Boston University’s Cannabis Start-Up Competition is finding the next game-changing start-up. In last week’s seventh annual Cannabis Start-Up Competition at Boston University (BU) in Massachusetts, on the same night Ohio became the 24th state to legalize adult-use cannabis, a stoner-friendly app
“The recent resolution of several court cases including rulings by the court of appeals has enabled us, the commission, to move forward with today’s actions.”
By Ross Williams, Georgia Recorder
The Georgia Access to Medical Cannabis Commission unanimously granted provisional licenses to four more companies to produce low-THC oil to help Georgians with a list of severe ailments.
The licenses will go to Fine Fettle GA, TheraTrue, Nature’s GA and Treevana Wellness. The companies will have access to Class 2 licenses, allowing them to grow cannabis in 50,000 square feet of indoor facilities only for producing low-THC oil. The state previously granted licenses to two companies, Trulieve and Botanical Sciences, for Class 1 licenses, allowing for twice as much cultivation space. By law, the products can only contain a very small amount of THC, the chemical that gets marijuana users high.
The new licenses come as yearslong court challenges over the selection process continue, said Commission Chair Sid Johnson.
“The recent resolution of several court cases including rulings by the court of appeals has enabled us, the commission, to move forward with today’s actions,” he said. “Out of respect for the judicial process that is still going on, we have chosen to make provisional contract awards.”
Johnson said the commission has the authority to make provisional awards at its discretion, noting that none of the applicants challenged that authority through the contentious process.
“The issuance of these provisional contract awards for class two productions licensure is not only consistent with the terms of the (request for proposal) and the purpose of the Hope Act, it is necessary,” he said. “We look forward to working with our Class 2 production licensees and building strong partnerships with them as we have done with our Class 1 production licensees.”
In a statement, Fine Fettle CEO Jeremy Fort said his company plans to harvest its first plants from its Macon-area facility by March and open up shop in Athens, Decatur, Evans, Macon, Peachtree Corners and Smyrna by the spring.
“We’re ready to serve the needs of patients across Georgia who’ll experience a higher quality of life because this medication is available to them,” he said. “We’re committed to the people of this state, and that’s why we moved ahead with building a best-in-its-class facility in Macon, where the community and its leaders have welcomed us.”
Since the state first approved licenses this spring, dispensaries have opened up in or near major metro areas: Atlanta, Marietta, Newnan, Stockbridge, Macon, Evans and Savannah. In addition, Georgia is set to be the first state to allow patients to buy low-THC products at pharmacies.
Whether from a dispensary or a pharmacy, patients must be approved by a doctor to get the products. Right now there are just over 13,400 patients on the list. Post-traumatic stress disorder and cancer patients make up more than 70 percent of those on the list, according to the state Department of Public Health, with peripheral neuropathy, seizure disorder and multiple sclerosis the next most common diagnoses.
Georgia passed its initial medical marijuana bill in 2015, but it took years of continued legislative action and lawsuits to actually get the medicine in their hands, and for some, the rollout was not as smooth as expected.
In brief remarks after the vote, Commission Executive Director Andrew Turnage thanked patients for their endurance.
“I want to say thank you to the patients,” he said. “They have been the spearhead for this from day one. Everything that this commission has done is for you, the patients. And I just want to say, for all the sacrifices and dangers and losses that patients have endured to get through this process, we really appreciate that. Everything that has happened at this commission has been focused on access for patients. And there’s more, there’s more battles to come. There are more challenges to face. But together, we’ve arrived at this day, and it started with the very hard work of the patients.”
The House of Republicans has agreed on a stopgap funding bill that will see a one-year extension to the 2018 Farm Bill. In October, Senator John Boozman warned that the renewal of the 2018 Farm Bill may not be achieved by the end-of-year deadline and proposed an extension of one year, as the initial
Asian transnational criminal organizations operate more than 270 illegal marijuana cultivation sites in Maine, according to a leaked US Department of Homeland Security memo. An investigation by the Maine Wire has identified more than 100 of those sites, as previously reported. Of those properties —
Colorado-based climate control systems provider CEA Industries (NASDAQ: CEAD), which does business as Surna Cultivation Technologies, saw its fortunes plummet over the past year. That trend continued in the third quarter this year, as leadership stated candidly that the company is in search of new ownership.
CEA posted a net loss of $799,000 for the quarter that ended Sept. 30, up from its loss of $694,000 in Q2 but down from its loss of more than $1 million for Q3 last year.
The big tell for CEA is revenue, however. The company pulled in just $914,000 in the most recent quarter, down from $5 million for the same period a year prior, which the company attributed to “lower bookings over the last 12 months.”
“Given the state of our operations, our current corporate assets, and our service position in the cannabis and controlled agricultural sectors, our focus is to work through our backlog and take action to mitigate operating expenses and preserve cash,” CEO Tony McDonald said in a press release. “As previously announced on August 14, 2023, the Board of Directors continues to review strategic alternatives, including a sale, merger or other potential strategic or financial transaction.”
Net bookings in the third quarter of 2023 were just $400,000 compared to $2.2 million a year ago, and the quarter-end backlog was just $500,000, down from $6.8 million in the same period a year ago. The company pointed to “fewer capital expenditures by cannabis operators in the markets we serve, in addition to a reduced sales effort” for the steep declines in both metrics.
CEA slashed operating expenses by 58%, to $700,000 from $1.7 million, by reducing staff, cutting marketing budgets, and lessening production expenses. But the company also decided – in yet another sign of distress – to cancel its quarterly earnings call.
At the end of September, CEA had $14.6 million in total assets, including $13.3 million in cash, against $1.4 million in liabilities.
