Connect with us

Markets and industry

How the cannabis industry is overcoming a lack of trust

Canxchange explores trust and credibility in the cannabis industry.



How the cannabis industry is overcoming a lack of trust

The young and reemergent cannabis industry is being held back by the big elephant in the room. Let’s look into the trust and credibility factor in cannabis.

How the cannabis industry is overcoming a lack of trust – Live on the Canxchange website.

The cannabis industry has become legal and regulated only recently. In many jurisdictions, the US Federal Government’s being the clearest case, regulation is confusing and often inconsistent. As a new legal industry, trust and credibility are critical for growth.

Trust and credibility are tough subjects in an industry that is booming at light speed. The cannabis industry is growing very quickly and is expected to be worth more than $30bn in the US alone by 2025. Cannabis crops are diverse and applied in many industries. Cannabis plants and their cannabinoids have also recently been studied more thoroughly for medical potential.

All things considered, the cannabis industry’s growth is outpacing its regulatory framework. Given regulations, public image and stigma, and (in some cases) the lack of traditional financial services, the cannabis industry must overcome these challenges and foster trust and credibility to thrive.

Fortunately, there are already many solutions to these issues being explored. Let’s look at those issues and the potential solutions.

Lack of payment solutions

In some places, the cannabis industry is stuck in an awkward corner. In the US, banking is a constant challenge. Cannabis is still illegal at the federal level. All the while, medicinal cannabis is legal in three dozen states and recreational cannabis is legal in 17. Despite most of the country allowing access to legal cannabis, banking services are usually unavailable to them.

The result of this situation is that most cannabis businesses in the US are relegated to cash alone. Cash-only businesses become increasingly difficult to manage the larger they grow. Many in the US cannabis industry believe that access to banking services can’t come soon enough.

While the lack of banking services in the US cannabis industry is very strange, it’s not a uniquely American issue. Many European businesses face a similar problem but under different regulatory circumstances.

Read more from Canxchange: How the carbon capture of hemp can help reduce emissions

The UK may not be the largest CBD market, but it’s still a rapidly growing one expected to reach £1bn per year in 2025. The problem is that while many CBD products have grown popular, many payment processors may force businesses to clear their stock.

Finding a reliable payment processing option is difficult for cannabis businesses worldwide. Unlike other businesses, cannabis businesses can be sent an ultimatum: clear their cannabis inventory or have payment processing halted.

This all leaves cannabis businesses in a difficult situation. First, cashless payments are a trend that is only increasing. Many people in countries around the world are already almost forgoing on cash altogether. Cannabis businesses, including CBD ones, rely on e-commerce online payments and deliveries. Some payment processors have been known to cease their payment processing suddenly.

When cannabis businesses are faced with the absence of payment processing, it hurts their reputation. The cannabis industry’s reputation has been carefully cultivated. But for a public that relies on cashless payment options, this threat to cannabis businesses is very real. So, some cannabis businesses must rush to find alternative payment service providers. In some cases, they rush to sub-par payment service providers. This can cause them to have difficulties providing adequate customer service.

The solution

It’s clear that the cannabis industry needs reliable payment solutions to grow and maintain trust. At Canxchange we are proud to host a payment solution operated by the conventional banking system that we provide our members.

There are a growing number of cannabis payment services. While these cannabis-industry-specific solutions do offer an alternative, many of them still miss out on credit card processing. This depends on your jurisdiction, of course. In the US, cannabis companies cannot legally accept credit card purchases.

Options that still work and are legal include ACH payments and eChecks. Also, there is the option of a dispensary credit card, essentially a merchant account for customers. They typically use P2P technology like Venmo to facilitate card transactions.

Of course, if possible, find a reliable processor that can accept major credit cards. Fortunately, the startup space for cannabis payment processing is very active. Legal solutions to the payment processing issue are quickly establishing themselves.

Shady and illegally operating companies

Unfortunately, this factor is beyond the control of most legal and honest cannabis businesses. The fact of the matter is that many illegal cannabis businesses have emerged alongside the businesses that operate legally. Of course, illegal cannabis dispensaries do not need to follow the same rules as their legal counterparts. This is not a good look for the cannabis industry. It’s even formed a wedge between the legal medicinal and recreational cannabis communities in some areas.

Read more from Canxchange: How COVID has and will continue to change the cannabis market

The cannabis industry has already produced several scandals. The confusion surrounding regulation has allowed some illegal businesses to thrive while maintaining the appearance of complete legality and legitimacy. It’s safe to say that many cannabis consumers have likely ordered cannabis from an illegally operating business while having no idea that they have been doing so.

Also, legal cannabis businesses face the challenge of shady payment solutions providers. Most are just looking for a legal and sustainable way to enable their customers to pay them the way they want to.

The solution

These issues have several solutions that all serve to promote transparency and promote confidence in legal and ethical businesses involved in any part of the cannabis industry. “Seed-to-Sale” POS systems are developed specifically for the cannabis industry.

They enable the tracing of all transactions and actions from the purchase of seeds by a grower to the sale of finished products by retailers and dispensaries. This removes much of the “shadiness” associated with the cannabis industry in the eyes of the regulators and the consumers.

Cannabis businesses can take part in promoting trust by making licensing and certifications public knowledge. They can also provide educational materials on these topics through handouts or on their websites.

The bottom line

Cannabis is becoming more accepted by society. Whether the plant’s cultivation is for medical, industrial, or recreational use, more people want it.

However, the industry must still confront the stigma stemming from a generation of illegality. Then there’s its past, sweeping association with psychoactive drug abuse. While regulators are often slower than the general public to react to these changes, there are steps that those in the cannabis industry can take to further build up trust and credibility with both regulators and consumers.

Markets and industry

Roundup of Q1 2022 financial results in the UK medical cannabis space



financial results

Companies across the cannabis industry announce financial results for the first quarter of 2022, Cannabis Wealth rounds up the results of six major firms expanding within the UK medical cannabis space.

2021 was a positive year for cannabis businesses with 165 per cent year-over-year growth in cannabis equity capital raises and a series of high profile mergers and acquisitions. Compared to 2020, which was characterised by plunging investment and struggling businesses, the future of the UK industry is looking bright. With the first quarter of 2022 coming to a close on 31 March, companies are now releasing financial results from the first three months of the year.

Jazz Pharmaceuticals reveals financial results one year after GW Pharmaceuticals acquisition

In February 2021, Dublin-based firm Jazz Pharmaceuticals announced its acquisition of GW Pharmaceuticals, developer of the UK’s only licensed cannabis-based medicines, Sativex and Epidiolex.

In its financial results for the first quarter of 2022, the firm reported that its net product sales of Epidiolex increased by 6 per cent to $157.9 million in 1Q22 compared to the same period in 2021, on a proforma basis.

Epidiolex is now commercially available and fully reimbursed in four European markets: United Kingdom, Germany, Italy and Spain, with an anticipated launch in France in 2022. The company said it has made “significant progress” on its European rollout with launches in Spain, Italy and Switzerland in the third quarter of 2021 and Ireland and Norway in the first quarter of 2022.

The Company expects to initiate a Phase 3 pivotal trial of Epidiolex for Epilepsy with Myoclonic-Atonic Seizures (EMAS), the fourth target indication for Epidiolex, in the first half of 2022.

Khiron Life Science achieves 240 per cent sales volume growth in the UK

Toronto-based international medical cannabis company Khiron Life Sciences has reported a sales volume growth of 240 per cent in the UK market in Q1 2022 compared to the entire year of 2021.

In late 2021, Khiron opened its first European Zerenia Medical Cannabis Clinics in the UK, offering telemedicine service to patients around the country, and contributing to the company’s patient acquisition and retention growth.

“[Our] KHIRON 20/1 THC-predominant strain is one of the best-selling medically prescribed products in the UK market,” Franziska Katterbach, President of Khiron Europe, said. “In Q1 2022, we expect to surpass our first 1 million CAD in revenues in the UK, and as we expand our portfolio, and increase our patient base, Khiron will consolidate its market leadership within the country.

“In 2021, Europe accounted for 33 per cent of Khiron’s medical cannabis revenues, at more than 1.5 million CAD. In Q1 2022 and beyond, Europe will represent over 50 per cent of Khiron’s cannabis revenues.”

MGC Pharma selling cannabis-based epilepsy drug into the UK through new distribution agreement

Australian firm MGC Pharmaceuticals reported sales of $625k in the first quarter of 2022 The majority of sales came from the Australian market, but the company said it is making further inroads into the European market.

In its March 2022 quarterly financial results, MGC Pharma highlighted a new strategic EU and UK distribution agreement for its epilepsy medication CannEpil and Dementia treatment CogniCann. The agreement was signed with “at home” medicine supplier, Sciencus Rare and will initially focus on four EU countries and the UK. An additional distribution partner, PCCA, will assist in selling Cann Epil into the UK.

In the report, MGC said it is “confident that these new European partners, along with a substantial presence in both Ireland and Australia, will contribute significantly to the MGC phytocannabinoid revenue stream for the remainder of 2022 and beyond”.

Following its listing on the London Stock Exchange in February 2021, MGC Pharma last month appointed London based CFO, Angela-Marie Graham. The appointment is part of its business strategy to establish a corporate office in the UK to support its European operations.

Aurora reports increased revenue in the UK market amidst net loss of $1 billion

Canada-based international cannabis company, Aurora Cannabis reported net revenue of $50.4 million in the period ending 31 March, down 17% sequentially but up 8 per cent compared to the prior year period.

Aurora said its international medical revenue hit $14.6 million, up 55 per cent year over year but down 26 per cent sequentially. The company is currently selling medical cannabis products in seven EU countries: Germany, Malta, Poland, Czech Republic, UK, Denmark and France.

The company stated that this decrease was due to the previous quarter including $8.5 million in net sales to Israel as part of a supply agreement. Excluding the Israeli market, its net international medical sales increased sequentially by 29 per cent, driven by markets including the UK, Germany and Poland.

In the UK, Aurora’s revenues increased by 60 per cent compared to last year’s first quarter. The company said “growth was driven by a rapid increase in patient numbers as more evidence has come out and more physicians prescribe cannabis”.

Despite growth in Europe, the firm reported a net loss of more than $1 billion, up by more than $160 million in the same quarter last year. It said the loss was primarily a result of increased pricing pressures and the continued impact of Covid-19. The company announced yesterday that it would be closing its Aurora Sky facility in Edmonton, Canada where it employs 13 per cent of its workforce.

Curaleaf sees small dip in revenue compared to Q4 2021 but celebrates year-on-year growth of 20 per cent

Curaleaf International, one of Europe’s major vertically integrated cannabis companies, reported a 2 per cent dip in revenue compared to the previous quarter but has seen a year on year growth of 20 per cent. Curaleaf produces two ranges of medical cannabis flower for patients in the UK.

Highlights from its first quarter of 2022 include the addition of 11 new retail dispensaries in the US, bringing its total number of locations to 1128, the acquisition of Arizona-based cannabis operator Bloom Dispensaries and the launch of a new product in Florida.

Following its entry into New Jersey’s recently legalised recreational cannabis market, Boris Jordan, Executive Chairman, said Curaleaf’s month-over-month growth from March has boosted confidence in its ability to hit full year revenue guidance of $1.4 billion to $1.5 billion.

“Given renewed optimism surrounding federal banking reform, a record-breaking 4/20, the exciting launch last month of New Jersey adult-use sales, and the prospect of New York following suit, 2022 is shaping up to be another milestone year,” Jordan said.

STENOCARE expands into the UK market: financial results indicate “a strong start for 2022”

Following its recent expansion into the UK medical cannabis market in February 2022, Danish producer of medical cannabis products STENOCARE reported that its net sales more than doubled compared to the fourth quarter of 2021.

In March, the company had three of its medical cannabis oil products approved for use in the UK. STENOCARE said it considers the current timing to be good given that industry analysts have projected that the UK will become one of Europe’s largest markets in five years. Delivery of the first products to the UK market is expected in the second quarter of 2022.

By the end of the year, the company said its expected sales run rate is set at 15 to 20 million DKK (approximately £1.7 to £2.3 million), up from total sales in 2021 of 1.9 million DKK. The majority of the uptake in sales is expected to materialise in Q3 and Q4 2022.

Continue Reading

Markets and industry

Expanding the full digitisation of COAs in the cannabis supply chain

Lucid Green has announced three new partnerships to support the digitisation of certificates of analysis (COA). 



Expanding the full digitisation of COAs in the cannabis supply chain
Home » News » Markets and industry » How the cannabis industry is overcoming a lack of trust

Lucid Green has partnered with with CannaSafe, Cannalysis, and LabLynx to bring COA digitisation to over 400 labs across the US.

The intelligent UPC platform, Lucid Green has entered into partnerships with the cannabis testing labs and lab information systems (LIMS), building on its existing partnerships with Confident Cannabis and Sonoma Lab Works.

A digital COA reveals much more information to the consumer and brands gain more insight into how their products are being consumed, enabling them to modify offerings to best suit the needs of their consumers.

Co-founder and CEO of Lucid Green, Larry Levy, commented: “Lucid Green is committed to increasing trust and transparency at every point of the cannabis supply chain and with consumers.

Read more: New platform aims to transform US cannabis supply chain

“By expanding our partnerships with cannabis testing lab systems, we are cutting time and money inefficiencies, while ultimately giving consumers additional information to allow them to have a better cannabis experience. 

“This industry is not growing because stoners are smoking more weed. It’s growing because your spouse, neighbour, parents are beginning to see the benefits of using cannabis and want more information to feel confident about and inform their experience.”

Digital COAs that reflect full lab test results, including terpenes and cannabinoids, do not currently exist in the industry. As a result, point-of-sale, online menuing and ecommerce platforms are only receiving basic information that’s captured as part of the track and trace system. 

This limited data set reinforces the current purchasing behaviour which is fixated on THC levels and basic classifications like Sativa, Indica or hybrid.

Lucid Green is also modernising the cannabis industry with LucidIDs – QR codes that make the cannabis supply chain more efficient by allowing for true truck-to-shelf inventory intake, reducing manual labor and human errors and eliminating data cleanliness issues.

Continue Reading

Markets and industry

Curaleaf appoints Matt Darin as new CEO

Curaleaf’s current CEO Joe Bayern will launch and run a new division of Curaleaf.



Curaleaf Matt Darin CEO

International provider of consumer cannabis products, Curaleaf has appointed Matt Darin as Chief Executive Officer as exiting CEO Joe Bayern prepares to launch and run a new division of Curaleaf.

Curaleaf has announced that Matt Darin has stepped into the role of Chief Executive Officer at the international cannabis company, effective yesterday (9 May).  As a founder of the Chicago-based cannabis company Grassroots, Darin was a first entrant in some of the United States’ key cannabis markets, including Illinois and Pennsylvania. Since joining Curaleaf in July 2020, he led the central US region which the company said is its largest region by footprint and revenue. In 2021 he added the southeast region to his responsibilities, helping increase Curaleaf’s market share by 55%.

The announcement was made in conjunction with the company’s quarterly earnings call, during which Curaleaf reported first quarter revenue with year-over-year revenue growth of 20% to $313 million, and year-over-year adjusted EBITDA growth of 16% to $73 million with operating cash flow of $57 million.

“I firmly believe we are building the best team in cannabis and I’m energized and humbled to lead Curaleaf at this pivotal moment,” Darin said in a statement. “We’ve built the foundation to continue to be the industry leader for the long term with a focus on operational excellence in every aspect of our business. We are leveraging the power of our 131 highly productive dispensaries and the accelerating distribution of our brands in 2,200 wholesale accounts throughout the U.S.  I’m grateful to the board for their confidence in me as we move to the next phase of our journey.”

Curaleaf’s current CEO Joe Bayern will launch and run a new division of Curaleaf developing a new consumer packaged goods (CPG) based business model while working closely with Darin during the transition period through the second quarter. Executive Charman Boris Jordan said the company is “incredibly grateful” for Bayern’s tenure as CEO stating that he brought the firm into a “new way of working and thinking strategically as a CPG company”.

“I’m thrilled to begin this new chapter with Curaleaf,” Bayern said. “Working with this team has been an amazing ride and we’re just getting started. I’m deeply grateful to Boris, Joe Lusardi, the board, and every team member at Curaleaf; I am proud of what we’ve built together, and I know that our new venture will be another strong asset in Curaleaf’s undisputed leadership of our exciting industry.”

Boris Jordan added: “This move positions us well on several fronts; we will benefit from Matt’s proven track record of building winning teams and cannabis industry experience, and Joe Bayern’s extensive experience driving CPG strategy to launch our new division. I have the utmost confidence that this change is the natural next step in Curaleaf’s journey as the leading global cannabis company serving both the adult use and health and wellness markets. In fact, we’ve never been more bullish about our future.”

Continue Reading
Sign up for the Cannabis Wealth newsletter

Recent Posts