Cannabinoids and The Immune System

5/25/2020

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Inflammation is the body’s response to some type of abnormality or infection. The reason your lymph-nodes become swollen when you are sick is because white blood cells are congregating in large numbers to prepare to “engulf” the foreign target. It is our body’s built-in way to fight off invaders. There are many players at work in these battles — proteins called cytokines, lymphocytes, and other cell types with scary names all working together to target and destroy pathogens.

The Endocannabinoid System and The Immune System

The endocannabinoid system comprises two types of receptors; CB1 receptors are mainly located in the brain while CB2 receptors are found primarily in the peripheral nervous system on immune cells. There is approximately 10-100 times more gene expression of CB2 in immune cells as compared to CB1. Endocannabinoids that activate these receptors are said to control various immune system functions like cell signaling cascades and homeostasis of the immune system, specifically in places like the lymph-nodes and the gut. Immune cells are even able to produce endogenous cannabinoids like 2-AG which acts as a regulator in this system. As for exogenous cannabinoids like THC and CBD, they generally seem to have immunosuppressive effects—they inhibit cell signaling that normally leads to pro-inflammatory or otherwise active immune responses.

Chronic diseases like Inflammatory Bowel Disease (IBD) and psoriasis arise when the immune system becomes dysregulated and our immune responses become heightened. This leads to inflammation and pain which, over time, can become frustrating and downright uncomfortable. For individuals who struggle with chronic inflammation, this inhibitory response caused by cannabinoids like THC and CBD may actually be helpful in alleviating some of this pain and discomfort.

Microphotography of the trichomes from the top or cola bud of a cannabis plant.

Cannabinoids and Inflammation: Various Pathways

CBD’s ability to decrease inflammation is perhaps its most popularly touted benefit. This statement has been backed by science; a 2016 study found that CBD applied transdermally to rats significantly reduced arthritis by diminishing certain cells related to the inflammatory immune response. But how exactly does CBD and other cannabinoids reduce inflammation in the body, and how do they interact with our immune systems?

Cytokines

One way that cannabinoids reduce inflammation in the body is through the suppression of cytokines. Cytokines are a class of small proteins that modulate immunity through cell signaling. When secreted, they trigger a cascade of signals, recruiting more cytokines to the source. This is an important part of how inflammation occurs.

Tumor-necrosis-factor alpha (TNF-α) is one type of cytokine. Overexpression of TNF-α has been implicated in Crohn’s Disease and IBD, as well as some cancers and even anxiety and depression (though the latter is controversial and still being studied). Interestingly, we also know CBD can help with pain and inflammation related to IBD. Specifically, CBD in some instances has been seen to directly decrease TNF-α in mice.

Interleukins are another main type of cytokine involved in the immune response and are often modulated by both endogenous and exogenous cannabinoids. A 2019 study found that CBD alone did not inhibit a certain type of interleukin (IL-8) but a whole plant extract of cannabis sativa did, suggesting that other cannabinoids are at work interacting with immune regulation. This finding provides more evidence for the entourage effect, the idea that the various cannabinoids in a whole plant extract or cannabis flower interact with each other to create different effects than what a single cannabinoid could do on its own.

The NF-κB Pathway 

NF-κB is a protein involved in immune regulation. It lays dormant (inhibited) in unstimulated cells and is activated by signals coming from outside the cell. It is responsible for cell proliferation, cell survival responses, and other immune responses. When activated, NF-κB causes an inflammatory response. Thus, inhibiting this pathway can decrease chronic inflammation that occurs from excessive cell signaling.

A 2019 study found that both cannabis sativa extract and CBD alone inhibited the NF-κB pathway, mainly through TNF-α (TNF-α can activate the NF-κB pathway). The cannabis extract also downregulated some genes associated with skin inflammation through this pathway which could be beneficial for conditions like psoriasis or rheumatoid arthritis. Many of these components within the immune system are interconnected and work together to cause overall changes in the body.

Cannabinoid-Induced Apoptosis

The last common way that cannabinoids decrease inflammation is by inducing cell death (this is called apoptosis). THC specifically has been known to cause apoptosis in a variety of cell types. This may sound scary, but apoptosis exists mainly to clear out damaged or harmful cells and to prevent clutter. Scientists found that THC causes cell death through the activation of CB2 receptors. By chemically blocking CB2 receptors, apoptosis was also blocked, confirming the role of the CB2 receptor in this process.

What does this mean? We know THC has been used to treat tumor suppression in cancer patients, which would make sense if it causes cell death. However, researchers have found that some cells, like breast cancer cells, are immune to cannabinoid-induced apoptosis. There is still a lot we are finding out about these molecules’ role in the immune system.

What Does This Mean for my Cannabis Use?

The short answer to this question is cannabinoids are immuno-suppressive. Because THC and CBD significantly reduce cytokine expression, there are potential negative effects of using cannabinoids to treat more serious conditions like HIV if a patient already has a weakened immune system (or in the case of cancer cells that do not respond to cannabinoid-induced apoptosis). The long answer is it’s complicated. Some say cannabinoids’ effect on immune function is transient, such that it allows conditions like acute or chronic inflammation to be treated without harming the overall ability of the immune system to do its job when needed. We also know how useful CBD can be for treating chronic inflammation, especially for skin conditions because it decreases inflammatory responses. 

As far as your recreational use goes, consuming cannabis most likely will not weaken your immune system on its own. However, for similar reasons why you wouldn’t go out for a night on the town if you were feeling under the weather, listen to your body and what you feel it needs during this time. Scientists worldwide are continuing to tackle these big questions so that one day we can all appreciate even more knowledge of how cannabis affects our bodies and minds.

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Former Employees Arrested for Murder of Tech/Cannabis CEO

5/22/2020

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Police are holding four suspects for the 2019 murder of tech and cannabis CEO Tushar Atre, according to a Silicon Valley Business Journal report.

The suspects include 22-year-old Kurtis Charters and 19-year-old Kaleb Charters, two brothers, as well as 23-year-old Joshua James Camps and 22-year-old Stephen Lindsay. While Camps, Lindsay, and Kurtis Charters are currently being held in the Santa Cruz County Jail with no bail, Kaleb Charters is awaiting extradition to California from Michigan.

Both Lindsay and Kaleb Charters are former employees for Interstitial Systems, Atre’s cannabis manufacturing company.

Police say that Atre was forcedly abducted from his Santa Cruz home on October 1, 2019 by three suspects and was moved to the rural location of his cannabis business in an SUV stolen from his house. Atre was found several hours later in the SUV, dead from a gunshot wound.

“We believe this was a robbery for monetary value,” Santa Cruz Sheriff Lt. Brian Cleveland Cleveland told KPIX 5. “We do believe this was a planned event.”

The Santa Cruz County Sheriff’s office said none of the four suspects have prior criminal records.

“We had a huge suspect pool that we had to narrow down. … We have the right people, we have compelling evidence. This man was sleeping in his home, people entered the home, kidnapped him, and murdered him.” — Santa Cruz County Sheriff Jim Hart, via KRON 4

Atre was best known for his role as founder and CEO of the successful corporate web design firm AtreNet. He was a relative newcomer to the cannabis space at the time of his murder.

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Aurora to Acquire U.S. Hemp Company with 2nd-Largest CBD Market Share

5/22/2020

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Aurora Cannabis is making its way into the U.S. market after agreeing to acquire Reliva in a $40 million all-stock deal. Reliva’s products are sold in more than 20,000 retail locations in the U.S. and the company holds the second-largest CBD market share in the country.

According to a press release, Reliva has generated positive adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) over the previous 12-month period. Aurora is required to generate positive adjusted EBITDA by the end of 2021’s first fiscal quarter as part of its debt pact signed in February, Motley Fool reports.

Aurora said Reliva “stood out among a lengthy list of potential partners” due to their positive EBITDA, “focus on regulatory, testing and compliance protocols,” their management team’s “extensive experience selling and marketing regulated consumer packaged goods” and strong relationships with “critical trade partners that provide a U.S. national distribution footprint.”

Michael Singer, executive chairman and interim CEO of Aurora, said the partnership will “create an international cannabinoid leader that we believe can deliver robust revenue and profitable growth.”

“We have taken the time necessary to carefully assess the Company’s entry into the U.S. market and we firmly believe that the combination with Reliva will create significant long-term value as Reliva provides us options to grow in hemp-derived CBD internationally. Similar to Aurora, Reliva has a strong entrepreneurial spirit and successful track record of transforming categories and creating growth brands.” – Singer in a statement

Miguel Martin, CEO of Reliva, called the enterprise “a significant opportunity to accelerate sales growth for Reliva in the United States and internationally.”

The deal, which marks Aurora’s first foray into the U.S. cannabis industry, is expected to close in June.

During the second fiscal quarter of 2020, Aurora reported net losses of about $980 million on net revenues of $47.7 million. The company’s international medical cannabis revenues fell from about $3.8 million over the fourth quarter of 2019 to about $1.5 million during the reported quarter.

Last summer, the firm announced the creation of Aurora Hemp after acquiring Hempco Food and Fiber Inc. in a stock deal worth $45.2 million.

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Report: Nevada Cannabis Sales Up 20% from 2018-2019

5/22/2020

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Nevada cannabis sales saw a 20 percent increase from fiscal year 2018 to 2019, reaching $692 million, according to an RCG Economics report commissioned by the Nevada Dispensary Association. The state collected $172 million from cannabis-derived excise and sales taxes, and industry licensing fees.

The report estimates that there are 8,200 jobs in Nevada working directly in licensed cannabusinesses and another 2,000 jobs created by the ancillary industry.

Riana Durrett, executive director of the NDA said that while the coronavirus pandemic “may result in lower than projected sales and collections” the figures are “helpful to know what the industry is capable of accomplishing and contributing to the state, given the right conditions.”

John Restrepo, the economist that prepared the report, opined that, in the cannabis space, “supply and demand is less of a factor than regulatory conditions.”

“The cannabis industry can be greatly impacted by the tax and licensing structure and the illegal market, and missteps in overtaxing or overregulation can drive people into the illegal market and reduce tax revenue, unlike many other industries.” – Restrepo in a statement

The report estimates that by 2024, Nevada sales could total $956 million leading to state tax and fee collections of $327 million under current regulatory conditions.

The authors note that the report was prepared – and its projections based on – pre-coronavirus conditions and the projections “would likely fall short, especially given a drop in tourism and loss of sales in March and April,” which are “typically big sales months for Nevada dispensaries.”

Both medical and adult-use dispensaries in Nevada were allowed to remain open during the state’s stay-at-home order albeit with social distancing protocols in place.

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New Mexico First Quarter Medical Cannabis Sales Up 43% From 2019

5/22/2020

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Medical cannabis sales in New Mexico topped $40.1 million for the first quarter of 2020, up 43 percent – or $12 million – over first quarter sales last year, according to an industry report by licensed producer Ultra Health which led all of the state’s cannabis firms with sales of $6.1 million during the first three months of the year.

New Mexico’s top 10 cannabis companies accounted for 71 percent of total patient sales throughout the quarter, the report says.

The state saw a 20 percent increase in medical cannabis program enrollees over the same span last year which could be due to the coronavirus pandemic, Ultra Health CEO and President Duke Rodriguez said.

“Robust activity during a period of high uncertainty is a testament to the essentialness of cannabis. Going forward, the new normal will create a far greater demand on the medical necessity, product availability and patient affordability of quality cannabis care.” – Rodriguez in a statement

The report notes that the state’s medical cannabis program currently has nearly 90,000 enrolled patients but the industry is operating with its lowest supply shortages since the end of 2019, early 2020. The state Health Department said there were 6.2 million grams in stock at the end of the fourth quarter 2019 but that stock declined 58 percent during 2020’s first quarter to 2.6 million grams.

Additionally, the report authors say that unsold medical cannabis stock figures reported by the Department of Health last month – 36,000 pounds – were inaccurate and that figure is actually about 5,714 pounds.

“Furthermore, there were only 28 grams of cannabis available per patient at the end of the first quarter of 2020, while there were 77 grams available per patient at the end of the fourth quarter of 2019,” the report says. “This represents a 64 percent decrease of accessible medicine per patient.”

New Mexico medical cannabis patients spent about $160 per member per month; by comparison, Colorado patients – of which are fewer than in New Mexico – spent $361 per patient per month.

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Jen Jackson: Inspiring Wellness and Empowering Others with CBD

5/21/2020

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Jen joined us for our latest Q&A to discuss her leap from the tech world into the role of CBD entrepreneur, the founding mission behind Be Jubie, how the company is forging ahead with its goals, and more.

Ganjapreneur: Where did the idea behind Be Jubie originate? How was your family involved in forging the initial idea?

Jen Jackson: I always dreamed about entering the cannabis industry and often joked about owning a dispensary one day. In December 2018, my mother was visiting for the holiday and she introduced me to CBD. She used a salve for her lower back pain and found relief. I immediately started to research CBD and the more I learned about the therapeutic benefits the more excited I became. The idea of owning a business to help my mother and so many others with a plant was inspiring.

My husband Jamaal and two sons (Ethan and Cameron) helped me come up with the brand name. “Jubie” comes from the word jubilant and it evolved into a made-up adjective. Jubie has many meanings: good vibes, happy, focused, informed, empowered, clarity, and wellness. We started saying “Jubie” around the house, I would ask my son “How was school?” and he would reply “Jubie”. We all really enjoyed saying it and now “Be Jubie” is here!

Why do you feel called to enter the CBD market?

My passion comes from my inherent love for the plant, the ability to improve the wellness of my community, and the fact that I didn’t see myself in any of the existing brands. All of those components compelled me to join into the CBD market. Black people suffer from anxiety, insomnia, chronic pain, arthritis, etc – just like everyone else. We deserve to know about and use a plant-based alternative to improve our quality of life. I want Be Jubie to be the catalyst and raise awareness.

Before founding Be Jubie you had a career in IT; how has this experience shaped the growth of your business and your journey as an entrepreneur?

There is a direct alignment with developing Be Jubie as a brand and what I learned in my IT career. I led a software development team for many years. We were small, nimble, and we worked hard to develop solutions for complex problems. I had a lot of competing priorities to manage and to be effective I maintained my focus on the problem to be solved in order to deliver meaningful value to our stakeholders.

I applied the same approach to Be Jubie. I focused on finding the highest quality hemp-derived CBD oil and launching with one product offering. I knew most of my customers would be new to CBD and after extensive research, I believe you should start your CBD journey with an oil tincture. The oil tincture provides multiple application methods (sublingual, digestion, or topical) and the ability to control your unique dosing. Since I am bootstrapping the company on my own I didn’t have the resources to launch with multiple product offerings at once, and I also don’t think it’s necessary. I learned that from my IT career. Figure out what you’re passionate about, the most important problem to solve, do that well, and grow.

The success of my IT career also relied heavily on building trusting relationships with business stakeholders. For any brand to be successful it’s critical to build a trusting relationship with your customers – that’s important to me.

Have you ever encountered “canna-bias” or judgement from peers, family, or colleagues due to misunderstandings of what CBD is? If so, how do you address it?

Weeks before I left my corporate company I found myself in meetings (in-person and remote) letting people know that I resigned. The first question is always – Where are you going? What is your new position? I loved the awkward silence that followed when I would reply “I’m starting a cannabis company” lol. After two seconds of initial shock, everyone was always gracious and encouraging. A few peers hit me up offline expressing interest and wanted to learn how they could get involved.

People that know me personally know that I have been a consumer for almost 20 years. They were really excited for me and felt it was a perfect fit. My mom introduced me to CBD, so overall I didn’t experience canna-bias, at least not to my face. To address canna-bias I think it’s always best to go the education route. I’m a firm believer that normalizing cannabis through education is key. I have also accepted that everyone is not going to agree with my decisions or become pro-cannabis. I’m ok with that and it doesn’t impact my mission or drive to continue in my pursuit.

It’s interesting that co-workers from your former job reached out in private to learn more about cannabis rather than bring it up in the office. What normalization steps do you think could be taken to help create a space where these people felt comfortable inquiring about cannabis in conversation?

The stigma of cannabis is still alive and strong, that’s why colleagues approached me offline, either in a private office or a direct message on LinkedIn. There are a lot of cannabis consumers in corporate America, but until cannabis is normalized it will always be an offline conversation or reserved only for colleagues you trust.

Normalizing cannabis is part of my mission for Be Jubie. I have a campaign right now called “Normalize Cannabis Through Me” where I’m putting a face to cannabis users who are mothers, fathers, entrepreneurs, creatives, business professionals – everyday people. They are brave enough to come forward owning the reason why they consume cannabis. My hope is that people will see themselves in the participants and realize that cannabis consumers are productive, intellectual people like themselves. When you can relate or find common ground with someone then you are more open to accepting something you may have had a preconceived notion about. Seeing yourself through the lens of others can help change the stigma.

What’s interesting is that I have not been able to convince THC consumers I know personally to participate in the campaign. So far, only Be Jubie customers are featured and I hope that changes. Consuming cannabis legally or illegally can still jeopardize your job, so I get it. Baby steps. I even had a Be Jubie customer who works for the government in a state where CBD is legal, not willing to participate because it’s frowned upon. Until companies stop testing for cannabis and more people view it as a therapeutic plant vs a drug, the stigma will always be there. I will use Be Jubie as a catalyst to do what I can to destigmatize through education and relatable campaigns. Anyone interested in participating in the “Normalize Cannabis Through Me” campaign please DM me on Instagram.

What makes Be Jubie different from other organic CBD brands?

Be Jubie products are 3rd party laboratory tested, effective, and tastes refreshing. I’m proud of our product and proud that our mission extends beyond selling CBD products. I am passionate about learning all I can when it comes to the cannabis plant. I’m on a mission to normalize the plant through education and do my part to break the stigma. We should no longer be judged for using a safe plant with proven therapeutic benefits that brings joy to so many. Most CBD brands tend to separate themselves from THC as if THC is a “bad” cannabinoid. Be Jubie debunks that narrative: we are a hemp-derived CBD company but we acknowledge and aim to educate on the benefits of all varieties of the plant.

It’s important to me that customers know they have an effective product they can trust that is tied to a brand with a purpose.

What is the ethos behind Be Jubie’s marketing efforts, and what is the message that you want to convey?

The vibe of Be Jubie is defined well in our slogan. I use the components of the slogan to keep me rooted and drive the marketing efforts:

Be well. Be informed. Be empowered. Be Jubie!

Be well. I care about improving the wellness of my community. Life is heavy and cannabis brings joy and relief to so many. I want to bring that awareness to my customers and make it known that we have an all-natural alternative to help improve the rollercoaster we call life.

Be informed. I believe that science-based cannabis education is necessary in order to tear down the lies, propaganda, and stigma tied to the plant. When I learn something new I pass it along to my customers so that they are equipped to pass it on and help change the stigma

Be empowered. I’m a 39-year-old woman, a wife, and mother of 2 children that left a stable, successful, and well paying IT career to chase a dream and start a new journey. I decided I will not live the second half of my life in fear and afraid to fail. I’m not advising folks to leave their job, there’s a lot involved in taking that step. I do want to encourage people to feel empowered to live their best life. Start whatever it is you have been pushing off. We only have one life, you got this!

Your mission statement mentions advocating for cannabis criminal justice reform. What are some examples of direct action that CBD consumers and brands can take to help create an industry centered around restorative justice for victims of the drug war?

Prisoners locked up for non-violent cannabis offenses need to be freed. Can you imagine being locked up for cannabis while the industry is emerging and now the government has deemed the cannabis industry essential? It’s great that the government is finally recognizing cannabis as medicine but it’s a complete slap in the face to all the people tied to the legacy market who are serving time (some are life sentences) for a therapeutic plant.

Decriminalization should be a prerequisite for restorative justice. The war on drugs has disenfranchised entire black and brown communities and reform needs to happen. As a brand or consumer, you can bring awareness whether it’s through social media, websites, blogs, or discussing with friends/family. You can find advocacy groups you align with and support them through donations, signing petitions, calling/writing local officials, voting, etc. I support the efforts of the Last Prisoner Project and if you are a brand or consumer who cares about cannabis criminal justice reform I encourage you to visit their site to learn more about how you can get involved.

In a panel, you discussed how most CBD companies are white-owned with products marketed to white women. What steps has Be Jubie taken to reach black people in both business execution and marketing efforts? How could the industry, on the whole, shift their models to cultivate a more diverse consumer community?

During my competitive analysis for Be Jubie, I realized that the face of most brands were white folks. There were a couple of brands that seemed to consider diversity but for the most part, I didn’t see myself in them. It felt like there was an entire market being ignored. It’s important to me that Be Jubie is an inclusive brand and that my community is reflected throughout our marketing, on our website, and on social media. To bring awareness to the brand I started off by building relationships with local businesses in my city that valued inclusivity. I would ask to be a vendor at parties, events, and markets where my community is thriving. Being intentional about who you work with and where you show up is a reflection of your brand.

For the cannabis industry to cultivate a diverse community, there needs to be more minority ownership. Brands are a reflection of their leadership. People will naturally brand to the community they are most familiar with. If most of the cannabis brands are owned by white men, then their marketing efforts will reflect that. The reason why diversity is lacking in the cannabis industry as a whole is clear – white business owners make up 81% of the industry. How we change that is more complex. Black and brown people need an equal playing field, especially for an industry that was created on the backs of our communities. I don’t desire to ask white business owners to cultivate a diverse marketing model, I desire more black and brown ownership.

Leaving a steady and successful career to start a fledgling business is brave and takes hard work, how did you solidify Be Jubie before taking on the company full time? What was that transition like?

Thank you for calling me brave. I haven’t decided if I’m brave or having a mid-life crisis lol. I enjoyed my IT career, I learned so much and am grateful for all opportunities it afforded me. The company I worked for started heading in a new direction. I was losing passion for the work and found myself at a crossroads. Do I stay and “ride the corporate wave” while I launch Be Jubie? Or start a new job while I launch Be Jubie? Neither option was fair to the company or to me. I felt that in order for me to truly give Be Jubie the attention it deserves to be successful I needed to focus on it full-time.

My husband and I talked about it for quite a while and we collectively decided that I will move forward with Be Jubie full-time. I had a few pennies saved up which allowed me to still contribute to the household. That was important to me because I didn’t want to introduce a financial burden on my husband. We agreed that if I can’t grow the business after a certain period of time then I’ll start looking for another 9-5.

To answer your question, I left my job before Be Jubie was solidified. I don’t recommend that path for everyone. However, I haven’t been this happy and challenged in a really long time. I have no regrets so far and if I fail, the personal growth will have been worth it all.

Thank you, Jen, for joining us for this interview! Learn more about Be Jubie and Jen Jackson at BeJubie.com.

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Study Suggests Women Have More Intense Cannabis Cravings Than Men

5/21/2020

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Researchers from the Center for Brain-Health at the University of Texas at Dallas found that women who regularly consume cannabis experience more intense cravings than their male counterparts. The study, “Sex-related differences in subjective, but not neural, cue-elicited craving response in heavy cannabis users” was published last month in the Drug and Alcohol Dependence journal.

The study was conducted on 54 women and 58 men who had used cannabis at least 5,000 times. They were given a “piece of cannabis equipment to hold” – likely a pipe or bong – and asked to rate their urge to use cannabis on a scale of 1 to 10. Women rated their cravings as 5.5 while men rated their cravings at 4.6.

Moreover, researchers found that when the female participants were categorized by their self-reported menstrual cycle phase, those in the phase – when estrogen levels increase – showed a significantly higher craving response compared to male users. However, previous studies have found no correlation between cannabis use and menstrual cycle phases, and the authors note that more research is required to clarify the reason behind this difference in cravings.

Changes in participants’ brain activity were also measured but no sex-related differences were recorded.

A study out of Italy in 2018 found that men are more likely to try cannabis and other drugs because their hormones stimulate risky behavior. A 2017 survey of U.S. adults by Statista found that 13 percent of American men used cannabis currently, compared to 7 percent of women.

The Texas researchers concluded that accounting for the differences in how men and women use and react to cannabis “will increase efficacy of treatments through personalized approaches.”

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Feds Withhold $3.3M From Maine For Allowing Medical Cannabis In Schools

5/21/2020

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The federal government is withholding $3.3 million from Maine for mental health programs for children because the state allows students to use medical cannabis, the Sun Journal reports. The state won the funds in 2018 as part of a five-year grant for Maine-AWARE – a program to bolster social service infrastructure to support student mental health services in three of the state’s districts.

Maine received the funding for the first two years, but it was cut off due to Trump Administration policies that remove some funding for states that allow students to access medical cannabis. It’s unclear whether the changes will impact other grants received by Maine or how the rules may affect other states with legal cannabis programs.

Pender Makin, the state commissioner of education, told the Sun Journal that officials have an obligation under the medical cannabis law to provide access to children if they “have written certification from their medical provider indicating their need for medical marijuana to receive such treatment while at school.”

A research letter published in JAMA Pediatrics last year suggested that Maine had the highest rate in the country of children diagnosed with depression, anxiety, or attention deficit disorder. More than 25 percent of Maine children 6 to 17-years-old had at least one of the disorders while about half of them received no professional treatment or counseling.

The Substance Abuse and Mental Health Services Administration, a division of the Health and Human Services agency, said the funds are meant for programs that focus on “partnerships and collaboration between state and local systems to promote the healthy development of school-aged youth and prevent youth violence.”

The Maine-AWARE initiative is meant to ensure all students have access to evidence-based social-emotional learning strategies, positive behavioral interventions, and mental health screenings.

In all, 33 states allow medical cannabis access. According to pro-cannabis organization Americans for Safe Access, California, Colorado, Illinois, Maine, New Jersey, New Mexico, Pennsylvania, and Washington allow students to use legally recommended cannabis on campus, along with Oklahoma City, but not the entire state of Oklahoma.

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Study: Prenatal Cannabis Exposure Alone Not Associated With Cognitive Impairments

5/21/2020

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A study published this month in medical journal Frontiers in Psychology suggests that there is no current evidence to suggest “that prenatal cannabis exposure alone is associated with clinically significant cognitive functioning impairments.”

The researchers analyzed 40 studies spanning 30 years examining prenatal cannabis exposure in humans until December 2017 – paring down the list from an initial 1,604, the majority of which “did not meet inclusion criteria and were excluded.”

“In general, prenatal cannabis exposure was associated with few effects, negative or positive. Of the 1,004 cognitive outcomes assessed, children with prenatal cannabis exposure performed more poorly on 34 (3.4 percent) and better on 9 (0.9 percent) when compared to a control group.” – “Totality of the Evidence Suggests Prenatal Cannabis Exposure Does Not Lead to Cognitive Impairments: A Systematic and Critical Review,” May 8, 2020

The researchers – from New York and Australia – noted that one 2008 study did conclude that “prenatal cannabis exposure ‘has a significant effect on school-age intellectual development’ and ‘could impair a child’s academic functioning,’ but the authors of the analysis warned that the 2008 study’s conclusion “should probably be tempered” due to “differences in maternal cognitive ability, poverty, and home environment.” The authors point out that “poverty adversely affects children’s cognitive development” and that the study did not weigh preschool and daycare attendance by children because that information was not available to all participants of the study.”

“This makes it difficult to determine the extent to which the current findings overlap with those of an earlier investigation by this group of researchers, which found that preschool and day-care attendance mediated the relationship between prenatal cannabis exposure and cognitive functioning,” the authors of the Frontiers-published study said.

The authors also note that most studies did not confirm cannabis use during pregnancy “either quantitatively or with drug testing,” instead relying on the self-reporting of mothers. Most of the previous studies also lacked data on when during the pregnancy the mother stopped using cannabis, which the authors indicated “could be important for understanding any potential impacts on a developing fetus.”

Women, the authors note, are jailed for drug-law violations at a higher rate than men in federal and state prisons and county jails. Incarcerated pregnant people are often denied prenatal care, and children are often separated from them shortly after birth, they said.

In states that have decriminalized or legalized cannabis, parental use is punished, especially in Black and Latinx communities, the authors wrote.

“Parents have been harassed and threatened into mandatory drug treatment programs by the New York City child welfare agency, for example,” the authors point out in the study. “Police in Kansas have taken away children from medical marijuana patients. And drug-related child welfare cases have in fact increased in Colorado since it legalized marijuana in 2012.”

The authors conclude their study suggests that the assumption that “prenatal cannabis exposure causes persistent deleterious effects, especially on cognitive functioning” should be reevaluated “to ensure that our assumptions do not do more harm than the drug itself.”

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Catharine Dockery: How Cannabis Complements Traditional ‘Vice’ Industries

5/20/2020

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Catharine recently joined host TG Branfalt for our latest podcast episode to discuss the investment strategy behind Vice Ventures, how she transitioned into specifically working with businesses that other investors frequently avoid, her advice for finding and building a successful brand, and more.

Tune in to the interview via the media player below or scroll further down to read a full transcript of this week’s podcast episode.

Listen to the podcast:

Read the transcript:

Commercial: This episode of the Ganjapreneur podcast is made possible by Evergreen Gateway, a provider of cannabis-friendly financial services. As many cannabis entrepreneurs have experienced firsthand, it can be very difficult to get approval for essential financial services once your bank finds out what industry you’re in. Evergreen Gateway makes it easy for cannabis entrepreneurs to access the financial resources that you need to operate your business. From merchant accounts to cash advances, virtual checking and depository banking, Evergreen Gateway has established solutions that cater to the specific needs of the cannabis industry. Get in touch today EvergreenGateway.com.

TG Branfalt: Hey there, I’m your host TG Branfalt. Thank you for listening to the Ganjapreneur.com Podcast, where we try to bring you actionable information and normalize cannabis through the stories of entrepreneurs, activists, and industry stakeholders. Today I’m joined by Catharine Dockery. She’s a founding partner of Vice Ventures, a venture-capital fund that has raised about 25 million in its first round and invests exclusively in nontraditional, quote, bad-for-you verticals, such as cannabis, alcohol, sex tech, CBD, and more. How are you doing this afternoon, Catharine?

Catharine Dockery: I’m doing well. Thank you. How are you?

TG Branfalt: I’m great. You’re the first person that I’ve ever interviewed or even really known about that is focused on the sort of bad-for-you industries. So I think we have a lot of ground to cover up, but before we do tell me about yourself. Tell me about your background and how did you end up launching a VC firm focused on vice?

Catharine Dockery: That’s a fantastic question. I grew up in the New York City with my dad, went to NYU, studied a combination of neuroscience and finance. Then my first job out of college was trading high-yield debt. I absolutely hated that job. So I quit after my second bonus, spent nine months contracting for different hedge funds, trying to figure out exactly what I wanted to do. Met up with a PR agency, ran their research team two days a week for two and a half weeks.

Then that’s when I met Andy Dunn, who’s the founder of Bonobos. I was presenting research. We got along really, really well. We decided to get dinner afterwards. We decided I should work for him, which is an incredible opportunity, and manage his venture portfolio and just finances in general.

So when Walmart acquired Bonobos, I followed Andy to Walmart. Kind of realized very quickly that Walmart M&A was not for me, despite some people absolutely loving the job. So I interviewed to leave. I had personally invested in the canned-wine business. So when I was interviewing at this consumer venture firms, I kept pitching the company. All these fund managers were like, “We love the founder. We love the brand. We love what she’s doing, but we can’t invest in alcohol. So it’s a pass for us.”

I just couldn’t believe that they couldn’t invest alcohol. I just kind of kept asking, “Why, why, why?” Finally, someone was very honest with me and they’re like, “We have a vice clause.” And I was like, “Well what’s a vice clause? And they’re like, “It just prohibits us from investing in cannabis, alcohol, and nicotine, sex tech, online gambling, sports gambling.” There’s just this whole wide range of categories I thought both had highly … just huge growth potential. Then the other one had just high multiple exit potential. And I was like, “There’s something wrong here.” So that’s how I came up with the idea.

TG Branfalt: So, I mean, that’s a really broad sort of thing. It’s sort of interesting to me if we talk about cannabis and also sort of online gambling, which is being re-legalized or legalized in many cases through the United States. So is there sort of a trend going on of this sort of, I don’t know, acceptance or normalization of vice culture?

Catharine Dockery: So that’s exactly what my Vice Ventures is trying to do. That’s the mission, besides delivering superior returns to the people who believed in us. But we also want to change culture and change stigma and prove that these quote, bad companies, actually aren’t bad at all.

TG Branfalt: What’s been the response to your fund by the venture capital community at large?

Catharine Dockery: Great question. I think some people love it and get it and understand it. I think some people are laser focused on environmental funds or they think social impact is more important, without really realizing that Vice Ventures is also a social impact fund, in a way.

TG Branfalt: Can you elaborate on why you would consider it a social impact fund?

Catharine Dockery: Yes. Because, I mean, just look at the portfolio. All our portfolio companies are harm-reduction companies, whether it’s, we just announced recently a big investment in Lucy, which is a harm-reduction nicotine business. I would call that social impact, educating people that nicotine would not … and consumed in a carcinogenic fashion, i.e. through vapes or through combustible cigarettes, it’s actually no worse than coffee, which is just as addictive as caffeine.

TG Branfalt: So what do you look for specifically when investing in the crowded cannabis space? Are you focused on the same sort of thing that you’d be focused on, say, with the nicotine cessation with Lucy?

Catharine Dockery: So really quick, Lucy isn’t nicotine cessation for the record.

TG Branfalt: My apologies.

Catharine Dockery: They’re a recreational brand. No, it’s okay. Just legally it’s important to specify. When it comes to cannabis, I looked pretty exclusively at cannabis brands, whether that’s edible, company is lower-dose THC, joints. I think it’s really important to invest in really, really sharp brands. I just don’t think we’re there yet.

TG Branfalt: What do you mean by that?

Catharine Dockery: I think we’re very early stages in the cannabis brand section. I think in the next few months, a lot of these companies will run out of money and we’ll be able to see kind of which brands stand the test of time, if you will. I think then it would be a great time to invest in them.

TG Branfalt: So you mentioned low THC. I’m a huge sort of proponent of low THC products. Massachusetts has actually a cap for recreational five milligrams, which a lot of people are like … they’ll boo and hiss at it. But for me, I’m like, “This is fantastic.” Are you seeing more and more companies offer these low-THC or are developing these low-THC products?

Catharine Dockery: Yeah, definitely. I would say almost every cannabis deal I’ve seen in the past week or two weeks or so have been all low-dose products, whether it’s low-dose beverages, low-dose chocolates, it’s low dose is definitely the future.

TG Branfalt: So do you give particular attention maybe to crossover businesses, such as companies that make THC-infused lube?

Catherine Dockery: I mean, I’m all about crossover businesses and I think as long as it fits the Vice thesis, it is definitely worth looking at. But I just think a THC lube or vice lube is a very difficult business to be in, just because it’s so niche.

TG Branfalt: So is there anything else that you … because THC lube, when it first sort of came out, and I worked in the adult shop industry for a very long time.

Catharine Dockery: Awesome.

TG Branfalt: So I saw what lubes worked and what lubes didn’t. So I have this sort of perspective there. My question is are you seeing a lot more companies trying to maybe cross over? I mean, we see beer companies getting involved in the cannabis space, big time. Are you seeing more of this sort of corporate crossover or these partnerships happening from your perspective?

Catharine Dockery: Yes, actually, which is why I think vice investing and the venture capital space is so exciting because I think because of all the crossover, there’s a lot more exit potential than say a normal CBG grocery company. You could, like a CBD beverage, for example, could get bought by Pepsi. It could get bought by AB InBev, by Constellation, by Coca Cola, by Nestle, literally by anyone. So I think that’s what’s so exciting about it.

TG Branfalt: It sounds like you’re half expecting these sort of major deals to occur.

Catharine Dockery: I think some of them will be, for sure. I think a lot of this is brand new products to the market, more so than in any other industry, in a way.

TG Branfalt: So I mean, your firm balances this social responsibility and taboo. How do you think other companies, large companies, such as the ones you mentioned, Coca Cola, Nestle, are going to be able to sort of jive that with their investors?

Catharine Dockery: I think it just comes down to overcoming stigmas. I think a lot of these companies will kind of go wherever is making the most money, as proved by the Canopy-Constellation deal.

TG Branfalt: Which is, I mean, was shocking.

Catharine Dockery: It’s huge. It’s massive.

TG Branfalt: And now they own, they’re majority stakeholders in that company.

Catharine Dockery: Yes.

TG Branfalt: Right. Yeah. Speaking of stocks, last year was not a great year for cannabis stocks. Some of the biggest players, Aurora, Canopy didn’t do particularly well towards the end of the year. What’s your take on that and sort of expectations for 2020?

Catharine Dockery: I think, I don’t know. It’s a weird analogy to me. But I think it’s very similar to Donald Trump getting elected, everybody just thinking that the market is so much bigger than it is. Then people just not admitting that they participate or don’t participate or anything. So I think that’s kind of what happened is people realized that people actually didn’t really smoke, especially when they say that they did. I think that will have some effect on cannabis exits, which is why I think a lot of these companies will go under the next 6 to 12 months. I think we’ll really see which brands resonated with consumers and all that.

TG Branfalt: What makes for a successful brand in your opinion? I mean, does it involve sort of that sort of celebrity, which we just saw Whoopi & Maya decided to close. But we do see a lot of celebrities sort of coming in the space. Or is it leadership? What sort of draws you in with regard to brands?

Catharine Dockery: So I’ll give you example a great brand. Are you familiar with the CBD water called Recess?

TG Branfalt: I am familiar with the name.

Catharine Dockery: Yes. We were early into Recess. They’ve launched in multiple cities across the country in a short 16-month period. We invested in Recess just because of the brand itself. We didn’t even test the product before making a commitment. Just the brand, the idea of taking a recess, that is a nostalgia to every single American who’s taken a recess as a kid.

TG Branfalt: Interesting.

Catharine Dockery: So that to me is a great example of a really strong brand.

TG Branfalt: Something that sort of sticks out in your head, where you hear that and you think of that.

Catharine Dockery: Yeah, exactly.

TG Branfalt: So what are the risks in investing in these industries, sort of aside from the sort of obvious ones. Right? I’m not an investor, a lot of our listeners are. They probably have a better idea on what those risks are than I do, in many ways. But aside from the basic, “You can lose money,” what really are the potential rewards here, sort of the abstract bigger picture, I guess?

Catharine Dockery: I think some of the biggest risks are definitely regulatory, especially for CBD. Nobody knows if it’s going to be outlawed in food and bev or not. I would say also this isn’t a rant, but for cannabis, it’s definitely regulatory as well. So the laws change every three months on that. The alcohol, you need to make sure you comply with the three-tier system. Some people swear by drawing it to alcohol. But that’s even more difficult. I don’t know. There’s a lot of risks.

TG Branfalt: What do you tell your investors are the rewards in this space aside from sort of the returns? You know what I’m saying?

Catharine Dockery: No. What do you mean?

TG Branfalt: So this idea of social responsibility and this idea of sort of ending stigma, is this something when you are making that pitch to your investors that intrigues them just as much as the profits in many cases? Or is it purely profit-driven?

Catharine Dockery: I think any investment should probably be profit driven, just because you have a fiduciary responsibility to help your investors make more money than they had when they put in. Besides that, I think there’s also a social responsibility to make sure that you’re investing in really intellectually honest operators, who know exactly their products, the harm that it can give to the users and just didn’t hide it.

TG Branfalt: I like the term intellectually interesting.

Catharine Dockery: Yeah.

TG Branfalt: Several states expected to legalize this year. Where we are in New York, which we know it happened last year. You’re a lifelong New Yorker like I am, basically. We know Cuomo’s history and the legislature here is a mess. New Jersey, Connecticut, Rhode Island, Vermont lawmakers are right now in the middle of bringing in a taxed and regulated system. Does one state or a couple of states stand out to you as most ripe for investment?

Catharine Dockery: I think Oregon is a really interesting one, just because I think it’s less fragmented than the other states. I mean, tons of people are pouring money into California brands. I’m not sure that makes sense yet.

TG Branfalt: What about as far as the ones that we sort of expect this year?

Catharine Dockery: Give me an example.

TG Branfalt: Like New York, Jersey, Connecticut, Rhode Island.

Catharine Dockery: I think New York would be a great place. I think brands are built in New York City. I mean, look, you have Away, Glossier, Bonobos, Warby Parker. Really strong brands are built here.

TG Branfalt: I mean, and the other thing too, that we have to consider, is the way the medical licensing is set up. It’s really going to be a prime opportunity, I think, the way they’re going to set it up, for branding.

Catharine Dockery: Yep.

TG Branfalt: In your experience thus far with your fund, has there been a particular state that has proven to be a solid enough industry investment? Maybe Nevada, considering it is pure vice?

Catharine Dockery: Yeah. Not yet. Most of our investments to date have been between East LA and New York. Which I don’t know, maybe that’s because that’s where I spend most of my time. But definitely looking at Vice in a every state.

TG Branfalt: So what advice do you have for entrepreneurs who are looking to enter this space as far as brands go?

Catharine Dockery: Well, depends which category. I mean, nicotine is arguably more difficult than cannabis, I would say. But I think it’s all about just pairing up with somebody who’s really good at branding, finding somebody who can do operations and just going out there and doing it, finding distribution and finding partners that can help you.

TG Branfalt: Awesome. Where can people find out more about you, about the firm? Give us the plugs.

Catharine Dockery: Viceventures.com. There’s an email address on there, that’ll link you to me.

TG Branfalt: Brilliant. Thank you so much, Catherine. It’s really been nice to have you on the show, pick your brain a little bit. Like I said, it’s a super sort of interesting angle that you’ve taken there and I really appreciate your insight.

Catharine Dockery: Thank you so much.

TG Branfalt: That was Catherine Dockery. She’s a founding partner of Vice Ventures, a venture capital fund that has raised about 25 million in its first round. Invests in vice, such as alcohol, cannabis, and more.

You can find more episodes of the Ganjapreneur.com Podcast in the podcast section of ganjapreneur.com and in the Apple iTunes Store. On the Ganjapreneur.com website, you’ll find the latest cannabis news and cannabis jobs, updated daily, along with transcripts of this podcast. You can also download the Ganjapreneur.com app in iTunes and Google Play. This episode was engineered by Trim Media House. I’ve been your host, TG Branfalt.

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PetSmart Now Selling Hemp Extract In Select Markets

5/20/2020

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National pet supply chain PetSmart has started carrying hemp extract Mary’s Tails, the first cannabinoid extract to be offered by the retailer, the company said in press release, adding that it chose the brand due to the company’s “transparency, quality, efficacy and pet-friendly delivery methods.”

The products will initially be sold at 122 PetSmart locations in Colorado, Indiana, Kentucky, Oregon, and Tennessee with plans to expand to additional stores by this summer.

Luke Mullins, vice president of pet sales at Mary’s Brands, said the partnership would make the full-spectrum extracts “even more accessible to pet parents, allowing them to provide their dogs and cats with the daily wellness benefits of hemp-derived CBD.”

A first-of-its-kind 2018 study by researchers at Cornell University College of Veterinary Medicine using an ElleVet Sciences hemp oil product for dogs found the product “efficacious for pain in dogs with osteoarthritis, chronic joint pain and geriatric pain and soreness; with dramatic beneficial effects in [the] more geriatric patients.”

Tim Milano, vice president of merchandising for PetSmart, said adding Mary’s Tails products “will answer the call” from the company’s customers “seeking options for a highly trusted hemp extract with naturally occurring CBD for pets.”

“PetSmart continues to build a world class shopping experience through merchandising, product selection, and service. We evaluated numerous CBD pet brands and selected Mary’s Tails to be the first CBD brand to be on shelf.” – Milano in a statement

A 2019 New Frontier Data report suggests that the pet and animal CBD sector could be “among the fastest growing” in the market, estimating a compound annual growth rate of 57 percent and sales up to $125 million by 2022.

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Oregon Sets New Cannabis Sales Record In April

5/20/2020

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Oregon cannabis retailers set a new monthly sales record of $89 million during the month of April, KGW reports. It is the second record-breaking sales month in a row after March sales reached $84.5 million, according to Willamette Week.

Oregon Liquor Control Commission data shows that April saw a 45% increase in sales from last year. While April is generally a high-performing month due to widespread 4/20 celebrations, the sales spike cleanly coincides with the emergence of social distancing efforts and official stay-at-home orders in light of COVID-19.

Gov. Kate Brown issued the state’s stay-at-home order on March 23. Since then, the industry has adapted to the pandemic scenario by implementing online sales with curbside pickup and a heavier emphasis on delivery services.

Cannabis advocates have highlighted the industry’s success and essential status in most legal markets as yet another reason for widespread legalization. Oregon currently generates over $100 million in annual tax revenue from the cannabis industry.

“There’s a reason why over 25 states have declared marijuana dispensaries to be essential services. These are things people rely on.” Oregon Rep. Earl Blumenauer (D), via KGW

Earlier this month, federal lawmakers in the House of Representatives added language giving the cannabis industry access to traditional banking services to their proposed coronavirus economic stimulus package. The banking language and other aspects of the proposal, however, were lambasted by the president and Republican lawmakers, who hold the majority in the Senate, as a “partisan wishlist.”

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Portland, Maine Officials Uphold Cannabis License Residency Rules

5/20/2020

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The Portland City Council has voted to keep the resident requirements for cannabis industry licenses intact for the city’s businesses, the Portland Press Herald reports. The decision comes a little more than a week after the state reached an agreement with Wellness Connection of Maine in their lawsuit challenging the residency rules that prevents regulators from enforcing the rules.

The council’s decision goes against the legal advice of municipal attorneys but supporters argue the city regulations will be easier to defend in court. Unlike the state’s all-or-nothing approach – a four-year Maine residency requirement – locals will get preferential treatment by the city only if it gets more than 20 applications and must break a tie among those with similar business experience, bank deposits, and employee wages, the report says.

Councilor Tae Chong warned that the decision could lead to a legal challenge against the city – which is struggling financially from the coronavirus impact – which could result in an injunction that prevents any cannabis industry licenses from being awarded.

After reaching an agreement with the state and dropping its lawsuit, Wellness Connection said it expected Portland to drop its residency requirements, too. Wellness Connection is 51 percent-owned by Mainers. Wellness Connection attorneys told the Press Herald that they could make the same argument against the city they did the state. The state Supreme Court has previously ruled against residency requirements for business licensing.

Anne Torregrossa, an attorney for the city, warned the city council that the decision to uphold the residency requirements is “a risk” but didn’t guarantee they would lose in court.

“Any time you are picking and choosing winners based on in-state versus out-of-state, or even in-city versus out-of-city, you run the risk of running up against the Constitution. This is a legal risk. The state scheme is slightly different but it chose not to take that risk.” – Torregrossa during her remarks at the city council meeting, via the Press Herald

Wellness Connection attorney Matt Warner told the council that there are “good policy reasons” not to have residency requirements but the “big reason” is that they are “unconstitutional.”

“The courts have repeatedly found dozens if not more times that laws like this which gives a preference to the citizens of one state over the citizens of another violates the Constitution,” he said during comments prior to the vote, according to the Press Herald.

With the ordinance adopted, Portland became the 40th Main municipality to approve adult-use cannabis operations. The reforms were approved by voters in 2016 but have been repeatedly delayed. First by former Gov. Paul LePage who vetoed regulation implementation bills, then by delays in the licensing process, then the coronavirus pandemic.

Regulators have not indicated when recreational cannabis sales in the state would commence.

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Judge Approves $77M GenCanna Bankruptcy Sale

5/20/2020

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A U.S. bankruptcy judge has approved an order allowing Kentucky hemp processing company GenCanna Global USA Inc. to sell off its inventory, intellectual property, and licenses to MGG GenCanna Acquisition Group, Law360 reports. The deal also involves a credit bid of $73.5 million, which MGG lent to GenCanna both prior to and after the company filed the bankruptcy petition.

MGG will also pay another $3.5 million in cash, the report says.

GenCanna filed for bankruptcy in February after accusations of non-payment to contractors – and at least one lawsuit by a contractor seeking payment – layoffs at the company in January, and claims that the firm violated contracts and sent low-quality hemp seed which led to more lawsuits.

According to court documents outlined by Law360, MGG is receiving nearly 15,000 bales of hemp as part of the deal. GenCanna will keep 13 vehicles and at least a few of its properties, the report says.

U.S. Bankruptcy Judge Gregory Schaaf last week overruled claims by Bragg Farms & Co, who objected to the sale, over $2 million it is owed by GenCanna for about 1,700 bales of hemp. Schaaf said the farm had no lien on the property and was an unsecured creditor.

In signing off on the order, Schaaf said it was the “best deal” GenCanna would get.

The judge’s approval is likely just the beginning of the process after the U.S. Trustee’s Office on Monday filed a motion asking to convert the case to a Chapter 7 after GenCanna let its insurance lapse for a $4 million property and a greenhouse it has in Paris, Kentucky.

GenCanna’s unsecured creditors may also seek litigation against MGG to resolve their claims, and the official committee of unsecured creditors has filed a motion asking the judge to grant it standing to prosecute and settle its claims. That motion is expected to be heard next month.

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Los Angeles Explosion Linked to Butane Wholesaler

5/19/2020

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Los Angeles officials have launched a criminal investigation into the origins of a warehouse fire that resulted in a powerful explosion on Saturday evening, injuring 12 firefighters. The site was operated by Smoke Tokes, a warehouse distributor of butane and other products commonly used to create hash oil, the Los Angeles Times reports.

The blaze was reported on Saturday afternoon in the city’s Toy District. During the firefighters’ response, an explosion shook the building and damaged nearby structures and a parked fire truck. Firefighters put out a mayday call and fled to safety. Some emerged from the building on fire with “obvious damage and burns,” said Capt. Erik Scott, spokesperson for the Los Angeles Fire Department. Ultimately, the blaze raged for one hour and 42 minutes before it was subdued by the combined effort of more than 230 city firefighters.

Luckily, nobody was killed during the inferno, however, 12 firefighters were admitted to the hospital — most were released by Monday, although four remained in serious but stable conditions.

Some initial reports claimed that the explosive fire was tied to illicit butane hash oil extraction, although officials have not shared any evidence of that claim and the actual source of the fire has not yet been confirmed.

Anti-cannabis activists were nonetheless quick to blame the incident on the cannabis industry, while industry representatives pointed the finger at city officials for having not taken steps to properly license local manufacturers of cannabis concentrates.

“The tragic events of Saturday’s explosion are a direct consequence of cannabis prohibitionist policies combined with lax enforcement against illegal retail and manufacturing operators. The only plausible reason for a vape supply company in downtown L.A. to be wholesaling butane canisters is to serve the needs of illegal extractors.” — Wesley Hein, an executive at Mammoth Distribution, via Leafly

In 2016, a business with the familiar name SmokeTokes caught fire in the same LA neighborhood and required a response of more than 160 firefighters; it was not immediately clear whether the two businesses are linked. No firefighters were injured during the 2016 blaze.

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Massachusetts Adult-Use Cannabis Sales Could Restart Next Week

5/19/2020

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Recreational cannabis sales in Massachusetts could be revived next week under phase one of the state’s economic reopening plan after being shut down by Gov. Charlie Baker (R) on March 24, NBC Boston reports. Under the plan, businesses that were deemed unessential by the governor must develop written plans to prevent the spread of the coronavirus, display hygiene posters, and implement social distancing protocols for employees and customers.

Retail businesses that are permitted to reopen during phase one would be allowed to offer curbside pickup starting on May 25.

Baker shut down recreational sales over fears that people would travel to the dispensaries from out-of-state. Despite calls to reopen the businesses by members of the state’s Cannabis Control Commission – including its chairman – Baker refused. A group of dispensary owners and patients sued the governor over the closures but a judge ultimately ruled in his favor.

The judge did indicate that, while he could see a path forward for recreational sales during the pandemic, he did not have the authority to override the governor’s emergency order.

According to a MassLive report, the state saw a 14 percent increase in medical cannabis program enrollment from March to April. The increase could be due to the closures, but regulators also approved telehealth services for program recommendations as part of the state’s pandemic response. Medical cannabis sales are untaxed in Massachusetts, while recreational sales carry a 6.25 percent sales tax, a 10.75 percent state excise tax, and up to a 3 percent tax at the local level.

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US Cannabis Equity Fund Acquires Leading UK Flower Producer

5/19/2020

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U.S.-based private equity, cannabis-focused fund Artemis Growth Partners has agreed to acquire United Kingdom-based horticulture company Bridge Farm Group in an $81 million deal. Bridge Farm is the U.K.’s leading ornamental plant, flower, and herb producer. The deal comes after Bridge Farm split from its former parent company Sundial Growers UK – a subsidiary of global cannabis producer Sundial Growers Inc.

Bridge Farm holds one of just 12 medical cannabis exportation licenses issued by the UK Home Office, the Guardian reports. The company already cultivates and produces CBD oil.

Will Muecke, co-founder of Artemis Growth Partners, told the Telegraph that Bridge Farm has “no equal asset” in the cannabis space.

The new entity will be 100 percent owned by Artemis. The company said in a press release that the merger and acquisition deal was the largest in European cannabis industry history and the highest value of the year for Europe’s farming and horticulture.

David Ball, operating partner and senior advisor at Artemis Growth Partners, said that Bridge Farm boasts “over 2 million square feet of the most technologically advanced, automated glasshouse production in all of Europe.”

“We see Bridge Farm as the cornerstone of a vertically integrated global producer of cannabis and other medicinal botanicals with future offerings ranging from cannabis flower and concentrates, as well as other essential oil and phytomedicinal extracts, into a wide range of plant-based branded and wholesale health and wellness products.” — Ball, in a statement

Muecke added that in the midst of the coronavirus pandemic, national budgets are going to have “giant gaps and the economics are overwhelmingly in favor of governments jumping ahead and legalizing cannabis and finding near-term revenue there.”

Medical cannabis is legal in the U.K. but it is not widely available in the country and is mostly limited to pharmaceutical products such as Epidiolex. In February, Food Standards Agency Chief Executive Emily Miles indicated that CBD product sales could be shut down if they do not get regulatory approval as currently none of the products sold have been approved by regulators.

A poll last summer found 77 percent of British adults support broad medical cannabis access. Another 48 percent said they supported adult-use legalization.

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Court Advances CBD Retailers’ Civil Rights Lawsuit Tied to Tennessee Raid

5/19/2020

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Three lawsuits tied to a 2018 law enforcement crackdown on CBD retailers in Tennessee will move forward after the Sixth Court of Appeals ruled against Rutherford County officials who sought to have the case thrown out, the Tennessean reports.

The defendants – Rutherford County Sheriff Mike Fitzhugh, Assistant District Attorney John Zimmerman, and District Attorney General Jennings Jones, the Town of Smyrna and its Police Chief Kevin Arnold – asked the courts to dismiss the civil suit related to the so-called “Operation Candy Crush” raids, arguing that their actions during the course of the operation did not rise to the level of constitutional right violations, the report says.

The plaintiffs – three business owners whose shops were targeted in the raid – contend that the defendants were motivated by conspiracy to violate the plaintiffs’ rights. In all, 17 business owners were arrested and had their store padlocked; ultimately, the charges were dropped and expunged, and the courts ruled CBD sales were legal in the state.

According to court documents outlined by the Tennessean, warrants for the search were based on Tennessee Bureau of Investigation lab reports that showed illegal substances in CBD candy products at the stores. TBI statements show the agency never made a ruling on whether those substances were illegal because their tests can only test for the presence of THC and not THC levels.

Jones and Zimmerman also reportedly pushed the issue outside of their jurisdiction. Jones went so far as to tell a county sheriff major that he would throw TBI “under the bus” for refusing to testify over the lab results.

Fitzhugh’s behavior during the raid was also under fire, specifically comments made during a press conference following the arrests that were found to be untrue. In the Circuit Court opinion, Judge Julia Smith Gibbons wrote that Fitzhugh’s false statements – that the business owners were spraying candy with illicit substances – “suggest he conducted himself in the investigation with a reckless disregard for the truth.”

Fitzhugh was also found to have offered justifications for the arrest despite receiving contradicting information in court.

Gibbons ruled that those actions disqualified officials from either absolute or qualified immunity from the lawsuit; however, Fitzhugh was ruled to have immunity against the charge that the store owners’ equal protection rights were violated.

“The complaint offers very specific factual allegations that Jones and Zimmerman acted outside their role as judicial advocates during the investigative phase of Operation Candy Crush and were objectively unreasonable in pushing the operation forward without probable cause.” – Gibbons, in the opinion, via the Tennessean

The ruling allows the case to continue in the District Court, which had previously denied the defendants’ motion to dismiss. The complaint shows that 12 of the 17 stores targeted in the raids were owned by people of Egyptian descent and collectively they own 15 of the 19 shops.

The day after the arrests, Zimmerman reportedly told an attorney that represented one of the CBD brands sold at the stores that “all the people selling CBD in Rutherford County are ‘foreigners.'”

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High Times Extends Reg A Fundraising, Terminates Humboldt Heritage Deal

5/18/2020

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A report filed last week with the United States Securities and Exchange Commission (SEC) shows that Hightimes Holding Corporation will once again be extending its fundraising efforts and public listing until as late as June 30, 2020. Additionally, in the same document, the company reported it will be terminating a recently announced deal to acquire Humboldt Heritage Inc. and it’s subsidiaries.

High Times first started selling Regulation A shares to an eager fanbase in July 2018 after multiple failed attempts at going public. Many fans have since started asking what happened to their investments, but no timeline for being listed has been released.

During the years after its initial Reg A fundraising push, High Times started acquiring magazines, online publications, and events that centered around cannabis culture. Eventually, the teams behind publications including DOPE Magazine, Culture, and Green Rush Daily were let go by High Times and longstanding events like Reggae on the River were canceled without explanation.

This year, the company has flown through multiple executives as it pivots to a focus on vertically integrated retail. In January, former Overstock CEO Stormy Simon replaced media executive Kraig Fox; within weeks of her entry, High Times signed a deal for dispensary licenses in Nevada and California. Simon, however, recently resigned from the position and former American Eagle Outfitters and Victoria’s Secret executive Peter Horvath is now at the helm.

In late March 2020, the company signed a letter of intent to acquire Humboldt Heritage and subsidiaries Humboldt Sun Growers Guild and Grateful Eight LLC, which would have given the company access to cultivation, production, and manufacturing capabilities in California. That deal has apparently been terminated, however, as per another announcement in the recent SEC filing.

A few weeks prior to the latest Regulation A extension, High Times announced it had reached an agreement for the acquisition of 13 dispensaries owned by Harvest, a Tempe-based operation. Harvest currently operates dispensaries in California, Arizona, Pennsylvania, Arkansas, Florida, Maryland, and North Dakota.

Despite the announced acquisitions and High Times Holding Corp. having received its trading symbol from the Financial Industry Regulatory Authority, the company has not yet set a specific timeline for going public.

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Summitt Labs Recalls CBD Tincture for Elevated Lead Levels

5/18/2020

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CBD manufacturer Summitt Labs announced it was recalling Batch#730 Lot#K018 of its Kore Organic Watermelon CBD Oil Tincture after the Florida Department of Agriculture and Consumer Services found lead levels of 4.7 ppm following a randomized test. The recall was first announced by the company on May 12 and was later published by the FDA on May 15.

FDA accompanied its announcement with the warning that the products’ lead levels were high enough to cause acute lead poisoning, symptoms of which include pain, muscle weakness, paresthesia, abdominal pain, nausea, vomiting, diarrhea, constipation, poor appetite, weight loss, encephalitis symptoms, a metallic taste in the mouth, shock, hemolysis, and kidney damage.

During its investigation, Summitt Labs tested another sample from the batch and found lead results of 500 ppb (.5ppm), which is within the legal limits; the company, however, still issued and plans to complete its voluntary recall.

“Any consumer with Lot #K018 Batch #730 in their possession are urged to contact Summitt Labs by phone at (833) 810-5673 Monday-Friday 8a.m. to 5p.m. EST, or through the website at www.Koreorganic.com. Any consumer with Lot #K018 Batch #730 should return this product to the place of purchase for a full monetary refund.” — FDA notice about Summitt Labs recall

The batch was distributed nationwide and can be identified by the Kore Organic Logo and Kraft Paper Packaging on the 30-milliliter bottle, pictured below.

Label photo provided via FDA.

The company was notifying distributors and customers alike of the recall via email, phone calls, and personal visits, FDA reported.

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Oklahoma Approves Cannabis Breathalyzer Pilot Program

5/18/2020

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Oklahoma lawmakers last week approved a bill requiring the Department of Public Safety to spend $300,000 on creating a pilot program for breathalyzers that test for cannabis impairment, the Oklahoman reports. Under the program, the results of the test would not be admissible in courts.

Rep. Scott Fetgatter (R) said that the state has “a lot of problems when it comes to medical marijuana and DUI laws and determining impairment” but that participation in the program would be voluntary and the results should not be used in a punitive manner.

Rep. Ross Ford (R) described it as a “trial program to make sure the system works.”

Department of Public Safety Spokeswoman Sarah Stewart told the Oklahoman that it could take up to a year for the pilot program to be operational because the agency has to come up with program rules and may end up having to bid out that work. She indicated that officials will want to see if other states have done similar pilot programs.

The state is reportedly considering using a THC breathalyzer from California-based Hound Labs. CEO Mike Lynn told KGOU that their device can accurately detect cannabis use within the last two hours.

“When you find THC in breath, you can be pretty darn sure that somebody smoked pot in the last couple of hours. And we don’t want to have people driving during that time period or, frankly, at a work site in a construction zone.” – Lynn in a KGOU interview

Police in California trialed a Hound Labs device in 2016. Massachusetts Gov. Charlie Baker (R) has supported the use of THC breathalyzers and in Vermont, the DUI issue has been a sticking point by lawmakers before moving into a taxed-and-regulated market.

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Missouri Gives Regulators Access to Employee FBI Background Checks

5/18/2020

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Missouri’s House of Representatives has approved a measure that bans some medical cannabis edibles and gives some officials at the state Department of Health and Senior Services access to the Federal Bureau of Investigation national fingerprint and background check database, Missourinet reports.

The measure, which already passed the Senate, will allow some individuals working on medical cannabis at DHSS to perform background checks on employees associated with medical cannabis licensing and the agency could eventually require fingerprints from industry operators and workers as part of the licensing or certification process, the report says.

Representative Ron Hicks (R) said the measure would keep the state’s medical cannabis industry “clean” so the state and cannabusinesses can ensure that they “have the correct employees handling” the product.

Previously the FBI had declined to share fingerprint and background check information with DHSS because it is not a law enforcement agency.

The edibles provisions in the bill ban medical cannabis edibles that are designed, produced or marketed to appeal to people under 18 years old, including “the shape of a human, animal, or fruit, including realistic, artistic, caricature, or cartoon renderings,” according to the bill text. It does allow “geometric shapes, including, but not limited to, circles, squares, rectangles, and triangles.”

The measure also includes telemedicine rules and guidelines for physicians who recommend medical cannabis.

The bill still requires Gov. Mike Parson’s (R) signature before taking effect.

The House is currently conducting an investigation into how regulators handled the state’s medical cannabis licensing process, which includes determining whether companies linked to the Missouri Medical Cannabis Trade Association and the association’s lobbyist Steve Tilley were given preferential treatment in the process.

Last week, the House passed a bill to remove the cap on medical cannabis licenses in the state which would essentially allow any business owner to secure a license if they meet the minimum state requirements; however, the session ended on Friday without further action taken on the measure in the Senate.

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Minnesota Tribe to Vote on Medical Cannabis Legalization

5/18/2020

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Minnesota’s Red Lake Nation plans to vote on Wednesday whether to legalize medical cannabis and, if approved, the tribe would be the only one in the state with a medical cannabis program that allows flower, the Duluth News Tribune reports. Medical cannabis is legal in Minnesota; however, the state only allows liquids, pills, or vaporized forms.

Chippewa Cannabis Party member Kevin Jones Jr. said the group hopes a successful referendum leads, eventually, to broad recreational legalization. The party worked 18 months to collect 2,500 signatures to get the medical cannabis issue on Nation ballots, he said. The tribal council approved adding the question to ballots in February.

Jones indicated he visited other tribal nations where medical cannabis had been legalized and found that they’d experienced a reduction in opioid overdoses.

“That’s something that I want to really fight for. I don’t like those hard drugs – they took my family members. If this passes, this is going to make a big change here in Red Lake Nation. There’s going to be a lot of changes to come with this.” – Jones in an interview with the News Tribune

Jones is also running for a four-year term as Redby representative under the Cannabis Party banner and said that if he and other party members were elected to the council, they would push for full recreational legalization within 30 days.

Native American tribes throughout the U.S. have mixed cannabis policies. In 2015 the Menominee Indian Reservation in Wisconsin – the only tribe in the U.S. to be held to federal law – approved an “advisory” vote to legalize medical cannabis but the tribal chairman has not moved forward on the issue.

In Washington, the Suquamish Tribe and Squaxin Island Tribe have both legalized cannabis internally and in 2015 signed 10-year compacts with the state Liquor and Cannabis Board. The Squaxin Island Tribe operates the cannabis dispensary Elevation. The Puyallus Tribe runs a dispensary in Fife – which does not allow cannabis sales but the tribe operates outside of the city’s jurisdiction. The Port Gamble Band of S’Kallam Indians entered a compact with Washington to sell cannabis on its land in 2018. The Yakama Nation, however, opposed legalization in the ten counties that contain tribal lands following broad legalization in the state.

In January, Oklahoma’s Cherokee Nation – the largest tribe in the U.S. – announced a tribal “Executive Work Group on Hemp, Cannabis and Related Opportunities” which aims to make recommendations on internal tribal policies, consider the role cannabis could have in the tribe’s healthcare system, and make recommendations on hemp and cannabis cultivation and use. The results of that study are expected at the end of the month.

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Scientists Explore Cannabis Extracts as Potential Preventative COVID-19 Therapy

5/15/2020

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A study published online in Preprints suggests that cannabis extractions containing THC and CBD could help prevent the coronavirus from spreading to and infecting humans.

The study, which was conducted under a Health Canada research license, demonstrated that the cannabinoids could lower the production of two proteins — angiotensin-converting enzyme II (ACE2) and the serine protease TMPRSS2 — which are commonly hacked by the coronavirus to create a new infection.

“Cannabis sativa, especially one high in the anti-inflammatory cannabinoid cannabidiol (CBD), has been proposed to modulate gene expression and inflammation and harbour anti-cancer and anti-inflammatory properties,” the authors wrote.

The researchers did not posit cannabis extracts as a potential cure or solution for the ongoing pandemic but said that the extracts could be useful as an “adjunct therapy” in combating the virus’s spread.

Ultimately, the study, while an exciting development, is accompanied by many caveats, including the fact that all research published in Preprints has not been peer-reviewed — the online platform is essentially a database for researchers to quickly share their findings and therefore does not carry the same weight as a peer-reviewed study.

Additionally, the researchers did not conduct their experiments with human subjects; rather, they exposed cultures of human cells that are responsible for manufacturing the target protein to cannabis extracts.

“While our most effective extracts require further large-scale validation, our study is crucial for the future analysis of the effects of medical cannabis on COVID-19. … Given the current dire and rapidly evolving epidemiological situation, every possible therapeutic opportunity and avenue must be considered.” — Excerpt from the study abstract, published on Preprints.org

It is also possible that the extracts used in the study contained more than just the cannabinoids THC and CBD (such as terpenes and other, rarer cannabinoids) and that those potential substances could also have played a role in the cells’ down-regulation.

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