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Curaleaf Backed Out of West Coast Markets, Almost Kicked Out of NJ 

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The cannabis industry has had its fair share of highs and lows over the last decade, as evidenced by patterns we’re seeing with some major players in the pot world. Take Curaleaf, for example, one of the largest dispensary operators in the United States. They recently decided to pull out of the most mature and well-established cannabis markets in the country – California, Colorado, and Oregon – and shortly after, had to fight to keep their license to sell recreational weed in New Jersey. What is going with Curaleaf? And what’s happening to the cannabis industry?  

Who is Curaleaf? 

Curaleaf is a well-known medical and recreational cannabis company in the United States, founded in 2010 and  headquartered in Wakefield, Massachusetts. They operate a chain of dispensaries across 17 states, with hundreds of thousands of patients nationwide. Curaleaf is publicly traded on the Canadian stock exchange (OTCQX: CURLF).  

Their valuation has fluctuated quite a bit over the last few years, with their highest numbers in the first two quarters of 2021. However, it has been on the steady decline since with shares dropping to their lowest point (under $3) in March and April of this year.  

Since January, Curaleaf has been trying to implement different measures to cut costs and get back in the black. These include mass layoffs (part of the reason they’re having issues in New Jersey), dispensary closures, a 10% payroll reduction across the board, and consolidating cultivation and processing operations in Massachusetts to a single facility in Webster. 

“These adjustments were necessary for the future success and profitability of the business, and were made as a result of recent legislative decisions, price compression, and lack of enforcement of the illicit market,” the company said. 

Why did they pull out of the West Coast markets? 

In January, Curaleaf announced that they would be closing most of their dispensaries in California, Colorado, and Oregon as part of their “continued effort to streamline business operations.” As of now, they only have one remaining store open in Oregon (on Fremont Street in Portland), and none in California or Colorado.  

Not only are they shuttering retail stores, but they are closing all production and cultivation facilities in those states as well – again, the only one left is in Massachusetts. Curaleaf cited a “difficult operating environment” in these states, due to massive oversupply of flower which has led to a dramatic drop in wholesale prices, and competition from the black market. These problems where consistent in all three states they plan on leaving. California is infamous for these issues, Colorado has seen prices plummet in the last few years, and Oregon is one of the most oversupplied markets in the country.  

Company representatives state that they will “place a laser focus on cash generation in its core revenue-driving markets moving forward.” CEO Matt Darrin says Curaleaf will place greater efforts on expanding operations in newer markets across the US. “We’re seeing the growth opportunities and the greatest opportunities in markets that may not be the markets where some of that took place years ago. So as the industry matures, we are focused on the markets that are generating strong profits and are very stable markets.” 

What happened in New Jersey? 

Last week, it was announced that Curaleaf would be kicked out of New Jersey’s recreational cannabis market over “labor practices”. Basically what this means, is that NJ officials voted against renewing Curaleaf’s license to grow and sell weed because the company did not properly notify the state’s Cannabis Regulatory Commission about employee layoffs. The company was in the process of shutting down two of its NJ locations. 


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But in an interesting change of heart, The Board of the New Jersey Cannabis Regulatory (CRC) reversed course, and voted during an emergency meeting on Monday to reapprove Curaleaf’s adult-use recreational cannabis license renewal. So, their license that was set to expire on April 21st, will be reinstated, and their recreational stores in Bordentown, Bellmawr, and Edgewater Park can continue operations.  

Curaleaf’s dispensaries have generated more than $5 million in tax revenue dollars for the state of New Jersey, according to the company’s chief compliance officer, James Shorris. He also added that the “company has bargained in good faith with New Jersey employees who have joined the United Food and Commercial Workers Local 360.”  

That being said, the company has had a spotty record with labor issues in the past. Last year, the National Labor Relations Board issued a citation to Curaleaf for refusing to work out a deal with unionized workers in Chicago, Illinois and Phoenix, Arizona. Many states are implementing laws that require companies to bargain with employees if the majority of them want to discuss unionizing.  

The future of cannabis  

Although legalization is overall a good thing (people getting arrested for cannabis possession is ridiculous, I think we can all agree to that), the bottom line is, the industry is not generating nearly as much revenue as anticipated, and businesses are struggling. Pretty much everyone in the supply chain including cultivators, extractors, dispensary owners, and even those operating ancillary businesses like software and technology are feeling the pain of this stressed market.  

But the problem is not demand, people are still buying weed in the same numbers, if not more so, than in years prior. There’s been a huge uptick in middle-aged to older Americans who use cannabis products as well. So it’s not that people are losing interest in weed, although the culture has changed dramatically, it’s because of numerous different elements that make it difficult for weed business to make a profit – mainly taxes and the still-thriving black market.  

Cannabis businesses are notoriously overtaxed. Then factor in the many other costs and fees associated with operating a weed business, and it translates to higher prices for consumers. Higher than what they would find from a street dealer or unlicensed (black-market) dispensary. And because these unregulated distributors have access to all the same products, sometimes better ones, than legal dispensaries, that makes for an extremely hostile and competitive environment for any trying to operate an above-board cannabis business.  

The are quite a few other issues with today’s cannabis market, such as oversupply of flower – to the point that growers are having trouble selling off much of their stock, difficulty advertising on prominent search engines and social media sites, problems finding property and real estate for their business endeavors, banking/financing struggles, and the list goes on.  

In response, big players in the industry are trying to cut costs in any way possible; from mass layoffs and salary cuts, to store closures, and even taking shortcuts on the production side of things. Investors are taking note as well, and they are growing increasingly reluctant to invest in cannabis-related enterprises. Summarized, the cannabis industry is not faring well at the moment, and these cost-cutting measures are likely to continue well into 2024.

Final thoughts  

Although we can’t base everything on one single company, the fact that they, and other big names in the industry are voluntarily backing out of the OG cannabis markets, is very telling. It tells us that if state governments don’t get a handle on the taxes and fees charged, and unnecessary hoops they make cannabis business owners jump through, the black market will continue to outpace the legal one.

Welcome readers! Thanks for hanging out with us at Cannadelics.com; an independent publication that brings you new and ongoing stories in the cannabis and hallucinogen spaces. Come ’round regularly so you don’t miss out on anything; and subscribe to our Cannadelics Weekly Newsletter, to ensure you’re never late to get the news.



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Astronauts to Test Cannabis Growth in Outer Space

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NASA‘s recent collaboration with the International Space Research Consortium to launch a mission testing the cultivation of cannabis in the microgravity of space has stirred a whirlwind of interest and controversy across the globe. This initiative aims to unravel the mysteries of how low-gravity environments affect plant growth, with cannabis serving as the pioneering subject. According to Dr. Alfred Terra, the esteemed lead scientist spearheading the project, the conditions in space present an “unparalleled opportunity” to push the boundaries of our understanding of botany and its applications in medicine and agriculture beyond Earth’s confines.

This ambitious endeavor aims to shed light on the potential for utilizing space-based agriculture to support long-duration space missions and future colonization efforts on other planets. The choice of cannabis as a research subject is particularly intriguing due to its complex biochemical makeup and its increasing use in medicinal therapies on Earth. Insights gained from how cannabis adapts to space’s harsh environment could lead to breakthroughs in growing food and medicinal plants in extraterrestrial colonies.

Despite the scientific excitement surrounding the mission, the announcement has been met with its share of skepticism and criticism. Some members of the scientific community and the general public question the allocation of resources toward cannabis research in space, arguing that more pressing scientific and exploratory questions merit attention aboard the International Space Station (ISS). These critics call for a focus on projects that directly contribute to our understanding of space travel’s impacts on human physiology or further our knowledge of the cosmos.

However, the space agencies involved have been quick to highlight the broader implications of this research. They argue that studying cannabis growth in microgravity could offer invaluable insights into plant biology, stress responses, and the possibility of cultivating a variety of crops in space, which are crucial for the long-term sustainability of space exploration and eventual human settlement on other planetary bodies.

Amidst the debates over the mission’s merits and the speculation spurred by its announcement date—April 1st—lies a deeper curiosity about the future of space exploration and the role of innovative agricultural research in that journey. The timing has led some to question the announcement’s authenticity, pondering whether it could be an elaborate April Fool’s Day jest aimed at sparking discussion or simply a coincidence that has amplified the public’s fascination with the project.

Whether viewed as a bold step into the future of space agriculture or a controversial choice of research focus, the mission symbolizes a growing intersection between space exploration and the quest to understand and utilize biological processes in unprecedented environments. As the launch date approaches and preparations continue, the world watches, eager to see what insights this venture might unfold about cannabis, plant science, and the potential for life beyond Earth.

*** This article is an April Fool’s Day joke ***



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A Hiring Wave on the Horizon

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The U.S. cannabis industry is on the brink of a significant hiring wave in 2024, spurred by a 12% increase in legal sales in 2023, reaching $29 billion. This growth, alongside potential federal reclassification of cannabis, is expected to create up to 100,000 new jobs, particularly in the retail sector, where 93% of companies plan to expand their workforce. The Vangst 2024 Cannabis Salary Guide highlights an industry ready to bounce back from previous economic stagnation, with a strong emphasis on experience, adaptability, and cultural fit in prospective employees.

The cannabis sector is poised for a massive expansion in employment opportunities in 2024, following a year of economic challenges and layoffs. This optimistic forecast comes from Vangst’s latest industry salary guide, which anticipates a hiring boom driven by increased legal cannabis sales and the potential for federal rescheduling. The anticipated move to reclassify cannabis to Schedule III could significantly reduce tax burdens, increase company valuations, and attract more investors, according to Viridian Capital Advisors.

Retail cannabis companies are at the forefront of this hiring surge, with nearly all surveyed indicating plans to bolster their teams in response to growing demand and market expansion. The focus is not just on filling positions but on finding candidates who can navigate the evolving legal and market landscape, prioritize cultural fit, and possess strong communication skills over traditional qualifications.

Salaries in the cannabis industry have also seen an uptick, with top-end wages growing by 4.7%, outpacing the national non-cannabis average. However, the sector still trails behind others in offering comprehensive benefits packages, a gap that affects employee satisfaction and retention. The demand for health insurance and better work-life balance is clear among job seekers in the cannabis space.

Diversity and inclusion are gaining traction within cannabis company hiring practices, with a significant portion of companies implementing strategies to create a more inclusive workforce. The industry’s employment of veterans and individuals with disabilities highlights its diverse nature, but there remains room for improvement.

Why It Matters: This hiring wave marks a pivotal moment for the cannabis industry, signaling a shift towards recovery and growth after a period of stagnation. It underscores the industry’s resilience and its potential to contribute significantly to the economy through job creation and increased sales.

Potential Implications: The anticipated hiring boom in the cannabis industry could lead to wider acceptance and normalization of cannabis use, further influencing policy changes and societal attitudes. Additionally, the focus on diversity and inclusion could set a precedent for other sectors, promoting a more inclusive workforce across industries.

Source: Green Market Report



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86% of Californians Support Legal Cannabis Markets

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A recent survey conducted by the California Department of Cannabis Control (DCC) and FM3 Research reveals that a significant majority of Californians, 86%, believe it’s important to purchase cannabis from legal markets. The survey also indicates growing support for Proposition 64 and highlights the need for consumer education on legal cannabis procurement.

California, a pioneer in legalizing medical cannabis in 1996 and later adult-use cannabis in 2016, has developed into the world’s largest cannabis market. The DCC’s Real California Cannabis Campaign, aimed at guiding consumers to licensed dispensaries, commissioned FM3 Research to survey over 1,000 California adults to gauge their attitudes towards the state’s cannabis market. Key findings include:

  • 62% view Proposition 64 positively, suggesting increased support for cannabis reform.
  • 86% of respondents stress the importance of buying cannabis from legal sources.
  • 72% feel consumers should ensure they’re purchasing from licensed retailers.
  • Despite the legal market’s size, illegal sales remain prevalent, with two-thirds of cannabis sales in 2022 coming from the illicit market.
  • The California Unified Cannabis Enforcement Taskforce (UCETF) reported significant seizures in 2023, including over $312 million in illegal cannabis and 119 firearms, showcasing efforts to combat illegal operations.
  • The survey uncovered education gaps, with 85% of respondents in areas where retail cannabis is banned either misinformed or unaware of local cannabis laws.
  • Opinions on identifying licensed retailers were divided, with 44% finding it easy and 42% finding it challenging.

Why It Matters: This survey underscores the growing acceptance of legal cannabis markets among Californians and the critical role of consumer education in supporting legal operations. It highlights the ongoing battle against illicit sales and the importance of regulatory efforts to ensure a safe, legal cannabis market.

Potential Implications: The findings could influence future cannabis policies in California, emphasizing the need for public education campaigns and stricter enforcement against illegal operations. It also suggests a potential shift in consumer behavior towards supporting legal cannabis sources, which could further legitimize and stabilize the legal market.

Source: High Times



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