Category: Cannabis

Filtrona Launches Cannabis Division

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Filtrona has launched Cannatrona, a dedicated division serving the cannabis and hemp market.
The Cannatrona business supplies filter tips, mouthpieces and pre-roll solutions for cannabis and hemp products, alongside scientific services.
“The cannabis and hemp industry is seeing rapid expansion, but the regulatory landscape is also shifting at speed,” said Filtrona CEO Robert Pye in a statement. “What businesses in this field need is a partner with a proven track record of quality, innovation, brand development and compliance, and that’s exactly what Cannatrona offers. With the company’s launch, we’re looking to propel the sector to even greater heights in a transformative and meaningful way.”
“In any growing market, new businesses can be found all along the supply chain,” said Jeni Sperry, head of new business development at Cannatrona. “However, Cannatrona has something that the rest don’t, and that’s the century-long experience of Filtrona, one of the world’s leading special filter brands. For cannabis and hemp product innovators, we’re not just introducing filter tip and mouthpiece products to the market, we’re bringing expertise, innovation and a very bright future.”
December 1, 2023
22nd Century Sells Cannabis Operations
22nd Century Group will sell most of its GVB Biopharma hemp/cannabis operations to Specialty Acquisition Corp., an entity affiliated with GVB employees.
Terms of the transaction include a cash payment to the company of $1 million at closing of the sale and a 12 percent secured promissory note for $1.25 million issued by the buyer. The company plans to use the proceeds from the sale to further deleverage its balance sheet.
22nd Century is also entitled to retain any insurance proceeds received in connection with the fire at the company’s Grass Valley manufacturing facility, a portion of which will be used to offset the buyer’s portion of the shared liabilities.
The sale is expected to close in early December 2023, subject to customary closing conditions, including approval by 22nd Century’s board of directors.
“The sale of our hemp/cannabis franchise will immediately and materially further reduce the cash and operating demands within our business,” said John Miller, interim CEO of 22nd Century, in a statement.
“We expect this transaction will substantially lower 22nd Century’s operating expenses beyond the previously announced $15 million in cost savings initiatives on an annual basis. Additionally, we will retain rights to the insurance proceeds, subject to certain offsets, effectively recouping cash that was invested into the continuity of the hemp/cannabis business.
November 28, 2023
BAT Ups Investment in Organigram

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Organigram Holdings Inc. has extended its relationship with British American Tobacco. The move boosts the Canadian cannabis producer’s financial strength and positioning it to expand globally.
Organigram said in a statement that BAT is investing a further $90.5 million in the business, building on an initial $160 million injection back in 2021.
Organigram said the investment will allow it to extend its footprint beyond Canada, and also strengthen its financial position for long-term, sustainable growth, according to media reports.
“This investment bolsters an already strong balance sheet and solidifies our position as a leading cannabis company,” said Beena Goldenberg, chief executive of Organigram.
The firm said the deal enables it to invest in growing the topline of its core business, while optimizing operations to deliver on cost-saving efficiencies, thus accelerating earnings growth.
Organigram will use the majority of the investment to create a strategic investment pool, named Jupiter.
Jupiter will target investments in emerging cannabis opportunities that will enable Organigram to apply its industry-leading capabilities to new markets, it said.
November 8, 2023
Cannabis And Nicotine Vape Markets Diverging

Photo: Seth Michael
The cannabis vaping and tobacco vaping industries in the U.S. are on contrasting paths, largely shaped by regulatory dynamics, according to an article published by Bloomberg. While tobacco vaping faces increased restrictions on nicotine levels, flavored products and youth usage, the cannabis vape sector benefits from limited regulation, making it a significant player in the marijuana market.
The U.S. Food and Drug Administration’s ban on flavored vape products in particular has been detrimental to the nicotine vape sector, impacting prominent brands like Vuse Alto, which was recently the subject of an FDA marketing denial order.
In comparison, cannabis vapes are growing rapidly, with an estimated $6.8 billion in sales for the year. These numbers might underestimate the market due to the influence of illicit cannabis sales, which are hard to track. However, as cannabis legalization progresses state by state, questions arise about when this sector might face more regulations.
Some suppliers to the nicotine vape business see substantial potential in the cannabis sector, as the U.S. vape parts market alone is estimated to be a $700 million opportunity. Meanwhile, the rise of disposable vapes also poses a challenge, as concerns about waste and youth appeal lead to potential regulatory hurdles.
October 18, 2023
Betting on Weed

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BAT has further increased its investments in the cannabis industry.
By Stefanie Rossel
In its endeavor to transform its business, initiated in 2020 under the slogan “A better tomorrow,” BAT is increasingly focusing on the cannabis sector to diversify beyond tobacco and nicotine. Two years after its first venture into the hemp market, the group currently has partial stakes in 13 cannabis startups, more than any other tobacco company, according to Seeking Alpha, a financial services provider.
BAT’s most recent move in this direction is a joint venture with Denver, Colorado-based cannabidiol (CBD) producer Charlotte’s Web Holdings in early April. BAT’s subsidiary AJNA Bio Sciences, a botanical drug development company focused on mental health and neurological disorders, has teamed up with Charlotte’s Web and is contributing $10 million as the joint venture’s initial investor. AJNA was co-founded and is partially owned by its president, Joel Stanley, the former CEO and chairman of Charlotte’s Web, together with other founding members of Charlotte’s Web.
The aim of the cooperation is to develop from propriety Charlotte’s Web hemp genetics a botanical drug targeting a neurological condition and pursue approval by the U.S. Food and Drug Administration. While the joint venture did not disclose the neurological condition, observers suspect that the drug is aimed at the treatment of seizure disorders. Charlotte’s Web is also the name of a hemp strain from which an oil can be made that can be used to treat Dravet syndrome and other epilepsy diseases.
The strain, which contains 17 percent CBD and 0.5 percent of the psychoactive ingredient tetrahydrocannabinol, was bred in 2011 by the Stanley brothers to treat a young girl suffering from a severe form of pediatric epilepsy that did not respond to commonly used anti-epileptic drugs. Encouraged by the patient’s positive response to their CBD oil, the brothers established a nonprofit organization to give seizure patients access to high-quality cannabis with a high CBD content. With their advocacy, they helped change laws and public perceptions relating to plant-based solutions. Nevertheless, their product did not become the first treatment derived from cannabis plants to receive FDA authorization. That honor fell to Epidiolex, which contains only CBD and was approved by the agency in 2018.
The joint venture, in which BAT holds a 20 percent stake and Charlotte’s Web and AJNA have a 40 percent stake each, will be led by representatives of all three companies. Its clinical and regulatory strategy will be led by Orrin Devinsky, who was a principal investor in the FDA approval of Epidiolex. Apart from being AJNA’s chief medical advisor, he is also the director of New York City University Langone’s Comprehensive Epilepsy Center. The joint venture wants to file an investigational new drug application and commence phase I clinical development in 2023.
In November 2022, BAT paid £48.2 million ($60.36 million) for a 19.9 percent stake in Charlotte’s Web, a leading company in hemp extract products and the only publicly traded CBD B Corp-certified company. According to its latest financial reports, Charlotte’s Web generated revenues of $74.13 million in 2022.
In mid-March, a major shareholder urged BAT to move its primary stock market listing from London to New York. About 60 percent of BAT’s profits come from the U.S. while only 1 percent is generated in the U.K. With a move to the U.S., analysts argued, the FTSE 100-listed company would not only gain an investor base with greater appreciation of reduced-risk products but also be better equipped if it wanted to venture into the cannabis markets. U.K. law prohibits a company from listing if its profits are sourced from recreational cannabis, even if they are earned in a jurisdiction where marijuana is legal. Although similar restrictions currently exist in the U.S., analysts expect these issues to be addressed in the near future.
With its recent investments, BAT continues its exploration of the cannabis business, which started in March 2021, when it acquired a minority stake in Organigram Holdings of Canada for CAD221 million ($175 million at the time). Canada legalized cannabis in October 2018. Through a number of acquisitions and organic growth, Organigram has since become the second-largest licensed cannabis producer in Canada.
Stefanie Rossel is Tobacco Reporter’s editorial contributor. An experienced trade journalist, she combines sharp reporting skills with in-depth knowledge of the tobacco and vapor industries. Prior to joining Tobacco Reporter, Stefanie was editor-in-chief at Tobacco Journal International, where she worked for a decade. Fluent in English, German and French, Stefanie covers tobacco news around the world. She is based in Germany.

May 1, 2023
WITCO Eyeing Vaping Market

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The West Indian Tobacco Company (WITCO) is planning to introduce vaping products and is researching cannabis use, reports Trinidad Express.
“The research is clear, [vaping is] 95 percent safer than cigarettes, so the same risk profile does not exist,” said Raoul Glynn, WITCO’s managing director. “That is why you have Public Health in the United Kingdom giving vaping products to 1 million consumers in the U.K. We saw it in T&T for Carnival, where people felt more comfortable vaping than smoking cigarettes.”
“It’s not one or the other because we will continue to have cigarettes for consumers who want to smoke, but we also want to have the vaping products for those consumers as well,” Glynn said.
Glynn said WITCO is actively researching the effects cannabis can have on users. “It has very relaxing elements and then you have some elements that do not have a positive effect on people. So we have to be careful, and WITCO would not bring something to market that would put people at risk. The group has done extensive research and concluded one in the U.K. with consumers. We will take those learnings and see if it is ready to go to market, but at this stage, I think it is a bit far off,” he said.
April 27, 2023
BAT Partners with Charlotte’s Web

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BAT has partnered with CBD firm Charlotte’s Web to develop a drug for an undisclosed neurological condition, reports Bloomberg. The partnership is part of BAT’s plan to diversify away from cigarettes.
A joint venture between BAT’s subsidiary AJNA BioSciences PBC and Charlotte’s Web, which BAT invested in last year, plans to seek approval from the U.S. Food and Drug Administration for a treatment made from hemp extract. AJNA invested $10 million in the deal. Charlotte’s Web and AJNA each own 40 percent of the entity while BAT controls the remaining stake, according to a statement.
April 7, 2023
22nd Century Enters Agreement with Cookies

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22nd Century Group announced a new three-year exclusive license and distribution agreement with Cookies, a global hemp/cannabis company. The brand was founded in 2010 by CEO, rapper and entrepreneur Berner and Bay Area breeder and cultivator Jai.
“This transformational strategic license, manufacturing and distribution agreement with Cookies establishes the foundation of an innovative new CDMO plus distribution business model for 22nd Century at a time when mass market channels urgently need to find new, high-margin, high-velocity products to meet the rapidly growing consumer demand for CBD products,” said James A. Mish, CEO of 22nd Century. “Our complete, vertically integrated capabilities represent the first and only industry option providing Cookies’ category-leading CBD brand with a single-source, national solution across its entire family of products.”
“We are incredibly excited to expand our partnership beyond GVB with the 22nd Century Group. They have undoubtedly put together one of the most impressive teams in the space, and we look forward to expanding the national distribution of Cookies non-THC products together,” said Parker Berling, president of Cookies.
The exclusive license with 22nd Century covers all Cookies branded non-Delta-9 THC, hemp-derived cannabinoid consumer packaged goods, including sourcing of all ingredients and APIs; white-label manufacturing of vapes and other CBD products; and category management through retail distribution.
GVB Biopharma, a 22nd Century company, has manufactured various Cookies products for the past three years and under this new agreement will manufacture Cookies’ market-leading products, expected to account for more than half of Cookies’ non-Delta-9 cannabinoid sales.
The integrated go-to-market sales and distribution components of the agreement will leverage 22nd Century’s veteran consumer packaged goods sales team, which plans to distribute Cookies products in up to 18 markets targeted for the rollout of the company’s innovative VLN products during 2023.
The CPG sales team will target a market of approximately 60,000 retail stores consisting of independent retail, discount tobacco outlets and vape shops in nonrecreational states serviced by its network of top regional distributors and chain discount tobacco outlets. Products will also be available on the Cookies e-commerce website.
“Cookies products are a natural fit to the same points of sale as our FDA [U.S. Food and Drug Administration] MRTP [modified-risk tobacco product]-authorized VLN products. The combination of these two offerings will enhance our sales team’s product portfolio with a larger suite of small-footprint, high-velocity, high-margin CBD products, with Cookies’ internationally recognized products serving as a cornerstone brand as we build out this innovative hemp/cannabis CDMO+D platform,” said John Miller, president of tobacco products at 22nd Century.
April 5, 2023
Bill Would Reduce Hemp Farmer Burden

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A bipartisan team of U.S. senators presented a bill in the Senate that would reduce the burden on industrial hemp farmers, according to The Dales Report.
Senator Jon Tester and Senator Mike Braun introduced bipartisan legislation dubbed the Industrial Hemp Act that would exempt farmers who exclusively cultivate industrial hemp from arduous background checks and expensive sampling and testing requirements.
These protocols would, however, remain for farmers growing cannabinoid hemp.
“Montana farmers don’t need government bureaucrats putting unnecessary burdens on their operations,” said Tester. “It’s time we cut red tape and make it easier for industrial hemp farmers to get their product to market. My bipartisan bill builds on Montana’s leadership on hemp policy and creates good-paying jobs for folks across rural America.”
The current U.S. Department of Agriculture rules require all hemp crops to be compliant, and crops are subject to testing while the end-use products made from industrial hemp have always been exempt from the Controlled Substances Act.
The new legislation would still require industrial hemp farmers to meet compliance standards but would not require background checks and testing protocols if their crops are in compliance.
Producers who go against these regulations would be banned from taking part in the hemp program for five years.
March 28, 2023
CBD Could Help Stop Smoking

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Cannabidiol (CBD) could help tobacco users quit, according to a new study published in Chemical Research in Toxicology.
Washington State University researchers tested effects of CBD and its major metabolite on human liver tissue and cell samples and found that it inhibited a key enzyme for nicotine metabolism. Slowing nicotine metabolism could allow users to wait longer before feeling the need for more. More research is needed, but according to Philip Lazarus, Washington State University professor of pharmaceutical sciences, the findings are promising.
“The whole mission is to decrease harm from smoking, which is not from the nicotine per se but all the carcinogens and other chemicals that are in tobacco smoke,” said Lazarus, senior author on the study. “If we can minimize that harm, it would be a great thing for human health.”
“It appears that you don’t need much CBD to see the effect,” said Lazarus.
Lazarus’ team is developing a clinical study to examine the effects of CBD on nicotine levels in smokers, measuring nicotine levels in their blood versus smokers taking a placebo over the course of six hours to eight hours. They hope to then do a much larger study looking at CBD and nicotine addiction.
February 17, 2023