Curaleaf Completes Acquisition of Cura Partners

2/04/2020

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Massachusetts-based Curaleaf Holdings Inc., has completed its acquisition of Oregon’s Cura Partners including 53 dispensaries, wholesale business, and Select brand. The deal, initially announced worth $950 million, closed at less than $400 million, according to Oregon Live.

The deal comes on the heels of a $110,000 Oregon Liquor Control Commission fine against Cura for incorrectly labeling more than 180,000 Select vape products as “100 percent cannabis” despite containing “botanically derived terpenes and/or medium-chain triglyceride (MCT) oil as an ingredient.” A lawsuit has also been filed against the company for the claims and mislabeling, which regulators called an internal communication problem rather than an attempt to deceive.

Joseph Lusardi, CEO of Curaleaf, called the deal “a major milestone” in the company’s history, marking “an unprecedented phase of growth” for the firm.

“As we’ve scaled, Curaleaf has pioneered the U.S. cannabis industry, and we’re incredibly excited about the future and our leadership role in it. Our entire organization is focused on accelerating our growth as a combined company with two of the fastest growing cannabis brands in the country.” – Lusardi, in a press release

Cameron Forni, the founder of Select and one of the company’s largest shareholders, will serve as president of the brand.

In 2018, Cura’s sales reached $118 million and was the state’s largest cannabusiness, according to Oregon Live, who note that Cura had conducted a round of layoffs during the holiday season, but the details of those layoffs remain unknown.

The precipitously lower-than-expected closing price comes amid sharp declines in cannabis stocks and lower overall company valuations in the space.

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Sanders Pledges to Legalize Cannabis on First Day as President

2/03/2020

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Vermont Senator and presidential candidate Bernie Sanders (I) pledged over the weekend that, if he is elected, he would legalize cannabis nationwide on his first day as president, Forbes reports.

“We will end the destructive war on drugs. On my first day in office through executive order we will legalize marijuana in every state in this country.” — Vermont Sen. Bernie Sanders, at a campaign rally in Cedar Rapids

Sanders also pledged to expunge cannabis possession arrest records and that the reforms would include social equity elements.

“We will make certain that the legalized marijuana industry is not controlled by a handful of corporations but that those people — the African-American community, the Latino community, the Native American community — those people who have suffered the most will get help in order to make money through a legalized marijuana industry,” he said.

It is not the first time that Sanders has promised to legalize cannabis via executive order — the candidate told podcaster Joe Rogan last August that he planned to end federal cannabis prohibition if elected. In October, the candidate outlined a more specific legalization plan.

Cannabis has emerged as an important issue in the 2020 Democratic Primaries, with most of the race’s progressive candidates having adopted some form of cannabis and/or drug policy reforms as a part of their platform.

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Oregon Company Fined for Mislabeled Cannabis Vapes

2/03/2020

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The Oregon Liquor Control Commission has levied a $110,000 fine on Cura Cannabis – the state’s largest cannabis company – over allegations that the firm incorrectly labeled its Select vape products as 100 percent cannabis but contained “botanically derived terpenes and/or medium-chain triglyceride (MCT) oil as an ingredient,” according to an Oregon Live report.

The settlement between the state and the company includes a $10,000 “dishonest conduct” sanction, which is lieu of a 34-day license suspension. Those botanically derived terpenes were briefly banned by Gov. Kate Brown last fall during the early vaping-related respiratory illness episodes.

Two days after the announcement of the settlement, a Portland couple filed a lawsuit against Cura demanding that the company give up any profits it made from the mislabeled products, according to Willamette Week. State regulators claim that Cura mislabeled more than 180,000 Select vape products. Emails obtained by the Portland Business Journal show the company told the OLCC the mislabeling was an internal communication problem rather than an attempt to deceive.

Michael Fuller, the attorney who filed the suit on behalf of the couple in Multnomah County, said the final judgment against the company could “exceed $37 million including statutory damages.”

The OLCC action and lawsuit come as Massachusetts firm Curaleaf Holdings Inc. is trying to close its all-stock deal to buy Cura. The deal, announced last year, was initially worth nearly $1 billion but, according to Oregon Live, the transaction is now worth about $400 million following sharp declines in cannabis stocks and lower overall company valuations.

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New York State Bar Backs Cannabis Legalization

2/03/2020

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The New York State Bar House of Delegates has approved a resolution in support of adult-use cannabis legalization in the state. The association’s Committee on Cannabis law recommends that the reforms include state taxes, social equity, environmental protections, advertising and marketing regulations, municipal opt-out options, U.S. Department of Agriculture-mandated testing, and the creation of an Office of Cannabis Management.

The report also suggests that state officials would benefit from recruiting the RAND Corporation, a nonprofit global policy think tank, or similar organization to analyze a legalization policy. The association notes that the RAND Corporation has been used by other states looking to legalize adult-use cannabis.

The organization’s opt-out policies suggest that counties or cities that opt-out of cannabis sales would not get a cut of the tax revenues derived from the industry – which is the case in other states that have legalized cannabis. The report points out that the town of North Hempstead in Nassau County has already passed local legislation to prohibit adult-use cannabis sales. The town of Islandia in Suffolk County has promised to sue the state if it legalizes cannabis statewide.

The association recommends that the state look to the six most recent states to legalize cannabis when drafting its social equity provisions and suggests commissioning “an outside research entity like RAND” to help guide those rules.

“We recommend that New York not adopt any specific social equity provisions until this analysis is complete, but that such efforts should not prevent comprehensive regulation of legalized adult-use cannabis.” – New York State Bar Association, in the resolution

The Bar Association suggests that the social equity provisions include business incubator programs, hiring requirements, earmarking of tax revenues for communities most impacted by the War on Drugs, and prohibiting “local or state government from discriminating against licensing applicants on the basis of their substance-use treatment history, or convictions unrelated to honesty.”

The report also backed the American Bar Association’s 2019 resolution calling for cannabis’ removal from the federal Controlled Substances Act.

Gov. Andrew Cuomo (D) has included cannabis legalization as part of his 2021 Executive Budget.

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Cannabis Tax Revenues Fall Short in Canada

2/03/2020

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Cannabis-derived revenues in Canada didn’t meet government expectations during the country’s first fiscal year of legalization, totaling $18 million on estimates of $35 million, the National Post reports. The less-than-expected revenues from 2018-2019 have forced the government to lower their expectations for this fiscal year from $100 million to $66 million.

Officials are still betting on cannabis tax revenues to reach $135 million next year and to $220 million by 2023, according to a House of Commons report.

Finance Minister Bill Morneau’s press secretary, Pierre-Olivier Herbert, defended cannabis legalization despite the lower-than-anticipated revenues, telling the Post that the reforms were meant to ensure there is a safe, legal, market and that the government “implemented a strict legal framework to regulate and restrict access to cannabis” in order to keep it “out of the hands of youth, and profits out of the pockets of criminals and organized crime.”

“Various factors contribute to excise tax revenues including the volume of sales and available supply. Provinces are responsible for distribution, licensing and overseeing the distribution and sale of cannabis.” – Herbert, to the National Post

Ontario made $217 million in cannabis sales during the last fiscal year – the most of any province – followed by Alberta with $196 million and Quebec with $195 million. In all cannabis sales throughout the nation topped $907 million last year, according to the report.

The national rollout of legal cannabis sales didn’t include so-called “alternative” cannabis products, such as edibles and topicals which hit most store shelves in mid-December. The exclusion of those products at the onset likely had a negative impact on first-year sales. Illegal cannabis products were also cheaper than their legal counterparts, according to Statistics Canada which found illegal flower products were about $4 less per gram than in the legal market.

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Berkeley, California Approves Social Cannabis Use

1/31/2020

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The Berkeley, California City Council has approved a measure allowing on-site cannabis consumption at dispensaries that install a ventilation system, according to a Bay City News report. The changes also allow up to seven cannabis delivery services in the city.

In a report to the council, city staff members said the reforms were necessary because cannabis consumption is illegal in public spaces, in many apartments, and at most businesses.

“Providing a place to consume cannabis legally is important for patients who have no other options,” the staff said in the report.

Following the vote, the Berkeley Patients Group, reportedly the oldest dispensary in the nation, thanked the councilors for their “diligence and thoughtfulness” adding that the officials “have shaped the most progressive cannabis regulations in the country.”

In 2018, the city council passed a resolution making it the first cannabis sanctuary city in the U.S., barring local law enforcement officials from working with the federal government to enforce federal cannabis laws. A month after passing the landmark sanctuary legislation, the council reduced its sales tax on cannabis from 10 percent to 5 percent.

“We’d also like to thank the staff, who spent three years researching and developing their prudent recommendations for a post-legalization world.” – Berkeley Patients Group, in a statement, via Bay City News

The measure was opposed by the Berkeley Community Health Commission because of secondary exposure and impaired driving risks. The commission also asserted that public cannabis consumption undermines city smoke-free air policies promotes the normalization of smoking.

California’s legalization law allows social use but the regulations must be approved by municipalities before any on-site consumption can occur. According to a Freedom Leaf report, San Francisco, West Hollywood, Cathedral City, Emeryville, Lompoc, Eureka, and Ukiah also allow social cannabis use; however, at least a third of California cities and towns have barred recreational cannabis operations.

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MedMen CEO Resigns and Gives Up Controlling Shares

1/31/2020

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Adam Bierman, the embattled CEO and co-founder of MedMen Enterprises, is stepping down from his duties starting February 1, Investors Business Daily reports. The company board has named Ryan Lissack, MedMen’s chief operating officer and chief technology officer, as interim CEO.

As part of his resignation, Bierman will also surrender his super-voting shares back to the company, helping to resolve a disputed ownership structure that had put power largely in the hands of Bierman and fellow co-founder Andrew Modlin, which had concerned shareholders. Modlin has also agreed to surrender his own super-voting shares — for now, however, Modlin’s shares have been turned over to executive chairman Ben Rose. Those shares will be officially turned over in December later this year.

“The Board supports both Adam’s decision to step aside for a new CEO to lead the Company, and his and Andrew’s decision to surrender their voting rights to give all shareholders a stronger voice. This evolution will provide Adam the space to contribute to the future of MedMen and extend his commitment to the industry that he has helped pioneer.” — MedMen Executive Chairman Ben Rose, in a press release

Concerns have circulated about the company’s finances and expansion plan since a planned merger with PharmaCann was called off towards the end of last year. Additionally, the firm downsized in November, cutting more than 190 jobs, while it was reported earlier this month that MedMen had started offering to pay vendors in company stock instead of cash. Last week, Bierman hosted an “Ask Me Anything” on Reddit and was beleaguered with difficult questions, many of which were either deflected or left unanswered.

MedMen’s stock value has continually suffered through the past months’ developments, but shares jumped 12% on the news of Bierman’s resignation, according to the report.

“I continue to believe that MedMen is positioned to thrive. It’s time for our next iteration of leadership to capitalize on the opportunity we have created,” Bierman said in a statement. “This has been an incredible journey and I will continue to be inspired by those around the globe working to make our world safer, healthier and happier through access to legal, regulated cannabis.”

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Report: Oregon Has Most Dispensaries Per Capita

1/31/2020

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Oregon has 16.5 cannabis dispensaries per 100,000 people – more per capita than any other state, according to a report by Verilife. Oklahoma ranks second, according to the analysis, with 15.6, followed by Montana (15.1), Colorado (14.1) and Alaska (12.7).

The report found that California made the most from cannabis-derived tax revenues in 2018, raking in $345 million from the industry despite having only 1.6 dispensaries per 100,000 people and with two-thirds of the state’s municipalities banning industry operations.

Washington state also netted more than $300 million in tax revenues from cannabis in 2018 – $319 million total – while hosting 6.2 dispensaries per capita; while Colorado saw $266 million in tax revenues from the industry. Oregon, despite having the most dispensaries per capita, made $94.4 million from cannabis taxes in 2018.

According to the report, Missoula, Montana had 18.1 dispensaries per 50,000 – the most of any city – followed by Medford, Oregon (17), Pueblo, Colorado (16.6), Eugene, Oregon (16.1), and Denver, Colorado (14.9).

“Considering it was among one of the first states to legalize medicinal marijuana, it might not be too surprising that Oregon hosts the most marijuana dispensaries per capita,” the researchers note, adding that there are more than 660 dispensaries located throughout the state.

Oklahoma is a surprising number two on the list, having only legalized medical cannabis in 2018. The state saw $70,000 in cannabis revenues during its first year in operation, the least of any state included in the report.

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Cannabis Reforms Take Effect In Australian Capital Territory

1/31/2020

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The Australian Capital Territory’s cannabis reform laws, which remove criminal penalties and fines for low-level possession and use, are now in effect, the Australian Broadcasting Corporation reports. The law was approved last September despite opposition from the federal government and a United Nations warning that the law violates international drug treaties.

Under the law, Canberrans 18-and-older can grow up to two cannabis plants in their homes, up to four plants total per household, and possess up to 150 grams of “wet” cannabis or 50 grams of “dry” cannabis. Plants must be grown in a garden or pot – not hydroponically – but individuals may not give, share, or sell the plants or seeds. There is no legal way to obtain the seeds in Australia.

“If you have some marijuana or you have a plant, someone, at some time, committed a criminal offence. You didn’t get the seeds from divine intervention, and whoever gave them to you committed the offense of trafficking.” – Michael Kukulies-Smith, chair of the ACT Law Society’s criminal law committee, to ABC

The law does not allow any sharing or gifting and that includes simply sharing a joint, which remains a crime of supplying a prohibited substance and carries a maximum penalty of A$80,000 and up to five years in jail.

Kukulies-Smith noted that ACT Police still have the authority to make arrests in the region under federal laws, which still prohibit cannabis possession and use. He said that citizens “don’t really have any understanding of how the police’s top brass” will handle the situation.

“Individual police officers are going to have a lot of discretion, unfortunately,” he said in the report. “If you have no prior convictions and aren’t usually in trouble with the police, you’ve very unlikely to get into trouble. But if you have priors or you upset an officer, they might decide to use Commonwealth law instead.”

The ACT is the first region in Australia to legalize cannabis in any form. Prior to the reforms, any adults caught with a plant in the territory would have been subject to a A$160 fine.

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Cannabolish Odor Eliminating Candle & Sprays

1/31/2020

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Cannabolish‘s parent company, OMI Industries, is no stranger to the cannabis industry. In fact, the chemist who developed these products has made other cannabis smell absorbing products for OMI Industries including ECOSORB CNB 100 which is commonly used in grow rooms. Cannabolish candles and sprays aren’t like all of the other aromatic candles found at the store, they use eco-friendly ingredients to destroy odor molecules, not just cover them up.

There are some very positive points to note about Cannabolish, including the fact that these products are safe for the earth. Many smell absorbent products use harsh volatile organic compounds (VOCs) and chemicals, but Cannabolish doesn’t. These products are completely natural. On top of that, the packaging and design of the sprays and candles fit nicely into a home with a modern design. The candles are green votives with chestnut-colored labels and lids. The sprays match that scheme with green opaque glass bottles and brown paper labels. But the real magic is what happens when Cannabolish meets cannabis odor molecules. 

The chemist behind the product, Dr. Laura Haupert, explained how the spray works in a recent Forbes article with Warren Bobrow: the odor molecule is adsorbed first when it meets Cannabolish. Adsorption is the same process as when a dye takes to a piece of cloth. Then, the molecule is absorbed into the Cannabolish droplets in the air and, in this phase, the ambiance odor is considered controlled. 

After a month of using the Cannabolish line, we can definitely agree that the product works. The aroma of the candle emanating in the room is fresh and minty with a bit of earthiness, a very pleasant smell even if you’re not trying to cover up the remnants of a good sesh. The candle is a great thing to leave behind for a bit after lighting up a joint. 

As for the sprays, the scent of the mist definitely neutralizes the cannabis aroma. The smaller sized bottle is a great option to keep in the car. I pulled over and toked a little bit of a joint an hour or so before picking up a couple of people that I carpool with. After smoking and before picking them up I spritzed the car with Cannabolish. Once I picked them up nobody said anything about the skunk smell, so I asked if they could smell anything. The answer? Not even a little bit. Based on a month of using the Cannabolish suite of products, experience shows that they really do work. 

The Cannabolish product line is beautiful to look at and since it actually works, Ganjapreneur would recommend the candle and the spray for any cannabis consumer who is looking to stay aromatically under the radar.

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Judge Rules Company Must Forfeit Confiscated Hemp

1/30/2020

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An Idaho judge has ruled that Colorado-based Big Sky Scientific must forfeit the 6,701 pounds of hemp seized by Idaho State Police last year as it was being transported from Oregon to Colorado, KTVB7 reports.

The incident occurred last February when the driver, who works for IYI Trucking and neither Big Sky nor Oregon-based Boones Ferry Berry Farms, stopped at a weigh station near Boise for an inspection by state police. After officers found the hemp, they arrested the driver and charged him with felony drug charges; ultimately, he pled guilty to a lesser misdemeanor charge of carrying an improperly permitted load including faulty bill of lading. Following his initial arrest, the state police said that despite the bill of lading indicating the cargo was industrial hemp “the trooper’s training and experience made him suspicious that the cargo was in fact marijuana.”

Fourth District Judge Jonathan Medema ruled that hemp is still a controlled substance under state law – despite federal laws – writing in his memo that “it is a crime (in Idaho) to possess any plant with that genus, unless one possesses only the mature stalks of the plant.”

The ruling comes from a lawsuit by Big Sky against the Idaho State Police. The company said in September that they were willing to drop the suit if the hemp, valued at $1.3 million, was returned. Big Sky’s attorney, Elijah Watkins, told KTVB that he was evaluating the judge’s decision before deciding whether or not to file an appeal or see if there are any pieces of the case that could be considered by the state Supreme Court.

According to the report, at least three out-of-state truckers have been arrested transporting hemp through Idaho since federal legalization in 2018. In November, Republican Gov. Brad Little signed an executive order to allow hemp transport through the state. The executive order does not allow hemp production and requires the Idaho State Department of Agriculture, Idaho State Police, and Idaho Transportation Department to come up with temporary rules and work cooperatively to carry out the order.

State lawmakers are considering hemp legalization legislation.

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Indiana Aims to Block Local Cannabis Decriminalization

1/30/2020

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Indiana Republicans have passed a bill out of committee that would allow the state to step in and enforce cannabis laws if local prosecutors choose not to, or if a citizen vote was held to not enforce a particular law, the Associated Press reports. The move appears to be in response to a decision by Marion County prosecutor Ryan Mears, who announced his office would not prosecute small amounts of cannabis possession, and a Northwest Indiana county which considered writing tickets for possessing an ounce or less of cannabis instead of making an arrest.

The proposal would allow the Attorney General to appoint a “special prosecutor” to intervene in local cases. The bill was passed out of committee on a vote of 6 to 3 and now heads to the Indiana Senate.

The author of the bill, Michael Young (R), says the proposal will also force local prosecutors to try trespassing, disorderly conduct or prostitution not just cannabis,  pointing to Boston and San Francisco as examples of the current “social justice” movement sweeping the country.

“It’s because of the social justice prosecution phenomena that’s going on throughout the country. I wanted to try to head it off in Indiana.” — Young, via the AP

Cannabis arrests in Indiana recently hit the Presidential campaign as former South Bend Mayor Pete Buttigieg moved up in the Democratic Presidential Primary polls.

The Intercept reported last year while covering the Democratic primary that Indiana arrests African Americans for cannabis at a rate 3.5 times higher than their white counterparts. The report went further and shined a light on Pete Buttigieg’s record as mayor of South Bend, where African Americans were 4.3 times more likely to be arrested for cannabis than whites living in the city during his term.

 

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91-lb Cannabis Possession Case Dropped Due to Hemp Laws

1/30/2020

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An Ohio man caught with 91 pounds of what is suspected to be THC-rich cannabis was acquitted of drug charges due to hemp legalization in the state, according to a News 5 report.

Cleveland Metropolitan Bar Association President Ian Friedman, the defense attorney in the case, said that the prosecution’s test for just “the presence of THC” was insufficient because the state’s hemp law allows industrial hemp to contain 0.3 percent THC and the tests did not show THC levels.

“If you don’t get the concentration correct, you’re not going to be able to establish what it is,” Friedman said in the report, adding that it would be dangerous for prosecutors to convict someone without proving that the substance was, in fact, illegal.

“The precedent that they set carries forward on all sorts of cases, right? So, you want to make sure that you’re holding the state to its burden.” – Friedman, to News 5

In August, state Attorney General David Yost warned prosecutors that the legislative changes made quantitative analyses “necessary to ensure the THC content exceeds the statutory 0.3 percent level. In that memo, Yost said that law enforcement agencies should “suspend any identification” of cannabis testing in local jurisdictions because those methods “do not quantify THC content,” and not to “indict any cannabis-related items” prior to crime laboratories being able to perform the concentration tests.

Yost’s office has announced a $50,000 grant for agencies to send cannabis samples to out-of-state labs that can perform the testing and that $1,820 has been used from that grant.

On Monday, Rocky River police told News 5 that Cleveland Browns running back Kareem Hunt was not cited for cannabis possession last week due to Ohio‘s hemp legalization laws. In a statement, the Rocky River Police Department said that the law changes “have created challenges in prosecuting marijuana possession offenses” and that many municipalities are not issuing citations for low-level possession as a result of the reforms.

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Buffalo Law School Offering Cannabis Course

1/30/2020

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New York’s University of Buffalo School of Law this month offered its first legal cannabis industry bridge course –  “The Green Rush” – aimed at compliance and other legal issues in the cannabis space, according to a UBNow report.

The course is being co-taught by UB Law alumni Aleece Burgio, head of Barclay Damon’s multidisciplinary cannabis practice team, and Lee Williams corporate counsel at the Dent Neurologic Institute and supervisor of the Dent Cannabis Clinic’s legal and compliance program. According to the report, the Dent clinic has certified more than 10,000 medical cannabis patients in New York.

The course covers the history of the plant, the science, how it is regulated by federal, state and local governments, criminal law, social equity, CBD, Internal Revenue Service code 280E, real estate, elder law, employment, banking and finance, international law; and how medical cannabis programs have been managed.

“The war on drugs made it taboo to talk about marijuana. But now it’s a real business, it’s a career for a lot of lawyers, and it’s something that’s going to blossom. And in New York, we’re right on the edge.” – Burgio, to UBNow

Burgio, whose first job out of law school was for a boutique law firm in Portland, Oregon helping cannabis startups, said that a lot of employers are looking to build cannabis-focused practices and having the background in legal cannabis law issues gives newly-minted lawyers “a foothold.”

“If a young attorney offers to be the person who takes an interest in it, that really helps,” she said in the report. “There is opportunity for you to grow in New York as an attorney, and if you can stay on top of these ever-changing regulations, you can really do well.”

According to the university’s course catalog, the one-credit course had 38 of 40 students enrolled and ran through January.

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Leafly Lays Off 18% of Its Workforce

1/29/2020

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Cannabis media company Leafly has cut 18 percent of its workforce, laying off a total of 54 employees, according to a GeekWire report. In a statement, CEO Tim Leslie said the move was an effort by the company to more “closely align [its] business operations with the market realities of the technology and cannabis sectors.”

“Today is a hard day at Leafly. We wish our colleagues the best as they pursue the next steps in their careers. We look ahead to continued innovation in service of our customers and the cannabis industry.” – Leslie, in a statement, via GeekWire

Leslie joined the company in March following the removal of former CEO Chris Jeffery. He previously served as an executive for Amazon Prime Video. Late last year, Leslie indicated Leafly would be slowing down its hiring and limiting spending; according to the report, the company hired 150 new employees last year, which doubled the firm’s size. It has been operating independently since February after being spun off by Privateer Holdings.

Leslie pointed out that the company was coming off “a banner year for innovation” in 2019 when they launched the Leafly Cannabis Guide and Leafly Market and expanded its Leafly Pickup service.

“In 2020, you can expect Leafly to deliver even more innovation in helping people learn about, find and buy cannabis while empowering the businesses of retailers, doctors, and brands,” Leslie said in the statement.

Leafly is the latest cannabis media company to initiate layoffs. Last year, all 16 of cannabis lifestyle magazine Civilized’s workers were laid off after the company was acquired by cannabis analytics company New Frontier Data. High Times also fired the entire DOPE magazine staff based in Seattle, although some of those employees were offered positions at High Times’ Los Angeles, California office. High Times had laid off more than a dozen employees in 2018.

Cannabis delivery company Eaze also laid off about 30 people last summer and is reportedly preparing for more layoffs as it faces a cash crunch.

Some cannabis producers are also laying off staff, including Medmen Enterprises, a U.S. operator which cut more than 190 jobs in November, and Canadian licensed producer Hexo Corp. which fired about 200 workers in October.

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Legalization Bill Passes New Mexico Senate Committee

1/29/2020

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A cannabis legalization bill has passed New Mexico’s Senate Public Affairs Committee by a slim 4-3 vote along party lines, the Associated Press reports. In addition to legalizing cannabis for adults, the measure would provide subsidies for low-income medical cannabis patients, expunge low-level cannabis convictions, and would not allow municipalities to prohibit cannabis operations.

Democratic Gov. Michelle Lujan Grisham called for the reforms prior to the start of the state’s legislative session, saying that the industry would create 11,000 new jobs and “generate hundreds of millions of dollars” in tax revenues for the state.

In October, the Marijuana Legalization Work Group – created for and appointed by Grisham – released its report on potential legalization in New Mexico, estimating cannabis derived tax revenues would reach $63 million in new state and local taxes following year one and nearly $94 million by year five.

The proposal includes home grow provisions and sets the excise tax rate at 9 percent breaking with the task force recommendations that did not support home grows and proposed a 17 percent tax rate. The bill caps municipal and county taxes at 4 percent each.

The measure also allows for social use at licensed cannabis dispensaries.

The bill moves next to the Senate Judiciary Committee, chaired by Sen. Joseph Cervantes, a moderate Democrat who in 2015 voted against a measure to allow voters to decide whether to legalize cannabis and, during his 2018 campaign for governor, said the state didn’t have the infrastructure for legalization.

Last year the House approved a legalization measure that would have allowed cannabis sales through state-run dispensaries but that bill died in the Senate.

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Report: Cannabis Sales Up Among Boomers, Gen Z

1/29/2020

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According to cannabis delivery company Eaze’s 2019 State of Cannabis Report, the company saw a 74 percent increase in first-time deliveries and customers aged 50-and-older on the platform increased 105 percent, suggesting that California is seeing an uptick in new consumers and the “canna-curious.”

The number of women using the platform grew 81 percent from 2018, according to the report, and now represent 40 percent of Eaze users, and were more likely to purchase edibles, pre-rolls, topicals, and tinctures than men.

The number of Generation Z consumers increased 144 percent – the most of any demographic – and the generation’s interest in tinctures increased 96 percent on the platform over the year prior.

The company reported the most sales on the platform on April 20 – or the 4/20 holiday – followed by Green Wednesday (the day before Thanksgiving), Labor Day weekend, Memorial Day weekend, and the weekend of the Outside Lands music festival. Interestingly, cannabis was sold at the San Francisco festival, where sales topped $1 million.

Vape sales on the platform fell in 2019, likely due to the vaping-associated pulmonary illness than led to thousands of hospitalizations and dozens of deaths throughout the U.S; however, the substance linked to the illness – vitamin E acetate – was not found in regulated California products and was primarily relegated to illicit market vape products.

“Prior to August 2019, vapes were responsible for an average of 33 percent of total vapes purchased on the Eaze platform; this dropped by 15 percent to 28 percent of total sales in October and November. This trend was accompanied by a 24 percent increase in edible sales, which prior to August accounted for an average of 17 percent of total Eaze sales; edible purchases increased to 24 percent in October and 25 percent in November.” — Eaze Insights, 2019 State of Cannabis

The trend could be explained by both the discreet nature of edible and vape products. Ultimately, the company found that vapes were responsible for 32 percent of units sold while flower was 25 percent.

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Benjamin Jesse: Celebrating Australia’s Cannabis Industry

1/28/2020

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For the latest Ganjapreneur.com Podcast episode, Benjamin recently joined our host TG Branfalt to talk about Australia’s cannabis progress in recent years. In this interview, Benjamin explains why it was important for him to launch the Australian Cannabis Industry Awards early on into the industry’s lifespan, what the legalization process in Australia is likely to look like, and more!

Check out the interview via the player below, or scroll down to read a full transcript of this week’s Ganjapreneur.com Podcast episode.

Listen to the interview:

Read the transcript:

Commercial: This episode of The Ganjapreneur Podcast is made possible by 420-friendly service providers in the Ganjapreneur Business Directory. If you need professional help with your business, from accounting, to legal services to consulting, marketing, payment processing, or insurance, visit ganjapreneur.com/businesses to find service providers who specialize in helping cannabis entrepreneurs like you. Visit the Ganjapreneur Business Directory today at ganjapreneur.com/businesses.

TG Branfalt: Hey there, I’m your host TG Branfalt and thank you for listening to the Ganjapreneur.com podcast where we try to bring you actionable information and normalize cannabis, through the stories of Ganjapreneurs, activists and industry stakeholders. Today, it’s the very early morning for him, I’m joined by Benjamin Jesse, he’s the founder of the Australian Cannabis Industry Awards. Which celebrates the nation’s activists, business leaders and community trailblazers. They held their inaugural event this year. How are you doing this… ? What, 1:00 AM for you?

Benjamin Jesse: Well, it’s actually a little bit later than that. It’s 3:00 AM here, Tim. But yeah, I’m doing really well. It’s really nice to connect and I’ve been a long time listener and it’s really good to be on the show.

TG Branfalt: I appreciate that. I appreciate that. Did you wake up for this or did you just not go to sleep?

Benjamin Jesse: I didn’t go to asleep yet, but that’s okay. It’s a common thing, if your caught making international calls in Australia your sort of not just upside down on the world, your upside down on the club too.

TG Branfalt: How long have you been in the industry and how’d you end up launching the Cannabis Industry Awards, man. What’s your background?

Benjamin Jesse: Yeah. Well, I first fell in love with cannabis about seven or eight years ago now. It’s not very long compared to many people in the industry. It was all the reasons once to be honest, it was quite the conversion. I have a form of spinal arthritis, which CBD made a huge difference for. But, it was also all the other reasons at the same time. Yeah, I loved how it open my mind and connected the dots of life. Made me feel a bit more like me. You know what it’s like.

I guess you’d call it therapeutic or spiritual benefits, back seven or eight years ago. Then to top it off, I went in deep learning about all the eco and sustainable benefits. It’s many other medical uses of course, and you know, the endocannabinoid system, et cetera. So yeah, I just learned as much as I could… I really could get my hands on. About it’s history and, yeah. Prohibition and stigma, and the activist community over here, and I just put my weight behind it all. There’s a bit of a no brainer to do the awards as well, I’m a passionate kind of person and it was something that had changed my life, and I wanted to help it change others’ as well. So, yeah.

TG Branfalt: Tell me about Australia’s cannabis industry. Who are the major players? Is it like the U.S.’ where you have a lot of small companies because of federally illegalization? What’s going on?

Benjamin Jesse: Well, Australia’s cannabis industry, it’s quite complicated. It feels very similar to the way that the U.S works. I mean, the main players I guess in terms of business wise, we’ve got quite a lot of amazing advocacy groups and public figures pushing for cannabis reforms in Australia. There’s about a dozen groups from different segments of the community. It doesn’t seem quite as strong as the U.S as compared to things like normal, that group and so on that I hear about everyday, but it’s more of a community push in Australia with large groups of users and compassionate supplies such as the MCUA which is the Medical Cannabis Users Association. The HEMP Party, standing for, Help End Marijuana Prohibition and a few others.

Yeah, these groups have been around for decades. They mostly get ignored by politicians and hassled by police, but yeah. We’ve also got the Australian Greens Party. They’ve shown some pretty effective leadership over here and push for legalization for a few years now. I think, actually the group which has found the most support and I would say arguably is affected the most change in Australia, is a group called United in Compassion. There are only a few years old, but they seem to be finding the right balance of organization and action, like to be listened to by those in power, I guess?

They really bring together many of the other groups who were already existing for years with a clear message. And I guess most importantly, they don’t look like hippies, certain politicians actually listened to them, if you know what I mean. But we also have some incredible groups of carers and suppliers that have been here on the front lines of cannabis reform, like education. They’re really doing well for educating and saving lives really for decades, and it’s these people that the awards are really specifically interested in celebrating.

We’ve actually divided the awards into two main categories, business and community. The community section we have awards such as activist of the year, lifetime achievement award, artist, stigma award. Women of weed award, education award, and those sorts of things, and the business probably a little bit more predictable I guess. Innovation award, business of the year, packaging of the year, doctor of the year, column writer of the year. The Green Award, which is a sustainability award. So yeah, obviously we’ve had provisions for the same amount of time in the U.S, because we pretty much just took it on board when the U.S did. So thanks for that.

TG Branfalt: Where do patients actually get medical cannabis in the country, is it in pharmacies? You know, out here we have dispensaries that are privately owned by and large, what’s the process like for patients?

Benjamin Jesse: Yeah, they are… I mean, I think the best answer to that, up until the last few months has been that they don’t. They don’t get the medicine. Unfortunately, a lot of the legalization that happened over here was really strict. The laws which had passed and the stipulations that the patients had to follow to be able to get medicine was pretty much. Oh, and the supply as well itself. The actual number of products which were available on the market were close to zero. We’re talking about over the course of a year or two, we had in any order of hundreds of patients annually.

It was a huge, big, long process just to get the actual medicines. Until recently, that’s been pretty much the way that it’s happened. Unfortunately as I say, the legalization has really been very much of a too strict and too controlled. Just to answer the question a little bit more specifically, what happens is it’s, patients need to go to a doctor. They need to get a special a form and process filled out by the doctor, which is quite tedious and hard to do, following this specific number of conditions. Then they get a chosen medicine, which isn’t… it’s not like they can do their own brand and stuff, there has really only been access to a couple of very specifically targeted brands I guess.

TG Branfalt: In the reporting that I do, do on Australia, it seems to me that the federal government supports research, and there are some bio pharma companies that are doing some of that research. Is that a fair characterization?

Benjamin Jesse: Not really. Look, I think the government’s put recently in the last two months, put about $3 million into research. They’ve gone, for the first time, gone ahead with actually sponsoring specific research into finding the benefits of cannabis. But it’s really only a recent phenomenon. There’s been a bit of movement recently, but it’s mostly… before that for the last 90 years, it’s just been hand-waving. They’ve been claiming that more research is needed and they’ve done that for decades, but really they haven’t done anything.

It’s really been one of the biggest thing that is holding it up because they don’t want to change any laws until there’s enough research done. But yeah, which is… it just doesn’t make any sense for, especially when you’re talking about just continuing prohibition without actually having any of that support, I guess.

TG Branfalt: So it doesn’t seem to me, from what you’re saying, that there’s any support for federal legalization, recreationally, despite the budgetary office found that it’d be worth like 2 billion annually for the Australian government.

Benjamin Jesse: Yeah, it’s a great point. It’s actually 3.5 billion annually for the latest data. I’ll tell you why as well, Tim. It’s fascinating. Look, we have a very conservative government in power in Australia, which might be a little bit counter intuitive for the rest of the world. But, we’re heavily influenced by corporate interest and entrenched lobbyists, it’s really well known over here. The conservative government has been in power for six years already, and just in July, passed, there’s one another three years in power, which was actually not expecting to happen, but. Yeah.

So most people agree that it just seems that they’ve changed their mind recently because they’ve really only realized that they can make money off it, and generate jobs, which looks good in elections, obviously. It’s been clear that they don’t really care about patients and activists unfortunately, which, you know, they’ve been telling them about the medical properties for years. There’s been reports from Senate committees and scientists for years telling them all about why they need to decriminalize at least, but they don’t budge. They actually still tried out all in the same reef and madness claims from the 70s and regularly show how little they know.

They even say… Like the health minister and things like that, will say phrases like, ‘smoking the leaf.’ And all of the all, you know, just really, really, really stigmatized ways of saying cannabis, and it’s a shame that any legalization taught recently by the government has got to be for the reasons of… a lot of Australia talks about, our government just being corporate based and so on. It’s quite contrary to the rest of the Australian population to be honest, and that’s not… it’s pretty well accepted as well.

The conservative government obviously represents the people because they were voted in, but on the issue of cannabis, it’s one of those things that they really do not represent the country on. As an example, we were actually the last country in the world to legalize hemp for food. That was only in 2017, so up until then we weren’t allowed to put hemp in any sorts of food at all. We were the last ones in the world. Let alone-

TG Branfalt: And you’re not talking CBD, you’re talking hemp seeds?

Benjamin Jesse: No, just hemp seeds. Yeah, hemp seeds or hemp oil. But-

TG Branfalt: Oh, shit.

Benjamin Jesse: Yeah, absolutely, it was illegal over here to do that until 2017. Let alone medical or… I don’t use cannabis. That’s how bad the government stigma is about it. Over 90% of the population in Australia has supported cannabis for more than a decade, but the government has only really recently passed medical laws. Really recently, I mean. They’ve been very strict and barely successful.

Unfortunately, we had a bit of state legalization for medicinal cannabis as well, but that’s being bogged down and barely useful for access. The number of-

TG Branfalt: And when you say, which state?

Benjamin Jesse: Melbourne was one of the first ones over here to make quite a bit of progress with that and there’s been local decriminalization of cannabis as well for certain quantities. So South Australia and a few others had small levels of decriminalization and so on. But once again, most of the state changes until very recently, have been mostly just on paper, if you know what I mean. Yeah.

TG Branfalt: What are the penalties for say, possessing an ounce?

Benjamin Jesse: It’s obviously different across the states. I mean we still have many, many people, a large proportion of the prison population is for non-violent drug offenses. 80% of those, just like in the States, it’s about 80% is for possession, like small quantities really, we are not talking about trafficking and those sorts of things. But in New South Wales for example, which is the most populated state, we have for the last, I think it’s about five or so years, we’ve had a police three-warning system. Where if you were caught with small quantities they would give you warnings before they gave you a criminal record. But that just depends on the police and the time and so on.

So it’s still very much a criminal offense over here, which I guess is a bit ironic, seeing as we’re a convict settlement. Australia, you know, was set up by criminals and-

TG Branfalt: Is that true? I always thought that was like a legend.

Benjamin Jesse: No, no that’s true. Yeah, it’s actually very fascinating Tim. We were very much a convict settlement from the UK set up originally. And this might shock you, but we were set up originally for a few reasons, but one of the main reasons was as a hemp colony. There’s quite a lot of history on this, which I’ve read up on, and it shows that we really were basically as an outpost. Somewhere to send all the prisoners but also to start ma…

Basically, obviously prisoners at the time were slaves. Basically they worked, they produce, they built half of the things in Australia back in the day. They essentially used them to create huge hemp crops to make ropes, and fiber, and fabrics and so on. So it was, yeah. It’s quite an ironic story.

TG Branfalt: Well, I mean this is very fascinating in the sense that, if you look back on American history as well, and you had mentioned the brief parallel between, or at least the US export of prohibition. But, Thomas Jefferson famously had a hemp farm. The declaration of independence is famously written on hemp paper. Then we get the prohibition and now it seems to me that we’re a bit more progressive in terms of this the Federalist system, because the States can basically do what they want. It seems that like that sort of happens in Australia as well.

Benjamin Jesse: It does, it does. It happens for most things. We definitely have the state-based laws for a lot of things. Although it’s not strictly adhere to that often. I mean it depends on the issue, but the States just mostly are pretty well agreed across most of the bigger issues, I guess. We don’t have as wide as it seems a variety of state-based laws, I suppose. We’re a very cohesive country, you know, we do have the disparities across a few of the further States. One state might be a little bit more conservative than the other, but we tend to have very similar federal laws.

TG Branfalt: I mean recently, and we can talk about the capital territory where they had basically allowed, I think it’s, you know… What is it? Two plants or something, residents there could grow a couple of plants, decriminalization of possession. Then, the attorney general comes out and basically says, this law doesn’t have any effect because of Commonwealth laws. The feds at large though say that they’re not going to challenge it. Can you sort of provide a little clearer picture of what happened or will happen in the ACT, and what the response do you think will probably be?

Benjamin Jesse: Absolutely. Yeah. The ACT, the Australian Capital Territory is sort of like Washington DC, they have only literally just passed the first adult use laws in Australia for 90 years. It allows as you said, two plants and 50 grams of flour, and there is still no sales allowed, or gifting, or anything like that. But yeah, the legalization in the ACT has really been exciting for the cannabis supporters in Australia. Although the ACT itself has less than 2% of the population. It’s very symbolic, it could be a big symbolic move going forward.

The ACT could well just be the Guinea pig for some of the other States to follow, particularly Victoria and South Australia, which would probably be next. And there are about 35% of Australia’s population. Considering we do have a very conservative government in power for at least three more years, state legalization may be the way it happens. A lot of people will take that, it just depends on the next government after this three years I suppose. The federal government has threatened to overturn the change in the law. They’re sending mixed messages though. So whilst you say they won’t challenge it, they still are threatening to change it before it becomes legal in January.

But, it’s just hard to tell if they’re just making some noise to be seen. They seem to be threatening in the moment. The state government is actually threatening them back and saying, “Don’t you dare change it, and you can’t change it.” Those sorts of things. The federal government has actually overwritten state laws in the past, such as abortion and gay marriage, so it’s not out of the question. Definitely not out of the question. I guess we just have to wait and see really until January. If it takes over in January and nothing’s happened, that’ll be exciting.

It’s really exciting nonetheless. It’s just one of those necessary steps in legalization. If it gets overturned, fine. You know, it’s going to, but it would because such a fuss and it’ll be the catalyst for a lot of other things. So I guess, we’ll see how it goes. Well, were just going to wait and see, really.

TG Branfalt: So here… I mean the U.S I’m sure everyone knows how our stupid political system works, but it’s a two-party system essentially, a one-party system if you will. The Democrats, they give lip service to sort of, you know, “Oh, we would legalize… ” I mean Bernie Sanders for example, right? He’s been on the campaign trail lately, just saying, “I’ll legalize within a hundred days.” Is there a candidate or anybody in Australia who could rise to a position of federal power that has that advocacy for cannabis, or is that completely not on anyone’s radar federally?

Benjamin Jesse: No, not really like that. No. The system over here is a little bit different, we still have the two party system, so we’ve got the conservative and liberal. It’s actually a bit strange because over here our liberal party is actually the conservative party.

TG Branfalt: Strange.

Benjamin Jesse: So yes, it’s really hard to discuss it for overseas people, because we’ve lost the meaning of the word liberal over here, it means conservative. So I won’t use that word, I’ll just describe it another way. But yeah, our conservative party is basically a absolutely no go on legalization. As I say, they talk about the recent madness stuff. The other party, the more liberal party, as you’d call the Democrats, I suppose. They are more supportive of it and that has been mentioned prior to this legalization that they want to support it more. But it’s nothing like the Bernie Sanders, or a couple of your other candidates who if they do actually get the nomination would change everything.

The closest that I think we have is our Greens Party, which the way our system works is that, if the votes are pretty even and they have a balance of power and they need to make a deal with the government at the time, they can put forward things. And they do, they put a lot of pressure on things like cannabis legalization if they get that say on things. But that’s usually just a concession, it’s not so much a chance of being empowered. Often, people would say, “Oh, we might still be another two or three governments away from federal legalization.” Just because we don’t have a leader who would say anything like that at the moment, unfortunately.

TG Branfalt: Does the U.S policy affect Australian policy? Or is there another sort of, you know, is it the UK, or… Because you had said that the U.S. gave you guys prohibition, if the U.S were to legalize for example, would that maybe nudge the feds in the right direction. Or UK for example, which is even less likely?

Benjamin Jesse: Yeah. Personally I think so. I think if the U.S. or even the narcotics Act and so on, I think we tend to look up to the big brothers here in Australia. Like if something happens overseas, we do tend to give it a lot of influence. But at the same time, having said that, I mean you’ve handed over the stigma as well as the prohibition, if you know what I mean. So people, especially those who have been trotting out the same message for so long, who believe there a message about all of the stigma of it. So it’s one of those problems that exists regardless, just because people are so stigmatized by it.

Which is quite funny when you know a bit more about Australian culture, to be honest, because we… Like, especially when you’re talking about alcohol in Australia, it’s a very funny dichotomy if you compare the two, because we have such a strong alcohol culture in Australia. It’s actually, it’s almost a rite of passage for our prime ministers to be seen drinking a beer at the football and the local pubs, and with everyday all these, like it really is. It’s a photo opportunity that happens every single time a new prime minister comes in. In fact it’s…

One of our most popular prime ministers, maybe the most popular prime minister Bob Hawke. He set a world record for sculling 2.5 pints of beer in 11 seconds. There’s even a brewing company named after him, and a very popular lager, the Bob Hawke lager. Yeah. It’s quite remarkable compared to the cannabis industry. It’s funny because, like Bob Hawke himself said in his memoirs that he thinks that the single biggest reason for his political success, the fact that he skulls a beer at the football. Every time he goes to the football now, the older crowd around him chants and sheers for him to skull a football. And we know that alcohol is killing 6,000 people in Australia every year, from alcohol related diseases and poisoning. Yet when it comes to the far less dangerous substance, cannabis, which has never killed a single person, the government is so superstitious and afraid.

Many people were refer to the Australian government as a ‘nanny state.’ If you’ve heard the phrase before, because we have a very overbearing and protective government from media censorship laws, to lock out, public drinking laws, to police power laws, to protesting laws, all sorts. It’s no wonder that they have like a blanket nanny state prohibition still on. Your listeners probably are an aware or didn’t hear about the last month in the newspapers in Australia, all of the newspapers, like all of the newspapers in Australia published the same front page. Which was just a completely blacked out page with a small text saying that Australia’s government is hiding and censoring information from the public, that is important to know. And they can’t legally talk about it. That’s not just one topic, it’s dozens, dozens of different topics that they’ve barred from talking about].

TG Branfalt: Oh, shit.

Benjamin Jesse: Yeah, it’s a big deal and that carries across as well to the same sort of nanny state that we get, other than other bits and pieces. We’re very heavily controlled, whistle blowers, and activists they’re all treated very harsh. It’s no wonder that we have this enemy set up of cannabis, it really fills that role well for them.

TG Branfalt: So I mean, it sounds like the chance to put together this awards is… I mean, it didn’t strike me at first like activism, but in a sense when you live under this sort of… It sounds a little more oppressive than the U.S. government, which I have my own issues with.

Benjamin Jesse: I know you’d be… If you found out more about the Australian government Tim, I know that you would be on the side of pulling your hair out, at least, that’s for sure.

TG Branfalt: Was that one of the things you were trying to do at the time was to sort of bring it above the whisper?

Benjamin Jesse: Yeah, absolutely. Yeah. Look, it’s definitely one of the main motivators of the awards itself. I mean, we… I guess probably it’d be easier to answer the question just to go back at why I originally, why the group of friends that started it with actually did start it. My history with cannabis has, when I first learned about it, as I mentioned at the start, I sort of wanted to help out the cause and bring attention and awareness to it. I created these videos, educational videos and I spent a lot of time thinking, “Well, what else can I do? How can I make the stigma less and how can I support the industry, and bring a bit more,” sorry, excuse me, “attention to some of the activists.” And the businesses over in Australia who were doing the right thing, and who are being oppressed and so on.

It was one of those thoughts of, “well, hang on,” A legitimate industry, every legitimate industry needs an award ceremony, and not only that, but it’s also about bringing the recognition of companies and activists to the public to show them that we really are trying to make this much more above ground, and spoken about. We’re going from the black market, to the supermarket, and people need to have a place where the community is represented, and celebrated, and encouraged to have good business practices and to be all of those things. So yeah, absolutely.

TG Branfalt: Can you tell me about some of the challenges that you faced when you were putting this whole thing together?

Benjamin Jesse: Yeah, challenges. Look, it wasn’t a challenge to get the industry on board, that’s for sure. We have such a good culture behind it that it’s very well supported. I think as the rest of the world has this canaban on advertising, and I think that’s been one of the biggest challenges, is we can’t advertise it anywhere. We can’t publish these things, we can’t put on Facebook, or Instagram, or Google, and we especially can’t put it on newspapers and those sorts of things. So one of the biggest challenges is actually connecting to people, getting out to people, and getting people aware of the whole thing. It’s very siloed, people are sort of…

I mean, that’s a key strategy of criminalization and prohibition. It’s separates, you know divides and conquers, it makes everyone not be able to communicate about it, and to see what else other people are doing and so on. So awareness often is that big linchpin of making a change in things, realizing that others well are out there and it’s doing good for so many people and so on. And that really changes minds, especially when it comes to the cannabis industry.

TG Branfalt: So, what’s your next step man? What are you going to have coming up? What’s next for the awards?

Benjamin Jesse: Yeah. Well, as I said, we’ve got a lot of our supporters telling us that they want to have a gala. An actual award ceremony thing, which we didn’t do this year, just because it was our first year. We don’t have any sponsors or anything like that, but we will be getting those on. Yeah, we’ve got quite a few the plans for the coming years. I mean, it’s still very obviously early on in the industry and we’re still finding our feet and designing the systems, and so on. But, we’ve put a lot of effort into making the awards to be build properly and to have the right structure and so on.

We want to make sure that we have that credibility and that we really have everyone on board, and we don’t have them get into any of the politics of the differences of opinion that might exist in the cannabis industry and so on. A lot of that is around making sure that, for example, the way that we do the judging of the awards of the nominations is actually an independent panel of industry leaders, and people who have been activists or business leaders in the space for a long time. We get them to actually vote throughout our transparent and proprietary system that we’ve made specifically, so that it can be not just us choosing awards, if you know what I mean. Like it’s not just us choosing who we think wants to be the award winners.

Also, trying to avoid the pitfalls of having just chosen by the public as well, which can be a problem. Obviously that that tends to lead to only the big companies with the big followings getting the awards because they can afford to get more people voting on a product or whatever. This way it really is some of biggest names and the most well respected names in the industry, who are judging and so on. We’ve been really lucky to have, I think it’s about 13 or 14 judges at the moment, and we’ll go through the process of cycling through those over the years. And making sure that it’s well representative, both the business and community sides. I don’t know if that answered your question.

TG Branfalt: Yeah. Then you had mentioned that you couldn’t really advertise, so how did you spread the word about this?

Benjamin Jesse: It really does speak to the grassroots of it all, it does. It really shows that people are more than happy to talk about it and to share the information. We’ve just been siloed and picked on by government and police, for so long that everything that’s in the industry, that’s good people will help share and really we’ll talk about. As I said at the start, it’s really validating to know that everyone agrees that we need it, and that this is filling that space more than one way also. So yeah, so the industry.

TG Branfalt: So where can people find out more about the awards? Where can they find out more about you, man?

Benjamin Jesse: Yeah, absolutely. Yeah. Look, Instagram, Facebook, two good spots, although… and you’ll just find us through Cannabis Industry Awards. Just one to one, the Australian one, because there are a few of the awards around the world. But the best way really is as I say to, because of the fact that we might get our Instagram or Facebook shut down, is to actually join our mailing list. So our website is, cannabisawards.com.au which is the Au for Australia. That’s the domain name that we are using over here.

All the info is on the website. We’ve put a lot of effort and a lot of thought into making sure that we’re communicating with the right people to get their feedback. We’re keen to hear from anyone about their advice of how they would like things to run, or ideas that we can do and so on. And yeah, people can just do that and just sign up to our mailing list, it’s the best way really, on the website at cannabisawards.com on the au. Or you can find me as well on LinkedIn, I’m Benjamin Jesse. I’m on LinkedIn. I’m happy to connect with anyone.

TG Branfalt: Excellent man. Look, I really appreciate you taking, you know, not going to sleep and staying up so we do this. And I’m excited to see how next year goes for you, and I’m always interested in seeing global policy. So I’ll definitely have my eye on the ‘liberal government’ and see if there’s any movement there, man. I appreciate your time.

Benjamin Jesse: Not a problem. It has been fantastic to talk to you, Tim. Thanks so much for giving us the space.

TG Branfalt: You’re very welcome.

You can find more episodes of Ganjaprenuer.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.

End

Christos Nicolaidis: Filtration Technology for Vaporizers

1/28/2020

by

For our latest expert Q&A, we caught up with Christos to chat about Philter Labs, the company’s vision of reducing the harms and stigma of secondhand smoke, the design and unique products, and more. You can check out Philter’s brand mission below and scroll further down to read the full interview!

Ganjapreneur: Could you please briefly explain Philter Labs’ unique product offerings, and explain where/how the idea behind these products was born?

Christos Nicolaidis: We launched PHILTER to develop and bring an entirely new solution to market that addresses the most prolific, longest-standing issue when it comes to vaping and smoking; reducing the harmful effects and negative stigma of secondhand smoke. Philter Labs is pioneering a new category of micro-sized personal air filters that enables adults who choose to smoke or vape to do so “cloudlessly”, by easily and efficiently filtering their secondhand vapor or smoke. Our patented technology destroys 95% of smoke and vape emissions. About 5 years ago I was chatting with renowned product developers and friends Yuval Shenkel and John Grimm. As we discussed the fast-growing vaporizer space we realized that nobody had yet addressed one of the biggest drawbacks of vaping and smoking, the uncontrolled and harmful cloud of secondhand smoke that plagued users and everyone in their general vicinity. So, we formed a company and began to focus on a goal of creating a small, sophisticated yet highly effective line of products that could easily be integrated for use with both cannabis and nicotine. The result is the development of new and well protected IP that backs our robust pipeline of products that are primarily based on our patented Zero-5™ Technology. This five-step filtration process manipulates vapor and smoke at the molecular level to dissipate and reduce emissions while simultaneously dissolving or trapping particulates and pollutants. Our technology goes far beyond the old toilet paper roll stuffed with paper towel filter. There is an incredible amount of complex processing involved to achieve such a high level of filtration. This had led to outreach from large vape brands and the foremost leading tobacco companies who understand how a technology like ours could be a true game changer by bringing the days of uncontrollable and harmful smoke clouds to an end. This is a clear indication that we are on the right track and our hard work over the past 5 years has the potential to lead to some very valuable partnerships.

What’s the most important thing for consumers to know about Philter Labs?

Our mission is to empower responsible adults with the choice to keep the air clean for those around them by filtering their emissions and yet still allowing them to enjoy their chosen lifestyle. PHILTER benefits from several cultural trends and beliefs that are deeply embedded into the lifestyle of our target consumer demographic. First, any responsible adult who smokes or vapes today is hyper aware of the damaging health effects of secondhand smoke and has likely been on the receiving end of the negative stigma associated with it. At the same time, these are people who desire to live a clean, healthy, and environmentally sensitive lifestyle, and often use products that signal to others their commitment to these virtues. PHILTER products represent a new paradigm for people who vape and smoke. No longer do they have to isolate themselves for fear their uncontrollable cloud of potential dangerous secondhand smoke will indiscriminately intrude upon everyone around them. Vapers and non-vapers can now socially co-exist with our exciting new technology, all while eliminating secondhand smoke and still protecting their personal right to vape or smoke. We truly believe that’s something to celebrate!

What has the response been so far to the Philter products, and which is your most popular offering?

The response has been overwhelmingly positive. 1 in 20 US adults identify as vape users, and while the latest issues related to illicit vaping practices have been front-page news, the number of adults who vape doesn’t seem to be dipping. This is due in large part to better education and the latest findings by the CDC that harmful additives in vape cartridges are the cause. Still, if you think about it, 1 in 20 adults vaping is a LOT of secondhand vapor! Everyone sees the value in solving the major public issue of exposure to secondhand vape and smoke, but until now, there has not been a small, affordable, and highly effective solution that vapers could feel comfortable using without drawing even more attention to themselves. PHILTER is sleek and it works. Our POCKET, a unique and simple-to-use accessory that makes filtering vape and smoke convenient, is our best-selling product to date. Upon our customers request, we recently launched a 3-pack of reasonably priced replacement filters in nine exciting new colors. These refill packs allow customers to continue using their POCKET or PHLIP sleeve and simply just replace their filter resulting in less waste and less cost.

What is your proudest achievement with Philter Labs, so far?

It is exciting to create a product that immediately earns traction in the marketplace. The company has had many achievements during its journey from idea/concept to a viable solution, to store shelf. But was is most rewarding it to hear the feedback from customers who tell us they can’t imagine how they lived before discovering our product. Especially the people who might be skeptical at first, but later say that they have found an immense amount of relief because they no longer have to worry about offending others or standing outside in a cold dirty alleyway to partake. Another big achievement is when our CMO, Amanda Byrd, came up with the name “PHILTER”, which from a branding standpoint, is brilliant. The PHILTER brand is steadfast becoming a trusted brand that truly solves a problem that has plagued millions of people around the world.

Have you had to face any misconceptions as a cannabis-adjacent company?

Because of the functionality of our products, there has been a misconception that we are solely trying to help people hide their cannabis consumption, but the reality is that we are trying to normalize open consumption by providing a way for people to balance the social scales by making outward legal cannabis consumption acceptable. In our opinion, a person should be able to unwind and relax with a cannabis vape pen the same way they do with a glass of wine.

Are there new products in the works, or are there other ways you plan to implement your filtration technology?

We have a very robust product pipeline that allows us to fully leverage our unique filtration techniques. What is so exciting about the capacity of our patented technology is that it has the ability to be integrated into virtually any type of electronic or combustible delivery systems for nicotine and cannabis which gives us a wide variety of opportunities to meet the needs of our customers. As impressive as our first products have performed, we are actually far more excited about a game changing new line of products we will launch this year that will enable people to inhale and exhale nicotine, cannabis, or CBD through the same single opening or mouthpiece on their vaporizer.

Have you inquired with or worked alongside regulators or other government officials to advance Philter’s goals and/or recognition? If yes, how so?

We are fortunate that because we are an accessory and not a delivery system for nicotine, we do not fall under the purview of the FDA. But because our products are so effective at removing the harmful elements of secondhand smoke, we believe they represent a chance to reimagine how vaping and smoking are regulated. To that end we created a Scientific Advisory Board of renowned experts with decades of experience in particulate science, toxicology, and regulatory affairs at the highest levels to help guide our efforts in this area, including:

  • Dr. Willie J. McKinney is the Founder and CEO of McKinney Regulatory Science Advisors. Formerly at Altria and JUUL, Dr. McKinney is a noted scientific toxicologist and served as Vice President of Global Regulatory Affairs for JUUL labs in San Francisco.
  • Dr. Michael S. Werley spent over two decades at Phlip Morris/Altria, most recently serving in the capacity of Principal Scientist. He has authored numerous research studies on tobacco, nicotine, toxicity, inhalation, exposure, and harm reduction.

Where do you hope to see Philter Labs ten years in the future?

We see vaporizing technology today to still be in its infancy and somewhat primitive. We believe that PHILTER, and filtering one’s secondhand smoke, is the next logical step in the progression to a cleaner, safer and more refined vaping experience that will become ubiquitous within the next decade. Very much like wearing a seatbelt or applying sunscreen in the morning.

What advice would you offer to entrepreneurs who are operating in or adjacent to the cannabis space?

I think any entrepreneur in this space would tell you that it is a fast-moving industry and understanding its many nuances is key. Staying educated on the current trends and hot topics along with the shifting laws is necessary to ride the waves successfully. Most importantly, listen to your customers’ needs and wants and don’t be afraid to pivot. There are more and more cannabis users who are new consumers and they will be the future of this industry. Evolving to meet their needs will be necessary. Finally, I would share with entrepreneurs in any industry, to always guide the business with your why. Fully embrace and embody your brand story and share it frequently as it will keep you motivated to build the business you’ve always envisioned.

Thanks, Christos, for answering all of our questions! For more information about Christos and his project, visit PhilterLabs.com.

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Cannabis Licensing Scandal Sweeps Pasadena, California

1/28/2020

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Critics are asking if Pasadena, California violated their own procedures when they awarded six retail cannabis licenses last year, according to the Pasadena Star-News.

Modeling their application process after West Hollywood, Pasadena chose to have applications scored by “at least” three independent scorers. After each scorer reviewed the same application, scores would be totaled and averaged. Applications with the highest scores would be awarded the six coveted licensees. However, new documents show only one person signed each application, not three. Additionally, the PSN reports the scoring was not done independently. 

In emails obtained by the Pasadena Star-News, despite the city passing a clear ordinance outlining the selection process, when it came time to score the applications, the city hired HDL Companies, a California cannabis and tax consulting firm, in order to “streamline the process.” In the final proposal, HDL said a “handful of employees” would grade the applications. These scores were then “reviewed,” and later signed, by the firm’s “marijuana compliance manager,” who was in contact with each team member during weekly conference calls, erasing any notion of scorer independence.

There are four lawsuits challenging the results of the application process and two city councilpersons have recently begun raising red flags about the city’s selection process.

“I can’t go to sleep with a good conscience about this process. There were supposed to be three scores, totaled and averaged. That’s the law. … Unless they can show me the three scores, everyone needs to be rescored properly.” — Councilman Tyron Hampton, to PSN

If the results are thrown out, Pasadena will have to re-do the selection process, further delaying the local implementation of the adult-use cannabis law California approved in 2016.

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Chicago Activists Call for Cannabis ‘Peddler’s Permit’

1/28/2020

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Activists in Chicago are requesting peddler’s permits for cannabis, which would allow them to sell cannabis products in a similar manner to street food vendors, the Chicago Defender reports. Tio “Mr. Ceasefire” Hardiman, executive director of Violence Interrupters, said the licenses would provide jobs for unemployed people in the inner city and help reduce violence.

“Everyone is promising to direct profits from the sale of marijuana into the communities that have been most impacted by the sale of illegal drugs. Well, these unemployed men and women are saying they can’t wait until that happens. And to be frank, they don’t believe it will happen. History shows those promises are never kept. The licensed cannabis businesses are already making millions of dollars from sales since January 1, and those citizens with the most experience in the industry are still in the streets unemployed.” – Hardiman, to the Defender

Hardiman is also pushing for Gov. J.B. Pritzker to clear the records of individuals with felony drug sale convictions along with the low-level expungements already happening in the state due to the cannabis legalization law. Hardiman argues that with 45 percent of Chicago‘s black male population unemployed, a peddler’s permit for cannabis would be a “win-win for everyone” because the permits would provide job opportunities and mitigate some of the tension surrounding illicit market sales.

“If California, Colorado and Washington D.C. are examples of what can happen, black and brown people in those communities will not get the jobs and surely will not make the profits,” he said in the report. “We need our governor and mayor to support this appeal to make sure this does not happen to the unemployed men and women in Chicago. This is one real solution to interrupt the violence.”

No other recreational cannabis state law or municipal rules allow peddler’s permits.

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Teen Cannabis Use Steady In Utah as Neighbors Legalize

1/28/2020

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Utah’s Student Health and Risk Prevention (SHARP) survey found that while youth cannabis use rates are up in the state as its neighbors legalized cannabis, use rates among 10th and 12th graders have dropped since 2017 and cannabis use rates for adolescents as a whole largely remained the same in 2019 following the rise from 2015 to 2017.

Utah is bordered by Colorado, which legalized cannabis in 2014, and Nevada, where voters approved the reforms in 2016.

For Utah sixth-graders, cannabis use over the last 30 days remained at 0.5 percent from 2017 to 2019 – up from 0.3 percent in 2015, according to the report. Use by eighth-graders jumped from 3.2 percent to 4.5 percent from 2017 to 2019; use by 10th graders dropped from 9.3 percent to 8.8 percent, and from 12.3 percent to 11.5 percent for 12th graders. Overall, 6.2 percent of students surveyed had used cannabis over the last month, which remained steady with 2017 figures but up from 5.2 percent in 2015. By comparison, 5.5 percent of students in the survey had used alcohol in the last 30 days.

A strong majority (96.3 percent) of the students said their parents would think it were “wrong” to use cannabis; while 73.4 percent of students said there is “great risk” of harm associated with cannabis use – a decrease from 76.5 percent in 2015 but a slight increase from 72.4 percent in 2017.

The survey is conducted by the state Division of Substance Abuse and Mental Health. A 2018 Centers for Disease Control study found that Utah’s 6.3 percent ten cannabis use rates in 2017 were tied with Louisiana for the lowest in the country.

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Adult-Use Bill Introduced In Tennessee

1/28/2020

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A recreational cannabis legalization bill has been introduced in Tennessee that would create a taxed-and-regulated market with a 12 percent tax for education and infrastructure, WREG reports. The bill, introduced by Democratic Sen. Raumesh Akbari, would cap purchases at a half-ounce.

Half of the tax would be used for education, while 30 percent would be earmarked for infrastructure and 20 percent for the state’s general fund. Rules and regulations for the industry would be devised and adopted by the Legislature.

Akbari said the bill would stop wasting tax dollars on “failed drug policies” and create educational and economic opportunities in Tennessee.

“Tennessee’s tough on crime possession laws have trapped too many of our citizens in cycles of poverty and they haven’t actually stopped anyone from obtaining marijuana. The enforcement of these laws in particular have cost our state billions, contributed to a black market that funds criminal organizations, and accelerated the growth of incarceration in Tennessee’s jails and prisons. Tennesseans deserve better.” – Akbari, in a statement, via WREG

The measure has yet to be assigned to a committee and companion legislation has not been introduced in the House.

Earlier this month, medical cannabis legalization legislation that stalled last year was reintroduced in the Senate. Another proposal in the state would decriminalize cannabis and allow counties to decide whether they want to allow recreational sales.

A poll last year found 47 percent of Tennesseans supported adult-use legalization, with just 12 percent support for full prohibition. Another poll conducted by Middle Tennessee State University found 81 percent support both medical and recreational cannabis law reforms.

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Trump Says Cannabis Use Reduces IQ Score

1/27/2020

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During recently released audio from a 2018 dinner party attended by President Donald Trump and some of his close associates, the president suggests that cannabis use causes people to “lose IQ points;” the discussion was first reported by Marijuana Moment’s Tom Angell for Forbes.

The audio comes from a recording made secretly by Lev Parnas, a former associate of Trump’s personal attorney Rudolph Guiliani who recently publicly confirmed that the president knew about the administration’s efforts to coerce Ukraine into investigating his political rival. The Ukraine scandal ultimately led to the president’s impeachment last December — the resulting Senate trial is ongoing.

During the dinner, Parnas prompted the discussion by asking the president if he had considered alleviating the cannabis industry’s unfortunate banking situation. Parnas called cannabis a “tremendous movement” that is popular among young voters and suggested that Trump should get “ahead of it” by giving the industry banking access.

“Cannabis, look, you’re talking about marijuana, right? … It’s all working out, that whole thing is working out. I don’t know if it’s a good thing or a bad thing. … It does cause an IQ problem.” — President Donald Trump, during a 2018 dinner party

Donald Trump Jr. is also heard in the recording saying that alcohol “does much more damage” than cannabis — “You don’t see people beating their wives on marijuana, it’s just different,” he said.

According to the National Institute on Drug Abuse website, cannabis “can cause functional impairment in cognitive abilities” but an individual’s cannabis use does not appear to affect IQ.

During the 2016 campaign, then-candidate Trump said he supported cannabis as a states’ rights issue and that he believed statewide legalization experiments — including both medical and recreational markets — should be left alone by the federal government.

In April 2018, the president struck a deal with Colorado Sen. Cory Gardner (R) saying he would support a federalism-based cannabis bill that blocked all federal intervention with state-legal markets.

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