Despite Losses, Canadian Cannabis CEOs Among Nation’s Highest-Paid Executives

1/15/2021

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Several Canadian cannabis company CEOs were among the highest paid corporate executives in the nation in 2019, according to a Centre for Policy Alternatives’ analysis titled “The Golden Cushion: CEO compensation in Canada.”

Aphria Inc. CEO Irwin D. Simon was the seventh-highest-compensated executive earning more than $18.4 million in 2019. The company reported a $16.5 million net loss in fiscal year 2019.

Former Cronos Group CEO Michael Gorenstein earned about $15 million in 2019, making him the 14th-highest-paid executive on the list. Cronos reported a $121 million operating loss during the 2019 fiscal year.

Bruce Linton, former Canopy Growth CEO, was the 50th highest earner in the analysis making about $9.3 million in 2019 – the year he was ousted from the company while it reported a $670 million loss.

Hexo Corp. CEO Sebastien St. Louis was Canada’s 62nd highest-paid executive, earning about $8.8 million in 2019 while the firm reported an $81.6 million loss.

The CEO compensation totals include salary, share-based and option-based awards, non-equity incentive plan compensation, pension value, and other types of compensation. Overall, the report found that in Canada, the ratio of average CEO compensation to average worker compensation in 2019 was 202-to-1 and that the average top-100 CEO makes as much money as the average Canadian worker will in a year by 11:17 a.m. on January 4.

The report points out that average CEO pay in 2019 – $10.8 million – was a million less than it was in 2018.

Note: All figures in Canadian dollars

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Cresco Labs to Acquire Bluma Wellness in $213M Deal

1/15/2021

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Cresco Labs has reached an agreement to acquire Bluma Wellness Inc. in an all-share deal that values Bluma at $213 million. The move is the Chicago, Illinois-based firm’s first foray into Florida and Cresco CEO Charles Bachtell, said it gives the company “a meaningful presence in all seven of the 10 most populated states in the country with cannabis programs.”

“We recognize the importance of the Florida market and the importance of entering Florida in a thoughtful way – we identified Bluma as having the right tools and key advantages for growth. Bluma is known for having best-in-class cultivation in the state of Florida, a differentiated retail experience and omnichannel offering with effective delivery, a clear pathway to scale and an incredible management team. We have a proven track record of integrating assets in strategic states, improving fundamentals, and amplifying operations to take share in the most competitive cannabis markets.” – Bachtell in a statement

Bluma operates seven dispensaries under its operating subsidiary One Plant Florida and another eight under legal control or planned to open, the company said. The One Plant shops ranks second in Florida for store sales of flower; 15% of the company’s revenue is from home delivery as the dispensaries act as delivery hubs and support a fleet of 15 vehicles that offer 24-to-48 hour service statewide.

Under the terms of the transaction, Bluma shareholders will receive 0.0859 of a subordinate voting share of Cresco Labs for each Bluma Share held. It is anticipated that, subject to required approvals, the transaction will be completed by the beginning of the second quarter.

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Jonathon Goldrath: Providing Foundational Support to Cannabis Entrepreneurs

1/14/2021

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In any industry, launching your business is often the most difficult and daunting step of entrepreneurship. For people in the cannabis industry, added bureaucracy, regulatory requirements, and constantly changing rules can make that process even more difficult. Enter Jonathon Goldrath, an investor and serial entrepreneur whose firm 317 Opportunities leverages the expertise of its founders to help entrepreneurs break into and succeed in the cannabis industry.

In this Q&A, Jonathon discusses the values that he prioritizes when partnering with a new company, shares stories from launching medical cannabis businesses during the early days of a new market, offers his advice for entrepreneurs who are seeking investors and/or considering a new career in cannabis, and more!

Ganjapreneur: What does 317 Opportunities bring to the cannabis space?

Jonathon Goldrath: We bring expertise that spans the entire spectrum of starting and managing a “plant touching” business in limited-license cannabis programs. My partner Peter and I took 3 businesses from license application to ramp-up to exit in some of the most competitive and highly-regulated medical marijuana markets in the United States including Pennsylvania and Ohio. We did all of this with no existing markets on which to base our business model. Our businesses were often the first of their kind in these states. 317 Opportunities now shares this perspective with local partners in states that are launching or expanding their cannabis programs.

How has your experience in the world of traditional finance shaped your experience in the cannabis industry?

My experience in traditional finance ended up proving invaluable for emphasizing the importance of two things – Process and Compliance.

Creating defined and detailed processes is key to building a scalable business in the cannabis industry. It starts with the license application where you have a very short amount of time to put together what ultimately becomes a several hundred page technical document. This drafting process takes discipline and organization. It reminds me of my investment memo drafting experiences in traditional finance. The same importance of process applies to the actual operations of a cannabis business. When you figure out what works you want to be able to replicate it and capitalize on it. As such, you have to design processes (Standard Operating Procedures) that are comprehensive, measure and utilize data, and are easy to implement. This is akin to the importance of process in underwriting investments in traditional finance. Without a replicable process for investment underwriting any success that you experience is probably more attributable to luck than skill. With Process we utilize data to find out what works and why it works – rinse, wash, and repeat.

The importance of Compliance was constantly emphasized to us in traditional finance. Our day-to-day work was under the purview of half a dozen regulatory agencies and cannabis is no different. Perhaps the cannabis industry faces even more regulatory scrutiny given the fact that it is still federally illegal. A focus on compliance is not just important to stay out of trouble but also to grow your business. Making sure that you are ahead of the curve will help with regulatory approvals and your path to market.

Unsurprisingly, Process works hand-in-glove with Compliance as you need to design all of your processes with regulatory compliance front of mind.

When considering new projects and partnerships, what do you look for most?

First, we analyze the market. Each state’s cannabis program is its own ecosystem and we look for certain characteristics that we find attractive to operate in including total addressable market, barriers to entry, level of regulation, market fragmentation, etc.

Assuming the market is one we that find attractive, the most important thing we look for in our new projects is good local partners – people with the character, integrity and drive that is required for a successful cannabis business. Human Resources is the hardest of the cannabis business from both an investment and operational standpoint. Good talent is hard to come by. We are often competing with much larger and better capitalized industries for talent. Additionally, cannabis is still filled with people who were illicit market operators that have carried those practices over into the legal markets. When we find the right partners this makes us all the more excited.

Do you limit how many projects you will take on at once?

Yes, we do. We typically do not take on more than two projects at once given the amount of time and effort they take. The industry got itself in a lot of trouble a few years ago with people going on flag planting exercises and spreading themselves too thin. We would rather see one or two projects do extremely well than six do just ok.

What role do you take on personally with new 317 Opportunities projects?

We run a very lean shop, it’s just two people. Both of our responsibilities are really soup to nuts — business development, advisory work, portfolio management, etc.

Having gone through the process of applying for and successfully being awarded a state cannabis license, what advice do you have for others who plan to apply?

I would give people three pieces of advice; 1. start early; 2. stay organized; and 3. be original. When an application comes out you will have a very limited window to get your ducks in a row for submission so to the extent that there is any ground work you can do a head of time I would strongly recommend it. Once the application process is underway it is easy to get lost in it. For that reason, it is important to have a clear process for drafting and staying organized. Finally, its important to be original and authentic in your responses. At this point in the industry, a lot of people use application consultants that have been recycling the same application content for multiple clients for multiple years. It’s important to show what differentiates you versus the competition through unique content. Lowest common denominator is not enough in these extremely competitive processes.

How does 317 Opportunities assist clients in the acquisition of licenses?

We form a true partnership with local teams. A partnership not just to create the best application but to create the foundation for an incredible business should we win a license. This is comprised of a wide range of activities including; market analysis, team recruitment, writing Standard Operating Procedures based on real world experience, capital formation, site design, Board of Directors roles, and M&A advisory.

As Deseret Wellness establishes two medical cannabis pharmacies in Utah, are you involved in the planning and execution, and if so what is your role?

As a Board Director, I am very involved in the high-level strategic direction of the business. Our Market President and his staff handle the day-to-day operations. We found and hired him and the other key employees as part of launching the business. My current responsibilities are primarily capital raising, brand development, and regulatory affairs.

What is one piece of advice you would offer entrepreneurs seeking to raise capital in the cannabis industry?

Find investors that can be value-add. Sometimes this is someone who is local and knows a lot of the key stakeholders in the area in which your business will be located. Sometimes it is a person with specific industry expertise that you can use. I would also consider the use of a modest amount of debt in order to minimize dilution of your hard earned equity. Whereas debt was unheard of in the industry a year or two ago it is becoming more and more available today. We actually launched a fund called FocusGrowth Asset Management to capitalize on this opportunity.

Is it harder to know when to exit a project in a volatile industry like cannabis?

It is extremely hard given the regulatory uncertainty and capital markets volatility that we see in cannabis. I have seen this industry go from feast to famine several times over the last five years. You will never be able to time the market perfectly but there are a few things you can do to help your decision making process. Maintain patience and discipline. Write down your goals and model your financial projections from the beginning. It is fine to reassess these things with new information from time to time but I would measure your decision to exit against these goals on a regular basis. More generally, I still think we are early innings in cannabis and if you can hold onto your business in a limited-license state I think it is well worth doing so.

How should cannabis entrepreneurs be thinking about their exit strategy in the context of the prospect of federal legalization?

It depends on where in the supply chain your business lies. I think federal legalization is still a little ways out and once it is passed it is going to take a while to work itself out with respect to the patchwork of state and municipal regulation that we currently find ourselves in. The businesses that are most at risk from federal legalization should be thinking about a medium term exit. These are cultivation businesses in places where it does not necessarily make sense to grow cannabis (i.e. cold climates in the northeast).

What are you most excited about in the cannabis industry right now?

Adult-use legalization coming to my home state of New York!

Where can people go to learn more about you or to get in touch?

You can learn more about me and get in contact with me through https://jonathongoldrath.com/ or at https://www.focusgrowth.com/jonathon-goldrath.

Thank you, Jonathon, for answering all of our questions! Click the links above to learn more.

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What We Know About Biden’s Cabinet on Cannabis

1/14/2021

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With Democratic President-Elect Joe Biden set for inauguration next week – and with his party in control of both chambers of Congress (albeit the narrowest of majorities in the Senate) – cannabis legalization could, finally, get at least a debate in both houses.

There are three measures that the 117th U.S. Congress could consider during Biden’s first term: the SAFE Banking and MORE Acts – which were approved by the Democrat-controlled House in 2019 and 2020, respectively, and the STATES Act, a measure which would give states control over cannabis laws without federal interference that never made it to the House floor.

Were any of the reforms approved by Congress, responsibility for enacting and enforcing provisions of the law would be the responsibility of several government agencies led by Biden’s Cabinet picks. The SAFE Act, for example, would require regulation (and buy-in) from the Treasury Department; the MORE Act would likely involve a host of agencies, including but not limited to Health and Human Services, and the departments of Labor, Commerce, and Justice. The STATES Act would also likely hinge on support from the Justice Department and perhaps Commerce.

Many of Biden’s picks are veterans of the Obama Administration – for which the former Senator from Delaware served as vice president – such as Agriculture Secretary nominee Tom Vilsack, former Federal Reserve Chair Janet Yellen, and Domestic Policy Council Chair Susan Rice. Others, including Vice President-Elect Kamala Harris, HHS Secretary nominee Xavier Becerra (California), and Labor Secretary nominee Marty Walsh (Massachusetts), come from states that have legalized cannabis for adult use.

A host of nominees that could play a role were Congress to end federal cannabis prohibition simply have made no public statements on the issue. For example, Veterans Administration secretary pick Denis McDonough, former President Barack Obama’s chief of staff who would be responsible for implementing directives for medical cannabis use for veterans in VA care, has never indicated support or opposition for the reforms. Neither have Council of Economic Advisors Chair nominee Cecilia Rouse, a Harvard-educated economist who serves as dean of the Princeton School of Public and International Affairs; Linda Thomas-Greenfield, who served as assistant secretary of state for African affairs in the State Department’s Bureau of African Affairs from 2013 to 2017 who was tabbed as ambassador to the United Nations which has said cannabis legalization violates international drug treaties; Environmental Protection Agency Secretary nominee and current Secretary of North Carolina’s Department of Environmental Quality Michael S. Regan; nor Isabel Guzman, California’s Small Business Association Advocate nominated to lead the Small Business Administration.

In an interview discussing Biden’s cabinet picks – which still require Senate confirmation – NORML Political Director Justin Strekal explained that cannabis legalization might not be at the forefront of the new administration’s policy agenda as the nation continues to grapple with the coronavirus and the fallout from the waning days of the Trump Administration – including a possible impeachment trial in the first 100 days of the new Congress.

“Remember, there is no such thing as federal legalization, just ending federal prohibition,” Strekal said in a phone interview with Ganjapreneur. “I’d be hard-pressed to believe it will be a priority [for the administration] but I am convinced it will be a priority for the new Congress.”

Attorney General

Attorney General nominee Merrick Garland is likely the cabinet pick that would have the most outsized role on driving the administration’s policy on cannabis and cannabis law enforcement. Garland, who has served as a circuit judge for the Court of Appeals District of Columbia circuit since 1997, has never made public comments on broad legalization leaving us to rely on just one case to gauge how he has approached the issue.

In the 2012 case, Americans For Safe Access v Drug Enforcement Administration which examined whether the DEA had meaningfully considered the potential use for cannabis as a medical therapy, Garland joined the majority opinion which sided with the DEA.

“…because the agency’s factual findings in this case are supported by substantial evidence and because those factual findings reasonably support the agency’s final decision not to reschedule marijuana, we must uphold the agency action,” the opinion concludes.

But in all likelihood, we can expect Garland to be better for cannabis policy than, say Jeff Sessions, who rescinded the Obama-era Cole Memo shortly after assuming the AG role in the Trump Administration. Or a Bill Barr, who allegedly directed the agency’s Antitrust Division merger investigations to target cannabis businesses because of his personal distaste for the industry.

Treasury Secretary

If confirmed as head of Treasury, Yellen, Strekal explained, would set the “dynamics of safe harbor” for cannabis businesses as it relates to industry’s financial rules and “to what scope they are allowed to handle money.”

Yellen has also made no overt public statements related to cannabis reforms; however, she was chair of the Federal Reserve from 2014 to 2018, during which the agency denied Denver, Colorado’s Fourth Corner Credit Union – a non-profit cooperative formed by state-licensed cannabusiness – its application for a master account, Alt-M reported at the time of the decision. That decision forced the state’s cannabis operators to continue doing business on a cash-only basis.

Secretary of Labor

Strekal had a mixed opinion on Boston, Massachusetts Mayor Marty Walsh, who is tabbed to lead the Labor Department. On one hand, Strekal said, Walsh did oppose the 2016 ballot initiative to legalize cannabis in the state but, Strekal admitted, he is “much better [on cannabis] than four years ago.”

The mayor is “very pro-union,” Strekal explained, adding that broad unionization would add “legitimacy” to the industry and help with “buy-in from local communities.” Prior to his election as Mayor of Bean Town, Walsh served as the president of the Laborer’s Union Local 223 and in 2010 was elected as secretary-treasurer and general agent of the Boston Metropolitan District Building Trades Council, a union umbrella group. In 2011, Walsh was named head of the Boston Building Trades.

It should be noted that in a 2019 interview with One37PM, Walsh said his opinions on cannabis “have not changed.”

“I will say though that the legalization has reaffirmed my commitment to making sure that we’re taking proactive steps to create a strong regulatory process that also brings much-needed equity to this new industry. Cities in other states with recreational marijuana have run into serious equity problems, both in who is profiting from the sales and where the stores are located.” – Walsh to One37PM

Agriculture Secretary

Following Vilsack’s nomination to lead the Agriculture Department, Jonathan Miller, the general counsel to the U.S. Hemp Roundtable, described the former Iowa governor as “a long-time champion of hemp” in an interview with Hemp Grower.

“The USDA under Vilsack recognized that ‘market research’ under the 2014 Farm Bill included product sales … and facilitate[ed] the initial growth of the program, setting the table for the 2018 Farm Bill,” Miller said in the report.

“Throughout the administration, senior aides to Vilsack and other USDA officials were always responsive to industry needs, and the U.S. Hemp Roundtable developed a strong relationship and rapport with the Vilsack team. We look forward to renewing that in January.”

In 2016, during an on-stage conversation with former President Bill Clinton at the Clinton Global Initiative, the former president remarked that he had seen a hemp crop in Milwaukee, Wisconsin that he was told sold for $1 million an acre. Vilsack remarked, “With the exception of the state of Colorado and a few other states that have legalized another product, there are not very many commodities that you can plant, Mr. President, and then grow up to get a million bucks.”

However, during his time as governor, Vilsack did adopt the National Governors Association policies on illegal drugs, which included an anti-legalization platform stating the reforms were “not a viable alternative [to enforcement], either as a philosophy or as a practical reality.”

Biden’s Pro-Cannabis Nominees Cover Commerce, Interior, and HHS

Rhode Island Gov. Gina Raimondo, nominated to lead the Commerce Department, actively pushed for legalization in her state and included adult-use legalization in her 2020 budget. The plan would have included provisions opposed by many industry activists – such as the prohibition of home cultivation, a cap on THC, and putting sales in the hand of the state like some states have in place for alcohol.

In an interview last year with the Providence Journal, Raimondo said she supported the state-run model because it is “the most controlled way to do it, arguably the safest, and the way to maximize state revenue.”

The Commerce Department is responsible for promoting economic growth, job creation, and balanced economic development – which would all be enhanced by federal legalization. A 2016 Tax Foundation report suggests a mature cannabis industry could generate up to $28 billion in tax revenues for federal, state, and local governments, including $7 billion in federal revenue: $5.5 billion from business taxes and $1.5 billion from income and payroll taxes. A Leafly report from February found that the legal U.S. cannabis market supports 243,700 jobs – and that’s without any federal changes.

Biden’s Department of Interior nominee Deb Haaland – the first Native American to hold the post – would be charged with managing and sustaining America’s lands, water, wildlife, and energy resources, in addition to upholding treaties with tribal nations. It’s a post that could have a larger role in legalization than many realize, working with the USDA to develop some cultivation rules and overseeing legalization on Tribal lands.

Haaland, who currently serves as Representative of New Mexico in Congress and is a member of the House Cannabis Caucus, voted in favor of the MORE Act last year.

“Minor drug offenses shouldn’t ruin people’s lives, but the failed drug policies in this country tear families apart and target communities of color. I’ve seen the damage done. The MORE Act is the first step to addressing policies that criminalize people of color. As a co-sponsor of this bill, I’m proud to take this step and I hope my colleagues in the Senate will take a stand for justice so it goes to the President’s desk.” – Haaland in a statement

During her first term, she introduced an amendment to protect tribal cannabis programs as part of the Fiscal Year ’20 DOJ funding package, preventing the agency from using funds to interfere with Tribe-approved cannabis reforms. The amendment was the first tribal cannabis amendment ever offered and passed on the House floor.

California Attorney General Xavier Becerra has defended his state’s legalization and, as head of HHS could oversee orders necessary to reclassify cannabis under the Controlled Substances Act. In a Los Angeles Times interview in 2017, Becerra remarked that the “federal government has to catch up and get into the 21st century” regarding cannabis law – a Secretary Bacerra could help the feds catch up.

“We have to make sure the federal government is helping us, not hindering us, when it comes to coming up with a good way to regulate it. So it behooves the federal government to pull its head from underneath the sand and start to figure out how to do this the right way. There are far more important things to worry about than whether someone’s smoking marijuana for medicinal purposes or not.” – Bacerra to the L.A. Times

On the flipside, in his role as California AG, Becerra’s office prosecuted a number of illegal cultivation cases, saying the illicit cultivation sites damage wildlife habitats, poison water, and hurt communities. In October, Becerra said the office’s Campaign Against Marijuana Planting (CAMP) program eradicated 1.1 million illegally cultivated plants across 455 sites over 13 weeks.

Bercerra also served in the U.S. House from 1993 to 2017 and during his tenure voted in favor of several cannabis-related spending bill amendments, including a 2015 provision preventing the Justice Department from using funds to enforce federal law in states that had approved cannabis reforms.

According to a Marijuana Moment analysis, Becerra voted for a rider to protect state medical cannabis programs each time it came up for a vote while he was in office. He also approved amendments to let the VA recommend medical cannabis to veterans, protect state-approved industrial hemp and CBD programs, give cannabusinesses access to traditional financial services, and boost federal hemp research.

If approved by the Senate, Biden’s cabinet would be the most diverse in the history of the U.S. and that diversity could be advantageous – rather than obstructionist – if Congress passes all (or some) of the major cannabis proposals.

When asked to grade Biden’s proposed cabinet on their cannabis positions, Strekal responded, “The burden is on them to prove themselves.”

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Maryland Cannabis Workers Eligible for Coronavirus Vaccine

1/14/2021

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Maryland medical cannabis industry workers are eligible to receive the coronavirus vaccine under a directive issued by the Medical Cannabis Commission (MCC) on Monday. According to the document, industry employees fall under the 1A priority group which includes “licensed, registered and certified health care providers.”

Only industry workers who hold active registrations with the MCC are eligible, but the order covers cultivation, dispensary, processing, and testing laboratory employees.

The medical cannabis industry is considered an essential service in Maryland and businesses remained open during government-mandated closures related to the pandemic.

The activist group D.C. Marijuana Justice (DCMJ) said on Tuesday that they planned to give away cannabis at vaccination centers throughout the city as they come online, according to a DCist report.

Organization Co-founder Adam Eidinger said he hopes the plan brings more people into the Capitol City’s vaccination centers.

“If you believe in the science that supports medical cannabis, you should believe the science that supports the efficacy of the vaccine.” – Eidinger to DCist

In 2017, DCMJ handed out more than 10,000 joints at an event, but Eidinger noted that those were hand-rolled and licked which, he said, is an issue during this pandemic. Instead of pre-rolled joints, the group will be handing out individual bags while wearing masks and gloves, from a safe distance outdoors.

The group also plans to give away seeds named “Grasso’s Green” after former D.C. Councilman David Grosso who left his post at the end of last year.

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Cannabis Testing Lab Penalized for Operating Without License

1/14/2021

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A Portland, Maine medical cannabis testing lab has been shut down due to operating without proper city permits and licenses. According to the Portland Press Herald, ProVerde Laboratories was operating without a certificate of occupancy or business license and was open absent a cannabis license from the city.

After citations were issued by the city’s licensing and permitting and fire departments in December, Christopher Hudalla — the Massachusetts-based testing lab’s founder and chief scientist — said he was unaware medical cannabis laboratories needed a license, only labs testing adult-use cannabis. Although he is correct, the state does not require medical cannabis testing and therefore does not register medical cannabis product testing labs, the city of Portland does, the Press Herald reports.

“No individual or entity may operate a marijuana business within the City without first obtaining a license from the City.” — City ordinance excerpt, via the report

Currently in the process of updating its building permit, ProVerde was granted a six-month temporary adult-use cannabis testing license in April but that has expired, Hudalla said. He said the company plans to apply for a new license and has not laid off its Portland staff, but the licensure process is complicated and continues to be hampered by COVID-19.

ProVerde must remove all THC-rich cannabis from the business and is not allowed to test THC-rich cannabis until a new permit is issued by the city. However, the lab can continue to test CBD  and hemp products without a license. A new inspection is scheduled for February 2.

Hudalla insists his lab is necessary and says they have detected “substantial contamination” from pesticides in Maine medical cannabis samples. Despite outlawing “high-risk” pesticides for medical cannabis cultivation, Maine does not require pesticide tests for products destined for medical cannabis patients.

That may change this year, however, with the introduction of a new bill by Rep. Patricia Hymanson that requires more thorough testing for medical cannabis products similar to the state’s adult-use inventory.

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Study: Cannabis Legalization Increases Junk Food Sales

1/14/2021

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Adult-use cannabis legalization leads to increased junk food sales, according to a study published in the December 2020 issue of Economics & Human Biology journal. The study found junk food sales rose 6.3% in terms of sales and 5.1% by volume following adult-use reforms.

Georgia State University economist Alberto Chong, one of the study’s authors, said that while the “consensus today” is that cannabis “does no harm,” there are “unintended consequences” to the reforms “and one of them is the fact that you really get very hungry and you start eating crap,” he said in an interview with the Academic Times.

Chong, along with co-author Michele Baggio of the University of Connecticut, used county-by-county population data from Colorado, Oregon, and Washington – the first states to legalize cannabis for adult use – as well as Nielsen Retail Scanner data from 2006 to 2016 for convenience store, drugstore, and grocery store junk food sales. The researchers controlled for demographic factors such as race, the average age of the population, unemployment rate, and education.

“Specifically, in counties located in [recreational marijuana legal] states monthly sales of high calorie food increased by 3.2% when measured by sales and 4.5% when measured by volume when using our preferred identification strategy.” – “Recreational marijuana laws and junk food consumption,” Economics & Human Biology, Dec. 2020

A 2019 working paper of the study found legal cannabis increased ice cream sales by 3.1%, cookies by 4.1%, and potato chips by 5.3%, according to the report.

Chong and Baggio are also the authors of a 2017 report – again using retail scanner data – that found monthly alcohol sales in counties where cannabis is legalized fell, cumulatively, 15%.

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Illinois Senate Approves Bill to Improve Cannabis Social-Equity Licensing

1/14/2021

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The Illinois Senate on Wednesday advanced a measure to improve the state’s social equity cannabis licensing process, the Chicago Sun-Times reports. The approval comes just over a year after adult-use sales launched in the state with regulators yet to issue a single license to a firm majority-owned by a person of color.

The proposal would create two licensing lottery systems – tiered and qualified – to decide who might receive a dispensary license. The bill would also create a new lottery for 75 additional adult-use dispensary licenses for those who scored high in the first round of licensing but didn’t receive one of the first 75 licenses.

State Sen. Cristina Castro (D) told the Sun-Times that the “main goal…is to get more licenses out the door and into the hands of socially equitable applicants.”

“This plan adds more validity to Illinois’ already strong claim to being the industry leader in cannabis legalization that other states can seek to model their programs after.” – Castro to the Sun-Times

In April, Gov. J.B. Pritzker (D) pushed back the date for awarding the state’s social-equity cannabis licenses amid the coronavirus pandemic. In June, officials indicated that the licenses could be awarded in July but they have yet to materialize.

The state has announced that $31 million from cannabis-derived taxes would be used for its Restore, Reinvest and Renew Program, a grant program aimed at small businesses and non-profits in disadvantaged communities.

The measure to improve the social equity licensing regime next moves to the House for a concurrence vote.

The Senate also approved criminal justice legislation that would end cash bail and require the use of body cameras statewide by 2025.

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UK Awards 2nd Medical Cannabis Cultivation Permit

1/14/2021

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The UK has awarded its second permit to cultivate “medical-grade” cannabis after more than 20 years since the first was issued to GW Pharmaceuticals in 1998. The new license was granted to Jersey-based Northern Leaf, according to a Yahoo report.

Northern Leaf plans on supplying THC-rich cannabis to Britain, Germany, Denmark, Spain, and Portugal. The company’s first shipment

Planning to supply THC cannabis to Britain, Germany, Denmark, Spain, and Portugal, the first shipment grown in their 75,000-square-ft. greenhouse — the license covers a total of 400,000-square-ft. — is expected to be a half-ton, according to Northern Leaf’s Chief Executive Campbell Dunlop.

“Demand is increasing globally and the market is currently undersupplied,” Dunlop said.

International cannabis market research firm Brightfield Group says the European cannabis market could reach as high as €330m ($403m, £297m) in 2020. They expect the UK cannabis industry to see a compound annual growth rate of 98 percent between 2020 and 2025. Germany has the largest medical cannabis market in Europe at the moment with 2020 sales reaching $267 million — by 2025, however, the German market is expected to sell $2.1 billion in cannabis annually.

Although the numbers may seem high, they pale in comparison to the United States market, where annual adult-use and medical cannabis sales are expected to reach $30 billion by 2025, according to the report.

The UK is only one of a handful of countries that allows the export of THC-rich cannabis and has a national medical cannabis system. In the UK, medical cannabis is legal with a prescription from a “specialized” doctor such as a neurologist or pediatrician. Adult-use cannabis, however, is categorized as a Class I substance under the “Misuse of Drugs Act 2001” in the UK. For small possession, police may issue a £90 fine or a warning, but distribution or cultivation carries up to a 14-year prison sentence and an unlimited fine.

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Using Cannabis to Aid Physical Recovery

1/13/2021

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Jointly is a new cannabis wellness app that launched in April 2020. Jointly’s mission is to help people discover purposeful cannabis consumption. Purposeful cannabis consumption starts with the question: why do you use cannabis?

For example, many athletes and active adults use cannabis or CBD to help them recover. What does that look like?

It could be an ICU nurse finishing a shift and taking a puff from a CBD cartridge to ease her aching feet. Or a martial artist massaging a 1:1 salve into his battered joints to reduce inflammation and get back to the dojo as soon as possible. Or an active mother juggling workouts, kids and a new business who uses cannabis tinctures to relax, improve her appetite, and sleep soundly through the night.

Can cannabis or CBD help you recover? Jointly can help you find out! But first let’s review what is known about cannabis and physical recovery.

Does Cannabis Speed Up Recovery?

We all know exercise is good for us. But sometimes we forget recovery is just as important. To get back to the activity you love, you need to recover in an optimal amount of time.

The body has natural mechanisms of recovery, but with work, kids and social obligations, sometimes life gets in the way and recovery takes a backseat to training. But if you repeatedly exercise without letting your body recover, you can put yourself in a state of overreaching that can negatively affect your mood and energy levels.

Cannabis is such an effective recovery aid that many professional athletes have secretly used cannabis to help them recover, even when it might have cost them their career. Why? Because cannabis has pain relieving, appetite enhancing, stress relieving, sleep enhancing and mood boosting effects—all factors that contribute to a timely recovery.

Unfortunately, due to federal prohibition on cannabis, researchers have not done controlled studies looking at how cannabis affects physical recovery. However, there are various mechanisms by which cannabis or CBD could aid recovery.

What is Recovery?

Exercise, particularly high-intensity and resistance exercise, creates damage in the form of “perturbations of the skeletal muscle,” which results in a loss of strength that continues until your body repairs itself.

This damage is called exercise-induced muscle damage (EIMD), and is characterized by a complex process involving delayed onset muscle soreness, swelling and inflammation. These symptoms generally peak around 24-48 hours after exercise, and are recovered in about 7 days.

Researchers have stated, “Precisely defining ‘recovery from exercise’ is a challenging task due to the varied means of recovery.” For example, are you recovered when you are fully healed back to baseline, or simply ready for additional training stress?

Despite the debate over the term, recovery is generally considered to be the resolution of pain, soreness, swelling and inflammation, paired with the adaption of the tissue and a return to normal strength.

What Does the Science Say?

The body has natural mechanisms of recovery, so what gets in the way? Time seems to be a limiting factor, but no one can get more hours in the day, so sports medicine scientists have indicated that using additional therapies to alleviate symptoms of muscle damage “may be advantageous to individuals who require rapid recovery between bouts of physical activity.”

And there is ample anecdotal evidence that cannabis is one of the most effective natural therapies for accelerating physical recovery.

Why might cannabis and CBD help people recover?

Dr. Michael Gleeson, a professor of exercise biochemistry at Loughborough University, discussed six factors that can decrease recovery from exercise: muscle soreness; poor exercise performance; decrease in appetite; infection; quality and quantity of sleep; gastrointestinal abnormalities.

One factor that Dr. Gleeson does not mention is psychological stress, which research has shown adversely affects muscle recovery in the short term after exercise-induced damage.

Cannabis and CBD can benefit several of the conditions that inhibit recovery, specifically prolonged inflammation, muscle soreness/pain, appetite, sleep and psychological stress.

Inflammation

Intense exercise “triggers a flood of chemicals known as cytokines, some of which inflame muscles, that manifests as soreness the next day.” Numerous studies have demonstrated that CBD exerts an anti-inflammatory effect. In preclinical trials, CBD inhibited production of “pro-inflammatory cytokines and reactive oxygen species” and stimulated production of anti-inflammatory cytokines.

In the context of physical recovery, inflammation is not the enemy, but rather “a key process underlying muscular repair and regeneration.” When you use cannabis or CBD to recover, the goal is not to completely eliminate inflammation, but rather to aid and accelerate your body’s natural repair mechanisms with cannabis or CBD to get you back on the trail, the court or the slopes.

Pain and Soreness

Exercise-induced muscle damage is associated with significant muscle pain and soreness.

Specifically for exercise induced muscle damage, the conventional methods of treating pain seem to negatively affect muscle adaption.

Non-steroidal anti-inflammatory drugs (NSAIDs) are usually the first-line of defense against pain and soreness after a vigorous workout, but these drugs “have been reported to attenuate exercise-induced skeletal muscle adaption.” That means that Ibuprofen may actually limit the ability of your muscle to recover from training.

Many people have found great success in treating their muscle pain and soreness with CBD or cannabis. The endocannabinoid system “has been shown to play an important role in the modulation of a wide range of physiological processes including neurotransmission, pain perception and inflammation.”

According to researchers who study cannabis and pain, “it is not an exaggeration to state that all experimentation using animal models of pain” have suggested that cannabis exerts a significant analgesic effect.

Eating

With all of the stress of modern life, sometimes it can be challenging to work up an appetite even if you have worked out. However, eating is one of the most important parts of recovery.

In the sports science world, it is well known that “negative energy balance will interfere with wound healing,” which means that if you eat too few calories, your body will not have the building blocks to recover.

Cannabis makes most people want to eat, which is great in the context of physical recovery. As far back as 300 C.E., physicians in India recommended cannabis “to treat loss of appetite.” As a result, many athletes and active individuals use the appetite enhancing aspect of cannabis to boost their recovery.

CBD seems to have the opposite effect at high doses. Low doses of CBD have been shown to have no influence on food intake, but high doses of CBD or chronic CBD treatment seem to suppress appetite in both humans and rodents.

Sleep

Whether it is work stress, caffeine, kids, light pollution or your downstairs neighbor, sometimes you just can’t get the sleep you need to recover. Many people use cannabis and CBD to fall asleep and stay asleep longer.

According to strength coach Anthony Ricciuto, “Muscle damage from a workout gets repaired during the sleep cycle—the body’s cells are recycled and a cascade of different hormones is activated to produce muscle growth.”

Researchers have found that daily cannabis use led to greater total sleep time in older adults.

CBD has shown mixed results. The first placebo-controlled, double-blinded crossover trial found that the sleep improving effects of CBD were dose dependent. The researchers found that 160mg of CBD—but not 40mg or 80mg of CBD—increased self-reported sleep duration in individuals with insomnia.

Psychological Stress

While Gleeson et al. does not discuss psychological stress as a factor that can inhibit recovery, there is evidence that “life event stress” decreases short term muscle recovery, even when controlling for physical fitness, workload and training experience.

A 2019 study out of Washington State University found that one puff of high CBD, low THC weed dramatically reduced symptoms of depression, two puffs of any type of cannabis was enough to reduce anxiety, and ten or more puffs of cannabis high in THC and CBD produced the most dramatic reductions in stress.

A small number of clinical trials have explored the effects of CBD on subjective anxiety in healthy individuals and individuals with social anxiety disorder. The evidence suggests that moderate doses of CBD may reduce anxiety in stressful situations.

Perhaps the stress-relieving benefits of cannabis or CBD contribute to their usefulness as recovery aids.

There are many ways cannabis and CBD can help you recover, so how can you find out if cannabis or CBD is the right choice for you?

Use Jointly to Recover Faster with Cannabis or CBD

With Jointly, you measure how well a cannabis product helps you recover.

As you record how well each product works for you, Jointly helps you track the 15 factors that can impact your individual cannabis experience so that you can minimize side effects and enjoy your ideal experience every time. You can also use Jointly to find products that might work better for you to aid in recovery.

Jointly users who have optimized their cannabis consumption by reporting at least 10 cannabis sessions are feeling 38% better.

Download the Jointly app today and start accomplishing your wellness goals with cannabis and CBD!

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PurePressure, Leading Rosin Press Manufacturer, Announces Launch of New Axis Trichome Separator

1/13/2021

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With the popularity of ice water hash exploding, the world’s leading manufacturer of rosin presses and bubble hash washing vessels meets the demand with an incredible new machine, dubbed the Axis trichome separator.

Already setting themselves apart from the competition with the manufacturing of the best rosin presses on the planet, PurePressure is proud to announce it’s automated trichome separator, the Axis. The Axis trichome separator gives cannabis processing labs the option for truly scalable ice water hash extraction with their new, revolutionary machine. The Axis is built entirely in the USA at PurePressure’s factory in Denver, Colorado. It provides unmatched control, throughput, and safety for large scale ice water hash production.

Key features of the Axis trichome separator:

  • With the Axis trichome separator, your facility will be able to wash 132 pounds, or 60,000 grams of fresh frozen cannabis or more in a 9 hour shift. This unparalleled daily output requires only two operators to achieve and removes the typical backbreaking manual labor that ice water hash washing can entail.
  • Offering unparalleled wash control, the Axis features a precise servo motor, coupled with a joystick and touchscreen interface enabling backwards and forwards paddle control. It also offers recipe saving functionality so that hash washing technicians can create their own custom wash styles, save them, and repeat them at will with the touch of a button.
  • The Axis trichome separator is backward compatible with its food safe Bruteless bubble hash washing vessels made by the experts at PurePressure. All extraction facilities owning 30, 44, and 65-gallon Bruteless vessels will be able to integrate their Axis trichome separators with the equipment they already have.
  • Even though the Axis boasts some of the highest production output in the game, the trichome separator draws a noticeably low amount of power. At 120v, it draws only 7 amps peak and just 2-3 amps continuously.
  • All Axis machines are outfitted with IP65 washdown rated electrical components that make for a simple and quick cleanup.
  • The wash arm that the Axis is equipped with is made of food grade stainless steel, which is easily cleaned and maintained.
  • Facilities with minimal space can operate the Axis with ease. The Axis requires as little as 550 square feet and can be used in places with ceilings as low as 7 feet and can fit through as small as a 30” wide door being rolled on a furniture cart.

Revolutionizing Ice Water Hash Washing

Thanks to the above-mentioned features, the Axis from PurePressure is poised to revolutionize ice water hash washing. The Axis trichome separator is unlike anything you’ve seen before, and the scalability that comes with this incredible device is unmatched. The Axis ice water hash washer is user-friendly, highly controllable, and is loaded with safety features, allowing solventless processors the ability to scale as they’ve never seen. By separating ice water hash washing vessels from the source of agitation, the Axis saves users time so that they can fill, soak, filter, and collect their hash without tying up their washer.

The Axis trichome separator is built in the PurePressure factory in Colorado. The revolutionary bubble hash washing device is made with premium materials, including stainless steel that makes cleaning and sanitizing a breeze. Professional hash washing is as simple as utilizing the user-friendly Axis joystick control panel and the intuitive and attractive touch-screen. Hash washing techniques can be tricky, but the Axis simplifies this process with its ability to save specific recipe sequences. True full melt ice water hash and six-star bubble hash is rare as these products require precision touch, experience, and extremely gentle agitation. The Axis machine also features a unique pivoting wash paddle head that allows processors to lift, lower and pivot with ease. The incredible functionality found only with the Axis hash washing machine allows you to immediately begin working on your next batch of bubble hash. The efficiency of the Axis gives users maximum machine usage from the moment the device arrives at their facility.

The Axis Trichome Separator is a Smart Investment

Most cannabis processing facilities that are washing hash buy an Axis will see ROI within two months or less. A single Axis machine is the equivalent of the output of roughly two machines from competitors, and as they say, the most expensive machine is one you have to buy twice. Purchasing an Axis trichome separator from PurePressure is one of the smartest investments that a processing facility will ever make. By adding an Axis hash washer, facilities place themselves ahead of the competition by saving tens of thousands of dollars in labor costs as opposed to doing traditional washing hash by hand. An investment in the Axis trichome separator will not only save facilities money in labor costs, but it can also help ensure greater hash SKU consistency.

Along with unparalleled functionality and output, any bubble hash washing operation can claim some impressive certifications with the purchase of an Axis trichome separator. Just a few of these certifications include a UL508 control panel and IP65 washdown rated electrical components. For customers who need a full electrical certification, they can be acquired in the field with ease.

Demand for Solventless Concentrates is Rising

As consumers get a taste for premium, top-shelf cannabis products, the demand for bubble hash concentrates like live rosin is more popular than ever. Vaporizer cartridges make up a large portion of the legal cannabis market and concentrates made from the ice water hash washing process lead the way in terms of quality. Hash washing results in the most attractive and highest quality products the cannabis industry has to offer. Consumer demand is high for solventless concentrates thanks to their natural, full-spectrum, terpene-rich and potent content.

The versatile practice of hash-washing lends itself well to commercial operations producing some of the highest quality cannabis products in the world. Although washing hash or hash washing is the most commonly used term to describe the process of producing these products, it’s not the most accurate. The most accurate term is trichome separation.

The quality of the bubble hash that consumers purchase depends on factors such as the source strain, the growing conditions, and the purity and potency of the source material. Concentrates are quickly becoming the preferred method of consumption for cannabis lovers. The time is now to enter the wonderful world of solventless cannabis concentrates, and the Axis trichome separator leads the way. Ice water hash is the most versatile solventless cannabis product on the market today, although it is not a new product. Vaporizer cartridges are easy to use and highly effective, requiring significantly less inhalation than the age-old method of smoking flower. However, cannabis extracts present their own set of concerns and potential problems – as does any other commercial product.

Producing solventless concentrates requires minimal startup costs, positioning itself as a favorite for many extraction facilities. Years ago, starting a cannabis extraction lab could cost processors hundreds of thousands of dollars in machine costs, with the cost of labor not even included. With solventless hash washing and chemical-free bubble hash, labs and processing operations don’t have to deal with the headache and extreme expense of C1D1 rooms, or having to add them for their solventless divisions.

Pre-Order Your Axis Now

The Axis trichome separator will be available for pre-order on January 5th, 2021, and orders are expected to ship out to customers in May 2021. For only a $9,995 down payment, customers will be locked in to receive the most versatile, highly functional cannabis hash washing machine ever made with a net price tag of $27,500 plus shipping.

About PurePressure

PurePressure is a USA-based manufacturer of solventless processing equipment. In addition to their revolutionary new Axis trichome separator, PurePress makes industry-leading rosin presses, hash washing vessels, and rosin filter bags. PurePressure customers also love the wide variety of solventless extraction operation accessories, like freeze dryers and sifters.

The PurePressure factory is located in Denver, Colorado. The PurePressure team has over 20 years of manufacturing expertise and 15 years of oil extraction experience. The PurePressure team shares a passion for cannabis and their dedication to their customers is the foundation of our success.

Press Contact

PurePressure
720-446-9565
sales@gopurepressure.com
https://gopurepressure.com/pages/contact-us

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Aurora Hacker Posts Data for Sale, Says Ransom Request Was Ignored

1/13/2021

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Hacked Aurora Cannabis data – including copies of passports, driver licenses, and credit card information – appears to be for sale on an online marketplace following a Christmas Day intrusion into the company’s Microsoft Cloud software, Yahoo Finance reports.

The breach was first reported by MJBizDaily who said employees indicated that home and banking information for both current and former employees were also unveiled.

Aurora spokeswoman Michelle Lefler confirmed the incident to MJBizDaily and explained that the Canadian company “immediately took steps to mitigate the incident, [and] is actively consulting with security experts and cooperating with authorities.”

“Aurora’s patient systems were not compromised, and the company’s network of operations is unaffected.” — Lefler in a statement via MJBizDaily.

The post attempting to sell the data – for one Bitcoin which is currently worth about $34,000 – includes 11 “proof of concept” sample images, including a passport apparently belonging to Chief Information Officer Darryl Vleeming and a driver’s license allegedly belonging to Amy Lamoureux, a supply chain manager.

The hacker’s forum post, attempting to sell the stolen data. Image credit: BleepingComputer.com

The hacker selling the data told BleepingComputer that there is 50GB of data in all and that they still have access to Aurora’s networks. The hacker said they contacted the company but “all them ignore this breach (sic)” and that a ransom was demanded but the hacker said, “all employs (sic) ignored me.”

Office of the Privacy Commissioner of Canada Senior Communications Advisor Vito Pilieci said the agency was notified of the hack on December 31 and has been working with the company on gathering information to determine the next steps.

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Mexico Unveils Rules for National Medical Cannabis Industry

1/13/2021

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Mexico’s Health Ministry on Tuesday made public rules for the medical cannabis industry and President Andres Manuel López Obrador signed off on a regulation allowing pharmaceutical companies to commence medical research on cannabis products, Reuters reports.

The rules for pharmaceutical firms require them to obtain permission from COFEPRIS, the nation’s health regulator. Under the guidelines, the research must be conducted by independent laboratories under strictly controlled conditions.

The framework includes rules allowing the importation of cannabis seeds into Mexico and the use of cannabis derivatives and cannabis-based medications, Mexico News Daily reports.

The regulations do not cover adult-use legalization. In 2019, Mexico’s Supreme Court declared cannabis prohibition unconstitutional and required lawmakers to implement laws allowing adult-use possession and sales by October of that year but were given an extension by the court. Last November, the Senate approved a legalization measure but the following month the Supreme Court again granted an extension until late April in order for the lower chamber to debate the reforms, which they described as complex.

The bill approved by the Senate allows personal possession up to 28 grams, home cultivation up to four plants, and taxed-and-regulated sales, and THC caps. According to the bill text, the reforms would “improve living conditions” and “contribute to the reduction of crime linked to drug trafficking.” The measure does include social equity provisions, including requiring at least 40% of industry licenses are awarded to indigenous, low-income, or historically marginalized communities for the first five years. Public consumption would be permitted but not in places where tobacco use is banned or where people under 18-years-old could be exposed. Driving under the influence of cannabis would be outlawed.

Once the reforms are approved, Mexico will join Uruguay and Canada as the only nations to legalize cannabis for adults. The Mexican market would be the world’s largest by population.

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Federal Prisoner Andy Cox Freed After Serving 13 Years of Life Sentence for Cannabis

1/13/2021

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Andy Cox, who was convicted in 2005 and sentenced to life for conspiracy for manufacture cannabis, has been freed from prison after serving 13 years behind bars, according to his attorneys at Goodwin and the Last Prisoner Project.

Cox was convicted on federal charges in 2009 for cultivating cannabis in Georgia’s Chattahoochee National Forest, which buttressed his father’s land. According to the Federal Bureau of Investigation, Cox had been previously convicted twice for drug trafficking – once in 1991 and again in 2000.

During their original investigation, U.S. Forest Service agents discovered 724 seedlings in the yard of Cox’s father’s property and another 594 plants at three separate grow sites in the adjacent forest, ranging in maturity from three to four inches to more than 4 feet tall, for a total of 1,318 plants, the FBI said. Cox was originally indicted on the charges on Jan. 11, 2005 but fled after the indictment and remained a federal fugitive until he was taken into custody in 2008. His co-conspirators, Jose Quexadas-Fierros, Paciano Vargas-Hernandez, and Mayolo Vargas-Villenueva were sentenced in 2004 and 2006 to three-, two-, and five-year terms in federal prison, respectively.

Goodwin brought Cox’s motion under the 2018 First Step Act, arguing that the coronavirus pandemic presented an “extraordinary and compelling” basis for his release, and Cox’s age and health made him susceptible to COVID-19. The attorneys also argued that the life sentence was handed down under an outdated sentencing regime that imposed mandatory minimums no longer in place and that his crime of cannabis cultivation is now legal in many states.

“Me and my family are forever indebted to Goodwin, they saved my life. I am so blessed to have such an amazing team work so hard for my freedom.” – Cox in a statement

Cox was released January 6.

Sarah Gersten, executive director and general counsel of LPP, said the organization is “thrilled” at the efforts of Goodwin, which “have allowed Andy to reconnect with his family after serving 13 years of an unjust sentence.”

Goodwin previously worked with LPP to secure the release of Philong Chong in September 2020. Chong had served five years of an 87-month sentence for non-violent cannabis and money laundering charges.

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Farmington Research: Helping Cannabis Beverage Pioneers Find Success

1/12/2021

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Consumers‌ ‌across‌ ‌the‌ ‌U.S.‌ ‌are‌ ‌searching‌ ‌for‌ ‌delicious‌ ‌and‌ ‌effective‌ ‌cannabis/hemp‌ ‌beverages‌ ‌and‌ ‌the‌ ‌market‌ ‌size‌ ‌for‌ ‌infused‌ ‌beverages‌ ‌is‌ ‌set‌ ‌to‌ ‌grow‌ ‌exponentially‌ ‌through‌ ‌2027.‌ ‌This‌ ‌projection‌ ‌has‌ ‌attracted‌ ‌many‌ ‌manufacturers‌ ‌but‌ ‌creating‌ ‌a‌ ‌palatable‌ ‌beverage‌ ‌remains‌ ‌a‌ ‌unique‌ ‌challenge‌ ‌with‌ ‌a‌ ‌steep‌ ‌learning‌ ‌curve.‌ ‌‌Farmington‌ ‌Research‌‌ ‌founders‌ ‌Breck‌ ‌Speed‌ ‌and‌ ‌Cameron‌ ‌Meshell‌ ‌came‌ ‌to‌ ‌the‌ ‌cannabis‌ ‌space‌ ‌with‌ ‌a‌ ‌lot‌ ‌of‌ ‌experience‌ ‌in‌ ‌the‌ ‌traditional‌ ‌beverage‌ ‌industry‌ ‌—‌ ‌now,‌ ‌the‌ ‌duo‌ ‌uses‌ ‌insights‌ ‌gleaned‌ ‌from‌ ‌their‌ ‌previous‌ ‌careers‌ ‌to‌ ‌help‌ ‌cannabis‌ ‌beverage‌ ‌manufacturers‌ ‌fine-tune‌ ‌their‌ ‌products’‌ ‌taste,‌ ‌solubility,‌ ‌bottling,‌ ‌and‌ ‌aroma.‌ ‌ ‌
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“The‌ ‌beverage‌ ‌segment‌ ‌of‌ ‌the‌ ‌cannabis‌ ‌market,‌ ‌which‌ ‌includes‌ ‌RTD‌ ‌beverages‌ ‌and‌ ‌powders,‌ ‌is‌ ‌expected‌ ‌to‌ ‌be‌ ‌one‌ ‌of‌ ‌the‌ ‌top‌ ‌market‌ ‌segments,”‌ ‌Chief‌ ‌Operating‌ ‌Officer‌ ‌Breck‌ ‌Speed‌ ‌told‌ ‌Ganjapreneur.‌ ‌“Consumers‌ ‌are‌ ‌looking‌ ‌for‌ ‌healthier‌ ‌alternatives‌ ‌to‌ ‌alcohol‌ ‌capable‌ ‌of‌ ‌delivering‌ ‌similar‌ ‌relaxation‌ ‌effects,‌ ‌and‌ ‌beverages‌ ‌are‌ ‌a‌ ‌trusted‌ ‌format‌ ‌and‌ ‌have‌ ‌dependable‌ ‌dosages.”‌ ‌
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Because‌ ‌of‌ ‌their‌ ‌expertise‌ ‌in‌ ‌beverages,‌ ‌the‌ ‌pair‌ ‌found‌ ‌they‌ ‌were‌ ‌being‌ ‌frequently‌ ‌approached‌ ‌about‌ ‌making‌ ‌hemp-‌ ‌or‌ ‌THC-based‌ ‌drinks‌ ‌but‌ ‌they‌ ‌also‌ ‌identified‌ ‌common‌ ‌issues‌ ‌with‌ ‌the‌ ‌products‌ ‌that‌ ‌were‌ ‌already‌ ‌being‌ ‌marketed.‌ ‌The‌ ‌most‌ ‌prominent‌ ‌problem‌ ‌they‌ ‌identified‌ ‌was‌ ‌that‌ ‌it‌ ‌was‌ ‌hard‌ ‌to‌ ‌find‌ ‌an‌ ‌extract‌ ‌that‌ ‌was‌ ‌both‌ ‌suitable‌ ‌for‌ ‌the‌ ‌manufacturing‌ ‌process‌ ‌and‌ ‌that‌ ‌could‌ ‌retain‌ ‌a‌ ‌desirable‌ ‌end‌ ‌product.‌ ‌Ultimately,‌ ‌Speed‌ ‌and‌ ‌Meshell‌ ‌set‌ ‌out‌ ‌to‌ ‌make‌ ‌that‌ ‌extract‌ ‌themselves.‌ ‌This‌ ‌decision‌ ‌brought‌ ‌them‌ ‌down‌ ‌a‌ ‌two-year‌ ‌path‌ ‌of‌ ‌research‌ ‌and‌ ‌development.‌
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Many‌ ‌manufacturing‌ ‌companies‌ ‌at‌ ‌the‌ ‌time‌ ‌were‌ ‌still‌ ‌trying‌ ‌to‌ ‌perfect‌ ‌the‌ ‌solubility‌ ‌of‌ ‌their‌ ‌products‌ ‌so,‌ ‌after‌ ‌failing‌ ‌to‌ ‌get‌ ‌their‌ ‌desired‌ ‌results‌ ‌with‌ ‌what‌ ‌was‌ ‌available‌ ‌at‌ ‌the‌ ‌time,‌ ‌Meshell‌ ‌learned‌ ‌how‌ ‌to‌ ‌weld‌ ‌in‌ ‌order‌ ‌to‌ ‌build‌ ‌specialized‌ ‌manufacturing‌ ‌equipment.‌ ‌Utilizing‌ ‌their‌ ‌new‌ ‌in-house‌ ‌technology,‌ ‌Meshell‌ ‌was‌ ‌able‌ ‌to‌ ‌deliver‌ ‌a‌ ‌lightly‌ ‌colored‌ ‌and‌ ‌water-soluble‌ ‌full-plant‌ ‌extract.‌
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Now‌ ‌that‌ ‌they‌ ‌had‌ ‌their‌ ‌product,‌ ‌the‌ ‌pair‌ ‌next‌ ‌started‌ ‌working‌ ‌on‌ ‌a‌ ‌hemp‌ ‌extract‌ ‌business,‌ ‌eventually‌ ‌relocating‌ ‌from‌ ‌Los‌ ‌Angeles‌ ‌to‌ ‌Shreveport,‌ ‌Louisiana,‌ ‌where‌ ‌the‌ ‌University‌ ‌of‌ ‌Louisiana‌ ‌offers‌ ‌an‌ ‌entrepreneurial‌ ‌incubator‌ ‌through‌ ‌the‌ ‌hospital‌ ‌biomedical‌ ‌research‌ ‌foundation,‌ ‌leasing‌ ‌out‌ ‌labs‌ ‌to‌ ‌various‌ ‌companies.‌ ‌Through‌ ‌this‌ ‌opportunity,‌ ‌the‌ ‌team‌ ‌worked‌ ‌to‌ ‌perfect‌ ‌their‌ ‌proprietary‌ ‌technology‌ ‌and‌ ‌product.‌
‌
Farmington’s‌ ‌pilot‌ ‌extract‌ ‌was‌ ‌made‌ ‌using‌ ‌hemp‌ ‌but‌ ‌the‌ ‌proprietary‌ ‌process‌ ‌is‌ ‌just‌ ‌as‌ ‌effective‌ ‌with‌ ‌full‌ ‌cannabinoid‌ ‌extracts.‌ ‌In‌ ‌fact,‌ ‌the‌ ‌company‌ ‌is‌ ‌currently‌ ‌working‌ ‌with‌ ‌several‌ ‌THC-focused‌ ‌clients‌ ‌to‌ ‌shape‌ ‌and‌ ‌perfect‌ ‌their‌ ‌technology‌ ‌for‌ ‌that‌ ‌side‌ ‌of‌ ‌the‌ ‌industry.‌

While craft cannabis cultivators are popping up left and right with every new market, it takes a lot of technical finesse and expertise to create cannabis-infused beverages.

‌The‌ ‌company’s‌ ‌initially‌ ‌tiny‌ ‌team‌ ‌of‌ ‌two‌ ‌has‌ ‌grown‌ ‌to‌ ‌three‌ ‌since‌ ‌their‌ ‌founding,‌ ‌but‌ ‌their‌ ‌focus‌ ‌remains‌ ‌on‌ ‌adding‌ ‌value‌ ‌to‌ ‌the‌ ‌cannabis‌ ‌beverage‌ ‌market.‌ ‌Because‌ ‌of‌ ‌the‌ ‌stability,‌ ‌clarity,‌ ‌lack‌ ‌of‌ ‌aroma,‌ ‌and‌ ‌neutral‌ ‌flavor‌ ‌of‌ ‌their‌ ‌product,‌ ‌Farmington‌ ‌Research‌ ‌is‌ ‌confident‌ ‌their‌ ‌extract‌ ‌is‌ ‌so‌ ‌far‌ ‌unmatched‌ ‌in‌ ‌the‌ ‌industry.‌ ‌Additionally,‌ ‌after‌ ‌noticing‌ ‌the‌ ‌industry’s‌ ‌general‌ ‌lack‌ ‌of‌ ‌experience‌ ‌when‌ ‌it‌ ‌came‌ ‌to‌ ‌infused‌ ‌beverages,‌ ‌Speed‌ ‌and‌ ‌Meshell‌ ‌have‌ ‌made‌ ‌it‌ ‌a‌ ‌point‌ ‌to‌ ‌work‌ ‌directly‌ ‌with‌ ‌their‌ ‌clients,‌ ‌which‌ ‌means‌ ‌much‌ ‌of‌ ‌their‌ ‌time‌ ‌is‌ ‌spent‌ ‌helping‌ ‌others‌ ‌problem-solve.‌ ‌Many‌ ‌Farmington‌ ‌clients,‌ ‌for‌ ‌example,‌ ‌need‌ ‌help‌ ‌maintaining‌ ‌flavor‌ ‌profiles,‌ ‌which‌ ‌can‌ ‌be‌ ‌exceptionally‌ ‌challenging‌ ‌for‌ ‌novice‌ ‌beverage‌ ‌manufacturers.‌
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“Working‌ ‌as‌ ‌a‌ ‌team‌ ‌with‌ ‌a‌ ‌brand‌ ‌owner‌ ‌is‌ ‌essential,”‌ ‌Speed‌ ‌said.‌ ‌“We‌ ‌often‌ ‌spend‌ ‌more‌ ‌time‌ ‌mentoring‌ ‌new‌ ‌players‌ ‌in‌ ‌the‌ ‌beverage‌ ‌world‌ ‌than‌ ‌we‌ ‌do‌ ‌selling‌ ‌them‌ ‌cannabis‌ ‌extract.”
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The‌ ‌founders‌ ‌said‌ ‌they‌ ‌even‌ ‌considered‌ ‌launching‌ ‌a‌ ‌separate‌ ‌consulting‌ ‌service‌ ‌but‌ ‌instead‌ ‌have‌ ‌decided‌ ‌to‌ ‌offer‌ ‌their‌ ‌insights‌ ‌as‌ ‌an‌ ‌all-inclusive‌ ‌Farmington‌ ‌package.‌ ‌Instead‌ ‌of‌ ‌gatekeeping‌ ‌their‌ ‌beverage‌ ‌aptitude,‌ ‌Meshell‌ ‌and‌ ‌Speed‌ ‌want‌ ‌to‌ ‌bring‌ ‌even‌ ‌more‌ ‌manufacturers‌ ‌into‌ ‌their‌ ‌world‌ ‌of‌ ‌making‌ ‌palatable‌ ‌and‌ ‌effective‌ ‌hemp/cannabis-infused‌ ‌drinks.
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While‌ ‌the‌ ‌beverage‌ ‌market‌ ‌is‌ ‌keeping‌ ‌the‌ ‌team‌ ‌busy,‌ ‌Speed‌ ‌and‌ ‌Meshell‌ ‌have‌ ‌also‌ ‌been‌ ‌considering‌ ‌additional‌ ‌applications‌ ‌for‌ ‌their‌ ‌extract‌ ‌—‌ ‌for‌ ‌example,‌ ‌because‌ ‌liquids‌ ‌are‌ ‌so‌ ‌heavy,‌ ‌shipping‌ ‌costs‌ ‌are‌ ‌consistently‌ ‌a‌ ‌major‌ ‌issue‌ ‌for‌ ‌the‌ ‌cannabis‌ ‌beverage‌ ‌market.‌ ‌Farmington‌ ‌is‌ ‌working‌ ‌with‌ ‌clients‌ ‌to‌ ‌solve‌ ‌this‌ ‌issue‌ ‌by‌ ‌formulating‌ ‌drops‌ ‌and‌ ‌powders‌ ‌that‌ ‌could‌ ‌be‌ ‌mailed‌ ‌separately‌ ‌and‌ ‌added‌ ‌to‌ ‌water‌ ‌after‌ ‌they‌ ‌reach‌ ‌the‌ ‌consumer.‌ ‌Hemp-infused‌ ‌powders‌ ‌and‌ ‌drops‌ ‌have‌ ‌already‌ ‌made‌ ‌great‌ ‌replacements‌ ‌for‌ ‌a‌ ‌ready-made‌ ‌can‌ ‌or‌ ‌bottle‌ ‌of‌ ‌infused‌ ‌liquids‌ ‌and‌ ‌the‌ ‌team‌ ‌has‌ ‌been‌ ‌playing‌ ‌with‌ ‌how‌ ‌to‌ ‌innovate‌ ‌the‌ ‌idea‌ ‌even‌ ‌further.‌
‌
Meanwhile,‌ ‌lines‌ ‌between‌ ‌the‌ ‌many‌ ‌beverage‌ ‌markets‌ ‌continue‌ ‌to‌ ‌blur‌ ‌as‌ ‌beer‌ ‌brands‌ ‌craft‌ ‌non-alcoholic‌ ‌drink‌ ‌options‌ ‌and‌ ‌seltzers‌ ‌continue‌ ‌a‌ ‌slow‌ ‌but‌ ‌apparent‌ ‌takeover‌ ‌of‌ ‌the‌ ‌alcohol‌ ‌market.‌ ‌Speed‌ ‌said‌ ‌the‌ ‌blurring‌ ‌of‌ ‌these‌ ‌lines‌ ‌could‌ ‌be‌ ‌a‌ ‌perfect‌ ‌opportunity‌ ‌for‌ ‌hemp-infused‌ ‌drinks‌ ‌to‌ ‌gain‌ ‌traction‌ ‌with‌ ‌consumers‌ ‌and‌ ‌match‌ ‌the‌ ‌industry’s‌ ‌projected‌ ‌growth‌ ‌margins.‌
‌
Despite‌ ‌their‌ ‌many‌ ‌innovations‌ ‌and‌ ‌forward-looking‌ ‌ideas,‌ ‌Speed‌ ‌and‌ ‌Meshell’s‌ ‌passion‌ ‌for‌ ‌solving‌ ‌problems‌ ‌has‌ ‌persisted.‌ ‌As‌ ‌they‌ ‌continue‌ ‌to‌ ‌grow‌ ‌and‌ ‌innovate,‌ ‌Farmington‌ ‌Research‌ ‌remains‌ ‌a‌ ‌solid‌ ‌choice‌ ‌for‌ ‌brands‌ ‌who‌ ‌are‌ ‌looking‌ ‌to‌ ‌expand‌ ‌into‌ ‌water-soluble‌ ‌hemp/cannabis‌ ‌extractions‌ ‌and‌ ‌the‌ ‌infused‌ ‌beverage‌ ‌market.

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New Jersey Cannabis Legalization Deal Implodes

1/12/2021

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The New Jersey lawmakers who introduced a so-called “clean-up” bill requested by Gov. Phil Murphy (D) in order for him to sign cannabis legalization bills have pulled their support for the measure with no plans to revisit it, Politico reports.

Murphy has delayed signing the voter- and Legislature-approved bill over technical issues that shield minors from cannabis-related penalties. Democratic Sens. Teresa Ruiz and Nicholas Scutari sponsored the compromise measure last week which imposed a $250 fine for individuals 18 to 20-years-old caught with up to six ounces of cannabis and a $500 fine for possessing more than six ounces. Those under 18 would not have to pay a fine but could face juvenile delinquency penalties, such as community service.

The state’s decriminalization bill – which is also being held up by Murphy as he wants to sign the reforms as a package – removed all penalties for those under 21 while the legalization bill only includes a petty disorderly persons offense for those younger than 21 caught with up to an ounce.

An unnamed administration official told Politico that were Murphy to sign the bills without the compromise measure, New Jersey would be “the only state to legalize marijuana for minors.”

Brandon McKoy, of New Jersey Policy Perspective, told Politico that the impasse has wound up “threatening the whole of cannabis legalization which has been worked on for so long.”

Ruiz explained that removing penalties for underage offenders was the lawmakers’ intent.

“This is a policy perspective. This is not a drafting issue or a regulation issue. That’s why the bills moved forward the way they did.” – Ruiz to Politico

During a Monday news conference, Murphy said he was “still optimistic” an agreement could be struck but that officials “got to somehow thread the needle” to address the concerns. He added that while he doesn’t want “more kids getting tangled up in the criminal justice system” the reforms were “never about legalizing marijuana for our kids.”

“That was never what this was about,” the governor said during his remarks. “That’s not what the voters voted on in the referendum. That’s not what we’ve felt strongly and passionate about.”

In November, New Jersey voters passed the Legislature-approved ballot initiative to legalize cannabis by a 2:1 margin.

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DC Capitol Rioter Has Ties to Cannabis Industry

1/12/2021

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A rioter who live-streamed herself partaking in the January 6, 2021 insurrection by angry supporters of President Donald Trump at the U.S. Capitol in Washington DC has apparent ties to the cannabis industry, according to the Midland Reporter-Telegram.

Jenny Cudd is a former mayoral candidate for the city of Midland, Texas, where she owns the florist shop Becky’s Flowers. During her unsuccessful 2019 mayoral run, Cudd said that she owned a partial stake in an Oklahoma-based cannabis consulting company and, in July 2020, she appeared in a marketing video entitled “Cannabis Investment Opportunity – Summit Boys presented by Jenny Cudd.” In that video, Cudd said she has partial ownership in two Oklahoma cannabis farms and even helped raise $1.25 million in investor capital for one of the facilities. She also said she has interest in an Oklahoma-based dispensary.

Summit Boys — who did not respond to repeated requests for comment — is a California-based cannabis extracts brand that has announced plans to expand to Oklahoma.

Notably, Cudd is also listed as the contact for the Summit Boys Oklahoma profile on LiftOffCapital.com, a matchmaking site for investors and entrepreneurs. She also appears to be featured in a Summit Boys Instagram post announcing the company’s expansion to Oklahoma posted on January 5, 2020 (almost exactly one year before the recent insurrection).

Jenny Cudd was featured in a Summit Boys Instagram post on January 5, 2020, announcing the company’s expansion to Oklahoma.

Cudd was identified as a participant in the January 6 riots because she was live-streaming to her now-deleted Facebook page as she illegally entered and trespassed throughout the U.S. Capitol Building. At one point during the feed, she admitted to having helped a group of rioters break into House Speaker Nancy Pelosi’s office.

“We had to scale a wall to get there and we just pushed and pushed and pushed, and yelled go and yelled charge, and we just pushed and pushed and pushed and we got in,” Cudd said in the video. “There was a door that was open, we went through the door and we were inside.”

During a January 8 interview with NewsWest 9, Cudd said she did not regret her actions. “I did not break any laws, I went inside the Capitol completely legally and I did not do anything to hurt anybody or destroy any property,” she said. Cudd also said that she has received multiple death threats since partaking in the event.

The FBI — which has requested tips to help identify and arrest participants in the insurrection — says it is reviewing allegations of Cudd’s involvement.

During the insurrection, which has been labeled an act of domestic terrorism, pro-Trump rioters overwhelmed DC and Capitol police, breaking windows and doors, forcing entry to the building and lawmakers’ offices, and committing various other acts of vandalism. Five people died because of the riots, including an on-duty police officer who was struck in the head with a fire extinguisher and a woman who was shot by police while forcing her way through a barricaded door inside the Capitol.

Update: Jenny Cudd has been arrested by the FBI for her involvement in last week’s violent siege against the U.S. Capitol building, Newsweek reports.

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Michigan Cannabis Sales Increased 482% During 2020

1/12/2021

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Adult-use cannabis sales in Michigan jumped 482% in 2020 to more than $500 million, according to Headset data outlined by the Detroit Metro Times. Michigan voters approved the reforms in 2018 and sales started December 1, 2019.

According to the report, flower accounted for 47.8% of adult-use sales, followed by vape pens (20.6%) and edibles (14.9%).

During the first half of the year, medical cannabis sales were outpacing recreational sales; however, by the end of 2020, adult-use sales had surpassed medical sales by more than $32 million, the report says. According to state Marijuana Regulatory Agency data, in November alone – the last month reported – total cannabis sales in Michigan eclipsed $37.2 million.

For about a month last year, recreational cannabis sales in the state sustained $7 million per week. From April 13 to April 19, sales reached $7.2 million and remained above that mark through the week ending May 10, when sales topped $7.9 million.

Despite having legalized cannabis more than two years ago, sales have yet to commence in Detroit – the state’s most populous city. Officials only announced last month that licenses would be issued in the Motor City by the summer and will go online for applicants on January 19. Those licenses will, at first, only be available to so-called “legacy applicants,” meaning licensees must have “lived in Detroit for 15 of the last 30 years; lived in Detroit for 13 of the last 30 years and are low-income; or lived in Detroit for 10 of the last 30 years and have a past marijuana-related conviction.”

Legacy licenses will be eligible for a 25% discount of fair market value on city property and can access technical assistance and reduced fees. An ordinance by the city council requires half of all of the city’s cannabis licenses to be awarded to legacy applicants. Mayor Mike Duggan (D) has called the legacy rules “by far the most controversial provision” of the city’s licensing scheme and said officials “will not issue a license to any business unless 50% of the licenses in that category are Detroiters.”

According to state figures outlined by the Detroit News, more than 1,400 Michigan municipalities have opted out of recreational sales.

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3rd Time’s the Charm? Cuomo Includes Legalization in New York Budget

1/12/2021

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In his State of the State address on Monday, New York Gov. Andrew Cuomo (D) said the state “will legalize adult-use recreational cannabis” this session and included the reforms in his Executive Budget for the third consecutive year.

“This will raise revenue and end the over-criminalization of this product that has left so many communities of color over policed and over incarcerated.” – Cuomo, State of the State, Jan. 11, 2021 

A 2018 report requested by the governor outlined in the budget found that more than 800,000 people have been arrested for low-level possession in the state, the majority of which are people of color.

“Moreover, the report found that a regulated program would reduce racial disparities in criminalization and incarceration rates,” the budget states.

According to the governor’s budget, cultivators would pay a $1 tax per dry gram of flower, a $0.25 tax per gram of trim, and a $0.14 tax per gram of “wet” cannabis. Retail sales would be taxed 20% with another 2% tax “collected in trust for and on account of the county or a city with a population of a million or more in which the retail dispensary is located.”

The governor’s office estimates legalized cannabis would be worth $300 million in tax revenues for the state once the market is fully mature. In November, Cuomo said he expected the reforms would be approved in the 2021 session “because the state is desperate for funding” due, in part, to the coronavirus response.

The budget also includes funding for the Office of Cannabis Management – which he announced last week – noting that it would require staff from the state’s Division of Alcoholic Beverage Control and Department of Health.

In 2019, the first time Cuomo included legalization in the budget, he faced pushback from law enforcement, teachers’ groups, drug treatment advocates, a physician’s lobby, and downstate Democrats. Instead, lawmakers agreed to expand the state’s decriminalization law and allow expungement of low-level cannabis offenses.

Last session, legalization was pulled from budget talks amid the pandemic as lawmakers shifted their focus to coronavirus-related issues. Lawmakers and Cuomo also had disagreements over how revenues would be disbursed.

In New York, Democrats hold the governorship and both chambers of the legislature.

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Study Investigates Cannabis Withdrawal Symptoms

1/12/2021

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A recent study published in the journal Addiction and led by a group of researchers from the University of Michigan and the VA Ann Arbor Health Care System highlights concerns around “cannabis withdrawal syndrome.” The study looks at two years of surveys from 527 registered medical cannabis patients in Michigan.

In order to establish a baseline for the withdrawal symptoms, participants were asked if they suffered from fifteen different symptoms like trouble sleeping, nausea, or irritability after going a “significant time without cannabis.” Then, based on the number of symptoms they experienced, Survey participants were grouped into three categories — mild, moderate, or severe.

According to the Michigan study, a “baseline” 41 percent were in the mild category, 34 percent had moderate symptoms and 25 percent had severe cannabis withdrawal symptoms.

Over the two-year period, the researchers found that patients who had mild symptoms usually stayed in the category and were less likely to have an increase in withdrawals. Researchers found that those in the moderate category were more likely to have a decrease in withdrawals over time and at the end of the two-year study only 17 percent remained in the severe category. Additionally, they found after the first year that 13 percent had moved up a category and, after the second year, eight percent reported worsening symptoms. The severe group was made up of younger participants, “long-term” cannabis users, and people with reported mental health issues. Older cannabis patients were less likely to report increased cannabis withdrawal.

“Some people report experiencing significant benefits from medical cannabis, but our findings suggest a real need to increase awareness about the signs of withdrawal symptoms developing to decrease the potential downsides of cannabis use, especially among those who experience severe or worsening symptoms over time.”  — Study lead Lara Coughlin, Ph.D., via Michigan Medicine

She says patients may perceive cannabis with drawl symptoms as part of their underlying health issue and suggests possibly talking to their health care providers about other pain treatments like cognitive behavioral therapy.

Some of the signs of cannabis withdrawal syndrome, besides a general craving, include, “anxiety, sleep difficulties, decreased appetite, restlessness, depressed mood, aggression, irritability, nausea, sweating, headache, stomach pain, strange dreams, increased anger and shakiness,” according to the report.

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South Dakota Gov. Joins Effort to Block Voter-Approved Cannabis Legalization

1/11/2021

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In an executive order issued on Friday, Republican South Dakota Gov. Kristi Noem contends that the recreational cannabis ballot initiative approved by voters in November “was not proper and violated the procedures set forth in the South Dakota Constitution.”

The directive also states that Highway Patrol Superintendent Col. Rick Miller and Pennington County Sheriff Kevin Thom have legal standing to sue over the amendment because they are acting on Noem’s behalf.

In the lawsuit, the plaintiffs claim that the measure violates initiative one-subject requirements. Miller and Thom argue that the broad reforms – a constitutional amendment – need to be approved through a constitutional convention.

South Dakota Attorney General Jason Ravnsborg’s (R) office and a pro-legalization group who led the campaign for the amendment argue that the amendment only covers one subject – cannabis.

Following the General Election results – when 53% of voters approved cannabis legalization and another 70% approved allowing medical cannabis – Noem said the reforms are “the wrong choice for South Dakota’s communities.”

“We need to be finding ways to strengthen our families, and I think we’re taking a step backward in that effort. … I’m also very disappointed that we will be growing state government by millions of dollars in costs to public safety and to set up this new regulatory system.” – Noem in an email to the Argus Leader

In 2019, Noem vetoed a bill to legalize hemp in the state, worried that it would legalize cannabis “by default.” She did sign a hemp legalization bill last year which included so-called “guardrails” she required including $3.5 million in funds to start the program, broad consent by growers for law enforcement inspections and a requirement they pay any costs associated with eradication of plants that test over the legal THC limits, and the banning of smokable hemp products.

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UK Police Commissioner Suggests Giving Cannabis to Prisoners

1/11/2021

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North Wales Police and Crime Commissioner Arfon Jones is advocating for a plan that would see prisons give drug-dependent inmates cannabis to determine whether it could reduce overdose deaths and violence, and help with opioid addiction, the Guardian reports.

Jones said that synthetic cannabinoids – known a spice – are common in prisons and are deadly, whereas cannabis is not. He added that prisoners are given heroin substitutes, such as methadone and buprenorphine, and others are given strong pain killers which are addictive and potentially dangerous.

“If they’re on opioids, why can’t they be prescribed cannabis? At the end of the day, opioids are a damn sight more dangerous than cannabis. It would be an improvement on the illegal spice smuggled in by corrupt prison officers too.” – Jones to the Guardian

Last year, the Guardian reported that over the past five years, more than 300 prison officers and outside staff in England and Wales had been fired or convicted for smuggling in illegal items, including drugs.

Jones said that if “the aim of the game is to make prisons safer” and officials are “serious about reducing violence in prisons” plans should be in place to “address the causes and that’s psychoactive substances.”

From 2008 to 2016, there were 88 drug-related deaths in U.K. and Wales prisons, according to Office for National Statistics data outlined by the Guardian. The majority of those deaths were related to opioids, but deaths related to spice have increased in recent years, the report says.

Jones, who is not seeking re-election to his post, suggests that prison officials “supply cannabis in controlled conditions and see if offenses reduce.”

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Amsterdam Mayor Officially Proposes Banning Foreigners from Cannabis Coffee Shops

1/11/2021

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The mayor of Amsterdam has introduced a plan to ban cannabis sales to tourists and foreigners in the capital city of the Netherlands. Amsterdam has about 30% of all of the cannabis coffee shops in the Netherlands and in her announcement, Mayor Femke Halsema said she “wants to reduce criminal influences and bring the relationships between residents and visitors more into balance.”

The plan was first announced last year as Halesma said she wanted to clean up the city’s image and the over-crowded red-light district. In 2013, local officials passed a law making coffee shops residents-only but the law has not been enforced.

Joachim Helms, spokesman for the Bond van Cannabis Detaillisten, said that banning non-residents from the coffee shops will only turn them to street dealers and public consumption.

“A more transparent market is a good thing but at the same time this plan is hugely negative for livability in the inner city,” he told Dutch News. “That’s not a good swap.”

Robbert Overmeer, a bar owner and chair of the businessowners’ group BIZ Utrechtsestraat who organized a petition last year to ban non-citizens from coffee shops, told Dutch News that the coffee shops appealed to less desirable tourists. He noted that coffee shops don’t pat VAT and “many are in the hands of hardened criminals.”

“The coffee shops are one of the most important links in the chain of low-value tourism: Nutella pancake shops, cheap cafes and restaurants, souvenir shops that will take over the inner city. We don’t necessarily just want people with a lot of money: we say ‘come to Amsterdam for the museums, the food, for love or for friends, but not to sculk around, smoke dope and do drugs.’” – Overmeer to Dutch News

Don Ceder, a lawyer and city councilor, told Dutch News that the ban “is a very positive step when it comes to making the city livable.” He added that when tourism was restarted after the coronavirus lockdowns the majority of visitors were “people who came for drug tourism.”

“We need to change the international image of Amsterdam as the drugs capital of the world and if we do that I believe we will draw a different crowd and make sure the city becomes more liveable,” he said in the report.

A survey by the Guardian last year found 34% of tourists said they would visit the city less often if they were not allowed to use cannabis, while 11% said they would never visit again. Another 22% said they would have someone else go to the coffee shop to purchase products for them, and 18% said they would find another way to buy cannabis while in the city. In all, 57 percent of respondents said the coffee shops played an important role in their decision to visit Amsterdam.

Cannabis is not legal in Amsterdam, rather the city has a “policy of tolerance.”

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Colorado Gov. Asks for $5 Million to Boost Cannabis Social Equity

1/11/2021

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Colorado’s Governor is requesting $5,000,000 dollars to jumpstart the state’s social equity efforts by providing business assistance programs for cannabis entrepreneurs who were most affected by the war on drugs, Marijuana Moment reports.

Looking to mirror programs like the Federal Small Business Association and the State Small Business Development Center (SBDC), the state’s Office of Economic Development & International Trade (OEDIT) is asking for the one-time cash infusion to fund “a new cannabis advancement program, that will include workshops and other business development services.”

“The SBDCs provide candid, free advice on developing a business plan, how to access capital, how to market a business, etc.,” according to the proposal, “and unfortunately, marijuana businesses have not been able to take advantage of that assistance due to the federal prohibition.”

The governor’s proposal would provide technical assistance and establishes grant and loan programs for social equity applicants.

“Technical support and access to capital are key pieces of OEDIT’s programming to help businesses get off the ground and grow successfully, and a dedicated staff member can help cannabis entrepreneurs—some of whom may have been previously shut out—navigate this process.” — Excerpt from Gov. Polis’ budget proposal

Colorado began implementing its social equity program last year.

In October, Gov. Polis pardoned thousands of Coloradans who had been convicted of an ounce or less of cannabis.

“We are finally cleaning up some of the inequities of the past by pardoning 2,732 convictions for Coloradans who simply had an ounce of marijuana or less,” Gov. Polis said before signing that executive order.  “Too many Coloradans have been followed their entire lives by a conviction for something that is no longer a crime, and these convictions have impacted their job status, housing, and countless other areas of their lives.”

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