Kentucky Hemp Ingredient Processor Raises $4.5M in Funding

8/05/2021

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Kentucky’s Victory Hemp Foods, a business-to-business food ingredient processing company, has raised about $4.5 million to expand its production capacity, Louisville Business First reports. The firm is using the funds to expand capacity at its Carrollton production facility and increase contracts with the farmers who supply its raw material needs.

Victory produces hemp seed oil, hemp protein, and roasted and shelled hemp seeds, which are used in plant-based protein products. The firm has also developed a concentrated hemp protein and clarified oil.

The company has received $230,000 in low-interest loans from the Governor’s Office of Agricultural Policy, two equity investments from the Kentucky Enterprise Fund, and has 45 angel investors, 10 of which are based in Kentucky.

Chad Rosen, founder and CEO of Victory, said the company has already sent samples of the concentrated hemp protein to “some of the major meat-analogue companies” after spending 30 months developing a scalable process for the product.

“I realized the future of the business was to supply these food brands that are changing the way we eat with a sustainable, scalable, good-tasting, highly-nutritious substrate for all their foods in the form of protein powder. … What we’re doing really relates to regenerative agriculture, building soil, the health and wellness of our customers, and so all those things and just the vast impact of what we’re trying to do—it’s going to be a long window for development.”— Rosen to Louisville Business First

Rosen indicated there is still about $700,000 left in the funding round and Victory is planning to launch a Series B fundraising round some time next month.

Editor’s note: A previous version of this article incorrectly said there was just $70,000—not $700,000—of Victory’s funding round left.

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Firm Begins Testing Cannabis as Diabetic Nerve Pain Treatment

8/05/2021

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Chester Springs, Pennsylvania-based Affinity Bio Partners has launched a clinical study to test the potential efficacy of cannabis for diabetic nerve pain. The company said an estimated 47% of patients diagnosed with diabetes have some peripheral neuropathy.

The study is being conducted in partnership with the Serena Group.

“The future of medical cannabis and cannabinoids as medical treatments are dependent upon properly performed clinical studies. It is time for companies to invest their money into performing clinical studies that prove safety and efficacy regarding their products.”— Christina DiArcangelo, Affinity CEO, in a press release

A 2015 University of California, San Diego study published in the Journal of Pain found that inhaling cannabis could blunt diabetic neuropathic pain for several hours.

Dr. Mark Steven Wallace, chair of the Division of Pain Management at the UC, San Diego and lead author of the study, noted in an interview with EndocrineWeb that his research found “the more concentrated the dose, the more relief people got.”

“There is a lot of evidence on the positive effects of cannabis on the treatment of neuropathic pain,” Wallace said in the report. “However, there are few placebo-controlled studies and very few studies that have looked at different doses.”

The UC, San Diego study was the first of its kind to also look at the cognitive effects of cannabis in diabetic patients, which found the effects were minimal.

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Federal Judge Rules Cannabis Logo Infringes on Kool Cigarette Trademark

8/04/2021

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A federal judge on Monday permanently blocked a cannabis vape company from using a product logo featuring interlocking “OOs” after a legal challenge by Kool cigarette brand owner ITG Brands, Law360 reports. ITG claimed, successfully, that Capna Intellectual had violated its trademark by using interlocking OOs in the branding for its Bloom brand.

ITG called the Bloom logo a “blatant ripoff of [its] valuable trademarks.”

Bloom & Kool logo comparison
Similarity between the overlapping OO’s in Bloom and Kool

The order from U.S. District Court Judge Otis D. Wright permanently prohibits Capna from using the logo “or any other marking containing interlocking OOs and/or circles.” The decision follows a preliminary injunction in June that temporarily prevented Capna from using the Bloom logo. The order also requires Capna to notify all of its retail distributors about the decision by November 15 and give them the option to return any materials with the logo in exchange for new ones.

The decision also requires Capna to destroy any products and materials with the interlocking OOs by December 31 and “use its best efforts” to remove any materials that are later found to have the logo, the report says.

Kool has utilized the interlocking OOs logo for more than 88 years. When implementing the original injunction, Judge Wright said he expected ITG Brands’ claim would be successful because both products are smoking-related.

The Bloom Brands website is currently logo-less but features a banner stating: “Bloom is working on a new look! Stay tuned for a major announcement.”

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Social Media Ban Included in Montana Cannabis Draft Rules

8/04/2021

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The Montana Department of Revenue, which is tasked with overseeing both the adult-use and medical cannabis industry in the state, has proposed draft rules for industry advertising, including a ban on social media ads, KPAX reports. The rules are not final, and the agency will be taking public comments for the next several weeks.

In addition to the ban on advertising on social media, cannabis companies would not be allowed to advertise on TV, radio, or in newspapers. Companies would be allowed to have websites but would have to take “appropriate measures” to ensure people under 21-years-old could not access them.

Cannabis companies would also be prohibited from offering promotional items or sponsoring charitable events or sports, or advertising on billboards, or use banners or flags as outdoor signs, which would have to be attached to a building or permanent structure.

Businesses would be allowed just two outdoor signs—limited to 11 square feet or smaller—which would be required to include disclaimers about the risk of cannabis use.

J.J. Thomas, owner of the dispensary chain the Higher Standard, told KPAX that the state’s advertising rules for the industry—which is currently only medical—“already makes it really hard on businesses to succeed in general.”

“We’re already limited on things we can say, images that we can use, the way websites are accessed, signage on your buildings, and all this stuff. … It sounds like they’re basically taking it down another level to make it even harder than it already is—to the point where we don’t really know, is there anything you can do?”— Thomas to KPAX

If approved, the new Montana advertising rules won’t take effect until Jan. 1, 2022, which is the date that adult-use sales are expected to commence in the state after voters approved the reforms during the 2020 General Election.

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Cannabis Taxes Yield $2M in Scholarships for Pueblo County, Colorado

8/04/2021

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Pueblo County, Colorado is awarding more than $2 million in cannabis excise sales tax scholarships to local institutions, including $1 million to Pueblo Community College (PCC), the Pueblo Chieftain reports. The Colorado State University (CSU) Pueblo Foundation will receive $616,000; CSU Pueblo Athletics will see $385,000; and the Pueblo African American Concern Organization will receive $26,000.

The entities will be allowed to distribute the funds to students at their discretion so long as the students are residents of the county. Last spring semester, PCC awarded 10 scholarships under its Return to Earn program—for students who return to college later in life—funded by cannabis tax dollars.

PCC President Patty Erjavec said having the funds is “a tremendous tool” for the college’s advertising and recruiting department “because they know they have these funds in their back pocket and it’s easy to get to.”

“We know we have a unique, diverse community, and so to have the opportunity to provide scholarships to a diverse group of students is a real advantage.”— Erjavec to the Chieftain

Erjavec added that in the spring semester, PCC funded 752 scholarships with $800,000 in scholarship money derived from cannabis taxes.

CSU Pueblo Director of Athletics Paul Plinske told the Chieftain that that funding helps the program “bring in national-caliber student-athletes to enrich the life of CSU Pueblo.”

The Colorado scholarship program was first approved by voters in 2015.

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40 Tons: Cannabis & Apparel for Restorative Justice

8/03/2021

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If you ask 40 Tons founding member Anthony Alegrete about the very beginning of the brand, he would go back to 20 years ago when he and Corvain Cooper sold their first gram of cannabis together — but 40 Tons was only officially founded in the last few years by Anthony and his wife Loriel Alegrete, and their friend Corvain. Currently, 40 Tons is an equity-focused social impact cannabis brand in California’s adult-use cannabis market that sells apparel and accessories to support those behind bars for cannabis charges, and goes further to provide support as they re-enter society.

Corvain Cooper’s story touched a lot of people in the months before he was granted clemency. He was arrested just before the statute of limitations was up on a conspiracy to traffic cannabis and financial crimes. Despite the small amounts of cannabis that he had shipped years prior, he was tried for more than 40 tons of cannabis that was trafficked throughout the entire operation. Corvain was given a life sentence in 2014 — worse, he was to serve that sentence across the country in Louisiana, far from his family and support system. By 2020, social justice was finally being widely discussed in the cannabis industry and Corvain’s story started gaining attention. At the end of January 2021, with the help of many individuals and organizations, Corvain was finally granted clemency and released from prison back to his family home in Los Angeles.

Now, Corvain makes up one-third of the founding team of 40 Tons, a brand named after the amount of cannabis that was used against him and others caught up in the conspiracy. The brand first picked up steam when organizations and charities reached out to Loriel and Anthony in the months leading up to Corvain’s release to help them establish a foundation for a business. That is when the first pitch deck for 40 Tons was born, and the mission went beyond freedom for Corvain: 40 Tons is a brand focused on helping those who are unjustly sentenced behind bars for cannabis crimes.

“There’s still so much work to be done. We made a huge win championing behind our friend Corvain and we’re on to our next one,” said CEO Loriel Alegrete. “We just won’t stop until everyone is home who has gotten these horrific sentences for a plant.”

The brand operates in a legally compliant fashion which allows Corvain to participate as a brand ambassador without risking the conditions of his parole. As the incarcerated come home, 40 Tons will have a piece of merchandise designed for them along with some funds to promote on social media. This provides a true foundation for individuals to get back into the industry and gain access to real commerce. Additionally, a part of each purchase on the site will be donated to people still behind bars to help offset the costs of imprisonment. And the cost on the incarcerated is higher than most citizens realize: every phone call a prisoner makes incurs costs on the person calling and the family member who picks up, not to mention that many essential items like reading glasses aren’t provided to inmates. The team also spends funds providing postage for letter-writing campaigns, which brings joy to people serving time.

These are the reintegration efforts carried out by 40 Tons, but it goes without saying that everyone who does business in the cannabis industry should focus on social equity and reintegration. Amplifying the cause on social media, signing petitions, listening to people like Corvain, and educating those who haven’t woken up to the hypocrisy are only the first steps into this work. Taking action one step further would be to put income from a cannabis brand directly into the cause. Mentoring is another viable method of helping provide a start for those reentering society after being incarcerated for cannabis entrepreneurship.

Anthony, Corvain, and Loriel are eternally grateful for the mentors that have guided them as they forge ahead with 40 Tons. When the company was just an idea, Brittany Barnett from the Buried Alive Project followed through with a loan on favorable terms that helped them get the website up and running, and many other industry vets have stepped up for the trio. Other mentors include Doc Ray, who has been teaching them about cultivation; Marie Montmarquet and her brother Allen Hackett of MD Numbers, who provide insights into the economics of the space and into cannabis licensing, product sourcing, and other operations; and Kamel Jacot of Weedmaps. Zoe Wilder has also been great for press and media, and Nathan Cozzolino of Rose has been a huge help. Naphtali Rodriguez and Aaron Silverman were instrumental in the building of the brand and provided pro bono services to launch the 40 Tons brand in the very beginning. When asked about mentorship, they couldn’t leave Dr. E. Lance McCarthy out, a man that has worked closely with them to bring economic development to Los Angeles through a partnership with the Urban Hip Tech Foundation. These unsung heroes didn’t ask for recognition, but Loriel and Anthony say it’s important that people know it took mentorship and guidance for them to step into the power of their brand.

As the brand continues to build a following, 40 Tons is close to releasing collaboration gummy with the Evidence line that will be available in Cookies California stores. But their goals go further than white labeling one product — their true interest is in acquiring their own license and eventually achieve full vertical integration. The 40 Tons brand is working on some large endeavors and will have an entire line of Cannabis products that will release Summer 2021. The brand is specifically looking to operate in Hawthorne, California, due to local support for social equity cannabis businesses.

“Hawthorne is doing some really great things in their community and we’d love to work with that city as it relates to social equity in cannabis,” said Anthony Alegrete.

On top of all of these endeavors, the 40 Tons team is constantly grinding. Loriel is just over a year away from acquiring her nursing degree, which she intends to use to raise awareness about the benefits of the cannabis plant. She also serves as a member of the advisory board for Marijuana Matters DC, an organization that acclimates people to society by teaching about job interviews, computers, and other life skills that aren’t available while incarcerated. Their work never stops, and their execution is evolving, but the mission of 40 Tons remains steady.

“We just want to bring fair light to these unjust laws, not because we’re victims but because they’re legitimately not right,” said Anthony Alegrete. “We just want what’s right, we want to earn our way and start at the same point as everyone else and receive based on the merits that we put into the work.”

There are many ways to support 40 Tons and Corvain Cooper as he continues to rebuild his life after receiving clemency. First, visit the 40 Tons website to buy merchandise and apparel; also, visit Corvain’s GoFundMe to support his family and reentry. People in California can visit Cookies retail stores which currently carry Amplifier Art-branded flower with Corvain on the package, and soon the brand’s Evidence gummies. These actions will support the cannabis-incarcerated and their reentry as Loriel, Anthony, and Corvain continue their fight for justice against the unjust drug war.

40 Tons is currently focused on bringing awareness and providing support to Parker Coleman, Luke Scarmazzo, Pedro Moreno, Ismael Lira, Michael Woods, Damion Sleugh, and many others. Follow the links to a social share to learn more about their unjust sentences and to get each person’s address to write letters in solidarity as they fight for freedom.

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UK to Study Using Cannabis-Based Medicine to Treat Brain Tumors

8/03/2021

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The United Kingdom (U.K.) National Health Service (NHS) and Brain Tumour Charity are partnering on research to determine whether cannabis-based medicine Sativex paired with chemotherapy medication temozolomide can treat glioblastoma, a recurrent brain tumor, the Guardian reports. Once underway, it will be the first such study of its kind in the world.

Sativex is one of three cannabis-based medicines used in the NHS. It is currently given to patients with multiple sclerosis whose condition has not improved despite treatment.

Susan Short, a professor of clinical oncology and neuro-oncology at Leeds University and the lead investigator of the study, said the cannabis drug “may kill glioblastoma tumor cells and that it may be particularly effective when given with temozolomide chemotherapy.”

“So it may enhance the effects of chemotherapy treatment in stopping these tumors growing, allowing patients to live longer. That is what we want to test in the study.”— Short to the Guardian

The Brain Tumour Charity is funding the clinical trial and will recruit 232 patients early next year from at least 15 hospitals, including specialist cancer centers, across the U.K. Two-thirds of study participants will receive Sativex and temozolomide while the remaining will be given the chemotherapy drug and a placebo.

The trial follows an earlier phase one trial involving 27 patients that investigated the safety of giving Sativex and temozolomide together.

Dr. David Jenkinson, the Brain Tumour Charity’s interim chief executive, called those early-stage findings “really promising.”

“We hope this trial could pave the way for a long-awaited new lifeline that could help offer glioblastoma patients precious extra months to live and make memories with their loved ones,” he told the Guardian.

Participants in that phase one trial that were given Sativex were still alive a year later than those who had a placebo.

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Ohio Lawmakers Introduce Cannabis Legalization Bill

8/03/2021

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Two Democratic lawmakers in Ohio have introduced a bill to legalize cannabis for adult use in the state, WXIX reports. The move comes as cannabis legalization’s own advocates launched their campaign to force the Legislature to take up the reforms or put the issue to voters if lawmakers decline to consider the initiative if it is approved by voters.

The bill backed by state Reps. Casey Weinstein and Terrence Upchurch would allow for possession, use, and cultivation of cannabis by adults 21-and-older, with a 10% excise tax on sales. Revenues derived from cannabis sales would be used for K-12 education, infrastructure, and up to $20 million per year for two years would be earmarked for clinical trials studying the efficacy of cannabis for medical conditions of veterans and preventing veteran suicide, the report says.

The bill, Upchurch said, “is much needed in Ohio, and it’s time for Ohio to become a national leader in marijuana decriminalization and legalization.”

“This bill is more than just about legalization, it’s about economic and workforce development, it’s about decriminalization, and it’s about healthcare! The time is now, and I look forward to getting this done in a bipartisan fashion.”— Upchurch via WXIX

Weinstein described the measure as “a big step for criminal justice reform, for our veterans, for economic opportunity, and for our individual liberties.”

Republican lawmakers interviewed by WXIX were opposed to the measure and skeptical it would get a vote in either chamber of the Legislature.

State Rep. Sara Carruthers said she is “wholeheartedly against it” and “never been for [cannabis], never tried it” and is “allergic to it.”

“I understand the idea behind it, but I have seen what it has done to states and to people,” she said in the report. “It may not lead everyone to worse drugs, but you will be hard-pressed to find someone who is a heroin addict that didn’t start with it.”

Rep. Bill Seitz said he had not read the bill but was “doubtful it could pass” noting that his legislation to add autism spectrum disorder to the state’s medical cannabis program hasn’t made it out of committee.

The cannabis legalization bill still must be assigned to a committee.

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Connecticut Community College Offers Cannabis Horticulture Course

8/03/2021

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Connecticut’s Naugatuck Valley Community College (NVCC) is set to offer an online pilot cannabis cultivation course this fall to current Horticulture majors. This course will focus on soils, plant biology, plant nutrition, pest management issues, and harvesting.

Connecticut lawmakers approved adult-use cannabis legalization reforms in June and portions of the law—including use and possession—took effect July 1.

Christopher J. Tuccio, program coordinator of Horticulture and professor of Horticulture in NVCC’s STEM Division, said that as cannabis legalization reforms pass throughout the U.S. “it is important to train new horticulturists on the techniques and science of cannabis cultivation.”

“I am very happy to be adding new, diverse course offerings such as this to our Horticulture curriculum at NVCC. This is a burgeoning field within the industry. Students would do well to learn about the future prospects of this field.”—Tuccio in a press release

NVCC is the only community college in Connecticut that offers a horticulture degree.

Last year, Connecticut’s Quinebaug Valley Community College (QVCC) debuted a certificate program in cannabis studies—the first in the state to offer the track. That program includes classes in alternative medicine, botany, business, and communications. While the program offers horticulture classes, QVCC does not offer a standalone horticulture degree program.

Students enrolled in QVCC’s Cannabis Studies program study the legal challenges confronting cannabis farming, production, and consumer use; cannabis cultivation techniques and the cannabinoid extraction processes; farming economics; government regulations and laws affecting small business; and developing opportunities in western and alternative medicines and therapies.

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Oklahoma Cannabis Regulators Sued Over Closed-Door Meetings

8/02/2021

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A lawsuit filed against the Oklahoma Medical Marijuana Authority (OMMA) accuses the agency of violating the state’s Open Meetings Act, Fox 25 reports. Plaintiffs allege that the board, without public input, passed new emergency regulations for the cannabis industry. The lawsuit names OMMA Director Kelly Williams, her secretary, and new members of the board of health and food safety standards.

Attorney Ron Durbin, who filed the lawsuit, and his co-counsel on the case Rachel Bussett said the rules were enacted despite there being no agenda posted, no outreach to the state’s cannabis community, and that the members voting on the rules were given little time to read them.

“They did it in a sneaky and underhanded way. Intentionally or unintentionally, I’ll give them the benefit of the doubt.” — Bussett to Fox25

Durbin also filed a separate lawsuit in April challenging the implementation of the METRC’s seed-to-sale tracking system, claiming it would allow for a monopoly.

OMMA denies the claims of the lawsuit, telling FOX25 in a statement that the agency “continues to follow rules regarding public meetings and the opportunity for public comment.”

“We look forward to further engaging with licensees and other community members when the opportunity for public comment becomes available in the coming months,” the OMMA said in the statement. “The Oklahoma Medical Marijuana Authority is committed to protecting patients and fulfilling our mission to ensure safe and responsible practices in licensing, regulating, and administering the medical marijuana program. While keeping a focus on patient safety, [Oklahoma State Department of Health (OSDH)] and OMMA diligently following legislative rules and intent.”

Durbin said he would like to see OMMA moved from under the authority of the OSDH and under the purview of the Oklahoma Bureau of Narcotics.

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Maryland Cannabis Legalization Referendum Likely for 2022 Ballots

8/02/2021

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Maryland House Speaker Adrienne A. Jones (D) has indicated that she will support a cannabis legalization referendum on 2022 ballots and announced a plan to create a cannabis workgroup to lay the framework for the industry if the reforms are approved by voters, Maryland Matters reports. Jones said the House “will pass legislation early next year” to put the question to voters.

“While I have personal concerns about encouraging marijuana use, particularly among children and young adults, the disparate criminal justice impact leads me to believe that the voters should have a say in the future of legalization.” — Jones via Maryland Matters

Senate President Bill Ferguson (D) said the chamber would also move forward with advancing adult-use legalization, noting that cannabis is legal in Washington D.C. and that the state “must do the same.”

“…A large majority of Marylanders in both political parties support an equitable framework that immediately addresses the injustices in our current criminal justice system,” Senate President Ferguson said in the report.

The Maryland House Cannabis Workgroup will be headed by House Judiciary Chair Luke Clippinger (D), who said in a statement that “cannabis use has had a disparate impact on people of color for too long with no real impact on public safety.”

“This workgroup,” he said, “will establish the legal frameworks necessary to fully implement the legalization of marijuana and learn from the mistakes that other states have made before us.”

The workgroup will focus on regulatory and licensing structures, including social equity; criminal justice reforms, including expungement of cannabis-related charges and the release of individuals currently incarcerated for cannabis crimes; criminal and traffic law changes related to cannabis; the expansion of substance abuse treatment programs; and taxation and revenue distribution.

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Canada’s Mohawk Council of Kahnawà:ke Signs Cannabis Agreement with Health Canada 

8/02/2021

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The Mohawk Council of Kahnawà:ke (MCK) has signed a Memorandum of Understanding (MOU) with Health Canada to establish its own laws and regulations for the production and sale of cannabis within the MCK territory.

The MOU is the first such agreement between a First Nation and the Canadian government.

Tonya Perron, MCK lead on the cannabis file, called the agreement “an important step in the ongoing work to create a safe, well-regulated industry within the Territory.”

“It sets out the terms and conditions that will govern the sharing of information between Health Canada and MCK, as well as between Health Canada and the Kahnawake Cannabis Control Board (KCCB), with respect to cannabis cultivation and processing licenses. The MOU encapsulates the harmonization of the dual licensing system in Kahnawà:ke, which requires the issuance of a license from both the KCCB and Health Canada in order to cultivate and/or process cannabis legally within the Territory.” — Perron in a press release

The MOU provides for cooperation between Health Canada and the KCCB for cannabis industry inspections, information sharing between Health Canada and the Peacekeepers—the primary law enforcement service within the Territory—and provides assistance from Health Canada to the KCCB in acquiring more expertise in the oversight of the cannabis supply chain.

The Kahnawà:ke enacted their own Cannabis Control Law in 2018 which required an agreement with Health Canada before licenses would be issued.

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Study: HIV Patients Who Use Cannabis Daily See Lower Neuroinflammation

7/30/2021

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HIV-positive patients who consume cannabis daily have lower levels of neuroinflammation than non-cannabis consuming HIV-positive patients, according to a University of California, San Diego study published this week in the Journal of the International Neuropsychological Society.

Researchers found that HIV-positive subjects who consumed cannabis daily possessed lower levels of chronic inflammation than did HIV-positive subjects who didn’t use cannabis and that the chronic inflammation results of those who used cannabis were similar to those of HIV-negative subjects with no history of cannabis use.

“Taken together, findings are consistent with the notion that cannabinoids may modulate inflammatory processes in PWH [patients with HIV], specifically in the CNS, and suggest a link between lower CNS inflammation and better neurocognitive function. … Future studies in PWH are needed to investigate potential distinct effects of specific cannabinoids, and adult medicinal use, on brain structure and function.”— “Daily Cannabis Use is Associated With Lower CNS Inflammation in People With HIV,” Journal of the International Neuropsychological Society,” July 27, 2021

The study included 263 participants, including HIV-negative non-cannabis, and cannabis users; and HIV-positive cannabis, and non-cannabis users.

A separate study published last year in the Neurology, Neuroimmunology, and Neuroinflammation journal last year found recent cannabis use by people with HIV was associated with reduced inflammatory markers cerebrospinal fluid and blood. The study authors, also from UC, San Diego, concluded that the results of the study were “consistent with the compartmentalization of immune effects of cannabis.”

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Seth Rogen’s Houseplant Brand Cuts Ties with Canopy Growth

7/30/2021

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Houseplant and Canopy Growth mutually announced the end of their Canada-based partnership in a press release this week. Houseplant, the cannabis brand founded by longtime comedy collaborators Seth Rogen and Evan Goldberg, has been partnered in Canada with the cannabis corporate giant since 2019 but independently launched in California earlier this year in March.

It was not immediately clear whether there might be more reason for the separation but according to the press release, both parties “believe the time is right for the Houseplant brand to develop independently while Canopy advances its focus on wholly-owned brands for the Canadian market.”

Some Houseplant products will continue to be available to Canadian cannabis retailers until the end of September. Houseplant says it intends to relaunch in Canada with products that are more consistent with its California offerings.

“Canada is where it all started—for us as people, and for the brand. This is not an exit from the Canadian market, but a chance for us to evolve the brand.” — Seth Rogen, in a statement

“The recent launch of Houseplant in the United States has given us a clear benchmark for what Houseplant stands for, and how we plan to bring the brand to life globally,” said Houseplant CEO Michael Mohr. “While our collaboration with the Canopy team has been fruitful and we continue to hold similar views on the opportunities ahead, we believe the time is right for us to focus on Houseplant independently.”

“We’re proud of our collaboration with Houseplant,” said Rade Kovacevic, President and Chief Product Officer of Canopy Growth. “As we move forward, Canopy will advance our focus on our wholly-owned brands for the Canadian market and we wish the Houseplant team the best in their future endeavors.”

In addition to its cannabis offerings, Houseplant sells cannabis smoking accessories through its website including table lighters and ashtrays designed by founder Seth Rogen.

Houseplant is not the first celebrity-backed brand to part ways with Canopy Growth this year after More Life—the cannabis brand founded by Canadian rapper Drake—announced its separation from Canopy Growth in June. Other celebrity brands currently operating in partnership with the Canadian cannabis firm include Snoop Dogg’s Leafs By Snoop and Martha Stewart CBD.

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Research Suggests Cannabis Use Not Associated With Reduced Motivation

7/30/2021

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A study by researchers affiliated with Florida International University suggests that cannabis use by teens is not independently associated with an increased risk of “amotivational syndrome.” The study authors reported that adolescents’ cannabis use was not associated with any significant changes in motivation, apathy, or engagement after researchers controlled for use of alcohol and tobacco, among other potential factors, such as age, sex, and depression.

Amotivational syndrome describes the introversion, passivity, and lack of achievement orientation commonly observed among adult cannabis users.

“Our results do not support a prospective link between cannabis use and reduced motivation among adolescents. Although most observed associations were accounted for by covariates, greater cannabis use was cross-sectionally associated with lower perceived value of school, which may contribute to poorer educational and later life outcomes.” – “Evidence Lacking for Cannabis Users Slacking: A Longitudinal Analysis of Escalating Cannabis Use and Motivation among Adolescents,” Journal of the International Neuropsychological Society, July 19, 2021

Researchers investigated 401 adolescents ages 14-17 recruited from Miami-Dade County, Florida middle and high schools who, at baseline, completed five bi-annual assessments. The researchers assessed motivation at three time points using the Apathy Evaluation Scale and the Motivation and Engagement Scale questionnaires, which are designed to measure disengagement, persistence, planning, self-efficacy, and valuing school. The team controlled for relevant covariates using latent growth curve modeling to characterize patterns of cannabis use and motivation over time, examining bidirectional influences between the processes.

“On average, adolescent cannabis use frequency increased significantly over time,” the researchers said. “The disengagement and planning facets of motivation also increased significantly over time, whereas other aspects of motivation remained stable.”

At baseline, the researchers found that the greater the cannabis use, the greater disengagement, lower planning, and lower valuing of school; but greater baseline cannabis use also predicted lesser increases in disengagement over time.

“After controlling for the effect of sex, age, depression, and use of alcohol and nicotine, only the baseline association between cannabis use and valuing school remained significant,” the researchers concluded.

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Lawsuit Challenging Illinois Cannabis Social Equity Licensing Dropped

7/30/2021

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Sozo Illinois Inc., a Michigan cannabis company whose lawsuit temporarily halted the Illinois cannabis license lottery, has voluntarily dropped its challenge, according to the Chicago Tribune. The move came on the same day that Illinois Black and Latino cannabis advocates held a news conference asking SoZo to drop the lawsuit.

Sozo Illinois indicated they withdrew the lawsuit after hearing from other social equity applicants, describing the decision as “difficult” but still characterizing the new licensing structure as a “deeply flawed and unconstitutional process.”

Edie Moore, Chicago NORML executive director, called the lawsuit “a distraction that showed a complete disregard to people working in the Illinois cannabis industry as social and racial advocates.”

The lawsuit retraction set the stage for the first of three license lotteries on July 29, a process delayed by a year due to the coronavirus pandemic and social equity concerns. The next license lotteries will be held on August 13 and August 19, the report says.

In their lawsuit, SoZo claimed the new law unfairly discriminated against out-of-state applicants and dropped a bonus point system which awarded firms that hired applicants who were most negatively impacted by the War on Drugs. SoZo also alleged that Illinois politics is “marred by backroom self-dealing between politically connected and powerful factions that undermines the supposed benefits to the public.”

Charity Greene, a spokesperson for Gov. JB Pritzker (D), said in a statement that “the top priority for the Pritzker administration remains establishing a legal cannabis industry in Illinois that is equitable and reflects the diversity of communities across the state.”

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Lawsuit Filed Over Massachusetts Prisons’ Use of Faulty Drug Tests

7/30/2021

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A lawsuit filed in Massachusetts is seeking to stop the state Department of Corrections (MDOC) from using a drug test manufactured by Sirchie Acquisition Company, LLC that attorneys for plaintiffs describe as faulty. The test is used on incoming mail to inmates and the lawsuit claims have led to a “slew” of false-positive results, with one MDOC employee estimating false-positive results as high as 80%.

Ellen Leonida, a partner at BraunHagey & Borden said they brought the lawsuit “to protect disempowered people incarcerated by the DOC from the unconscionable decision to use these tests in the face of overwhelming evidence of their inaccuracy.”

“We also intend to hold the drug companies liable for knowingly profiting from the misuse of these tests and the misery they are causing.”— Leonida in a statement

The lawsuit claims that the Sirchie test claims to detect synthetic cannabinoids but is fooled by innocuous chemicals found in most commercial paper. The complaint alleges the accuracy of the test to “witchcraft, phrenology or simply picking a number out of a hat.”

Once a test comes back positive, prisoners are given two choices: plead guilty and accept punishment or maintain innocence and be subjected to solitary confinement and loss of privileges for months while the agency completes a proper laboratory test. If the prisoner chooses to have a proper test conducted, they are subject to fines and expenses for paying for the test.

The lawsuit contends that the use of the test interferes with the fundamental right to counsel and due process as prisoners fear communication by mail, including with their court-appointed counsel, due to the false positivity rate of the tests.

In addition to the corrections department and Sirchie, the lawsuit names the drug company’s sales agent Premier Biotech, Inc as defendants. Nonprofit law firm Justice Catalyst Law is also representing the plaintiffs.

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Ex-NFL Players Accused of Cannabis Company Money Laundering and Fraud

7/29/2021

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Julio Jones of the National Football League’s (NFL) Tennessee Titans is being sued in connection with money laundering and fraud, the Nashville Tennessean reports. Filed by California cannabis company Genetixs in Los Angeles Superior Court, the suit names Jones, former Atlanta Falcons teammate Roddy White, and his company SLW Holdings, as defendants.

Genetixs alleges the pair illegally harvested and sold over $3 million a month of cannabis on the unregulated market, the report says.

In the lawsuit, Jones and White are accused of working with John Van Beek, an ex-Genetixs manager who was fired in March 2021. Van Beek is accused of “breach of contract, the failure to report cannabis sales and not providing budgets, invoices, expenditures and other paperwork to the company,” the report reveals.

Furthermore, Van Beek is alleged to have turned off cameras in the facility and at one point prevented a new manager from entering Genetixs’ campus. Additionally, the group is alleged to have abandoned the facility to the landlord, looting 22 cannabis harvests and damaging machinery worth millions of dollars. As a result of the facility abandonment, the California Department of Cannabis Control is asking Genetixs to forfeit their license on the grounds they are not operating at their designated location, according to the Tennessean.

Attorney Rafe Emanuel, who represents Jones through SLW Holdings, told the Tennessean that “the vague allegations against SLW Holdings LLC and its members [White and Jones] are meritless” and that he looks forward to defending the “conspiracy theories” against his clients in court.

The Tennessean reports SLW Holdings filed a related restraining order against Genetixs in May, but the accusations have not been substantiated in court.

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Former Dispensary Owner Faces Federal Charges for Bribery and Income Tax Fraud

7/29/2021

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The former owner of a California cannabis retailer has been charged in federal court with bribery and failing to report millions of dollars in income to the Internal Revenue Service (IRS), KSBY reports. Helios Raphael Dayspring, the founder of the Natural Healing Center, which has shops in Grover Beach and Morro Bay, has agreed to plead guilty to the felony charges, pay $3.4 million in restitution to the IRS, and cooperate with an ongoing investigation.

That ongoing investigation is reportedly part of an ongoing public corruption inquiry in San Luis Obispo County, which has been public since March 2020 when the Federal Bureau of Investigation served a search warrant at the county Government Center.

In the plea agreement, Dayspring admitted to bribing County Supervisor Adam Hill to support his cannabis businesses. Dayspring paid hill a total of $32,000 in exchange for votes favoring legislation that permitted Dayspring’s cannabis farms to operate before getting final approval. Dayspring also admitted to attempting to bribe the former Grover Beach Mayor John Shoals in 2017 in exchange for two dispensary licenses but Shoals did not accept the bribe.

Dayspring also admitted to underreporting his personal income on his federal tax returns—by more than $3.4 million—for four years. Once Dayspring officially pleads guilty, he faces a maximum sentence of 13 years in federal custody.

Hill committed suicide in August 2020. Later that month, Dayspring stepped down as Natural Healing Center CEO “to devote his energy and attention to other personal avenues of opportunity.”

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New Mexico Business Reopens After Cease-and-Desist Order for ‘Gifting’ Cannabis 

7/29/2021

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A Las Cruces, New Mexico business has reopened after receiving a cease-and-desist order from the state Cannabis Control Division (CCD) for “gifting” cannabis to customers, the Las Cruces Sun reports. Matt Madrid, the attorney for Speak Easy NM, which describes itself as an “organics company and gift shop,” said that his clients would end the practice following the state order.

“The practice commonly referred to as ‘gifting’ will not occur on our premises, however we are still able to assist the community with CBD products and merchandise.”— Madrid in a statement via the Sun

The state did not levy any penalties against Speak Easy.

The cease-and-desist order came following a July 20 investigation by the CCD, which determined the business was giving small amounts of cannabis to customers when making purchases. The business owners, Jason Estrada and Joseph Garza, defended the practice as legal under the state’s legalization law, portions of which took effect June 29. Under the law, adults 21-and-older can legally give cannabis to one another but where there is money involved in the transaction, it is deemed a sale and not a gift and, therefore, illegal, the report says.

State Regulation and Licensing Department Deputy Superintendent John Blair said that the state’s cannabis regulators “will not tolerate any individuals or businesses who violate the Cannabis Regulation Act or otherwise diminish the integrity of the adult-use cannabis industry in New Mexico.”

“All New Mexicans should be on notice that violations of the Cannabis Regulation Act will be met with swift, strong action from the state,” he said in a statement.

In a statement, Speak Easy said it was not their intent to circumvent the law, and apologized to their customers and the community “for any confusion” the situation caused.

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Community College of Denver Launches Cannabis Business Degree Program

7/29/2021

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The Community College of Denver (CCD) has launched a Cannabis Business degree program which it says “fills an education gap” in the field. The program—which the college says is the first-of-its-kind in the state—offers students an opportunity to earn an Associate of Applied Science.

Dr. Marielena DeSanctis, president of CCD, said that because of the college’s “strong ties to the local business community” the program equips “students with the skills they need to succeed in the fastest-growing industry in the U.S.”

“CCD is committed to not only creating meaningful career opportunities for our community, but we are also in the unique position to lead in diversifying the cannabis industry.”— DeSanctis in a press release

In addition to classroom work, the program offers internships and the opportunity to supplement coursework with practice experience. Upon completion of the A.A.S. program, students could pursue a Bachelor’s Degree in Cannabis Science and Operations, which the college plans to offer in the future.

Dr. John Frost, faculty and chair for CCD’s Cannabis program, said graduates “obtain industry-recognized credentials and build a record of work and hands-on experience.”

“This new innovative program will allow our students to think critically about cannabis legislation, growing, distributing/selling, and the social impact of the industry,”— Dr. John Frost in a statement.

The program is available both on-campus and online and scholarships are available to students who qualify.

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Billionaire Charles Koch to Spend $25M Lobbying for Federal Legalization

7/28/2021

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In an interview with Forbes, billionaire Charles Koch called cannabis prohibition “counterproductive,” adding that it “ruins people’s lives, creates conflict in society and is anti-progress.”

Koch is best known for funding Republican politicians but last year launched the Cannabis Freedom Alliance, along with libertarian think-tank Reason Foundation, the Global Alliance for Cannabis Commerce, and the Weldon Project, a nonprofit that advocates for the release of cannabis prisoners. Through the organization, Koch plans to use $25 million of his $45 billion fortune—and his vast network—to influence cannabis legalization reforms by the end of the year, he said in the interview.

“By criminalizing [cannabis], it has huge negative manifestations, not only for the individuals who get trapped in that system, but also for society. We want a society that empowers people to realize their potential and contribute, but with these laws you block out millions of people.”— Koch in an interview with Forbes

Earlier this month federal Democratic lawmakers unveiled the Cannabis Administration and Opportunity Act—which would legalize cannabis and implement related criminal justice reforms; however, there are no Republicans signed on to sponsor the legislation and Koch could influence holdouts to sign on in support of the measure.

In 2015, Koch used his political capital to support the release of Weldon Angelos, a Utah man who had served 13 years of a 55-year sentence for selling $1,000 worth of cannabis before he was pardoned by then-President Donald Trump (R). Weldon is one of the founders of the Cannabis Freedom Alliance who noted in an interview last year that 10 to 12 Republicans are needed in order to pass federal legalization reforms.

“With Koch’s influence,” he said, “I think that’s likely a possibility.”

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Ohio Advocates Launch Cannabis Legalization Push

7/28/2021

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Advocates in Ohio have submitted summary language of a ballot initiative to legalize cannabis for adults to the state attorney general’s office—the first step toward enacting the reforms. The group will need to first collect more than 130,000 signatures and, if successful, the legislation will be sent to state lawmakers who will have four months to consider the bill. If they decline to pass the measure, the group can collect another 130,000 signatures to put the issue to voters on 2022 ballots.

The measure would allow use and possession by adults 21-and-older, allow cultivation of six plants per person and 12 per household, and sales by licensed retailers taxed at 10%.

Coalition to Regulate Marijuana Like Alcohol Spokesman Tom Haren said the “proposal fixes a broken system while ensuring local control, keeping marijuana out of the hands of children, and benefiting everyone.”

“Ohioans want this. They see marijuana legalization as inevitable. They want our leaders to seize the opportunity and take control of our future. Marijuana legalization is an issue whose time has come in Ohio. Nineteen states have gone before Ohio and we crafted legislation based on the best practices learned by those that went before us.”— Haren in a press release   

The plan earmarks 36% of cannabis tax-derived revenues to support social equity and jobs programs; 36% would go toward funding communities that host adult-use dispensaries; 25% for education and addiction treatment; and 3% to the Division of Cannabis Control to cover administrative costs related to the adult-use cannabis industry.

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Brooklyn DA Dismisses 3,500+ Cannabis Cases

7/28/2021

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Brooklyn District Attorney Eric Gonzalez on Tuesday dismissed 3,578 cannabis cases—some dating back to the 1970s—that remained on the docket mostly due to open warrants. The move clears up nearly all of the New York City borough’s remaining cannabis cases.

“For too long, criminalization of marijuana has disproportionately impacted young people and communities of color whose members made up about 90% of those arrested. These arrests ruined the lives of thousands of people over the years, saddling many with criminal convictions that prevented them from pursuing opportunities in life. That was why, in Brooklyn, we stopped prosecuting possession cases in 2014 and went further in 2017, declining prosecution of nearly all smoking cases as well. A year later, we also moved to dismiss warrant cases.”— Gonzalez in a press release

It was his predecessor, the late Ken Thompson, that stopped prosecuting cannabis possession cases in Brooklyn in 2014. In 2017, Gonzalez, as the acting DA, took the policy further and declined to prosecute nearly all cannabis smoking cases as well.

“I hope that these actions will help strengthen community trust in the justice system and allow us to continue moving forward with more fairness and equity,” Gonzalez said.

Currently, only eight cases that include cannabis charges remain in Brooklyn Criminal Court and involve allegations of driving while impaired. In Supreme Court, cannabis charges that are included in more serious felony cases will be dismissed in the course of court proceedings and those charges will not be brought before any jury, the DA’s Office said in the release.

The action by Gonzalez follows similar moves by Queens DA Melinda Katz, Bronx DA Darcel Clark, and Westchester DA Miriam Rocah following the passage of the adult-use reforms by New York lawmakers in March.

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