California weed recalls

Plus, NCAA “de-penalizes” cannabis

Thursday, June 27, 2024

Good morning. 

Welcome back to our Editor-in-Chief Jeremy from his wedding weekend! Give him a hearty congratulations.

In other news, the New York State Cannabis Control Board met yesterday. One notable absence? Felicia Reid, the acting executive director of the Office of Cannabis Management. You can watch the meeting here

Let’s get to it.

-JB & CB 

This newsletter is 711-words or about a 4.5-minute read.

💡What’s the big deal?

Exposure of dirty weed lead to increase recalls

What happened: California’s Department of Cannabis Control (DCC) issued warnings to the public about more than 20 unsafe cannabis products — a significant increase from previous years — with 24 recalls in the past six months alone, compared to only four in the entirety of 2023. 

Issues cited include mold, pesticides, and inaccurate potency labels. 

Recently, the DCC issued its first mandatory pesticide recall to West Coast Cure for an "Orange Cookies" vape pen contaminated with chlorfenapyr, a pesticide.

Back up: The surge in recalls follows investigations by SFGATE and the Los Angeles Times, revealing widespread issues with cannabis product safety in California. Reports found failures in enforcing safety rules and inadequate testing protocols, allowing contaminated products to reach consumers.

Check out our June 17 newsletter for all the background you might need.   

What they’re saying: “It sounds like nobody’s monitoring the industry,” Lezli Engelking, the CEO of FOCUS, a nonprofit organization developing cannabis regulations, said

Why it matters: The recalls highlight failures in California’s cannabis regulation, raising concerns about consumer safety and the reliability of cannabis products in one of the largest legal markets.

What’s next: The DCC’s actions may lead to stricter enforcement and improved testing protocols to ensure safer cannabis products. The industry and regulators may face increased scrutiny and pressure to enhance safety measures.


Quick hits

NCAA Gives Weed 👍
The NCAA officially removed marijuana from its banned substances list for Division I athletes, following recognition that cannabis is not a performance-enhancing drug. This policy change aligns NCAA rules with those of the World Anti-Doping Agency and eliminates current penalties for cannabis-related violations. Read more

Rules Committee Says ⛔
The House Rules Committee rejected several cannabis-related amendments to the 2025 appropriations legislation, including proposals that would prevent federal agencies from testing job applicants for cannabis use in legal-use states and block border agents from seizing marijuana from state-licensed businesses. Read more

Delaware Protects 🏦s
Delaware state lawmakers passed legislation to protect banks and financial institutions that serve licensed cannabis businesses, bridging the gap between state legalization and restrictive federal banking laws in the face of DE’s emerging legal cannabis industry. Read more.

📈 Deals, launches, partnerships

INVI MindHealth raised a $1.5 million seed round for veteran mental health, and will research psychedelic-assisted therapies. 

Simply Solventless Concentrates Ltd. (SSC) will acquire all shares of CannMart, a subsidiary of Lifeist Wellness Inc. It also announced a non-brokered private placement aimed at raising up to $3.5 million.

📊 Earnings round-up

Christina Lake Cannabis Corp. increased revenue by 56% to $2.99 million CAD in the first quarter of fiscal year 2024. However, the company still reported a net loss of $1.20 million.

📊 Chart of the day

A new UN report highlights that marijuana legalization in the US and Canada is reducing the size of illegal markets and decreasing arrests for cannabis offenses, especially as people arrested for drug possession are more likely to be prosecuted and convicted than those arrested for drug trafficking in many parts of the world.

😮‍💨 One fun thing

The Hall of Flowers, a prominent cannabis trade show, will expand into a public festival this year, September 20-21 at the Sonoma County Fairgrounds in Santa Rosa, California. The event will feature direct-to-consumer sales from California’s top cannabis brands and includes activities like live music, food trucks, and interactive installations.

📰 What we’re reading

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