The total facility limit has been increased from $30 million to $34 million, certain mandatory prepayments have been removed, and the amendment provides additional working capital to support continued revenue growth.
TORONTO, May 2, 2022 /CNW/ – PRESS RELEASE – The Green Organic Dutchman Holdings Ltd. (TGOD), a sustainable global cannabis company, has announced that it has agreed to amend the terms of the amended and restated credit agreement dated September 29, 2021, as amended between The Green Organic Dutchman Ltd., a wholly-owned subsidiary of TGOD, and its Canadian lender.
The Agent and the Borrower have agreed to enter into the third amendment to the Credit Agreement to, amongst other things: (i) increase the term portion of the credit facility by $4,000,000 to $24,000,000; (ii) amend the EBITDA financial covenant to take effect June 30, 2022; (iii) remove the required $6,000,000 prepayment via funds raised by public issuance of equity securities in the company.; (iv) remove the required $4,000,000 prepayment via funds raised by the sale of HemPoland Sp. Z o.o.; and (v) introduce certain prepayment fees in the combined amount of 2% of any prepayments; subject to the satisfaction of the various conditions set out therein. All other terms of the credit facility will remain the same as before, including the maturity date of June 30, 2023.
“As we continue to grow our market share in the Canadian retail cannabis market, we are seeing opportunities to accelerate our revenue growth profile,” said Sean Bovingdon, CEO of TGOD. “Having immediate access to an additional $4 million in the term facility will allow us the flexibility to explore potential cultivation expansion in B.C. and Quebec and meet consumer demand for TGOD, Highly Dutch and Cruuzy products across the country. Additionally, the relaxation of covenants provides us the ability to hit profitability while maximizing shareholder value.”
The cannabis cloud commerce provider will employ 100 engineers and technical staff in Trivandrum by the end of the year.
SAN FRANCISCO, May 2, 2022 /PRNewswire/ — PRESS RELEASE — Treez, a private company and enterprise cloud commerce platform that streamlines retail and supply chain operations within the cannabis markets, today announced the opening of its new engineering operations in Trivandrum, India, with an initial staffing of 100 employees by the end of this year.
The company’s Trivandrum operations, located at Technopark in the capital of the Indian state of Kerala, represent Treez’s second engineering center with San Francisco continuing as its other major engineering hub. Renowned as India’s first IT Park and considered one of the largest in the country, Technopark consists of more than 63,000 workers employed at more than 460 companies.
The new engineering center will develop new products and enhancements for its cloud commerce platform such as point of sale (POS), inventory management, customer management, omnichannel sales, catalog management, data analytics and other solutions. In addition to software development engineers, Treez also is hiring quality assurance, business intelligence and data analytics, development operations, IT support and HR staff.
“Treez’s new engineering center is the latest example of our deep commitment to deliver cutting edge innovation and superior cannabis cloud solutions that help retailers grow their businesses,” said Shon Wedde, vice president of engineering of Treez. “We are excited to leverage the world class engineering talent in India and operate in such a prestigious IT park alongside some of the leading IT companies in the world.”
The European Industrial Hemp Association advocates for hemp regulations throughout the EU, setting an example for what one unified voice in the industry can accomplish.
For the past 20 years, the European Industrial Hemp Association (EIHA) has strived to establish a viable hemp industry in Europe. EIHA’s message to the hemp world is clear: “Having too many associations dilute their messages, weakens important points,” EIHA Managing Director Lorenza Romanese says, adding that having “one centralized association makes a stronger and more unified presence.”
The EIHA is a membership organization that represents the common interests of hemp farmers, producers, and traders working with fiber, shives (hurd), seeds, flower, and cannabinoids in the European Union (EU).
Farmers in the EU operate within the agricultural system of their country, similar to how U.S. producers operate within their state frameworks. EIHA addresses the goals and concerns of farmers from different backgrounds by promoting regulations that benefit the European hemp industry as a whole.
Some EU laws are binding and must be followed, while others are recommendations. The laws on hemp are not binding and all member states can establish their own legislation. However, most members follow EU directives, and what is decided in the European Parliament, the EU’s directly elected law-making body, is ultimately important for all hemp growers in Europe.
The EIHA helps set the international standards by identifying hurdles limiting the European hemp industry, explaining to EU legislators why it is important to establish transparent regulations based on scientific evidence, and building the majority support required to implement change.
The EIHA has been instrumental in making changes that keep European farmers growing hemp profitably while increasing production. North American and other international groups seeking similar changes can learn by emulating EIHA’s successes.
The EIHA started in Cologne, Germany, in 2002. Since its launch, the EIHA’s network has grown to encompass stakeholders from 25 out of the 27 EU member states and 12 non-EU countries, including members in North America and the Asia Pacific region.
The EIHA moved its main office to Brussels, Belgium, in 2019 to encourage closer contact with EU institutions and better lobby for the future of hemp in Europe.
Today, the organization acts on behalf of around 250 members, representing the entire industrial hemp production chain from seed to shelf.
The organization has accomplished many successes in establishing EU regulations.
In October 2020, the EU Parliament voted to restore the maximum THC level of hemp crops on the field, from 0.2% to 0.3% dry weight. And just a couple months later, the final amendment of the Common Agricultural Policy (CAP) was adopted after the EIHA had several long discussions aimed at working out compromises between EU institutions.
CAP will enter into force January 2023 and presents the possibility for farmers to receive subsidies for growing hemp varieties registered in the EU catalog with a maximum THC level of 0.3%. Maximum allowable levels of THC in Cannabis crops vary between European countries (e.g., Italy = 0.6%; Czech Republic = 1%, etc.), and farmers in those countries who grow other varieties than the EU-approved varieties will not receive subsidies.
EIHA’s protracted battle with the EU over THC levels took place over a decade. In a press release last year, Romanese explained, “I am proud of what has been achieved. We worked hard to ensure that hemp had the recognition it deserves in the Common Agricultural Policy. I would say that this small step reflects that EU legislators are closer to fully acknowledging and recognizing the existence of a legitimate European hemp sector.”
According to the release, EIHA’s continual struggle is for hemp to be recognized by the EU as a normal agricultural crop, not a drug plant, and collectively demand science-based, transparent policies that will enable the European hemp sector to flourish.
“Having a botanical link to drug cannabis cannot, and must not, sentence an entire hemp industry to death,” Romanese said in a 2020 press release. The release referred to a joint letter drafted by a group of national hemp advocacy groups asking the European Commission (EC), the EU’s executive branch, to address limitations imposed by the United Nations Single Convention Treaty on Narcotic Drugs.
As it is today, all EU countries have their own regulations concerning CBD. Some countries regulate various CBD products under their drug law, while other countries regulate it as a dietary supplement.
“Hemp is the only agricultural plant that is divided into parts like flowers, seeds, and fibers with different chemical limits. The poppy seed industry does not comply to opiate limits,” Romanese says, pointing out that poppies are used to make opiates.
“For hemp to be normalized like other crops, we need to treat it as a normal crop,” she says.
Before the CBD market expanded, the problem of various parts of one crop being treated differently was not common in Europe. It is important to have a common approach to all fractions that can be extracted from hemp, as farmers today may want to grow for CBD rather than seed or fiber.
Romanese also noted another complex topic that presents an ongoing challenge for the EIHA. Although in their natural state, hemp seeds and the oil within them do not contain THC, most THC is produced in the enveloping flowers (and is allowable at levels of less than 0.3% by dry weight set forth by EU regulations). Thus, the surface of the seed can potentially contain traces of THC during harvest and processing that may be detected in hempseed products.
The EU recently established the regulations for the maximum levels of THC in hempseed products for human consumption. The levels are set at 3 milligrams per kilogram (approx. 1.4 mg/pound) for dry products (flour, proteins, seeds, snacks) and 7.5 milligrams per kilogram (approx. 3.4 mg/pound) for hempseed oil throughout the entire EU.
READ MORE: European Commission Sets THC Limits for Hempseed Food Products
Before the regulations were set, there were inconsistencies in regulations between the 27 EU member states, which put operators in a difficult situation and often impeded the smooth trade in hemp products or blocked trade altogether.
The adoption of common EU regulations encourages farmers and promotes trade, Romanese says. “Piece by piece, we are achieving a true single hemp market for Europe. We will continue in this direction and do our best to make life easier for hemp farmers and processors,” Romanese said in a March press release.
The EU has defined the limits of THC in foods, which are now in line with international markets, but EIHA plans to continue its work with clinical toxicologists to further understand the toxic limits of cannabinoids, including CBD and other minor cannabinoids, in the human diet.
The marketing of minor cannabinoids also presents many limitations.
For example, since 2019, CBD extract of hemp flowers has been classified as a “novel food.” A novel food is defined as a food that had not been consumed to a significant degree by humans in the EU before May 15, 1997, when the first regulation was enacted, Romanese says.
For a product to be classified as a novel food, a company must achieve a “pre-market authorization” by supplying scientific data, including a safety assessment report. The EIHA is assisting companies with this long and expensive process.
READ MORE: CBD Companies Speak to UK Novel Food Applications
The EIHA also organizes an annual international conference with participants from around the world. Since its inception, it has been based in Cologne, but this year it will take place in Brussels from June 21-22.
Last year’s 18th annual conference was a three-day online event with the theme “Hemp for Europe: Emerging opportunities for the Green Recovery.” Representatives from the European Parliament and EC attended the event for the first time as keynote speakers and panelists. They highlighted the vital role hemp plays as a carbon-neutral crop plant—a key step in achieving the EU’s Green Deal environmental protection targets.
“Our mission is to educate and raise awareness on how hemp could put forward innovative solutions capable of accelerating the transition towards a regenerative growth model that gives back to the planet more than it takes, whilst creating thousands of new jobs in rural areas and in manufacturing,” said Daniel Kruse, EIHA president, in a 2021 press release. “We are here to unlock the full potential of hemp and discuss all together how to make the most out of all its applications, from the textile sector, to composites, food, supplements and medicine.”
During those days, panelists shared ideas and best practices on hemp farming, fiber processing, and bio-composites, with a special focus on how to build strong local value chains.
EIHA’s Senior Policy Advisor Francesco Mirizzi, an EU lobbying expert with international experience both in the private and public sectors, is dedicated to this topic. He deals with agricultural aspects of hemp production and covers the hemp construction and textiles sectors.
“I believe that the future for hemp textile fibers will be in the production of non-woven fabrics for agricultural uses and packaging as well as woven blends with different fibers,” Francesco says. “Although there is market demand for European hemp fibers, there are no centralized producers, the supply is scattered, and new processing facilities are needed to respond to a growing demand of hemp fiber and shive products.”
The hemp industry must increasingly collaborate with research institutions and policymakers to educate and raise awareness of how hemp could put forward innovative solutions. Accommodating members from diverse walks of life within a single organization, as EIHA has done, is a necessary challenge. Although hemp is beneficial for many uses, without a centralized voice, these smaller factions may not be heard, and policymakers may remain uninformed.
The Maryland cannabis company received multiple awards from the AVA Digital Awards and Hermes Creative Awards.
BETHESDA, Md., May 2, 2022 /PRNewswire/ — PRESS RELEASE — CULTA, a cannabis company in Maryland, received multiple awards for its digital branding and creative assets. These awards were distributed by the AVA Digital Awards and Hermes Creative Awards, two of the largest creative competitions in the world.
CULTA took home one platinum and two gold AVA Digital Awards for its brand guidelines and stop motion videos, respectively. The AVA Digital Awards is an annual competition that honors excellence in digital creativity, branding and strategy, and recognizes the creative professionals responsible for all aspects of digital communication. Since its inception, over 300,000 entries have been judged, with an AVA statuette being given to the top contenders. This year, there were over 2,000 entries for various categories, and other winners include AT&T, DELL, Harvard University, Microsoft and Uber.
“At CULTA, we’ve invested in our branding so winning a coveted statuette from the AVA Digital Awards is a validation of that hard work,” said Renier Fee, senior director of marketing at CULTA. “We’re honored to receive such a prestigious award and look forward to entering the competition again next year.”
CULTA was also the winner of two gold awards at the annual Hermes Awards. The Hermes Awards is one of the oldest and largest creative competitions in the world and highlights the creative industry’s best publications, branding collateral, websites, videos, and marketing programs. This is the first year CULTA entered the competition and CULTA took home the awards for its 7/10 and Bones designs. Other Hermes Awards winners include ASICS, David’s Bridal, Duke University, Paramount Pictures, PepsiCo, and SEGA.
“Considering this is the first year we entered the Hermes Awards, it’s incredible that we walked away with two awards,” said Chris ‘Cheeto’ Batten, creative director at CULTA. “We love bringing our patients fashion-forward designs and will continue to push creative boundaries.”
In 2021, CULTA was also the recipient of platinum, gold, and honorable mention awards at the MarCom Awards for its t-shirt designs and the “Best Clothing Product” award at the Explore Maryland Cannabis 2021 awards. CULTA’s winning designs, stop motion videos, and other collateral can be viewed on their clothing website at www.ShopCulta.com and official CULTA YouTube channel.
The hefty loan signals another degree of normalization for an industry poised on the edge of impending bank reform.
Fluresh, a vertically integrated cannabis business based in Michigan, closed a $25-million note with a federally regulated bank back in December. The company announced the loan transaction just this past week. It’s a headline celebrated as an “important rite of passage” for the industry by Stephen Lenn, Managing Partner of Brennan, Manna & Diamond in Phoenix.
And for Fluresh, it’s a major feather in the company’s cap. The business also completed a $23-million debt refinancing on its Grand Rapids property—also through the federally regulated bank, which is based in southeast Michigan.
“For the industry, [the note closing] reflects its inexorable movement out of the shadows and into the mainstream,” Lenn said in a public statement. “Possibly of greater significance is the normalization of cannabis, which likely extends far beyond banking. This substantiates the view that, whether any of the pending federal legislation is enacted, bank lending to the cannabis industry will continue to accelerate.”
The note is secured by that Grand Rapids property, according to the company, and it’s set to mature in December 2024.
“We are pleased to successfully complete one the largest debt financings of a cannabis operator by a federally chartered bank,” CFO Jacob Fein said in a public statement. “This non-dilutive debt financing represents an industry-leading cost of capital and simplifies our capital structure. This debt financing is a significant milestone for both Fluresh and the cannabis industry.”
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