Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
BDSA, DELOITTE CANADA AND HIFYRE REVEAL CANNABIS MARKET INSIGHTS REPORT
NOVEMBER, 04, 2021
https://investors.fireandflower.com/news/news-details/2021/BDSA-Deloitte-Canada-and-Hifyre-Reveal-Cannabis-Market-Insights-Report/default.aspx
Pricing analysis shows similarities and differences between cannabis and traditional CPG markets
TORONTO, Nov. 4, 2021 /CNW/ - Through a strategic collaboration, BDSA, Deloitte Canada, and Hifyre Inc. ("Hifyre"), the technology subsidiary of Fire & Flower Holdings Corp. ("Fire & Flower" or the "Company") (TSX: FAF) (OTCQX: FFLWF), today revealed a new, in-depth cannabis pricing report entitled, "Price. It's Complicated. How Cannabis Pricing Differs From Other Consumer Goods".
Over the last several years, the medical and adult-use cannabis markets have seen rapid expansion across North America. The latest report from BDSA, Deloitte Canada and Hifyre™, unveils new consumer survey data alongside proprietary market and sales data, providing insights into the pricing dynamics of legal cannabis markets in both Canada and the United States and an understanding of the similarities and differences observed across the growing cannabis industry as compared to traditional CPG markets.
"Legal cannabis sales in Canada and the U.S. are growing rapidly and in speaking with our customers and examining the data, pricing is consistently indicated as a primary factor in purchasing decisions," said Matthew Hollingshead, President of Hifyre and Chief Innovation Officer at Fire & Flower. "As existing markets mature and new markets come online, cannabis pricing is expected to remain extremely volatile, though there are some similarities in trends to traditional CPG markets like consumers willing to pay a premium price for superior products or services."
"As the market continues to expand, understanding the role of pricing will be imperative to maximizing potential for brands and retailers," said Kelly Nielsen, Vice President of Insights and Analytics at BDSA. "Market growth brings opportunity, and we continue to see more brands and products entering the market. At the same time, though, consumers, manufacturers, and retailers are getting more sophisticated. In order to be competitive, it is important to understand how pricing plays a role in the decision-making process, and how pricing and product benefits can be leveraged to maximize potential."
"Pricing in the cannabis market is complex and dynamic, and is expected to remain so," said Sid Hathiramani, Partner, Risk Advisory at Deloitte Canada. "Business leaders must be careful when making assumptions based on other consumer industries, and instead analyze the data closely, stay informed on market and competitive activity, and contain costs in order to achieve target profits. Strong, data-driven business practices will set cannabis companies up for success."
Additional findings from the report include:
Cannabis Markets Keep Growing Up
Global legal cannabis sales reached nearly US$21.6 billion in 2020, an increase of 50% over 2019 sales of US$14.4 billion, due largely to legalization. BDSA forecasts global cannabis sales will continue to grow quickly, to US$62.1 billion in 2026, more than double the 2021 estimated global sales of US$30.6 billion, at a compound annual growth rate (CAGR) of more than 15%.
Through dispensaries alone, cannabis sales in the United States reached US$18.0 billion in 2020, and are forecasted to reach US$24.9 billion in 2021. BDSA expects U.S. sales to reach US$47.6 billion in 2026, the result of a CAGR of 13.8%, with growth coming from both the opening of new markets and the expansion of existing ones.
Price Matters
In both the United States and Canada, consumers consistently indicate price is a key factor in decisions about what cannabis product to buy. The most recent BDSA Consumer Insights survey, which polls thousands of consumers every six months, found that in states where cannabis is legal for adult and medical use, low price was consistently identified in the top three drivers of product choice. More than a quarter (27%) of respondents said price influences their purchase decision, just behind taste/flavour and high THC content. In Canada, low price was the leading influencer of product choice, with 34% of consumers stating it matters the most.
In Deloitte Canada's latest study of Canadian cannabis consumers, titled 'Seeding new opportunities: Listening to Canada's cannabis consumer', 70% of respondents who shop the illicit market stated that better or lower pricing was a key reason they turned to that market.
Consumers Will Pay More for Worthy Products
Discerning consumers will pay a premium for superior products and/or benefits. For example, live resin sales in the 1,000-mg vape category in California demonstrate that consumers will pay for premium products. Live resin is generally perceived as having a higher quality than other vape cartridge-extraction methods, and now represents 33% of total vape sales in the state, up from 8% in 2019.
There's similar evidence that consumers of edibles are willing to pay a premium for unique additional ingredients in gummies. In the California market, for example, gummies that also contain CBD are, on average, priced 18% higher—and their sales have increased by 41% from the second quarter of 2020 to the second quarter of 2021. In Canada, meanwhile, craft dried flower commands a price premium ranging from 16% to 41%, depending on its THC level.
Brands Don't Yet Command Premium Pricing
In the US market, consumers do not name "reputation of a brand" as a top-10 influencer of their purchasing decision. Only 18% of those surveyed say brand reputation influences their product choice. Survey data found that consumers are more likely to choose a product that is either a brand they have used before (25%); would opt for a brand that has been recommended by a friend or family member (20%); or opt for a brand recommended by a "budtender" or "cannista" (21%).
The Laws of Economics Are Still the Laws of Economics
The cost of goods is a key driver of wholesale pricing and differs significantly by market. For example, in August 2021, the average price per pound of flower in Oregon was $1,600/lb but only $900/lb in Colorado. A range of factors influence the cost of goods, including the grow environment, cultivars, yield, facility scale, grow medium, and trim method.
Supply and demand, as ever, are also fundamentals. In Arizona, where sales for adult-use cannabis began in January 2021, shortly after it was legalized, prices in the long-legal medical cannabis channel increased in response to the increased overall demand.
Product supply was low when adult-use cannabis was legally made available in Canada, which resulted in relatively high pricing at the start. As supply increased, the price decreased, with the average price per gram of dried flower falling from $11.78/gm in the first half of 2019 (shortly after legal sales began) to $7.50/gm in the same period in 2021.
If you are interested in reviewing the full report, you may download it here.
About Fire & Flower
Fire & Flower is a leading, technology-powered, adult-use cannabis retailer with more than 95 corporate-owned stores in its network. The Company leverages its wholly-owned technology development subsidiary, Hifyre Inc., to continually advance its proprietary retail operations model while also providing additional independent high-margin revenue streams. Fire & Flower guides consumers through the complex world of cannabis through education-focused, best-in-class retailing while the HifyreTM digital and analytics platform empowers retailers to optimize their connections with consumers. The Company's leadership team combines extensive experience in the technology, cannabis and retail industries.
Through the strategic investment of Alimentation Couche-Tard Inc. (owner of Circle K convenience stores), the Company has set its sights on global expansion as new cannabis markets emerge and is poised to expand into the United States when permitted through its strategic licensing agreement with Fire & Flower U.S. Holdings upon the occurrence of certain changes to the cannabis regulatory regime.
Fire & Flower is a multi-banner cannabis retail operator that owns and operates the Fire & Flower™, Friendly Stranger™, Happy Dayz™ and Hotbox™ brands. Fire & Flower Holdings Corp. owns all issued and outstanding shares in Fire & Flower Inc. and Friendly Stranger Holdings Corp., licensed cannabis retailers that own and operate cannabis retail stores in the provinces of British Columbia, Alberta, Saskatchewan, Manitoba and Ontario, and the Yukon territory.
To learn more about Fire & Flower, visit https://fireandflower.com.
About Hifyre
The Hifyre Digital Retail and Analytics Platform is a proprietary ecosystem of products that includes the Spark Perks member program, Hifyre ONE retail software platform and the Hifyre IQ cannabis data and analytics platform.
The Hifyre platform also supports Fire & Flower's advanced operations and provides a competitive advantage in providing a tailored digital experience and understanding consumer behaviours in the evolving cannabis market.
To learn more about Hifyre, visit www.hifyre.com.
About BDSA
Headquartered in Boulder, Colorado, BDSA is the premier global cannabis market research firm helping businesses improve revenues, reduce innovation risk, and prioritize market expansion. The company provides a holistic understanding of the cannabis market through data, analytics, and insights from retail sales data, consumer research, and market forecasts. To learn more please visit https://bdsa.com/.
About Deloitte
Deloitte provides audit and assurance, consulting, financial advisory, risk advisory, tax, and related services to public and private clients spanning multiple industries. Deloitte serves four out of five Fortune Global 500® companies through a globally connected network of member firms in more than 150 countries and territories bringing world class capabilities, insights, and service to address clients' most complex business challenges. Deloitte LLP, an Ontario limited liability partnership, is the Canadian member firm of Deloitte Touche Tohmatsu Limited. Deloitte refers to one or more of Deloitte Touche Tohmatsu Limited, a UK private company limited by guarantee, and its network of member firms, each of which is a legally separate and independent entity. Please see https://www.deloitte.com/about for a detailed description of the legal structure of Deloitte Touche Tohmatsu Limited and its member firms.
Our global Purpose is making an impact that matters. At Deloitte Canada, that translates into building a better future by accelerating and expanding access to knowledge. We believe we can achieve this Purpose by living our shared values to lead the way, serve with integrity, take care of each other, foster inclusion, and collaborate for measurable impact.
To learn more about Deloitte's approximately 330,000 professionals, over 11,000 of whom are part of the Canadian firm, please connect with us 11,000 of whom are part of the Canadian firm, please connect with us on LinkedIn, Twitter, Instagram, or Facebook.
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION
This news release contains certain forward-looking information within the meaning of applicable Canadian securities laws ("forward-looking statements"). All statements other than statements of present or historical fact are forward-looking statements. Forward-looking statements are often, but not always, identified by the use of words such as "anticipate", "achieve", "could", "believe", "plan", "intend", "objective", "continuous", "ongoing", "estimate", "outlook", "expect", "project" and similar words, including negatives thereof, suggesting future outcomes or that certain events or conditions "may" or "will" occur. These statements are only predictions. Forward-looking information in this news release includes, but is not limited to, statements in respect of the integration of PotGuide and Wikileaf into the Company's operations and digital strategy.
Forward-looking statements are based on the opinions and estimates of management of Fire & Flower at the date the statements are made based on information then available to the Fire & Flower. Various factors and assumptions are applied in drawing conclusions or making the forecasts or projections set out in forward-looking statements Forward-looking statements are subject to and involve a number of known and unknown, variables, risks and uncertainties, many of which are beyond the control of Fire & Flower, which may cause Fire & Flower's actual performance and results to differ materially from any projections of future performance or results expressed or implied by such forward-looking statements. Such factors, among other things, include: regulatory and other approvals or consents; fluctuations in general macroeconomic conditions; fluctuations in securities markets; the impact of the COVID-19 pandemic; the ability of the Company to successfully achieve its business objectives and political and social uncertainties.
No assurance can be given that the expectations reflected in forward-looking statements will prove to be correct. Although the forward-looking statements contained in this news release are based upon what management of the Company believes, or believed at the time, to be reasonable assumptions, the Company cannot assure shareholders that actual results will be consistent with such forward-looking statements, as there may be other factors that cause results not to be as anticipated, estimated or intended. Readers should not place undue reliance on the forward-looking statements and information contained in this news release. Additional information regarding risks and uncertainties relating to the Company's business are contained under the heading "Risk Factors" in the Company's annual information form dated April 30, 2021 and the heading "Risks and Uncertainties" in the management discussion and analysis for quarter ended May 1, 2021 filed on its issuer profile on SEDAR at www.sedar.com. The forward-looking statements contained in this new release are made as of the date of this news release, and the Company does not undertake to update any forward-looking statements that are contained or referenced herein, except in accordance with applicable securities laws.
No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein.
Deloitte Canada, BDSA and Hifyre Cannabis Market Pricing Report (CNW Group/Fire & Flower Holdings Corp.)
SOURCE Fire & Flower Holdings Corp.
FIRE & FLOWER ANNOUNCES CHANGE TO ITS EXECUTIVE MANAGEMENT TEAM
OCTOBER, 28, 2021
https://investors.fireandflower.com/news/news-details/2021/Fire--Flower-Announces-Change-to-Its-Executive-Management-Team/default.aspx
TORONTO, Oct. 28, 2021 /CNW/ - Fire & Flower Holdings Corp. ("Fire & Flower" or the "Company") (TSX: FAF) (OTCQX: FFLWF), a leading, technology-powered, adult-use cannabis retailer, today announced that Nadia Vattovaz is no longer with the company effective October 28, 2021. Ms. Vattovaz's duties will be assumed by members of Fire & Flower's senior management team as the Company continues its transition to an asset-light, technology-focused model.
Fire & Flower logo (CNW Group/Fire & Flower Holdings Corp.)
Ms. Vattovaz has been instrumental to the growth of the Company's Canadian retail business, most recently serving as the Company's Chief Operating Officer responsible for overseeing the Company's real estate, construction, marketing, merchandising, distribution and retail operations functions. Ms. Vattovaz previously held executive leadership roles with the Company as Executive Vice-President, Finance, Chief Financial Officer and Executive Vice-President, Operations.
"We thank Nadia for her dedication and contributions to Fire & Flower throughout its early stages of rapid growth," said Trevor Fencott, President and CEO of Fire & Flower. "Nadia's retail and financial experience has been foundational in our development both as a public company and as a leading Canadian cannabis retailer. The Company is well-positioned for its next phase of growth through technology-driven, highly scalable, asset-light opportunities to deliver regulated cannabis products to customers in Canada and internationally. The Board of Directors, management and staff of Fire & Flower wish Nadia the best in her future endeavours."
About Fire & Flower
Fire & Flower is a leading, technology-powered, adult-use cannabis retailer with more than 95 corporate-owned stores in its network. The Company leverages its wholly-owned technology development subsidiary, Hifyre Inc., to continually advance its proprietary retail operations model while also providing additional independent high-margin revenue streams. Fire & Flower guides consumers through the complex world of cannabis through education-focused, best-in-class retailing while the HifyreTM digital and analytics platform empowers retailers to optimize their connections with consumers. The Company's leadership team combines extensive experience in the technology, cannabis and retail industries.
Through the strategic investment of Alimentation Couche-Tard Inc. (owner of Circle K convenience stores), the Company has set its sights on global expansion as new cannabis markets emerge and is poised to expand into the United & Flower U.S. Holdings States when permitted through its strategic licensing agreement with Fire upon the occurrence of certain changes to the cannabis regulatory regime.
Fire & Flower is a multi-banner cannabis retail operator that owns and operates the Fire & Flower™, Friendly Stranger™, Happy Dayz™ and Hotbox™ brands. Fire & Flower Holdings Corp. owns all issued and outstanding shares in Fire & Flower Inc. and Friendly Stranger Holdings Corp., licensed cannabis retailers that own and operate cannabis retail stores in the provinces of British Columbia, Alberta, Saskatchewan, Manitoba and Ontario, and the Yukon territory.
To learn more about Fire & Flower, visit www.fireandflower.com.
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION
This news release contains certain forward-looking information within the meaning of applicable Canadian securities laws ("forward-looking statements"). All statements other than statements of present or historical fact are forward-looking statements. Forward-looking statements are often, but not always, identified by the use of words such as "anticipate", "achieve", "could", "believe", "plan", "intend", "objective", "continuous", "ongoing", "estimate", "outlook", "expect", "project" and similar words, including negatives thereof, suggesting future outcomes or that certain events or conditions "may" or "will" occur. These statements are only predictions.
Forward-looking statements are based on the opinions and estimates of management of Fire & Flower at the date the statements are made based on information then available to Fire & Flower . Various factors and assumptions are applied in drawing conclusions or making the forecasts or projections set out in forward-looking statements. Forward-looking statements are subject to and involve a number of known and unknown, variables, risks and uncertainties, many of which are beyond the control of Fire & Flower , which may cause Fire & Flower 's actual performance and results to differ materially from any projections of future performance or results expressed or implied by such forward-looking statements. Such factors, among other things, include: final regulatory and other approvals or consents; fluctuations in general macroeconomic conditions; fluctuations in securities markets; the impact of the COVID-19 pandemic; the ability of the Company to successfully achieve its business objectives and political and social uncertainties.
No assurance can be given that the expectations reflected in forward-looking statements will prove to be correct. Although the forward-looking statements contained in this news release are based upon what management of the Company believes, or believed at the time, to be reasonable assumptions, the Company cannot assure shareholders that actual results will be consistent with such forward-looking statements, as there may be other factors that cause results not to be as anticipated, estimated or intended. Readers should not place undue reliance on the forward-looking statements and information contained in this news release. Additional information regarding risks and uncertainties relating to the Company's business are contained under the headings "Risk Factors" in the Company's Annual Information Form dated April 29, 2021 and "Risks and Uncertainties" in the management discussion and analysis for the thirteen weeks ended July 31, 2021 filed on its issuer profile on SEDAR at www.sedar.com. The forward-looking statements contained in this press release are made as of the date of this press release, and the Company does not undertake to update any forward-looking statements that are contained or referenced herein, except in accordance with applicable securities laws.
No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein.
SOURCE Fire & Flower Holdings Corp.
Fire & Flower Repays $2.3 Million Outstanding Debt, Retires $10 Million Debt Facilities
October 25, 2021 9:47 AM ER Velasco 0 Comments Fire and Flower
https://thedeepdive.ca/fire-flower-repays-2-3-million-outstanding-debt-retires-10-million-debt-facilities/
Fire & Flower Holdings Corp. (TSX: FAF) seems to be cleaning up its balance sheet. The cannabis firm announced today that it has repaid in full the outstanding secured debt facilities provided by ATB Financial.
The bank in 2020 had extended a $5 million revolving credit facility and a $5 million term loan to the company. Out of these, Fire & Flower had $2.3 million outstanding from the term loan and had not drawn from the revolving credit facility.
The firm said that it was able to pay the $2.3 million outstanding from the restricted cash in collateral, which was [pegged at $3.9 million prior to the repayment.
“Our ability to fully repay our bank debt six months early signifies the strength of our evolving asset-light business strategy, as well as, our unique opportunity to advance a number of near and long-term growth opportunities that focus on our competitive data-driven cannabis retail technology,” said Fire & Flower CEO Trevor Fencott in a statement.
Following the retirement of the ATB Financial debt facilities, the firm’s only long-term obligation is with 2707031 Ontario Inc., a wholly-owned indirect subsidiary of Alimentation Couche-Tard Inc., which is worth approximately $2.4 million and is due in June 2023. In March 2021, the firm announced that it has exercised its right to convert $23.6 million of the then-principal amount to equity.
Fire & Flower Holdings last traded at $0.79 on the TSX.
FIRE & FLOWER ANNOUNCES EARLY RETIREMENT OF DEBT FACILITIES
OCTOBER, 25, 2021
Great interview thank you for sharing
FIRE & FLOWER TO PARTICIPATE AT THE BENZINGA CANNABIS CAPITAL CONFERENCE
OCTOBER, 12, 2021
https://investors.fireandflower.com/news/news-details/2021/Fire--Flower-to-Participate-at-the-Benzinga-Cannabis-Capital-Conference/default.aspx
TORONTO, Oct. 12, 2021 /CNW/ - Fire & Flower Holdings Corp. ("Fire & Flower" or the "Company") (TSX: FAF) (OTCQX: FFLWF), a leading, technology-powered, adult-use cannabis retailer, today announced that Trevor Fencott, Chief Executive Officer of Fire & Flower will participate in an exclusive interview at the Benzinga Cannabis Capital Conference taking place in person at the Marriott Marquis in New York City from October 14-15, 2021.
If you are interested in scheduling a one-on-one meeting with Fire and Flower's management team, please contact FAF@kcsa.com.
About Fire & Flower
Fire & Flower is a leading, technology-powered, adult-use cannabis retailer with more than 90 corporate-owned stores in its network. The Company leverages its wholly-owned technology development subsidiary, Hifyre Inc., to continually advance its proprietary retail operations model while also providing additional independent high-margin revenue streams. Fire & Flower guides consumers through the complex world of cannabis through education-focused, best-in-class retailing while the Hifyre™ digital and analytics platform empowers retailers to optimize their connections with consumers. The Company's leadership team combines extensive experience in the technology, cannabis and retail industries.
Through the strategic investment of Alimentation Couche-Tard Inc. (owner of Circle K convenience stores), the Company has set its sights on global expansion as new cannabis markets emerge and is poised to expand into the United States when permitted through its strategic licensing agreement with Fire & Flower U.S. Holdings upon the occurrence of certain changes to the cannabis regulatory regime.
Fire & Flower is a multi-banner cannabis retail operator that owns and operates the Fire & Flower™, Friendly Stranger™, Happy Dayz™ and Hotbox™ brands. Fire & Flower Holdings Corp. owns all issued and outstanding shares in Fire & Flower Inc. and Friendly Stranger Holdings Corp., licensed cannabis retailers that own and operate cannabis retail stores in the provinces of British Columbia, Alberta, Saskatchewan, Manitoba and Ontario, and the Yukon territory.
To learn more about Fire & Flower, visit www.fireandflower.com.
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION
This news release contains certain forward-looking information within the meaning of applicable Canadian securities laws ("forward-looking statements"). All statements other than statements of present or historical fact are forward-looking statements. Forward-looking statements are often, but not always, identified by the use of words such as "anticipate", "achieve", "could", "believe", "plan", "intend", "objective", "continuous", "ongoing", "estimate", "outlook", "expect", "project" and similar words, including negatives thereof, suggesting future outcomes or that certain events or conditions "may" or "will" occur. These statements are only predictions.
Forward-looking statements are based on the opinions and estimates of management of Fire & Flower at the date the statements are made based on information then available to Fire & Flower . Various factors and assumptions are applied in drawing conclusions or making the forecasts or projections set out in forward-looking statements. Forward-looking statements are subject to and involve a number of known and unknown, variables, risks and uncertainties, many of which are beyond the control of Fire & Flower , which may cause Fire & Flower 's actual performance and results to differ materially from any projections of future performance or results expressed or implied by such forward-looking statements. Such factors, among other things, include: final regulatory and other approvals or consents; fluctuations in general macroeconomic conditions; fluctuations in securities markets; the impact of the COVID-19 pandemic; the ability of the Company to successfully achieve its business objectives and political and social uncertainties.
No assurance can be given that the expectations reflected in forward-looking statements will prove to be correct. Although the forward-looking statements contained in this news release are based upon what management of the Company believes, or believed at the time, to be reasonable assumptions, the Company cannot assure shareholders that actual results will be consistent with such forward-looking statements, as there may be other factors that cause results not to be as anticipated, estimated or intended. Readers should not place undue reliance on the forward-looking statements and information contained in this news release. Additional information regarding risks and uncertainties relating to the Company's business are contained under the headings "Risk Factors" in the Company's Annual Information Form dated April 29, 2021 and "Risks and Uncertainties" in the management discussion and analysis for the thirteen weeks ended July 31, 2021 filed on its issuer profile on SEDAR at www.sedar.com. The forward-looking statements contained in this press release are made as of the date of this press release, and the Company does not undertake to update any forward-looking statements that are contained or referenced herein, except in accordance with applicable securities laws.
No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein.
SOURCE Fire & Flower Holdings Corp.
Awesome news--->>>FIRE & FLOWER ANNOUNCES EXPANSION OF CIRCLE K CO-LOCATION PILOT PROGRAM
OCTOBER, 05, 2021
That is interesting. Might be time to get back in to canopy too. This industry changes so quickly!
I don't like this development --->>> Canopy Growth Makes Another Big Move Towards U.S. Expansion
The pot giant also secured another key partnership in the process.
By: David Jagielski
https://www.fool.com/investing/2021/09/27/canopy-growth-makes-another-big-move-towards-us-ex/
Sep 27, 2021 at 6:50AM
Canopy Growth will sell CBD vape pens nationwide in the U.S. next month.
Hemp-based products aren't new for Canopy, and they don't represent a significant chunk of the market.
The bigger development is its partnership with convenience store operator Alimentation Couche-Tard.
Expansion into the U.S. pot market is a key area of focus for Canadian marijuana producer Canopy Growth (NASDAQ:CGC). The company was working on deals to enter the U.S. well before its peers explored this opportunity. In 2019, it inked a still-pending deal with multi-state operator Acreage Holdings to accelerate its growth into the market, but that deal will only happen if and when the U.S. opens for business through federal legalization.
This month, Canopy Growth announced yet another move into America. But this deal doesn't need to wait for marijuana legalization.
Canopy Growth launches CBD vapes in the U.S.
On Sept. 14, Canopy Growth announced that it would be launching its first-ever cannabidiol (CBD) vape product, the whisl. The product has options that allow users to control their desired effect, whether it's to focus, relax, or wind down.
How can Canopy Growth do this, since marijuana is federally illegal in the U.S.? These products do not contain any tetrahydrocannabinol (THC), the psychoactive component of cannabis. While CBD isn't entirely legal, it is allowed as long as it is derived from a hemp plant -- which it is for these vape products. In 2018, the U.S. legalized hemp-based products under the Farm Bill.
Included in the news release was even more promising news: Canopy Growth will sell these products in more than 3,000 U.S. Circle K stores in a partnership with global convenience store giant Alimentation Couche-Tard (OTC:ANCU.F). This chain is no stranger to cannabis, as Couche-Tard owns a near-20% stake in marijuana retailer Fire & Flower, which has stores all across Canada.
Paving the way for bigger gains
The hemp-based CBD market is legal, but it isn't a significant growth opportunity, nor is it a new business unit for the company. Canopy Growth currently includes sales from any revenue it earns from the segment (including any sales it makes within the U.S.) in its "international and other" line item.
In its most recent results, for the period ending June 30, that line totaled just 19.4 million Canadian dollars and was down 8% year over year. It accounted for a little over 14% of its net revenue of CA$136.2 million. However, that also includes sales from medical marijuana in international markets. If hemp-based CBD products represented a significant chunk of revenue, Canopy Growth would likely have separated it out. The launch of the whisl product probably won't change the CBD story.
The bigger picture for Canopy investors is the growth in distribution channels. Canopy is positioning itself to be able to quickly profit from the U.S. market upon federal legalization. First, with its strategic relationship with beer maker Constellation Brands, which owns nearly 40% of Canopy. Secondly, with its Acreage deal waiting in the wings, contingent on the policy change. And most recently, by creating a presence in Circle K stores.
Looks like a good time to get in
ACT continues to reveal it's growth strategy. We can only assume they will do the same with F&F once permitted to do so in the USA.
I can't wait. - FUNMAN
Recent M&A Deals Advance Alimentation Couche-Tard's Growth Plans
Growing the size and scale of its network is key to the company's strategy.
By: Melissa Kress
Senior News Editor
LAVAL, Quebec — With two recent acquisition agreements on the table, Alimentation Couche-Tard Inc. is moving its growth strategy forward.
"Despite the ongoing challenges, I am proud that we continue to meet our strategic goals to grow the network both organically and through M&A," President and CEO Brian Hannasch said during the company's first quarter fiscal year 2022 earnings call, held on Sept. 1.
In July, the parent company of Circle K inked a definitive agreement to acquire Wilsons Gas Stops and Go! stores in Canada. The purchase of this network of 226 corporate-owned and dealer locations and a fuel terminal will allow Couche-Tard to expand its presence in Atlantic Canada, Hannasch said.
The deal is expected to close in the first half of the 2022 calendar year.
In addition, Couche-Tard entered into an agreement to acquire 35 sites currently operated under the Porter's brand, predominantly in Oregon and Washington.
"These fuel and convenience assets are high-quality locations and have a track record of growth and a network of experienced employees," Hannasch explained.
This transaction is expected to be completed in the second half of September, as Convenience Store News previously reported.
According to Hannasch, Couche-Tard will continue to look for deals in the merger-and-acquisition arena that meet a specific set of criteria.
"We're going to continue to look for opportunities of various sizes that include quality stores and talent, with the infrastructure — the bones, if you will — to enable us to deliver our key programs to our customers," he said. "With these two recently announced transactions, we're acquiring strong fuel and convenience assets in the Pacific Northwest and Atlantic Canada, and both are great fits for us.
"As we experience the new normal, we are seeing elevated deal flow in all three of our platforms," Hannasch continued, adding that he is cautiously optimistic that the company will get some more deals done in the coming quarters.
"Our focus is on being disciplined in our approach. We have a clear set of criteria for the assets we're looking for, and we'll continue to strive to do the right things for our shareholders," he noted. "In terms of valuations, they have remained surprisingly elevated given a lot of businesses have been impaired. But, again, we're optimistic with the level of deal flow that we'll be able to participate."
At the same time, Couche-Tard is making additional moves to optimize its network, including updating older locations in the United States, and adding 30 new-build convenience stores that support its organic platforms and brand promise.
"Growing the size and scale of the network is essential to our strategic ambition. And as always, we remain disciplined in our approach to create value for our shareholders," Hannasch concluded.
Laval-based Couche-Tard operates in 26 countries and territories with 14,200 convenience stores, of which approximately 10,800 offer road transportation fuel. Operating under the Couche-Tard and Circle K banners, it is the largest independent c-store operator in terms of number of company-operated stores in the U.S.
(See Blue highlights & comments)--->>>FIRE & FLOWER AND HIFYRE COMPLETE ACQUISITIONS OF POTGUIDE AND WIKILEAF
SEPTEMBER, 15, 2021
Earnings Call Transcript - Fire & Flower Holdings Corp. (FFLWF) CEO Trevor Fencott on Q2 2021 Results - Earnings Call Transcript
Sep. 14, 2021 3:04 PM ET
Fire & Flower Holdings Corp. (OTCQX:FFLWF)
Q2 2021 Earnings Conference Call September 14, 2021 8:30 AM ET
Company Participants
Trevor Fencott - CEO
Judy Adam - CFO
Nadia Vattovaz - COO
Conference Call Participants
Justin Keywood - Stifel Financial Corp.
Frederico Gomes - ATB Capital Markets
Andrew Semple - Echelon Wealth Partners
Aaron Grey - Alliance Global Partners
Operator
Hello, everyone, and welcome to the Fire & Flower Holdings Corp. Second Quarter Fiscal 2021 Financial and Operational Results Call. My name is Daisy, and I will be coordinating today’s call. You’ll have the opportunity to ask a question at the end of the presentation. [Operator instructions].
I’ll now hand over to your host, Trevor Fencott, the CEO of Fire & Flower Holdings to begin. So, Trevor, please go ahead.
Trevor Fencott
Thank you very much, and thank you for joining me today for our second quarter 2021 conference call. I'm Trevor Fencott, President and CEO of Fire & Flower. And joining me today is Judy Adam, our CFO, and Nadia Vattovaz, our COO. Earlier today, our company published its operational and financial results for the second quarter ended July 31, 2021, and the results are available on the company's website and on SEDAR.
Prior to beginning our call, I’ll direct listeners to the cautionary statement regarding forward- looking information published on the news release for the second quarter, as well as the company's filings on SEDAR. Similar to previous earnings conference calls, we'll be providing commentary on our fiscal second quarter 2021 financial results, along with an operational update on our tech-enabled retail business model, and the steps we've taken to advance key industry partnerships and secure strategic acquisitions through our newly implemented expanded digital strategy. We focused this quarter on strategically leveraging our proprietary data-driven retail platform, Hifyre, to drive near and long term financial growth for Fire & Flower, while helping to transform the cannabis retail experience for the industry at large. We’ll then conclude with a moderated question-and-answer period from equity research analysts that cover Fire & Flower.
So, first, I'd like to provide an overview of our financial highlights for the second quarter of 2021, as these results demonstrate the strength and continued success of our data-driven retail operations. Our vertically integrated operations, I'll start with financial highlights, composed of our retail, wholesale, and digital business segments, continued to drive our total revenue performance, resulting in second quarter revenues increasing 51% year-over-year to $43.3 million. Once again, we've delivered another quarter of positive adjusted EBITDA, making this our fifth consecutive quarter, reaching $3.1 million in the second quarter, an increase of 176% compared to Q2 2020. Key to our overall growth is the milestone performance of our digital business, driven by our Hifyre digital retail and analytics platform. In the second quarter, this business segment generated $3.7 million, representing an increase of 293% from the previous year comparable period.
Before diving deeper into the numbers, which Judy will do in a bit, I'd like to review our operational accomplishments in the second quarter, and discuss how we're successfully scaling our unique tech-enabled cannabis retail platform to reach a new level of growth for Fire & Flower, and build our leadership position in new markets we strategically enter. So, again here, for our operational highlights, today, we operate 93 stores, sorry, with multiple banner brands, including Friendly Stranger, Hotbox, Happy Dayz, and Fire & Flower. All of these are powered by our Hifyre digital retail and analytics platform.
While our retail sales have been impacted this quarter by pricing pressure due to an unprecedented number of licenses being issued in Ontario, where we’ve focused much of our retail expansion in Canada, we view this as a temporary industry disruption. Despite our retail sales being slightly down this quarter-over-quarter, we're more energized than ever by the opportunities we've secured this quarter in expanding our digital footprint to acquire an even stronger dataset of customer cannabis purchasing behaviors. As you are aware, we are a technology-first cannabis retailer, and our competitive edge lies in our ability to own and drive value from the customer relationships that we continue to build through our data and analytics technology that's employed in every store we own, and now, every store we enter, either through acquisition or partnership.
Our retail strategy, unlike any of our competitors, and as we continue to deploy our digital technology platform across the expanding cannabis retail industry, we're building greater opportunities to generate high margin revenue growth, and we're more powerfully demonstrating our true competitive edge to drive our leadership position. Our growth this quarter is a direct result of more and more leading cannabis players recognizing the unmatched value of our proprietary data-driven technology, and are looking to Fire & Flower as an essential partner for growing their operations.
Our longstanding partners have always been key to our growth. Our strategic partner, Alimentation Couche-Tard, owners of Circle K, continued to support our expansion initiatives and exercise their A3 warrants in Q2, increasing their position to 22.4%, as we jointly work to advance our co-location pilot program within their Circle K stores. This program, which enables us to open Fire & Flower stores co-located with Couche-Tard’s Circle K stores using their existing real estate, presents an opportunity as we aim to expand across Canada. In this quarter, we've also worked with our partner, American Acres, to drive expansion opportunities across the US, targeting key markets like California, Arizona, and Nevada. Through our licensing agreement, American Acres has licensed our Fire & Flower brand, store operating system, and Hifyre technology platform. We recently announced our entry into the California market with the opening of our first Fire & Flower brand store in Palm Springs, California. In addition, American Acres has officially changed its name to Fire & Flower US Holdings, firmly establishing our US entry strategy, and laying the foundation for new Fire & Flower branded US store openings. As part of our licensing agreement, Fire & Flower has an option to acquire American Acres, once regulations permit. We believe that we have a unique opportunity to expand in the US by continuing to leverage our Hifyre technology, as we incorporate our platform into each acquired store to strategically advance our overall data-driven retail offering.
Finally, in the second quarter, we entered into a strategic supply agreement with Humble & Fume, to offer an expanded online catalog of Humble’s newest products, including a wide assortment of the most popular cannabis accessories in the world. With the addition of over 5,000 new SKUs, we have further deepened our relationship with our customers by expanding the Spark Perks program to the cannabis accessories consumer segment, driving even stronger digital engagement with a broader customer base. Another key facet of this partnership is that it requires little capital investment from our end, as we are able to extend our existing Hifyre digital retail platform to this high demand line of cannabis accessories, and further enhance the e-commerce purchasing experience for our customers.
So, I'd like to talk a bit about our expanded digital strategy and Hifyre Spark members. We spent significant time building the most comprehensive and insightful cannabis digital retail and analytics platform. And as you can see by our recent results, the strategy is really starting to blossom. Our early investments in the collective work of our leading engineers and data scientists in building our Hifyre platform, is now driving a number of new growth opportunities that focus on commercializing our proprietary technology. With very little capital investment at this stage, we are rapidly building and monetizing the most valuable asset in the cannabis market, customer engagement. As our Hifyre platform has proven to provide the cannabis industry with the strongest understanding of consumer preferences and behavior, market dynamics to advance the cannabis operations in this very competitive market.
With that said, we've successfully accomplished the rollout of our expanded digital strategy. As part of our business strategy, Hifyre is creating white labeled online dispensaries fulfilled by the Fire & Flower retail network that can be expanded to other cannabis dispensaries and delivery channels in both Canada and the US. Users of these websites are then enrolled into Fire & Flower’s proprietary Spark Perks membership loyalty program, which now has over 310,000 subscribers. Through the continued execution of the digital strategy, we believe we will drive a much larger Spark Perks member base that presents exponential value to our business. As I continue to emphasize the most valuable piece of our business, and underlying impetus of each of our growth initiatives, is the continued advancement and extension of our retail technology platform into new cannabis markets to capture the most valuable piece of the cannabis value chain, owning the customer relationship. Fire & Flower has always placed technology first in developing our multi-banner cannabis retail network. Our Hifyre platform seamlessly connects our customers to achieve the greatest value from each of our stores, and presents the unique opportunity to easily integrate this powerful infrastructure into other cannabis operations.
We've secured two very important acquisitions in the past month that present another great opportunity to drive our Fire & Flower brand expansion in the US, and most importantly, demonstrate our success as a tech-enabled retailer. So, recent acquisitions focused on our expanded digital strategy. I want to talk about that for a moment. As we entered the third quarter of 2021, we announced the acquisition of Wikileaf Technologies, an online cannabis platform that's proven to generate significant user traffic through engaging content and domain name strength. This acquisition officially launched our expanded digital strategy, as we will be transforming the Wikileaf website into a virtual online dispensary for cannabis and accessory products, utilizing the same e-commerce proprietary technology platform that powers our Fire & Flower retail network. With this acquisition, we launched a larger dedicated plan to create new branded online dispensaries, white labeling cannabis websites enrolling users into Fire & Flower’s proprietary Spark Perks membership program. Not only does this digital strategy offer high margin revenue through our Hifyre platform, it is very asset-light and highly scalable, as we expand across North America.
Following this acquisition, we announced the acquisition of PotGuide, one of the world's largest cannabis websites and content platforms. Coming right on the cusp of our acquisition of Wikileaf, the significant opportunity demonstrates the strong growth opportunities that are being created by our newly implemented expanded digital strategy. Even further, this acquisition will provide Hifyre with a US base for technology and operations in Denver, Colorado. Once again, the goal here is that we will be able to leverage a significant amount of user traffic by white-labeling our dispensary e-commerce software to convert traffic into purchases. PotGuide and Wikileaf together bring an existing subscriber base of approximately 225,000 cannabis consumers into our Spark Perks ecosystem, further strengthening our understanding of cannabis consumer preferences across North America to enhance our overall cannabis retail offering as we expand.
Our wholesale division, because we are a vertically integrated business in this sense, also supports our continued growth in the face of industry-wide challenges. Our wholesale division operating in Saskatchewan Open Fields Distribution, has maintained and remains a steady source of recurring revenue. We continue to source cannabis products directly from licensed producers in this province to distribute these products to our retail stores and other third party retailers. This business division has proven successful and supports our overall continued revenue growth.
And finally, in this, I'd like to provide a NASDAQ update. We continue to progress towards listing on NASDAQ Exchange, and expect this to be done by the end of this year. While this has been a longer process than we would have liked, it's an exciting one, as it presents a great opportunity for Fire & Flower to drive increased visibility of our rapidly expanding business. Now that our Hifyre tech platform is generating greater interest from the cannabis industry, and investors are increasingly recognizing our position as a tech-enabled retailer, we believe our listing on the NASDAQ is well suited for our position as a publicly traded company.
I'd now like to turn the call over to Judy, to discuss our financials, and provide a more detailed overview of the progress each of our key businesses made in the first quarter - sorry, second quarter of 2021. Judy?
Judy Adam
Thank you, Trevor, and good morning, everyone. I'm happy to provide a financial overview of Fire & Flower and our operations as released to the markets earlier this morning. To begin, I'll remind everyone that Fire & Flower follows a retail calendar, with every quarter consisting of 13 weeks. Today, I will be speaking to the second quarter ending July 31st, 2021. We continue to report quarterly positive adjusted EBITDA, with $3.1 million for the second quarter of 2021, representing an increase of 176% compared to positive adjusted EBITDA of $1.1 million in the second quarter of 2020. Our adjusted EBITDA performance continues to be driven by steady revenue growth from all three business segments, continued monetization of our Hifyre digital retail and analytics platform, and our ability to introduce new cannabis products that specifically meet our target demographics in each of our markets.
Total revenue for the second quarter of 2021 increased 51.4% to $43.3 million, compared to $28.6 million in the second quarter of 2020. Fire & Flower’s total revenue is derived from three primary business segments, the retail segment, which we had 91 stores as of July 31st, 2021, across Alberta, Saskatchewan, Manitoba, Ontario, British Columbia, and the Yukon Territory. Our wholesale distribution segment, Open Fields Distribution that sells cannabis and cannabis related accessories to both Fire & Flower stores, as well as to external accounts in Saskatchewan. And finally, our digital platform segment, operating through the Hifyre digital retail and analytics platform, proprietary to Fire & Flower. It produces revenue from external clients of the Hifyre IC data and analytics platform, as well as industry-leading targeted digital advertising.
Of the total revenue of $43.3 million for the second quarter 2021, retail operations generated $31.8 million, Open Fields Distribution generated $7.8 million, and $3.7 million came from our Hifyre digital platform. Retail revenues of $31.8 million for the 13 weeks ended July 31st, 2021, increased by 36.3% from $23.4 million in the comparable period of 2020. The increase in retail revenue is the result of Fire & Flower’s expanded retail networks of 91 stores at the end of Q2, 2021, compared to 49 stores at the end of Q2, 2020. Seven new locations opened in the current quarter, which included two in Ontario, two in British Columbia, two in Manitoba, and one in Saskatchewan. Traditional formats, such as Flower, particularly in pre-roll and large format value options, and cannabis 2.0 products, continue to see topline growth. On same-store sales basis, comparing the 48 stores with operations throughout the 13 weeks of Q2, 2021, and Q2 2020, sales decreased by 14% year-over-year. This decrease in same-store sales is attributable to the surge in newly licensed retail cannabis stores in Ontario, increasing 48% from 665 at May 1st, 2021, to 981 at July 31st, 2021, as well as increased competition and aggressive pricing strategy by deep discount retailers.
Wholesale distribution revenue of $7.8 million for second quarter 2021, increased 81.3% from revenue of $4.3 million in the second quarter of 2020. Our wholesale distribution segment operates through our Open Fields business, which purchases cannabis products directly from licensed producer and distributes them directly to our retail stores and other third party independent licensed retailers in Saskatchewan. Open Fields also purchases cannabis accessories and related ancillary products from Canadian-based and global suppliers, and distributes them to Fire & Flower retail stores and third party independent retailers in Canada. Revenue in this segment increased, as the Saskatchewan market continues to open up, and more retailers are sourcing inventory from Open Fields and growth of cannabis 2.0 products.
Digital platform revenue increased 293% to $3.7 million in the second quarter of 2021, from $0.9 million in the second quarter 2020, as the company continues to monetize the Hifyre digital retail and analytics platform. The year-over-year increase reflects growing monthly recurring revenues in data sales, both in Canada and the US, plus continued maturation of our Hifyre reach ad network, and the initial kickoff of branded digital dispensary partnerships.
Total gross profit for the company for the second quarter 2021, was $6.2 million or 37.3% of revenue, compared to total gross profit of $10 million or 34.8% of revenue for the same period of the previous year ended August 1st, 2020. All business segments individually contributed to the increase in gross profit dollars. Expansion in gross profit percentage, reflects a shift in mix for the larger portion of gross profit coming from the high margin Hifyre business in the current period, compared to the prior year.
Total adjusted EBIDA for the company for the second quarter 2021 was $3.1 million, compared to a loss of $1.1 million in the same period of the previous year ended August 1st, 2020. All business segments individually delivered positive adjusted EBIDA in the current quarter, with Hifyre leading the way with $2.2 million in adjusted EBITDA. The expansion in gross profit percentage and continued growth in adjusted EBITDA, reflects the benefits of being a tech-enabled retailer with a diversified segment portfolio, and is a clear testament to our ability to outperform in a highly competitive market.
The company reported net income of $19.5 million or earnings per share of $0.06 for the second quarter 2021, compared to a net loss of $42.1 million or net loss per share of $0.13 in the comparable period of 2020. We have a strong balance sheet, and as of July 31st, 2021, the company had cash and cash equivalent of $29.3 million, and total debt of $3.8 million.
Thank you. And I'll turn it back to Trevor and look forward to questions from the participants on the call.
Trevor Fencott
Thank you so much, Judy. As we move forward to the second half of the year, we continue to build out our asset-light model to generate even stronger financial results in the quarters ahead. We'll continue to monetize our Hifyre technology platform and build this technology into our expanding retail network to operate a cannabis retail platform unlike any of our competitors. We look forward to advancing this business strategy that's proven itself advance lead the cannabis industry.
I'd now like to turn the call over to the operator for questions. So, over to you, Daisy.
Question-and-Answer Session
Operator
[Operator Instructions]. Our first question comes from Justin Keywood from Stifel. Justin, your line is open. Please go ahead.
Justin Keywood
Hi. Good morning. Thanks for taking my call. Just on the gross margins in the quarter, it showed a nice expansion. I think you calculated around 250 bps despite the increased competition in the market. I'm just wondering how sustainable these gross margins are.
Trevor Fencott
I think actually, Justin, I'm going to kick that over to - we have Nadia on the call. Nadia would probably be the best one to speak to that.
Nadia Vattovaz
Good morning, Justin. Thanks for your question. So, if you're talking about margin on a consolidated basis, certainly the margin mix with the really strong performance of the digital platform this quarter, has really contributed to an increase in that gross margin, and we expect that to continue. On the retail side, we did see sort of a tale of different provinces. So, Ontario, as it grows, continues to look really strong. Certainly, in Alberta, we're seeing the price compression from the deep discount competition. And I think that this is - we're evolving like we did a couple of years ago when the Alberta competition really was increasing. And we'll see probably some shakeout in terms of margin, but there's also opportunities like private label to increase margin. So, I anticipate that there will be pressures on gross margin, and that there'll be opportunities, Justin, on gross margin. But what I'm really excited about is the digital platform, because we know that the margin on that business is really strong. And as we continue to grow those sales, particularly in the sales mix, that will continue to keep our margins up.
Justin Keywood
Understood.
Trevor Fencott
And Justin, that's always been our strategy. We started with the end in mind. We knew it was going to be hyper competitive, which is why we invested in this in 2018 before it was competitive. So now, we're starting to see the dividends paid by our digital tech.
Justin Keywood
Absolutely. And on that digital tech, I think I calculated a run rate of about $15 million in annual sales and showed some nice expansion in the quarter. And that was prior to the PotGuide and Wikileaf. I'm just wondering if there's any broad goals for where this revenue can trend to. And also just on the PotGuide and Wikileaf, it sounds like there may be some investments required to upgrade that - those platforms to the Hifyre standard, and if there's an amount attributed for that expected investment.
Trevor Fencott
Judy, do you want to handle that one?
Judy Adam
Sure. Yes. We’re really excited about the Wikileaf and PotGuide acquisitions, as we already have a significant base of monthly and annual recurring revenue subscriptions coming out of existing Hifyre products. You’ll see that we've been more than doubling year-over-year quarterly revenue. And as we add new revenue channels and products to the digital platform, this will give us an opportunity to produce more high margin revenue stream. So, so far this year, Hifyre has delivered significant year-over-year growth and yes, we expect us to see the same trends play out for the remainder of the year.
Trevor Fencott
Justin, maybe what I'd add to that in terms of color as well is, I always like to talk about Hifyre is not our IT department. People often sort of confuse it with that. You got a lot of SG&A. what is this? Well, it's an R&D arm of the company. It develops and commercializes technology. So, it's not even just that one - there's one revenue stream associated with a digital product. Like we keep creating new digital products and services and revenue streams as the market matures. It's a dynamic kind of living thing that's creating new revenue streams. So, it's not even - Wikileaf and PotGuide are just the latest instantiation of our tech R&D. So, I think that's important to kind of factor in when you look at how it could grow, because remember, last year this time, people were asking questions of, well, how many data and analytics platform subscriptions can you sell? Well, we’ve proven that actually we’ve developed an ad network, and now we've developed a customer acquisition channel. So, that's how I would look at it.
Justin Keywood
Yes. And you’re certainly diversifying. Yes.
Judy Adam
Yes. And I would just add, again, these are all high margin revenue streams and highly scalable, especially as we expand across North America.
Justin Keywood
Great. And if I could just fit in one more question. In Ontario, the store cap lifting this month from 30 to 75 per operator, what would be the strategy for Fire & Flower in either buying or building or co-locating, assuming the strategy is still to maximize that store cap?
Trevor Fencott
So, maybe I'll start with this one, and Nadia, and Judy, can jump in and add some color. But I mean, obviously, Ontario is going to be an important - we always knew it was going to be an important market in Canada. It’s a 14 million person province. So, it's important. Having said that, we've taken a real sort of careful look at our real estate portfolio. We have a shared service agreement with Circle K Couche-Tard. So, we planned our real estate portfolio well in advance. So, as we’re kind of looking to maximize the cap, I think it's more important that we go into the right locations, rather than we sort of run and sprint to just open stores. That's a very early stage game play, and I think it leads to potentially capital misallocation. So, for us, we want to make sure that - we obviously want to max out our cap, but we want to do it in a very planful way. The right location is always going to be the right location. So, I don't know if there's any other color, Judy, or Nadia, you want to add to that.
Nadia Vattovaz
Well said, Trevor.
Trevor Fencott
Okay. I’ve learned the word planful from Nadia.
Justin Keywood
Okay. I appreciate the additional color. Thank you for taking my questions.
Operator
Our next question comes from Frederico Gomes from ATB Capital Markets. Frederico, your line is open. Please go ahead.
Frederico Gomes
Hi. Good morning, guys. Just to stay on the Hifyre topic, very strong digital sales growth this quarter. I just wonder if you could maybe just provide more color on what's driving that growth. Are you getting more customers, or is it about upselling existing customers? And is that coming mostly from Canada or from the US? Thanks.
Trevor Fencott
Yes. So, return to kind of the idea of layered revenue streams. So, if you look at kind of our last year's results, I believe it was sort of 6.2, 6.3 million in overall digital revenue. The bulk of that was recurring data and analytics subscription revenue, but just a touch of it was the beginning of our ad network revenue coming in. And so, we continued to kind of layer that on and that continues to grow. And now, we’re bringing on sort of different customer acquisition and monetization channels. So, I would expect it to be almost like a layer cake. You're adding different sort of revenue streams on top of different revenue streams. So, the mix isn't going to be completely homogenous anymore as we diversify the product.
So, with Wikileaf and PotGuide, you have this tremendous opportunity to bring in all these customers in a customer acquisition funnel or channel, and then we can push them out to different branded e-commerce websites or into stores, and we'll monetize it all through our sort of tech chain. So, I mean, short answer is that there won't be any one dominant sort of revenue stream as time progresses, which is good thing for us. That means that we've got a diversified revenue stream. We are definitely, definitely adding customers, and we’ve seen the growth in our Spark Perks membership. And as I said, with 225,000 combined users or members of Wikileaf and PotGuide, you can see pretty clearly that you start to aggregate that, you can start to monetize that, and that hasn't even started yet. So, I mean, hopefully that provides some color on kind of where the revenue is coming and the growth will be coming from. The other thing is, the opportunities that we're starting to push down the pipe on that one, including the branded websites that again is just starting. This is something that is sort of like measured in weeks, not quarters. So, we're excited that we're just at the beginning of that process.
Frederico Gomes
I appreciate that, Trevor. that's very helpful. And maybe if you could comment on pipeline for further M&A on the digital side. Are you looking at different companies to view their tech stack further? Just, how is the pipeline looking there?
Trevor Fencott
Yes. I mean, that's a great question because with the PotGuide and Wikileaf acquisition, we are the only company that we're aware of actually that has a fully vertical, fully integrated, complete vertical stack from customer acquisition to customer management, to digital modalities, like e-commerce, things like delivery. So, all the way from the beginning to the end, we have this complete vertical stack. So, it's sort of completed our tech stack, so to speak. And we're the only one that have these capabilities at the moment. Although it's relatively slim, it's complete. So, I would expect us to be looking at ways to increase things like customer acquisition channels, customer count, because that's ultimately what's going to drive value. We will always be looking for valuable acquisitions in this space. There's a lot of sort of smaller tech offerings that are out there that we will continue to evaluate. And we're always sort of interested in growth, but it's got to be appropriate growth. We're not interested in overpriced acquisitions. We're not interested in things that are duplicative. It has to really pass a pretty rigorous internal test before we would proceed with things, but we are looking for growth.
Frederico Gomes
Thank you. I appreciate that, Trevor. I’ll hop back in the queue. Thanks.
Operator
Our next question comes from Andrew Semple from Echelon Wealth Partners. Andrew, your line is open. Please go ahead.
Andrew Semple
Hello. Good morning. First question from me is just on the revenues, the retail part of the business. Obviously, retail revenues may face some pressures with COVID19 lockdowns during this quarter. Could you maybe provide some insight as to whether and to what magnitude we should be expecting those retail sales per store to recover in into Q3 as we move past some of the lockdowns we experienced in the prior quarter?
Trevor Fencott
Sure. So, maybe I'll start that one off. I'm sure that you're going to get color from all three of us on this one, because it's something that is very topical for us. But at a high level, the metaphor is, we're kind of in this trifecta or perfect storm of three different sort of competing factors. You’ve got COVID, which continues to sort of weigh on the industry. And the regulatory uncertainty, things like buildouts are still sold out in some cases. You still have reduced foot traffic. It hasn't returned to pre-COVID levels. We’re in a fourth wave. There’s all that sort of stuff. You've also got licensing expansion, which again, that’s a nearly 50% expansion in one quarter in the major - our major market, is nothing to sneeze at.
So, that's going to happen. But again, these are nothing - these are things that we faced in Alberta before. And then I think you've got the third pressure pillar of predatorial price wars happening with deep discount retailers. So, you've got these three things. All of these three things have an end to them. Do I think it's Q3? Well, I think that that's unlikely. These things are going to resolve themselves over time because of course you can't on the deep discount front. There has to be a sustainable business model underneath it. You can disrupt for a little while, but eventually economic sense has to prevail. You have to operate a business that makes money.
On the COVID side, of course, COVID, knock on wood, COVID has to end at some sort of juncture, but we've been hearing predictions of when that's going to happen for over a year now. And then, of course, on the licensing frontier, you - quite naturally, like this is just a normal part of the business cycle. We saw this in Alberta where there was a mass licensing. I think the record at the time was 20 licensed a week. And it expanded. It’s got a lot of kind of mom and pops in the queue that, unfortunately, even though there isn't really a lot of room for single players anymore in the market, they have to kind of launch to market because they've signed a lease. And so, they're coming, come - no matter what, they're going to launch. And then, you’ve got the overcrowding and then a pairing back as businesses, unfortunately, can't compete. So, all these things resolve themselves. I doubt they resolve themselves in a quarter, but they eventually do. So, I’d pass it off to my colleagues to see if there's another perspective they want to - or some color they want to add.
Nadia Vattovaz
Trevor, I think you're on a roll today. You don't leave me anything else to say.
Trevor Fencott
Okay. Yes. I'll be more (indiscernible) next time. We'll start with Nadia.
Andrew Semple
Yes. That was very helpful, Trevor. Thank you. just on the - one of the points you brought up, I did want to explore your team's value segment of the markets, which, as you guys know and as I'm sure you see in your Hifyre data, is coming on quite strong. Could you maybe speak to whether Fire & Flower has a strategy or a plan to unveil a strategy on how the company plans to address the value segment of the market and potentially looking at more aggressive pricing strategies within your retail portfolio?
Trevor Fencott
So, this one, I am going to hand to Nadia, because she's obviously very close to this, but I would just point out one thing before, which is there's a difference - it's important to understand the difference between a value strategy, which is giving the consumer what they want at the price they want. And it's a certain type of consumer, which we're very plugged into, because of course, we're a data-driven retailer. A value strategy is different than category discounting, which is sort of just a blanket discount strategy. That's market disruption. And it is a competitive strategy for a while, but again, just blanket discounting to disrupt the market, is not a value strategy. So, it's an important kind of distinction that I think people need to keep in mind. And then with that, I'll leave it to Nadia who will explain how we look at it.
Nadia Vattovaz
Thank you. Good morning, Andrew. So, this is exciting in retail because we are now seeing the emergence of the various types of consumers and how they like to shop and in what brand. So, we, in fact, in the middle of the quarter, Andrew, launched a value proposition to our customers. And we know that there is a value segment of our customer base that shops in our store and they need to have compelling product and the appropriate assortment priced in the way that is compelling to them, and it was highly effective. And so, we will continue to expand that within our current stores so that those customers are always compelled to come to us, and then we can also offer them other choices while they're in shop, with our (indiscernible). There is a - within our portfolio, a few of our stores, particularly in the Happy Dayz locations that are more of a value-based offering, and those are also highly successful stores. I think it's fair to say that we will explore that in a meaningful way in the quarters to come for sure.
Andrew Semple
Great. That's helpful. Thank you, Nadia. And one last question, if I may. I did want to ask on Hifyre. There was another great step-up this quarter in terms of commercializing the hard work that goes into that ecosystem. How should we be thinking about digital revenues in the back half of the year? If we look back to Q4 of last year, we did see a bump around the holiday period. Would you expect that to reoccur in this upcoming holiday period? And then more generally, how do you think the pace of that business is building towards the second half?
Trevor Fencott
So, maybe I'll start that one as well and pass it to Judy. But I think that it still goes back to that kind of layered product assortment, or layered revenue stream assortment this year versus last year. So, last year, as I said, most of that 6.3 or 6.2 was comprised of digital analytics and data package sort of subscription, recurring subscription revenue, and that some of that is to do with subscription timing, right, sort of renewals and that kind of thing. So, that's part of that business. I would say the difference this year is we have our digital advertising network. We've got these other sort of revenue streams sort of layering on top of that. So, it's going to be, as I said, a lot less homogenous, a lot more layered and kind of nuanced, but that's just to keep having these sort of growth drivers layered on top to continue having it grow. So, in terms of lumpy, we have other different streams that are layered on top of it. But, Judy, do you have any other color you want to add to that kind of general framework?
Judy Adam
Yes. No. yes. The only thing I'd add is, as Trevor said, in Q4 last year, we really just started to launch that - the Hifyre reach ad network. So, we're seeing maturation in that now. And we continue to see a growing monthly recurring revenue stream and data sales, both from Canada and US. So, things have started to really kind of steady out. And we're also seeing an initial kickoff of revenues coming from the branded digital dispensary partnerships. So, when you look at the front half performance with a doubling of revenues year-over-year, I mean, we really expect that trend to kind of continue into the back half.
Andrew Semple
That's very helpful. Thank you, Trevor, and Judy, and I'll hop back into queue. Congrats again on the quarter.
Operator
Our next question comes from Aaron Grey from Alliance Global Partners. Aaron, your line is open. Please go ahead.
Aaron Grey
Good morning, and thank you for the questions. The first one for me, Trevor, you kind of spoke to potential other acquisitions down the line on the technology side, always looking for more acquisitions in the space. So, would love to get your thoughts in terms of where you feel you guys are right now with the recent Wikileaf and PotGuide acquisition, and just how you're seeing the overall landscape. You talked a little about valuations are still a little bit frothy. We’ve seen some other competitors on that side of technology continue to announce other acquisitions. So, could you maybe just give some color in terms of what you're seeing out there in terms of the prices and maybe the pipeline? Do you think that's more of a near term dynamic in terms of more acquisitions, or you're kind of focused on integrating some of the recent acquisitions you've had today and maybe incremental acquisitions down the line? Thank you.
Trevor Fencott
Yes. I mean, that's a great question because, again, it comes down to the idea that we've - our first acquisition was Hifyre back in 2018. And so, think of it as a team of like 25, 26 data scientists and engineers that are building things for us. And so, it will - as you know, in business, it's always sort of, it's often cheaper to build things yourself, if you started the right way and you build it to be scalable and extensible. If you're buying something, unless it's distressed or massively undervalued, you sort of you’re taking on some of their development costs in that purchase price. So, we really take a keen focus on what do we need to build, or what can we expand, and what can we do ourselves, because that is very cost effective, and what do we need to go out to augment, and what gets us farther faster on that front?
So, we started off with a very robust, I'm going to call it like a technical spine or the building blocks being very, very solid. So, when we add things like Wikileaf is a easy add for us because we have that bend strength to integrate it. So, we're going to focus obviously on PotGuide integration, and Wikileaf integration and commercialization in the kind of obviously immediate term. I would say that on the technical landscape, and yes, we agree that valuations are extremely frothy out there on the tech side, we are hopeful that people, investors will start to recognize that we actually are the only ones with a complete vertical tech stack in the cannabis industry. I think a lot of the acquisitions in the outside tech industry, are going to be focused on actually creating a vertical stack for themselves, right? There's missing pieces.
So, analogs to all the pieces of our technical stack, whether it's customer acquisition, or customer management loyalty, or e-commerce, or all the things that we already have in our stack, I think that that's probably where the M&A outside will look at as they try to fill in missing pieces of their technology. With us, we have a complete technology. The technology is complete. It's the only complete vertical certainly that we're aware of the cannabis thing. So, for us, it's a little different when we look at acquisitions. It is, what's going to get us further, faster, and what's going to leverage our existing engineering and technology base? This is all stuff that we've largely built, right? So, and hopefully that explains a little bit of how we look at acquisitions. It's not simply sort of a going out in an M&A frenzy. I don't think that's sort of for anyone, but measured, planful kind of what gets us farther faster, are things that we would look at.
Aaron Grey
That's really helpful color. Thanks for that. And my second question will kind of be a follow-on to that. Number one, just could you provide some more color in terms of how - you guys currently have the vertical tech platform, and you mentioned kind of some of your competitors maybe looking to go out and become similar. What do you see as maybe the difficulty in you already having it on a legacy basis and already having the expertise, versus them trying to go out and acquire it? Maybe the difficulties in terms of being able to integrate that. And then secondly, just in terms of what area the technological supply chain you believe would be most valuable maybe today that gets you further, faster, as you mentioned before, just to maybe think about. And more clearly might - within that pipeline in terms of the different verticals of the supply chain for technology might be looking. Thanks.
Trevor Fencott
Sure. Yes. There's a lot in there, but I can unpack it. I think that the - for us, the most valuable part of the chain is owning the customer relationship, because it's the job of a retailer. Like that's our job. If you can't own the customer relationship, then in some way you've lost it. And each time you have a piece of technology from the outside, a third party technology that you are integrating into your operations, you've lost control in varying degrees to that relationship. So, if you're using third party e-commerce as a retailer, you've lost control over that customer relationship. If you're using third party loyalty - customer loyalty services, then you've definitely lost the relationship with that customer. If you're using third party delivery, all these set of things matter. And so, for us, it's driven on the fundamental premise of own the customer relationship. That's what you have to do.
And I would sort of say the difference between what we're doing and what I think the general technology environment in cannabis outside is doing is, we are based in a retail environment. And that was by design. So, what we do and the way that we develop our technology is, we are a retailer. So, the use cases, the technology development protocols, what we need to develop comes from ourself. We are beta testing on ourself. So, we are able to have a feedback loop between what is advantageous at retail, to what we should develop and deploy almost instantaneously. It's a very, very small feedback loops as opposed to a third party software provider, which is, well, we'll get to it when it suits our development process or our staffing resources. A great example was when COVID hit, to be quite honest, we didn't have in our development pipeline fast - Spark Perks fast lane, like the kind of click and collect functionality.
And so, we very, very quickly, of course, adapted that. We built it, and it was done and deployed, things like early on with Spark Perks, being able to message - if you recall, in Canada, there was a lot of product disruption in the beginning. So, there wasn't - product availability was a big issue. So, we, of course, accelerated with Spark Perks, the ability to notify our Spark Perks members that, hey, your product is in. You're not going to come to a store and be met with that product. We’ll notify you. You can come pick it up. The factor will reserve it for you, hold it for you. So, that I think is a kind of key difference between what we're doing using the retail platform as a necessary part of that development feedback loop versus what's happening on the outside. Does that make sense?
Aaron Grey
No, it does. And that was really helpful to provide that detail. So, appreciate that helpful color, and I'll go ahead and jump back in the queue.
Operator
[Operator instructions]. We have no further questions at this point. So, I'll hand back over to the team.
Trevor Fencott
Well, thank you very much for joining us today. We look forward to speaking with you again next quarter and please watch the press release. Lots of stuff going on. Thank you very much,
Operator
Ladies and gentlemen, thank you for joining today's call. You may now disconnect your lines.
(See Red & blue comments) ER--->>>Not as much as was hoped for--->>>FIRE & FLOWER ANNOUNCES FISCAL SECOND QUARTER 2021 FINANCIAL AND OPERATIONAL RESULTS--->>>There was a slight QoQ decline
I'm still banking on Couche-Tard knowing what they are doing, and being prepared to do whatever it takes to grow big and fast once they are legally permitted to start operating physical locations in the USA. All we need out of Chuck's entire cannabis bill is passage of the SAFE Banking Act which the US House already overwhelmingly passed bipartisanly. If so then it's off to the races for ACT.
Regarding NASDAQ, I don't know if they mean the 4th calendar quarter or they're own fiscal Q4?
SEPTEMBER, 14, 2021
Fire & Flower is a top cannabis pick, says ATB Capital
THE VALENS COMPANY ENTERS WHITE LABEL PARTNERSHIP WITH FIRE & FLOWER, LEADING CANADIAN CANNABIS RETAILER
https://thevalenscompany.com/press-releases/the-valens-company-enters-white-label-partnership-with-fire-and-flower/
My legalization opinion and FFLWF sets Q2 ER release for before financial markets open on 2021-09-14
I am holding Canopy, Tilray and Verano.
FIRE & FLOWER TO WEBCAST LIVE AT VIRTUALINVESTORCONFERENCES.COM ON SEPTEMBER 9
SEPTEMBER, 07, 2021
Company invites individual and institutional investors, as well as advisors and analysts, to attend real-time, interactive presentations on VirtualInvestorConferences.com
TORONTO, Sept. 7, 2021 /CNW/ - Fire & Flower Holdings Corp. ("Fire & Flower" or the "Company") (TSX: FAF) (OTCQX: FFLWF), today announced that Trevor Fencott, Chief Executive Officer will present live at VirtualInvestorConferences.com on September 9.
DATE: September 9, 2021
TIME: 12:30 p.m. Eastern Standard Time
LINK: https://bit.ly/3ylJi2m
This will be a live, interactive online event where investors are invited to ask the company questions in real time. If attendees are not able to join the event live on the day of the conference, an archived webcast will also be made available after the event.
It is recommended that investors pre-register and run the online system check to expedite participation and receive event updates.
Learn more about the event at www.virtualinvestorconferences.com.
Recent Company Highlights
• Fire & Flower and Hifyre Announce Proposed Acquisition of Potguide
• Fire & Flower Enters California Market as American Acres Completes Name Change to "Fire & Flower U.S. Holdings"
• Fire & Flower Announces Digital Strategy with Wikileaf Asset Acquisition and Creation of New Branded Online Dispensaries
• Fire & Flower Completes Exercise of A-3 Warrants by Alimentation Couche-Tard
About Fire & Flower
Fire & Flower is a leading, technology-powered, adult-use cannabis retailer with more than 85 corporate-owned stores in its network. The Company leverages its wholly-owned technology development subsidiary, Hifyre Inc., to continually advance its proprietary retail operations model while also providing additional independent high-margin revenue streams. Fire & Flower guides consumers through the complex world of cannabis through education-focused, best-in-class retailing while the HifyreTM digital platform empowers retailers to optimize their connections with consumers. The Company's leadership team combines extensive experience in the technology, cannabis and retail industries.
Through the strategic investment of Alimentation Couche-Tard Inc. (owner of Circle K convenience stores), the Company has set its sights on global expansion as new cannabis markets emerge and is poised to expand into the United States when permitted through its strategic licensing agreement with Fire & Flower U.S. Holdings upon the occurrence of certain changes to the cannabis regulatory regime.
Fire & Flower is a multi-banner cannabis retail operator that owns and operates the Fire & Flower, Friendly Stranger, Happy Dayz and Hotbox brands. Fire & Flower Holdings Corp. owns all issued and outstanding shares in Fire & Flower Inc. and Friendly Stranger Holdings Corp., licensed cannabis retailers that own and operate cannabis retail stores in the provinces of British Columbia, Alberta, Saskatchewan, Manitoba and Ontario, and the Yukon territory.
To learn more about Fire & Flower, visit www.fireandflower.com.
About Virtual Investor Conferences ®
Virtual Investor Conferences (VIC) is the leading proprietary investor conference series that provides an interactive forum for publicly-traded companies to meet and present directly with investors.
A real-time solution for investor engagement, Virtual Investor Conferences is part of OTC Market Group's suite of investor relations services specifically designed for more efficient Investor Access. Replicating the look and feel of on-site investor conferences, Virtual Investor Conferences combine leading-edge conferencing and investor communications capabilities with a comprehensive global investor audience network.
CAUTIONARY STATEMENT REGARDING FORWARD-LOOKING INFORMATION
This news release contains certain forward-looking information within the meaning of applicable Canadian securities laws ("forward-looking statements"). All statements other than statements of present or historical fact are forward-looking statements. Forward-looking statements are often, but not always, identified by the use of words such as "anticipate", "achieve", "could", "believe", "plan", "intend", "objective", "continuous", "ongoing", "estimate", "outlook", "expect", "project" and similar words, including negatives thereof, suggesting future outcomes or that certain events or conditions "may" or "will" occur. These statements are only predictions.
Forward-looking statements are based on the opinions and estimates of management of Fire & Flower at the date the statements are made based on information then available to Fire & Flower . Various factors and assumptions are applied in drawing conclusions or making the forecasts or projections set out in forward-looking statements. Forward-looking statements are subject to and involve a number of known and unknown, variables, risks and uncertainties, many of which are beyond the control of Fire & Flower , which may cause Fire & Flower 's actual performance and results to differ materially from any projections of future performance or results expressed or implied by such forward-looking statements. Such factors, among other things, include: final regulatory and other approvals or consents; fluctuations in general macroeconomic conditions; fluctuations in securities markets; the impact of the COVID-19 pandemic; the ability of the Company to successfully achieve its business objectives and political and social uncertainties.
No assurance can be given that the expectations reflected in forward-looking statements will prove to be correct. Although the forward-looking statements contained in this news release are based upon what management of the Company believes, or believed at the time, to be reasonable assumptions, the Company cannot assure shareholders that actual results will be consistent with such forward-looking statements, as there may be other factors that cause results not to be as anticipated, estimated or intended. Readers should not place undue reliance on the forward-looking statements and information contained in this news release. Additional information regarding risks and uncertainties relating to the Company's business are contained under the headings "Risk Factors" in the Company's Annual Information Form dated April 29, 2021 and "Risks and Uncertainties" in the management discussion and analysis for the thirteen weeks ended May 1, 2021 filed on its issuer profile on SEDAR at www.sedar.com . The forward-looking statements contained in this press release are made as of the date of this press release, and the Company does not undertake to update any forward-looking statements that are contained or referenced herein, except in accordance with applicable securities laws.
No stock exchange, securities commission or other regulatory authority has approved or disapproved the information contained herein.
SOURCE Fire & Flower Holdings Corp.
BC considering cannabis consumption lounges
Preliminary talks between the province and cannabis industry are underway, says UBCM
By Kathryn Tindale
Published August 26, 2021
Cannabis consumption lounges could be coming to British Columbia.
In a statement Wednesday, the Union Of BC Municipalities (UBCM) explains the province is looking into the possibility of allowing cannabis consumption spaces.
“The BC Cannabis Secretariat plans to engage broadly with key stakeholders, including UBCM’s Cannabis Policy Technical Working Group, in the fall, with formal public and stakeholder engagement in 2022,” reads the statement.
The province is in the midst of discussions with the cannabis industry in regards to developing the farmgate program, set for 2022. At the same time, B.C. is having preliminary talks about recreational consumption spaces at farmgate sites.
B.C.’s current cannabis laws don’t allow for consumption spaces, whether it’s lounges, tasting rooms or special events. UBCM says it has brought up this issue before as part of its work to “inform the development of the provincial non-medical cannabis framework.”
In 2017, UBCM expressed support over developing consumption spaces in licensed establishments.
“Cannabis cultivators have emphasized that the viability of farmgate sales would be limited without the ability to offer tourism and hospitality experiences to attract visitors,” reads the statement. “There has also been increasing interest in non-medical cannabis consumption spaces from cannabis, tourism and hospitality sectors as a means to help support economic recovery and increase the competitiveness of the legal cannabis market.”
Any policy change would continue to focus on the province’s priorities of public health and safety, protecting children and youth, road safety as well as reducing the illicit weed market. Along with those principles, UBCM notes the following measures must be met:
• prohibit indoor smoking and vaping in public establishments;
• prohibit minors in cannabis consumption spaces;
• address drug-affected driving;
• prevent involvement of organized crime;
• discourage co-use of cannabis and alcohol; and
• require local and Indigenous government recommendations prior to the province authorizing cannabis sales.
Indoor cannabis consumption lounges aren’t allowed in Canada. However, some spaces have been operating outside laws for decades, including Vancouver’s New Amsterdam Cafe.
Non-profit compassion society the Victoria Cannabis Buyers Club deems its on-site consumption space as essential to its operations, but it temporarily shut down the space during the pandemic.
Provincial and territorial regulations, as well as municipal bylaws, currently restrict consumption lounges in most jurisdictions.
Ontario and the City of Edmonton have looked into allowed consumption lounges, but those wouldn’t include smoking or vaping.
An Ontario café has found a way to run an open-air consumption lounge that still abides by the province’s smoking regulations.
On the other hand, Alberta allowed a recent exemption in The Tobacco, Smoking and Vaping Reduction Act which made it possible for indoor cigar lounges to open but not cannabis consumption café.
South of the border, cannabis consumption lounges are allowed in multiple states and some cities.
Wednesday is the deadline to submit comments on a draft Senate bill to federally legalize marijuana
Senators Flooded With Input On Federal Marijuana Legalization Bill
https://www.marijuanamoment.net/senators-flooded-with-input-on-federal-marijuana-legalization-bill/
Published 3 days ago on September 1, 2021
By Kyle Jaeger
Wednesday is the deadline to submit comments on a draft Senate bill to federally legalize marijuana, and feedback has flooded in from a broad array of advocates and industry stakeholders.
While legalization proponents have widely celebrated the introduction of the Cannabis Administration and Opportunity Act (CAOA), they have some suggestions for improvement—principally as it concerns issues of social equity, licensing, tax policy and interstate commerce.
Senate Majority Leader Chuck Schumer (D-NY), Senate Finance Committee Chairman Ron Wyden (D-OR) and Sen. Cory Booker (D-NJ) are the lead sponsors of the legislation, and after releasing a draft version of the measure in July, they opened a public comment to receive input on what will be a revised measure the senators plan to formally introduce.
Pro-reform organizations like NORML, Marijuana Policy Project (MPP), National Cannabis Industry Association (NCIA) and Hemp Roundtable made their voices heard—and while they generally applauded the senators’ work to end federal cannabis prohibition, they had some recommendations for revisions. Prohibitionist groups also weighed in with thoughts about the proposal can be changed to better reflect their concerns with the overall policy of legalization.
Here’s an overview of the public comment that the senators have received on their marijuana legalization bill:
Marijuana Justice Coalition
The Marijuana Justice Coalition—which counts among its membership the ACLU, Center for American Progress, Drug Policy Alliance, Human Rights Watch, Leadership Conference on Civil & Human Rights, MoveOn, Students for Sensible Drug Policy and United Food and Commercial Workers International Union—sent a joint letter on the legalization proposal.
It said that the “regulatory approach taken by the CAOA is generally modeled on the federal approach taken to regulate alcohol and tobacco,” and while the draft measure “includes critical elements to end federal criminalization and to undo and repair many of the harms resulting from criminalization, it seeks to regulate cannabis like a vice, meaning a consumer product with potential harms to public health and huge economic potential.”
The coalition recommended “an approach [to reform] that does not just include reparative justice, health equity, and community reinvestment as a subset of a larger policy reform, but rather an approach where these components are the primary goal.”
“As we move forward, it is necessary that the Senate work alongside the House, as well as the Marijuana Justice Coalition and other key stakeholders, to ensure we build a bill that is greater than the sum of our parts. We encourage the Senate to hold a hearing on the issue of federal cannabis reform this year in order to inform our work on this bill moving forward.”
NORML
The consumer-focused group’s comments largely center on the need to help repair the harms of prohibition for those who have been criminalized over cannabis, ensure that there are regulations in place to prevent the corporate consolidation of the industry and protect the infrastructure of existing state markets.
The organization also surveyed advocates and included its findings in its comment letter. Seventy-three percent of respondents said including provisions to expunge past records is either very or somewhat important to them, for example. And 68 percent said the legislation should end drug testing for cannabis.
“For too long, the criminalization of cannabis has been a tool used to disrupt communities and foster distrust of law enforcement,” the letter says. “It is our sincere hope that your team will be successful in collaborating with your colleagues and other good-faith stakeholders to ensure that the impending shift in federal policy takes great strides toward rectifying this situation by advancing comprehensive reform that is centered in science, evidence, and rational thought.”
Justin Strekal, political director of NORML, added that the “CAOA draft represents a thoughtful path forward toward ending federal marijuana criminalization.”
Marijuana Policy Project (MPP)
MPP stressed in its letter that while federal legalization is necessary, the rollout should be thoughtful and gradual, giving deference to states so as to avoid jeopardizing efforts to promote equity in the industry.
“While we are enthusiastic about the goals of the CAO Act Discussion Draft, we believe the regulatory aspects need significant clarification and revision to avoid unintended consequences,” Karen O’Keefe, state policies director for MPP, wrote. “Our two major areas of concern are: the possible upending of state licensing and regulatory systems—driving sales underground—and the impact on medical cannabis access, including for those under the age of 21.”
The group also called for more robust provisions to provide relief for those impacted by marijuana criminalization and dedicate more tax revenue to communities hardest hit by prohibition.
MPP additionally proposed policies aimed at protecting medical cannabis patients and dispensaries, including by eliminating any federal tax on medical marijuana.
“The vast majority of Americans support legalizing cannabis for adults,” O’Keefe wrote. “Congress must work to swiftly end federal cannabis prohibition through an approach that starts with a framework of deference to states and includes a slow transition, avoids burdens that will drive the market for cannabis products back underground, and stops destroying lives—disproportionately those of Black and Brown Americans—over a plant that is safer than alcohol.”
National Cannabis Industry Association (NCIA)
NCIA said that it solicited feedback on the draft legalization bill from stakeholders large and small to inform its comments.
It discussed testing standards for cannabis products, interagency regulatory coordination, access to federal aid for marijuana businesses, the need to allow states to set retail sales limits and more.
“Given your demonstrated focus on engaging with the people most directly impacted by cannabis policy reform, we hope the breadth and depth of our feedback will enable you to enact sound legislation which fosters the growth of a thriving and equitable legal cannabis industry,” the organization said. “NCIA is committed to creating a vibrant legal industry that can sustain thousands of well-paying jobs while responsibly serving adult consumers and medical patients who rely on cannabis for relief.”
“That this bill looks to create restorative justice and to consider the complexities of how communities were negatively and disproportionately impacted by cannabis prohibition is of the utmost importance, and is greatly appreciated. In order to achieve this, we are encouraged that this discussion draft will result in the continued dialogue that is necessary to ensure that individual states do not continue to perpetuate illicit markets.”
U.S. Cannabis Council (USCC)
USCC, like other organizations, told the senators that it feels the Treasury Department’s Alcohol and Tobacco Tax and Trade Bureau (TTB) should be the primary regulators for the cannabis industry.
It also noted that the complexity and diversity of marijuana production in states requires “a new model of taxation, at rates that do not fuel the illicit market.”
Further, USCC said that federal legislation should account for legal obstacles in state markets and ensure that there’s a more gradual, transitionary process after a given state legalizes marijuana before being subject to federal rules that could disrupt social equity goals.
“We are fully aligned with the sponsors’ goals and applaud their leadership and careful consideration,” Steven Hawkins, CEO of USCC, said in a statement. “Cannabis prohibition in America is coming to an end, and the draft legislative text provides a road map for transitioning to a more just, equitable and prosperous future, particularly for emerging and social equity businesses and those directly impacted by cannabis prohibition.”
“At the end of the day, the detailed policy conversations taking place around the CAO Act should not distract from its historic nature. We support the leadership and vision of the sponsors and look forward to ongoing discussions and engagement to advance this vital legislation.”
Students for Sensible Drug Policy (SSDP)
SSDP said that the drug war “has inflicted incalculable harm on marginalized communities—particularly communities of color,” and that war” weaponized cannabis over the last 50 years with disgustingly successful results.”
The organization said it appreciates the senators’ work to correct these issues, but it did offer some proposed revisions, including preventing the criminalization of people under 21 for marijuana. It further recommended eliminating restrictive language on who could qualify for federal relief after legalization is enacted.
“While fueling the public health crisis of mass incarceration, marijuana prohibition targeted the foundation of [marginalized] communities, leaving countless youth without guidance, an incalculable amount of economic loss, and millions of families suffering the loss of loved ones,” SSDP said in its comments. “The time has long since past to put this nightmare to an end.”
Americans for Safe Access (ASA)
ASA, which focuses on access for medical cannabis patients, touched on a number of prompts that the senators said they were especially interested in, such as appropriate ways to measure potency, agency responsibilities for regulating the marijuana market and the composition of a federal advisory board on cannabis.
Much of the group’s comment letter centers are ensuring that patient access to cannabis is not negatively impacted by federal regulations.
The organization also made recommendations for the legislation to address the denial of federally assisted housing to people who use cannabis in compliance with state laws and encourage the U.S. Department of Health and Human Services and U.S. Department of Veterans Affairs (VA) to “develop a cannabis physician education curriculum for VA and civilian physicians.”
American Trade Association for Cannabis and Hemp (ATACH)
ATACH said that one of its primary concerns is giving regulatory authority over cannabis to Food and Drug Administration (FDA), and it advised the senators to consider the possible role of TTB within the market.
Michael Bronstein, president of ATACH, further explained that the comments address “the need for increased recognition and understanding of the interaction with existing state-level regulatory frameworks, the treatment of hemp and CBD, and taxation policy.”
Like several other organizations, ATACH said the rollout process for federal regulations should be gradual to prevent undue burdens on existing state markets.
“ATACH is thankful for the dedication of the sponsors for taking these historic next steps and appreciates the opportunity to continue the dialogue regarding appropriate federal rates and tax structure, and how they interact with existing state and local taxes,” Bronstein said.
Coalition for Cannabis Policy, Education, and Regulation (CPEAR)
“The draft bill represents a pivotal moment for the cannabis industry and an opportunity for stakeholders to inform a pathway towards responsible federal cannabis regulation that is rooted in science, evidence and data, ensures public health and safety standards, and secures fair market access including for small and minority-owned businesses,” CPEAR, which comprised largely up of alcohol and tobacco companies, said.
The group submitted comments that include recommendations on developing regulations that curb the illicit market, respecting state cannabis markets and providing “meaningful economic opportunities for small and minority-owned businesses.”
“Cannabis holds an important place in American history and society today as much as it will have an important place in the future,” CPEAR said. “It is critical that any attempt to craft and implement federal guidelines is done so with a holistic approach, led by science and data, but considerate of criminal justice, social equity, and public health. CPEAR appreciates the opportunity to be a resource to the Sponsoring Offices as this legislative effort continues to evolve.”
Colorado Gov. Jared Polis (D)
Last week, Polis sent his letter to the Senate sponsors of the reform bill that urged them to pass incremental cannabis banking and tax reform first before moving forward with the comprehensive legislation to end prohibition.
The governor said he’s supportive of CAOA—but he insisted that there are more modest and practical steps that should be taken first to support state-legal markets and protect businesses.
“I am thrilled that you are bringing forward a long-term, comprehensive solution that deschedules cannabis while enhancing social equity pathways,” he wrote. “I hope that you will first focus your efforts on the two biggest barriers to the success of the cannabis industry: banking and IRS Code Section 280E.”
That latter statute has precluded state-legal marijuana businesses from making federal tax deductions that are available to other traditional industries.
Colorado Attorney General Phil Weiser (D)
The attorney general of Colorado last week sent a letter asking congressional leaders to ensure that small marijuana businesses are protected from being overtaken by Big Tobacco and other major industries as federal cannabis reform legislation advances.
Weiser wrote that his state is “heartened” to see efforts on Capitol Hill to end federal cannabis prohibition and create a regulatory framework that still empowers states to make their own policy decisions. But he expressed concerns about large corporations potentially gobbling up the industry if preventative steps aren’t taken.
Ensuring that small businesses are empowered to participate in the marijuana industry is a major priority, the attorney general argued. And, therefore, the official said a national market should be rolled out in thoughtful way to prevent large corporations from overtaking the industry.
“If a national market is not rolled-out carefully and in stages, large companies, particularly existing tobacco-focused companies, will be able to move into new markets immediately, displacing and pushing out smaller players,” he wrote.
Students for Sensible Drug Policy
Hemp Roundtable
The hemp advocacy group provided senators with some tips for how it thinks CAOA could be improved. It provided five recommendations to that end:
Open an additional pathway for the sale of hemp extracts like CBD as food and beverage additives.
Expand protections from just CBD to all non-intoxicating hemp derivatives and cannabinoids.
Allow all forms of safety evaluations permitted by law to be used, not just limit manufacturers to new dietary ingredient notifications (NDINs).
Provide a more comprehensive process of determining potential daily serving limits.
Ensure separate regulatory pathways for non-intoxicating hemp and intoxicating cannabis products
“The legislative prospects of the CAOA are still uncertain, but as legislation makes its way through both houses of Congress, we are working very hard to make sure that the details are reflective of the best interests of the hemp and CBD industries,” the group said.
The Parabola Center
The Parabola Center, a newly formed group that is working to inform legalization legislation federally and at the state-level with the intent of promoting social justice-centered reforms, has been actively monitoring reform efforts in Congress. And it previously recommended changes to a House legalization bill that cleared the chamber last session and has been reintroduced this year.
In its comment letter to the senators, the organization emphasized the importance of creating “a legal cannabis sector that lifts us out of a long history of systemic racial and economic oppression stemming from prohibition and into a fair, open, and competitive market that is part of a new framework focused on justice and restorative practices.”
Parabola expressed concern over the rapid consolidation of state-legal marijuana industries, and it said that members have observed “large current operators jockeying to dominate the market in various states and regions.”
It said that, as written, CAOA could thwart progress states have made toward promoting social equity in the marketplace. But there are steps that can be taken to avoid that issue.
“Our goal is to avoid irreversible market consolidation, and instead create a gradual approach to national legalization that favors an ecosystem of small businesses over a handful of excessively large ones. In short, our proposed changes to CAOA allow regulating agencies to collect data, monitor states, and develop expertise. That knowledge and expertise should then be used to create fair and equitable rules for everyone – and in the meantime prevent the formation of corporate oligopolies in the cannabis sector and closely-related ancillary industries.”
Some of the principal recommendations that Parabola shared with the senators include 1) take more concrete steps to incentive states to maintain equitable markets by, for example, tying federal funding to “defined justice benchmarks,” 2) outline a more gradual path for interstate commerce and 3) prohibit vertical integration and ensure that anti-competition provisions are included in the legislation and 4) prevent large tobacco companies from participating in the marijuana industry.
Marijuana prohibitionists have also weighed in on the legalization proposal.
Smart Approaches To Marijuana (SAM)
“While we applaud Senate Majority Leader Schumer, as well as Senators Booker and Wyden, for their focus on exploring ways to mitigate the harms that have been perpetuated on vulnerable communities, full commercial legalization of today’s highly potent marijuana will only deepen these harms,” Kevin Sabet, president of SAM, argued.
“Decriminalization of minor marijuana possession and expungement of previous records was a key part of President Joe Biden’s platform and should be the path forward, but we cannot let the interests of the for-profit marijuana industry and its investors cloud the discussion,” he said. “Much as we have done with COVID, we must heed the science and be cautious with normalizing and promoting marijuana use.”
SAM said in its letter that while it would prefer not to federally legalize cannabis, its scientific advisory board has several recommendations if comprehensive reform is to be enacted. It wants a 10-15 percent cap on THC concentrations in marijuana products, a ban or significant restrictions on advertising and a prohibition on “flavored or child-friendly products.” There is some common ground on one proposal: both SAM and several advocacy organizations feel that Big Tobacco and Big Alcohol should be prevented from monopolizing the market.
Community Anti-Drug Coalitions of America (CADCA)
In a call-to-action campaign, CADCA encouraged members to submit a pre-written letter to the senators that expresses concern about the commercialization of cannabis.
The letter says that the “CAOA purports to be about decriminalizing marijuana,” but it would “totally legalize the cultivation, production, distribution and sale of marijuana, thus totally commercializing a new addictive and harmful substance.”
Next steps
It’s unclear how long after the comment period ends that the bill will be finalized, formally filed and referred to committee. But Schumer has said on multiple occasions that he intends to bring the proposal to the floor “soon.”
See schedule: Cannabis Industry Investor Conference: Company Executives Present September 8th & 9th
Cannabis Company Executives share vision, answer questions live at VirtualInvestorConferences.com
NEWS PROVIDED BY
VirtualInvestorConferences.com
Sep 02, 2021, 08:35 ET
NEW YORK, Sept. 2, 2021 /PRNewswire/ -- Virtual Investor Conferences in partnership with KCSA Strategic Communications today announced the agenda for the upcoming Cannabis Industry Virtual lnvestor Conference. Individual investors, institutional investors, advisors and analysts are invited to attend. The two-day program begins at 11:30 AM ET on Wednesday, September 8th.
REGISTER NOW AT: https://bit.ly/2WFxX0e
It is recommended that investors pre-register and run the online system check to expedite participation and receive event updates. There are no fees to log-in, attend the live presentations or ask questions.
Phil Carlson, Managing Director of KCSA Strategic Communications said, "Our 15th virtual conference with the OTC Markets has generated significant interest from both investors and cannabis companies to where we again have extended the conference to two days. We look forward to having some of the prominent global players in the cannabis industry present their story to the investment community."
September 8th Agenda:
Eastern
Time (ET)
Presenting Company
Ticker(s)
11:30 AM
Innocan Pharma Corp.
(OTCQX: INNPF| CSE: INNO)
12:00 PM
MariMed Inc.
(OTCQX: MRMD)
12:30 PM
The Valens Company Inc.
(OTCQX: VLNCF | TSX: VLNS)
1:00 PM
Nova Cannabis Inc.
(OTCQB: NVACF | TSX-V: NOVC)
1:30 PM
InMed Pharmaceuticals Inc.
(Nasdaq: INM)
2:00 PM
Vibe Growth Corp.
(Pink: VIBEF | CSE: VIBE)
2:30 PM
1933 Industries Inc.
OTCQB: TGIFF | CSE: TGIF
September 9th Agenda:
Eastern
Time (ET)
Presenting Company
Ticker(s)
10:00 AM
IM Cannabis Corp.
(NASDAQ: IMCC | CSE: IMCC)
10:30 AM
NewLake Capital Partners, Inc.
(OTCQX: NLCP)
11:00 AM
Aleafia Health Inc.
(OTCQX: ALEAF | TSX: AH)
11:30 AM
InterCure Ltd.
(NASDAQ: INCR | TSX: INCR.U)
12:00 PM
Verano Holdings Corp.
(OTCQX: VRNOF | CSE: VRNO)
12:30 PM
Fire & Flower Holdings Corp.
(OTCQX: FFLWF | TSX: FAF)
1:00 PM
SLANG Worldwide Inc.
(OTCQB: SLGWF | CSE: SLNG)
1:30 PM
Clever Leaves Holdings Inc.
(NASDAQ: CLVR, CLVRW)
2:00 PM
Australis Capital Inc.
(OTCQB: AUSAF | CSE: AUSA)
2:30 PM
Lowell Farms Inc.
(OTCQX: LOWLF | CSE: LOWL)
3:00 PM
Flower One Holdings Inc.
(OTCQX: FLOOF | CSE: FONE)
3:30 PM
Sugarbud Craft Growers Corp.
(OTCQB: SBUDF | TSX-V: SUGR)
4:00 PM
Greenrose Acquisition Corp.
(OTCQX: GNRS, GNRSU, GNRSW)
To facilitate investor relations scheduling, for more information about the program and to view a complete calendar of Virtual Investor Conferences, please visit www.virtualinvestorconferences.com.
About Virtual Investor ConferencesSM
Virtual Investor Conferences (VIC) is the leading proprietary investor conference series that provides an interactive forum for publicly-traded companies to meet and present directly with investors.
A real-time solution for investor engagement, Virtual Investor Conferences is part of OTC Market Group's suite of investor relations services specifically designed for more efficient Investor Access. Replicating the look and feel of on-site investor conferences, Virtual Investor Conferences combine leading-edge conferencing and investor communications capabilities with a comprehensive global investor audience network.
SOURCE VirtualInvestorConferences.com
Remember that FFLWF is hooked up with H&F--->>>Humble & Fume to Participate in the Beacon Securities Virtual Cannabis Conference 2021 on September 9th
https://mailchi.mp/fc8a65afa456/humble-fume-expects-to-commence-trading-on-the-canadian-securities-exchangeon-june-16th-under-symbol-hmbl-5203422?e=9add306a04
Toronto, Ontario – September 1, 2021 - Humble & Fume Inc. (“Humble” or the “Company”) (CSE: HMBL), a leading integrated cannabis and distribution platform in North America, today announced that Joel Toguri, CEO of Humble, will participate in the Beacon Securities Virtual Cannabis Conference to be held on Thursday, September 9, 2021.
To attend the Beacon Securities Virtual Cannabis Conference, please register here.
For more information about the Beacon Securities conference, or to schedule a one-on-one meeting with Humble’s management, please contact your Beacon Securities representative directly or KCSA Strategic Communications at humbleandfume@kcsa.com.
About Humble & Fume Inc.
Humble & Fume is one of North America's leading cannabis distribution solutions providing customer-centric services and accessories. Humble & Fume works with over 200 leading industry brands and offer more than 10,000 accessories and extract products, and is the only major cannabis industry player to provide a fully integrated cannabis and accessories distribution solution with complete sales, distribution, and trade marketing support. Servicing more than 3,000 clients continent-wide, we can reach 90% of North American customers within 48 hours. Leveraging decades of North American Cannabis industry experience, we are committed to being a leading partner and brand representative by offering a comprehensive portfolio of leading brands and products to head shops, smoke shops, dispensaries, and consumers.
For more information, please visit https://www.humbleandfumeinc.com/.
Forward-Looking Information and Statements
This news release contains "forward-looking information" within the meaning of applicable securities laws relating to the proposed listing of the Company’s common shares on the CSE. Any such forward-looking statements may be identified by words such as "expects", "anticipates", "intends", "contemplates", "believes", "projects", "plans" and similar expressions. Readers are cautioned not to place undue reliance on forward-looking statements. Statements about, among other things, the expected listing and trading on the CSE, is all forward-looking information. These statements should not be read as guarantees of future performance or results. Such statements involve known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements to be materially different from those implied by such statements. Although such statements are based on management's reasonable assumptions, there can be no assurance that the listing and trading of the Company’s shares on the CSE will occur or that, if they do occur, they will be completed on the terms and timing described above. The Company assumes no responsibility to update or revise forward-looking information to reflect new events or circumstances or actual results unless required by applicable law. Readers are encouraged to refer to the Listing Statement for information as to the risks and other factors which may affect the Company’s business objectives and strategic plans.
For more information, please contact:
Company Contact:
Edge Communications Group
Email: invest@humbleandfume.com
Phone: 1 778 400 7894
Investor Contact:
Allison Soss
KCSA Strategic Communications
Email: humbleandfume@kcsa.com
Phone: 212-896-1267
Fire & Flower's potential 51% backer continues to show us how they will grow FFLWF in America once USA legalization occurs. It's their very standard M&A "MO"
Alimentation Couche-Tard to Acquire 35 Porter’s Convenience Stores
Retailer buying select locations in Pacific Northwest
By Greg Lindenberg on Aug. 24, 2021
https://www.cspdailynews.com/mergers-acquisitions/alimentation-couche-tard-acquire-porters-convenience-stores
LAVAL, Quebec — Alimentation Couche-Tard Inc. is moving forward with a binding agreement for the acquisition of convenience stores and fuel retail sites from ARS Fresno LLC and affiliated companies. The transaction includes 35 locations operated under the Porter's brand, mainly in Oregon and western Washington.
The companies said they expect the transaction to close in the second half of September. They did not disclose the price tag.
“We are excited to bring the Porter's stores and team members into the Couche-Tard family. These locations have strong fuel and convenience assets with a track record of growth and a network of experienced employees. With this transaction, we look forward to growing in the Pacific Northwest and making our customers' lives a little easier every day in that region,” said Brian Hannasch, president and CEO of Laval, Quebec-based Couche-Tard.
Alimentation Couche-Tard is No. 2 on CSP’s 2021 Top 202 ranking of U.S. c-store chains by store count. ARS West/American Retail Services is No. 76.
Oceanside, Calif.-based ARS West, also known as American Retail Services, was founded in 2003 and owns and operates convenience stores in Arizona, California, Colorado, New Mexico, Oregon, Utah, Washington and Wyoming, offering Shell branded fuels. Operating both ARS and Porter's branded c-stores, ARS is operated by parent company MYOBZ LLC. About half of the stores are part of a multistore operation agreement, whereby ARS operates the convenience store for the fuel brand but doesn't own the unit. ARS Fresno is based in Carlsbad, Calif.
Couche-Tard’s 26-country global network includes approximately 9,300 c-stores in North America, with more than 7,100 in the United States, primarily under the Circle K and Holiday Stationstores banners, and approximately 2,100 in Canada under the Circle K, Mac’s and Couche-Tard banners. In Europe, under the Circle K and other banners, Couche-Tard operates a retail network in Scandinavia, Ireland, Poland, the Baltics and Russia including more than 2,700 stores and unmanned automated fuel stations. And under licensing agreements, more than 2,200 stores operate under the Circle K banner in 15 other countries and territories (Cambodia, Egypt, Guam, Guatemala, Honduras, Hong Kong, Indonesia, Jamaica, Macau, Mexico, Mongolia, New Zealand, Saudi Arabia, the United Arab Emirates and Vietnam). This brings Couche-Tard’s worldwide total network to approximately 14,200 mostly Circle K-branded c-stores, of which approximately 10,800 offer motor fuel.
Why brands are at the heart of Ireland’s economic recovery
IMO, ACT isn't rushing to own 51% of F&F if they are going to remain exclusively a Canadian entity. That's also why they aren't spending gobs of dollars buying up costly, but less profitable Canadian cannabis retailers compared to their USA kin. They invested in Toronto stores which they had to secure.
IMO, upon USA legalization, de-scheduling of cannabis, and passage of the MOORE and SAFE Banking acts, ACT will exercise their 51% rights and plow into the USA buying up independent retailers all across the USA.
If F&F can get listed on NASDAQ they'll raise so much private equity cash that they will end up being as ubiquitously known as their Circle K brand.
I am rooting for Chuck Schumer to get legalization over the goal line.
ACT is dying for a new growth vehicle.
FAF is pretty prominent, so it would stand to reason that things are improving. They apparently have their eyes on areas a bit more south though. ;)
Hopefully Fire & Flower is benefiting from this --->>> Canada’s weed sales reach $318M record in June
Nova Scotia’s sales jumped more than any other province
https://mugglehead.com/canadas-weed-sales-reach-318m-record-in-june/
By Kathryn Tindale
Published
2 days ago
Canadians have been out-buying themselves in legal weed this year, with another record set in June for retail cannabis sales.
On Friday, Statistics Canada released preliminary retail sales data, which shows a monthly increase of 1.7 per cent to $318.7 million. This is the fourth consecutive month the country hit record weed sales.
The daily spending average for June is about $10.6 million, and Canada could surpass $3.87 billion in weed sales this year.
Canada’s overall retail sales increased 4.2 per cent in June, primarily led by higher sales at clothing stores. Six provinces saw sales go up, with Ontario and Nova Scotia leading the pack at 9.8 per cent and 16.3 per cent respectively.
Weed sales have also gone up in those two provinces.
Nova Scotia’s sales shot up 10.5 per cent to $8.2 million, the largest jump of any province.
Ontario’s sales rose 8 per cent to $120.1 million, while Ottawa leaped 13.3 per cent to $12.1 million. Toronto’s $43.7 million represents a 5 per cent increase.
Canada’s most populous province has continued to add more retail stores, reaching more than 1,000 as of Friday.
Ontario Cannabis Store
@ONCannabisStore
Aug 20
You can now shop at over 1000 Authorized Cannabis Retailers across Ontario, owned and operated by your local buds. Find a store near you: https://bit.ly/2GZSgh2
https://twitter.com/ONCannabisStore?ref_src=twsrc%5Etfw%7Ctwcamp%5Etweetembed%7Ctwterm%5E1428778948809342978%7Ctwgr%5E%7Ctwcon%5Es1_&ref_url=https%3A%2F%2Fmugglehead.com%2Fcanadas-weed-sales-reach-318m-record-in-june%2F
Large markets dip while weed sales climb in Maritimes and Prairies
Of the four largest weed markets in Canada, Ontario is the only one to bring in higher sales in June.
Alberta’s sales dropped 4.4 per cent to $57.1 million, and Quebec dipped 0.7 per cent to $49.2 million.
Both provinces had cannabis sales steadily increase for most of the year — with the exception of February — before dipping in June.
Sales had been climbing for three months in British Columbia before dropping 4.1 per cent to $44.5 million in June. Vancouver’s sales decreased by 1.4 per cent to $14.4 million. A total of 371 licences have been issued in B.C. so far.
Saskatchewan sold $13 million, up 0.7 per cent from May, and Manitoba’s sales went up 2 per cent to $12.1 million.
It seems the Maritime provinces are faring better in June than the previous month as well.
In addition to improved sales in Nova Scotia, New Brunswick’s went up 3.4 per cent to $6.6 million. Newfoundland and Labrador saw a similar increase of 3.8 per cent to $4.9 million.
Sales for P.E.I and the Yukon haven’t been provided by StatsCan since March.
There weren’t any June numbers for the Northwest Territories either. Nunavut hasn’t had available sales data and currently only has one store.
Canada retail sales data from May has been revised slightly to $313.18 million.
FFLWF has a monster partner.--->>>The Top 100 Convenience Store Chains of 2021
Fire & Flower Enters California Cannabis Market
Convenience-backed company's licensing partner changes name
By Chuck Ulie on Aug. 18, 2021
https://www.cspdailynews.com/cbdhemp/fire-flower-enters-california-cannabis-market
TORONTO — Fire & Flower Holding Corp.’s strategic licensing partner, American Acres Managers, has officially changed its name to Fire & Flower U.S. Holdings and has opened its first Fire & Flower branded store in Palm Springs, Calif.
Fire & Flower is an independent adult-use cannabis retailer that owns and operates the Fire & Flower, Friendly Stranger, Happy Dayz and Hotbox brands. Alimentation Couche-Tard Inc., parent of the Circle K convenience-store brand, in 2019 made a strategic investment in Fire & Flower Holdings Corp., investing about $26 million to obtain a 9.9% ownership interest in Fire & Flower. Through the strategic investment of Couche-Tard., Laval, Quebec, Fire & Flower has set its sights on the global expansion as new cannabis markets emerge.
Fire & Flower, Edmonton, Alberta, announced its strategic entry into the U.S. cannabis market in February 2021 when it signed a licensing agreement with American Acres to license its Fire & Flower brand, store operating system and Hifyre technology platform for dispensaries in California, Arizona and Nevada.
Through this licensing arrangement, American Acres is expanding Fire & Flower's retail footprint in the United States with the rollout of new Fire & Flower stores in targeted, high-growth markets, the company said.
“We have reached a significant milestone for our company as we have officially planted our roots in the U.S. cannabis market through our strategic partner, American Acres,” said Trevor Fencott, Fire & Flower CEO. “Our Hifyre cannabis digital retail and analytics platform has propelled our growth and leadership position in Canada, allowing us to successfully capture consumer buying behaviors and apply predictive and real-time analytics unlike any of our competitors.
“As we have continued to demonstrate the value of our technology through the rapid expansion of our multibanner retail network of over 85 stores throughout Canada, the expansion of our brand and technology into the U.S. is the next step in our evolution,” he continued. “We are pleased to now be delivering the same omnichannel, convenience-oriented cannabis retail experience to U.S. consumers and pave the way for the future of cannabis retail in the U.S as legislation continues to develop.”
In connection with the licensing agreement with American Acres, Fire & Flower received an option exercisable to acquire American Acres at a discount to fair market value. The company anticipates that the acquisition will occur upon the federal legalization of adult-use cannabis in the United States or when otherwise permitted by the policies of the Toronto Stock Exchange or any other stock exchange on which the company's securities are listed for trading.
FIRE & FLOWER ENTERS CALIFORNIA MARKET AS AMERICAN ACRES COMPLETES NAME CHANGE TO "FIRE & FLOWER U.S. HOLDINGS"
One new item I missed while camping at LG last week. It's very exciting.
AUGUST, 10, 2021
https://investors.fireandflower.com/news/news-details/2021/Fire--Flower-Enters-California-Market-as-American-Acres-Completes-Name-Change-to-Fire--Flower-U.S.-Holdings/default.aspx
TORONTO, Aug. 10, 2021 /CNW/ - Fire & Flower Holdings Corp. ("Fire & Flower" or the "Company") (TSX: FAF) (OTCQX: FFLWF), today announced that its strategic licensing partner, "American Acres Managers" ("American Acres"), has officially changed its name to "Fire & Flower U.S. Holdings" and has opened its first Fire & Flower branded store in Palm Springs, California located at 4810 E Camino Parocela, Palm Springs, California.
Fire & Flower Palm Springs Cannabis Store - (c) 2021 Fire & Flower Holdings Corp. (CNW Group/Fire & Flower Holdings Corp.)
(Read the release and see the picture at the link above)
Fire & Flower announced its strategic entry into the U.S. cannabis market in February 2021 when it signed a licensing agreement with American Acres to license its Fire & Flower brand, store operating system and Hifyre™ technology platform for dispensaries in California, Arizona and Nevada. Through this licensing arrangement, American Acres is expanding Fire & Flower's retail footprint in the U.S. with the rollout of new Fire & Flower stores in targeted, high-growth markets to deliver best-in-class technology and retail functionality to U.S. cannabis consumers.
"We have reached a significant milestone for our Company as we have officially planted our roots in the U.S. cannabis market through our strategic partner, American Acres," stated Trevor Fencott, Chief Executive Officer of Fire & Flower. "Our Hifyre cannabis digital retail and analytics platform has propelled our growth and leadership position in Canada allowing us to successfully capture consumer buying behaviors and apply predictive and real-time analytics unlike any of our competitors. As we have continued to demonstrate the value of our technology through the rapid expansion of our multi-banner retail network of over 85 stores throughout Canada, the expansion of our brand and technology into the U.S. is the next step in our evolution. We are pleased to now be delivering the same omni-channel, convenience-oriented cannabis retail experience to U.S. consumers and pave the way for the future of cannabis retail in the U.S as legislation continues to develop."
In connection with the entering into of the licensing agreement with American Acres, Fire & Flower received an option exercisable to acquire American Acres at a discount to fair market value. The acquisition is anticipated to occur upon the federal legalization of adult-use cannabis in the United States or when otherwise permitted by the policies of the Toronto Stock Exchange or any other stock exchange on which the Company's securities are listed for trading.
Comments & Questions--->>>FIRE & FLOWER ANNOUNCES EXPANDED DIGITAL STRATEGY WITH WIKILEAF ASSET ACQUISITION AND CREATION OF NEW BRANDED ONLINE DISPENSARIES
AUGUST, 04, 2021
ACT is down 19% since they executed their 90¢ warrants.
In the mean time, ACT can't be happy with the PPS action.
That makes sense. This has certainly been a very interesting time. It could go so many different directions.
IMO, USA legalization isn't the fait accompli I thought it was 6 months ago.
But Chuck's comment period concludes on or about Labor Day.
Legalization may pick up steam and the dems attention if the bipartisan and reconciliation infrastructure packages pass by then.
If that happens, expect reddit to jump back in on cannabis.
In that case I want more FFLWF because the thought of legalization will push anticipation of ACT's commitment to do more USA cannabis M&A's.
Acquisitions are ACT's SOP.
I find it interesting that the chart on Ihub and on the investor page on couche tard’s investor page do not look alike to me, anyone have a reason for that?
So would it be better to buy faf now or wait till couchetard’s price drops due to their spending for acquisition? I am in the same quandary with canopy growth and constellation. I have no doubt both these companies will do very well. I am seeking the right timing. When a company is a takeover target the one buying wants the best price. They will intentionally drive down the target. The bigger company’s price goes down when they spend money on the new asset so do I buy conopy and faf now to have the price pushed down? Or wait till couchetard and constellation buy them and get the whole package and a dividend and the growth of the green future?
New from a FFLWF partner --->>> Humble & Fume Launches FUME, a Cannabis Extracts Brand Delivering a Pure and Flavorful Cannabis Experience
FUME has pioneered a proprietary extraction process that removes terpenes from the plant without the use of solvents, guaranteeing a pure, true-to-strain product
I expect these new products to appear in FFLWF's stores. - FUNMAN
TORONTO, July 15, 2021 – Humble & Fume Inc. (“Humble”) (CSE: HMBL), a leading integrated cannabis distribution platform in North America, announced today the launch of FUME, a cannabis extracts brand delivering a pure and flavorful cannabis experience. FUME products are dedicated to the high frequency, discerning cannabis user seeking access to a wide range of benefits from cannabis.
“FUME is at the forefront of cannabis innovation and is passionate about pushing the limits of extracts to create pure and flavorful concentrates,” said Joel Toguri, CEO of Humble. “Unlike most products available in Canada, FUME’s production process uses solventless terpene extraction of the cannabis plant to deliver highly differentiated, natural flavor profiles to our line-up of vapes. FUME is the only extractor in Canada to use this proprietary technique in market, giving consumers a ‘true to flower’ experience and natural plant benefits comparable to smoking cannabis in its traditional form.”
Humble also announced the release of two new FUME products:
Mango ZKS Full Spectrum Pax Pod is a small batch grown, premium vape with an uplifting fresh mango flavor. The proprietary solventless terpene extraction is paired with a low and slow CO2 extraction to capture all the terpenes and cannabinoids, crafted to deliver a flavor and experience identical to smoking the flower.
Hash Rosin 24K Gold is hand-crafted using single source, craft-grown flower to produce a light citrus flavor and a true indica experience when smoked or vaped.
These new products will play a critical role in the development of FUME’s brand extension TR Signature, which features small batch, craft grown strains that are hand crafted into premium extracts for limited edition drops. The TR Signature line of cannabis vapes, and concentrates are tailored to Canada’s most discerning cannabis connoisseurs and are available in select retailers in Ontario.
“Despite the fact that Canada remains ahead of the U.S. as it pertains to the legalization of cannabis, it lags behind in terms of the offering of natural and specialized cannabis concentrates. That said, demand for high quality, pure and innovative concentrates is on the rise; it is estimated that vapes and concentrates will command 18% of the Canadian market by the end of 2021[1]. FUME is well positioned to capitalize on this trend, and we expect to capture our fair share of this under-saturated segment of the cannabis market,” Mr. Toguri said.
About FUME
FUME is an extraction company focused on creating full-spectrum extracts that offer an authentic experience and uncompromising quality. Our mission is to push the boundaries of solventless and solvent-based extraction to pursue the best full-spectrum extracts our cultivars have to offer. The Brantford, Ontario-based company provides end-to-end production and distribution of market-ready products delivering premium and true-to-flower cannabis experiences.
For more information, please visit https://www.fumeextracts.com/.
[1] Industry Report: Cannabis Market Projections for US and Canada: April 2021
About Humble & Fume Inc.
Humble & Fume is one of North America's leading cannabis distribution solutions providing customer-centric services and accessories. Humble & Fume works with over 200 leading industry brands and offer more than 10,000 accessories and extract products, and is the only major cannabis industry player to provide a fully integrated cannabis and accessories distribution solution with complete sales, distribution, and trade marketing support. Servicing more than 3,000 clients continent-wide, we can reach 90% of North American customers within 48 hours. Leveraging decades of North American Cannabis industry experience, we are committed to being a leading partner and brand representative by offering a comprehensive portfolio of leading brands and products to head shops, smoke shops, dispensaries, and consumers.
For more information, please visit https://www.humbleandfumeinc.com/.
Forward-Looking Information and Statements
This news release contains "forward-looking information" within the meaning of applicable securities laws relating to the proposed listing of the Company’s common shares on the CSE. Any such forward-looking statements may be identified by words such as "expects", "anticipates", "intends", "contemplates", "believes", "projects", "plans" and similar expressions. Readers are cautioned not to place undue reliance on forward-looking statements. Statements about, among other things, the expected listing and trading on the CSE, is all forward-looking information. These statements should not be read as guarantees of future performance or results. Such statements involve known and unknown risks, uncertainties and other factors that may cause actual results, performance or achievements to be materially different from those implied by such statements. Although such statements are based on management's reasonable assumptions, there can be no assurance that the listing and trading of the Company’s shares on the CSE will occur or that, if they do occur, they will be completed on the terms and timing described above. The Company assumes no responsibility to update or revise forward-looking information to reflect new events or circumstances or actual results unless required by applicable law. Readers are encouraged to refer to the Listing Statement for information as to the risks and other factors which may affect the Company’s business objectives and strategic plans.
For more information, please contact:
Company Contact:
Edge Communications Group
Email: invest@humbleandfume.com
Phone: 1 778 400 7894
Investor Contact:
Allison Soss
KCSA Strategic Communications
Email: humbleandfume@kcsa.com
Phone: 212-896-1267
Here Are The Full Details Of The New Federal Marijuana Legalization Bill From Chuck Schumer And Senate Colleagues
Cannabis makes it to the Senate. It's going to be a BIG money maker for the FEDs.
Published 4 hours ago on July 14, 2021
By Kyle Jaeger
The first draft of a long-anticipated Senate bill to federally legalize marijuana has been released—and its sponsors are asking for public input to further improve the legislation before it is formally introduced.
Senate Majority Leader Chuck Schumer (D-NY), Senate Finance Committee Chairman Ron Wyden (D-OR) and Sen. Cory Booker (D-NJ) are unveiling the draft at a press conference on Wednesday. It’s an extensive bill, titled the Cannabis Administration and Opportunity Act, that weighs in at 163 pages.
The main features of the legislation largely align with what advocates and stakeholders expected. It would federally deschedule cannabis, expunge prior convictions, allow people to petition for resentencing, maintain the authority of states to set their own marijuana policies and remove collateral consequences like immigration-related penalties for people who’ve been criminalized over the plant.
“Cannabis prohibition, a key pillar of the failed war on drugs, has caused substantial harm to our communities and small businesses, and especially for communities of color,” Wyden said. “It’s as simple as this: Senators Booker, Schumer and I want to bring common sense to the federal government, end prohibition and restore the lives of those hurt most and set them up for opportunity.”
The bill would also impose a federal tax on marijuana products and put some of that revenue toward grant programs meant to support people from communities most impacted by prohibition who want to participate in the industry.
Further, the legislation would transfer regulatory authority over cannabis from the Drug Enforcement Administration (DEA) to the Food and Drug Administration (FDA), the Bureau of Alcohol, Tobacco, Firearms and Explosives (ATF) and the Alcohol and Tobacco Tax and Trade Bureau (TTB).
There’s a lot of ground to cover on the proposal. And while the senators are confident that it addresses key concerns from stakeholders, advocates, public health officials and law enforcement alike, they recognize that this is not the final form the bill will take. To that end, a public comment period is open until September 1.
“The War on Drugs has been a war on people—particularly people of color. The Cannabis Administration and Opportunity Act aims to end the decades of harm inflicted on communities of color by removing cannabis from the federal list of controlled substances and empowering states to implement their own cannabis laws,” the senators said in a summary of the bill that was shared with Marijuana Moment. “Descheduling cannabis is a critical step towards achieving justice for those targeted and hard hit by the War on Drugs. But that alone is not enough.”
The bill is multifaceted and deals with a large number of complex issues that have arisen under the umbrella of federal prohibition.
The basic components
Perhaps the most immediately consequential provision would be a requirement that the attorney general to remove marijuana from the Controlled Substances Act within 60 days of the bill’s enactment.
But it’s important to keep in mind that this legislation—like other federal legalization bills moving through Congress—would not make it so marijuana is legal in every state. The proposal specifically preserves the right of states to maintain prohibition if they want. It stipulates, for example, that shipping marijuana into a state where the plant is prohibited would still be federally illegal.
However, the measure would make it clear that states can’t stop businesses from transporting cannabis products across their borders to other states where the plant is permitted.
FDA would be “recognized as the primary federal regulatory authority with respect to the manufacture and marketing of cannabis products, including requirements related to minimum national good manufacturing practice, product standards, registration and listing, and labeling information related to ingredients and directions for use,” according to the summary.
Meanwhile, TTB would have jurisdiction over marijuana tax and trade practices. That would include cannabis tax revenue collection, tax law enforcement and tracking and tracing of marijuana products.
“The agencies would have dual jurisdiction related to certain aspects of cannabis product labeling and packaging, advertising, and other consumer information,” the document says.
Social equity
As promised, the senators are including language into the bill that would promote social justice for those who’ve been disproportionately impacted by the war on drugs.
“Communities that have been most harmed by cannabis prohibition are benefitting the least from the legal marijuana marketplace,” the findings section of the bill says, noting that a “legacy of racial and ethnic injustices, compounded by the disproportionate collateral consequences of 80 years of cannabis prohibition enforcement, now limits participation in the industry.”
“Historically disproportionate arrest and conviction rates make it particularly difficult for people of color to enter the legal cannabis market- place, as most States bar these individuals from participating,” it says.
A key barrier for such individuals is the fact that people from communities of color have been most targeted by cannabis criminalization, despite the fact that use is comparable across races. The bill seeks to repair that harm by mandating each federal district to expunge arrests and convictions for non-violent marijuana offenses within one year, and it also allows people who are still under a criminal sentence for cannabis to obtain a resentencing review hearing.
Grants
There would be three grant programs established under the bill.
One would “fund nonprofits that provide services to individuals adversely impacted by the War on Drugs, such as job training, reentry services and legal aid, among other services,” according to the summary. It would be distributed through a new Cannabis Justice Office under the Justice Department.
Another would “provide funding to eligible states and localities to make loans to assist small businesses in the cannabis industry owned by socially and economically disadvantaged individuals” through the Small Business Administration (SBA).
Finally, the Equitable Licensing Grant Program would “provide funding to eligible states and localities to implement cannabis licensing programs that minimize barriers for individuals adversely affected by the War on Drugs.”
“To be eligible for these SBA grants, states and localities must take steps to create an automatic process to expunge criminal records for cannabis offenses and violations for individuals under criminal supervision for cannabis offenses,” the summary says.
Consumers’ rights
People could not be denied federal benefits due to the use or possession of marijuana or for a conviction for a cannabis offense. That includes preventing the revocation of security clearances for federal employees.
However, one component of the new bill that advocates have taken issue with—which has been previously included in past reform legislation—would let agencies “continue to include cannabis for purposes of drug testing of Federal employees.”
Additionally, the measure would authorize physicians with the U.S. Department of Veterans Affairs (VA) to issue recommendations for medical cannabis to veterans. That’s another topic that’s been the focus of separate, standalone legislation in recent sessions.
Taxes and permits
A gradual federal tax rate would be imposed on marijuana sales, starting at 10 percent for the first year after the bill’s enactment and the first, subsequent calendar year. Then it would be increased annually, rising from 15 percent to 20 percent to 25 percent. Starting in the fifth year post-enactment, the tax would be a “per-ounce or per-milligram of THC amount determined by the Secretary of the Treasury equal to 25 percent of the prevailing price of cannabis sold in the United States in the prior year.”
In an effort to support small cannabis enterprises, the legislation says that “small cannabis producers with less than $20 million in sales annually would be eligible for a 50 percent reduction in their tax rate, via a tax credit.”
“Producers with more than $20 million in sales would be eligible for a tax credit on their first $20 million of cannabis sold annually, with sales above that amount subject to tax at the full rate. Similar to the reduced rates for alcohol producers, certain anti-abuse rules would limit the tax benefit only to products produced or substantially modified by the small producer, in order to limit the benefit received by large producers and to prevent a double-benefit.”
The legislation also lays out a structure for how marijuana businesses will be approved and regulated. For example, companies selling taxable marijuana products, or cannabis at the wholesale level, would require Treasury Department approval. Marijuana producers would further need to be registered with FDA.
A cannabis permit “may be denied or revoked if the premises is inadequate to prevent tax evasion or diversion, operation of the premises do not comply with federal or state law, or an applicant fails to disclose material information or makes a false statement,” the summary says. “In addition, a cannabis permit application may be denied if the applicant has been convicted of a disqualifying offense.”
“For these purposes, a disqualifying offense is a felony criminal offense that occurred after enactment of this Act and within the preceding three years related to cannabis diversion or cannabis tax evasion. An applicant may apply to the Cannabis Products Advisory Committee for a waiver with respect to a disqualifying offense if the Committee finds that the applicant has established sufficient evidence of mitigation or rehabilitation and fitness to maintain cannabis operations in compliance with state and federal law.”
FDA would have “authority over cannabis products in intrastate commerce,” the summary says. Under the agency, a new Center for Cannabis Products and a Cannabis Products Regulatory Advisory Committee would be created.
Cannabis products would not be regulated as dietary supplements, but the bill would “authorize manufacturers of cannabis products to make claims about the benefits of their products in the same manner that manufacturers of dietary supplements do today.”
It would, however, stipulate the FDA must create a regulatory pathway for CBD to be marketed as a dietary supplement.
The bill would further require “owners and operators of establishments that are engaged in the manufacture, preparation, compounding, or processing of a cannabis product to register their establishments with FDA upon first engaging in such activities and annually thereafter.” The agency would “issue regulations pertaining to distribution of cannabis products and good manufacturing practice.”
Another provision would mandate that FDA create a program to “expedite the development and review of applications for drugs containing cannabis that are manufactured by a small businesses owned and controlled by socially and economically disadvantaged individuals that operate in the cannabis industry.”
Under the legislation, the Treasury secretary would be compelled to establish a track-and-trace regime to prevent illicit distribution of cannabis products. And the official would also be mandated to start a program to facilitate “the lawful delivery of hemp that inadvertently exceeds the permissible THC limitations for hemp to a permitted cannabis enterprise for the proper processing of such products.”
The Consumer Product Safety Commission would be authorized to issue regulations setting standards for special packaging of cannabis products.
Federal law would be amended to explicitly state that SBA programs and services available to marijuana businesses and companies that work with them.
Although the bill does not specifically mention banking, its provisions ending the federal prohibition of marijuana would automatically remove any penalties that financial institutions currently potentially face as a result of working with licensed cannabis businesses because those operations would no longer be federally illegal.
Federal studies
The bill further directs the Government Accountability Office (GAO) to facilitate a number of studies into marijuana policy.
The office must conduct a “review of federal laws, regulations, and policies, to identify additional areas in need of change, including a study on replacing the term ‘marijuana’ and ‘marihuana’ with ‘cannabis’ through the U.S. Code and regulations,” the summary says. It must also study the demographics of those with federal cannabis convictions.
GAO would also have to evaluate the “societal impact of legalization” in states with recreational marijuana laws on the books.
Additionally, the Bureau of Labor Statistics (BLS) would need to compile demographic data on “business owners and employees in the cannabis industry.” Those figures could help inform social justice efforts, as there’s been widespread criticism of the industry over a lack of diversity despite advocates’ push for equity.
The U.S. Department of Health and Human Services (HHS) would be required to work with the National Institutes of Health (NIH) on ways to promote research into cannabis impacts. And meanwhile, HHS would be mandated to collaborate with the U.S. Department of Transportation (DOT) on data collection for marijuana-impaired driving while also supporting research into “an impairment standard for driving under the influence of cannabis.”
More details
The senators’ bill would establish a federal standard to make it so only those 21 and older can purchase recreational marijuana products. Each state that currently allows adult-use cannabis maintains that age restriction.
In order to reduce illegal diversion, the legislation would cap cannabis sales, stating that adults could only buy up to 10 ounces at a time.
Vaping delivery system products that contain added natural or artificial flavors would be banned under the proposal.
A newly created definition of “cannabis” would be created under federal law, but it would retain the exception for hemp that now exists.
The senators want feedback on the draft bill
Here’s an overview of some of the main points that the are seeking comment on:
-Measuring the potency of cannabis products, the overlap of definitions for hemp and marijuana, regulations for synthetic THC, regulatory responsibilities for various federal agencies and FDA funding.
-Coordinating federal and state law enforcement responsibilities for cannabis, state “primacy regarding cannabis regulation” and interstate commerce.
-Balancing efforts to reduce barriers to entry to the marijuana industry while mitigating the influence of illicit cannabis operators.
-Determining whether cannabis products should go through a premarket review before being marketed.
-How to deal with international treaty obligations with respect to marijuana.
Interested parties are encouraged to submit comments on these and other issues to Cannabis_Reform@finance.senate.gov by September 1.
The bill has been highly anticipated
Advocates have been anxiously awaiting this legislation, which Schumer has repeatedly said was coming “soon” after he, Wyden and Booker first pledged in February that it would be ready “in the early part of this year.”
Since then, the majority leader has been making the case for reform everywhere from the Senate floor on 4/20 to a cannabis rally in New York City.
The three senators formally started their efforts on the legalization bill by holding a meeting earlier this year with representatives from a variety of advocacy groups to gain feedback on the best approach to the reform.
Schumer made a point in March to say that it will specifically seek to restrict the ability of large alcohol and tobacco companies to overtake the industry. Instead, it will prioritize small businesses, particularly those owned by people from communities most impacted by prohibition, and focus on “justice, justice, justice—as well as freedom,” he said.
He also urged voters to reach out to their congressional representatives and tell them that “this is long overdue.”
Activists are encouraged by the introduction of the lengthy and detailed proposal.
“The days of federal prohibition are numbered,” NORML Executive Director Erik Altieri said in a press release. “These actions by Senate Majority Leader Schumer and Senators Booker and Wyden reflect the fact that the supermajority of Americans are demanding that Congress take action to end the cruel and senseless policy of federal prohibition.”
“It is time for legislators to comport federal law with the laws of the growing number of states that have legalized the plant, and it is time for lawmakers to facilitate a federal structure that allows for cannabis commerce so that responsible consumers can obtain high-quality, low-cost cannabis grown right here in America without fear of arrest and incarceration,” he said.
Shaleen Title, CEO of the Parabola Center, said that the bill’s filing “sends a clear signal to the states to keep making progress on cannabis policy.”
“We’re encouraged by the senators’ inclusive process and intend to join other equity advocates in offering ways for the federal government to protect and build on the states’ progress toward social justice in cannabis policy,” she said. “Millions of people fought for an end to prohibition. We see this as an opportunity to stop the arrests and to shape the national marketplace for legal marijuana to be open to all, not just a wealthy few.”
Meanwhile, a separate House bill to federally legalize marijuana and promote social equity in the industry was reintroduced in May.
The legislation, sponsored by Judiciary Committee Chairman Jerrold Nadler (D-NY), was filed with a number of changes compared to the version that was approved by the chamber last year.
The Marijuana Opportunity, Reinvestment and Expungement (MORE) Act passed the House but did not advance in the Senate under GOP control. But this time around, advocates are optimistic that the policy change could be enacted now that Democrats run both chambers and the White House, and as more states are moving to enact legalization.
President Joe Biden, however, is an outlier within the Democratic Party, maintaining an opposition to adult-use legalization despite the widespread and increasingly bipartisan public popularity of the reform. It remains to be seen whether the president—who campaigned on more modest pledges to decriminalize cannabis possession, expunge prior records and respect state legalization laws—would stand in the way of a comprehensive policy change by threatening to veto the bill that’s ultimately produced.
Wyden, who under the chamber’s new Democratic majority assumed the top spot on the Senate Finance Committee—where the new legislation is likely to be referred once formally introduced—recently said his goal will be to “end the prohibition and come up with sensible tax and regulatory oversight at the federal level.”
He said in February that “it’s not enough in my view to just end cannabis prohibition,” and “I think we need to restore the lives of people who’ve been hurt most by the failed war on drugs and especially black Americans.”
All three senators—Schumer, Wyden and Booker—have in past years introduced marijuana legalization bills that never got hearings or votes.
Separately, a proposal to federally deschedule marijuana that does not include social equity components was recently filed by a pair of Republican congressmen.
Read the full text of the new federal marijuana legalization bill below:
Scroll down at this link to see the actual bill:
https://www.marijuanamoment.net/here-are-the-full-details-of-the-new-federal-marijuana-legalization-bill-from-chuck-schumer-and-senate-colleagues/
Thanks Funman.
Looking for a lift in the sector as we go forward.
GL!
Will all Canadian cannabis boats be lifted by OGI's revenue beat? --->>> OrganiGram stock gains 6% on revenue beat amid higher recreational cannabis sales --->>> The news is significant because the highlight is "higher adult-rec-use!!!! That may be a trend seen across the whole industry because of fewer Coronavirus restrictions during the quarter, and more overall store openings.
FYI, OGI isn't one of the bell-weather cannabis companies. It's not the dog that wags the tail. It's the tail that follows. That could be a great indicator that retail stores will also post higher revenues.
The ER FFLWF last posted included an 18% uptick in YOY comparisons for stores open at least 12 months.
If OGI's revenue beat is an accurate indicator of the overall adult-rec-use industry trend, it may ultimately be very good news for FFLWF.
"My-fingers-are-crossed". - FUNMAN
Q3 net revenue grew 39% Q/Q to $20.3M and 13% Y/Y, primarily due to higher adult-use recreational net revenue of $16.8M, up 10% Y/Y and 40% sequentially, and higher wholesale revenue.
https://investors.organigram.ca/organigram-reports-third-quarter-fiscal-2021-results
Your thought 'Diogenes of Sinope' ? --->>> Humble & Fume Announces Exclusive Sales Distribution Partnership with TREC Brands
Alimentation Couche-Tard Focuses on Optimizing Its Portfolio
The company is still seeking buyers for 300-plus stores that are no longer a strategic fit.
By: Melissa Kress
Senior News Editor
Followers
|
10
|
Posters
|
|
Posts (Today)
|
0
|
Posts (Total)
|
481
|
Created
|
02/27/19
|
Type
|
Free
|
Moderators |
Volume | |
Day Range: | |
Bid Price | |
Ask Price | |
Last Trade Time: |