Michigan’s Marijuana Regulatory Agency has abruptly stopped the transferring of caregiver-grown flower to the state’s adult-use market. The April 8 announcement came less than a month after the agency said it would allow such transfers until October 1.
“Effective April 8, 2020, the MRA will not permit caregiver-produced or derived product to enter the adult-use market. Any equivalent license transfer request submitted to the MRA that includes caregiver-produced or derived products will be denied.” – MRA Advisory Bulletin, April 8, 2020
The sudden new rules apply to both caregiver cultivators and processors.
According to a Detroit Free Press report, those growers accounted for about 60 percent of both medical and recreational cannabis sold in the state. Medical cannabis dispensaries may still obtain products from licensed caregivers.
The MRA action comes after one large-scale licensed caregiver transferred more than 5,000 pounds of cannabis to the adult-use market within the last month, according to the Free Press. Under the state’s medical cannabis law, caregivers can only grow up to 72 plants total for as many as six registered patients.
David Harns, MRA spokesman, told the Free Press that allowing caregiver-derived products “was meant to supplement the medical market” and that the recreational market is “moving toward a self-sustaining eco-system.”
Adult-use dispensaries may sell caregiver-grown products they have remaining on the shelf, but the state will not authorize any new transfers. The MRA bulletin also notes that adult-use dispensaries may not transfer products or plants to medical cannabis establishments.
Cannabis networking site Leafwire and Marijuana Business Daily, the publishing firm behind the largest B2B cannabis trade show, have decided to partner for a digital space dedicated to cannabis industry networking and education, Forbes reports.
MJBizDaily has already postponed or reenvisioned many of their events in the wake of COVID-19 and the new partnership with Leafwire — the self-described “LinkedIn of Cannabis” — will offer would-be event attendees a shot at engaging with other industry professionals while still honoring social distancing guidelines.
The companies plan to lead multiple discussion groups on the Leafwire platform focused on MJBizDaily content; subject matter experts will help to moderate questions from the digital crowd.
“Meeting people where they are online is key right now and without the benefit of traditional in-person gatherings, it’s even more important to provide ways for our passionate, active community to engage and communicate. We always want to meet people where they are and in their communication locations of preference. Leafwire has an excellent and growing community we want to support and engage with.” — Chris Day, MJBizDaily’s VP of External Relations, via Forbes
Leafwire founder and CEO Peter Vogel said, “We’re confident the Leafwire audience will be excited to have these groups laser-focused on the components of the industry that people care most about.”
It’s April 2020 and we’re using the whole month to honor cannabis and counterculture activists who helped pave the way for society’s reacceptance of cannabis. Last week, we touched on the life and mission of Baba Ram Dass; the week before, we focused on fellow San Francisco activist Dennis Peron, who, alongside a host of other cannabis heroes (including Brownie Mary), helped write the first successful medical cannabis ballot initiative.
Early Life
Best-known for her famous edible infusions, having a “sailor’s mouth,” and for her polyester pants suits, Rathbun was born in Chicago, Illinois in 1922 to a conservative Irish Catholic mother. The family moved to Minneapolis, Minnesota where Rathbun spent the rest of her childhood. In her teen years she moved out of her conservative home and started waitressing to pay the bills, she would continue waitressing to make ends meet for her entire life. As a teen, her free time was spent fighting alongside fellow activists for abortion rights and the rights of miners to form unions.
During World War II Rathbun moved to San Francisco. She met a man at a USO dance and eventually wed and had a child named Ruth. The marriage didn’t last and she tragically lost her daughter in a car accident. By the 1960s, Rathbun had immersed herself in the anti-war movement while waitressing at an IHOP.
Eventually, Rathbun found herself at the iconic Cafe Flore smoking a joint with Dennis Peron. Soon after this 1974 meeting, Mary Jane Rathbun started baking cannabis into brownies to sell around the Castro neighborhood.
The intersection of 18th and Castro St in the famously LGBTQ San Francisco neighborhood.
Mary Jane Becomes Brownie Mary
The now sixty-year-old woman would advertise her brownies on local city bulletin boards citing them as “magically delicious” with other indicators that they weren’t your average baked goods. Mary was known around the Castro neighborhood for selling her treats out of a woven basket, and Peron would sell them at his pot shop in the area. Eventually, an undercover cop saw one of her coded signs and Mary Jane’s apartment was raided in January 1981. They found 18 pounds of dried cannabis flowers and 54 dozen freshly baked brownies, it’s said that she was making around 50 dozen brownies a day at this time.
After the arrest, the media nicknamed her ‘Brownie Mary’ and the public empathized with her due to her age and gender. She was given 500 hours of community service for the charge and started bouncing around different charities in the area. Those charity hours, much like the final arrest of Dennis Peron, would show Brownie Mary Rathbun her true calling.
Called to Action
One of the community service jobs that Rathbun was assigned to was the Shanti Project, a group that was responding and supporting those affected by the emerging HIV/AIDS crisis. While working with patients and familiar faces with the Shanti Project, Mary was still providing brownies for her peers. This is when she noticed something special — the cannabis in her brownies was helping her patients find relief from the wasting syndrome that ravaged their bodies.
Mary started baking hundreds of brownies and distributing them to HIV/AIDS and cancer patients free of charge, using her own social security check to pay for supplies. But her momentum was crushed after she was arrested again. Rathbun was walking down the street on her way to drop off a bag of four dozen cannabis brownies for a friend going through the rougher parts of chemotherapy and ran into the officer from her first arrest. He asked about the contents of her bag and she ended up in city jail until the district attorney eventually dropped the charges.
Proposition P
Despite her run-ins with local police, she dedicated much of her life in the 80s to volunteering in the AIDS ward. By the early 90s, Peron had asked her to speak at a meeting of the AIDS Coalition to Unleash Power (ACTUP) about how cannabis brownies could help relieve some of the pain of the epidemic. It was at this meeting where she publicly admitted to sneaking medicated brownies to patients in the AIDS war, which was one of her earliest displays of activism for safe medical cannabis access. Their work together at ACTUP evolved and Rathbun, Peron, worked together with a small team to write Proposition P.
The city-wide proposition was approved by 79% of San Franciscans in 1991 and recommended that the State of California and the California Medical Association make medical cannabis available for medical purposes. The proposition would also protect physicians who prescribed medical cannabis from penalties and persecution.
The win still didn’t stop Rathbun from being arrested a third time for her cannabis infusions less than one year later. This arrest brought international coverage as the district attorney attempted to prosecute her in the People v. Rathburn. She pleaded not guilty to two counts of felony possession and was eventually acquitted. Her legal defense relied on the fact that her brownies were a medical necessity. When she testified, she showed that her nobility in the act heavily outweighed the condemnation of the law she broke. She was most likely inspired by this experience when one month after her arrest she spoke in front of the San Francisco Board of Supervisors in defense of the plant. The board passed a resolution that day to make persecuting cultivators or people in possession of medical cannabis the city’s lowest enforcement priority. In the same meeting, they recognized her for her volunteerism and declared August 25 “Brownie Mary Day”.
Brownie Mary speaks to a crowd at People’s Park in Berkeley in 1995.
Mary’s next stop was DC, where she joined ACTUP for a protest against the medical cannabis policies of then-president George H.W. Bush. Months prior, the head of the United States Public Health Service (USPHS), James O. Mason, had discontinued a program that allowed a small group of patients to use medical cannabis. In a public speech on the matter, he made ignorant and disgraceful comments that implied giving AIDS patients medical cannabis would promote sexual deviance and promiscuity. ACTUP delivered Mason a letter that asked for a full restoration of the medical program or his resignation. At the protest outside of the USPHS Rathbun called on Mason to “follow me around for two days as I visit my kids in the wards, and then see where he stands on this”. The government official didn’t take her up on the offer, so the team went back to fight the local fight.
Cannabis Buyers Club
Rathbun opened the Cannabis Buyers Club alongside Dennis Peron in 1992 and was instrumental in the statewide campaign for Proposition 215 in 1996. The successful voter initiative allowed for the cultivation and possession of cannabis among patients with a physician’s recommendation. The vote passed with 55% percent approval in the state and ultimately opened the door for many other states to pass similar initiatives. The next year, Rathbun and Peron had the honor of serving as Grand Marshals in the San Francisco Gay Pride Parade for their work on behalf of the queer community; by this time, she was a colon cancer survivor walking on two artificial knees. She was consuming her own brownies so that she could walk despite her ailments. Her health would decline until she was eventually bed-ridden at Laguna Honda Hospital, a nursing home for the poor.
Mary Jane Rathbun passed away on April 10, 1999 of a heart attack at age 76. A candlelight vigil was held in her honor in the Castro district where she first began selling her iconic pot brownies. To this day, nonchalant passersby at Dolores Park will have pot brownies, truffles, and other treats for sale — just one small cog in her everlasting legacy.
As we continue celebrating holidays like 4/20 and 7/10 — which have admittedly foggy origins — I would suggest that the industry start celebrating “Brownie Mary Day” on August 25 to honor the Mother of Medical Marijuana.
Founder of Dutchess Capital (now Altar Rock Capital) and early investor in Massroots Doug Leighton is being sued by the Securities and Exchange Commission (SEC) for his involvement in an alleged scheme to manipulate the cost of Massroots stock, New Cannabis Ventures reports. The lawsuit alleges that Leighton funneled investors into the cannabis company’s stock, even instructing them how much and when to buy and sell. Leighton also failed to report sales or holdings of the stock, which is legally required.
Two other companies controlled by Leighton — Bass Point Capital and Azure Capital — are named in the suit as well as fellow investors Michael Sullivan, David Hall, Zachary Harvey, Paul Dutra, Jason Harman, and Jessica Geran. The defendants were responsible for about 90% of the stock purchased by a private placement which was raised from a group of friends before it was publicly traded. Between April 2015 and March 2016, the group booked profits of $3.2 million, according to the SEC.
The lawsuit claims that Leighton used traceable email, text, phone calls, and in-person meetings to create a complicated investment scheme, all of which took place prior to Massroots going public. Leighton was able to keep track of his transactions with the help of Massroots CEO Isaac Dietrich, who provided Leighton with a Non-Objecting Beneficial Owner list on more than one occasion.
The SEC is seeking a permanent injunction, demanding repayment of all ill-gotten gains and payment of civil penalties that apply to the case. Read the full complaint here.
A worker who was fired by Amazon for their medical cannabis use won a key federal court decision this week after the U.S. District Court agreed to push the case back to the New Jersey Supreme Court, Marijuana Moment reports.
The worker, who is only listed in the lawsuit by his initials D.J.C., filed his lawsuit against Amazon in 2019 after he was fired over a failed drug test. The suit originated in the New Jersey Superior Court but Amazon filed for the case to be moved to federal court, where the company’s targeting of cannabis patients would be protected by federal law.
D.J.C. successfully had the case returned to New Jersey, where he has a significantly better chance at a positive outcome, by amending his suit to include his former manager (who is based in New Jersey) and by removing references to the federal Americans with Disabilities Act.
The case transfer is especially good news for the former Amazon worker because New Jersey’s Supreme Court ruled in March that medical cannabis patients cannot be fired over a failed drug test for cannabis use. The protections do not, however, protect patients if they are intoxicated at work.
“The plaintiff’s case has only gotten legally stronger since March of this year,” attorney Matthew Collins said in the report.
“It puts Amazon in this situation of being bound by legal precedent that wasn’t really clear in 2018, but they’re going to be bound by it in 2020 and going forward.” — Matthew Collins, attorney for Brach Eichler LLC, via Marijuana Moment
The Denver, Colorado City Council has approved a new cannabis business license for research and development, Denverite reports. Denver Department of Excise and Licenses executive director Ashley Kilroy called the license type “important” and would keep the city “at the forefront” of the industry.
The measure had one holdout on the city council, Councilwoman Candi CdeBaca, who said the license should be open only to Colorado residents and without that requirement, the licenses would be scooped up by tobacco or pharmaceutical companies.
The state passed a law in 2017 that includes cannabis R&D licensing but, according to a Denver Post report, only one company – MedPharm Holdings – has ever applied for the license. According to the report, Medpharm was granted a state R&D license in 2018 anticipating Denver would allow the licenses.
MedPharm told the Post that it plans to test the effect of cannabinoids on Alzheimer’s and dementia patients.
Denver is in the midst of updating its cannabis rules, which will include a lottery for new retail licenses and social equity rules, according to Denverite. Kilroy said the city is still working on how to define “social equity applicant.”
City licensing department spokesperson Eric Escudero called social equity the city’s “number one focus” when it comes to Denver’s cannabis industry.
Officials are also considering increasing the hours that dispensaries are allowed to stay open. Currently, dispensaries are only allowed to operate until 10 p.m. and some stakeholders are asking to push that to midnight. Kilroy said that the last time the city allowed later store hours, crimes against dispensaries increased.
Under Colorado’s emergency pandemic rules, cannabis dispensaries can now accept online orders and customers can pick them up at the shop, the Colorado Sun reports. Morgan Fox, a spokesman for the Denver-based National Cannabis Industry Association, said the changes are a step but it remains limited as credit card companies still shy away from doing business with the industry.
“We have an opportunity to prove that cannabis businesses can run these operations and do so effectively under extremely dire circumstances.” – Fox to the Sun
The order does not allow home delivery of adult-use products, which Cannabis Station manager Ben Prater called “a necessity at this point.” Lawmakers did approve cannabis delivery laws last year and companies can deliver medical cannabis this year; under the rules, adult-use products can be delivered in 2021, the report says. Localities can permit cannabis deliveries and Rachel Gillette, a board member for Colorado NORML, said municipalities should pass delivery laws as citizens are hunkered down amid the state’s stay-at-home order.
Gov. Jared Polis’ (D) office told the Sun that there are no plans to allow businesses to apply for recreational cannabis delivery licenses early and delivery of recreational products would not be allowed after the 120-day emergency order expires.
California, Massachusetts, Michigan, Illinois, and Oregon allow recreational cannabis delivery services, but the practice remains limited due to the lack of credit card processing companies that are willing to serve the industry.
Colorado‘s Marijuana Enforcement Division is unable to authorize online sales without changes in state law but can evaluate whether the emergency rules should be amended, renewed, or repealed.
Multi-state cannabis company Cresco Labs is seeking to hire retail employees for its Illinois Sunnyside dispensaries and is focusing its recruitment efforts on “industries significantly impacted” by the coronavirus outbreak, the company announced on Monday. Cresco said those industries include the restaurant and hospitality sectors.
The firm said it is looking to fill 250 full-time positions, including wellness advisors, inventory managers, managers, assistant managers, and security personnel.
Charlie Bachtell, Cresco Labs’ CEO and Co-Founder, said that during the pandemic, “the needs of patients and customers in Illinois is growing and demand continues to outpace supply.”
“The COVID-19 pandemic has altered the daily lives and disrupted the livelihoods of everyone in this country, with some communities, groups and individuals impacted more than others. As the states in which we operate have acknowledged cannabis as an ‘essential’ industry, we understand Cresco’s responsibility to continue operations, to be stewards of this industry and to be leaders in our communities. Cresco has a culture that focuses on, and prioritizes, the needs of all stakeholders – we are committed to do our part to maximize our impact and help those most affected by these unfortunate circumstances.” – Bachtell in a statement
Additionally, Cresco has implemented an essential pay program for “frontline” salaried and hourly workers at its dispensaries, and cultivation and distribution facilities. That program will see employees receive additional compensation during “these unprecedented times,” Bachtell said.
Cresco has also partnered with more than 90 restaurants over eight states in which it operates to purchase, pick up, and deliver more than 650 lunches to its workforce during the pandemic.
The MagicalButter Machine MB2e is unique both for its niche abilities and the ease with which it performs. MagicalButter was created in 2012 by Garyn Angel, and it quickly became popular. In 2019, Angel made the High Times Top 100 Most Influential People in Cannabis. The infuser, with its sleek and simplistic design, can make tinctures, oils, and cooking butter. They even have a base recipe on their website called CannaSugar. Their website is aesthetically pleasing, user-friendly, and chock-full of recipes you can attempt at home with basic ingredients.
How To Make CBD Oil
For my first infusion, I decided on the MagicalButter Cooking Oil. When I say this product is easy to use, I am not exaggerating — the necessary ingredients were cannabis flower, coconut oil, and lecithin. Sunflower or soy lecithin is an emulsifier commonly used in cooking as a binding agent. In this case, it increases the bioavailability of compounds in cannabis, meaning it can help increase the potency of the extract.
I bought liquid sunflower lecithin at my local food co-op. I used standard coconut oil and picked up some CBD-heavy cannabis at the dispensary. I also added some rosemary just for fun.
Decarboxylate Your Flower
It’s important to decarboxylate your cannabis before adding it into the machine in order to activate the compounds in cannabis. To do this, simply separate your flower into smaller bits (grinding is unnecessary) and bake in the oven at 250°F for thirty minutes. Make sure you allow the flower to fully cool off before using it in the recipe (you can put it in the freezer to expedite this process).
Personally, I am not big on THC’s effects but that is why I loved the Magical Butter machine. CBD-heavy cannabis can be used the same way; the site just recommends you decarboxylate it at a slightly higher temperature and for longer than what the manual says. I used the strain Sour Tsunami which has a CBD content of 13.7%, a relaxing and stress-free THC content of 1.9%, and a terpene profile rich in myrcene and alpha-pinene. Both of these terpenes are said to help with anxiety, a benefit further expressed by cannabidiol’s own anxiolytic properties. Sour Tsunami is a strain of cannabis commonly used for treating pain, inflammation, and anxiety, which I felt was perfect for this infusion if I wanted to use the oil as a topical salve.
You simply pour all ingredients into the MB2e and press the corresponding temperature and cooking time buttons located right on the lid of the machine (for oil it is 160°F and a one hour cook time), much like a crockpot or pressure cooker. And that’s it! It will automatically turn off and beep similarly to an oven timer when your concoction has finished brewing. Then, put on the included silicone Love Glove to protect yourself from the hot machine parts and pour your mixture into the filter bag. What you’ll get is a beautiful amber-colored liquid that can be used topically for soreness, pain, and even tattoo healing or as an add-in for butter or oil in many household recipes.
Some unique features of this machine are the rim, decked with LEDs that flash rainbow when in use, and the very-bright-green and almost comical Love Glove that comes with. There is no other product in this market so user-friendly and versatile in its abilities than the Magical Butter Infuser. I had absolutely no issues with it and I am eager to discover all the new possibilities of infused cooking that MagicalButter has made available.
The town of Hancock, Maryland is being forced to pay back a $600,000 federal grant for rehabbing a building after the town rented the facility to a medical cannabis company, according to a Herald-Mail Media report.
At issue are Community Development Block Grant funds, which are distributed by the U.S. Department of Housing and Urban Development, that were given to Hancock to rehab the former Fleetwood Travel Trailer building. After Fleetwood left the site, the building was rented to Evolve Composites, but that company would ultimately close its operations at the site and in the town. Subsequently, it was rented to medical cannabis firm Harvest of Maryland but, because cannabis is federally outlawed, the funds cannot be used for the project.
Mayor Ralph Salvagno told Herald-Mail Media that the town will use rent proceeds from Harvest to pay back the loan and that, long-term, Harvest is expected to buy the property from the town.
The federal and state government also demanded that the town repay an additional $324,000, which Salvagno called “something of a surprise,” noting that officials have “never doubted” that they would have to repay the $600,000. The state, federal, and city governments came to an agreement that only the $600,000 would need to be repaid and the town would pay back the grant at $200,000 a year over three years.
Harvest has been operating at the site since 2017. The town owns a 5 percent stake in the company.
Maine officials are delaying the rollout of recreational cannabis sales citing the coronavirus pandemic. In a letter to stakeholders, Office of Marijuana Policy Director Eric Gundersen called a spring industry launch “unrealistic.”
In the letter, Gundersen said that localities preparing for authorization to opt-in to adult-use sales have to postpone their actions amid the outbreak and that there are currently “sheer unknowns” such as when social distancing efforts will be scaled back.
“We are simply unable to provide any concrete timelines in these uncertain times. We cannot tell you with any level of certainty when towns will be able to take action to ensure there will be adequate testing to meet the needs of program, and we certainly cannot set a definitive retail sales launch date amidst a public health pandemic.” – Gundersen in the letter
Gundersen said that despite the pandemic, the agency is “continuing to operate at full capacity to be ready” for when the industry will be rolled out. He said that the OMP, along with Metrc, have “completed user acceptance testing, deployment certification, and have moved Maine’s track and trace system into a live production environment.” Additionally, the agency is still accepting industry applications.
Last month, officials announced they were delaying the start of recreational cannabis sales in the state until June – three months later than expected. It’s been four years and counting since Maine voters approved adult-use sales.
“If you had asked me a month ago if anything could have stopped our progress, I would have balked at the suggestion,” Gundersen wrote in the letter.
He did not offer a new timeline for the launch of the market.
Stormy Simon, the CEO of Hightimes Holding Corp. and former President of Overstock.com, has announced she is running to represent Utah’s 21st District in the state House of Representatives.
Simon unveiled her plan during an appearance on the TRICHOMES Podcast aired on Friday, saying she decided to run for office after the governor, lawmakers, and Mormon Church colluded in late 2018 to override voters on the issue of medical cannabis. Ultimately, officials gutted the state’s voter-approved initiative to legalize medical cannabis by slashing the number of allowed dispensaries, removing many of the program’s qualifying conditions, and stripping away access to most edible products.
“They took the people’s vote and they changed it, and that bothered me. That is really what triggered me to say, ‘I don’t think that’s okay.'” — Stormy Simon, via the TRICHOMES Podcast
Simon rises to challenge incumbent Rep. Douglas Sagers, a Republican who has held the seat since 2011. She is running as a Democrat but spent much of her life as a registered Republican and then Libertarian — primarily due to her beliefs on fiscal matters, she said.
“I call myself a Democrat in Utah and a Republican in California,” Simon said. “The parties don’t understand that but I don’t understand choosing one party. It really is based on the state you are in, and it varies greatly.”
Virginia Gov. Ralph Northam (D) has signed into law cannabis decriminalization reforms that include expungement provisions. The measure reduces the penalties for possession of up to a half-ounce to $25; previously, possession charges could lead to a $500 fine and 30 days in jail.
Northam signed the law along with a host of others aimed at reforming the state’s criminal justice system. According to Virginia Criminal Sentencing Commission data, more than 15,000 people were convicted in the state for a first or second marijuana possession offense from July 2018 to June 2019.
“Every Virginian deserves access to a fair and equitable criminal justice system. These bills combat mass incarceration, increase support for returning citizens, and ensure that those who have paid their debt to society have a meaningful second chance. I thank the General Assembly for working with us to build a more just and inclusive Commonwealth.” – Northam in his signing statement
Jenn Michelle Pedini, NORML Development Director who also serves as executive director of the state affiliate Virginia NORML, said in a statement that Northam’s signing of the bill, “turns public opinion” — that cannabis should be decriminalized in the state — “into public policy.”
The bill requires that all previous convictions and records for simple possession be sealed but also includes provisions requiring substance abuse screening and loss of driving privileges for juveniles caught possessing any amount of cannabis.
The bill also requires the secretaries of Agriculture and Forestry, Finance, Health and Human Resources, and Public Safety and Homeland Security to convene a work group to study the impact of legalizing adult cannabis use. Under the law, that report based on the recommendations of the workgroup must be submitted to the General Assembly and the Governor by November 30, 2020.
Main’s Office of Marijuana Policy (OPM) announced in early February they awarded a new contract to Metrc; the agency had just cut ties with BioTrack THC after an eight-month contract. The $540,000 contract is for six years and will use RFID chips to track cannabis plants and products throughout both Maine’s medical and adult-use markets.
“We are excited to partner with Metrc,” said Maine’s Director of OPM Erik Gundersen in a press release. “Metrc is an industry leader, and their team is committed to delivering a product that will allow us to proceed with the launch of our adult use program later this spring.”
According to a Metrc press release, scheduled training “roadshows” were adapted statewide throughout March to follow new social distancing guidelines. Despite numerous challenges, the system was delivered in sixty days.
“We appreciate Metrc’s ability to deliver a completed track-and-trace solution within one of the tightest timeframes imaginable. Thanks to the dedication and hard work of the Office of Marijuana Policy and Metrc teams, this important milestone was realized as scheduled at the end of March. We look forward to a long, productive relationship and utilizing Metrc to help ensure the success of the programs we regulate.” — Gundersen, in a statement
Additional training will be provided to licensees prior to Metrc issuing user credentials. The RFID chips cost $0.45 and $0.25 each, while licensees will pay a $40 monthly fee to access the statewide tracking system.
Six cannabis business groups are lobbying governors to provide state-based loans for the industry since cannabis firms are not eligible for federal coronavirus aid programs, according to The Hill.
In states that have legalized cannabis recreationally or medically the businesses are considered essential (except for recreational-use dispensaries in Massachusetts) and the organization say like other essential businesses, the cannabis industry is “facing significant uncertainty and costs to provide for our employees and to maintain the medical supply chain during this pandemic.”
“Yet, unlike every other essential business, there is an underlying federal-state tension which puts our businesses in a uniquely vulnerable and dire operational and financial position. This is particularly true of our small and minority-owned businesses.” – Cannabis industry letter to governors
The letter’s signatories include the Cannabis Trade Federation, Global Alliance for Cannabis Commerce, Marijuana Policy Project, Minority Cannabis Business Association, National Cannabis Industry Association, and National Cannabis Roundtable.
The Coronavirus Aid, Relief, and Economic Security (CARES) Act, provides loans, paycheck protections and other financial services to businesses to help keep them afloat during the pandemic which has forced the U.S. economy to screech to a halt. Not only are cannabis businesses that touch the plant shut out from the federal programs, but also cannabis adjacent firms including cannabis testing laboratories, equipment sellers, and consultants.
In the letter, the groups ask the governors to speak with their Congressional delegation “about including a provision in the next COVID-19 legislative relief package that would make state-legal cannabis businesses eligible for [Small Business Administration] assistance.”
Last week a cohort of Democratic senators from states with some form of cannabis legalization sent a letter to senators on the chamber’s Appropriations, and Financial Services committees urging them to allow cannabusinesses access to the program.
“While the underlying federal issues with banking, taxes, and capital access remain, our businesses need access to some additional liquidity to ensure reliability in the medical supply chain for patient access and employee retention in these uncertain times,” the letter from the cannabis industry says.
The letter notes that cannabis companies have donated personal protective equipment to first responders and medical workers, produced hand sanitizer and hired laid-off workers from other industries.
Researchers in Australia have uncovered evidence showing that cannabis could be an effective treatment against chronic insomnia, New Atlas reports. While there are heaps of anecdotal evidence suggesting that cannabis can improve one’s ability to fall and stay asleep, this is the first clinical study confirming the theory.
The double-blind, placebo-controlled study began in 2018 and featured 23 patients suffering from chronic insomnia. The study, which was conducted independently but was funded by medical cannabis company Zelira Therapeutics, measured the participants’ sleep quality with a combination of subjective responses, electronic sleep trackers, and the Insomnia Severity Index (ISI) — a clinical questionnaire that helps to measure insomnia symptoms.
Lead researcher Peter Eastwood said study participants were given either a placebo product or a proprietary cannabinoid formulation called ZTL-101, which contains both THC and CBD in an undisclosed ratio. Researchers noted a 26% reduction in ISI scores among the non-placebo group; the reduction was even higher among participants who doubled their dose of cannabinoids.
“This study represents the most rigorous clinical trial ever undertaken to assess the therapeutic potential of medicinal cannabis to treat the symptoms of chronic insomnia. The fact that ZTL-101 treatment achieved statistically significant, dose responsive improvements across a broad range of key insomnia indices is impressive, particularly given the relatively short two-week dosing window.” — Eastwood, via New Atlas
“Positive patient experiences with minimal side-effects are critical to the success of any insomnia drug and highlights the potential for ZTL-101 to address a key area of unmet need,” Eastwood told New Atlas. “It is likely that further improvements in efficacy could be achieved by dosing over a longer period and potentially at higher doses.”
In light of the ongoing COVID-19 crisis, major cannabis events and festivals have announced online 4/20 celebrations where cannabis enthusiasts can come together from all over to celebrate the cannabis holiday while still honoring social distance and active stay-at-home orders.
The Seattle Hempfest, which is held every summer and billed as the world’s largest cannabis festival, has made the decision to take their annual Spring fundraiser online. Starting at 11am PST on April 20, 2020, the 4/20 Toke-a-Thon Multicast will be open to the public worldwide and will feature live games and “interactions with Hempfest Members” throughout the day until 6pm PST.
“Throughout this virtual event Seattle Hempfest will present six hours of Hempfest content from our group and our affiliated partners. The public is encouraged to join us as we plan to keep our widespread cannabis community happy and safe in these trying times.” — Seattle Hempfest Executive Director Vivian McPeak, in a press release
The Hempfest Toke-a-Thon schedule will be announced soon but a performance by The Raelyn Nelson Band has already been teased on the Hempfest website. The event will also include 420 celebrations in all timezones, a bong hit championship, group Pictionary, and stoner trivia. Florida, Idaho, Alaska and Oregon Hempfest locations will be checking in with news and commentary throughout the multi-cast. The first 100 Hempfest “members” will be able to log in via Zoom and the stream will be available to the public on the Hempfest website and Facebook page.
Meanwhile, at least two other major cannabis cultural events — the National Cannabis Festival and the Emerald Cup — are also partnering to host a collaborative virtual event called the “Highstream 420 Festival.”
The event will feature important figures and performers from the cannabis community as part of a “coast-to-coast benefit supporting those impacted by the COVID-19 pandemic,” Forbes reports.
The free broadcast is set to air from 4pm EDT on April 20 through 10pm EDT.
Texas has issued its first industrial hemp license this week to a farmer in Killeen. The license will allow the famer to cultivate hemp in a “specified facility” for one year. Agriculture Commissioner Sid Miller called the license “just the beginning for industrial hemp” in the state.
“I am happy that I can be the one to deliver it. I know Texas farmers have been eagerly waiting for a chance at these hemp licenses and now the wait is over. … Hemp offers Texas farmers a great new opportunity, but I want them to understand that with every promise of high profit comes the reality of high risk. My job was to get this program started, it’s now up to farmers and processors to build that Texas ‘hempire.’” – Miller in a press release
As part of the process, licensees must watch a 24-minute video that outlines the state’s rules and regulations.
The Texas Department of Agriculture has received a total of 546 industrial hemp applications including 458 producer applications, 58 handler applications, and 30 handler sampler applications.
Texas‘ hemp law was passed last year and includes legalization and regulation of CBD. All hemp-containing edible products produced in the state, including CBD, are regulated by the Department of State Health. The program was approved by the U.S. Department of Agriculture in January.
In all, 14 state hemp programs have been approved, while 17 states are still operating under their 2014 pilot hemp programs, and six state programs are still pending USDA review. Connecticut and Tennessee are listed as having submitted a plan to the agency that required resubmission. Other states not pending review are currently drafting plans, according to agency data. Regulators have also approved 14 tribal hemp production plans and list another 16 as under review.
We caught up with Eric recently to hear how Dama Financial helps cannabis companies access banking services, his take on the challenges that face the cannabis industry during the COVID-19 pandemic, and more. Check out the full interview below!
Ganjapreneur: How does Dama Financial serve cannabis businesses? What type of cannabis business does Dama work with?
Eric Kaufman: Dama Financial works with licensed cannabis businesses from cultivators, to manufacturers, to distributors, to dispensaries to delivery depots, and everything in between. Dama collaborates with the cannabis industry and cannabis-related businesses by providing access to compliant and transparent FDIC-Insured banking. We partner with banks across the US that have made the risk-based decision to bank cannabis. Understanding that they either don’t have the intellectual capital in-house or the wherewithal or desire to manage it themselves, the banks partner with Dama to literally run their cannabis program on their behalf. As Dama Financial is a compliance-first organization, its services for its bank partners includes all compliance on the bank’s behalf, procuring of CRB customers, onboarding the cannabis-related businesses, all ongoing customer service, as well as the development of products. The Premier Business Bank Accounts we manage include access to armored car cash pick up, a 1% interest earning account, the ability to pay employees and bills online via ACH, check or wire, and invoice approved vendors.
Do you think that cannabis retailers were prepared for the sudden surge in demand stemming from shelter-in-place orders due to COVID-19? How is Dama Financial contributing to their success and safety?
I don’t think anyone was prepared for COVID-19, one way or the other. When more and more COVID-19 cases were reported, I think cannabis retailers, like all industries and businesses, were understandably worried. They were happy to see the immediate surge in demand, but concerned that their businesses would be shut down due to ‘shelter in place’ restrictions. And some have, which is unfortunate and for them we have tremendous empathy. But, in states like CA and NY, where cannabis businesses are considered ‘essential businesses,’ retail sales are booming. As such, Dama is seeing increased demand for Paytender.
Paytender is our merchant processing and digital consumer wallet that allows customers to pay with their phones via a linked bank account or a debit card. To accommodate the surge in sales, retailers wanted to make their checkout processes more seamless by offering cash-alternative payment options. Not only is cash inconvenient, it’s inherently dirty. Given current concerns about COVID-19 transmissions, it’s a natural adjustment to move away from paper money, which can reportedly carry the virus for up to 17 days.
Additionally, many dispensaries have closed their in-store operations but ramped up delivery and curbside pickup. Paytender works online and at delivery, which other payment methods do not. States like CO never allowed curbside or delivery before, but now with the new safety regulations, they quickly adapted and are looking to Paytender for help in getting them up and running. With Paytender, Dama provides same-day access to funds and does not require rolling reserves. With same-day settlement, Dama allows retailers immediate access to their funds, which is even better than cash as the funds are banked transparently and compliantly and available for immediate use. In addition to solving logistical problems, Paytender also helps keep the customers and employees safer by implementing contactless payments. No need to transfer money or cards from hand to hand, as it is scan-and-go payments.
What do you think cannabis retailers will learn from the rise in demand resulting from COVID-19?
I think they’ll learn how important transparency really is. Many retailers use workaround solutions, which work until they get shut down. One such solution is accepting credit cards. No credit card company allows cannabis transactions, as it’s against their terms and conditions and such activity will trigger account shutdowns. And, we know from experience that if a retailer does not accept some form of electronic payment then sales drop off by roughly 30%. As such, enabling some form of sustainable and compliant electronic payment solution is integral to a retailer’s long term success. Retailers will also realize the value of having software that can easily function in multiple environments. COVID-19 changed consumer’s purchasing behavior. Many of the successful dispensaries quickly offered curbside pickups or delivery to offer contactless purchasing methods. It’s important choose software that doesn’t constrain you to selling in one place. Paytender can accommodate payments in-store, online, at delivery or curbside pickup.
How do you think COVID-19 will change consumer behavior in the future?
I have to assume consumers will be like myself, uneasy to touch dirty public surfaces, and try to carry as little cash as possible. I think consumers will prefer to purchase cannabis at delivery, through curbside pickup, or drive-through instead of in-store. Overall, contactless payments are not only going to become the new normal, but the expectation, no different than the Starbuck’s app or Apple Pay.
There are many difficulties that come with not being able to use banking services as a cannabis business. For those who are unitiated, can you describe some of the risks and challenges that are faced by cannabis businesses in the current climate?
Any licensed business that is compliant can get a bank account through Dama. But, it definitely is a heavy lift to get approved, because of the fact that we are a compliance first organization. Often, those that don’t want a bank account have been burned so many times that they don’t believe it to be possible. We’ve heard many horror stories of accounts getting shut down and funds suddenly held. But not having a bank account will hinder businesses in the long run. First, having a lot of cash on hand is dirty, inconvenient, unsafe, and expensive. Having a bank account managed by Dama Financial gets you access to armored car cash pickup, which reduces public safety risk, reduces the possibility of theft, improves employee safety, and with funds available next business day you have quick access to your money. Secondly, having the tools from online banking allows for businesses to scale. To be able to invoice vendors, pay bills and employees, and accept payments online is the future of cannabis, and allows higher acceptance to expand vendors and customers. Finally, online banking and contactless payment services are what is expected from every other industry outside of cannabis. Why shouldn’t cannabis be able to operate the same? Customers and partners have come to expect that normalcy, which will allow business to flourish.
What was your career prior to your position at Dama, and how has your past experience helped accelerate the growth and development of Dama?
Prior to Dama I spent roughly 20 years as a sports agent representing mostly NFL players and coaches. Over the years I was incredibly fortunate to have collaborated with professional athletes and coaches including Pete Carroll, Willie McGinest, Adam Vinatieri, and Laila Ali, among others. As a recovering sports agent, I also worked at Bernstein as a financial advisor with a focus on sports and entertainment clients. Sandwiched between my sports career I went to business school at Thunderbird School of Global Management and upon graduation I went to work for Euronet Worldwide, which was co-founded by one of Dama Financial’s co-founders. With a career filled with sales experience in an incredibly competitive industry, coupled with payments and banking industry knowledge, I feel I was well prepared and positioned to play a part in developing and executing Dama’s go-to-market strategy and success. In sales, we’re always competing, as each day, each month and each year are clean slates. It’s the ultimate “what have you done for me lately” role. However, I believe our charge is greater than simply selling a service or a product. We are creating the comprehensive critical financial architecture to empower the cannabis industry to operate as if it were a non-cannabis related industry. We’re providing access to solutions which CRBs desperately need. And, we continue to evolve by creating new products and services by listening to our customers and the industry at large and build solutions for their financial needs, which is both exciting and invigorating.
Thank you, Eric, for taking the time to share your thoughts! You can learn more about Dama Financial at DamaFinancial.com.
An AmericanMarijuana.org survey found cannabis consumers split on whether they stocked up on cannabis products amid the novel coronavirus pandemic, with 51 percent saying they did not stock up compared to 49 percent who did.
Among those who did stock up, 55 percent said it was to help calm them during the “pandemic chaos,” 23 percent said they stocked up out of fear of both the virus and cannabis scarcity, while the remainder said they “didn’t care” about the pandemic they “just wanted to chill out with some weed.” For those who didn’t stock up, 36 percent said they weren’t worried about a potential cannabis shortage, 35 percent said they were prioritizing toilet paper, face masks, and hand sanitizers, and 29 percent said there was no need to stock up on anything.
Two-thirds of respondents surveyed said they had not used more cannabis since the start of the outbreak and more than half (54 percent) said that everything would be “alright” at the end of the pandemic. Just 6 percent said they “didn’t care” about the pandemic, while 40 percent said they were “worried sick.”
The survey also found that food, face masks, hand sanitizers, and toilet paper were all more important than cannabis amid the pandemic; however, 28 percent of those surveyed said they would rather have cannabis than facemasks. Another 5 percent said they would rather have cannabis than food.
The study was conducted on March 24 and included 990 cannabis consumers.
Study co-author Natasha L. Mason said in the report there is “a growing body of evidence” that cannabis’ effects are less prominent in regular cannabis users.
“Although this development of tolerance is quite well established,” she said, “the neurobiological mechanisms underlying it are not.”
“These neurobiological mechanisms are important to elucidate, both in the context of therapeutic use of cannabis-based medications (e.g. deciding on dose in long-term treatment), as well as in the context of public health and safety of cannabis use when performing day-to-day operations (e.g. developing traffic laws).” — Mason, via PsyPost
For occasional users, the researchers noted that cannabis use altered the brain’s reward system circuitry. Chronic cannabis users, meanwhile, did not show specific brain changes or “any cognitive impairment.”
“Cannabis tolerance is not a final, permanent state that is achieved after chronic cannabis use, but rather a temporary state of decreased sensitivity to cannabis exposure that dynamically fluctuates across the spectrum of a full-to-no experience of cannabis effects, depending on the pattern of cannabis use,” Mason told PsyPost.
Massachusetts Gov. Charlie Baker (R) is being sued over his decision to shut down the state’s recreational cannabis sales as part of his coronavirus response. The lawsuit is filed on behalf of five dispensaries and a medical cannabis patient. It seeks a preliminary injunction on the order which would re-open that state’s 43 recreational dispensaries.
“If it continues, this mandatory closure will cause profound and irreparable damage to the nascent adult-use marijuana industry; will deprive Massachusetts residents of safe access to regulated marijuana; and, will make it very difficult or impossible (e.g.,in Nantucket) for certain medical-marijuana users to obtain marijuana legally,” the complaint says.
Baker ordered recreational cannabis shops to close on March 24 as part of a statewide stay-at-home order but he included medical cannabis as “essential services,” which allowed dispensaries to remain open. The governor said recreational sales had to stop, however, because they would potentially draw people from neighboring states where cannabis is not legal and promote the spread of the virus.
“Many of the states around us, in fact I think all of them, have not legalized recreational marijuana. Making those sites available to anybody from the northeast would cut completely against the entire strategy we’re trying to pursue here in Massachusetts to keep people safe. And that’s why they’re nonessential businesses.” – Baker during a press conference via Patch, April 8, 2020
The lawsuit says that Massachusetts‘ recreational cannabis industry employs more than 8,000 people and generates some $13 million in weekly sales. If the injunction is denied, the stores will remain closed until May 4 – the end-date for the stay-at-home order.
The lawsuit argues the closures are a violation of the commerce and equal protection clauses “because, for purposes of combating the outbreak of COVID-19, there is no legitimate or rational basis to distinguish between adult-use and medical marijuana establishments; between adult-use marijuana establishments and liquor stores; between those who frequent such stores; or, between medical marijuana users who frequent adult-use marijuana establishments, and medical marijuana users who only frequent medical marijuana dispensaries.”
In a letter to Baker’s chief legal counsel, Kevin Conroy and Jesse Alderman, attorneys from Foley Hoag LLP – who are not involved in the suit – suggested that the challenge to the commerce clause would be dismissed because cannabis is federally prohibited and that even if that challenge was possible, the U.S. Supreme Court has held that temporary measures, including those taken during a public health emergency, do not violate the clause, according to a Law360 report.
Cannabis Control Commission member Shaleen Title has suggested that recreational shops could re-open to in-state residents only, but Baker voiced concerns about the legality of such a move and industry attorneys told Law360 that plan would be a potential “disaster” for businesses.
From March 23 – the day the stay-at-home order was issued – to April 1, the CCC received more than 1,300 new medical cannabis patient registrations, the Berkshire Eagle reports. The agency also announced on Tuesday that they would allow nonmedical growers to transfer their crops to the medical supply chain.
Baker’s office said they do not comment on pending litigation.
The Iowa dispensaries that shut down without notice last week are closed for good and state regulators anticipate it will take a year or more to get two more online to replace them, Iowa Public Radio reports.
Owen Parker, manager of the Office of Medical CBD for the Iowa Department of Public Health, told IPR that there are no management agreements in the state that allow license transfers and that officials would start from “scratch” to issue new licenses. He said the process would begin soon.
“And then we will award the license to somebody which then is when they would move forward with their buildout. So from beginning to end you can’t really put an exact timetable on it. It’s easy to say a year or more in all reality.” – Parker to IPR
According to the report, Have A Heart Compassionate Care, the operator of the shuttered dispensaries in Council Bluffs and Davenport, ignored the rules of its contract which required the company to give six months’ notice in the event of closure. The two dispensaries represented 40 percent of the state’s total.
MedPharm Iowa – the company that operates the only cultivation site in the state and other dispensaries – had tried to buy the two Have a Heart dispensaries last year but was rebuffed by the Iowa Department of Health, the Quad City Times reports. Lucas Nelson, general manager of MedPharm, indicated the company would “likely” apply for the vacant licenses.
Harvest Health & Recreation Inc., who through a subsidiary provided support services to Have a Heart, told the Times that the company elected to cease its operations after determining the venture was no longer economically feasible. Harvest Health said their subsidiary is terminating its support services agreement with the company following the closures.
Iowa patients now have only three medical cannabis dispensaries operating throughout the state.
According to a Prohibition Partners analysis, the cannabis market in Oceania – which includes New Zealand, Australia, Guam and other surrounding islands – could be worth $1.55 billion by 2024 with medical cannabis sales comprising nearly 40 percent of the market.
The cannabis market intelligence and strategic consultancy firm suggests that Australia would account for 79 percent of the region’s overall market by 2014 due to its larger population and higher household disposable income than New Zealand and the region’s islands.
The report anticipates that over the next five years the region would see a falling reliance on imported cannabis products and the shift to domestic production would lead to a sizeable increase in domestic revenue generated by legalized cannabis.
“The most transformative legislative change is emanating from the Australia Central Territory, Guam, New Zealand and the Northern Mariana Islands – while Australia is committing to further cannabis science research on a federal level.” – Prohibition Partners, The Oceania Cannabis Report: Second Edition
In a statement, Prohibition Partners’ Group Managing Director Stephen Murphy noted that there are now more than 30 publicly listed cannabis companies on the Australian Stock Exchange and that the region is taking steps toward broad legalization.
Murphy points out that Australia was “rocked” by wildfires at the start of 2020 and that the industry “could come to play a major role in helping counteract the economic impact of these wildfire.” He added that since the coronavirus outbreak, Australia’s cannabis stocks have “seen a double-digit fall” but “at present there appears to be no significant disruption to the industry’s production and supply lines.”
The Australian Capital Territory last year passed cannabis law reforms, including removing penalties and fines for low-level possession and allowing residents 18-and-older to grow up to four plants per household and possess up to 50 grams of “dry” cannabis and 150 grams of “wet” cannabis. Adult cannabis use was legalized in Guam last April while medical cannabis has been legal on the island since 2015. In 2018, New Zealand amended its drug laws to allow broader access to medical cannabis and voters will decide whether to legalize recreational cannabis in November.
