Madison, Wisconsin Decriminalizes Cannabis Possession

11/19/2020

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The Madison, Wisconsin Common Council on Tuesday approved a cannabis possession decriminalization ordinance, including up to 28 grams for adults 18-and-older and paraphernalia, Channel 3000 reports. Under the ordinance, possession fines are reduced to $1.

Alder Mike Verveer, the measure’s sponsor, during the meeting called the reforms “long overdue.” 

“The reality is we shouldn’t even be talking about this tonight. It’s preposterous and outrageous that the Wisconsin State Legislature has not moved toward legal and regulated adult use of cannabis like so many states have across the country, including many of our neighboring states.” – Verveer via Chanel 3000

Wisconsin is bordered to the south by Illinois and to the north and east by Michigan – in both states cannabis is legal for adult-use. Cannabis is also largely decriminalized in Minnesota, Wisconsin’s western neighbor.

Smoking cannabis will still be banned in areas where smoking tobacco is not allowed, cannabis possession within 1,000 feet of a school or on a school bus is not covered, neither is delivery nor use in a car that is in operation.

The city has had a law on the books since 1977 that allows residents to consume or possess cannabis in private residences, according to the Wisconsin State Journal.

Verveer told the Badger Herald that in an advisory referendum during the 2018 election more than 76 percent of Dane County voters favored legalizing cannabis for adults.

“I am pleased that Madison will largely wipe out any arrest for cannabis, or cannabis-related paraphernalia,” he said to the Herald. “So it will greatly diminish the existing discretion that Madison cops have to issue citations for possession of cannabis and for cannabis and drug paraphernalia. … I believe that this overdue reform will allow for an increased trust between law enforcement and the communities they serve.”

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Cresco Labs Reports Record Q3 Revenues of $153M

11/19/2020

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Cresco Labs on Wednesday announced record third-quarter revenues of $153.3 million, a 63 percent, $59 million quarter-over-quarter increase. The company also reported a record EBITDA of $46.4 million, a 182 percent increase from the previous quarter.

Cresco said that it earned $90.5 million in wholesale revenue, positioning it as the largest wholesaler of branded products in the industry.

Charles Bachtell, Cresco Labs co-founder and CEO, noted that the firm increased its revenues by $87 million from Q1 to Q3, “while keeping SG&A flat.”

“The investments we made to support growth are paying off, and as a result our profitability has grown dollar for dollar with gross profit. Because of the decisions we’ve made, the changes we’ve managed through and the hard work devoted by our team over the last 12 months, Cresco Labs has substantiated itself within the very top tier of the industry and confirmed the value that is driven by our differentiated strategy.” – Bachtell in a statement

Additionally, the company reported a net income of $4.9 million, which includes unrealized gains and losses on mark-to-market instruments, changes in fair value of biological assets, and interest and tax expense. Cresco said it has net cash provided by operating activities of $17.8 million, a $7.9 million increase compared to Q2.

The company said the “increase in cash provided by operating activities was driven by increased operating leverage across the business as the company scales.”

On Tuesday, Curaleaf – another multi-state operator – also announced record revenues during the third quarter.

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Candace Clark: Empowering Social Equity Applicants Nationwide

11/19/2020

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Growing up in Montgomery, Alabama, Candace Clark has had a lifelong interest in science and technology. She was accepted into a specialized school at a young age and in high school, she studied Information Technology. At the time, she was the first female student to obtain multiple professional certifications before graduating high school. Candace also realized that not everyone had access to the same technology.

The young tech talent moved on to study in college before obtaining an IT position with the Department of Defense and Homeland Security. This was her very first IT position and Candace was often the only Black woman in the room. She was inspired to look for ways to help others develop skills allowing them to break into the tech space. That mission has driven her career and she now resides in Chicago, Illinois, where she embraced her passion of empowering Black women and other marginalized groups through the use of technology.

Now, the cannabis industry is her vehicle. Candace has built an online cannabis community resource platform with her husband, worked with Chicago NORML, and now serves as Chief Compliance & Regulatory Officer for S.E.E.N. as they work to elevate social equity applicants in the cannabis industry.

Ganjapreneur: What is LinkUp and how does it serve the cannabis industry? Who should use the platform and why?

Candace Clark: LinkUp is a community resource and education app for Impactful brands and organizations in underserved communities who may or may not deal directly with cannabis or its ancillary industries but they are doing the work to help reverse the negative impacts of the war on drugs. Oftentimes information isn’t readily available to the low-resourced demographics who could benefit the most. We are going straight to the source, giving the non-profit organizations and culturally responsible entrepreneurs a platform to connect – both virtually and in real life – with their target audience to amplify their voices, expand their networks, and give community members the opportunity to get involved.

When did you first have the idea for LinkUp? As this idea solidified, how did you pursue outside help from accelerators like the Founder Institute?

My husband is from the South side of Chicago and participated in the informal economy. Even with legalization, it’s clear the same rules don’t apply to us or our communities. He recognized early on that we don’t have the resources to realistically play the game that is the legal plant-touching cannabis industry – “but what about us?” From that question came the idea for LinkUp.

I had worked in Federal Government IT Contracting for years. At the time, Hi Tech Consulting was my “side-hustle” where I provided Consulting and Digital Support Services for small brands and social media influencers. So he was one of my first case studies in the industry. I was able to walk him through the process of consciously designing a business plan and model that allowed him to use his transferable skills in the informal market to realistically enter an industry that has been against his community while simultaneously helping to repair the damages amplified by the war on drugs.

You built LinkUp with your husband, how has the experience of being life partners affected the path as business partners? Do you have advice for other couples with joint entrepreneurial ambitions?

I can honestly say it’s unlike anything we’ve ever done before. I would say the #1 piece of advice I can give is to clearly define your communication. Am always your wife but there has to be a time and a place to step away from the business. We have three kids as well and, as you know and many can relate, covid-19/quarantining with kids is a challenge in itself. Add homeschooling and multiple businesses and it can easily get overwhelming. Having a plan, setting goals and celebrating the small wins in your personal life, relationship, family and business is a must. Self care always.

How did you first get involved in government, and more specifically, lobbying for cannabis social equity and delivery access in Illinois? Do you have plans to continue this work?

We attended a lobby day workshop here in Chicago in preparation for lobby day in Springfield at the top of this year. That preparation was critical to our success. Understanding how lobbying works helped us ask the right questions to get the information we needed to ensure our eligibility in the Illinois R3 application process which is being funded by the cannabis tax revenue specifically to rebuild the communities that were most negatively impacted by the war on drugs. LinkUp was the basis of our application because, in addition to providing a platform for these grassroots organizations, we will also be working on the back end to ensure that they are operating as efficiently as possible when applying for and maintaining funding, increasing business capacity, and providing technical assistance.

In this learning process I’ve been able to connect with an amazing group of social equity applicants to form an official 501c6 trade association, the Social Equity Empowerment Network or S.E.E.N.™️ S.E.E.N. is a consortium of cannabis businesses and ancillary service providers working to create a diverse, equitable industry that’s a vehicle for positive economic development by removing barriers to entry, provide resources, and cultivate networking opportunities for cannabis entrepreneurs. Lobbying will be a major part of that. As the Chief Compliance and Regulatory Officer of Co-Chair of the Legal and Compliance Committee of S.E.E.N.™️, I will continue to be involved in the lobbying efforts and I’m excited to learn more.

Has the social equity licensing process application process been transparent in Illinois? What challenges have applicants faced and how could these challenges have been avoided?

The licensing process in Illinois has not been transparent on the part of the State of Illinois, the Department of Commerce and Economic Opportunity (DCEO), or KPMG, the entity contracted to review and score the applications. Firstly, the legislation called for “top-scorers” to be included in the lottery process, however, the tie-breaking rules announced hastily at the end of the application window created a situation where only “perfect” scores were included or considered. I feel that if equity was the true intent of the legislation, a lottery process is not only counterproductive but exclusionary. In addition to this, there were many challenges faced during the application submission and scoring process. The largest issues are at the heart of transparency, or in this case, the lack thereof. Many applicants never received deficiency notices, a process which was written into legislation to give applicants, especially true social equity applicants due process in correcting any missing, inaccurate, or unclear information in their submissions. I spoke about this and other issues in my Op-Ed piece entitled, “Illinois Illusion of Social Equity” which I shared on LinkedIn.

I feel that an electronic scoring platform with real time updates and progress tracking would be most effective in streamlining this process, which is a prediction we made as a company far before applications were due. Many of the reasons why my husband and I decided not to apply and to take the route that we did was because we identified a gap that some may not have considered. We understood, because of certain experience we’ve had in federal contracting, that these application processes are very technical and can lead to many sleepless nights and frustrations for the average small business owners that were targeted throughout the excitement of this process. Whether intentional or not, it is our hope that more resources be put into providing certain technical support and training for minority business owners so that they can take advantage of the opportunities being presented to them – that is, in fact, equity right?

What are the barriers to entry for social equity applicants? How is S.E.E.N.™️ working with social equity applicants to succeed despite these barriers?

Lack of technical support, lack of training and education as it relates to the industry, specifically around zoning and taxes, lack of access to affordable capital, lack of buying power, small margins to name a few.

S.E.E.N.™️ is working with social equity applicants, as well as other ancillary businesses to create a network of resources to help close these gaps. This is being done through advocacy, specialized education, training and workshops, networking events, access to financial and risk management resources, and lobbying. We understand that there is power in numbers and much more can be accomplished when we work together and stand collectively on the principles that promote our very best interests and achievements as a community.

S.E.E.N.™️ supports the passage of HB5527. How would the passing of this bill make the cannabis industry more accessible? What other goals have been set by the non-profit trade organization?

Yes we definitely support HB5527 and the amendment stating that “At least half of all cannabis and cannabis-infused products sold by a cultivation center must be sold to independent dispensing organizations.” This amendment helps fight against the smaller independent organizations being frozen out of the market. This is an industry that has been built on relationships and one of the barriers to entry we see with the true social equity applicants is not having a seat at the right tables. We already see this issue arise in the application process so as we look forward to craft grow license announcements we want to be proactive in carving out our place in that regard with hopes of vertical integration. At the end of the day, that’s how money is made in any industry. We aren’t looking for handouts but more so demanding the equitable opportunity to do the work and prove ourselves.

Thanks again, Candace, for taking the time to answer our questions! Learn more at LetsLinkUp.com and equityempower.org.

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Study: Cannabis THC Levels Have Increased Around the World

11/18/2020

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A new study has determined THC concentrations in “herbal cannabis” and “cannabis resin” — more commonly referred to as “hash” — have risen significantly over the past 50 years.

Conducted by the Addiction and Mental Health Group at the University of Bath, the study looked at more than 80,000 samples analyzed in investigations from the US, UK, Netherlands, France, Denmark, Italy, and New Zealand. The researchers found THC concentrations in cannabis flower rose 0.29% each year between 1970 and 2017, for a total increase of about 14%. THC concentrations in hash products, meanwhile, increased 0.57% each year between 1975 and 2017 for an increase of about 24%.

Notably, an analysis of cannabis flower and hash products that were seized between 1995 and 2017 found no increase in CBD concentrations.

“In the context of typical use, our findings suggest that the quantity of THC in a typical gram of cannabis rose by 2.9 milligrams each year for all herbal cannabis, and by 5.7 milligrams each year for cannabis resin. These annual increases in milligrams of THC per gram of cannabis are in the range of low single doses that can produce mild intoxication, similar to a ‘Standard THC Unit’ of 5 milligrams. Changes in THC concentrations over time could also influence the efficacy and safety of cannabis used for medicinal purposes in the absence of standardized dosing information for illicit cannabis products.” — Excerpt from the study

The researchers believe the increase of THC in cannabis flower was due to an increase of the market share for sinsemilla — or cannabis with high concentrations of THC — and not due to an overall increase in THC among specific cultivars. Furthermore, they believe the elevation of THC concentrations in hash products (while CBD concentrations remained steady) can be explained by the increase of THC-rich material at the point of cannabis resin production.

Despite considering studies from around the world, the authors note that, due to the majority of the studies included in their research coming from the US, the results are not “globally representative.” Additionally, “non-randomized” sampling by law enforcement may have contributed to potential bias in the study.

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Mississippi Supreme Court to Hear Anti-Medical Cannabis Challenge

11/18/2020

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The Mississippi Supreme Court is set to hear a lawsuit challenging the signature-gathering process for the state’s medical cannabis initiative, which was filed one day prior to the election, the Associated Press reports. The lawsuit, filed by the city of Madison and its Mayor Mary Hawkins Butler, argues that the signature-gathering process failed to meet state standards.

The plaintiffs argue that the initiative process is outdated because the state constitution requires that no more than one-fifth of the signatures come from any congressional district, which creates a mathematical impossibility with four districts, the report says.

The constitution does require that certified signatures for an initiative come equally from five congressional districts, but the requirement was written in the 1990s. In the 2000 Census, Mississippi lost a Congressional seat but the constitutional requirement was never updated.

In 2009, the state attorney general’s office issued a legal opinion indicating that initiative sponsors should gather signatures from the five districts used in the 1990s. Last year, the secretary of state said the medical cannabis initiative qualified for the ballot because petitioners had gathered enough signatures from each of the five old districts.

State Supreme Court Justice Josiah Coleman on Tuesday signed an order setting deadlines of December 7 for written arguments from the mayor’s attorneys, December 28 for written arguments from Secretary of State Michael Watson’s attorneys, and January 7 for the mayor’s response.

The state attorney general’s office told the AP that the lawsuit is “woefully untimely,” while the initiative’s sponsors said the mayor has misinterpreted the signature-gathering requirements for getting a proposal onto the ballot.

The measure was approved by nearly 74 percent of Mississippi voters.

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Vitamin Shoppe Launches CBD Line Using US-Grown Hemp

11/18/2020

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The Vitamin Shoppe has launched its first proprietary CBD products after first debuting the hemp-based products in its stores last year. CEO Sharon Leite said the product launch for the plnt and Vthrive brands “further establishes the Vitamin Shoppe as the trusted national destination for CBD innovation and as a leader in health and wellness solutions.”

The brands use CBD derived from U.S.-grown hemp.

In August of last year, the retailer also launched an online and in-store CBD HQ concept after the company experienced “robust interest” in CBD products, the company said in a press release.

“Bringing these new CBD products to market is a decisive milestone in the expansion of our private brands business and The Vitamin Shoppe’s commitment to industry-leading innovation. The exceptional skill and knowledge of our product development and scientific and regulatory teams delivered a range of CBD formulas that are second to none in this dynamic product category. Our ingredient purity, unique CBD extraction methods, and rigorous testing guarantees the highest level of quality from farm to lab to shelf.” – Leite in a statement

The Vthrive tinctures come in three tiers of potency – from 15 milligrams to 55mg including peppermint and chocolate mint flavors. The plnt brand includes potencies from 10mg to 40mg in vanilla or unflavored.

The company said it plans to introduce a hemp oil line in states where CBD is prohibited.

The Vitamin Shoppe, a subsidiary of Franchise Group Inc., appears to be the first national wellness retailer to launch its own CBD line. Other national chains – such as Walgreens, CVS, Walmart, Kroger, and Family Video – started selling CBD products following the passage of the 2018 Farm Bill which legalized the cannabinoid.

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Curaleaf Reports Record Revenues, Names New CEO

11/18/2020

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Curaleaf reported record financial and operational results for the third quarter of the year with pro forma revenue of $215.3 million, and year-to-date managed revenue of $419.6 million, including third-quarter revenues of $193.2 million – a 164 percent increase.

The firm indicated an approximately $46,934,000 gross profit increase from cannabis sales from $42,735,000 in Q2 to $89,669,000 in the third quarter. The company also reported a 51 percent increase in adjusted EBITDA from $27,994,000 to $42,295,000 – representing a 305 percent year-over-year increase.

Joseph Lusardi, CEO said the company’s third-quarter results were “complemented” by its successful acquisition of Grassroots, which expanded its reach into six new states.

“As we head into 2021, Curaleaf remains incredibly well-positioned following the transformative legalization of adult-use cannabis in Arizona and New Jersey, and consequently the potential of future adult-use in New York, Pennsylvania and Connecticut. Each of these markets present an enormous opportunity for us, as the only MSO with a leading presence in every one of these states. Looking forward, we expect our growth will be driven by organic initiatives, increased capacity and dispensaries in key states and the roll out of adult use in Arizona and New Jersey.” – Lusardi in a statement

Lusardi’s run as company chief will end at the start of next year as the company also announced President Joseph Bayern would take over as CEO; Luardi will take on a new role as executive vice-chairman of the board starting January 1.

“With roughly two-thirds of the U.S. population now having legal access to medical or recreational cannabis, Curaleaf remains in the very early innings of its true long-term growth potential,” Bayern said in a press release announcing the c-suite change.

During the third quarter, Curaleaf’s recently acquired Select brand launched in three new states, the company opened two new dispensaries in Florida, and it completed its acquisition of Massachusetts-based Alternative Therapies Group.

The firm’s retail revenue increased by 206.5 percent to $135.3 million during the third quarter of 2020, compared to $44.2 million in the third quarter of 2019. The company’s wholesale revenue increased nearly seven-fold to $45.0 million during the quarter, compared to $6.5 million in the third quarter of 2019.

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Maker of Nerds Candy Sues Cannabis Brand

11/17/2020

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Ferrera Candy Co., the candymaker behind the popular Nerds candy products, has filed suit against California-based Tops Cannabis, Law360.com reports.

The suit, filed on Thursday in Los Angeles federal court, alleges that Tops Cannabis, a cannabis delivery company, has been selling a product called the “Medicated Nerds Rope.”

According to the report, Ferrera — a Chicago-based company — also alleges that due to “confusion between Ferrara’s Nerds Rope candy and the unauthorized THC-infused Medicated Nerds Rope, children have become sick from ingesting the unauthorized THC-infused Medicated Nerds Rope.” However, the lawsuit contains no evidence of such claims.

At 500 milligrams of THC per package, the suit also claims the candies in question are in violation of California state law for exceeding the state’s maximum edibles potency of 100 milligrams of THC per package.

Ferrera says the candymaker attempted to resolve the issue outside of court by advising Tops Cannabis about the risk of product confusion, but no action was taken. The suit is requesting an injunction to prohibit any further sales of the Medicated Nerds Rope product and for the profits from the product’s sales to be awarded to the candy company.

As the cannabis industry grows, cannabis trademark disputes — such as the feud over using the “Woodstock” brand name to market cannabis products or the challenge brought against Leafs By Snoop by the Toronto Maple Leafs — are becoming more and more common.

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PurePressure: Turning Cannabis Into Premium Rosin, Made Easy

11/17/2020

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PurePressure believes that everyone should have access to solventless concentrates and solventless infused products. That belief has been a driving force as the company expanded its focus from rosin to other methods of solventless extraction. When pressing rosin was an emerging niche market, Josh Rutherford was unimpressed with the available rosin presses. He commissioned now co-founder Ben Britton to engineer a better piece of equipment and the press that was built made great improvements to the market.

After having engineered that first rosin press, others reached out to purchase one of their own so the team built a few more machines for fun. However, the demand for solventless extracts grew and orders kept coming in. Now, four years later, PurePressure has grown from their initial three employees to 18 full-time employees. After their scaled growth, PurePressure hopes to bring on as many as eight more sales, engineering, and marketing employees in the next year.

honey banana hash rosin sitting on tip of scraping tool
Close-up of a ball of rosin budder resting on the tip of a scraping tool. Photo credit: Erik Nugshots

“PurePressure brings innovation to what was a niche in the cannabis industry, but which is now becoming one of the most important processing methods that every serious lab needs to do,” said Eric Vlosky, PurePressure’s Director of Marketing & Business Development.

One of the reasons that the brand has continued to grow is their dedication to customers, both the home growers and commercial producers. Their first customers were small-scale clients making flower rosin at home and they continue to focus on serving this demographic. These clients, who rely heavily on precision, often help the team dial in specifics with their engineering. Over the development of their rosin press line, PurePressure realized that most of the best rosin was being pressed from hash — that’s why they’ve expanded their original line to include lab-safe hash-making equipment.

Workers mixing hash
PurePressure’s latest offerings include equipment specially designed for making ice water hash (also known as bubble hash), such as this 65-gallon Bruteless hash washing vessel. Photo credit: Erik Nugshots

While the small scale customer is essential, these solventless extract machines and equipment are also ideal for commercial producers looking to maximize their solventless concentrate outputs. The PurePressure goal is to turn their in-house engineering results into scalable methods, enabling businesses to create much more hash and rosin. One missing element in the hash industry that the team identified was properly engineered, lab-quality, food-safe mixing vessels — most hash-makers were still using trash cans as mixing vessels, which is not their intended use. The team’s newer hash products are being built to ensure lab safety and regulatory compliance.

All of these products are built to the PurePressure engineering standards to best serve their customers, because customer service is a crucial arm of the brand. The entire company is oriented to their customer’s needs, and this dedication has led to their biggest innovations. Their small customer service team is known for providing expert-level knowledge and getting their customers back up and running quickly. Virtually all of PurePressure’s processing equipment is modular in nature, so repairs can be done in the field, saving critical time for processors so that they can stay on schedule.

cannabis rosin drips from a press
Lines of cannabis rosin drip down after being processed by a PurePressure rosin press. Photo credit: Erik Nugshots

“Response times are everything but the other part of the equation is just actually being true experts in everything that we do,” Vlosky said. “So when people call us for help or sales they’re pleasantly surprised that the person they’re talking to on the other end really knows what they’re doing and what they’re talking about.”

To provide the same expert-level help to the hash line that they do for their rosin products, PurePressure works with prolific hash influencers in the industry. These partnerships are of mutual value — these hash aficionados dedicate themselves to the craft’s methods and trends which pushes PurePressure to continue innovating their offerings. The company is eager to send their latest engineered products to such influencers for the excellent feedback and product reviews.

Hash-based rosin sauce pressed using a PurePressure device
Close-up of a hash-based rosin sauce pressed with a PurePressure rosin press, made by Essential Extracts. Photo credit: Erik Nugshots

“We’re very sensitive to listening to our customers, hearing their needs, and really addressing solutions to the problems they’re talking about,” Vlosky said. “But also we really try to figure out what their problems are going to be before they are even there.”

Their next innovation is an automated hash-washing solution that is backwards compatible and works with their Bruteless™ ice water hash vessels. The labor intensive process of creating ice water hash makes it hard to scale up to retail markets, just like live rosin, but PurePressure plans to navigate this conundrum for the industry by focusing on throughput to help processors meet demand and improve price points.

And, in the meantime, the growing PurePressure team will continue bringing their engineering standards to the solventless industry and working to anticipate their clients’ growing needs.

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California Regulators Allocate $30M for Cannabis Research Grants

11/17/2020

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The California Bureau of Cannabis Control (BCC) has awarded $29,950,494 in public research grant funding for 36 cannabis-related studies across nine universities, the agency announced on Monday.

The BCC said it received more than 100 applications for the program to research cannabis issues related to public health, economics, environmental impacts, and criminal justice and public safety.

Lori Ajax, chief of the BCC, said the studies will “provide critical information” for evaluating the state’s legal cannabis program.

“This research will be a valuable tool to inform future cannabis policy in California,” she said in a press release.

The University of California at Berkeley was awarded grants for nine research proposals, ranging from local regulations to unregulated cultivation to light and noise pollution. UCLA is receiving funding for seven studies, including consumer demographics, cannabis use disparities among sexual and gender minority youth, and marketing.

UC San Francisco researchers will receive grant money for five proposals – one study on the effects of cannabis on brain, immune, and sensory systems was awarded the $2 million maximum allowed under the program.

The UC Davis had five research proposals approved, ranging from cannabis use in early psychosis, economic and market impacts, and worker knowledge of occupational health and industry hazards. UC San Diego was awarded funding for four studies, including risks and benefits for cannabis use among older adults and packaging and labeling on edibles.

California State University of Humboldt researchers were awarded two grants for studies focused on jobs and the economic impact of the industry on rural Northern California, while CSU Dominguez received funds to study the industry in South Bay, Los Angeles.

UC Santa Barbara was approved for one study focused on surface water emissions from cannabis cultivation sites.

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Virginia Gov. Intends to “Move Forward” with Legalization

11/17/2020

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Virginia Gov. Ralph Northam (D) said on Monday that he plans to introduce cannabis legalization legislation when the session begins in January, the Virginia Mercury reports. The governor, who is also a physician, estimates it would take 18 months to two years to establish regulated sales in the state.

“We are going to move forward with legalizing marijuana in Virginia. I support that and am committed to doing it the right way. … Marijuana laws have been based originally in discrimination and undoing these harms means things like social equity licenses, access to capital, community reinvestment and sealing or expunging people’s prior records.” – Northam via the Mercury

In an interview with the Mercury last week, Democratic Majority Leader Dick Saslaw gave legalization in Virginia “slightly better than 50-50 odds” in the Senate, while House of Delegates members expected it would be approved in the chamber.

The governor’s comments come on the day the Joint Legislative Audit & Review Commission released their report on legalization, which suggests cannabis-derived tax revenues could reach $300 million per year by the fifth year of operations. The report estimates that the industry could create 11,000 jobs but noted that most would be lower-paying positions in retail, cultivation, packaging, and security.

The commission also said cannabis arrests would drop 84 percent post-legalization and that 120,000 Virginians – more than half of whom are Black – could benefit if legalization included expungement provisions for crimes legal under the reforms.

The report favored smaller, Virginia-owned, businesses rather than vertically-integrated, multi-state operators but nothing in the report is mandatory for the legalization law.

If approved, Virginia would be the first state in the South to legalize cannabis for adult-use.

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San Francisco Delays Cannabis Tax Implementation

11/17/2020

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Officials in San Francisco, California last week delayed the implementation of the city’s cannabis taxes until the end of 2021, Law360 reports. The Board of Supervisors also cut industry operators’ tax burdens by raising the threshold for when they will start collecting taxes from the first $500,000 of a business’ gross receipts to $1 million.

The measure sets gross receipt taxes from sales up to and including $1 million at 2.5 percent, with anything above that mark taxed at 5 percent. The bill also imposes a 1 percent tax on any other cannabis revenue up to $1 million, or 1.5 percent for anything above $1 million, the report says. California imposes a 15 percent tax rate on sales.

City officials said the new ordinance would reduce the city’s 2021 revenue by about $7 million.

Supervisor Rafael Mandelman said that the tax break was needed because operators had been slow to get the permits they needed to open and that more cannabusinesses would be open by the time the tax was supposed to take effect at the start of 2021. The measure was approved unanimously.

“Now is no time to be imposing a new tax on small businesses. By deferring the Cannabis Business Tax by one year, we can help stabilize these businesses and provide time for the state to adjust its tax structure and for the Biden Administration (we hope) to update federal policies.” – Mandelman in a statement to the San Francisco Examiner prior to the vote

John Delaplane, president of the San Francisco Cannabis Retailers Alliance and a partner in two dispensaries, estimated that a business would “have to do at least $7 million in revenue” in order to break even on the tax.

San Francisco voters first approved the tax in 2018.

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Why Getting Your Medical Marijuana Card Has Never Been So Easy

11/16/2020

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Medical marijuana. All you have to do is open your phone, log on to your laptop, or tap the screen of your tablet and there it is — news stories about medical marijuana, scientific studies about medical marijuana, social media posts about medical marijuana, and, of course, endless come-ons trying to sell you medical marijuana.

All that’s great in theory, but that nonstop bombardment can be overwhelming. Plus, it all just clouds one core issue — How do you get a medical marijuana card?

Once you ask that question, others will follow. For example: Can I get a medical marijuana card online? Can I get a medical marijuana card on my phone? Can I get a medical marijuana card fast? Can I get a medical marijuana card right where I am now? Can I get a medical marijuana card easily and with no extra hassles?

There’s a one-word answer to all those questions: Yes. And there’s one more word that makes it all possible: Leafwell.

Read on as we answer some more questions that will all result in you getting a medical marijuana card online easily, legally, and immediately.

https://www.youtube.com/watch?v=YEaLJ6_hyVI&feature=youtu.be

What Do I Need to Know About Medical Marijuana?

Whereas marijuana was once strictly thought of as “wacky tobaccy” for stoners looking to get high, the plant’s true nature as a miraculous source of human healing is finally being recognized on a global scale. States are relaxing regulations and doctors are increasingly prescribing medical cannabis to patients with spectacular success. Leafwell is here to act as your one-stop resource for accessing medical marijuana ASAP.

How Do I Know If Medical Marijuana Is for Me?

Consider this scenario. You’re a professional person and work pressures mount constantly. Every text message or email ding is a potential fire for you to put out. Relationships have only grown more difficult in our high-tech age. Beyond the personal, the nonstop bombardment of bad news from countless media outlets regularly gets you down. This is modern life.

All that stress begins to take a toll — first mentally and then physically. You turn to exercise, yoga, meditation, and other tools to improve health and well-being. These approaches help, but you still suffer and an array of ailments crops up — anxiety, depression, sleeplessness, physical aches, and so on.

Medical marijuana has been proven to effectively treat all those conditions and many, many more.

In fact, medical marijuana the missing piece on that path to wellness for you. It will help get you back up to where life is good again, and where you can be your best self. All you need is a medical marijuana card. Leafwell is here now to put that card in your hand in just 15 minutes.

Wait — How Do I Get a Medical Marijuana Card in 15 Minutes?

Only through Leafwell. If you are in a state with a medical cannabis program that permits virtual consultation with a physician, it’s exactly as easy as following these three steps:

1. Log on to Leafwell and start the application progress. It’s simple.

2. Talk to one of Leafwell’s licensed MDs online.

3. Get your certificate delivered right to your phone, laptop, or tablet, then finish up by completing any other steps required by your state.

From there, you will have a medical marijuana card and you’re ready to go.

Do I Need to Ask My Doctor About Medical Marijuana?

No. But since medical marijuana is prescription medicine, after all, you do need to consult with a doctor. It just doesn’t have to be your personal physician. That’s what Leafwell’s team of licensed medical practitioners is there for — to confer with you and determine if medical marijuana is the right choice.

All of Leafwell’s physicians are certified, authoritative professionals and you can relax with them. The pressure you might feel with your own doc is simply not there. Leafwell provides a safe space online where you can talk and ask about anything. On top of that, Leafwell is 100-percent HIPAA compliant, so your info is guaranteed to be kept confidential and secure.

How Do I Know If Medical Marijuana Is Legal?

Medical marijuana is legal in many states, but the list of qualifying conditions can vary. Leafwell can answer all such questions on its website or, better still, by having you contact one of our legal geeks that keeps completely on top of every changing cannabis law in every one of the 50 states. Contact one of our experts and they’ll walk you through the process, sweet and easy, with no judgments whatsoever.

Why Should I Believe You About Getting a Medical Marijuana Card Online?

You should believe me because I was once in the same spot you are now. I was anxious to learn more about medical marijuana as a health benefit. And I was also absolutely clueless as to how to get my medical marijuana card. Now, after getting my medical marijuana card through Leafwell, my life is immeasurably better.

It happened after I casually saw a social media post where a friend-of-a-friend was raving about Leafwell. She said Leafwell hooked her up with a medical marijuana card in just 15 minutes, and she was able to do the whole process using her phone.

I decided to take the gamble, so I looked up Leafwell online, clicked the few necessary links. Amazingly, I had a medical marijuana card before the sitcom rerun I had on the TV was over. It really was as simple and direct as ordering dinner or calling for a ride-share.

So Why Has Getting Your Medical Marijuana Card Never Been So Easy?

Getting your medical marijuana card has never been so easy because that’s all Leafwell does — it gets you your medical marijuana card.

Leafwell got me my medical marijuana card fast and easy and, I promise, Leafwell will get you your medical marijuana card fast and easy. Don’t hesitate. Go to Leafwell right now and make it happen. Your best life awaits.

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San Francisco Considers Apartment Smoking/Vaping Ban

11/16/2020

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The San Francisco, California Board of Supervisors is considering a bill that would outlaw people from smoking or vaping cannabis or tobacco in apartment buildings of three or more units, the San Francisco Examiner reports. The proposal does exempt registered medical cannabis patients from the ban.

The legislation was introduced by outgoing Board of Supervisors President Norman Yee, who said the measure deals with “the right of … residents to breathe clean air.” However, Supervisor Rafael Mandelman said there should be a blanket exemption for cannabis smoke because, since legalization, not all who use cannabis for medical purposes need to get a patient card.

“For folks who do not have a medical cannabis card, there are very few places outside their own home where you can consume cannabis. It is not parallel to cigarettes in that way. Cigarettes, there are still places where smokers can go and smoke. That is not so much the case for cannabis smokers.” – Mandelman via the Examiner

According to the report, about half of San Francisco residents live in multi-unit apartment buildings and smoking is currently banned in common areas of apartment complexes. Violation of the order would not be grounds for eviction. The order would be enforced by the Department of Public Health which would first issue warnings and provide education and resources for quitting smoking but could impose fines of $1,000 per day to repeat offenders.

At least 63 California cities and counties have adopted similar legislation over the past decade.

The board’s Public Safety and Neighborhood Services Committee voted last week to send the legislation to the full board for a vote, but it did not include a recommendation for approval.

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USDA Awards $200k Grant for Industrial Hemp Exports

11/16/2020

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The National Industrial Hemp Council (NIHC) has received a $200,000 U.S. Department of Agriculture (USDA) Market Access Program grant to help develop industrial hemp exports. The trade association said the export programs will focus on Europe and China markets, including market research, and trade policy and facilitation.

Kevin Latner, NIHC’s senior vice president for trade and marketing who will be responsible for implementing the program, said the group is “grateful for USDA confidence and the recognition of NIHC as the industry leader in industrial hemp trade and marketing.”

“Today’s announcement makes NIHC a trusted partner to USDA for hemp fiber, feed, food and CBD companies looking to break down trade barriers in markets overseas.” – Latner in a press release

The NIHC said the funding will also show foreign governments that the organization “is supported by the U.S. government and represents U.S. industry interests.”

According to the trade group, the global industrial hemp and products market was estimated at $11.1 billion in retail sales in 2019, representing an annual growth rate of 52 percent. By next year, the NIHC estimates that global trade of hemp will reach $8.1 billion across all markets, representing a three-year compound annual growth rate of 83 percent. The organization forecasts the global market will be valued at $89 billion by 2025.

The funds will be administered to the NIHC through the Food Export Association of the Midwest USA.

In September, Delaware State University received a $591,628 federal grant from the National Science Foundation for its Course-based Undergraduate Research Experiences (CUREs) Hemp Initiative Project. Last year, the USDA awarded a $500,000 grant to Virginia Tech and University of Tennessee, Knoxville researchers studying the transport of pollen from genetically modified hemp and switchgrass.

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Former NBA Player Larry Hughes to Launch Cannabis Brand

11/16/2020

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Former National Basketball Association player Larry Hughes is partnering with his former teammate-turned-cannabis executive Al Harrington to open two dispensaries and a cultivation and processing center in St. Louis, Missouri next year. The venture is called Viola Missouri (VMO).

Hughes, who was born in St. Louis and attended Christian Brothers College High School and St. Louis University, said that since his retirement in 2012 he has focused his “energy and resources on being a positive influence in this community.”

“I have championed efforts to break the stigma around mental health and spent a great deal of time helping to develop this city’s young leaders. VMO will serve the medical needs of our community, particularly those suffering with physically and mentally debilitating conditions, including [post-traumatic stress disorder]. I see this next journey as a continuation of the work that we have already done and believe VMO will soon be a model business in our community.” – Hughes in a statement

The Harrington-headed Viola is the largest Black-led and owned multi-state cannabis operator in the U.S. and VMO was awarded four Missouri cannabis industry licenses earlier this year, becoming the only Black-owned and operated cannabis firm in the state. The company said the operations would generate about 75 new jobs.

“VMO is an exciting new opportunity that will allow us to serve a community that just recently was granted access to medical cannabis and one of which is still actively working to combat the stigma associated with cannabis use,” Harrington said in a press release.

The flagship VMO dispensary will be located across the street from the forthcoming Major League Soccer stadium. The dispensaries are slated to open in April.

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Ciclo Announces Free Cultivation Software for California Licensed Cannabis Operators

11/16/2020

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(Oakland, CA) — Ciclo, a vertically integrated cannabis software technology company, has announced the offering of its free cultivation software for all California licensed cannabis operators beginning November 16th. This free technology enables operators to experience an advanced cultivation tool that helps them save time and money by streamlining their operations.

Operators will have full access to Ciclo’s seed-to-sale and track-and-trace platform with full integration of Metrc, California’s state compliance system. Additionally, operators will receive onboarding, training, technical support, and the Enterprise Resource Planning (ERP) platform to manage cultivation operations.

This free technology will impact operators with limited resources to save money while maintaining state compliance. “Enabling success for all licensed operators in the cannabis industry is a core value of ours,” says Oscar Aguilera, VP of Growth. “We are thrilled to offer our cultivation technology at no cost to contribute to industry success.”

Ciclo’s software aims to be more business-centric and user friendly than its competitors with features that include product management, reporting, hardware integration, along with a vertically integrated offering of products.

Ciclo is an Oakland-born company innovating cannabis technology through software by offering affordable vertical integration to streamline processes and automate manual tasks. The ERP platform serves cannabis cultivators, manufacturers, retailers, distributors, microbusinesses, and delivery operators. Schedule a demo or sign up for free cultivation at https://ciclo.tech/free-cultivation or email oscar@ciclo.tech.

FOR INFORMATION, CONTACT:

Amanda Torres, Marketing Manager
(415) 304-6926
amanda@ciclo.tech

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Illinois Tops $100M In October Cannabis Sales

11/13/2020

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Illinois is riding high on a record-setting year of cannabis sales despite a worldwide pandemic and ongoing licensing issues. Already having set sales records throughout the spring and summer, officials now report passing $100 million in total October cannabis sales from the state’s combined adult-use and medical cannabis markets.

Having just launched in January, adult-use dispensaries reported a whopping $75 million in sales for the month, while the state’s established medical cannabis system reported receipts totaling $33 million, the Washington Times reports.

Over $500 million of cannabis has been sold in Illinois this year with $200 million from the state’s adult-use market.

Illinois has licensed 70 adult-use locations but has the potential to raise that number to 500, according to the Chicago Tribune. On November 3, 2020, six more cities/suburbs around the state decided to allow adult-use cannabis while just one rejected expanding sales.

Despite the record sales, there have been some issues around licensing this year in Illinois. The latest issue arose when Gov. J.B. Pritzker announced applicants who did not qualify for the state’s most recent license lottery could have a second chance to apply after some applicants said they were not given a chance to correct their applications like other applicants.

Three successful applicants sued, further delaying the issuing of licenses, Marijuana Business Daily reports.

Illinois has opted for an approach similar to Colorado’s in allowing existing medical cannabis businesses to get the first pick of available licenses.

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Cannabis Officials from 19 States Create Regulators Association

11/13/2020

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Cannabis regulators from 19 states have formed the Cannabis Regulators Association (CANNRA) – an effort to link regulators across states to collaborate on industry policies and best practices. The nonpartisan group will share regulation resources and expertise on medical and adult-use cannabis and hemp.

The group’s founding members include regulators from Colorado, Delaware, Hawaii, Illinois, Iowa, Louisiana, Maine, Maryland, Massachusetts, Michigan, Minnesota, Nevada, New Jersey, New York, North Dakota, Oregon, Rhode Island, Utah, and Washington state.

Norman Birenbaum, director of Cannabis Programs for New York State, will serve as the inaugural president of the association. Birenbaum previously served as the top cannabis industry regulator in Rhode Island before taking the New York job last year.

“The association will strive to create and promote harmony and standardization across jurisdictions which choose to legalize and regulate cannabis. [It] will also work to ensure federal officials benefit from the vast experiences of states across the nation to ensure any changes to federal law adequately address states’ needs and priorities.” – Birenbaum in a statement

The organization’s executive officers will include Andrew Brisbo, executive director of Michigan’s Marijuana Regulatory Agency; Jim Burack, director of Colorado’s Marijuana Enforcement Division; and Rick Garza, director of the Washington State Liquor and Cannabis Board, as vice presidents. Tyler Klimas, executive director of Nevada’s Cannabis Compliance Board will serve as secretary-treasurer.

In a statement, CANNRA said the group aims to “facilitate communication and information sharing between subject matter experts in regulatory approaches for industrial hemp, medical cannabis, and adult-use cannabis.”

“This will include exchanges with research organizations, public health officials, policymakers, legal authorities, advocacy groups, and cannabis industry participants,” the group said.

The group emphasized that it is not an advocacy group and would not take a formal position for or against legalization.

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Israel Eyeing Cannabis Legalization by End of 2021

11/13/2020

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A legal memo on cannabis legalization from an Israeli inter-ministerial committee is set to be drafted into a bill that could come to the Knesset floor for a vote before the year’s end. The measure is expected to be approved by lawmakers in about nine months, the Jerusalem Post reports.

According to the memo, legalization would likely occur in the fourth quarter of 2021.

The memo – which has been under consideration by the committee for four months – will be re-written into legislation under the supervision of Blue and White MK Michal Cotler-Wunsh, chairwoman of the Knesset’s Special Committee on Drug and Alcohol Use.

“I see great importance that these two bills [for decriminalization and legalization] be put forth as a single bill, which will be a responsible, holistic step for Israel without compromise. I am committed to leading, advancing and supervising the application of these recommendations for reform, while doing the preparations required in the memo on time.” – Cotler-Wunsh to the Post

The memo includes budgetary provisions for product and data tracking, law enforcement, mental health and addiction treatment, policies to prevent youth cannabis use, and the establishment of a social and community action fund paid for with cannabis-derived taxes, the report says.

While the memo sets the legal purchase and consumption age at 21, it does not set possession limits and does not permit home cultivation.

Likud MK Sharren Haskel, who wrote the decriminalization bill, said the recommendations “are righting an injustice” of the previous cannabis legalization committee.

“These recommendations confirm what I and many in the public have already known for years: that the current policy has failed and we must change and repair it,” she said.

The reforms are supported by Blue and White leader and alternate Prime Minister Benny Gantz, who included legalization in his campaign platform.

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Argentina Legalizes Medical Cannabis Cultivation for Patients

11/13/2020

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Argentinian President Alberto Fernández on Thursday issued a decree allowing home cannabis cultivation by patients, requiring insurance providers to cover medical cannabis costs, and permitting pharmacies to sell cannabis-derived oils and topicals, the New York Times reports.

Argentina legalized medical cannabis in 2017 but advocates say the law was so strict that it made medical cannabis inaccessible to patients. Under the new rules, individual cultivation licenses will be based on patients’ medical needs. Those who grow without a license will still face a penalty between four and 15 years in jail. The law does permit third parties to cultivate for patients who are unable to do so themselves.

Argentina’s health minister, Ginés González García said the reforms replace the nation’s illicit market “with quality control that is key in all medical products, particularly those that are given to children.”

Valeria Salech, the head of a pro-medical cannabis organization Mamá Cultiva, said advocates have been pushing for home cultivation since the passage of the 2017 law. She added that patients have been illegally growing cannabis despite the ban.

“We’re no longer going to be criminalized for seeking a better quality of life for ourselves and our loved ones.” – Salech to the Times

In July, Argentinian officials announced they would be moving toward medical cannabis reforms.

According to the report, lawmakers are not considering broad legalization.

In 2017, neighboring Uruguay legalized cannabis for adult-use, becoming the first nation to approve the reforms. That same year Colombia legalized the cultivation, processing, and distribution of medical cannabis.

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New Genetics Test Predicts If Cannabis Will Be THC or CBD-Rich

11/12/2020

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University of Minnesota researchers have validated a genetic test that can predict whether a cannabis plant will produce mostly CBD or THC – a tool that could help prevent farmers from cultivating hemp that violates federal and state laws.

The team studied three different cannabis varieties – from industrial hemp growers, samples from the National Institute on Drug Abuse, and wild cannabis (or ditch weed) – comparing genetic markers with the ratio of THC versus CBD. The team then verified that genetics were a good predictor of the ratio.

George Weiblen, who is a professor in the College of Biological Sciences and the science director & curator of plants at the Bell Museum whose laboratory led the study, said he hopes the technique “can assist in new seed certification for the hemp industry.”

“For hemp to take off in Minnesota and elsewhere, there must be ways to assure growers they won’t have to destroy their crops at the end of the season.” – Weiblen in a statement

In the paper, published in the American Journal of Botany, the researchers argue that basing the definition of hemp on THC alone doesn’t match the biology and, instead, propose THC and CBD ratios.

The researchers also noted that finding THC-rich ditch weed plants is very rare, a 1 in 100 chance.

“The presence of more than one of the three cannabinoid classes in feral, industrial, and clinical populations renders the dichotomy between ‘hemp’ and ‘marijuana’ meaningless from a botanical perspective,” the study states. “The dichotomy between ‘hemp’ and ‘marijuana’ perpetuates culturally biased and pejorative assumptions about C. sativa that have hindered scientific investigation for nearly a century.”

The researchers argue that “a decolonized definition recognizing THC‐type, CBD‐type, intermediate‐type, and CBG‐type plants would be more accurate botanically and perhaps more practical as the use and regulation of C. sativa continues to expand and diversify.”

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FBI and Navajo Police Raid Hemp Farm on Tribal Land

11/12/2020

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The Federal Bureau of Investigation joined the Navajo Nation Police and over a dozen other law enforcement agencies in a raid on the hemp operation owned by Dineh Benally, the Navajo Times reports. The raid, dubbed “Operation Navajo Gold,” came following reports of THC-rich cannabis production, interstate drug trafficking, and violations of labor and child labor laws.

“This operation is a testament to the unified partnership we have with our local, county, state, and federal law enforcement agencies. Although we cannot provide the community with additional information, we want the public to know that NPD and multiple law enforcement agencies have been working together to address this.” — Navajo Police Chief Phillip Francisco, in the report

Benally is the former president of the San Juan River Board and last month the Navajo Nation Council passed an amendment to outlaw hemp production primarily due to his suspected illegal activities.

Navajo Nation President Jonathan Nez said that Benally and his unnamed investors “sought to take advantage of what they believed to be a jurisdictional gap on the Navajo Nation that would allow them to operate outside the law.” In September, a Navajo Nation court granted a temporary restraining order and injunction against Benally and his companies from continuing their hemp operations. Following that order, tribal officials inspected the farm and “discovered that a significant portion of the crop being grown appeared to be marijuana,” the Navajo Department of Justice said in a press release. Additionally, the agency said a significant number of foreign workers were being employed at the farm.

The Navajo Justice Department said Benally started the hemp operation last year and it now has over 1,000 greenhouses, spanning more than 400 acres. The land is leased from Navajo farmers who formerly used it to cultivate corn. Last month, the Navajo Nation sued the 33 farmers who leased the land to Benally for his operations. According to the Navajo Times, the tribe contends that the farmers “possess or control Navajo lands that are being used to illegally grow, produce, manufacture, transport, or sell industrial hemp and/or marijuana” and the actions are “irreparably injuring and contaminating the Nation’s lands, waters, and other natural resources.”

The FBI confirmed to KOLD13 News that it had executed search warrants “in the area of Shiprock, (New Mexico).”

The investigation includes nine federal agencies, along with state, tribal, and local agencies from at least three states.

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Cannabis Industry Worker Permits Delayed in Nevada

11/12/2020

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Nevada cannabis regulators have extended the expiration dates for industry employment identification cards as they try and catch up with a backlog, the Reno Gazette Journal reports. Expiration dates for permanent cards have been extended for 90 days and temporary cards through January 31.

Despite the backlog and subsequent extension, some businesses are being fined by the Cannabis Compliance Board over expired worker permits. Last month, the agency levied a $90,000 fine on Nevada Medical Group after inspectors discovered that six employees were working under expired cards. The company could also lose its license over the expired IDs.

Officials say the backlog is due to the pandemic, a delay in federal background checks, and an influx of applications as workers try to get cards under the old system, which costs $75 for a license that lasts for a year. In July, the agency changed it to a two-year, $150 license.

The board has been sending temporary cards as PDFs, originally good for about 45 days until the recent extension. The agency is receiving about 60 ID applications per day.

Tyler Klimas, executive director of the board, explained that the agency is not fining people with expired cards if they have submitted an application since their card’s expiration and that the board would hold inspectors accountable if they are imposing unnecessary fines amid the backlog. He indicated about 2,900 industry workers are currently using temporary cards and there are about 10,000 to 12,000 active cards in the state.

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