisclosed sum, reports MJ Biz Daily.
Sanity said the funding was “Europe’s largest cannabis investment round to date” and that it had now raised funds of more than $100m.
“Nearly half” of the new $37.6m funding round will be spent on Sanity’s medical cannabis business, according to Bloomberg, with the remainder going to preparations for adult-use cannabis legalization in Germany.
TO THE PEOPLE
Voters in Wisconsin may be able to have their say on cannabis legalization
Marijuana Moment reports that the governor of Wisconsin is asking lawmakers to give the people the right to put citizen initiatives on the ballot — and advocates are hopeful that the move could open the door to finally letting voters decide on cannabis legalization.
Gov. Tony Evers (D) signed an executive order last week to convene a special legislative session starting on October 4 for the purpose of passing a joint resolution that would start the process of amending the state Constitution to allow citizen initiatives and legislature-passed referendums on the ballot.
The proposed joint resolution to “allow the direct input of Wisconsinites is in service of that which should be the driving principle for all Wisconsin officials that ‘the will of the people is the law of the land,’” the executive order says, adding that nearly half of the states in the country have that ballot right.
CONSOLIDATING CBD
Cellular goods reveal plans for £18.6M RTO deal with Cannaray brands as further CBD consolidation looms
The move marks a major shift in direction for both parties, reports BusinessCann, and marks the beginning of what Cellular Goods’ new interim CEO Darcy Taylor believes could be widespread consolidation in the CBD industry.
Under the proposed deal, reportedly at an ‘advanced stage’ of discussions, Cellular Goods will acquire 100% of the issued share capital of both Cannaray Brands and Love CBD.
It is understood that Cellular Goods will pay £14.2m to Cannaray: £1m in cash and the rest in ‘a number of new Cellular shares’, yet to be issued. Asked to provide details on how this figure will be met, considering Cellular Goods’ market cap is now around £10m, Mr Taylor told BusinessCann: “The cash involved in the deal will not exceed £1m. As Cellular Goods is listed, we are unable to disclose any further information than was included in the announcement to the market.”
