California News

The Morning Blunt

Volume 4|Issue 7
December 7, 2018

California News

Anaheim Raid Cracks Down on Illegal Dispensary

KTLA 5  // 12.4.18

Police raided a cannabis dispensary Tuesday in Anaheim California, seizing 120 pounds of marijuana-infused edibles, marijuana plants, and two pounds of THC concentrate. In previous attempts to shutter the business, city officials shut off the business’s electricity in October. To counter, the dispensary brought in a generator and continued to sell cannabis products without a license.

The Cost of Going Legal

SF Chronical  // 12.6.18

Blunts+Moore, Oakland’s first cannabis dispensary to open under the new equity program, began selling flowers, vapes, and edibles last week. The founders discuss the process of the lottery in which they were selected to participate in the program, the lack of guidance from the state, the expenses associated with going legal, and their experience navigating the nascent industry.  


The Morning Blunt

Volume 4|Issue 6
December 6, 2018

California News

Webinar: Ethically Navigating Local & State Licensing

Canna Law Blog  // 12.4.18

Canna Law Blog is hosting a webinar on December 7 at 12pm PST entitled Ethically Navigating Local and State Licensing for Cannabis Businesses. The webinar will discuss the potential pitfalls of legally representing cannabis businesses and provides tips on how to navigate the ever-changing local and state licensing landscape.

Marijuana Trade Group Demands Action Against Unlicensed Los Angeles Dispensaries  

Marijuana Moment // 12.5.18 

The United Cannabis Business Association (UCBA) sent a letter to the city attorney asking for more information about their plan to shut down unlicensed dispensaries in the city of Los Angeles. The UCBA represents licensed cannabis companies in the city and are concerned that the lack of enforcement will lead to the downfall of legal cannabis operations.  

Suspected Extraction Lab Explosion in Santa Rosa

San Francisco Chronical  // 12.4.18

According to Sonoma County authorities, an explosion at a Santa Rosa home was suspected of being an illegal marijuana extraction lab. When authorities arrived at the scene, they found the home’s resident wet, disheveled, and confused from the blast.

Grown Rouge Expanding to California

Guru Focus  // 12.5.18

In the first of several stages for a multi-state plan, Grown Rouge International Inc. (CSE: GRIN) has secured a 16K square-foot facility in the heart of California’s Humboldt county. In anticipation of receiving approval for a full distribution license from the state, Grown Rouge has established GRD Cali LLC and has received licensing approval from the City of Eureka. GRD Cali will provide distribution services to support local licensed cannabis farmers and processors.

How MedMen is Making Marijuana Mainstream 

Green Entrepreneur // 12.5.18 

An interview with the CEO of MedMen, the largest cannabis business in the US, is working to destigmatize and bring marijuana use and culture to the mainstream. He says the key to success is treating cannabis as you would any other product and to analyze the consumer data and change your business strategy accordingly.

The Morning Blunt

Volume 4|Issue 5
December 5, 2018

California News

Cannabis Retailers May Be Limited to 4 Store Fronts in SF

SF Chronical  // 12.3.18

Tuesday Aaron Peskin put a proposal before the San Francisco Board of Supervisors that would restrict the number of licenses a cannabis retailer could apply for to four. Opponents of the amendment argue that the proposal would unfairly limit the number of storefronts of new applicants and could stagnate businesses that qualify for the Cannabis Equity Program.

California’s Counterfeiting Problem

MJ Biz  // 12.4.18

California’s cannabis vape cartridge manufacturers are facing a growing counterfeiting dilemma. Marijuana Business Daily’s John Schroyer highlights the difficulties enforcing trademark and intellectual property laws in the cannabis industry, noting that many vaporizer and cartridges are manufactured in China where the problem begins. The problem is compounded by the black market who sell the counterfeit products at a discount.

The Morning Blunt

Volume 4|Issue 4
December 4, 2018

California News

Marijuana Recall May Be Issued After Testing Facility Falsified Results

Hundreds of marijuana products may have to be recalled after a state inspection uncovered the lab director of Sacramento-based Sequoia Analytical Labs had been falsifying cannabis product testing results for nearly four months. 

Evio Inc Gears Up for Phase 3 Cannabis Testing 

Evio Inc., a provider of cannabis testing and research, announced it now meets California’s Phase 3 cannabis compliance testing requirements. Beginning January 1, 2019 the Bureau of Cannabis Control will require additional testing for terpenoids, mycotoxins, heavy metals, and water activity. 

Martinez California’s Cannabis Cultivation Ordinance

The Martinez City Council is poised to limit cannabis cultivation cultivation in an ordinance that would limit indoor grow operations to six plants. The ordinance also prohibits outdoor cultivation and commercial cultivation of marijuana.

The Morning Blunt

Volume 3|Issue 3
December 3, 2018

California News

Is Too Much Regulation Growing the Black Market?

Thousands of Californian marijuana operators tend to have one foot firmly rooted in the black market. Due to local bans, zoning rules, and steep registration costs, many cannabis businesses have no pathway to get licensed. To make matters worse, cannabis businesses typically have a lack of access to startup capital or viable real estate. These circumstances have left many to resort to black market operations. 

Final California Cannabis Regulations May Not Be Public Until January 

California’s final cannabis industry regulations are expected to be completed today, however most industry insiders won’t have access to the new policies until January. The anticipated public release of the final regulations is expected in early or mid January according to the Bureau of Cannabis Control. The bureau is exploring ways of making the rules public sooner.

Metrc: California’s Track & Trace System For Cannabis Businesses

Beginning January 1, 2019 California’s cannabis operators must comply with strict guidelines that include oversight by Metrc, the state’s new track-and-trace system. The system tracks the products journey from seed to sale by capturing data at each step of the supply chain. All California cannabis license holders are required to implement Metrc. Take a look for more information on what Metrc is and how the software works.

The Morning Blunt

Volume 3|Issue 30
November 30, 2018

California News

San Francisco Levying Gross Receipts Tax on Cannabis

San Francisco in joining California’s many cities levying a gross receipts tax on the cannabis industry. Of note are the tax rates which vary between 1% and 5% depending on the firm’s business activity and a firm’s level of gross receipts. This type of tax pyramiding taxes the product at every transaction, from producer to processor and from processor to retailer, in the cannabis production process.

$9M Raid in Bakersfield

The Kern County Sheriff’s Office Narcotics Unit confiscated over $9M in cannabis product after the unit raided an illegal full-scale cannabis extraction lab. The commercial grade lab in northwest metropolitan Bakersfield California was subject of a long-term investigation according to the department.

Chemistree Technology Seeks Permits for Desert Springs

Chemistree Technology Inc. (CNSX: CHM) announced Thursday that the company has applied for permits for a planned cultivation, processing, and distribution facility in Desert Springs, California. The company submitted plans for two separate cultivation buildings totaling 127,960 square feet and a separate 119,960 square feet for warehousing and processing.

Pivot Naturals Awarded Temporary License

Pivot Naturals LLC a wholly owned subsidiary of Pivot Pharmaceuticals Inc. announced that it has received a temporary license from the California Department of Public Health to manufacture medical use cannabis infused products in Costa Mesa, California.

The Morning Blunt

Volume 3|Issue 29
November 29, 2018

California News

Cannabis Could Become the Next Real Estate Disruptor

Next month, in the heart of the Jewelry District of Los Angeles, cannabis tenants are lined up to fill the Green Street Building in what will be the largest real estate space dedicated to the cannabis industry in the US. One hope is by bringing a critical mass of businesses to the area, the sudden influx of people and capital could stimulate a resurgence in the area.

Trackloop Enters California’s $5.1B Cannabis Industry

After the acquisition of Chaintrack Technologies, Trackloop Analytics Corp. (CNSX: TOOL) announced the company intends on entering California’s $5.1B legal cannabis market. Trackloop intends to partner with Metrc by offering a monitoring system that provides real time data on production, transport, and retail.

Sunniva Announces Acquisition of California Based Cannabis Distributor LYTR

Tuesday Sunniva Inc. (OTCMKTS: SNNVF) announced the acquisition of 100% of LYTR Logistics LLC, a California based cannabis distribution company headquartered in San Diego. LYTR will play a crucial role in Sunniva’s position in California as a vertically integrated company.

Chemistree Partners with Humboldt County Cannabis Processor

Chemistree Technologies Inc.  (CSE: CHM) (USOTCQB: CHMJF) announced that the company has entered into a strategic partnership with an Arcata based cannabis processing company. Under the agreement Chemistree will loan the processor $450K and will negotiate an additional line of credit for working capital purposes.

Nabis is Helping California Cannabis Brands Scale

Vincent Ning the CEO of Nabis, a cannabis distributor that delivers to approximately 90% of California’s retail dispensaries, discusses his company’s background. Ning also discusses the company’s next round of fundraising, their tech-based business model, and expectations for growth.

MJIC Ramping Up Oakland Distribution & Delivery Facility

Tuesday MJIC Inc., a provider of licensed wholesale cannabis distribution, retail, compliance, and supply chain solutions, announced it has been granted municipal licenses from the City of Oakland and temporary licenses by the State of California Bureau of Cannabis Control. The company has commenced operations at its distribution and delivery facility in Oakland.

The Morning Blunt

Volume 3|Issue 28
November 28, 2018

The High Note Receives Cash Infusion From Gotham Green Partners

The High Note Inc. announced Monday that Gotham Green Partners, and other co-investors, including Best Buds Funding LLC, will invest up to $15M into the Los Angeles based firm. Gotham Green Partners is funding multiple tranches amounting to $11M and has the right to invest an additional $4M based on The High Note’s performance.

Civilized to Acquire Cannabis Athletic Events Company The 420 Games

Cannabis media and lifestyle brand Civilized Worldwide Inc. announced plans to acquire North America’s only events company that promotes the pairing of cannabis and athleticism, The 420 Games. Both brands hope to create a new cultural narrative and de-stigmatize cannabis use.

West Coast Cannabis Club to Open Weed Manufacturing Facility in Palm Desert

After sitting empty since 2013, the former Palm Desert KESQ building will now be moving forward as the next site for West Coast Cannabis Club’s multi-use facility. The 28,500 square foot cannabis facility will include cultivation, manufacturing, distribution, and delivery services.

Lompoc Council Votes to Issue Cannabis Authorization Letters

Monday Lompoc City Council voted unanimously to allow city staff to issue letters of authorization for cannabis business applicants to use when applying for temporary state licenses. Timing of the vote was of particular importance as the deadline for applications is December 1, 2018.

The Morning Blunt

Volume 3|Issue 27
November 27, 2018

California News

Proposed Changes by the California Cannabis Control Commission Could Impact Landlords

The changes proposed by the Cannabis Control Commission would jeopardize landlord-tenant relationships. In lieu of rent many landlords have been known to accept a share of the tenant’s profits. However, landlords may unknowingly expose themselves to burdensome regulatory disclosure and vetting that wouldn’t normally apply had the tenant not been a cannabis licensee.

Cannabis Business Owner Loses Home in California Wildfire

Just days after celebrating a historical vote to legalize cannabis sales in the city, the owners of Malibu’s only cannabis dispensary are picking up the charred remains of their home in the aftermath of the Woolsey Fire.



The Morning Blunt

Volume 3|Issue 26
November 26, 2018


“The best way to predict the future is to create it.”

–Peter Drucker


California News

Why Wine Country Embraced Weed

While Northern California’s Humboldt County produces more cannabis by tonnage than Santa Barbara, it comes in second for number of legal cannabis licenses. With easy access to Southern California, strategically placed between Los Angeles and San Francisco, Santa Barbara is positioned to become the state’s leading legal cannabis producer. Further the county touts a friendly zoning and political atmosphere encouraging growth in the cannabis industry. Take a look for a deeper analysis on why Santa Barbara embraced cannabis farms and may become a cannabis appellation county.

Origin House Partners with Henry’s Original

Leading North American cannabis products and branding company Origin House (CSE: OH) (OTCQX: ORHOF) announced it has entered into a strategic partnership with Heritage Holding of California Inc. d/b/a Artifact Henry’s Original, a boutique cannabis producer. As part of brand acceleration, Origin House will finance the purchase of premium flower from Mendocino County and Henry’s will process and package the flower into jars and pre-rolls to be distributed exclusively by Origin House distribution subsidiaries under the Henry brand.

Cannabis Business Tax Brings in $3.6M of Revenue for San Diego

The Cannabis Business Tax, implemented in January after recreational marijuana became legal, has brought in $3.6M in revenue to San Diego over the last three quarters. Currently the Cannabis Business Tax is a 5% tax on recreational cannabis sales, however that number will increase to 8% in July 2019.

Fairfax Cannabis Delivery Plan

The Marin Alliance of Medical Marijuana was given initial approval by the Fairfax Town Council to authorize medical cannabis deliveries to its patients. Like many California communities battling with enacting Proposition 64, Fairfax’s approval to allow medical cannabis deliveries will not only help patients but will also combat black market activity.

Milpitas Issues Ban on Commercial Cannabis

Tuesday November 20th over 400 protesters jammed into Milpitas City Hall to express their moral outrage against the cannabis industry. As a result, the city council unanimously approved a complete ban on commercial marijuana in Milpitas City.

Tesla Motors Executive Moves into Cannabis

Licensed cannabis testing lab Sonoma Lab Works hired Tesla Motors executive Daniel Witt as the company’s new president and COO. Sonoma Lab also announced it has formed a board of directors.