Hi all,

So much to read in today’s newsletter, let’s get to it.

• Does going vertical make sense in California?
• SCOOP: MedMen sued again

Lots, lots, more,

Alex

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Environmental non-profit Environmental Democracy Project has sued the Colorado-based owners of an Oakland edibles factory for allegedly violating the federal Clean Air Act. 

• The complaint alleges that the facility, owned by Green Sage Management, has been operating up to nine
  18-wheeler-sized diesel generators twenty-four hours a day, seven days a week, since July 2020.
• It claims this is in violation of the federal clean air act since the generators don’t have air quality permits. 
• Green Sage did not immediately respond to a request for comment. The City of Oakland had previously warned Green Sage about the generators.
  KQED
• A federal judge rejected a temporary restraining order to shut down the generators on grounds that they did not pose an immediate threat.

The facility had previously been occupied by Colorado-based Coda Signature, an upscale edibles brand which has since left California.

• It wasn’t clear from a DCC license search who currently occupies the facility.

Van Nuys testing lab Cannasafe said it’s shutting down its sole California lab on account of “lab shopping,” the practice of choosing a testing lab based on its willingness to provide a high potency score.

President Antonio Frazier, who had posted the news on social media, told WeedWeek that some retailers were reluctant to buy flower lower than 25% THC, leading to potency inflation.

• You can now find 50% THC flower, Frazier said, despite that seeming physically impossible.
• Last week the DCC said it’s looking to standardize testing practices statewide to protect public health and consumer confidence.
• It’s accepting public comment until August 2 at publiccomment@cannabis.ca.gov

Meanwhile: Steep Hill’s Arkansas has been sued under the federal racketeering statute for inflating potency. See the complaint here.
Law360

• An executive at Steep Hill Arkansas did not respond to a request for comment.

SCOOP: MedMen sued for back rent

MedMen has been sued by giant Thor Equities for owing $950,000 in back rent on a property in Chicago.  Read the complaint. MedMen declined to comment. It’s the same Thor that just won a $5M judgement for back rent owed by High Times in San Francisco.

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Sacramento:

• The DCC celebrated one year as the state’s top regulator.
  Financial Regulation News
• The L.A.Times endorsed an industry opposed bill that would put bigger warnings on legal product.  
• Law firm Clark Howell shared five bills to watch in the legislature.
• The state Department of Fish and Wildlife documented more than 150 environmental violations in serving 34 search warrants on grows in south Trinity County. 
  Redheaded Blackbelt

Business:

• A former finance director at operator THC Design has sued the company alleging he was fired for refusing to doctor the company’s financials. Owner Ryan Jennemann did not respond to a request for comment.
  Green Market Report
• Legal site JD Supra says California cannabis is likely to face more claims related to Prop 65 which requires disclosure of ingredients on a list of almost 1,000 chemicals known by the state to be dangerous. The rule has long plagued CPG businesses in the state.
• I updated last week’s story about the state’s top 25 flower brands with a statement from Wonderbrett CEO Matt Costa on why the company has seen a loss in market share.
• Grower turned Mendocino Co. regulator Kristin Nevedal discussed the grim climate for growers. 
• Lawyer Omar Figueroa and his team wrote an article for Law360 about California’s cannabis appellations program.
• Meadow posted some highlights from its M&A Summit.
• Planet 13 megadispensary CEO Robert Groesbeck discussed the state of the industry. The company is applying for a consumption license in Vegas.
  Cannabis Business Times

Local:

• Sacramento Co. officials declined to move forward with dispensaries.
  CapRadio
• Eureka (Humboldt Co.) has made it easier to host cannabis events.
  California City News
• Guadalupe city (Santa Barbara Co.) rescinded a dispensary license it issued to Element 7. The company is still in the running for the license.
• Madera’s (Madera Co.) first dispensaries could open as soon as this fall.
  The Business Journal

Nevada:

• State regulators require consumption lounges to have a DUI plan.
  Las Vegas Weekly

Fun and interesting:

• Forbes previewed the activations at this weekend’s Northern Nights Music Festival on the Humboldt/Mendocino border.
• For the first time the California State Fair will feature a cannabis exhibit.
  CBS-SF

Last week we looked at California’s top-selling flower brands. For our new Chart of the Week, here’s another list from data shop Headset. This one’s the state brands with the biggest market share across categories, with a comparison to last year.

Company Milestones:

• Embarc opened Fresno’s second dispensary. The Artist Tree opened the first.
  Fresno Bee
• The Parent Company said Nabis would serve as its distributor. It has self-distributed. 
• A new online marketplace called Flowerhead caters to craft flower lovers.
• Mari y Juana Beverages Co. signed an exclusive agreement with SuLo Distro. 
• Cookies opened its first Missouri location, in St. Louis.
• Symbiotic Genetics Sacramento opens Saturday.
• Presidential added two products to their Moon Rock product line.

Job moves:

• SF-based industry lawyer Marc Hauser, and author of newsletter Cannabis Musings, is leaving law firm Reed Smith to form a consultancy. 

Upcoming:

• Cannabis Business Times is hosting a July 26 webinar on navigating the California market.
• The Orange County Bar Association is hosting a July 18 webinar on cannabis IP.
• The Transbay Challenge IV is set for August 13 in LA.

Awards:

• Dr. Jeff Chen, CEO of Radicle Science, is a finalist for San Diego CEO of the year.

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