Oregon Court Strikes Down Cannabis Vape Products Ban

11/15/2019

by

The Oregon Court of Appeals has extended the injunction on the state’s six-month ban on flavored vape products to cover cannabis vaporizers, Oregon Live reports. The court halted the ban on nicotine products last month but the new ruling extends to protect cannabis from the ban, as well.

Gov. Kate Brown (D) enacted the ban on October 4 following the spate of pulmonary lung illness linked to vaping. Last week, the Centers for Disease Control announced they had connected the disease to vape products containing vitamin E acetate – which the New York Health Department had linked to unregulated and counterfeit cannabis vape products in September.

The Court of Appeals’ decision on flavored cannabis vapes came in response to a lawsuit against the Oregon Liquor Control Commission by Herban Industries, which sells Winberry brand vape oil products. Those products contain a proprietary blend of terpenes that copy those found in cannabis but, because those terpenes aren’t derived from actual cannabis plants, the OLCC ban on terpenes in vape products affected the firm’s products, which comprise 80 percent of the company’s revenue.

The Court of Appeals case dealing with nicotine vapes was brought by the Vapor Technology Association trade group. In that case, the appeals court agreed that the vape ban enacted by the Brown administration would “cause the entire industry in Oregon to be destroyed.”

A similar ban failed a court challenge in New York last month.

End

Sanders, Buttigieg Would Support Medical Cannabis for Veterans as President

11/15/2019

by

On Veteran’s Day, Democratic presidential hopefuls Sen. Bernie Sanders (I-VT) and Mayor Pete Buttigieg each announced support for allowing military veterans to access medical cannabis, according to an MG report.

Sanders, who has said he would legalize cannabis federally via an executive order within his first 100 days in office, said on his website that the nation has a “moral obligation to provide the best quality care” for veterans, which includes allowing Veterans Affairs doctors to recommend cannabis to their patients. Additionally, Sanders would allow servicemembers discharged from military service for cannabis possession to apply for a discharge upgrade “so they can become eligible for the full complement of services and benefits provided by the VA.”

Buttigieg, mayor of South Bend, Indiana and Navy veteran, said that his administration would “work with the VA to allow medical cannabis for service-connected diagnoses.”

“Pete will push for the legalization of marijuana on the federal level and nationwide,” the post titled “Our Shared Duty” says.

“In the meantime, recognizing the benefits of marijuana for certain service-connected issues like post-traumatic stress, Pete will support legislation that will empower VA physicians to issue medical cannabis recommendations to augment a veterans’ broader treatment plan, accordance with the laws of states where it is legal, and to conduct studies on the use of marijuana to treat pain.” – “Our Shared Duty,” Pete Buttigieg campaign website

Last month, during a campaign stop in Las Vegas, Nevada which included a visit to a dispensary, Buttigieg told the Associated Press that he has used cannabis “a handful of times a long time ago” and said he supported the end to federal prohibition.

End

Full Spectrum CBD Oil vs. Isolate

11/14/2019

by

What’s the difference between CBD sourced from hemp, cannabis, or in an isolate? Do they work differently in the body and brain? Which one should I use?

If you’ve been asking yourself these questions lately, we don’t blame you. There’s a lot to know about the cannabis plant, let alone its individual compounds. Cannabidiol, or CBD — one of the active but nonintoxicating chemicals in cannabis — is all the hype right now, which means that CBD research has been increasing as well. This is good news because cannabis prohibition has until recently made research into the plant next to impossible.

Today, a strong majority of U.S. states have legalized the use of medical marijuana; even still, we are searching for answers about how the components of cannabis are interacting to produce the effects they cause in our body. The recent increase in medical and recreational legalization makes understanding these effects, and the distinctions between the compounds, extra important.

Silhouette of a man in a sun-lit hemp field.

Hemp vs. Cannabis

Cannabis has been used for centuries for a variety of spiritual, medicinal, and recreational purposes. We can split the cannabis plant into two main categories: marijuana and hemp. Hemp originated in China and contains less than 1% of THC. Because of this, it does not have intoxicating effects and is mainly utilized for its ability to produce strong fibers — there is a record of these uses as early as 2800 BCE. THC-rich cannabis, on the other hand, originated in the Tibetan Plateau region. It has higher THC content (above 1%) which is responsible for the plant’s intoxicating effects. Cannabis is often further split into subcategories (like the subjective indica/sativa/ruderalis identifiers), but we’ll just focus on CBD from here on out.

CBD is present in both hemp and cannabis and has become widely known for its therapeutic properties treating anxiety, pain, and inflammation, and other conditions. It has been getting media attention for its medical benefit, especially after research came out that it can drastically reduce instances of seizures in children with epilepsy. Researchers think this happens by modulating the release of glutamate, the brain’s main excitatory neurotransmitter (meaning it creates a lot of activity in neurons). This is just one benefit among a multitude of CBD’s therapeutic properties.

So, which is better?

One reason a person may choose hemp-derived CBD over marijuana CBD is because hemp is federally legal in the US (as long as THC content does not exceed 0.3%) while marijuana is not. President Trump last December signed the 2018 Farm Bill, which legalized the growing of hemp, mainly for the benefit of farmers. Hemp CBD also contains little to no THC, so it may be better for children who are taking it for epilepsy, or for people who simply don’t want to feel high.

CBD Isolate

The Farm Bill legalized hemp, but details on the possession and use of CBD for research purposes still remain fuzzy. This is part of the reason why there has been an increase in the production of CBD isolate, which is different from both cannabis- and hemp-derived CBD because it only contains CBD and is devoid of the other compounds that whole-plant marijuana and hemp contain. If people are looking to use CBD for its array of therapeutic benefits but don’t want the intoxicating effects of THC, they may go with the isolate option. There is also speculation that CBD in isolate form is a more potent and more efficient form of the substance.

A row of CBD oil glass dropper bottles has been arrayed on a wooden surface against a white background.

The Entourage Effect

The entourage effect is the main reason to go for whole-plant CBD. The entourage effect posits that the chemicals in the cannabis plant work together synergistically to produce the therapeutic benefits we see in the research. This means if you’re looking for CBD to manage pain, anxiety, etc., it may actually be helpful to have a little bit of THC present because their synergy changes the therapeutic benefit compared to if you just had CBD isolate. Because cannabis legalization occurred fairly recently, there is much more research to be done on how the various compounds in cannabis, like CBG, CBN, and terpenes, affect our body and work together with CBD and THC to create the different profiles seen in cannabis. 

Choosing a form of CBD that will be right for you may take some trial and error. If you go the whole-plant route, there are a ton of options in terms of CBD/THC ratios. Certain websites now let you explore unique strains and their cannabinoid breakdown, so you can pick and choose the kind of cannabis you want. If you’d rather go for isolate, the internet is chock full of different kinds of tinctures you can now purchase legally (if they’re hemp-derived, that is. If you live in a state where recreational marijuana still isn’t legal, the laws are vaguer). There are benefits to each depending on what you’re ultimately using the CBD for, so we hope you choose wisely.

End

Trying Cannabis for the First Time: What to Know

11/14/2019

by

Cannabis policy in the United States is developing quickly; eleven U.S. states have now have established legal, adult-use cannabis markets. So, whether you are an avid user of cannabis, know people who are, or are simply curious about what all the hype is about, it’s important to know how cannabis affects your brain and body — at the very least, so you don’t end up uncomfortably stoned on the floor of some friend-of-a-friend’s apartment (don’t worry, we’ve all been there).

Knowing a little about the compounds in cannabis can help you choose the right strain with the right cannabinoids for you.

The Nitty Gritty

∆9-Tetrahydrocannabinol, or THC, is the chemical produced by cannabis that’s responsible for the feeling of being “high.” THC activates receptors in our body called cannabinoid (CB) receptors. These receptors are part of a system called the endocannabinoid system (ECS). The ECS is widespread throughout the brain and body.

Studies show that CB1 receptors present in the forebrain can affect executive functioning and decision making when activated, and those in the hippocampus play an important role in memory. CB receptors are also widespread throughout the body, present in places like the lungs, gastrointestinal tract, and the immune system. Not surprisingly then, the endocannabinoid system is responsible for a multitude of bodily processes like appetite, pain modulation, memory, mood, and a vast array of others.

There are two known chemicals naturally produced by our body that activate receptors in the ECS — 2-arachidinoyol-glycerol (or 2-AG) and anandamide. These chemicals contribute to the ECS’ role of homeostatic regulation — which is basically your body’s way of checking in with itself and making sure things don’t get too out of whack. When you smoke cannabis (or eat it, swallow it, vape it, rub it, or consume it by any other method), THC enters the brain and binds to these receptors. Because THC is now present, this makes it harder for the cannabinoids that our body naturally produces to do what they do best, and this can throw off homeostatic regulation. This is why you might get “the munchies” or find that your memory is not the best after you smoke — because THC is taking the place of the chemicals that normally regulate appetite and memory.

Benefits of Cannabis Consumption

Despite symptoms like increased appetite, fatigue, and paranoia, THC has been known to help people with various conditions, one being insomnia — studies have shown THC can partially restore the regulation of sleep. It also helps those who struggle with eating disorders by restoring appetite. And THC is just one of over 100 cannabinoids in cannabis.

Cannabidiol, or CBD, is another immensely popular cannabinoid — it is nonintoxicating, however, meaning it doesn’t make you feel high. Studies show that CBD can help people suffering from epileptic symptoms see major reductions in seizures. CBD can also help cancer patients endure chemotherapy and can weakly activate some CB receptors that regulate inflammation, but it also works through other mechanisms like the serotonin system. This floods the body with messages, which will have different effects depending on where certain receptors are located. If CB receptors in the lymph nodes are being activated as part of the immune response, the message could be telling the body to lower inflammatory responses, thus decreasing pain for inflammatory conditions (which is why CBD helps with pain modulation).

So You Want to Try Cannabis?

If you’re new to the hype, it may feel overwhelming to figure out where to begin. There are many different ways you can consume cannabis which will vary your high both in intensity and duration.

Smoking/Inhaling

Smoking cannabis is the fastest way to feel its effects because the compounds go straight into your bloodstream via lung capillaries. This means you may start to feel high within minutes; the sensation typically lasts 1-2 hours. When you smoke, the chemicals in the cannabis are carboxylated and transformed into their active forms. Most flower has THC contents between 5-25% and if you’re just starting out, it may be good to start low due to having a low tolerance. Smoking also gives you more control of your dose because you can load the bowl with as much or as little flower as you’d like.

A woman smokes a hand-rolled joint at an open window in the city. Photo credit: Tobias Tullius

Vaporizing, on the other hand, simply heats up the compounds without burning them. Many people argue that vaping is healthier for your body and can lead to a more efficient high, however this is still being studied. Another factor to consider with vaping is that most vapes use concentrated oil which can have up to 80% THC present. Because of this you will experience a substantially more intense high.

If you still want to go the vape route for its potentially better treatment of your lungs, there are dry flower vapes available in which you fill the vaporizer directly with flower just like you are loading a bowl.

Edibles

Edibles have become a popular way to consume cannabis with their bright and bold packaging and yummy infusions into foods like candies, cookies, and even beef jerky. The most important note to consider when taking the edible route is its bioavailability. When cannabis enters your digestive system, it activates more slowly because it must be processed by enzymes in your digestive tract. Many unwilling victims are all-too-familiar with the experience of taking an edible and not feeling anything 45 minutes later, so they take more. Little did they know that on its way to the liver, the body converts THC into a much more potent metabolite called 11-hydroxy-THC. Then, all at once, the intoxication spikes and they are way, way too high.

That’s why, if you are a first-time consumer, it’s recommended that you start with a low dose of 1-5 mg THC and exercise patience. It is also a good idea to have food in your stomach and to be properly hydrated.

A stack of chocolate chip cookies displayed next to a cured & trimmed cannabis nug. Photo credit: Margo Amala

Tinctures

Using cannabis in the form of a tincture follows the sublingual route of administration. Tinctures are usually alcoholic extracts containing cannabis and may be an appealing method if you want to avoid smoking. Often, a user will take a drop of the tincture under their tongue and the extract will enter the body via blood vessels there. This onset is quicker than an oral route because the compound does not have to enter the digestive system (unless you choose to add the tincture to your food or beverage).

Users may feel effects after about 15 minutes and effects should last about 90. Like inhalation, this route of administration gives you some dosing freedom because you can control how much you want to take.

Topicals

The last common way to consume cannabis is with topical lotions and salves. This method is useful for localized or chronic pain because the cannabis-infused rub can be applied in a specific region and can permeate the skin there to benefit that specific area. Many people use topicals for arthritis, inflammation, or general muscle soreness. Even if the lotion or salve contains THC, you will not feel high from this route of administration because the cannabinoids do not typically penetrate deep enough into the bloodstream to cause intoxicating effects.

A CBD-infused topical rub is displayed next to several cannabis leaf trimmings. Photo credit: CBD Infos

What about CBD?

Because of the expanding market, most if not all of these consumption methods can involve a variety of CBD:THC ratios. There are tinctures derived from hemp, meaning they are CBD dominant and legally cannot contain more than 0.3% THC. You can get flower, tinctures, and salves that have 1:1 or 2:1 THC:CBD ratios. You can even find flower that is CBD-rich with only trace amounts of THC if you don’t like the feeling of being high but still want the therapeutic benefits of cannabis. The cannabis world is your oyster — especially if you live in one of the 11 states that have legalized for adult use.

The Bottom Line

Scientists have learned a lot about cannabis and its effects since THC was first discovered in 1964, and even more research coming out about the other main cannabinoids present in cannabis. However, because each brain works a little differently, the specific cannabis sample that may help you with anxiety problems could have a different effect on someone else.

If you’re new to cannabis consumption, think about the method you want to begin with and start with a low dose. Be patient with the process and keep in mind that not all endocannabinoid systems are made the same. 

End

California Study to Research Safe Pesticide Levels for Cannabis

11/14/2019

by

In January, researchers at the California Department of Pesticide Regulation and Sacramento State will offer cannabis users a $20 gift card in exchange for them anonymously sharing how much cannabis they consume in an effort to help determine accurate safety levels for pesticides used for cannabis cultivation, according to a Capital Public Radio report.

Charlotte Fadipe, a spokesperson for the regulatory agency, said neither federal nor state regulators have any good data on pesticide use when it comes to cannabis and, in order to calculate those levels, officials need to know how much cannabis people are consuming.

“We had talked to people in other states … and looked at tobacco levels, but we didn’t actually have any data on cannabis consumption itself. If it turns out that people are eating a lot more cannabis products than we initially thought, we might need to lower the levels.” — Fadipe, to CPR

The agency plans to set up tables at dispensaries throughout the state and ask customers to take a 20- to 60-minute anonymous survey detailing how much cannabis they smoked, ate, or used in topicals, and where they purchased the products and whether they shared them with others. Interested individuals can also sign up for the survey online.

According to CDPR data, there are 36 active ingredients allowed to be used in cannabis cultivation in the state; another 46 are banned. Following legalization in the state, the failure rate for pesticide levels in the state’s industry was about 20 percent but by November that figure dropped to about 14 percent, according to an Associated Press report.

End

Illinois Awards First Adult-Use Dispensary Licenses

11/14/2019

by

Illinois officials have issued 14 “same-site” adult-use cannabis licenses and the locations will be the first to offer recreational sales beginning January 1, ABC 7 reports. The businesses are the first in the state to be licensed to sell recreational cannabis.

Three of the licenses were issued to operators in Chicago – MedMar, Dispensary 33, and Maribus of Chicago – while the rest were issued to current medical cannabis sellers in Buffalo Grove, Mundelein, Elmwood Park, Naperville, Joliet, Canton, Champaign, Effingham, Grandview, and Rockford.

The companies who received licenses are allowed to sell to non-medical patients from their current storefront and are permitted to open another adult-use-only dispensary at a second location. According to the report, officials plan to award 75 additional adult-use licenses to new, and social equity, applicants next year. In all, there are currently 55 medical cannabis dispensaries in Illinois.

In September, the state granted its first adult-use cultivation licenses to Cresco Labs, PharmaCann, Ascend Illinois, and Columbia Care. Cultivation applicants had to pay a $100,000 application fee and commit to participating in the social-equity program included in the law. The Illinois Department of Financial and Professional Regulation has also named so-called “responsible vendors” that will provide health and safety training to the state’s cannabis dispensary operators.

Adult-use sales are set to begin in Illinois on January 1 under a legalization bill signed earlier this year.

End

Chicago Mayor Proposes Major Cannabis Policy Changes

11/14/2019

by

Chicago Mayor Lori Lightfoot has proposed a plan to reduce penalties for unlawful cannabis possession and end the police policy of automatically impounding vehicles from drivers in possession of cannabis, NBC Chicago reports. The move is a step toward aligning the city’s laws with the recreational cannabis laws passed by the state legislature in June.

Under the proposal, penalties for unlawful possession would be reduced from $500 for first-time minor offenses to $50. Under the state’s cannabis law reforms, adults can possess up to 30 grams of flower and transporting under those limits in a vehicle is permitted, as long as the products are in a sealed container.

The plan would also amend Chicago Police enforcement rules to educate officers on the new state law and outline activities that will remain illegal such as smoking cannabis in any public place, in a vehicle, or other areas protected by the Smoke Free Illinois Act.

“For far too long, unjust and outdated cannabis enforcement laws have adversely and disproportionately affected Chicago’s black and brown neighborhoods. The legalization of cannabis in Illinois presents a powerful opportunity to reform our policies, and right these generation-old wrongs of the past as we work to ensure a safe, fair, and responsible implementation in Chicago.” – Lightfoot, in a statement, via NBC Chicago.

Chicago Police Department Eddie Johnson said that the training will occur “over the coming months.”

“By overturning outdated cannabis laws, Chicago’s police officers will finally have a smart, sensible, and safe framework that prioritizes public safety of all residents in this city,” he said in a statement to NBC Chicago.

The new city rules would take effect on January 1 – the same day the statewide laws go into effect.

End

The Vape Crisis Is a Byproduct of Federal Cannabis Inaction

11/14/2019

by

Editor’s note: This op-ed was contributed by Brett Husak, a founding partner of the cannabis-focused payment processing service Flow Payments.

At the end of August, a health advisory released by the Centers for Disease Control and Prevention (CDC) linked the use of e-cigarette products with severe pulmonary disease. As of last week, the CDC had confirmed over 2,000 cases of lung injury and 39 deaths related to vaping.

In response, Massachusetts declared a public health emergency and became the first state to enact an all-out ban on the retail and online sales of vape products. Gov. Baker outlawed the sale of all nicotine and cannabis vaping products for four months, while the state continues to examine the root cause of these illnesses. The states of Washington and Oregon followed suit with their own bans. These extreme measures were enacted before the CDC had even identified the primary culprit, vitamin E acetate, which recently surfaced as a cutting agent for unregulated cannabis vape products.

In fact, it appears that most if not all of the cannabis-related cases were caused by products obtained illegally, which is the first indicator that the statewide bans are an overreach and overreaction. The regulations seem overly harsh especially due to the fact that alcohol and cigarette-related deaths in our country are not insignificant — according to the CDC, cigarette smoking accounts for over 480,000 deaths annually. That is the equivalent of about 1,300 deaths each day. Meanwhile, excessive alcohol use takes the lives of around 88,000 people per year in the U.S.

Globally, the number of vapers has been increasing steadily over the past few years, while the number of cigarette smokers has simultaneously decreased. Public health experts agree that even with the current risks, e-cigarettes carry only a fraction of the dangers of traditional cigarettes. The vape market combined worth is estimated to be close to $20 billion worldwide and it is a progressively important product line in the cannabis space as well.

In the thriving legal markets across America, vape products represent approximately one-third of cannabis business’ sales. It is typically the second-most frequently sold product, only trailing behind cannabis flower products. However, since this latest health scare, analysts have noted a 15% drop at least in nationwide market share during the month of September and in some states, such as Oregon, a decrease of 60%. This needless and unnecessary damage to the revenue streams of countless dispensaries nationwide would clearly be avoided with federal legalization and regulation. 

It is interesting to note that nicotine vapes are regulated by the Food & Drug Administration (FDA), but nicotine vape liquid is simple to replicate in an illegal manner. Nicotine extract can be purchased online in bulk and mixed with additives, flavors, and thickeners, whereupon it is then distributed to certain retailers.

Vapes containing cannabis, however, are legal in certain states but are not regulated by the FDA and cannabis remains listed as a Schedule 1 controlled substance alongside heroin and LSD. FDA scientists, therefore, are unable to assist states with research, testing, and safety guidelines, making it difficult for legal cannabis businesses to supersede the criminal market. Consequently, legitimate manufacturers are required to submit plants or extracts to state regulators for contamination and quality tests, which significantly raises the costs, upwards of 5 to 7 times, of what consumers can otherwise find on the black market. Illegal sellers can also tamper with cartridges and mix in substances like caffeine or alcohol to extend their supply.

An easy fix

The facts support the argument that a well-regulated marketplace for vape products would establish quality control, better research, and deter consumers from acquiring illegal and counterfeit products. Furthermore, national standards for cannabis vape products would create a baseline for comparisons, which is so essential in today’s marketplace. Finally, we have witnessed that states can only do so much in the area of regulation, and their limitations are one more reason the federal government needs to remove cannabis from the Controlled Substances Act, fund state and national medical investigations, and finally regulate this plant.

 

End

Canadian Cannabis Firms See Flower Prices Decline

11/13/2019

by

British Columbia, Canada-based Tilray sold 10,848 kilogram-equivalent of cannabis domestically and internationally during the last quarter but reported a 30 percent decrease in the net price-per-gram to $3.25, the Financial Post reports. The drastic drop in per-gram prices led to a net loss of $35.7 million for the quarter, which ended September 30, up from their $18.7 million net loss a year ago.

The company’s revenue was up $12 million for the quarter to $67.8 million, which CEO and President Brendan Kennedy said “reflects positive business trends” paired with the firm’s “sequential gross margin expansion.”

Just 30 percent of Tilray’s total revenue for the quarter was derived from adult-use sales – a 2 percent decline from the previous quarter.

Cronos Group Inc., another licensed producer in Canada, sold more than 3,000 kilograms of cannabis during the quarter with revenues of $12.7 million; however, the majority of those sales came from wholesaling to other licensed companies rather than private and provincial-run retailers, according to the report.

The company reported a per gram price of $3.75, which is 42 percent lower than three months ago. Cronos recorded an overall profit of $788 million for the quarter but that was mostly due to proceeds from a one-time $835 million revaluation of derivative liabilities. Their net revenue was 25 percent higher than the previous quarter, while the company’s adjusted gross margins fell 12 percent to 41.5 percent, according to the Post.

Organigram Holdings reported a 34 percent decline in net revenues to $16.3 million and forecast a write-off of $3.7 million due to “product returns and adjustments” the report says.

The figures for a few of the nation’s largest companies – financial reports for Canopy Growth Corp. and Aurora Cannabis are due out later this week – come about a month before Canadian retailers are expected to begin selling edibles and alternative cannabis products, which could be a boon to the bottom lines for licensed producers throughout the Great White North.

In July, a Statistics Canada report found that illicit cannabis products cost, on average, about $4.72 less than their legal counterparts and that 59 percent of cannabis consumers in the nation bought cannabis illegally at some point during the year.

End

Massachusetts Cannabis Regulators ‘Quarantine’ Vape Products

11/13/2019

by

The Massachusetts Cannabis Control Commission has “quarantined” all vaporizers except for those “designed to exclusively vaporize marijuana flower for medical use patients.” The move comes less than a week after the federal Centers for Disease Control linked vitamin E acetate to the vaping-associated pulmonary injury. The substance was found in illegal and counterfeit cannabis vape pen products.

Last month, following the rise in reports of the illness throughout the U.S., Gov. Charlie Baker (R) ordered a four-month ban on the sale of both cannabis and nicotine vaping products. That ban was, ultimately, challenged in court. Last week, a state Superior Court judge overruled part of the order, deciding that medical cannabis patients could buy vape products unless the CCC ruled otherwise, according to a Boston Herald report. The judge said that only the commission had the authority to ban medical cannabis products.

The CCC last month announced that they would require more detailed labeling of all cannabis vape cartridges, extracts, and concentrates amid the outbreak. Under those requirements, manufacturers must include on their ingredient list every additive used in the product, including thickening agents and specific terpenes.

“Current manufacturing processes and information available to the Commission do not definitively preclude the possibility that licensed vaporizer products contain vitamin E acetate or other potential ingredients of concern.” — CCC, “Quarantine Order Applying to Vaporizer Products,” Nov. 12, 2019.

Dr. Peter Grinspoon, a primary care clinician at Massachusetts General Hospital, said during a press conference that the ban could “drive everyone to the illicit market” which is where people were likely getting the products that were making them sick in the first place.

Cannabis Control Commissioner Shaleen Title said the ban is not “open-ended” and is “based on credible evidence.”

End

Missouri Proposes Cash Ban for Cannabis Company State Payments

11/13/2019

by

The Missouri Department of Health and Senior Services has proposed banning the state’s medical cannabis businesses from paying their taxes, fees, and penalties in cash. DHSS spokesperson Lisa Cox told 41 Action News that “large amounts of cash-handling will create challenges for state agencies and may create safety issues for medical marijuana facility employees.”

“As we have done with all of our rules, we have put this out for public comment in order to hear from the public whether they have concerns with this proposal and, if so, what they are. The emergency rule has not been filed, and we will consider all comments we receive before determining whether to file it.” – Cox, to 41 Action News

Specifically, the rule allows medical cannabusinesses to “pay all fees, penalties, or taxes due to Missouri state governmental agencies via any payment method normally acceptable to those agencies other than cash.”

Jack Cardetti, spokesperson for the Missouri Medical Cannabis Trade Association, called it a “cut and dry rule” but said it would be problematic “because access to banking is one of the more difficult things” in the space.

“You can’t pay your taxes and fees despite being a legal business and cash being a legal tender,” he said to 41 Action News

In the report, Joe Leonard, owner of Bee Valley Farms, said he has been unable to find a bank to work with as financial institutions that would take cannabis industry clients “are few and far between” and “most of them have a limit on how many [cannabis] businesses they’ll take on.”

Last month, the state received more than 2,100 medical cannabis operator applications, of which 1,163 were for dispensary operation and 554 were for cultivation licenses. According to 41 Action News, Missouri’s medical cannabis industry is expected to create 4,000 jobs and bring in more than $500 million.

Cox did not offer a timeline on whether a decision on the rule would be made but said the agency would “review all feedback and evaluate further if needed.”

End

FDA Approves Yale Medical Cannabis Human Trials

11/12/2019

by

The Food and Drug Administration has granted approval to the Yale School of Medicine and CT Pharma for human drug trials to study the efficacy of cannabis-based medicines, according to a Connecticut Public Radio report. The study will be the first with FDA approval to test cannabis on human subjects.

Yale University School of Medicine’s Dr. Rajita Sinha, the lead researcher for the clinical trial, said the studies will attempt to figure out how medical cannabis works, who it works for, what symptoms can be alleviated, dosages, and whether there is “a need for refinement.”

Michael Fedele, board chair of the Portland, Connecticut-based CT Pharma, told CPR that he hopes the study will result in the first FDA-approved cannabis-based medicine to be manufactured in the U.S.

“Right now, a company in England (GW Pharma) has the only FDA-approved, plant-based medical marijuana product (Epidiolex) in our market. That really shouldn’t be the case with respect to American companies.” – Fedele, via CPR

According to the FDA, the agency “is aware that there is considerable interest in the use of marijuana to attempt to treat a number of medical conditions” and does support “research into the medical use of marijuana and its constituents through cooperation with other federal agencies involved in marijuana research.”

According to a Hartford Business Journal report, Yale indicated the first phase will examine men and women between the ages of 21 to 45 who use cannabis recreationally but do not qualify for medicinal use. The second phase will focus on men and women ages 21 to 60 with chronic pain. Each participant will receive a placebo, CBD and THC. Side effects such as vital signs of heart rate, systolic and diastolic blood pressure and clinical symptoms will be assessed.

End

Neil Young’s U.S. Citizenship Application In Limbo Due to Cannabis Use

11/12/2019

by

Canadian singer-songwriter Neil Young is applying for U.S. citizenship but his cannabis use might stand in his way.

In a blog post last week, Young, 73, said he recently applied for citizenship and “passed the test” but must pass another test “due to [his] use of marijuana and how some people who smoke it have exhibited a problem.”

Young pointed to a 2019 policy alert from then-Attorney General Jeff Sessions regarding “controlled substance-related activity and good moral character determinations.” The alert specifically says that “violation of federal controlled substance law, including for marijuana, remains a conditional bar to establishing good moral character for naturalization even where that conduct would not be an offense under state law.”

“An applicant who is involved in certain marijuana related activities may lack GMC if found to have violated federal law, even if such activity is not unlawful under applicable state or foreign laws.” — April 29, 2019 U.S. Citizenship and Immigration Services policy alert

Young resides in California, where cannabis is legalized for adult use. In the post, Young indicated that he wants “to be a dual citizen and vote” but doesn’t think that he’ll be able to remain in the U.S. during the proceedings.

“I sincerely hope I have exhibited good moral character and will be able to vote my conscience on Donald J. Trump and his fellow American candidates, (as yet un-named),” he wrote.

In a statement to CNN, USCIS declined to comment on Young’s application, noting that “individuals who commit federal controlled substance violations face potential immigration consequences under the Immigration and Nationality Act.” The agency reiterated that the policy “applies to all foreign nationals regardless of the state or jurisdiction in which they reside.”

End

High-Profile Rhode Islanders Announce Cannabis Investments

11/12/2019

by

Several high-profile Rhode Islanders are investing in the state’s medical cannabis and hemp industries, according to a NewportRI.com report. Among the names linked to cannabis investments in the state are former CVS Health CEO Thomas Ryan, former gubernatorial candidate James Bennett, former Beacon President and CEO James Rosati, and the parents of professional golfer Brad Faxon.

Ryan, a longtime philanthropist in his home state, is listed on documents from CanWell, a spinoff of the Warwick-based Summit Medical Compassion Center, which hopes to lead the state’s “alternative dosage” medical cannabis market. So-called ‘alternative dosage’ companies are interested in other methods of ingesting cannabis besides smoking.

In 2014, CVS stopped selling tobacco products in its stores, but Ryan left the company in 2011.

Bennett ran for governor in 2002 but was handily defeated in the Republican primary by Donald Carcieri, who ultimately defeated Democrat Myrth York in the general election, according to state election data. Bennett also once headed the Rhode Island Convention Center Authority. Bennet indicated his daughter works in the medical cannabis space in Florida.

“Big tobacco, the pharmaceutical companies, they’ll all looking to get in. It seemed like a good, balanced investment.” – Bennett to NewportRI.com

Brothers Stephen and Gerald Harrington, a lawyer and Washington lobbyist and Democratic political fundraiser, respectively, are also listed on CanWell documents. Stephen told NewportRI.com that a family member undergoing chemotherapy for cancer “relied on” medical cannabis. He added that the people brought together at CanWell “are Rhode Island people.”

They understand this is a growth industry and they are committed to a best-practices approach,” Harrington said in the report.

Brad and Eileen Faxon, the parents of the Barrington native pro golfer who shares a name with his father, are linked to Kelsey Green, a Warwick-based cultivation firm which is yet to be fully licensed to operate, and affiliated company, Green Reservoir Inc, according to documents filed with the state Department of Business Regulation, outlined by NewportRI.com.

A bill to legalize adult cannabis use was introduced last year but never made it out of committee. Gov. Gina Raimondo (D) said earlier this year that she will include legalization in this year’s budget proposal.

End

CDC Confirms Vitamin E Acetate’s Link to Vaping Crisis

11/11/2019

by

The Centers for Disease Control (CDC) has linked vitamin E acetate to the worrisome trend of vaping-associated pulmonary injury (VAPI) that has led to thousands of hospitalizations and dozens of deaths throughout the country, Leafly reports. The compound has emerged as a popular cutting agent for illicit cannabis vaporizer products made and sold on the unregulated markets.

“Recent CDC laboratory testing of bronchoalveolar lavage (BAL) fluid samples (or samples of fluid collected from the lungs) from 29 patients with EVALI submitted to CDC from 10 states found vitamin E acetate in all of the BAL fluid samples.  Vitamin E acetate is used as an additive in the production of e-cigarette, or vaping, products. This is the first time that we have detected a potential chemical of concern in biologic samples from patients with these lung injuries.” — Excerpt from CDC website (emphasis included)

Dr. Anne Schuchat, the CDC’s principal deputy director, confirmed the agency’s breakthrough during a Friday press briefing but said more tests will be necessary. “These new findings are significant,” Dr. Schuchat said. “We have a strong culprit.”

So far in 2019, at least 39 patients who were treated for VAPI have died, while more than 2,050 affected individuals — mostly young men — have been hospitalized. According to the CDC, symptoms of VAPI may develop over the course of just a few days to up to several weeks. Patients have reported the following primary symptoms:

  • cough/shortness of breath
  • chest pain
  • nausea/vomiting
  • abdominal pain
  • diarrhea
  • fever/chills
  • weight loss

In September, the CDC disclosed that the vast majority of patients suffering from VAPI had used unregulated THC vaporizer products. The vitamin E compound was identified previously as a potential culprit and was found in unregulated cannabis vapes throughout New York. The compound, however, has not yet been identified in state-regulated cannabis market products — one dispensary in Seattle even tested the vaporizer products on its shelves for vitamin E acetate and found a 100 percent pass rate.

End

Cannabis Legalization Revenues in Minnesota Could Reach $300M

11/11/2019

by

Adult-use cannabis legalization in Minnesota could bring in $300 million in taxes for the state over five years on sales of $1.12 billion, according to a MinnPost report. The estimate, by Sal Barnes of the Marijuana Policy Group during last week’s CannConMN Symposium, also suggests that the industry would create 20,000 direct and indirect jobs statewide.

During his keynote remarks, Barnes estimated that there are 115,000 daily cannabis users in Minnesota and cannabis “follows the 80-20 rule” and “20 percent of the consumers produce 80 percent of the market.”

According to the report, about 7.9 percent of Minnesotans say they use cannabis at least once a month – which is below the 9.5 percent national average and the 20 percent post-legalization rate in Colorado. Barnes said that is a difference of 341,000 consumers in Minnesota and 860,000 in Colorado as both states have a near-equal population of adults 21-and-older.

“If you guys are going to create a $1.12 billion adult-use market, the number one thing you can do is have the appropriate amount of licenses for cultivation, manufacturing and retail. There is a delicate balance … on one side is Oregon with unlimited amount of licenses and on the other side is Colorado, where they try to parse out the types of licenses. You have to make it competitive enough to compete with — and preferably end — illegal black markets, but not so uncontained that there is too much supply and no profits for businesses.” – Barnes, during his CannConMN keynote remarks, via MinnPost

At the conference, Minnesota House Majority Leader Ryan Winkler (D) predicted that House Democrats would introduce a bill for the 2020 session and predicted that while it would pass the Democratically-controlled House it would likely falter in the Republican-controlled Senate.

A legalization bill was introduced in the state Senate last year but did not make it out of committee.

End

UK Approves Sativex, Epidiolex for NHS Prescription

11/11/2019

by

The United Kingdom’s National Health Service advisory body, the National Institute for Health and Care Excellence, has approved cannabis-derived pharmaceutical drugs Sativex and Epidyolex for use by the NHS, the BBC reports. They are the first cannabis-based medicines to be approved for use by the NHS.

Epidiolex was approved for use in Europe in September, but NICE initially said it was not valued for money and did not recommend CBD for prescription on the NHS. The GW Pharmaceuticals-manufactured drug costs between £5,000 ($6,439.90) and £10,000 ($12879.75) per patient each year but the company has agreed to a discounted price with the NHS.

Sativex, a mouth spray that contains a mix of THC and CBD also manufactured by GW Pharma, has been available on the NHS in Wales since 2014 but regulators in England said it was not cost-effective at a price of £2,000 ($2575.95) a year per patient. The approval in England is for treating multiple sclerosis, specifically the muscle stiffness and spasms associated with the condition. Under the approval, doctors will not be allowed to prescribe it to treat pain.

In 2018, UK law was changed to allow specialist physicians to prescribe cannabis-based medicines, but most doctors have been unwilling to write prescriptions for the medicines because they have not been through randomized controlled trials – both Epidiolex and Sativex have gone through the trial process.

Genevieve Edwards, from the MS Society, said the organization has campaigned for access to Sativex for years and said it is “brilliant NICE has finally listened.” However, she said the guidelines don’t go far enough because no cannabis-based treatments were recommended to treat pain.

According to a recent YouGov poll conducted for the Centre for Medicinal Cannabis and Cannabis Advocacy Support Services, 2.8 percent of Britain’s adult population are using cannabis to treat chronic medical conditions but they must obtain it illegally.

End

Poll: 2.8% of UK Adults Use Cannabis to Treat Chronic Medical Conditions

11/11/2019

by

About 2.8 percent of Britain’s adult population — about 1.4 million people — is using cannabis to treat chronic health conditions, according to a YouGov poll conducted for the Centre for Medicinal Cannabis and Cannabis Advocacy Support Services, outlined by the Independent.

More than 80 percent of the survey respondents were from England, although the survey results represent adults in the general population living in England, Wales, and Scotland.

More than half of the survey respondents indicated they used cannabis on a daily basis while just under a quarter said they used cannabis on a weekly basis. The survey found that 44 percent said they spend up to £99 ($127.50), while about one-fifth said they spend between £100 ($128.80) and £199 ($256.30). Another 9 percent said they spend nothing on cannabis, suggesting they grow it themselves or get it for free from friends and family.

Dr. Daniel Couch, medical lead at the CMC, said the survey is the “first time” the nation has “reliable, representative data regarding the number of people in Britain using cannabis as a medicine.”

“The findings are astounding and present a national challenge,” he said in an interview with the Guardian.

Ann Keen, chair of the CPASS and fellow of the Queen’s Nursing Institute, said “safe” solutions for medical cannabis access “must be explored as soon as possible.”

“[The statistics] demonstrate the vast number of patients in the UK with chronic and debilitating diagnosed conditions who feel they have no choice but to expose themselves to all the risks of accessing a medicine that works from the criminal market.” — Keen, to the Guardian

The report comes the same day as the National Health Service advisory body, the National Institute for Health and Care Excellence, approved cannabis-derived pharmaceutical drugs Sativex and Epidiolex for use by the NHS.

Medicinal cannabis remains illegal throughout the United Kingdom.

End

California Suspends 394 Cannabusiness Permits

11/08/2019

by

California has suspended 394 cannabis business permits, affecting about 5 percent of the state’s legal supply chain, the Associated Press reports. The move will temporarily reduce the number of legal cannabis operators in the state amid a crackdown on unlicensed operations.

The suspensions include retailers, distributors, delivery services, and microbusinesses that have not completed steps required for the seed-to-sale tracking system, Metrc, according to the Bureau of Cannabis Control.

Bureau spokesman Alex Traverso said all of the suspended businesses had ample time to complete the requirements, and the companies must stop all operations until their licenses are reinstated. He indicated that the requirements only take about three hours to complete and doesn’t think any of the companies will refuse of comply.

“These were just the stragglers. It turned out to be a couple extra months that we gave them. It’s just a matter of getting a password, getting a log-in and doing the training.” – Traverso, to MJBizDaily

California has 7,392 licensed cannabusinesses. The bureau oversees 2,630 companies with either provisional or annual licenses. The state Department of Public Health oversees another 932 manufacturers, while the Department of Food and Agriculture oversees 3,830 farmers.

Josh Drayton of the California Cannabis Industry Association said the action incentivizes the illicit market which he called “a much more affordable option” for consumers. He added that what regulators and the industry should be focused on is “access and affordability.”

According to the MJBizDaily report, the suspensions apply to 63 retailers, 61 delivery services, 47 microbusinesses, 185 distributors, and 29 distributors that are transport-only.

End

Drake Launches Cannabis Company with Canopy

11/08/2019

by

Hip-hop star Drake, real name Aubrey Drake Graham, is partnering with Canadian cannabis company Canopy Growth to launch More Life Growth Company in his hometown of Toronto, Ontario. Drake, on Wednesday, posted the logo for the company to Instagram and his team handed out flowers throughout the city before making the announcement.

“The idea of being able to build something special in an industry that is ever growing has been inspiring. More Life and More Blessing.” – Drake, in a statement

Mark Zekulin, Canopy Growth CEO, said the firm was “extremely inspired” with Drake’s vision.

“Drake’s perspective as a culture leader and entrepreneur combined with Canopy Growth’s breadth of cannabis knowledge will allow our new company to bring an unmatched cannabis experience to global markets,” Zekulin said in a statement.

Drake will hold a 60 percent ownership interest in the new company, while Canopy will retain 40 percent. Canopy Growth will provide all of the day-to-day operations and maintenance of the More Life facility and will retain all of the rights to distribute the product cultivated at the facility.

It’s the latest celebrity to join forces with Canopy, who has also partnered with Seth Rogen and Evan Goldberg, the creators of the film ‘Pineapple Express,’ Martha Stewart, Snoop Dogg, Jay-Z, Melissa Etheridge, and Whoopi Goldberg.

According to the More Life trademark filing, in addition to cannabis, the company also plans to sell herbal teas and medicinal herb extracts, rolling papers, hookahs, pipes, and clothing.

End

Ex-Canopy CEO Bruce Linton Lands at Vireo as Executive Chairman

11/08/2019

by

Bruce Linton, the former founder and co-CEO of Canada’s Canopy Growth Corp., has joined Vireo Health as executive chairman, the firm announced on Thursday. In the role, Linton will work closely with Vireo CEO and Founder Kyle Kingsley to “spearhead the company’s strategic decision-making, capital markets activity and future partnerships.”

Linton was ousted from Canopy in July. Linton said he had fallen out of favor with the four directors on Canopy’s board that were installed by alcohol distributor Constellation Brands, which holds about 38 percent of the company’s stock.

In a statement, Linton said he chose to take the role because he shares Vireo’s “ambitious vision for the future of cannabis,” which he said included creating the “next generation of cannabis products.”

“We are confident Vireo can become a top U.S. producer and distributor of high-margin, proprietary products within the next several years and create unprecedented long-term shareholder value.” – Linton, in a statement

In an interview with MarketWatch, Linton said Vireo’s science-backed approach met his “criteria for best practices and a valid methodology.”

“This struck me as a company doing a lot of good work that nobody knows about,” he said.

Kingsley said there “is no greater endorsement” than Linton joining the company’s board.

“Bruce’s extraordinary track record in the cannabis industry speaks for itself and I am incredibly excited about the opportunity to work closely with this industry trailblazer,” Kingsley said in a statement.

As executive chairman, Linton will receive incentive-based compensation in the form of three tranches of incentive warrants to acquire up to 15 million subordinate voting shares in Vireo – which is based in Minnesota. Chad Martinson, who has served on the company’s board since March 2019, resigned from his position in conjunction with Linton’s appointment.

According to MarketWatch, Vireo shares rose 26 percent on the news of Linton’s appointment.

End

Marcus Pfeifer: CBD Supplements for Pets

11/07/2019

by

As the latest guest to come on the Ganjapreneur.com Podcast, Marcus recently joined our host TG Branfalt for a conversation about pets, pet health, and the burgeoning hemp industry. In this interview, Marcus discusses the lack of research into cannabinoid medicines for both humans and animals, shares the story of how he and his wife decided to enter the space after seeing first-hand the benefits that CBD had for their own dog, explains the company ethos and why they are patient in pushing out new product lines, and more!

Tune in via the media player below — you can also scroll further down to find a full transcript of this week’s Ganjapreneur.com Podcast episode!

Listen to the podcast:

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’s 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, I’m joined by Marcus Pfeifer, he’s the CEO of Homescape Pets, which offers full-spectrum organic hemp extracts for pets. Pfeifer created the company in 2017 with his wife, Nana. How you doing this afternoon, Marcus?

Marcus Pfeifer: I’m doing great. It’s a beautiful day in Colorado.

TG Branfalt: It’s a beautiful day here in the Adirondack Mountains, too. We’re poised for some bad weather here shortly, but let’s not talk about the weather, man. Let’s talk about you. Tell me about yourself. Tell me about your background and how you ended up in the cannabis space.

Marcus Pfeifer: Yes, sir. Okay, so my wife and I got married in 2014, and she is an entrepreneur basically by upbringing. Her family kind of had been in that vein in one way or another most of their lives as well. So, she was pretty well-entrenched in that. And we decided that we did not want to work corporate-type jobs. We wanted to try to start our own business.

One thing led to another, and years down the road, we ended up starting Homescape Pets, but the background to that, the reason our interest in pet health and that sort of thing came about, when I met her, she had a little black schnauzer. And obviously, if you want in, you’ve got to be accepted by the pets and the family. So, yeah.

We started there. And the dog was a rescue from her time in Las Vegas, and she was very skittish around men and so forth, so there was a warming period for sure. But I’ll tell you, after we were together for a few years and we got married, my relationship with the dog was obviously priceless. It was very important to me because I hadn’t had a pet in my adult life.

TG Branfalt: Oh, wow.

Marcus Pfeifer: Up until her. Yeah. Little Beau. That was her name, Beau. And so, she was already old by the time I met the two ladies. She was very healthy though, to that extent. Now, a few years down the road, she started having sneezing fits and so forth. It turned out that she was having a lot of bright red blood when she was sneezing, and it really freaked us out.

And we took her to the vet and that’s when we found out that she had developed a nasal tumor. And after doing research, we found out that it was very likely the case, and by the time its diagnosed, it’s usually well down the road and it was basically going to end up being palliative care and taking care of her was going to be a solid about three months, is what everything appeared to be, you know, her course before she passed. And it was almost three months to the day.

TG Branfalt: That’s terribly sad.

Marcus Pfeifer: Yeah, you know, I know when we talk to pet people, they’re very passionate about their pets. And going through that, I tell you what, I embarrassed myself about what a blubbering fool I was after that experience at the vet. We put her down because we didn’t want her to suffer. She was already losing mobility. She couldn’t walk.

I think the most difficult part was … You know, we obviously were very close. She was a very affectionate dog. Well, she wasn’t affectionate per say. It was just her schnauzer personality. But she spent a lot of time checking on us back and forth, all day. And the tumor started effecting her brain just by proximity, and you would reach down to pet her and she would lunge back as though you were about to strike her. It was because her perceptiveness of what was going on around her was being directly effected by the tumor. And to reach down to pet your little fur baby and have it cringe back in fear from you like you had just hit her across the nose was probably the most difficult part for me.

Well, so that prompted us to start doing a lot more research, even though she had already passed. It was just the questions about, “What could I have done differently?” And the fact was that there probably was an awful lot, you know? Feeding your pets more healthy choices, and this, that, and the other, making sure you read labels on the products that you feed them. A holistic approach to health. There’s just a lot of things to learn and it was just hard to learn it in the past tense like that. So, that was how we got into pet health, was by the loss of our pup.

TG Branfalt: I mean, people who listen to this show, and I mentioned it to you, they know I have a dog. And actually, as I’ve said, I’ve given him CBD since he was a puppy just sort of based on some of the stuff I had read. I had lost a cat pretty shortly before I got the dog, and I sort of went through the same process of, “What could I have done? What could I have done?”

And in that process, too, in a similar way, and being in this industry, I noticed a lot about the sort of possibilities of CBD and its potential value for pets. And so, I decided to give my dog a small dose of CBD when he was a tiny guy because I was like, “Homeostasis.” This is important, right? For their health.

So, at what point did you find out about CBD and its potential value?

Marcus Pfeifer: Well, honestly, we were so absolutely ignorant about health care for pets, and this, that, and the other. Obviously, we’re completely dependent on a veterinarian’s advice. And I would never discourage that, but I think that there is a certain degree of necessity that you take personal ownership, not only of your own personal health, but of pet’s health. The first introduction to that was when we took Beau to a holistic vet when we were in Atlanta.

And they were kind of … We had already got the diagnosis and we were really trying to decide what the next step was for her care. I think we had already recognized that we weren’t going to put her through all of the cancer treatment, this, that, and the other. The dog was 12 years old. I felt like … It was an absolutely heart-wrenching decision to manage that too.

But the holistic vet recommended and provided us a CBD product at that time, specifically intended for pets. And so, we were like, “Oh my gosh, this is amazing.” And at that time, we were totally ignorant about CBD products, much less what was illegal. But it was a very … For my personal use, I am definitely familiar with cannabis. We’ll just put it lightly like that.

But nothing about CBD. I did not understand cannabinoids in any way, shape or form. So it was quite shocking for us to have the vet recommend this product. And so, we purchased it from them almost like it was a prescription. And there was no question that it was helping her. She seemed to be more … Obviously, it hard to read an animal’s reaction, but Beau was a very stoic dog. She did not demonstrate discomfort or pain very easily. And her behavior changed in that. She was more active. She seemed to be returning to what we might consider normal behavior.

But you know, it was a short road for her deterioration. She got to where her hind legs didn’t work well at all. She couldn’t stand up well. It was … I don’t want to relive that right now. But the CBD definitely seemed to help. There was little question in our mind.

TG Branfalt: I mean, all that we really have to work on … You know, we can’t talk to our pets. There’s not a lot of studies out there. All we really have to work with is, you know, anecdotal sort of stories. And I’ve tried your … What is it? Man, I’m blanking on it.

Marcus Pfeifer: The Restful Pet?

TG Branfalt: The Restful Pet. And you know, he’s a black lab. He’s a year and a half. And he does calm down when you use it in the recommended dose. And again, I’ve used CBD but it’s hard to really know when you have a healthy animal who you’re giving CBD-

Marcus Pfeifer: That’s exactly right.

TG Branfalt: You don’t know it. So, what is the question that you get asked most often by pet owners since you’ve entered the space? And is there something specific that people are seeking to treat by and large?

Marcus Pfeifer: Oh, sure. You know, so, our initial offerings, we grew our line to three products. And the purpose for those was basically three branches of things that most animal care branches into in one way or another, short of it being a serious disease state or a condition. So basically, it’s relaxation, inflammation, and mobility. And I think our customer base is kind of self-defined by who was purchasing and what they were purchasing, and their responses as far as reviews go.

And so, what it turned out to be was primarily middle-aged to senior pets. And all of our products got fantastic reviews. We already liked the idea of using hemp products, and once we did a little research into hemp seed oil, it is incredibly healthy for animals. So, we decided immediately that that was going to be a very good carrier oil for our herbals.

Now, at the time when we started our product line, the Farm Bill had not passed. And so, CBD was not really a thing we were quite ready to try to sell. We wanted to be able to see in all 50 states.

TG Branfalt: Sure.

Marcus Pfeifer: So, we had to make a choice. And so, we made a safe choice by using hemp seed oil. And so, we were like, “All right. This is going to get our toe in the door. This is factually nutritious and healthy for pets. There’s no question about that.” And then we decided that we would combine them with some herbals.

Well, we wanted to keep them as simple as possible because there’s a few factors that we learned about senior animals and animals with health conditions is that sometimes they have food sensitivities or there may be drug interaction, potentially, with herbs because herbs have an effect on the body. We can’t just look at them as, “This is just something we put in our mouth and we digest it.” Everything has an impact.

So, we wanted to make it as simple as possible for them to do an elimination diet. So, if they reacted to the hemp seed oil or one of the herbs, it was going to be an easy thing for them to notice. Like, this is effecting the pet in a negative way. I know what that is. Instead of having a bunch of ingredients in our products and making that more complicated.

But the truth is that these things work very effectively. And now that the Farm bill has passed, we’ve introduced a 300 mg CBD product. We just launched, yesterday, an advanced version of an existing product that we had that has a CBDA powder in it. So, yeah, we believe strongly that … I think you touched on something that’s very important, is the homeostasis factor that cannabinoids play in the body. And we think that the CBD products are basically a foundational product for pet health. We think that the body is going to be able to respond to a new healthier diet, some herbal products and this, that, and the other, more effectively, if the body is in balance from the beginning.

And so, that’s our approach right now. So, we highly recommend combining our products. We like to see the CBD product being combined with Restful Pet, if your animal has anxiety or-

TG Branfalt: Just too much energy.

Marcus Pfeifer: Oh, yes. Now, there is a caveat to this. We feel like a holistic approach is the best. If you have a serious problem, you need to see a vet about that. They’re going to be the one who’s going to prescribe a sedative or something to that effect, but our products in combination do a very good job of toning down the nervous anxiety responses that pets have to common everyday problems, and this starts very young. You know, just like you’re experiencing. Our dogs are young as well, so we combine those products regularly, and it works great.

You know, the beauty of it is when you use a pharmaceutical, it’s going to really have a heavy impact on the animal’s personality and behavior. While it may be safe, the veterinarian is going to give you advice on how to administer those products, the truth is that your dog or your cat is not going to be right for a while until that pharmaceutical processes itself. So, the beauty of our products is that your dog or your cat is not going to change its personality, it’s just going to take a notch off of its edge.

So, that’s really what we’re after is if you chew up only half the cushions instead of all of them, we’re probably making some progress.

TG Branfalt: You know, I mean, there’s obviously a learning curve. Your background isn’t really in this space. And so, can you tell me about the process of finding the source for the hemp and for the CBD? Has it been easy? Has it been in-state? What’s that all been like for you?

Marcus Pfeifer: Well, I would say that us living in Colorado has been a huge advantage because you can’t throw a rock without finding somebody who’s got a commercial grow, or some sort of connection to an extractor or something like that. It actually is fairly common in the metropolitan area. We live in Colorado Springs, and so, we have a pretty easy access to the Denver area and Boulder. And so, a little research doesn’t take long to help you find a place. But we’ve also been to some hemp expos, and this, that, and the other, which was also an excellent opportunity.

And you aren’t kidding, the learning curve, since I don’t have a medical background and neither does my wife … Our introduction into health … Well, pet health, was how important it is for things to be safe and clean, and that’s really been probably our primary focus. So, we haven’t had a lot of trouble finding good quality hemp producers, the growers and extractors here. That wasn’t the problem. It was basically trying to figure out which ones we wanted to work with.

And man, the backside of this is trying to understand the testing of the products. It took us a while to understand the extraction process to try to determine what would be … Is there truly an advantage? And I think the obvious choices were between ethanol extraction and CO2.

Okay, so CO2 apparently is easily, on its foundation, the cleanest process if I understand the processes correctly. But when you’re using an organic ethanol and they do all of the steps to remove the solvent from it, the products seem to be very comparable in the end. So, our focus was making sure that our products were as clean as possible, and it was demonstrable from testing.

And I think you could get into the weeds about … Well, no pun intended. You can get into the weeds about the specific strains and all the various cannabinoids that are offered in that particular strain, but that’s not our focus. We wanted to get a nice, potent extraction, and that was important. And then we wanted to be able to demonstrate that this product was clean and safe from a solvent, pesticide, and heavy-metal aspect. And that’s really what our focus was for picking those partners.

TG Branfalt: So, I talked to a lot of people in the industry, there’s not a whole lot of companies doing what you’re doing, focusing on pet health in this space. And so, I’m wondering, is there, within the sort of small industry, pet health/cannabis industry thus far any sort of consideration to looking at other cannabinoids or terpenes for that matter for pet health-related products?

Marcus Pfeifer: Oh, sure. You know, like I said, our focus is primarily just to get a good quality product, but the reality is, from a veterinary medicine perspective, there’s going to be a lot of specific interest in how terpenes, cannabinoids and flavonoids, and that sort of thing, all work together to make a very specific quality product for a given disease state or condition for a pet.

We want to stay in our lane, you know what I mean? And to that extent, veterinary medicine is behind the human medical industry in that obviously all the focus is on human beings right now. What’s safe? What’s legal? And veterinary medicine is still not in a place where they can prescribe medical cannabis.
And the understanding of it … This is probably one of the few times that there’s far more research done on how humans respond to cannabis products than it does in animals, whereas it’s always been the other way around in the past. You know, they’re testing on animals first before they introduce a product. So, that’s an interesting paradox in this case.

What we do know is that CBD and the cannabinoids, setting aside THC, are safe for companion animals. Companion animals being cats and dogs. THC requires a little bit more attention to the subject. But right now, I think all companion animals can benefit from CBD product. I really am an advocate for the … Oh, my gosh. I can’t believe this word slipped my mind. It’s actually on our website all …

The Entourage Effect, for goodness’ sake.

TG Branfalt: Yes.

Marcus Pfeifer: Yes. I think that this is going to be one of those things that, as far as holistic care and things that people can do for over the counter products, and just general well-being for their pets, the full spectrum products are hands-down going to be just the go-to, you know what I mean? Your specific questions seem to be how do the cannabinoids and their relationship with caring for specific conditions, how that plays, that’s going to be the realm of veterinary medicine, probably is going to be best served, you know? People that have a very crisp understanding of cannabinoids. But I think that the veterinary medical community has to be opened up to the study and the research to medical cannabis before any of that can even be an option.

TG Branfalt: Yeah. So, let me ask from your experience, I know that when I was living in Vermont and I had first gotten a dog, I was able to talk to the vet there about CBD. They were pretty open. There was no risk for them to talk about it.

In New York, where I live now, was a bit of a different experience. I had asked them about it and she said, “That’s not something that we can really discuss.” But she did give me sort of a wink and a nod, so she was familiar with what I was getting at. What’s been your experience with your own pets and are you able to talk about it openly with veterinarians in Colorado?

Marcus Pfeifer: Veterinarians here are … Yes, they can. It does depend from state-to-state. Just because there is a lot more open environment here, they are able to talk more openly about it, but I can be honest that they do not have formal training because it does not exist for the veterinary industry. So, it requires that individual veterinarians to be doing their own research.

There is a number of veterinarians here that are doing their own research in their own practices, and they can speak very intelligently about it, but as far as that goes it falls in the category of anecdotal because they aren’t doing a formal study. It’s disheartening once you get into it … It requires such tight … Well, I can’t say that it’s not disheartening because the research has its place, unquestionably. There has to be a lot of validation that this, that, and the other works in combination with whatever.

But at this stage, if you know that the products is safe and clean, then the anecdotal evidence seems to play a lot more significant role is being able to be … What am I trying to say here? As far as the decision-making goes for trying to administer these products, if a veterinarian has experience with it, especially personal experience, they’re going to be able to speak as intelligently about it as anyone.

Now, I believe that there was a bill in California to allow veterinarians to prescribe medical cannabis. I think it got pushed back, so it hasn’t-

TG Branfalt: It did. It did, yeah. It was actually approved by, I think, the House, and then shut down by the Senate. Is there anything in Colorado, which has the most mature market, really, of legal cannabis markets. I mean, Oregon and Washington as well. But is there any consideration that you know of legislation in Colorado to allow vets to recommend medical cannabis?

Marcus Pfeifer: I don’t, and I’ll be honest, this is one department that I’m very deficient at. I don’t keep up with legislation as well as I should. But that is a big-picture question for me, and as far as the products that we’re selling and the kind of information that we’re using for this, it affects me in a lot broader sense. We’re going to be secondary to legislation once it’s passed, because I’ll be honest, until our business matures and we’re down the road with a lot more experience and knowledge, even if it was legal now, I wouldn’t be interested in selling a product even to veterinarians that had medical cannabis in it. Like something that had more THC.

TG Branfalt: Yeah.

Marcus Pfeifer: That is strictly, in my opinion, especially for pets because their sensitivity to THC, that would be specifically the purview of veterinarians, and that dos require research. It is known, factually, that THC, especially in dogs, has a toxicity level. But there is a caveat to that. THC in itself is not toxic to dogs. It depends on the level of exposure.

TG Branfalt: Yeah.

Marcus Pfeifer: And there’s a veterinarian that wrote a book … I don’t know if I can say names and stuff like that. But there’s a veterinarian that’s based here in Colorado that is one of the preeminent researchers for veterinary study, especially to do with cannabis.

He’s got lots of information about his own research in his practice, and he speaks explicitly about the use of cannabis and how you can titrate the amount of THC used, but it needs to be under strict guidance and you need to be working with a veterinarian that has that experience. And frankly, there’s just not many out there. I mean, it’s hard to find a holistic vet, much less one that can tell you specifically about hemp products and THC.

TG Branfalt: Well, I mean, you mentioned there’s no training for veterinarians either. That’s also the case for medical students for human medicine. They don’t have training, and so, they sort of have to do it after the fact if they’re interested. Just sort of an interesting comparison, I guess. What advice would you have for other entrepreneurs who might not have a background in cannabis who end up entering the space?

Marcus Pfeifer: Man, I cannot stress enough how important it is to do your research because there is so much information out there that sometimes appears ambiguous about it. And I’ll be honest, if you’re not willing to take some risks with your business … I mean, this is inherent to the hemp industry, period. The FDA has not made its rulings specifically enough on how hemp is to be regulated, and this, that, and the other. We’re waiting on that.

Man, especially in my business with pets, we are so far from proper regulation and this, that, and the other. And I’m a believer in regulation. I believe that it definitely has its place. Over-regulation is a serious problem, but I think that when you’re talking about people’s health and so forth, there’s an absolute necessity for regulation.

So, you have to understand so much more about the hemp industry and how you can execute your business. You can’t possibly do enough research, and frankly, there’s just a lot of risk-taking you have to be willing to do because the banks are still not very cooperative with the hemp industry.

TG Branfalt: Even for pets? Are you having … Even with your business, did you have problems getting banking?

Marcus Pfeifer: Well, you know, it’s funny. I feel like in some respects, we’re kind of falling under the radar. So, I don’t want to bring a lot of attention to that. But yeah, I feel like-

TG Branfalt: That would be so sad.

Marcus Pfeifer: Oh, my gosh! You know, there are so many different things. I think at our place in our business development, we are just kind of under the radar, so we’re trying to watch closely, the industry leaders in hemp, and we’re trying to pay close attention to what they’re doing because there are some really good examples out there, the trail blazers and the cutting edge companies out there. So, anything that they do, we want to do that now. Like, we don’t want to wait for regulation, we want to be above reproach as best we possibly can. And then, sometimes it just comes down to, what can you afford?

TG Branfalt: Yeah.

Marcus Pfeifer: But we want to … There is an organization that we belong to, we’ve been watching closely, the NASC. And they are an organization that works with the FDA on regulation for pet supplements. And frankly, there isn’t much, but they’re trying to push for policy and regulation in that respect. So, whenever they give guidance, we change our labels. We want to make sure that we’re not making drug claims or disease claims, and this, that, and the other. It’s quite a mess.

You can’t possibly do enough research because, frankly, whatever you learned last week may change next week with new regulation in your state. I mean, just think about this … It’s funny, the regulation at the federal level is one thing. Every state has got their own thing going on. So, it’s kind of a mess. We’re just trying to be safe.

TG Branfalt: Yeah. We are waiting for the USDA to just release their draft regulations. So, we’re all patiently awaiting to see what those look like and if they get adopted and what that will mean, having that sort of federal green light. Pardon the pun.

So, really great to have you on, man. Where can people find out more about you, more about Homescape and your products?

Marcus Pfeifer: Yes, sir. We do sell our basic line of products on Amazon, but that’s not our focus. It’s not a place where we can provide enough information. So, we want people to go to Homescape Pets. You can find us on homescapepets.com, and we also are … You can find us @homescapepets on Instagram and Facebook.

TG Branfalt: Thanks again, Marcus for being on the show. I’m really excited to keep using your products, quite frankly. And that’s not a shameless cheap plug. I didn’t get paid to say that. I do actually use them for my dog. It seems, to the best that I can understand his body language, to be very, very helpful for him. So, I appreciate you taking the time, man.

Marcus Pfeifer: Man, this was a priceless thing because, you know, there’s not a lot of people that know what to do with products for pets, and this, that, and the other. We want to educate. I think everybody, universally, in the hemp industry understands that’s education is critical. And we’re going to be expanding our FAQ page. We are going to be writing blog posts and stuff to help people understand better health practices. But bring in the hemp for your pets. It’s going to be very good for them.

TG Branfalt: Thanks again for being on the show. It’s Marcus Pfeifer, he’s the CEO of Homescape Pets. You can find more episodes of the Ganjapreneur.com Podcast in the podcast section of Ganjapreneur.com and in the Apple iTunes Store. On the Ganjapreneur.com website, you will 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

High Times

High Times Fires Seattle DOPE Magazine Employees

11/07/2019

by

On Wednesday, October 30, the majority of DOPE Magazine’s editorial team in Seattle was laid off by parent company High Times, according to an anonymous tip received by Ganjapreneur. In what was described as a surprise move, 11 employees were fired in a complete restructuring of DOPE’s Seattle headquarters.

When asked about the layoffs, High Times CEO Kraig Fox confirmed in a written statement that the Seattle office had been shuttered, stating, “As we move the combined company forward, we made a strategic decision to shut down the Seattle office and consolidate all content creation out of our Los Angeles headquarters.” Fox also said that “A number of employees have accepted positions in our Los Angeles headquarters.”

According to the tip received by Ganjapreneur, only three individuals were offered positions in Los Angeles, and the recent lay-offs had been preceded by over a dozen employees being let go since High Times acquired DOPE in September 2018.

In separate announcements at the time, both entities expressed hopes for a collaborative future in which the DOPE brand maintained its core voice and style. The $11.2 million purchase of the Seattle-based B2C monthly cannabis magazine was the last in a flurry of B2C event production and media purchases by High Times’ corporate entity, High Times Holding Corp, which was established in 2016 when a group of investors acquired a majority stake in the business. 

Regulation A Offering

In July 2018, High Times announced that they would begin selling shares of the corporation directly to non-institutional investors under Regulation A. Regulation A, commonly referred to as Reg A, is a series of rules under Title IV of the JOBS Act signed into law by President Barack Obama in 2012. 

Under Reg A, non-accredited investors (people who aren’t millionaires) are able to buy equity in a business in small amounts directly from the company. Once financing is raised, the company is then able to use the funds to apply to list with NASDAQ and begin trading their shares; Reg A investors, however, are not protected if the company fails to gain approval by NASDAQ or falls short of its fundraising goals.

Mergers & Acquisitions

In April 2018, before their Reg A announcement, High Times purchased Green Rush Daily, an online B2B publication, for $7 million. They also partnered with Reggae on the River, a well-known Northern California music festival operated by the Mateel Community Center which was under financial stress, having lost $140,000 on the previous year’s festival. By July, High Times had also purchased CULTURE magazine for $4 million and DOPE magazine for $11.2 million, timing these announcements to coincide with the Regulation A offering which was advertised widely on social media and throughout the cannabis industry, including on Ganjapreneur.

In the context of the recent layoffs at DOPE, it is worth noting that many of High Times’ other projects have also encountered a significant amount of adversity. Reggae on the River 2019 was canceled and ticket holders were refunded, leaving the Mateel Community Center to attempt to rebrand in hopes of continuing to host the beloved event. CULTURE Magazine is still being published, but its former owner is suing High Times Holding Corp. for payment from the sale. Green Rush Daily is still in operation and appears to be managed by an Editor on the High Times team.

Regarding DOPE’s restructuring, Fox told Ganjapreneur, “Consolidating content and publishing activities under one central office is simply the most efficient way to manage growth and propel DOPE and our brands into the future.” 

What does the future hold?

Fox declined to comment on the timeline for High Times’ planned public listing. Over a year after funding efforts began, more than $15 million has been raised and over 20,000 individual investors have bought stock via the Reg A offering. In spring 2019, High Times Executive Chairman Adam Levin commented that the company was still seeking a NASDAQ listing but in the meantime was considering Canadian exchanges or over-the-counter (OTC) trading in the United States. In June, Marijuana Business Daily reported that plans for a High Times NASDAQ listing had been shelved in favor of OTC after the company failed to meet its capital raise target. Numerous investors who bought stock via the Reg A offering have left comments on the article, wondering about the status of their investments and whether the listing is still being pursued. So far, High Times has not announced any timeline for a public exchange listing.

 

End

Massachusetts Municipalities Subpoenaed Over Potential Cannabis Industry Bribes

11/07/2019

by

U.S. Attorney Andrew Lelling has convened a grand jury focused on the potential bribery of government officials by Massachusetts cannabis companies, the Daily Hampshire Gazette reports. The municipalities of Eastham, Great Barrington, Leicester, Newton, Northampton, and Uxbridge have all been subpoenaed by the U.S. Attorney’s Office regarding their host community agreements with cannabis firms.

The documents requested by the feds include drafts and final versions of host community agreements, communication between the municipality and cannabis companies, and public meeting records related to the agreements.

In September, Fall River Mayor Jasiel Correia was arrested for allegedly attempting to extort cannabis companies for hundreds of thousands of dollars in cash. Correia is accused of extorting at least four cannabis business operators by soliciting $250,000 each from them in exchange for “non-opposition” letters from his office. He is accused of illegally generating at least $600,000 from the scheme, as well as alleged arrangements for a future cut in some of the companies’ cannabis sales. Shortly after his arrest, the Springfield City Council launched an investigation into a $200,000 donation made by a cannabis company to the city over a five-year period.

Lelling’s office is prosecuting Correia’s case.

In order to open a cannabusiness in the state, operators must obtain these host community agreements. Under the law, those agreements are capped at either 3 percent of gross sales or must not last longer than five years.

“The costs and impacts of hosting a Marijuana Establishment will understandably vary from municipality to municipality and negotiated HCAs should reflect the particular impacts on the host community,” the Cannabis Control Commission notes in guidance issued last year.

Cannabis Control Commission Chairman Steven Hoffman said in September that the agreements “give a disproportionate advantage to bigger companies that can afford to throw in a fire truck on top of their 3 percent.”

Easthampton Mayor Nicole Lachapelle told the Gazette that she had been in contact with the U.S. Attorney’s office and that city officials “know of no wrongful conduct, or even an allegation of such conduct, by any current or former City of Northampton official or employee or by any business in connection with the cannabis industry in Northampton.”

Last year Lelling said that while his office would not provide a blanket exemption from federal laws related to cannabis, he would focus his enforcement efforts on the overproduction and diversion of products into other markets, “targeted” distribution to minors, organized crime, and the office’s resources were “primarily focused on combating the opioid epidemic.”

End