Colorado’s biggest marijuana cultivator suffers an early freeze that is anticipated to trigger a provide disruption in the state, far more than 100 Weedmaps workers obtain pink slips, enforcement efforts intensify to root out corruption in nearby and state cannabis licensing – and far more of the week’s prime cannabis small business 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 market place in Colorado.
The expense of material for extraction is probably to enhance, 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, considering the fact that the state’s wholesale flower market place has been undersupplied – resulting in larger rates – for the previous handful of months.
This news should really aid to continue that trend at least a small longer.
MJBizDaily takeaway: California-primarily based Weedmaps has come below fire lately 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 firms are facing these challenges, as well.
Cannabis licensing probes intensify
Nevada, California and the latter state’s capital city, Sacramento, want to get to the bottom of prospective corruption in cannabis licensing right after specifics disclosed in federal charges against a group that incorporates folks with ties to President Trump’s individual lawyer, Rudy Giuliani.
Nevada’s governor, Steve Sisolak, also desires a process force to investigate broader licensing problems in his state, when Sacramento’s cannabis licensing plan currently was becoming investigated by the FBI.
MJBizDaily takeaway: It is apparent that enforcement efforts are intensifying to root out corruption in nearby and state cannabis licensing.
Cannabis firms that are above-board should really take that as superior news.
The concept behind these licensing probes is to clean up the market and to develop 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 firms in the state – these filing taxes as sole proprietors or partnerships – to deduct operating expenditures on state earnings taxes.
A comparable move was vetoed by former Gov. Jerry Brown.
MJBizDaily takeaway: It remains against federal tax law for cannabis firms to deduct operating expenditures – the so-named 280E issue referring to that section of the IRS code.
The move by California is notable considering the fact that it provides a measure of relief to some state-legal cannabis firms in terms of their expenditures.
Nonetheless, as market professionals pointed out, most California marijuana firms are set up as restricted liability firms (LLCs) or corporations and will not advantage from the new legislation.
Eaze presents delivery to California hotel buyers
Guests at the Fairmont Miramar Hotel & Bungalows in Santa Monica, California, can obtain cannabis solution delivery to their rooms thanks to a partnership amongst the resort and Eaze Hospitality and Recreational Embassy.
The partnership provides 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 firms can give cannabis firms an introduction to buyers they otherwise may possibly not quickly attain.