NOT SO FINE
CRA fined Canopy Growth for allegedly growing cannabis before being licensed
Canopy Growth was fined $$434,611 by the Canada Revenue Agency in 2020 because the company allegedly began growing plants outdoors before obtaining its CRA licence, according to the National Post.
- The company was under “significant pressure” to produce more cannabis post-legalization, according to Canopy’s appeal
- In 2019, a subsidiary applied for an outdoor growing licence from Health Canada, which they received in June of that year—”“well into the 2019 outdoor growing season”
- They then applied for their CRA licence, which is necessary under the Excise Act, which they received in July
- The fine came in 2020, with a letter stating that “the receipt and cultivation of vegetative cannabis plants prior to obtaining a cannabis licence under the (Excise Act) is a contravention of the (Excise Act)”
- The fine was calculated at two-thirds of the market value of the crop, estimated at $650,000. Canopy says it should be zero, because it was destroyed
- Canopy also argues that the Excise Act doesn’t say you can’t start growing before obtaining the CRA licence
“They’re going to have a hard time establishing that, when you see the phrase ‘cannabis licence’ in that section (of the Excise Act), that it could possibly mean a cannabis licence issued by Health Canada,” commented cannabis lawyer Trina Fraser. “I think it’s clear, but it’s up to the court to decide.”
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WHY BE SOCIAL?
Curaleaf’s Boris Jordan reassures shareholders about CFO departure
After clearing the air about his company’s connections (or lack thereof) to Russia, the founder and chairman of Curaleaf took to Twitter again, this time to reassure shareholders that the recent departure of CFO Ranjan Kalia after just eight months is nothing to worry about.
“I understand raising concerns when there is a C-suite change, but our CFO Ranjan was lured back to the tech sector for 3x a cannabis CEO salary—simple as that,” he tweeted. Former CFO and current COO Neil Davidson has been appointed interim CFO in the meantime.
“Glad we have talent like Neil Davidson on our bench, who knows our business,” Jordan added. “No need for worries—we’re in good hands!”
MATTIO TO THE MOON
Rosie Mattio on how relinquishing some control helped Mattio Communications grow
In an as-told-to for Inc., Rosie Mattio shared how she gave up 20% equity of her cannabis PR company to the father of her former intern in 2018. In exchange, Mitch Rothschild helped Mattio hire a staff, management and find investors.
“We talked and I realized this wasn’t some guy trying to take over,” she said. “Rather, he simply disliked seeing good ideas fail.”
Since, the company has grown from 30 clients to 65 and revenue has grown by 3000%. “With Mitch’s help, I’ve realized that knowing what sells is important, but it’s not everything,” she said. “Running a successful company requires attention to details like establishing a line of credit before you need it and paying your bills on time.”
SHOW ME THE (EU) $
THC limit increase for European hemp food could bring in more investment
The European Commission (EC) has increased the allowed level of delta-9 THC from 1 mg/kg to 3 mg/kg for dry food products like flour, seeds and snacks, and 7.5 mg/kg for hemp seed oil, reports BusinessCann.
“This long-awaited piece of legislation is a significant win for our industry and the EIHA has been a strong advocate for this change for almost ten years,” said European Industrial Hemp Association president Daniel Kruse.
“All Member States will have to follow common values, driving consistency across the EU and creating a stable and more attractive market for investors,” added EIHA managing director Lorenza Romanese.