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Free Medical Cannabis Helpline Launched In Colorado

12/19/2019

A group of Colorado medical professionals has created a free medical cannabis helpline called Leaf 411 aiming to help consumers navigate medical cannabis use, according to a Denver Channel report. Callers can remain anonymous and get advice from a “cannabis-trained nurse,” Chief Operating Officer Jennifer Axcell said in the report.

“Cannabis as a medicine is a journey. Finding your dose and finding what works for you, and even after having the appointment with the doctor, there were still more questions.” — Axcell, to the Denver Channel

Axcell said her own journey with medical cannabis came about 10 years ago after she was injured in a car accident and subsequently prescribed “a bunch of different pharmaceuticals.”

The organization’s chief executive officer, Katherine Golden, is a registered nurse who started looking into medical cannabis treatment after a family member was diagnosed with stage 4 cancer. She said that the group hears a lot from seniors who “still believe the only way to get medicine is inhaling.”

“So it’s wonderful to be able to say ‘no, there’s all these other formulations out there,'” she added.

According to a University of Colorado study, cannabis use by seniors has increased tenfold over the last 10 years, the fastest for any demographic.

The organization has an oversight board that includes nurses, a physician, and attorneys. It counts about 20 cannabis firms among its founding members.

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Michael Catudal: Advancing Opportunities In Hemp and Cannabis

12/18/2019

Michael recently answered some questions for our latest written Q&A session — in this interview, we hear about the launch of Capital Business Collective, the difficulties and rewards of connecting investors with cannabis entrepreneurs, the benefits of working with an investment “collective,” and more.

Check out the full interview below!

Ganjapreneur: How long has Cap Biz Collective been connecting investors and entrepreneurs? Where did the idea for the business originate?

Michael Catudal: We started Capital Business Collective in August of 2016 primarily for consulting startups and small businesses on increasing efficiencies within their business operations and financial activities. I brought several years of manufacturing automation and finance experience and combined it with my business partner’s finance and investment experience, and we started building out our network, or “collective,” of subject matter experts. As the new consultants on the block, we’d use these SME’s on projects where we felt they would augment our skillset and add value for our clients, which in turn helped us build our network and reputation tremendously. That was our initial focus as small fish in the big pond of Washington, DC. Once we shifted our focus to the cannabis industry, much of our consulting work focused on helping companies raise capital and not just helping them overcome operational hurdles. This caused us to focus our efforts on the finance side of things, spanning from M&A opportunities to capital raises, asset/equipment financing, and working/growth capital infusions, while we will still consult those companies as needed to ensure they succeed and protect the investments as best as possible. Now our business model is two-sided: working with the companies needing to raise capital, and working with our network of investors to match them with the opportunities that best fit their criteria.

Have cannabis and hemp been your primary focus since the beginning? If not, what prompted the move into the cannabis space?

Our shift to primarily focusing on the legal cannabis space came when we joined our local Chamber of Commerce at the beginning of 2018. Our very first meeting we met the Founder of a local dispensary who was frustrated with the lack of banking services offered to the industry. As a firm that prided ourselves as the ones who could come up with solutions to the most challenging obstacles that companies face, regardless of the industry, it had actually been an issue that was already on our radar for some time. I’m a strong proponent that all disadvantages are actually advantages in disguise, and also that within gaps in efficiencies are where the biggest opportunities are hiding. The gray market of the emerging legal cannabis space presented both of these to us and we decided this was where we could be most useful moving forward.

What is the ultimate goal of the company?

Our goal is to cement our place in this historic time by having a hand in helping this incredible emerging industry grow. There hasn’t been this kind of opportunity for growth and prosperity for new and existing entrepreneurs since Prohibition, and many of these newcomers are bound to do incredible things, but don’t have, or know how to find, access to the capital and resources they need to get their business off the ground and successful. We don’t just want to see the industry grow because of the tremendous opportunity available, we also believe in the medicinal value of the crop. We are board members of a DC-based nonprofit that helps find alternative therapies for Veterans and their families battling PTS, TBI, and opioid addiction. Through our work with the nonprofit and its several partners with similar missions, we’re finding more and more overlap every day between our business in the cannabis industry and those Veterans, first responders, athletes, and other trauma sufferers whose lives are truly being saved by this crop. The more we (and anyone else) are able to assist in the growth of this industry, the more lives that may be able to improve. Our success lies in the success of the businesses we’re able to bring in and help thrive within this industry.

How does the investor membership work, and what opportunities does membership entail?

With our two-sided business model, we make sure we spend as much time providing value to our investor network as we do to our clients in need of help raising money. We do that by offering an exclusive Investor Membership for individual and institutional investors. They pay an annual fee in exchange for 24/7 access to our entire deal flow, which we like to call our “Deal Menu”. All of our deals are listed on our private web page with pertinent info and data for each and it is constantly updated with any changes to new and existing deals. They can browse this Menu anytime and request more info or an introduction to any deal they might be interested in. In addition to 24/7 access to the private web page, we send a weekly email status update to the Members that covers all of the deals on the Menu, and additional “breaking emails” whenever a significant change happens, such as a round opening, closing, or a large proportion of a round being subscribed to. For about the price of a latte a day, this is invaluable insight for investors to have into our extensive network of clients (which now spans the US, Canada, Australia, Europe, Africa, and South America).

How do you identify entrepreneurs and pitch decks to present to members?

We get more requests for assistance than we can keep up with through our website alone, but we’re fortunate to have such a vast network because a significant portion of our clients come to us by referral from friends, colleagues, and other companies we’ve worked with. We vet each opportunity that comes to us to make sure it’s legitimate and has the potential to be a valuable investment for our members, and we only add them to our Menu if we deem them so. It’s important to understand the companies you work with and their people. In a gray and booming market such as this, there are countless imposters and bad opportunities flooding the market and listing one bad opportunity could devastate the firm’s reputation, not to mention an investor’s wallet. We want to ensure every opportunity we promote is worthwhile for everyone involved. We will also work with certain companies, who may not quite be ready to be listed on our platform, to bring them up to that level and begin promoting them when they’re ready.

What do you think the next 5 years look like for cannabis policy in the US and globally?

This is obviously a very exciting time for the cannabis industry all over the world with regulations changing every day. I’m very optimistic about policies improving, including federal legalization in the US. Legislation such as the SAFE Banking Act passing the House and the MORE Act being approved by the House Judiciary Committee indicate to me that the climate for legalization in the US is moving beyond the constituents and finally starting to resonate with lawmakers themselves. As cannabis becomes more mainstream and comfortable, sooner or later they’ll realize re-election will become increasingly difficult the longer they hold out. This paves the way for the STATES Act, or similar legislation that has yet to be written, to eventually pass. Big Tobacco, Pharma, and Alcohol have all already dipped their toe in the water with certain strategic acquisitions, the lobbying money will follow soon.

Where are the most enticing cannabis industry verticals for investors right now?

Right now Hemp/CBD is booming. After the Farm Bill passed about a year ago, people are realizing they can set up the infrastructure that will eventually get them into cannabis once it’s legalized by getting into hemp now, and it’s completely legal at the Federal level in the US and Canada so the regulatory headaches are marginal comparatively. I like growth and extraction businesses the most right now, but the CPG market (beauty products specifically) is getting right up there as well. With the traditional beauty products market being as massive as it is, it’s hard to ignore the CBD parallel with it.

In cannabis specifically, license holders in limited license states. Without question.

What advice do you have for entrepreneurs who might want to send you a pitch deck? What should they have prepared, and how can they get in touch?

We like companies who know the market inside and out (and their niche specifically), who have a meticulous plan for world domination, who have the right people in the right positions, and who are honest about their competitive advantages along with their areas for improvement. Right now in this industry, everyone has the same idea, it’s what you’re doing to differentiate yourself and add value that’s going to attract investors. We don’t need a 40-page business plan, the most immaculate pitch deck in the world, or to-the-penny projections, we can work with you to polish each of them up. But the substance behind each of those elements should be rock solid and completely defensible, by everyone on your team. Once you have those you can send us a message at www.capbizcollective.com or email me directly at michael@capbizcollective.com.

Thanks for answering our questions, Michael! Learn more about Capital Business Collective

Follow Capital Business Collective on Facebook, Instagram, Twitter, and LinkedIn

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California Officials Suggest Switch to Potency-Based Cannabis Tax Rates

12/18/2019

California’s non-partisan Legislative Budget Office is suggesting the state move to a “potency-based or tiered ad valorem tax” for cannabis to stabilize revenues and discourage abuse. The report recommends that the state get rid of the tax on cultivators based on weight but said if the state keeps the current tax regime they should increase the excise tax by 5 percent or risk not meeting the $350 million in annual cannabis tax revenues needed to fund all of the programs outlined in the legalization bill.

The agency points out that Canada’s legalization law includes a C$0.01 tax per milligram of THC along with sales taxes and that a tiered ad valorem tax would set different tax rates on different potency and product types – similar to the model used in Illinois, which sets a 10 percent tax on cannabis flower and other products with THC concentrations below 35 percent, a 20 percent tax on “cannabis infusions,” such as edibles, and a 25 percent tax on products with THC potency above 35 percent, such as concentrates.

Ellen Komp, deputy director of NORML’s California chapter, told the O.C. Register that she was “flabbergasted” that the LAO would suggest raising the tax rate and that the advocacy organization “expected them to recommend, or at least discuss, the benefits of lowering the state tax.”

The report outlines four tax structures – including the current model – and found that, while a potency tax would be best for reducing harmful use and raising stable revenue, the current model is best for administration and compliance funding and that a weight-based tax would also be effective in raising stable revenues but would be ineffective for reducing harmful use or funding administration and compliance. The agency found the tiered tax was just average at reducing harmful use, raising stable revenues, and funding administration and compliance.

California’s current 15 percent tax rate is equal to or below tax regimes in other states with legalized adult-use but the state also imposes up to 10 percent in sales taxes on nonmedical cannabis and cities are allowed to impose their own taxes of 5 percent to 20 percent. The state’s cannabis growers also pay a rate of $9.25 per ounce for dry flowers or $2.75 per ounce for leaves. On January 1, that levy on cultivators is being hiked from $9.25 to $9.65, while leaf taxes per dry-weight ounce move from $2.75 to $2.87, and the plant rates will increase from $1.29 to $1.35.

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Vitamin E Acetate Prompts Legal Vape Product Recall in Michigan

12/18/2019

Michigan’s Marijuana Regulatory Agency has recalled five vape cartridge brands after the products tested positive for vitamin E acetate. The Centers for Disease Control in November linked the compound to the pulmonary injury illness that has sickened more than 2,400 and led to 52 deaths.

The regulatory agency has required cannabis vape cartridges to be tested for vitamin E acetate since November 22 and the positive tests mark the first time the compound has been found in the state’s legal market. The five products – Cereal Cart, Monopoly Cart, Royal Highness, Dank Vape, and Savage Stick – were sold at Elite Wellness in Mount Morris and Bay City between August 3 and November 22. State regulators had forced all licensed dispensaries to remove vape cartridges from their shelves for testing and, just last week, stores began to get them back in stock.

The tainted cartridges came from a caregiver who sold the products to licensed cultivator Larren Investments, according to the MRA recall notice. The MRA also found vitamin E acetate in four other products purchased by Larren Investments that had not yet made it to stores, including WCE Blueberry Distillate, WCE Gelato Distillate, WCE Sour Diesel Distillate, and WCE Skywalker OG Distillate.

Under MRA rules, vitamin E acetate in vape products is limited to 100 parts per million; some of the recalled products contained levels of vitamin E acetate as high as 68,432 ppm and as low as 105 ppm.

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New York Hires Former Rhode Island Cannabis ‘Czar’

12/17/2019

New York Gov. Andrew Cuomo (D) has hired Norman Birenbaum to run the state’s cannabis office and help craft policies for legalization, which a senior advisor to Cuomo called a “priority for next year,” the Buffalo News reports. Birenbaum, 32, previously served as the top cannabis regulator in Rhode Island until leaving the post for the unspecified New York job in November.

Rich Azzopardi, a senior advisor to the governor, told the Buffalo News that Birenbaum will oversee all things cannabis-related – including hemp and CBD. Cuomo signed a bill into law last week to regulate both the industrial hemp and CBD industries. Birenbaum oversaw both of those industries along with medical cannabis in Rhode Island.

State Sen. Liz Krueger (D), the sponsor of the state Senate’s legalization bill, said the addition of Birenbaum, who will work out of Cuomo’s office, “is a clear signal the Legislature will have a partner” on the cannabis legalization issue in the upcoming session.

Cuomo had included cannabis legalization in his 2021 budget, unveiled in January, but it was pulled in March after legislative leaders expressed concern about the reforms being passed in a budget bill rather than through the legislative process.

Lawmakers, however, would close the 2019 session without a legalization deal – blocked by downstate Democrats – though they did pass a bill to expand decriminalization protections to cover up to 25 grams and expunge low-level cannabis convictions.

After the end of the session, Cuomo met with governors from neighboring states about potential regional policies for cannabis legalization. The hiring of Birenbaum is a sign that Cuomo is finalizing his legalization plans ahead of the upcoming session.

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Illinois Lawmakers Promise Patients Priority Access In Adult-Use Market

12/17/2019

In a letter published Monday, a group of Illinois lawmakers says there will be “an initial, and hopefully short-lived shortage” of cannabis when adult-use sales begin, as the legalization bill passed last year includes language giving patients “priority access.”

“Each state that has implemented an adult-use cannabis program has had issues related to supply shortages. As legislators, we crafted the CRTA and the MCPA to have specific language to prioritize patient access – something no other state has done. We know there will still be challenges, but are committed to putting patients first as the adult-use program begins.” — Illinois lawmakers in a Dec. 16 letter

The lawmakers, from both chambers of the legislature, indicated that both patients and caregivers in the state “raised concerns” about a potential supply shortage once the recreational market launches and they “have confidence” that the governor’s administration takes the matters “as seriously” as the letter’s authors.

“There should be no doubt that medical cannabis patients will be prioritized once CRTA becomes effective in January,” the letter says. “CRTA provides medical cannabis patients priority sales in the event of any product shortages, and also guarantees medical cannabis dispensaries shall continue to provide the same variety and quantity of product as they did on July 1, 2019.”

Jordan Abudayyeh, a spokeswoman for Gov. J.B. Pritzker (D), told the Chicago Sun-Times that officials are actively monitoring supply, and that regulators can penalize “bad actors,” including revoking dispensary and cultivation licenses held by those who violate the law.

Adult-use sales in Illinois are set to commence on January 1.

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New Jersey Legislature Passes Bill to Put Cannabis Legalization to Voters

12/17/2019

Both chambers of the New Jersey Legislature have approved legislation to put adult-use cannabis legalization to voters during next year’s General Election, NJ.com reports. The measure passed the Senate 24-16 and the Assembly 49-24.

The vote follows a failed bid in the state last session – which was backed by Gov. Phil Murphy (D) and Senate President Stephen Sweeney (D) – after legislative leaders were unable to wrangle enough support to pass the reforms.

The question on the ballot will read:

Do you approve amending the Constitution to legalize a controlled form of marijuana called ‘cannabis’? Only adults at least 21 years of age could use cannabis. The State commission created to oversee the State’s medical cannabis program would also oversee the new, personal use cannabis market. Cannabis products would be subject to the State sales tax. If authorized by the Legislature, a municipality may pass a local ordinance to charge a local tax on cannabis products.”

Assembly Speaker Craig Couglin (D) said putting the issue to votes “is both sensible and equitable.”

“While not our preferred method of legislating, public questions allow voters to affirm or deny massive shifts in public policy,” he said in a statement to NJ.com.

Republican State Sen. Gerald Cardinale, who opposes legalization, called the referendum “a wonderful idea” but warned that more New Jerseyans would die “every year” if the measure were to pass because, she says, traffic deaths have increased in states with legalized cannabis.

“People actually smoke marijuana every day,” said State Sen. Nicholas Scutari (D), a sponsor of the proposal, during the debate “Can you believe it? But until your relative gets arrested over this substance that is widely used in this state and country some people will not understand why this is so important.”

Murphy had included legalization in his campaign platform for governor and, following the failure earlier this year, expanded the state’s medical cannabis program via executive order.

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Canada’s Cannabis Edibles Market Launches Tomorrow

12/16/2019

Cannabis edibles will finally go on sale throughout Canada tomorrow but consumers in Ontario, Quebec, and Alberta are likely going to have to wait until mid-January, the CBC reports. The delay is due to the provinces running their own distribution systems, needing to test the products before they hit store shelves, and, in Quebec’s case, stricter rules on edibles than all other provinces.

In July, Quebec banned the sale of potent THC-infused candies, confections, and deserts over 5 milligrams of THC per unit and no edible – regardless of potency – can be “appealing to children,” which means no sweeteners, colorants or other ingredients “that could increase the appeal of cannabis extracts.”

Fabrice Giguère with provincial retailer Société québécoise du cannabis, said provincial officials and the retailer “just want to give the industry time to adapt” to the new products and regulations.

Aurora spokesperson Laura Gallant told the CBC that teams at the company “are having sleepover parties at the office to be ready to receive and process orders for shipment.”

“[It’s a] nice way to have some fun with this industry milestone, given that we are ready to go right out of the gate,” she said in the report.

However, Hexo Corp CEO Sebastien St-Louis blamed the “regulatory uncertainty” and “jurisdictional decisions” on the company’s decision to downgrade its 202 sales forecast.

In addition to edibles, cannabis retailers will be allowed to sell concentrates, topicals, and other so-called “alternative” cannabis products.

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Mr. Fulvic Gardening Additive

12/16/2019

Mr. Fulvic is a soluble additive for gardeners that contains fulvic acid and other minerals shown to increase plant growth. This product is OMRI listed and made with organic materials. The simple to use additive is natural, safe, and compatible with all nutrient product lines. Gardens and farms are using it in all growing systems from soil to hydroponic to aeroponic. Let’s explore what this additive is made of and learn more about how it works.

What is Mr. Fulvic?

The Mr. Fulvic company was started by plant enthusiasts who wanted an organic solution for plants and soil. The development of the fulvic acid based nutrient was to find a way to improve plant quality and yield while maintaining a positive impact on the environment. That journey led founders to a unique 30-million-year-old deposit of humic shale, a natural organic material formed out of plant matter that has decomposed into the original plant’s basic organic ingredients.

Since Mr. Fulvic is mined from a deposit of unique humic shale, it isn’t made with hydroxides or a fermentation process. All components in this product are extracted with purified water ending in rich trace minerals, beneficial organic acids, and remarkably high levels of fulvic acid. Fulvic acid improves the uptake of materials, improves a plant’s natural resistance to environmental stresses, and stimulates plant growth.

The Data Doesn’t Lie

To truly understand the effect Mr. Fulvic could have on cannabis plants the team conducted two controlled studies. One of these studies compared a crop of cannabis plants that were watered with their regular nutrient regimen and one that was watered with Mr. Fulvic. In this study, by the third week in vegetative growth, the plants showed distinct advantages in growth rate, height, size, number of leaves, leaf size, and water consumption. By the ninth week, the cannabis crop being fed Mr. Fulvic was 20% taller than the control group with a substantially higher number of flowering sites. These plants also showed more robust flower growth in the lower canopies and significantly better roots. By week twelve each crop showed nearly equal THC content but the plants watered with Mr. Fulvic tested with 11.8% more terpenes along with 20.9% higher yield.

Another study tested Mr. Fulvic against a product composed solely of fulvic acid. The differences between the two crops were minute but worth mentioning. When factoring in the margin of error, THC, minor cannabinoids, and terpene content was generally the same between the two controls. The only difference in each group of plants was that the Mr. Fulvic group consumed 5 gallons more feed water during the first 4 weeks in veg. During this time the plants grew considerably faster than those only given fulvic acid. These studies support the idea that adding Mr. Fulvic to a nutrient regimen can create larger plants, more robust terpene content, higher yields, and stronger roots.

Research on the benefits fulvic acid can have on various crops from soybeans to cannabis is plentiful and the studies from Mr. Fulvic support these assessments. According to the data, Mr. Fulvic can be a beneficial growth enhancer leading to higher cannabis yields and more terpene-rich flowers.

To learn more about Mr. Fulvic, or to buy some to use for your own harvest, visit their website. The product can also be found on Amazon.

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USPS Intercepts Hemp Shipment from Vermont

12/16/2019

A 25-pound hemp shipment from Vermont has been intercepted by the U.S. Postal Service on its way to an out-of-state buyer, according to a VT Digger report. The hemp was mailed by Big CBD, whose owner Jimmy Goldsmith said the package was “stepped on” in Harrisburg, Pennsylvania.

Jon Brigati, Goldsmith’s in-house counsel, said the company has a letter on file with their local post office in Hardwick that details the contents of each package sent from Big CBD and he was confident that authorities would send back the package after tests come back as hemp. Brigati added that all future shipments would be labeled with something like “Industrial Hemp” in large letters on the outside of the package and include test results inside the box.

This is, at least, the second hemp shipment from Vermont intercepted by authorities since November when the NYPD confiscated a 106-pound shipment originating from the Green Mountain State and arrested the recipient. Police were tipped off about that package by FedEx and the Brooklyn District Attorney finally dropped the charges last week; however, police have yet to return the plants. The attorney for the hemp recipient has indicated he plans on filing a $10 million lawsuit against the police department and the city.

In June, USPS updated its Hazardous, Restricted, and Perishable Mail regulations to clarify that hemp and CBD products are legal to mail as long as the products comply with local laws and compliance records associated with the contents are maintained.

For Big CBD, it’s the first time the company has had any of its products seized.

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West Virginia Medical Cannabis Industry Applications Open This Week

12/16/2019

West Virginia officials are set to begin accepting applications for medical cannabis cultivators, processors, and dispensaries on Thursday, the Inter-Mountain reports. The announcement comes almost three years after the reforms passed the state Legislature.

Under the law, the number of growers and processors in the state are capped at 10 and the number of dispensaries is limited to 100. Individuals or businesses can hold permits for all three activities but no one entity or individuals can have more than 10 dispensary permits. The application and annual renewal fees for cultivators and processors are $5,000 and $2,500 for dispensaries. Permit fees for growers and processors are $50,000 and $10,000 for dispensaries.

The law went into effect on July 1, but patients aren’t expected to begin applying for the program until 2021. The 2017 law includes cancer treatment, post-traumatic stress disorder, spinal cord injuries, multiple sclerosis, epilepsy, neuropathies, Huntington’s disease, Crohn’s disease, seizures, sickle cell anemia, and pain treatment as qualifying conditions for the program.

Jason Frame, director of the West Virginia Office of Medical Cannabis, said the first sales “will be dependent upon the industry’s ability to ready medical cannabis for sale through West Virginia dispensaries,” which his office estimates will happen in 2021.

The state Department of Health and Human Resources is also still awaiting lawmakers to approve key rules that will govern the program, such as facility inspections, the role of county governments, and where the dispensaries will be located. Those rules are expected to be voted on by the Legislature after session reconvenes in January.

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New York Gov. Signs Hemp & CBD Regulations Bill

12/13/2019

New York Gov. Andrew Cuomo (D) has signed a bill to establish rules and regulations for the sale of hemp and CBD in the state. Cuomo described the state’s hemp industry as “exploding” and said the state regulations will ensure the industry’s “long term viability” and protect consumers.

“By establishing a regulatory framework for producing and selling hemp and hemp extract we can set the industry on a path to continued growth in a smart, safe way that empowers both farmers and consumers.” – Cuomo, in a statement

The measure established a permitting process for hemp cultivators, processors, and help extract retailers, requiring laboratory testing and product labeling. Under the law, the Department of Agriculture and Markets will supervise hemp growers, while the Department of Health will have supervision authority over hemp extracts, such as CBD.

State Sen. Jen Metzger, chair of the Senate Agriculture Committee and bill sponsor, called the legislation a “nation-leading step forward” for the hemp industry which will provide “tremendous opportunity” for the state’s farmers and businesses “up the value chain” while protecting consumers.

Under the federal farm bill, approved last year, states are required to create their own hemp industry regulations which must be approved by the U.S. Department of Agriculture before becoming permanent.

The regulations cap THC levels at 0.3 percent – on par with federal rules – requiring state licensing and an application fee of $500 and a per-acre license fee that will be determined by the state agriculture commissioner.

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Pasadena, California Sues Own Clerk Over Cannabis Initiative and Wins

12/13/2019

The Pasadena, California City Council sued its own city clerk and the Los Angeles County registrar-recorder/county clerk over a ballot initiative to legalize 18 of the city’s illegally operating cannabis dispensaries and won, Pasadena Star-News reports.

The ballot initiative was approved by more than 9,100 residents and City Clerk Mark Jomsky, along with the L.A. County clerk, would have been responsible for approving and implementing the measure, which would have created a separate set of rules for the un-permitted dispensaries and exempted them from most of the city’s licensing process.

Judge Mary Strobel ruled that the initiative was unconstitutional because it created “a special privilege or advantage on specific organizations,” which is unlawful.

Frederic Woocher, a partner at law firm Strumwasser & Woocher who argued on behalf of the city, said the initiative was an improper use of the process and that initiatives can not make administrative changes, only legislative ones.

“The purpose of that (law) is to keep somebody from using the initiative power to secure special advantages for themselves.” – Woocher, to the Star-News

Attorney Stanley Kimmel, who argued on behalf of the initiative proponents, said the measure was intended to grandfather in shops that were around before the city passed its laws to allow recreational cannabis sales. Those rules prohibit current cannabusinesses operating in the city from applying for approval.

“There’s no doctrine that allows grandfathering of illegal uses,” Woocher said to the Star-News after the preliminary ruling. “This was really a perverse measure, and I think the court recognized it.”

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Ontario, Canada Opening Cannabis Industry to Private Companies

12/13/2019

Ontario, Canada is removing the cap on the province’s number of private retail cannabis stores in January, abandoning the current lottery system, the Financial Post reports. The Alcohol and Gaming Commission of Ontario is expected to begin accepting applications for private cannabis retailers on January 6 and to approve applications beginning March 20. Regulators expect authorizations at a rate of about 20 per month.

Under the plan, the pre-qualification requirements will be scrapped – those rules required applicants to have a loan of $250,000 along with a letter of credit from a financial institution. Licensed producers will also be permitted to open a single shop at one of their facilities.

Provincial Attorney General Doug Downey said the changes are aimed at combating illegal products, protecting children, and keeping communities safe. Currently, Ontario has just 24 cannabis retailers throughout the province, using a lottery system to award 67 licenses total, with eight allocated to First Nations groups.

“In response to the federal government’s decision to legalize cannabis, our government is determined to open the cannabis market as responsibly as possible.” – Downey, to the Post

In September, the province held its second lottery round for legal cannabis licenses and 18 of 42 of those applicants were quickly disqualified for breaking rules or failing to submit all required documents. One winning firm actually withdrew its application due to the process. The Financial Post first reported the plans to open the industry to private companies last month, but at the time it appeared they would only allow private firms to store and distribute cannabis rather than sell it to consumers.

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Texas Energy Company Planning Nation’s Largest Hemp Facility

12/12/2019

Dallas, Texas-based Panda Biotech is planning to build the largest industrial hemp processing facility in the U.S. in Shallowater, KCBD reports. The “Panda High Plains Hemp Gin” would be used to separate hemp fiber and cellulose from the stalk and the company expects the facility will process 130,000 tons of industrial hemp annually.

Panda Biotech, a subsidiary of Panda Energy, was formed following the passage of federal legislation legalizing hemp nationwide.

According to the report, the company has already secured the rights to purchase a 255,000 square foot facility for the project. The gins are based on smaller versions that have been used for hemp processing throughout Asia and Europe for decades.

Shallowater Mayor Royking Potter said the technology will “greatly benefit the agricultural industry and the producers in the West Texas region.”

“The City of Shallowater is excited to promote the cutting-edge industrial hemp processing facility Panda Biotech is bringing to our community,” he said in a statement to KCBD. “The Panda High Plains Hemp Gin will not only generate new revenue with minimal effects on infrastructure, but it will also create new jobs in our community.”

Scott Evans, executive vice president of Panda Biotech, called the planned facility “a game changer for both agriculture and industry for generations to come,” adding that the company only plans to process stalks that are harvested before they are able to produce CBD.

“Hemp fiber and cellulose will help manufacturers meet the needs of today’s eco-conscious consumers who increasingly require environmentally friendly products and services. … We have concluded that the processing of hemp stalk for industrial uses will be the next multi-billion-dollar business in the United States,” – Evans, to CBSDFW

Panda estimates that the U.S. hemp market is estimated to reach $32 billion by 2022, noting that the industry’s estimated 2019 profits are $4.6 billion.

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SEC Fines Colorado Author $4.1M for Cannabis Stock Inflation Scheme

12/12/2019

A Colorado businessman has been fined $4.1 million by the Securities and Exchange Commission for allegations that he misled investors about Israeli cannabis company OWC Pharmaceutical Research, according to a MarketWatch report.

Jeffrey Friedland, who authored “Marijuana: The World’s Most Understood Plant,” is accused of taking kickbacks from OWC in exchange for promoting the stock during conference appearances and in online videos from 2016 to 2017 – during which the price of the stock jumped from one cent to as high as $2.20 a share and gave OWC a $300 million market value. Today, the stock has collapsed 99 percent and is back down to a penny.

The SEC says Friedland, as Global Corporate Strategies LLC, received 5.1 million shares of the company – about 6.3 percent of the stock – in exchange for promoting it.

Melissa Hodgman, associate director of the SEC’s enforcement division, said that securities laws require retail investors to list all “the facts about promoters’ relationships with the companies they tout.”

In all, Friedland made about $6.5 million from the scheme and, while he has admitted to no crimes, the U.S. District Court of Colorado has barred him from participating in any penny stock offering for a decade. He is also accused of using disbarred attorneys to mislead intermediaries while selling the stock.

OWC’s most recent SEC filings show net losses of $287,000 during last quarter but the company is proposing a reverse stock split, which would merge as many as 700 old shares into one new one to make each share more valuable.

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Rhode Island Considers Tightening Out of State Cannabis Patient Rules

12/12/2019

Rhode Island has proposed changing state requirements for medical cannabis purchases by out of state residents.

Last year, the state took a major step forward in medical cannabis policy by allowing out of state residents to buy medical cannabis. However, after the change, a curious thing happened — according to the Providence Journal, the change prompted some 6,500 registered medical cannabis patients to change to California addresses in order to take advantage of the Golden State’s simpler medical cannabis regulations.

The policy shift proposed in Rhode Island would require patients to present a valid ID from the state where they are registered as a medical cannabis patient before they can take advantage of the out of state exemption.

At a hearing discussing the changes patients expressed concerns that Rhode Island’s system was too complicated and costly. A patient named Alexa Coffey from Portsmith, Rhode Island, said she opted for the out of state option because the Rhode Island card was too expensive.

“I make no money and have a lot of medical bills to pay,” she said.

Others believe the change may push more patients to the unregulated marketplace or force them to go to neighboring Massachusetts, where cannabis has been legalized for adult use, to buy their cannabis.

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Canadian Miss Universe Contestant Wears Cannabis Outfit at Competition

12/12/2019

Canada’s contestant for Miss Universe wore an outfit representation of the nation’s legalization of cannabis during the “National Costume” segment of the competition, Huffington Post reports. Alyssa Boston wore a green, skirted outfit with a leaf-shaped back piece, a cannabis-leaf crown, and a glittery, leaf-adorned, scepter.

According to Insider, Boston is 24 years old and works on the marketing team for an auto-part company. She also advocates for mental health, working with the Canadian Mental Health Association and through #TalkAboutME, a social media campaign she launched.

“It was inspired by Canada’s recent legalization of cannabis but most importantly to end the stigma globally in hopes to spark more research for medicinal purposes.” — Boston, via Instagram

The outfit was designed by Neftali Espinoza, a Nicaraguan designer.

During the broadcast, the announcer explained the purpose behind the ensemble represented “the legalization of cannabis for medicinal purposes” – medical cannabis was legalized in Canada in 2001.

“This contestant wants to end the stigma that’s been around since 1920. If you’ve got the need, you can grab legal weed with Canada,” the announcer said during the event.

In an interview with the Windsor Press prior to the event, Boston said she was “pretty proud to actually have the knowledge” about cannabis and the platform to raise awareness.

“It’s a little different for a beauty queen to talk about cannabis,” Boston said to the Press. “It’s something that we’re very proud of here in Canada. It’s a brand new industry and there’s a lot of potential that we see in the future. I’m happy to bring awareness to it in a whole different light.”

Boston did not win the costume content and was not ultimately crowned Miss Universe.

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Laurel “Lo” Friesen: Expert Cannabis Extractions

12/11/2019

We recently caught up with Lo for an interview that covers the state of Washington’s cannabis industry, her entrepreneurial journey since the launch of 2017 Heylo, what it takes to find success as an extracts brand in a sophisticated cannabis marketplace, and more.

Check out the written Q&A below!

Ganjapreneur: When did you launch Heylo, and what inspired you to dedicate your life to the project?

Laurel “Lo” Friesen: Heylo launched in August of 2017. I moved to Seattle in 2015 with the intention to enter the cannabis industry. My father is a physician and both of my parents are entrepreneurs, so they actually planted the seed that grew into the idea to enter the cannabis industry. After working in medicine for 2 years and reading countless white papers about the medical benefits of cannabis, my passion for cannabis, chemistry, and medicine turned into the pursuit of a career. Being a consumer in Seattle helped me understand that there were huge gaps in the marketplace. Heylo was born to fill these gaps with high-quality products built around the values of education and transparency.

What makes Heylo unique as a cannabis extraction brand?

Our goal is to help customers get more out of life with cannabis concentrates. This means we optimize every part of our product for experience and safety. The best possible experiences with cannabis come from the flower (bud), not a lab, so we work strenuously to make oil that is as close to the plant as possible. We take great care in our CO2 extraction process to ensure we are able to maintain the chemical profile and experience of the source flower. We work with a flower that looks like it belongs on the retail shelf. If you want to feel the effects of the plant you need to start with the plant – and nothing else. We explain our process in two simple steps – start with the same high-quality flower you would buy for yourself and respect it at every stage of processing.

Heylo is built on education and transparency in an industry that has been forced to operate in hiding for decades. We share everywhere we can – all over the packaging, on our blog, at our events, through Spotify playlists, coloring sheets, and budtender education. The ultimate goal is for anyone to find the perfect product and experience suited to their personal chemistry and needs. This is how cannabis improves lives.

How has the recent news about vape-related lung disease impacted your business? Has it presented any unexpected challenges?

As reported by Headset, Washington State vape sales collapsed about 20% following the vape-related lung illnesses gaining national attention. Every company operating in this space has felt the effects.

That said, we have seen growth through this trying time. While it is a tragedy that any illnesses have occurred, an important message is finally being heard by consumers – pay attention to what you put in your lungs!

This message, that people should be cautious with anything they inhale, is one we have been shouting since we launched.

Anytime you inhale anything that does not air you are introducing risk to your body. It is our responsibility to produce products that minimize the risk to the consumer. We are sourcing clean products, we pesticide test every batch of extract, our quality assurance, and control methods are rigorous, we vet our suppliers, and we have always relied solely on the cannabis flower to produce our cannabis extracts.

The vape crisis has shifted consumer preferences in our favor. We’ve increased our market share by three times since the beginning of “vape gate”, but this is not a satisfactory ending. We’d like to see stricter regulations in place around pesticides, heavy metals, and QA testing.

Washington Governor Jay Inslee recently announced a ban on flavored vape products: how has this impacted Heylo?

Heylo has never produced flavored vape products or additives and never will. Our products are compliant in the strictest interpretation of the ban. We personally called each of our retail partners after the ban took effect to be available for any questions the retailers may have regarding our products. We received calls from stores that had to remove 50-100% of their vapes from shelves after the ban. We were ready to fill those gaps and continue to serve stores with our product and educate their team and consumers about our products.

In the wake of the flavor ban on vape products, what kind of response would you like to see from other vape manufacturers?

I would like to see vape producers respond by ceasing the use of any and all additives in their products.

Have you ever faced challenges due to being a brand that never uses any additives?

The challenge has been to educate and stay true to our principals while we wait for the market to mature and align with our products. Early on we realized that we needed retail partners that understood our vision in order to succeed. A consumer isn’t going to buy a product with lower THC and a higher price on their own – they need to know that it will provide a better experience and is worthy of their dollars. Our full-spectrum extract delivers on quality and experience, no additives necessary. Good stores understand that.

Can you tell us a bit about Heylo’s brand new VOLUME series?

VOLUME is all about cannabis, art, and community. It is a limited release, single batch series where only one VOLUME will be released at a time. A single VOLUME is released at a time, we partner with an incredible craft grower and we tell their story with the help of a local artist. We rely on them to put their best product forward, whether it’s strain-specific or a perfect blend, and we produce the best extract we can from that product. The artist is tasked with creating a design to convey the experience of the product to the consumer, which will then become the packaging. The product’s name will be the number within the series, VOLUME 1 is out now and VOLUME 2 will launch after the new year. We provide the information about the product on the back of the package, but the consumer is encouraged to use the art on the package as inspiration for the product. Beyond that, the website has a forum to encourage community engagement about the product’s experience, taste, the grower’s story, the art, etc. We’re treating cannabis like fine wine. It’s been an amazing project and I can’t wait to see how it grows!

What advice do you have for someone looking to pursue a career in cannabis?

The cannabis industry is not just another business industry, it is a movement. It is not for the faint of heart. It is full of unresolved issues that are desperate for a solution. If you’re passionate and ready to be part of this incredibly rewarding uphill journey, then join us! Figure out what you’re good at and apply it to this industry, we need all the help we can get.

Thanks, Lo, for chatting with us and answering our questions! If you want to learn more about Lo and/or the Heylo brand, check out the company website at HeyloCannabis.com.

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Creso Pharma Set for Big 2020 with Pharmaceutical Cannabis Expansion

12/11/2019

The legal cannabis market is forecast to reach US$148 billion by 2026, with Barclays European Consumer Staples Report predicting the global cannabis market will reach US$272 billion by 2028.

Surprisingly, despite still stringent legislation, the Australian legal cannabis market is also experiencing heightened activity.

Australia’s Office of Drug Control has so far issued 69 licenses to cultivate, produce, or manufacture medicinal cannabis.

This includes:

24 licenses for cultivation of cannabis for medicinal use,
16 for cultivation for research, and
23 for manufacture of medicinal cannabis products.

Creso Pharma Ltd (ASX: CPH) has established itself in this market as an early mover within the medicinal cannabis sector. Its focus: high margin pharmaceutical-grade cannabis products in human and animal health.

As a global entity, Creso represents an early entry point for investors to dip their toes in the global legal cannabis market.

The company has a diverse product portfolio of cannabis and hemp-derived products focused on four key areas: therapeutics, nutraceuticals, animal health, and cosmetics.

Since 2016, it has been committed to build a business rather than ride a trend, albeit a potential lucrative one.

Within this environment, Creso is aggressively pursuing the launch of nine pharmaceutical-grade products, along with key certifications and strategic partnerships that will accelerate revenue growth.

Creso has already launched four sales generation products across the cosmetics, animal health, nutraceuticals, and therapeutics verticals.

The company expects its growth plans to be supported by funding measures, revenue increases, and cost management initiatives.

While its operations continue to move from strength to strength, it hasn’t been smooth sailing for the company in 2019.

A failed takeover bid by Canadian cannabis giant PharmaCielo Limited (TSX-V:PCLO) which targeted Creso for the breadth and strength of its current portfolio rocked its share price.

Te bid valued Creso at A$122 million; the deal fell over in November due to a softening in the broader medicinal cannabis market.

It did, however, highlight the potential invesment opportunity in the ASX listed Australian company.

The proposed takeover valued Creso at 63 cents per share. The most recent placement was conducted at 19 cents per share – the takeover price representing a 230% premium.

Creso’s strengths are emphasized by its year-on-year revenue growth, providing a sound base as new products are brought to market.

The company recently launched its cannaQIX® range in Africa in conjunction with leading South African pharmaceutical company, Pharma Dynamics, a subsidiary of Lupin Limited (NSE: LUPIN). Initial orders worth approximately A$300,000 for the cannaQIX® product range have been made and Creso anticipates the products will available in South Africa in Q1 2020.

In animal health, Creso’s partner Verbal is introducing the two initial anibidiol® products into further countries in Europe and will be launching Creso Pharma’s new animal health products in the near future.

For both human and animal health, Creso has initiated its reach into North America, where it is in discussions with a number of potential partners to introduce all 13 products, human and animal, into selected US states.

Products are made with standardized dosing and formulations through the application of pharmaceutical rigor, Good Manufacturing Practices (GMP) standards, and proprietary, innovative delivery technologies.

In addition, they carry the well-known “Swiss Made” label that is synonymous with premium-quality products.

The Swiss connection is significant as Swiss-based CEO Dr. Miri Halperin Wernli is a well-regarded senior Pharma executive with over 24 years of strategic and operational leadership in global drug and product development in the pharmaceutical and biomedical industries.

Creso believes the value of its fundamental operations continues to grow, supported by the company’s portfolio of products, established operations, corporate interest, and global market opportunities.

To learn more about Creso Pharma visit The Next Biotech.

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Evidence of Inflated Test Results Emerges in Nevada

12/11/2019

A Washington state scientist and cannabis consumer advocate has discovered evidence of “lab shopping” in Nevada using state cannabis laboratory data. Jim MacRae used publicly available lab results from Nevada’s busiest nine testing labs from January 2018 to May 2019. He was particularly interested in the failure rates for biological pathogens, heavy metals and pesticides, and potency results. After some negotiation, the state provided over eighty thousand “blind” data points for MacRae to analyze this summer.

Expecting a 10 – 15 % sample failure rate, MacRae instead found that some labs routinely had less than ten percent failure rates and one lab had no fails for a 14-month period, which raised red flags. Many of these same labs reported higher than usual THC rates, according to his report.

MacRae met with regulators in September, who quickly moved to address the problem.

“What impressed me most is how rapidly Nevada escalated the issues suggested by the data and also by how quickly the state acted. I presented my work on a Thursday afternoon and met with members of a number of different government departments on Friday. The following Monday, the Department of Taxation published a notice to the labs that put them on notice that the Department was ‘aware of and investigating potential inflation of THC levels by cannabis laboratories” and that such behavior was not acceptable.’ — Jim MacRae, in a blog post explaining the results.

Despite providing “blind” data, the state is aware of the problem labs’ identities, MacRae said.

“They could do much more by revealing what labs have the problems and what products are affected,” MacRae said in a phone interview with Ganjapreneur. “But, Nevada has done more in three days than Washington regulators have done in three years about similar problems in the Washington market, so I applaud what Nevada has done so far.”

According to the Nevada Current, the state has only suspended Certified AG Lab’s license, but has not made public the other labs and products in question. Instead, Nevada is asking consumers to “take caution” when buying cannabis products tested by Certified AG Lab.

MacRae has asked for a second round of data from Nevada with the identity of the labs revealed; he said he will know soon if they grant his request.

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MLB Considers Not Testing Minor Leaguers for Cannabis

12/11/2019

Major League Baseball is considering removing cannabis from the banned substance list for minor league players while implementing an opioid testing program in both the minor and major leagues, according to a CBS Sports report. The proposal was first reported by The Athletic’s Ken Rosenthal.

According to the report, players on the 40-man roster are not tested for cannabis but non-40-man roster minor league players are, and 13 players were suspended last season for cannabis use. Rosenthal says major league players “have not been subject to testing for marijuana.”

The opioid testing proposal comes more than five months after the death of Los Angeles Angels pitcher Tyler Skaggs who had two different types of opioids in his system at the time of his death. Players who fail an opioid test would be referred to treatment rather than suspended.

Under the current rules, non-40-man roster minor leaguers are suspended 25 games for their first positive test for a “drug of abuse” – which includes cannabis – 50 games for a second positive test, 100 games for a third positive test. A fourth positive test bans a player for life. To date, no minor leaguer has been banned for life for cannabis use, although former Brewers relief pitcher Jeremy Jeffress was suspended three times for cannabis use. Jeffress was released by the Brewers on September 3 after an injury-shortened campaign.

Alongside cannabis, the MLB’s list of “drugs of abuse” are synthetic cannabinoids, cocaine, LSD, opiates, MDA, MDMA and ecstasy, “bath salts,” GHB, and PCP.

The league and players association have yet to finalize the new drug testing agreement.

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Brooklyn DA Drops Charges Against Hemp Shipment Recipient

12/11/2019

The Brooklyn District Attorney’s Office has told a judge it is dropping all charges against the man who received a 106-pound shipment of legal hemp but was arrested after FedEx called in a tip about the shipment, the New York Post reports.

On Tuesday, Prosecutor Kerri Row told Judge Raymond Rodriguez that the DA’s office had been “presented with evidence that the substance seized in [the] case contains less than .06 percent THC, which makes the substance legal hemp under federal and now state law.”

“The new law places the development and enforcement of regulations pertaining to hemp squarely in the jurisdiction of the [state] Department of Agriculture, and in light of this, we consider this case to be more appropriately dealt with as a regulatory than a criminal matter. Accordingly, pursuant to our prosecutorial discretion, we move to dismiss the charges in this case.” – Brooklyn Assistant District Attorney Row, during court proceedings, via the Post

Despite the move to drop charges, Row said the NYPD would remain in possession of the shipment because it “appears to have been imported outside of New York’s regulatory guidelines.” She added that “the release of the property would be a determination to be made by the NYPD in consultation with the Department of Agriculture.”

In a statement to the Post, the NYPD maintained that the hemp plants were “illegal marijuana” because in New York “hemp sale and possession/distribution is only permissible when the buyer and seller have the proper permissions from the New York State Department of Agriculture and Markets” and the business owner did not get those permissions.

The case stems from the November 5 arrest of Ronen Levy, whose brother, Oren, owns Green Angels CBD and had ordered the hemp from a Vermont farm. Ronen had picked up the FedEx shipment because his brother was recovering from surgery. Oren said the packages seized by police contained laboratory testing paperwork that showed the plants contained THC levels below legal limits. About 10 days after the arrest, the DA’s office indicated they would drop the charges, but Ronen was given a new hearing date during his last court appearance earlier this month before the charges were ultimately dropped on Tuesday.

Sanford Rubenstein, an attorney for Green Angel, told the Post that the company would be filing a $10 million lawsuit against the NYPD and New York City.

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