Blunt Business

Cannabis Tax Attorney James B Mann highlights the ongoing frustration within the cannabis industry due to persistent delays in legalization and reform, particularly concerning the SAFER Banking Act and Section 280E.James addresses the perceived ineffectiveness of current lobbying efforts and explores various legal challenges to Section 280E, noting instances where companies have successfully disputed its application and received tax refunds.We underscore the critical need for more impactful strategies, including broader public outreach and the implementation of a simpler tax structure, to drive meaningful change in the cannabis sector.Advertising Inquiries: https://redcircle.com/brandsPrivacy & Opt-Out: https://redcircle.com/privacy

Blunt Business welcomes Joshua Horn, co-chair of Fox Rothschild's LLP's cannabis law practice. We addressed several key issues impacting the cannabis industry, including the detrimental impact of California's upcoming cannabis tax increase, the challenges posed by the persistent illicit market, and the lack of state enforcement against it. We also addressed the stalled federal rescheduling of cannabis, attributing it to political factors and potential resistance within the DEA, while briefly touching on Pennsylvania's legalization efforts and frustrations with the lack of clear federal regulation.We also focused on the lack of progress in rescheduling cannabis at the federal level, despite the Biden administration's recommendation. Political factors and potential internal resistance within the DEA were cited as reasons for the delay. We also noted that the federal government's current tax revenue from the existing 280E structure might act as a disincentive for reform.Advertising Inquir

Anthony Coniglio, CEO at NewLake Partners returns to discussed a possible shifting to an optimistic outlook on cannabis policy, noting concerns about Rand Paul's efforts to strip hemp language from the agriculture appropriations bill and a proposed DOJ rule classifying cannabis users as "dangerous to society." We also covered DEA Administrator Terrence Cole's confirmation, his strategic priorities not including cannabis rescheduling, and the potential impact of Schedule 3 reclassification on addressing transnational criminal organizations, with Anthony clarifying that the DEA's priorities align with the National Drug Threat Assessment. The participants also discussed the rescheduling process and timeline, and the actions taken by states to ban or regulate intoxicating hemp-derived THC products.Advertising Inquiries: https://redcircle.com/brandsPrivacy & Opt-Out: https://redcircle.com/privacy

Joshua Bauchner, chair of the Cannabis, Hemp and Psychedelics Practice Group of Mandelbaum Barrett, P.C., discusses the intricacies of medical cannabis use and its legal implications. While some states provide protections for medical cannabis users, federal law does not, limiting the scope of the Americans with Disabilities Act (ADA). The inconsistency between state and federal laws creates additional challenges for both employers and employees. The discussion further explored the potential impacts of DEA rescheduling or descheduling cannabis, including possible changes to ADA protections and tax implications for cannabis businesses. Ultimately, prioritizing the passage of the Safe Banking Act and amending Section 280E of the IRS code were identified as more effective solutions for addressing industry challenges.Advertising Inquiries: https://redcircle.com/brandsPrivacy & Opt-Out: https://redcircle.com/privacy

Blunt Business welcomes back Nishant Reddy to talk about the launch of Phases and Smack Studios as extensions of A Golden State, aiming for approachable pricing while maintaining quality across vaporizers, edibles, and infused pre-rolls. Nishant highlighted the challenges in California's cannabis market due to taxation and regulation, but noted the success of their brands due to a focus on quality and the unique consumer experience offered at their flagship retail store. The conversation covered brand strategies, market trends, and frustration with California's business environment, while also introducing the new brand Smack Studios with its unique genetics and artist collaborations.Advertising Inquiries: https://redcircle.com/brandsPrivacy & Opt-Out: https://redcircle.com/privacy

Blunt Business welcomes back with Sara Gullickson, founder and CEO of CB Advisors, regarding the current landscape of the cannabis industry. Key topics included the inconsistent regulations across different states, particularly in the Southeast, and the significant challenges faced during Minnesota's cannabis program rollout. Gullickson emphasized the detrimental effects of unregulated hemp-derived cannabinoid products on legitimate cannabis businesses and the critical need for better industry oversight and sufficient capital for businesses to thrive.The conversation highlighted the complexities of federal intervention versus industry self-regulation, drawing parallels to existing regulatory frameworks. A major point of concern was Minnesota's flawed social equity lottery system, which has created an uneven playing field for applicants and led to market saturation due to unlimited licensing. The discussion also covered the substantial capital requirements for success in the evolving cannabis market, w

In this episode of Blunt Business, managing partners Ed Brown and Tucker Herndon of Burr & Forman discuss Georgia's sudden move to ban THC-infused drinks and restrict Delta-8 and Delta-9 products.As attorneys specializing in the food and beverage industry, they explore the potential impact on retailers, manufacturers, and the broader Southeast cannabis market.They also delve into the chilling effect on innovation, legal challenges, and strategies for businesses to navigate this evolving regulatory landscape.Advertising Inquiries: https://redcircle.com/brandsPrivacy & Opt-Out: https://redcircle.com/privacy

Thomas Winstanley, EVP, General Manager of Edibles.com discussed the severe implications of Texas Senate Bill 3, which proposes a ban on hemp-derived THC products. He highlighted the bill's flawed reasoning, arguing that it disregards consumer demand for safe THC access and would lead to the closure of thousands of businesses and job losses for tens of thousands of workers. Winstanley criticized the political motivations behind the bill, suggesting they are not rooted in genuine health concerns and would instead foster an unregulated illicit market. He emphasized that an outright ban fails to address underlying issues in the hemp industry, and Texas is missing an opportunity to establish a sensible regulatory framework.Winstanley further pointed out the double standards in Texas regulations, contrasting the proposed hemp ban with the state's approach to alcohol, tobacco, and firearms, none of which face similar bans despite documented harms. He noted the strong opposition to SB3, particularly from vet

Terrence White, CEO and Founder of MONKO and Former Chairman of the I-71 Committee, explores the complex cannabis landscape in Washington D.C. Despite voter approval for legalization through Initiative 71, the Harris Rider restricts a regulated adult-use market, leading to a "gifting" model and lost tax revenue.The discussion delves into potential policy solutions beyond lifting the Rider, including replicating Maryland's successful market, revenue generation models, and strategies for federal advocacy.White addresses integrating cannabis into D.C.'s tourism sector, data on economic potential, recent changes in the "gray market," and the impact of stricter enforcement and an influx of medical dispensary licenses.He also tackles misconceptions surrounding D.C.'s cannabis situation, lessons from Maryland's legalization, and the potential for social and criminal justice reform through a fully regulated adult-use market.Advertising Inquiries: https://redcircle.com/brandsPrivacy &am

Khari Griffin, a Cannabis Attorney at Clark Hill Law, joins Blunt Business to delve into the complexities of inconsistent state regulations on THC products. Key issues highlighted included concerns over high potency, youth access, and the lack of federal oversight, particularly regarding the 2018 Farm Bill and FDA inaction.The discussion also explored the influence of lobbying and public opinion, using Texas and Georgia as case studies to illustrate varying legislative approaches and the challenges faced by the hemp industry.We also emphasized on the need for future action from the FDA to establish clear standards for THC products, especially addressing synthetic THC.Advertising Inquiries: https://redcircle.com/brandsPrivacy & Opt-Out: https://redcircle.com/privacy

Hanna Brand, co-founder and chief sales officer of Autumn Brands, talks about their commitment to sustainable cannabis cultivation, including their 100% spray-free practices using beneficial insects and their innovative water conservation methods, such as bio-swell systems and water reclamation from greenhouse runoff. Hanna also shared insights on the company's public farm tours, which aim to provide transparency and connect with the community. Additionally, she expressed concerns regarding potential tax increases in the cannabis industry and advocated for clearer labeling regulations to distinguish between organically grown cannabis and cannabis grown without any sprays. We also highlighted Autumn Brands' new product lines, including diamond-infused mini pre-rolls and the "Now Melt" wellness products.Advertising Inquiries: https://redcircle.com/brandsPrivacy & Opt-Out: https://redcircle.com/privacy

We hear from Clark Wu, a partner with Bianchi and Brandt about the complexities of the cannabis and hemp legal landscape. The conversation covers regulatory hurdles, compliance issues, investment opportunities, and the impact of campaigns and FDA actions. Key challenges discussed include inconsistent federal and state regulations, securing capital, and landlord hesitancy. The discussion also highlights the importance of proactive compliance and the potential impact of the Safe Banking Act.Advertising Inquiries: https://redcircle.com/brandsPrivacy & Opt-Out: https://redcircle.com/privacy

Barbara Vaughn, Founder and CEO of Cannabicity and co-founder Stefan Sanzi discuss the New York State cannabis market's social equity licensees face significant challenges, including lengthy licensing processes, predatory lending, and navigating complex grant applications.  Cannabicity, founded by Barbara, launched the "Powered by Cannabicity" initiative to provide consulting, legal guidance, and funding (6-10% interest) to assist CAURD licensees in accessing and utilizing the $5 million grant program;  Stefan reported that the Office of Cannabis Management (OCM) is improving communication and streamlining the application process, though challenges remain.Advertising Inquiries: https://redcircle.com/brandsPrivacy & Opt-Out: https://redcircle.com/privacy

We learn about Qredible's compliance platform for the cannabis industry with Chairman and CEO Brian Fitzpatrick. The discussion highlights Qredible's use of blockchain technology and automated compliance checks, as well as its marketplace approach. Specific software solutions like Q Monitor, Q Transact, and My COA are detailed, along with the platform's ability to adapt to changing regulations. We also learn about Fitzpatrick's Credible Live podcast and discussed some of the topics covered, including regulatory challenges, fintech innovation, and market integration.Advertising Inquiries: https://redcircle.com/brandsPrivacy & Opt-Out: https://redcircle.com/privacy

Terry Mendez, the new CEO of Safe Harbor Financial, the newly appointed CEO of Safe Harbor Financial, emphasizing their experience in the cannabis industry and business transformation . We discussed Safe Harbor's success in processing over $25 billion in cannabis-related funds, their strategies for navigating industry challenges (including regulatory hurdles and taxation), and their vision for expanding into a multifaceted fintech company offering various services beyond banking.  Mendez highlighted several new initiatives, such as debt restructuring, new programs (employee banking, Safe Harbor Connects), and the development of a lending platform,  while emphasizing the company's NASDAQ listing and data-driven approach to addressing industry pain points. Advertising Inquiries: https://redcircle.com/brandsPrivacy & Opt-Out: https://redcircle.com/privacy

Anthony Coniglio of New Lake Capital Partners returns to Blunt Business to discuss the current state of the cannabis industry. Despite delays in federal reform and setbacks like the failed Florida ballot initiative, New Lake Partners maintains a strong financial position. Coniglio highlights the company's disciplined capital allocation strategy, focus on limited-licensed jurisdictions, and key performance indicators such as AFO and AFO payout ratio.The conversation also covers strategies for mitigating risks, monitoring market conditions, and exploring future opportunities tied to potential federal regulation and increased institutional investor interest.Advertising Inquiries: https://redcircle.com/brandsPrivacy & Opt-Out: https://redcircle.com/privacy

The Supreme Court's 5-4 decision in Medical Marijuana, Inc. v. Horn has created a significant new legal risk for cannabis and CBD companies, as it permits plaintiffs to pursue civil claims under the Racketeer Influenced and Corrupt Organizations (RICO) Act for business or property loss that stems from a personal injury. The case specifically involved a mislabeled CBD product leading to a failed drug test and job loss, and the ruling exposes the industry to potentially devastating treble damages. Beyond the RICO implications, we also covered other pressing regulatory and tax challenges, including the complexities of cannabis rescheduling, state packaging laws, the impact of Section 280E, and the Loper Bright decision, all underscoring the urgent need for companies to seek legal counsel to review labeling, suppliers, and adopt universal compliance standards.Advertising Inquiries: https://redcircle.com/brandsPrivacy & Opt-Out: https://redcircle.com/privacy

Zachary Kobrin, transactional and regulatory attorney at Saul Ewing LLP discusses the merging of the cannabis and alcohol industries, driven by shifting consumer preferences and the emergence of hemp-derived beverages. Kobrin discusses regulatory challenges such as stock exchange restrictions on cannabis companies and inconsistent federal regulations. The conversation also addressed the importance of compliance in restrictive states, regulatory transparency, and the limited impact of the Safe Banking Act on financial issues for cannabis businesses. Hemp-derived beverages were highlighted as a promising market opportunity, and frustration was expressed regarding the slow progression of cannabis regulation.Advertising Inquiries: https://redcircle.com/brandsPrivacy & Opt-Out: https://redcircle.com/privacy

Jason Schwent, cybersecurity attorney at Clark Hill, addresses the growing cyber security risks facing the cannabis industry. The discussion highlights the unique vulnerabilities of cannabis businesses due to heavy regulation, reliance on third-party vendors, and challenges with payment processing. Clark Hill wrote an article on The Growing Cybersecurity Risks in the Cannabis IndustryAn attorney specializing in cyber security emphasizes the importance of due diligence when selecting vendors, particularly point-of-sale systems, and stresses the need for robust security protocols to protect sensitive customer data, including government IDs and medical information.We also explore the potential legal and financial repercussions of data breaches, including regulatory scrutiny, lawsuits, and damage to brand reputation. It concludes with recommendations for proactive measures, such as developing incident response plans, obtaining appropriate cyber security insurance, and treating cyber security compliance as an ongo

Zone Vapor CEO Josh Hoffman delves into the company's strategies for the 510 thread vape market, focusing on the innovative Zone Opto vaporizer. He highlights its customizable modes, user-friendly display, and quality commitment through a three-year warranty. Hoffman addresses concerns related to the vape crisis, emphasizing the safety of regulated products and the industry's focus on compliance. He also outlines Zone Vapor's marketing approach, which centers on influencer engagement and strategic retail partnerships. Furthermore, Hoffman shares his insights on future vape technology trends and draws upon his extensive experience in product development and brand management within the cannabis industry.Advertising Inquiries: https://redcircle.com/brandsPrivacy & Opt-Out: https://redcircle.com/privacy