Chewing Gum Heir Sinks Money Into Medical Marijuana
August 8, 2018
The Wrigley fortune was built on its domination of the chewing gum market, but an heir to the confectionery dynasty is investing millions in an industry that not so long ago had a far less wholesome reputation.
In a transaction some construe as the normalization of the medical cannabis industry, William “Beau” Wrigley Jr. led a $65 million round of funding in Surterra Wellness, one of Florida’s 14 licensed medical marijuana operators.
“I haven’t been this excited about a business in a very long time. We have an incredible and incredibly professional team that is approaching this industry with a great deal of discipline,” Wrigley, who also became chairman of Surterra’s board, said in a statement.
The Wrigley funding, which took place last month, is the latest in a number of recent transactions in the state’s budding medical-marijuana industry.
In an agreement announced last month, the Canadian firm Scythian Biosciences Inc. said it intends to spend $93 million to purchase a majority of 3 Boys Farms — a Florida medical-marijuana operator that has yet to begin selling products to patients — and an unnamed “health care organization.” In June, California-based MedMen announced it was paying $53 million to acquire Eustis-based Treadwell Nursery, another of the state-licensed “medical marijuana treatment centers.”
Surterra also has a license to sell medical marijuana in Texas and has an application pending in Virginia, CEO Jake Bergmann said in a telephone interview Tuesday.
The Wrigley stamp of approval could signify a shift in what is quickly becoming one of the state’s hottest commodities, following the passage of a 2016 constitutional amendment broadly legalizing medical marijuana in Florida.
“This is something that is really validation for what the team at Surterra has been building. We set ourselves apart by having the highest quality and consistency with organically produced products. And having someone who is a well-known American CEO who’s built and sold brands, to not just invest in us but join us as chairman is really a testament to what the whole team has built here,” Bergmann said.
The Wrigley company, established in 1891, was sold to Mars, Inc., a decade ago. But prior to that, with Beau Wrigley at the helm, Wrigley acquired Altoids and LifeSavers.
The Wrigley-led investment in Surterra is “good for the entire industry,” Bergmann said.
“It lets patients, investors, essentially everyone know that the business has evolved and is maturing to be a professional staple of American industry,” he said.
The latest equity round brings the funds pumped into Surterra by investors to $100 million, according to Bergmann.
The money will be used to expand Surterra’s Florida operations, double the number of employees to 750 by the end of the year, and invest in clinical trials, according to Bergmann.
Since lawmakers in Florida first legalized non-euphoric medical marijuana in 2014, the state’s cannabis industry has been plagued by legal and administrative challenges, delays in implementing the constitutional amendment and drawn-out rulemaking processes that have created frustration for legislators, patients, operators and investors.
A Tallahassee judge last week ruled that a state law capping the number of medical marijuana operators “directly contradicts” the 2016 constitutional amendment, which was approved by more than 71 percent of voters. But it’s unclear what, if any, impact Leon County Circuit Judge Charles Dodson’s decision will have since he did not stop health officials from continuing their current processes.
Still, marrying Wrigley — whose namesake brands have been found in checkout lanes around the world for more than a century — with one of the state’s leading marijuana purveyors can be seen as another step toward putting cannabis, which requires a doctor’s approval, in a category with other household-name products.
“This is about helping people. It can give people a normal life, let them go to school and be a normal member of society. It is incredible to craft that opportunity in an industry that is starting from scratch,” Wrigley said in the statement.
The candy heir pointed out that three-dozen states have some sort of authorization for cannabis.
“Once people can get over the perception curve, they see the many benefits of this,” Wrigley said.
by Dara Kam, The News Service of Florida
Charges Dropped Against Walnut Hill Man Accused Of Pulling Gun On His Wife
August 8, 2018
Charges have been dropped against a Walnut Hill man that was accused of pulling a gun on his wife and threatening to kill her.
Cody Helton Burroughs, 29, was charged in March with felony aggravated assault with a deadly weapon without the intent to kill. The State Attorney’s Office filed paperwork last week dismissing the charge.
The alleged victim reported that Burroughs pointed a gun at her and threatened to kill her, but prosecutors determined that they could not prove the claim.
“After reviewing all evidence in this case and speaking with all the witnesses, it was determined that the State cannot prove the allegations beyond a reasonable doubt,” Assistant State Attorney Blake Adams wrote.
Escambia County Makes Drainage Improvements On West Kingsfield Road
August 8, 2018
Escambia County Road Department crews recently installed a new drainage structure on West Kingsfield Road to divert stormwater drainage off approximately three-fourths of a mile of the thoroughfare between Cantonment and Beulah.
The project, located about a mile west of Highway 97, stops pooling and flooding around a dangerous blind curve. Removing the stormwater in that location helps correct one of many traffic hazards on the aging road, according to Escambia County.
Engineering and design for the project were done internally by county Public Works Department engineers Jim Hagon and James Duncan. The work was accomplished entirely by county personnel based at the road camp in Cantonment, using county equipment. And it works perfectly as demonstrated by recent heavy rains.
The new drainage structure is 30 feet wide and approximately 700 feet long, channeling stormwater into a receiving wetland that ultimately drains into the Perdido River through Rock Creek, which flows under Beulah Road north of the Perdido Landfill.
Property for the project was donated to the county by Frank and Elizabeth Westmark and Devine Farms, LLC.
Pictured top: Escambia County Public Works Roads Division: Henry Langford, equipment operator; Nathan Cobb, road Corrections Officer; Johnny Lyons, equipment operator; Matt Avery, field supervisor; Ralph Wilson, road construction specialist; Barron Ikner, equipment operator; Matt Giffin, road construction specialist; and Justin Knight, equipment operator. (Not pictured: Ronnie Lambert, field supervisor, paving crew.) Pictured below: The drainage system in operation. Photos for NorthEscambia.com
State Attorney’s Office Reviewing ‘Several Matters’ Involving Town Of Century
August 7, 2018
The State Attorney’s Office is reviewing unspecified items involving the Town of Century.
“We are doing a preliminary review regarding several matters regarding the Town of Century,” Assistant State Attorney Greg Marcille told NorthEscambia.com Monday evening. “A decision as to whether it will become a more complete investigation will be made at a later date.”
Marcille did not provide any further details.
Last week, three council members reportedly attended at least some portion of a closed door meeting with CPA Robert Hudson, Town Clerk Kim Godwin and the town’s auditors. The meeting was not advertised as a public meeting, which would forbid more than one council member from taking part under Florida’s Sunshine Laws.
Reports from town officials indicated that Sunshine Law violation allegations regarding the meeting were made to the State Attorney’s Office. However, Marcille did not confirm those reports.
Century Council Member Says Cut Employee Insurance Costs, Mayor Presents Financial Report
August 7, 2018
A Century council member called for major cuts in health insurance contributions for some town employees due to budget constraints, as Mayor Henry Hawkins presented a financial report showing fund balances of a couple of million dollars Monday night.
The town currently pays 99-percent of the cost of each employee’s insurance, and 78-percent of the dependent cost. Council President Ann Brooks called Monday night for the town to slash all town payments for dependent insurance in order to save money.
“How is that going to effect the lowest paid man with a family?” council member Sandra McMurray Jackson responded.
Brooks said the council needed to make a decision Monday night in order for the accountant to continue work to create next fiscal year’s budget.
“You are giving me 10 minutes to decide one someone’s life,” councilman Ben Boutwell said.
There are currently 16 employees on the town’s health insurance plan. Nine have employee only coverage, while seven have a dependent plan.
The council voted to continue employee coverage with United Healthcare, but took no action on employee insurance costs and employer contributions. Those details will be worked out at a future budget workshop.
Later in Monday night’s meeting, Mayor Henry Hawkins presented an unrelated two-page “Mayor’s Report” indicating fund balances. “I would like to let all of you know of the financial condition of the Town of Century,” the signed report stated.
The report showed $1,054,367 in reserve funds on July 7 and the exact same figure, $1,054,367 in unreserved funds, down about $137,381 from December 31, 2016. He said $172,000 was transferred in May 2017 from a water department reserve fund for lift stations. Hawkins confirmed verbally that the reserve fund and unreserved fund balances were exactly the same on July 7 as presented in his written report.
The second page of the report showed a reserve fund balance of $616,240. The report does not list any liabilities.
To read the mayor’s report, click here (pdf).
NorthEscambia.com photos, click to enlarge.
High School Lighted Sports Field Contract Expanded To Include Ernest Ward Middle
August 7, 2018
The Escambia County School District has expanded their lighted sports field maintenance to include Ernest Ward Middle School.
The $130,000 estimated contract was renewed with McLemore Electrict of Pensacola for the inspection, maintenance and repair of sports field lighting equipment on an as needed basis at Ernest Ward and Woodham middle schools and Escambia, Northview, Pensacola, Pine Forest , Tate, Washington and West Florida high schools.
The renewal price included an additional $75,000 to upgrade deteriorating wiring and the addition of the football field at Ernest Ward Middle in Walnut Hill.
Pictured: The lighted football field at Ernest Ward Middle School. NorthEscambia.com file photo, click to enlarge.
Two Gardening Programs This Week In Cantonment
August 7, 2018
Two gardening programs are coming up this week at Escambia County Extension in Cantonment.
Learn About Master Gardener Program
The Master Gardener volunteer program will hold an open house and information session on Wednesday from 9-10 a.m. at Escambia County Extension, 3740 Stefani Road in Cantonment.
The program is for those interested in the University of Florida Master Gardener Volunteer Program in Escambia County. Learn about training sessions, volunteer activities, and the role of Master Gardeners in the community. Applications will be available for interested participants for the 2018‐19 Fall/Winter Master Gardener training program.
For more information, call (850) 475-5230.
Garden Club Gardening Classes
The Florida Federation of Garden Clubs will sponsor gardening classes from 8 a.m. until 4 p.m. Thursday and Friday at Escambia County Extension, 3740 Stefani Road in Cantonment. The short course will teach gardening and environmental issues.
Lean how to plant and maintain ornamental grasses, native and pollinator plants, shade and rain gardening and alternatives to turf. The program is $50 for garden club members, $60 for non-members, lunch included. For more information, call (850) 293-4902.
Sheriff’s Office Offers ‘Business Decal Program’
August 7, 2018
The Escambia County Sheriff’s Office offers a “Business Decal Program” to allow responding deputies to quickly notify business owners in the event their business is victimized by criminal activity.
Participating businesses are given a decal which is placed on a door or other conspicuous area. Each decal has a code number which allows ECSO dispatchers to access pertinent contact information. Having quick access to business owners in the event of criminal activity improves the odds of a quick apprehension, according to the ECSO.
For more information, contact the Escambia County Sheriff’s Office Community Relations at (850) 436-9735.
Delay In Federal Approval Trims Medicaid Savings
August 7, 2018
Nearly $100 million the state assumed would be saved by changing a policy about patient eligibility for Medicaid won’t come to fruition this year.
Tom Wallace, assistant deputy secretary for Medicaid finance and analytics at the Agency for Health Care Administration, told members of the Social Services Estimating Conference on Monday that Florida hasn’t gotten necessary approval from the federal government to move ahead with the change.
Instead of a July 1 start date, the change in policy will likely go into effect Jan. 1. A projected $98 million reduction was included in the new state budget, which took effect last month. Now, the Scott administration says the savings should be about half that amount.
But Wallace said the state isn’t deterred.
“We are confident that we will get federal approval, we just don’t know when that would be,” Wallace told the Social Services Estimating Conference, comprised of House and Senate staff members as well as staff from the governor’s office and the Legislature’s Office of Economic and Demographic Research.
Wallace said Florida Medicaid officials have been in correspondence with the federal government about how the policy change would be implemented.
Federal law requires states to cover the costs of medical bills incurred by people for up to three months before they apply for Medicaid. So long as people qualify for Medicaid and the services are covered, hospital, doctor and nursing-home bills that accrue during that period will be absorbed.
The longstanding policy, officially known as “retroactive eligibility,” protects poor people from unpaid medical bills that they cannot afford and helps ensure that hospitals and nursing homes are paid for services they offer to Medicaid-eligible people.
The policy change would eliminate the requirement that people have three months to apply for Medicaid and make them apply the same month as they need care.
AHCA projects that 39,000 people would be impacted by the change, which does not apply to pregnant women and children. That means the policy change would heavily impact seniors and people with disabilities, and the move has come under fire from critics, including Democrats.
Meanwhile, this is not the first time the Scott administration has revised the estimated savings from the change.
In a March 2017 letter to former U.S. Department of Health and Human Services Secretary Tom Price, AHCA Secretary Justin Senior said Florida could save $500 million if the policy were eliminated. Months later, the Scott administration floated the proposal to the Legislature for consideration during the 2018 session. Ultimately, the $98 reduction was included in the state budget that began July 1.
While the full savings lawmakers anticipated won’t be realized, Wallace told budget conferees that overall costs for the Medicaid program this year should be nearly $732 million less than what was appropriated in the budget. Nearly $228 million of that surplus is general revenue. The lower cost is due in part to a continued dip in Medicaid enrollment.
by Christine Sexton, The News Service of Florida
Biscuits Take Series Finale Against Wahoos
August 7, 2018
Wyatt Strahan (L, 6-9) was tagged for nine runs in the shortest outing of his career as the Biscuits won the series finale 12-2 Monday night at Blue Wahoos Stadium.
Strahan lasted just 1.1 innings before exiting the game. Montgomery scored five runs in the first inning before adding four more in the second. The Biscuits had sent 19 men to the plate as the game reached the third inning.
Pensacola’s offense came late when Aristides Aquino led off the seventh inning with his 17th homer of the season. For the second consecutive season, Aquino has tied Juan Duran’s record of most home runs by a Wahoo season, this time with 25 games still remaining. Shed Long followed with a single and later scored on Narciso Crook’s double to left, which made the score 12-2. Long finished the contest with a 3-for-4 night.
Benton Moss followed last week’s complete game with six shutout innings as the right-hander earned his fifth win of the season. He has now extended his scoreless-inning streak to 13.1 innings.
The loss snaps Pensacola’s series unbeaten streak at 12. The club had gone over two months since they had lost a series, dating back to the end of May when Jacksonville took two of three in a rain-shortened series. During that stretch, the Blue Wahoos went 38-19 improved their season record from 22-33 (last place) to 59-52, which is five game back of Biloxi for the best overall record in the Southern League.
After an off day tomorrow, the Wahoos will make the short trek across I-10 for a five-game tilt against the Mobile BayBears. Pensacola left-hander Seth Varner (6-2, 2.91) will open the series for the Blue Wahoos while RHP Joe Gatto (3-4, 5.59) is expected to toe the rubber for the Los Angeles Angles Double-A affiliate.