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North Star Cannabis Consulting Newsletter

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Happy Halloween tomorrow! Tomorrow is also the deadline for license applications to be part of Minnesota’s hemp-derived industry. Though I’ve been fielding tons of questions, I continue to fear that most of Minnesota’s retailers and some manufacturers are not paying attention - setting up a bad situation where OCM enforcement shows up and prohibits non-compliant restaurants, bars, & liquor stores from continuing to sell hemp THC, starting Nov. 1. That’s not good for anyone.

If you are looking to get better-connected in the MN cannabis industry, I can recommend two great events next week: on Wednesday evening (11/5), Bloom magazine is celebrating its first birthday at CannaClub (RSVP here; free); and/or check out the next Smokin’ on the Runway canna fashion show on Sunday (11/9). I’ll be at both; come say high!

Jen Randolph Reise (photo by Angela Knox)

MN CANNABIS UPDATES

Last Chance: Licensing deadline for hemp industry is tomorrow, Oct. 31, at noon

Though OCM is giving a bit more time to make labeling and packaging changes, the licensing deadline for LPHE-Retailer, LPHE-Manufacturer, and LPHE-Wholesaler is tomorrow at noon. See the Hemp-Derived Corner below for more.

OCM Licensing Progress

  • There are now 53 fully licensed microbusinesses, with another 1,148 that have been preliminarily approved.

  • There’s very little change in this chart compared to two weeks ago. I suspect, based on this and other anecdotes*, that OCM has been immensely distracted trying to get the hemp THC industry through licensing.

MN CANNABIS NEWS

Tribal compacts: Two more tribes have signed compacts with the State of MN: the Prairie Island Indian Community, which is home to the Island Pezi dispensary and has been building a huge, beautiful cultivation facility, and the Fond du Lac tribe, which also already has cannabis operations. Read more here and here. This brings the total of tribes who have signed compacts to 4, out of the 10 tribes in Minnesota interested in the cannabis industry.

Jen’s take: This, and cultivators getting open, will help ease the supply shortage that many of the first independent stores open have experienced. I expect supply to significantly ease in the new year.

License re-sales: MJBiz reported on the thriving resale market for Minnesota licenses, originally reported on by Fox 9.

Jen’s take: While I agree that it’s not good for Minnesota that a bunch of out-of-state investors entered the lottery and are now trying to resell those licenses, there are smaller resale transactions that do benefit the market. Specifically, I’ve talked to some people who were unable to acquire a license in the initial round (for example, they were in the lottery and did not get pulled) and want one. There are also folks out there who did apply and now are not able to follow through on their plans, for example due to poor health or investor issues. While a license transfer takes some time and cooperation, it can be done in compliance with Minnesota law.

Good press for Minnesota: Ganjapreneur reported our announcement of the North Star Accelerator Program, which is helping craft cannabis businesses get launched in Minnesota!

Hemp-Derived THC Corner

If you have not yet applied and want to sell, manufacture, or wholesale low-potency hemp edibles in Minnesota, the deadline is tomorrow at noon.

OCM’s final warning email on Tuesday is a pretty good place to start! We’ve also collected resources at our website here.

OTHER CANNABIS NEWS

Wisconsin: Marijuana Moment reports that entrepreneurs are opening hemp THC cafes and the WI legislature finally holds a Medical Cannabis Hearing.

Jen’s take: WI is so far behind MN - they do not even have a legal medical cannabis program- but their total lack of regulation of Farm Bill-legal hemp-derived THC has emboldened an interesting industry. In my experience, that includes quality products and manufacturers - I’m a fan of Oliphant Brewing, among others - but there are also sketchy products for sale widely in a way that is no longer true in MN.

National:

The U.S. is the middle of a debate about hemp-derived THC products. Should they be banned entirely as dangerous? Regulated, like we do in Minnesota?

At the same time, they are receiving huge market acceptance. Huge gas station chain Circle K announced it will sell hemp THC drinks across the nation next year, starting with Florida and the Carolinas. And hemp THC drinks have deep-pocketed allies now - beer and liquor companies are lobbying Congress on behalf of hemp-derived drinks, reports Cultivated, as they see that younger Americans are moving away from alcohol.

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SOME SCIENCE NEWS

A study in JAMA Health found that having access to legal cannabis reduced opioid use in cancer patients. Cultivated Media reported that “the study found that when medical or recreational cannabis dispensaries open in a state, commercially insured cancer patients fill fewer opioid prescriptions and get smaller daily supplies of opioids. The research — based on data from over 3 million insured US adults with cancer — suggests that greater cannabis availability might be linked to reduced opioid use in cancer-related pain management.” Full study here.

And a German pharmaceutical company found that full-spectrum cannabis extract is an effective treatment against chronic lower back pain, New Scientist reports. The German study found just 5% THC eased chronic lower back pain without serious side effects or signs of addiction.

UPCOMING EVENTS

CannaJoyMN Store Events

November events: Balm Making Class, Home Grow Get Togethers, Puff and Paint and Game Nights

Rise & Grind

November 4th (and every Tuesday) - Rise & Grind @ MAC Social Club, Minneapolis

Haunted Smokeout

October 31 - Frosted Lakes & Dabba TC join forces to host The Haunted Smokeout @ Twin Cities

Balm Making

Nov 1st - Learn to make balm for pain relief with green witch curations @ CannaJoyMN, Minneapolis

Canna Club

Nov 5th (and every Wednesday) - Canna Club Happy Hour.

Please note that the weekly Canna Club (which has been hosted at Earl Giles Restaurant & Brewery for several years) is moving temporarily for the holiday season! From Nov. 19 - Jan. 14 we’ll be at Steady Pour, 2125 E. Hennepin Ave Suite 205.

We’ll have more great programming from the Minnesota Craft Cannabis Guild, networking with industry leaders, outdoor consumption area, and more at a cool new site for the holiday season.

Bloom Issue Drop

November 5 - Bloom’s 1st Birthday and Autumn issue drop party @ Earl Giles, Minneapolis.

RSVP requested; free.

Smokin on the Runway

November 9 - Minnesota’s first and only Canna Fashion Show @ Hook & Ladder, Minneapolis

MJBizCon

December 2-5 - Jen is speaking on December 4 about Minnesota, alongside other MN leaders. Use the link below to get 15% off your tickets @ Las Vegas Convention Center

MOCHI MOMENT

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