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Federal Marijuana Rescheduling ‘Does Not Appear To Apply’ To Washington Businesses, State Officials Say

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Marijuana regulators in Washington say the Trump administration’s move to re-regulate cannabis at the federal level “doesn’t appear to apply” to the state’s businesses.

US Department of Justice in April He issued an order that immediately reclassified the state’s licensed medical cannabisas well as marijuana products approved by the Food and Drug Administration (FDA) under Schedule I through Schedule III of the Controlled Substances Act (CSA). A trial scheduled for this month will take place consider marijuana III.

“Washington does not issue licenses to producers, processors or retailers of medical cannabis,” the state’s Liquor and Cannabis Board (LCB) said in guidelines released Tuesday. “Instead, Washington has a single recreational market and within that market producers/processors can manufacture (DOH) compliant products, and certain retailers can sell DOH-compliant products to adult patients and all designated providers.”

“Therefore, Washington cannabis licensees do not appear to qualify as ‘state medical marijuana licensees’ and therefore may not be eligible for registration under the final Rule,” the agency said, referring to the Drug Enforcement Administration (DEA). Registration process for legal marijuana businesses in the state to take advantage of the federal benefits that come with the reform.

That said, the LCB “does not take a position if licensees decide to apply for federal registration,” the guidance continues. “If a licensee is seeking federal registration, we would be interested in learning about their experience and federal decisions.”

However, “based on our analysis, the federal reorganization in its current form does not appear to apply to cannabis licensees in Washington, primarily because of the legal framework governing recreational cannabis,” the LCB said.

The agency emphasized, however, that while it has consulted with the Cannabis Regulatory Association, the National Governors Association and industry stakeholders, its current opinion does not represent Washington’s formal opinion and “may not be our final interpretation as information is evolving and the decision may not rest with the state.”

“We await additional guidance from the federal agencies involved, new or updated federal agency processes and/or other federal procedures,” he said. he saidreferring to the next administrative hearing and Ongoing litigation calls into question the rescheduling of cannabis.

“The LCB recognizes that there are many cannabis growers, processors, and retailers actively involved in the production and sale of medical cannabis in Washington. These businesses may or may not be eligible to use the 280e tax deduction, and may also register with the DEA III. Ultimately, they have no input into whether their licensees meet the criteria for “state medical marijuana licensees,” as that determination can be made unilaterally by the DOJ within the meaning of the Final Rule. to reasonably interpret and determine that Washington cannabis licensees qualify as “state medical marijuana licensees.”

The US Treasury and Internal Revenue Service (IRS) said they plan to issued new tax guidelines for the marijuana industry after reprogramming. The reform will benefit state-licensed marijuana businesses by allowing them to take federal tax deductions that are currently prohibited under IRS Code Section III, known as Section 280E.

In California, regulators recently approved emergency rule changes to the state’s marijuana licensing process. to make it easier for companies to receive benefits In line with the Trump administration’s latest move to federally regulate medical cannabis.

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Entourage Health faces severance claims from dismissed employees

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Entourage Health Corp., an Aylmer, Ont.-based cannabis grower, laid off 53 workers on June 8 without notice, offering only two weeks’ pay in lieu of notice rather than layoffs. More than 40 former employees have since filed complaints with Ontario’s Ministry of Labor, alleging the company violated the province’s Employment Standards Act, which entitles workers with more than five years of service at companies with payrolls of more than $2.5 million to receive 26 weeks of severance pay.

The company is owned by the pension fund of LiUNA, a major private sector union, which became Entourage’s largest lender and shareholder following a series of investments beginning in 2017. Entourage was taken private by an entity related to LiUNA in April 2025. After struggling with debt and unprofitability, the company laid off most of its leisure workers, and lost most of its bank employees to CCAA. protection at the end of June 2026. Its medical cannabis division continues to operate with 22 employees.

Court filings show Entourage owes LiUNA’s pension fund about $240 million. Efforts to sell the company generated little industry interest, leading to a bankruptcy filing. Former employees, including Benjamin Hessel and Gabriela Ayee, say they were blindsided by the sudden layoffs and worry they won’t get back the severance they were owed in the restructuring. A labor attorney noted that workers laid off in bankruptcy typically become unsecured creditors with limited recourse because secured lenders and government creditors are prioritized. The federal Wage Protection Program offers affected workers a one-time payment of up to $9,275. Neither Entourage nor the LiUNA Pension Fund responded to requests for comment.










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Wyoming Attorney General Blocks State Marijuana Rescheduling That Would Be Triggered By Trump’s Federal Reform

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The attorney general of Wyoming has determined that the state will not reclassify marijuana under state law under a federal rescheduling From the Trump administration.

“The Wyoming Legislature has not legalized medical marijuana, adopted a state-licensed medical marijuana regulatory scheme, or agreed to recognize any other state’s medical marijuana licenses,” Attorney General Keith Kautz (R) said Tuesday. “Therefore, making marijuana subject to a state medical marijuana license in Title III of the Wyoming Controlled Substances Act is inconsistent with the police powers previously exercised by the Wyoming Legislature.”

“The question of whether to remove a type of marijuana from Schedule I of the Wyoming Controlled Substances Act is a matter for the Wyoming Legislature and should not be done through the administrative rulemaking process,” he said.

The Legislature, however, previously enacted a law stating that “if a substance is designated, rescheduled, or eliminated as a controlled substance under federal law,” the drug and substance abuse commissioner “must control the substance under this law in the same manner as federal law” within 30 days.

Under state law, the attorney general serves as the drug and substance abuse commissioner and can formally challenge the state’s automatic rescheduling to prevent it from happening, subject to a public hearing, “giving all interested parties an opportunity to be heard.”

Kautz called a hearing in June to consider the issue, and also accepted public comments via email.

“The Commissioner received eight comments by email. Four of the comments expressed support for leaving medical marijuana and marijuana products in Schedule I of the Wyoming Controlled Substances Act. Four of the comments supported leaving medical marijuana and marijuana in Schedule III of the Wyoming Controlled Substances Act. All of the comments, both by email and in person, focused on the important policy considerations surrounding the legalization of marijuana and marijuana products.

According to the Attorney General, “all marijuana products currently approved by the United States Food and Drug Administration are already scheduled under the Federal Controlled Substances Act.” referring to prescription medications such as dronabinol, Cesamet, and Epidiolex. “The Commissioner will continue to appropriately monitor individual substances as they are approved by the United States Food and Drug Administration.”

“After considering all stakeholder comments, the commissioner has determined that all marijuana products, including marijuana subject to the state’s medical marijuana license, will remain in Schedule I of the Wyoming Controlled Substances Act,” Kautz’s announcement reads. “This decision is final unless changed by statute.”

Under an order issued in April by US Attorney General Todd Blanche, marijuana products regulated by a state medical cannabis license were immediately changed from Schedule I to Schedule III of the Controlled Substances Act (CSA). Annex, as well as marijuana products approved by the Food and Drug Administration (FDA).

An an administrative hearing now underway is examining a broader rescheduling of cannabisincluding for recreational products.

In Wyoming, activists have tried unsuccessfully to put it down initiatives to legalize medical cannabis and decriminalize possession of marijuana on the ballot.

State lawmakers have also considered legislation on the issue, but Wyoming remains one of the few states without legal access to medical marijuana.

In 2022, the speaker of the Wyoming House introduced a bipartisan decriminalization bill to remove criminal penalties for possession of small amounts of cannabis and replace the state’s current felony charge with a $100 fine. But that legislation he did not receive a vote Despite the support of top GOP lawmakers.

A bill to legalize and regulate adult cannabis in Wyoming he advanced from a House committee In 2021, but at the end of that session it didn’t move anymore.

A A survey released in 2020 has been found It found that 54 percent of Wyoming residents approve of allowing adults in the state to “legally possess marijuana for personal use.”

Meanwhile, other states without comprehensive medical cannabis programs are also grappling with changes to state marijuana laws that could trigger federal redistricting action.

A The GOP senator from South Carolina, for example, said that “medical marijuana is now legal.” under a trigger law in the state.

In May, the governing bodies The Alabama Department of Public Health voted against federal rescheduling of marijuana after health officials said they need more time to determine how to implement the change at the state level.

Tennessee Governor Bill Lee (R), on the other hand, signed the legislation this session block automatic review that could have legalized medical marijuana Under state law, after federal drug rescheduling.

user photo Carlos Gracia.

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There’s product in the German market you wonder how it got in

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Sascha Mielcar, CEO of Canify AG, inspects all the suppliers the company buys from, retesting each batch and discarding anything out of specification. However, cannabis from other companies is reaching German pharmacies that cannot meet these standards. “There is a market in Germany where you wonder how the product got into it,” says Sascha. The certification standards, he believes, are not being strictly applied.

© Canify

“I don’t like the term GMP cleaning, it’s a complex methodology,” says Sascha. His concern is the microbiological purity of what reaches the patients, a product that clears certification abroad and would not survive the same examination in Germany. Canify only sells flowers that are GMP certified, and Sascha would rather turn away business than release something out of spec.

For repair, Canify uses a GMP validated method. “We don’t revel in repairs, but if we do, we do it through a qualified, validated process,” says Sascha. Others in the market use various methods and claim GMP validation, and Sascha is skeptical of the extent of these standards.

From the early days to the international footprint
Canify was among the first movers in the German market. Founded in 2018, obtained GMP certification in 2021 after three years and huge expenses, trading since the end of 2022, imports, processes and releases products from various countries, including Portugal, Canada, Uruguay, Colombia, South Africa, Lesotho, Spain, Denmark and North Macedonia, for its brands and telemedicine and clinical services on its German soil. Its volume grew tenfold in 2024 and fivefold again in 2025, although price compression means revenue has not grown in line with volume. The company has also announced a merger with MG Health, a Lesotho-based grower and manufacturer with GMP I and II certified facilities, a step that Sascha calls Canify vertically integrated on two continents, and what he believes to be the first fully integrated operator of its kind outside of Canada.

© Canify

Cannabis from a bunker in Nato
The manufacturing site has an unusual history. As cannabis was classified as a narcotic, storage regulations were strict, and Canify built its vault inside a former NATO bunker. “It’s a regular piece of real estate, but it’s quite useful,” says Sascha.

© Canify

In terms of product formats, little has changed. Germany remains a compound market where pharmaceuticals are prepared and the main form factor is still dried flower. “We’re using Stone Age form factors, dried flowers,” says Sascha. He doubts whether edibles are legal in Germany and is wary of vaporizers, where the certification covers the device rather than the cartridge, and there are voices calling for the disappearance of these products from the market. Canify is investing in a fully certified device, closer to an inhaler than a vaporizer, designed for precise dosing and high bioavailability. “Germany remains a composite market, the only real way is to work with pharma,” concludes Sascha.

For more information:
Canify AG
canify.com

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