MJBiz - July/August 2024 - 16

COMPANY NEWS U.S. & International
Holistic Industries
Fined for Mold
Massachusetts
regulators
fined
marijuana multistate operator
Holistic Industries $200,000
after a mold outbreak in
which the company allegedly
" knowingly " sold contaminated
cannabis.
According to a stipulated
settlement between the
company and the Massachusetts
Cannabis Control Commission,
Holistic knew about a mold
outbreak at its cultivation facility
in Monson, Massachusetts,
since at least November 2020.
Rather than immediately fix
the problem, Holistic sought
out permissive lab testing that
allowed the tainted marijuana
to pass inspection and be sold,
leading to " numerous patient
and consumer complaints. "
" To be clear, no product was
ever sold or in the hands of consumers
that did not pass testing
from a state-approved facility, "
Jamie Ware, interim head
counsel at Holistic Industries,
told MJBizDaily.
As part of its settlement with
the state, Holistic " neither admits
nor denies " any allegations.
Native Roots to Pay
$140M Settlement
A Colorado appeals court
restored a $100 million award in
a long-running dispute involving
one of the state's biggest marijuana
retail chains.
An arbitrator had awarded
$140 million in 2022 to Josh
Ginsberg and Rhett Jordan,
two co-founders of retail chain
Native Roots Cannabis. The
cash was meant to settle a
dispute triggered in 2017 when
a third owner, Peter Knobel,
and his company, Brightstar,
attempted to sell Native Roots.
But two months after the arbitrator's
ruling, a Denver judge
canceled the award because of
a " legal error " with the decision
and evidence of bias. The upshot
is that Ginsberg and Jordan
are still due $100 million plus
interest, a spokesperson for the
plaintiffs told MJBizDaily.
Knobel still owns 70% of
Native Roots, which has 22 locations
in Colorado.
Vangst Acquires
'Largest Competitor'
Vangst, a major cannabis
industry staffing platform,
acquired CannabizTemp in what
is believed to be the first such
move in the marijuana human
resources sector. CannabizTemp
is the temporary staffing division
of CannabizTeam, an executive
search firm headquartered in San
Diego.
A price tag for the acquisition
was not disclosed, but the deal
was " 50% cash and 50% stock, "
according to a news release.
The acquisition likely will
strengthen Vangst's temporary
staffing division, known as
Vangst Gigs. Since launching
in 2018, Vangst Gigs has filled
more than 200,000 gig jobs in 19
states, according to the release.
CannabizTeam will continue its
executive search business for the
industry.
INTERNATIONAL DEVELOPMENTS
Organigram Moves
to Enter U.S. Market
Torontobased
Organigram
Holdings dipped
into its strategic investment
pool to pick up a minority stake
in Roxboro, North Carolinabased
Open Book Extracts.
The investment is part of
Organigram's plan to target
emerging cannabis markets
in the United States and
16 July-August 2024 | MJBizMagazine
elsewhere.
Late last year, British
American Tobacco injected
CA$124.6 million ($92.5 million)
into Organigram, the majority
of which was pledged for its
strategic investment pool,
named Jupiter.
Organigram's investment for a
minority position in Open Book
Extracts amounts to $2 million
(CA$2.7 million) in the form of a
convertible note, according to
a news release. The companies
said the investment will help
the North Carolina business
commercialize hemp-derived
products in the U.S. over time.
Separately, Organigram
entered into an underwriting
agreement with ATB Securities,
as lead underwriter, to sell
7,740,000 units at a price of
CA$3.23 per unit, for gross
proceeds of approximately
CA$25 million. The New
MJBiz - July/August 2024

Table of Contents for the Digital Edition of MJBiz - July/August 2024
