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Prompted by legal challenges over the state's recreational cannabis licensing process, Minnesota's regulatory agency says the issuance of permits will be delayed for months, quashing expectations of the market opening in early 2025.

Under a new timeline, licenses will be issued via lottery sometime between May and June, the Minnesota Office of Cannabis Management (OCM) announced Wednesday.

The agency initially was expected to conduct a licensing lottery on Dec. 2, 2024.

In October, the regulator said it expected adult-use regulations to be finalized by the first quarter of 2025 followed by the launch of sales.

Now, the OCM is ending the license preapproval process in favor of a standard licensing process for both social equity and general applicants beginning early next year.

"This step allows the office to prevent delays to the market launch due to ongoing litigation and retain some benefit to social equity by allowing applicants for license preapprovals to move into this new round," the agency said in a Wednesday news release.

The decision comes a few weeks after Ramsey County District Court Judge Stephen Smith halted the licensing lottery for prospective businesses after some rejected applicants filed a lawsuit claiming the process lacked clear criteria and prohibited appeals. Read story >

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Insights on growing & manufacturing cannabis

Infused beverage executives seek path forward for hemp, marijuana

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As the cannabis industry anticipates rescheduling and a new Farm Bill, the question of how hemp and marijuana can coexist is central to the conversation.

Manufacturers of hemp-derived THC drinks have carved out a niche in liquor stores and some bars, offering consumers a growing alternative in the adult-beverage market.

Some in the industry view hemp as a more viable business opportunity than marijuana, citing lower production costs and fewer regulatory barriers.

Kyle Neathery, CEO of Alabama-based hemp processor Samson Extracts, said companies will need to choose between marijuana and hemp unless they can separate their production processes, which would require a massive manufacturing space.

"Most regulators are going to require a separation of the operation," he said. "They don't want marijuana mixing with hemp."

Neathery also noted that growing marijuana is more expensive than farming hemp.

He said marijuana companies often base their business models on the price of flower when a market first opens and prices are high, but they don't account for prices plunging a few years later.

"They don't build models for bad pricing," Neathery said. "Hemp is not spoiled by bad pricing." Read story >

3 cannabis genetics companies to merge, will be led by Barney's Farm CEO

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Cannabis seed producers Barney's Farm Genetics, I Love Growing Marijuana (ILGM) and Sensi Seeds are merging under a deal that will close in early 2025.

Derry Brett, founder of Barney's Farm Genetics, will lead the newly formed group as CEO, although "each company will retain its own CEO and management," a spokesperson for the companies told MJBizDaily.

The spokesperson declined to disclose any financial details involved in the deal.

While the three operators will be merged under the same company, the brands will remain distinct, the spokesperson told MJBizDaily, adding that the new business will be based in the United States.

Barney's Farm and Sensi Seeds currently are headquartered in Amsterdam. ILGM is based in Modesto, California. Read story >

Marijuana lab operator calls for expanded testing requirements and enforcement

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Zachary Eisenberg, the chief operating officer of San Francisco-based Anresco Laboratories and chair of the Cannabis Science Section of the American Council of Independent, had his lab join others in researching potency inflation.

The investigations confirmed suspicions about the practice occurring - even in regulated markets with mandatory testing protocols – and also found that many cannabis products were contaminated with pesticides.

Later, Anresco and another California lab were tapped by the Los Angeles Times and WeedWeek to assist in their investigation of cannabis products cleared for sale by state-regulated testing labs.

Eisenberg spoke with MJBizMagazine about pesticides and potency manipulation, what can be done to solve these problems and the backlash he's faced for being a whistleblower. Read story >

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R E S O U R C E S

• MJBizMagazine Nov/Dec issue: Breaking Through to Profitability
• Make informed decisions with MJBiz Factbook – Get data
• MJBiz Free Cannabis 101 Course – Sign up and start learning
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