Colorado’s biggest marijuana cultivator suffers an early freeze that is anticipated to trigger a provide disruption in the state, much more than 100 Weedmaps staff acquire pink slips, enforcement efforts intensify to root out corruption in neighborhood and state cannabis licensing – and much more of the week’s prime cannabis company news.
Colorado’s biggest cannabis cultivator, Los Sueños Farms, lost millions of dollars when an early freeze broken half its outside crop ahead of harvest.
MJBizDaily takeaway: As the state’s biggest supplier of low-grade flower and material for extraction, what impacts Los Sueños impacts the complete recreational marijuana industry in Colorado.
The expense of material for extraction is probably to raise, as properly as the expense of bottom-shelf flower for pre-rolls and spending budget ounces at the retail level.
Other cannabis growers probably will not thoughts, even though, given that the state’s wholesale flower industry has been undersupplied – resulting in larger rates – for the previous handful of months.
This news must support to continue that trend at least a tiny longer.
MJBizDaily takeaway: California-primarily based Weedmaps has come beneath fire not too long ago for its practice of marketing for unlicensed marijuana retailers and delivery solutions.
The job cuts reflect new hurdles for the organization: the slow rollout of recreational marijuana markets in California and Massachusetts as properly as a shrinking pool of outdoors capital. Other cannabis businesses are facing these complications, also.
Cannabis licensing probes intensify
Nevada, California and the latter state’s capital city, Sacramento, want to get to the bottom of possible corruption in cannabis licensing right after facts disclosed in federal charges against a group that contains men and women with ties to President Trump’s private lawyer, Rudy Giuliani.
Nevada’s governor, Steve Sisolak, also desires a activity force to investigate broader licensing difficulties in his state, although Sacramento’s cannabis licensing system currently was getting investigated by the FBI.
MJBizDaily takeaway: It is apparent that enforcement efforts are intensifying to root out corruption in neighborhood and state cannabis licensing.
Cannabis companies that are above-board must take that as superior news.
The concept behind these licensing probes is to clean up the market and to generate level playing fields for all marijuana license applicants.
California tax break for some MJ firms
Amongst the current marijuana-connected bills signed into law by California Gov. Gavin Newsom is a measure that will let some cannabis companies in the state – these filing taxes as sole proprietors or partnerships – to deduct operating costs on state earnings taxes.
A comparable move was vetoed by former Gov. Jerry Brown.
MJBizDaily takeaway: It remains against federal tax law for cannabis businesses to deduct operating costs – the so-referred to as 280E issue referring to that section of the IRS code.
The move by California is notable given that it offers a measure of relief to some state-legal cannabis businesses in terms of their costs.
On the other hand, as market authorities pointed out, most California marijuana companies are set up as restricted liability businesses (LLCs) or corporations and will not advantage from the new legislation.
Eaze gives delivery to California hotel prospects
Guests at the Fairmont Miramar Hotel & Bungalows in Santa Monica, California, can acquire cannabis solution delivery to their rooms thanks to a partnership in between the resort and Eaze Hospitality and Recreational Embassy.
The partnership offers Fairmont guests access to cannabis in a municipality that prohibits recreational retailers and cultivation operations inside its boundaries.
MJBizDaily takeaway: This deal underlines how partnering with mainstream businesses can give cannabis companies an introduction to prospects they otherwise may not effortlessly attain.