The drama surrounding accusations that a CBD store illegally sold cannabis has seemingly come to a close. Last week the Las Cruces City Council voted to deny an appeal to save the license of Speak Easy after weeks of media attention on the case.

The shop has been open and waiting on an appeal since the council’s initial vote to revoke its license in September. But last week the appeal was struck down with a unanimous vote.

Local law enforcement agencies say undercover agents caught the store’s general manager Jason Estrada selling cannabis illegally on at least two occasions. Estrada has been identified by the state as the owner of Speak Easy, although he has refused to accept the designation. He was charged with a felony in September, becoming the first person to be charged with a cannabis crime since the state legalized the drug in June. Estrada’s attorney says both the alleged sales in question involved CBD products and not cannabis.

According to Las Cruces Sun-News, the council’s decision to revoke Speak Easy’s license hinged on the felony charges against Estrada. It’s unclear whether a criminal case against him will move forward.

Bill Could Change THC Limits For Hemp

New federal legislation is looking to increase the amount of THC allowed in hemp crops and codify the amount of delta-8 THC allowed in hemp products.

Last week Rep. Chellie Pingree (D-ME) filed the Hemp Advancement Act, which would increase the hemp THC limit from 0.3 percent to 1 percent as well as limit all types of THC to 1 percent, including delta-9 THC and delta-10 THC—two cannabinoids that have occupied a gray area of the law ever since hemp was legalized by the 2018 Farm Bill, resulting in an unregulated market of hemp products which claim to have psychotropic effects.

Colorado Company Acquires Reynolds Greenleaf

According to a press release, Colorado-based cannabis company Schwazze has acquired Reynold Greenleaf & Associates, LLC—owners and operators of R. Greenleaf dispensaries in New Mexico—and the equity of Elemental Kitchen & Laboratories, LLC. The company says it now has the right to purchase or acquire the cannabis licenses held by Medzen Services and R. Greenleaf Organics.

Schwazze CEO Justin Dye said the acquisition makes the company a multi-state operator (MSO). “With our regional expansion into New Mexico now complete, we have firmly graduated to the MSO category but with a differentiated regional focus which we and our stakeholders believe will be successful as we continue to position the Company for rapid expansion as the market opens for adult use consumption. We welcome the Greenleaf team to Schwazze, particularly Willie Ford who joins us in an advisory capacity, and are excited about our future together.”