Scientists Create Industrial Quantities of Psilocybin via Metabolic Engineering

10/02/2019

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Researchers at Miami University in Oxford, Ohio have created bacterium capable of sustainably producing industrial quantities psilocybin, the primary chemical found in psychedelic mushrooms.

The findings will be published in the December issue of the journal Metabolic Engineering.

According to Assistant Professor J. Andrew Jones, who led the study, it’s a significant step towards solving the issue of mass-produced psilocybin, which naturally occurs in the mushroom Psilocybe cubensis, known more commonly as magic mushrooms. Mushroom cultivation, Jones noted, would be an expensive and inefficient method of mass-producing psilocybin for research and drug development.

“We are taking the DNA from the mushroom that encodes its ability to make this product and putting it in E. coli. It’s similar to the way you make beer, through a fermentation process. We are effectively taking the technology that allows for scale and speed of production and applying it to our psilocybin producing E. coli.” — Study lead Andrew Jones, in a statement

Psilocybin — which remains a Schedule 1 substance under the Controlled Substances Act alongside heroin, crystal meth, and cannabis — has been shown to have major potential in the treatment of depression and other mental health afflictions, including PTSD and addiction.

A psilocybin research institute was recently unveiled at Johns Hopkins University. Meanwhile, at least one medical psilocybin initiative is being planned for the Oregon 2020 elections, while voters in Denver, Colorado approved a ballot initiative earlier this year decriminalizing psychedelic mushrooms in the city.

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Cannabis Contributed $8.26B to Canadian GDP Post-Legalization

10/02/2019

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The Canadian cannabis industry contributed $8.26 billion to the nation’s gross domestic product as of July, an increase of $1.24 billion from last October when cannabis was legalized throughout the country, according to Statistics Canada. The agency estimates that illicit cannabis output has fallen 21 percent post-legalization as the legal industry grew 185 percent.

The growth in the sector comes as Canada sees a decline in other, traditional, industries including mining, quarrying, and oil and gas extraction industries (-3 percent), construction (-0.7 percent), and manufacturing (-0.1 percent).

Canada did see a rise in other sectors, including wholesale trade (1.1 percent), real estate (4.2 percent), and retail trade (0.6 percent); but no sector reached the double-digit growth seen in the cannabis industry.

The cannabis industry will likely be able to maintain its growth as the nation plans on legalizing edibles and other “alternative” cannabis products – such as topicals and concentrates. Consulting firm Deloitte estimates that alternative cannabis products could add $2.7 billion a year to the space. Lift & Co. and Ernst and Young anticipate alternative cannabis product sales will grow the industry by about 65 percent.

An August report from Statistics Canada found that the cannabis industry added 6,570 jobs from the same month last year, representing a four-fold increase. Of those jobs, about 60 percent were in cultivation, harvesting, processing, manufacturing, and administration, while 20 percent were in the packaging, marketing, and sales sectors.

The GDP increase does not include the hemp industry, and the Statistics agency suggests that hemp production in the nation will double from 41,200 acres last year to 82,500 this year.

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Oregon State University Hemp Research Center Nets $1M Private Donation

10/02/2019

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The Oregon State University’s Global Hemp Innovation Center has received a $1 million gift from Oregon CBD whose founders, brothers Seth and Eric Crawford, graduated from the college, the Corvallis Gazette-Times reports. The GHIC was launched in July and includes 40 faculty members from 20 disciplines.

The funds from Oregon CBD will be used to explore hemp genomics to help better understand how hemp can be used in industrial applications, consumer goods, and health products.

Seth Crawford, a former OSU sociology professor, told the Gazette Times that “understanding genetics” is key to unlocking the “tremendous amount of possibility” with the crop.

“Philosophically, we believe the public land grant university needs to be the epicenter of that research so that all can benefit from the findings. We believe OSU is the right place to lead this research.” – Seth Crawford, to the Gazette-Times

Eric earned a horticulture degree from OSU and has worked as a naturalist at Mount Rainier National Park and owned a landscape architecture firm in Eugene.

According to the report, it’s the first major private donation to the center, which plans to publicly share its data and collaborate with other researchers and industry operators to study hemp.

Jay Noller, a professor of crop and soil science, said the center’s team has been “overwhelmed by the outpouring of support and interest” in the work of the GHIC.

Alan Sams, dean of the College of Agricultural Sciences, said the investment will accelerate the center’s leadership and help establish the college “at the forefront in genomic research in hemp.”

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Dr. Mechoulam Unveils Synthetic Cannabinoid Acids Discovery

10/01/2019

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Dr. Raphael Mechoulam — the Israeli cannabis researcher credited with the first synthesis of tetrahydrocannabinol (THC), as well as the discovery of the endocannabinoid system — may have made cannabis history again. Last week, at the annual cannabis research conference CannMed in Pasadena, California, the 88-year-old organic chemist and his research team unveiled their latest discovery: the ability to synthesize stable cannabinoid acids for medicinal research and drug production.

The discovery was, according to an NBC report, a combined effort by Dr. Mechoulam and his team; cannabis startup EPM; six universities throughout Israel, Canada, and the United States; a topical cream manufacturer; and a testing lab.

“This is exciting and unprecedented research. We have taken the unstable molecules of the cannabis plant and synthesized them to provide a stable, consistent basis for researching new therapies across a wide range of medical needs – from CNS disorders to inflammation and many more. In addition, we have provided several delivery mechanisms including tablets, topical applications and others to facilitate several approaches. Our work is a catalyst for the development of potential new therapies from a source long thought to have huge potential.” — Dr. Raphael Mechoulam, head of research for EPM, in a press release

The development is critical because cannabinoid acids are significantly more potent than typical cannabinoids (CBDA is about a thousand times more potent than CBD, for example), but the plant’s naturally occurring acids are very unstable and had so far eluded chemical synthesis.

“For the first time ever, pharmaceutical companies will have access to a wide variety of patent protected, stable cannabinoid molecules synthesized to provide stability and consistency for use in developing new medicines, with numerous potential therapeutic applications,” Reshef Swisa, the chief executive officer for EPM, said in a press release.

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West Hollywood Cannabis Cafe Opens for Business

10/01/2019

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The first true cannabis cafe in the U.S. — where open cannabis consumption, which includes smoking, vaping, and/or the consumption of edibles, is allowed — opened its doors today in West Hollywood, according to the Los Angeles Times.

The newly opened Lowell Cafe is billed as a functional restaurant but where servers also double as budtenders, and patrons will be offered a menu of in-season cannabis flower instead of wine or other alcoholic beverages (nonalcoholic beverages, however, are perfectly allowed). The menu will include both infused and non-infused food items, and consumption is allowed both in the dining area and outside on the restaurant’s open-air back patio.

Patrons will need to present valid ID showing they are 21+ before entering. Visitors will be allowed to bring their own cannabis products, including edibles to eat or flower to smoke, if they pay a small “tokage” fee, similar to a restaurant’s corking fee for wine. Patrons can also bring their own pieces but will have the option of renting a pipe or bong from the establishment.

“We wanted to break the stigma against cannabis so we wanted to create an environment where people could comfortably consume and also enjoy a really fantastic meal.” — Lowell Cafe’s general manager Lily Estanislao, in a KABC report

The starting menu includes:

  • Miso-glazed pork belly,
  • Jalapeño mac and cheese bites,
  • Vegan nachos,
  • Sticky tamarind wings,
  • House-made pickles, and
  • Avocado and white bean hummus.

Each item has a recommended cannabis flower pairing.

Lowell Cafe received unanimous approval from West Hollywood city regulators after promising and delivering a sophisticated air filtration system to keep the restaurant’s air clear of smoke and vapors.

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The Chicago, Illinois city skyline photographed from distance.

Illinois Awards First Adult-Use Cannabis Grow Licenses

10/01/2019

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Cresco Labs, PharmaCann, Ascend Illinois, and Columbia Care are the first companies awarded licenses to cultivate cannabis for the adult-use market in Illinois, the Chicago Tribune reports. Currently, there are 17 cannabis cultivators in Illinois that operate 21 facilities.

The state’s new law, approved earlier this year, gives current operators the first shot at adult-use cannabis cultivation licenses. 

Jeremy Unruh, director of public and regulatory affairs for PharmaCann, told the Tribune the approval allows the company to “put the pedal down in terms of producing” as adult-use sales are set to commence on January 1. Unruh said the company is working to more than double its production at its Dwight facility in preparation for the new year.

Cresco spokesman Jason Erkes said in a statement that the company is expanding its Joliet operations for the recreational crop but that Cresco had received approval for all three of its facilities. Last week, the company announced it was selling its Joliet and Kankakee facilities to Innovative Industrial Properties for about $46.3 million but would be leasing them back as part of the deal.    

Applicants have to pay a $100,000 application fee and commit to participating in the social-equity program included in the law. The 55 medical cannabis dispensaries currently serving the state’s patients can apply to sell adult-use cannabis products from the same facility. So far just five dispensaries have netted the approval. All of those dispensaries are owned by Green Thumb Industries.

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Kentucky CBD Processor Sues Oregon Distributor Over ‘Male’ Seeds

10/01/2019

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Kentucky-based CBD company Elemental Processing is suing HP Farms, which is based in Oregon, alleging that the company sold them 6 million hemp seeds that were mostly male instead of feminized as promised, the Oregonian reports. In the lawsuit, Elemental Processing claims that male seeds sell for less than a penny each whole feminized seeds cost at least $1 each because they produce cannabinoid-rich flowers.

The plaintiffs claim that the worthless hemp seeds ruined their 2019 crop and the male plants prevented the females from flowering, leading to $44 million in lost profits. Elemental paid $352,000 in advance for the seeds and agreed to pay another $3.5 million or 15 percent of the profits from the harvested plants’ flowers. 

According to the report, the plaintiffs sold the seeds to farmers throughout Kentucky who “had no choice but to plow underneath” the plants, the lawsuit says. The farmers found out about the problem with the plants only after they had sprouted.  

Oregon and Kentucky are among the national leaders in hemp crop cultivation. Last year, at least 50,000 acres of hemp were planted in Oregon, while Kentucky farmers registered 56,000 acres for hemp production — agriculture officials, however, do not yet know how many acres were actually used for hemp cultivation. In 2016, just 6,700 acres were planted after 16,100 acres were registered, according to agency statistics.

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The Connecticut Capitol Building in Hartford, Connecticut.

Connecticut Moves to Add Chronic Pain to Cannabis Program

10/01/2019

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The Connecticut Board of Physicians has approved chronic pain and Ehlers-Danlos syndrome as qualifying conditions for the state’s medical cannabis program, according to a WFSB report. Ehlers-Danlos syndrome affects connective tissues, according to the Mayo Clinic. 

The board also considered adding night terrors/parasomnia but it was ultimately not recommended for the program.

Final approval for the conditions are still required by the Regulations Review Committee of the state General Assembly. In June, the state Department of Consumer Protection approved interstitial cystitis, a chronic bladder pain syndrome; intractable neuropathic pain that is unresponsive to traditional medical treatments; medial arcuate ligament syndrome, which causes severe abdominal pain; Tourette syndrome; and vulvodynia and vulvar burning, which causes pain in female genitalia.

If the two conditions are approved by the General Assembly, the total number of qualifying conditions will be 38.  

As of September 29, there are 36,653 medical cannabis patients in the state with just four producers, 14 dispensaries, and 1,117 recommending physicians. 

Lawmakers in the state are considering recreational cannabis legalization. Last week Gov. Ned Lamont and New York Gov. Andrew Cuomo met to discuss legalization as the Democrats are pushing for a uniform regional approach to the reforms, the Hartford Courant reports. The states are bordered by Massachusetts which legalized cannabis sales for adults last year.

 

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cbd oil for anxiety

CBD Oil for Anxiety: Does it Work?

9/30/2019

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We can all agree that the stigmas surrounding both mental health and cannabinoid treatments are dissipating. According to the National Institute of Health, 46.6 million U.S. adults reported having some type of mental illness in 2017, with the highest prevalence of individuals aged 18-25.

CBD, meanwhile, is the fastest growing industry in the wellness sector by far, and the recent legalization of hemp has only further kickstarted the CBD movement into action. 

This article will address and summarize the current and ongoing research as it relates to CBD, which continues to grow in popularity, and how it may interact with the symptoms of anxiety.

How Does CBD Help with Anxiety?

There is a growing body of research that suggests the treatment of CBD oil for anxiety. Researchers think this is because CBD acts on receptors in the brain called 5-HT receptors, otherwise known as serotonin receptors. Serotonin is a neurotransmitter that is responsible for many biological processes including learning and memory, appetite regulation, and sleep. You have probably heard of serotonin as it relates to depression, as most antidepressants and some anti-anxiety drugs act on neurons responsible for serotonin release.

A study conducted in 2018 by scientists at McGill University found that administering 5 mg/kg of CBD to rats for 7 days decreased anxiety-like behavior. They discovered this by measuring the firing rate of 5-HT neurons in an area of the brain called the dorsal raphe nucleus (measuring the firing rate can tell you how active those neurons are). This brain area provides a majority of serotonin transmission to other regions of the brain like the frontal cortex. Essentially, the study showed that repeated CBD administration seemed to increase the firing rate of these neurons, which led to a decrease in anxiety when these rats were behaviorally tested. This mechanism could explain CBD’s anti-anxiety and anti-depressant-like effects.

Other research focuses on CBD’s action at TRPV1 receptors. TRPV1 are proteins present in certain parts of the brain and peripheral nervous system responsible for regulating stress and pain modulation (it is also known as the capsaicin receptor, which is in charge of spicy sensations!). Scientists found TRPV1 receptors and cannabinoid receptors in the dorsal periaqueductal grey of rats, a region that plays a part in anxiety and panic responses. Because cannabinoid receptor activation in this region is anxiolytic (anxiety-reducing) and TRPV1 activation is anxiogenic (anxiety-inducing), some researchers speculate that anxiety can come about from an imbalance or dysregulation of CB1 and TRPV1 signaling in this area. This speaks to the presence of CBD’s unique dose-response curve, as CBD could potentially activate TRPV1 (thus increasing anxiety) in high doses. 

Mice with their TRPV1 gene knocked out experience lessened anxiety; thus, some scientists predict that the use of both CBD and a drug that would block TRPV1 could be a new line of research for exploring CBD as an anxiety treatment.

The cannabis and hemp industries are expanding each year, despite federal restrictions that continue to hamper researchers in their quest to further explore cannabinoid therapies. Photo credit: Brian Jones

How Much Should I Take?

CBD has a tendency to follow what scientists called an inverted, U-shaped dose-response curve. This means, if you imagine an upside-down U on a graph, CBD is effective for most conditions at those median doses (aside from epilepsy, which requires a higher dose). Researchers in Brazil simulated a public speaking task for human subjects to test this. They dosed humans with an inactive control drug, a benzodiazepine, and a variety of CBD doses (100 mg, 300 mg, and 900 mg). They found that only the 300 mg dose of CBD had anxiolytic effects on the subjects during their public speaking task.

If you are looking to use CBD oil to treat your anxiety, it is important to take into account a multitude of factors:

  • Does the product contain any THC?
  • Are there terpenes present, or is it a CBD isolate?
  • What is your history with drug-taking and are you on any other medications?

Many factors can affect how CBD works or how you may feel after taking it; clean cannabidiol is something pro-cannabis legislators are still trying to regulate, and somethings scientists are continuing to examine. Smoking CBD or consuming it via a tincture provides quicker and a more potent relief compared to taking it orally because it reaches your bloodstream faster. Specialists suggest starting at a low dose when starting to experiment, and slowly increase the dose until you’re comfortable or to match your growing tolerance. 

Possible Side Effects

The most common side effects reported from cannabidiol are fatigue, weight gain, and nausea. Side effects also depend on the factors listed previously, i.e. your typical drug-taking habits, other medications that could interact with the CBD, etc. Everyone’s body and brain tends to process drugs a little bit differently, which is largely why results can vary.

Possible interactions between CBD and other drugs may exist because CBD is metabolized by a class of enzymes in the liver called CYP450 enzymes. These are responsible for breaking down all drugs in the body. However, many other drugs follow this same metabolism pathway, including some anti-epileptic medications, benzodiazepines, and beta-blockers. If both drugs are “competing” for the same receptors, therefore, it will be harder for them to be broken down and can lead to more of the drug in your bloodstream.

Research shows CBD can render CYP450 enzymes inactive, which further informs necessary trepidation when combining drugs.

As with any drug, take precautions before you begin dosing. Studies show CBD is nonaddictive, but that does not mean it can’t bew psychoactive. We will learn more as restrictions continue to be lifted — the 2018 farm bill, which federally legalized industrial hemp, was a start — but, for now, we can only be informed by what we know today. And today’s research shows that CBD can be helpful for anxiety with the correct dose and after considering potential side effects and interactions with other pharmaceuticals.

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CDC: Most Vape Illness Patients Used Unregulated THC Products

9/30/2019

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The Centers for Disease Control and Prevention said the majority – 77 percent – of the people affected by the vape-linked pulmonary illness used products containing both THC and nicotine but they still have not figured out the compound in the vape products that is causing the sickness.

The agency found that 16 percent of affected patients used only nicotine-containing products while 36 percent used just THC-containing products. In an analysis of data from Wisconsin and Illinois, the CDC found that “nearly all” cannabis vape products linked to patients were obtained from “friends, family members, illicit dealers, or off the street.” Wisconsin does not allow adult cannabis use or sales, while Illinois passed legalization legislation earlier this year but the infrastructure is not yet in place for legal sales.

“CDC is committed to finding out what is causing this outbreak of lung injury and death among individuals using vaping products. We continue to work with FDA and state partners to protect the nation from this serious health threat.” — Robert R. Redfield, MD, director of the Centers for Disease Control and Prevention, in a statement.

So far, the CDC has confirmed 805 cases of vape-linked pulmonary illness in 46 states and the U.S. Virgin Islands, along with 12 deaths. The median age of patients is 23-year-old and about 62 percent of the patients are 18 to 34-year-old.

In New York, the Health Department linked Vitamin E acetate to the illnesses in the state after nearly all of the vape products linked to the illness tested by the agency showed “very high” levels of the compound. New York does allow vapeable cannabis products as part of its medical cannabis program but the agency did not find Vitamin E acetate in any of the legal vape products.

Massachusetts Gov. Charlie Baker announced a four-month ban on all vape product sales in the state that applies to both nicotine and legal cannabis products.

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Hemp Farm

Hemp Applications Open Next Month in Kentucky

9/30/2019

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Applications for hemp cultivation and processing in Kentucky open November 15 after the agency approved 56,000 acres for hemp last season. Agriculture Commissioner Ryan Quarles said the state “continues to be the tip of the spear” on restoring the hemp crop.

“Challenges persist, ranging from federal uncertainty regarding cannabinol to banking and lending issues. Any business venture – especially in a new industry – carries risk, and the hemp industry is no exception. It is important that our growers and processors remain clear-eyed about the opportunities and challenges ahead of us in the years to come.” – Quarles, in a statement

According to agency figures, from 2018 to 2019 hemp cultivation acreage in the state grew more than three times – from 16,100 acres to 56,000 acres – after only seeing a 4,000-acre rise from 2017 to 2018. The Ag Department does not yet have numbers for how much of that 56,000 approved acreage was actually used for hemp but in 2016, just 6,700 of the approved 16,100 acres were used, with just 6,000 of those acres harvested. Of that, 61.5 percent was grown for CBD, 18 percent was used for used for grain or seed production, 14 percent was cultivated for a combination of grain and CBD, while 4 percent was used grown for fiber and 2.5 percent for grain and fiber.

The agency is holding a hemp summit for those interested in the industry on December 4 at the Kentucky Exposition Center in Louisville.

The agency indicates that the hemp industry has created 281 new full-time jobs in the state last year and hemp processors paid growers about $17.75 million.

The application deadline is March 15, 2020.

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A cannabis worker plucks a leaf from the stem of a fully grow commercial-grade marijuana plant.

GW Pharma Enters Cannabis-for-Autism Study Partnership

9/30/2019

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GW Pharmaceuticals is partnering with New York’s Montefiore Medical Center to study the effectiveness of the cannabinoid cannabidivarin (CBDV) — which is a homolog to CBD — for autism, CNN reports. GW Pharma produces the cannabis-derived, FDA-approved epilepsy drug Epidiolex, which was recently approved for use by European Union regulators.

Dr. Eric Hollander, director of the Autism and Obsessive Compulsive Spectrum Program and Anxiety and Depression Program at Montefiore Hospital, said there is hope for CBDV for treating autism because of its success for treating seizure disorders. Hollander said that other studies have found that anticonvulsants “decrease the electrical activity [and] some of the disruptive behaviors, or the irritability, actually get better.”

“And that was one of our thoughts, why this CBDV could be helpful. Because if it helps with epilepsy and it helps in terms of decreasing the spike activity, we might also get improvement in the some of the aggression, or the self-injury, or the temper tantrums.” – Hollander, to CNN

Hollander added that in animal models similar to autism CBDV “had important effects on social functioning, on decreasing seizures, on increasing cognitive function, and in reducing compulsive or repetitive behavior.”

Dr. Alexander Kolevzon, clinical director of the Seaver Autism Center at Mount Sinai, who is not involved in the study, said that CBD “may benefit different people in different ways” but said the “challenge is to figure out which patients are likely to respond, and which symptoms are most likely to improve.”

The study was launched in April and aims to enroll 100 participants aged 5-18-years-old for 12 weeks of treatment through June 2021; results are expected in Sept. 2021.

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Farm Offers Maine’s First Pick-Your-Own Hemp Model

9/27/2019

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A pick-your-own hemp farm has opened its fields in Whitefield, Maine – it’s the first such model in the state and believed to be just the second publicly accessible hemp farm in the U.S., the Portland Press Herald reports. About 50 showed up to Sheepscot General Farm to pick their own hemp plant.

The owner of the Maine farm, Ben and Taryn Marcus, planted about 7,000 plants on 3 acres following the federal legalization of hemp last year. The plants were tested for THC by the state Department of Agriculture, Conservation and Forestry and did not exceed the 0.3 percent THC threshold as required by federal and state law. The couple said, if processed correctly, the plants should contain between 15 and 20 percent CBD.

A whole hemp plant is priced at $25-per-pound, while branches are priced at $35-per-pound.

“We always wanted to do a pick-your-own, like we do with strawberries. But this has gotten a lot more attention than strawberries, that’s for sure. It was a great crop to grow, easy to do, but it’s not a crop I’d want to harvest by myself. It’s time consuming. But these people, they’re thrilled to pick.” – Ben Marcus, to the Press Herald

According to a New Frontier Data report, the number of hemp licenses in the U.S. quadrupled since the passage of the farm bill and they estimate that 480,000 acres of hemp was cultivated this year – a 328 percent increase year-over-year and more hemp than was planted during the crop’s 1943 peak during World War II.

The Marcus’ said they will harvest whatever isn’t sold via the pick-your-own model next week.

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Australian Feds Have ‘No Plans’ to Fight ACT Legalization

9/27/2019

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Australia’s federal government has “no plans” to fight the recently approved cannabis legalization law in the Australian Capital Territory, according to Health Minister Greg Hunt, The Guardian reports. Hunt did say he was “very concerned” by the law, citing the Royal College of Psychiatrists in the United Kingdom who, he claims, have “directly linked marijuana use to psychiatric conditions such as schizophrenia.”

Fighting the law would require an act of Parliament and while several officials have come out in opposition of the law, they have stopped short of supporting overriding the law. Attorney General Christian Porter has warned that citizens may not be protected by the law because of a separate law in the commonwealth that would still provide for prosecutions. Porter indicated he has asked for Australian Federal Police’s advice on how the two laws interact. Porter said that if the commonwealth law applies “the expectation would be commonwealth laws would be enforced.”

Michael Pettersson, the Labor member of the ACT Legislative Assembly who sponsored the bill, said that Hunt and Home Affairs Minister Peter Dutton are sending mixed signals about the law.

“Peter Dutton might be advocating that they interfere by changing ACT Self-government Act or potentially changing the criminal code. But Greg Hunt is out there saying based on current laws that this is a state and territory issue.” – Pettersson, to the Guardian

Under the law, citizens in the ACT 18-and-older can possess up to 50 grams and grow up to two plants for personal use. Sales or gifting of cannabis remains prohibited. The ACT is the first Australian state or territory to legalize cannabis in any form.

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Maryland Judge Temporarily Halts Medical Cannabis License Expansion

9/27/2019

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A Montgomery County, Maryland judge has issued a temporary restraining order against the state Medical Cannabis Commission, which will halt the issuance of 4 cultivation and 10 processing licenses, the Baltimore Sun reports. The Legislative Black Caucus also requested that the commission postpone issuing the licenses due to concerns about whether minority-owned firms had an equal chance in the licensing round, which was originally opened in an effort to improve diversity in the state’s cannabis industry.

“There have been significant issues and concerns raised about the process being used to determine winners and losers for these new licenses. Those concerns reached a tipping point as a result of the letters sent to those identified as top tier applicants, and those who have been rejected by the Commission for either a grower or processor license.” – Darryl Barnes, Chairman of the Legislative Black Caucus, in a letter to the MMCC via the Sun

The lawsuit was brought by Remileaf, who claim the commission’s application process prevented the company from getting their application in on time. According to the report, the commission had extended its original May 24 deadline after problems arose with the application website. According to the lawsuit, a Remileaf representative arrived at the commission offices at 4:55 p.m. on the day of the deadline to submit the paper application but was denied entry into the offices at 5:05 p.m. and the application was not accepted.

According to the complaint, several applicants had received an email that their applications had been “‘nullified’ ostensibly because the software used by the MMCC was fatally flawed and the electronically submitted applications could not be readily reviewed.”

“Other problems, as well, were identified by the MMCC with the software, none of which were the fault of any applicant,” the lawsuit says.

More than 200 applications were submitted for the 13 licenses. The judge’s order bars the state from issuing any new licenses until October 7, pending further hearings on Remileaf’s complaint.

It’s the latest snag in Maryland‘s medical cannabis program, which has been marred with various delays and lawsuits since 2015.

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dispensary management

Meg Sanders: Compassionate Dispensary Management

9/26/2019

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Meg recently joined our podcast host TG Branfalt for an interview about cannabis dispensary management and the budding Massachusetts market. Their conversation stretches back all the way to the early days in Colorado, when Meg worked alongside lawmakers and the governor to find smart regulations for the industry and founded MiNDFUL, one of the state’s early dispensaries, to the eventual founding of Canna Provision Group, a boutique adult-use dispensary in Lee, Massachusetts.

Tune in to the interview below for advice on assembling a powerhouse cannabis management team, how to treat your patients and customers, and a whole lot more! You can also scroll further down to read a full transcript of this week’s Ganjapreneur.com podcast episode.

Listen to the podcast:

Read the transcript:

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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 am joined by Meg Sanders. She is said CEO of Canna Provisions, who opened Colorado medical dispensary, MiNDFUL, in 2010. In Colorado, she worked with the governor-appointed committee to develop retail regulations. Meg is also the co-founder for consultancy firm, Will & Way, which advises start-ups, government agencies, investors, and institutions. How you doing this morning, Meg?

Meg Sanders: I’m doing great. Thank you so much. How are you doing?

TG Branfalt: I’m doing just fine. Real excited to talk about Massachusetts. I live in New York. It’s a border state, and there’s a lot to talk about, and I think that it’s been kind of overlooked since it rolled out, but before we get into the details of Massachusetts, I want to talk about you and your background. How did you end up in the cannabis space?

Meg Sanders: Well, it’s an interesting journey, as I often hear from fellow cannabis industry people that I work with. Colorado started kind of a Wild West approach to the cannabis business in 2009, 2010, and basically it was all based on the Cole Memo that came out, that basically said if you’re a state legislated program, or a state program that participates in some type of registration process, that you weren’t going to be a target for the federal government, and people took that and went, “That’s us.” Because it’s in our Constitution, from the year 2000, and from there on, it just went crazy, and every warehouse you can imagine that probably been sitting empty for a couple of years, to every store front that a landlord would lease to, dispensaries and grows were popping up everywhere.

In that timeframe, I had reached a bit of a glass ceiling in my role as compliance director for a small trading firm, and it was clear that I wasn’t going to go any further in that. I wasn’t super passionate about it either. This opportunity came through a college friend, and so I kind of spoke with him on and off for several months before deciding to take the plunge, and really just jumped in with both feet, so to speak. It was challenging, and frightening, and at the same time, really exciting to be doing something like this, where you really understand that we’re never going to see something like this again in our lifetime. So, being able to participate in the industry at the very early stages, was a very intriguing proposition, and that’s how I got started.

TG Branfalt: What were some of those considerations that you were sort of making with yourself as you were weighing entering the space, going from something, quite a traditional industry to something sort of outsider sort of kind of culture?

Meg Sanders: Well, I mean there was a lot of things we had to consider. First of all, we were cultivating well over the federal maximum of 99 plants, so that right there was mandatory sentencing, so that was something we had to be concerned about. When you are operating under the trust, I guess, of the State of Colorado, that they actually had a good handle on how to regulate this, or ideas on how to move forward in regulations to keep the businesses safe, and I think the other part of it was just the social side, the social stigma. My kids were young. I was a volunteer in their school. I had started a youth football program in my town of Boulder, Colorado, and there was a lot to consider, to make sure that I didn’t do any damage to the entities that I was working with, and also being able to exit gracefully from those to this business, and that took some time. The funny part is, after I did exit, and then kind of went back and started talking to some of my coaches from the youth football program, they were just like, “Oh, my gosh, we so would not have cared about that.” And I’m like, “You might not have cared, but there might have been parents that were just like, ‘You can’t be in this industry and run this youth football program.'” That’s just one little anecdote.

I think, overall, the concern was definitely, could legally I get into some trouble? And being a mom of small kids, that was obviously a huge concern, but the opportunity to do so, our legal team at the time, and then also working with the State of Colorado, I think for the most part, it was a back-of-the-mind thing, but it wasn’t front and center for me every single day. Getting the work done, and building the business was what I was focused on.

TG Branfalt: You talk about the nascent days of Colorado, and now you’re in the nascent days of the Massachusetts market, can you briefly describe and compare those two industries in the early days?

Meg Sanders: Well, I definitely can. In the beginning in Colorado, there was zero regulation. There was nothing that you could look at either in statute, or in local rule that you could go, “Oh, this is how we’re supposed to operate.” I mean, we were really flying the airplane, and building it at the same time. There was no other way to describe it. Then the regulations started coming through. Legislation started coming through, and we had to quickly fall in line, from a business model that we had started, to a completely different business model that the State mandated, and that was basically vertical integration, which was something that Massachusetts did, as well. That basically means that we have to cultivate and sell our product from seed to sale, and I think Colorado at the time thought, “This is the best way to track it. If you’re growing it, and you’re selling it in your business, that’s going to be easier to track than if we’re growing it someplace, and then it’s getting driven somewhere, and then it’s getting sold somewhere.” And this was before there was really even seed-to-sale tracking software available. It was way back when literally there wasn’t even software to do the sales of cannabis at the retail level. I mean, we were really making it up as we went along.

The difference in Massachusetts is they had several states to look at, in order to build what they were building. In the very beginning in Massachusetts, on the medical side, they started with a nonprofit model, which at the time, even though we were at MiNDFUL, we were looking at state expansion, different states, expanding into different states, but Massachusetts quickly fell off the list because of this nonprofit status, and it was really just a general consensus that that is a really tough business model to manage, and you’re adding additional compliance because it’s nonprofit.

Then obviously legalization happened, and somewhere in Colorado, Massachusetts had this previous medical market existing, that they could build on, and overall, they had a, even though it’s taken a long time to roll out the actual businesses into the market, overall, I think they had a good strategy on how to do it. Hands down, one of the biggest differences between Massachusetts and Colorado, was Massachusetts really took their time in getting people through the state licensing process. In Colorado, people were already open and functioning, and had invested a lot of money into grows and stores, so trying to then take that all away from these businesses through regulation, I don’t think it’s really how Colorado operates in general. Colorado’s a very independent, small-business minded state, and I think they were just trying to figure out, how do we get these thousands of businesses at this point, licensed, and regulations so we can monitor them? I think Massachusetts probably looked at that and went, “Oh, no, no, no, we do not want to do that. We also don’t want to do a super limited licensing structure.”

And what they did was decide to leave it at the local level, which is similar to Colorado, in that if you don’t have local approval here in Massachusetts, you cannot move forward. It’s impossible to move forward with the State, and Colorado’s very similar to that, and they both have a very honorable system as far as local, or home rule functioning, and I’m grateful for that. It’s nice to know that, we’re in a town right now in Massachusetts, in Lee, which is in the heart of the Berkshires, and they love us, and they want us to be here, and they’re excited that we’re here, and that is a phenomenal space to be in. Whereas, I would hate to be in a town where the State said we could be there, but the town really didn’t want you, and that could have just been a super contentious relationship, in an already challenging industry.

TG Branfalt: Why do you think Lee was so sort of open-armed about it? Is there an economic issue there? I’m not that familiar with sort of the economics of Lee, Massachusetts.

Meg Sanders: Well, I think for the most part, I can’t say it started out that way 100%. I mean, we definitely had some naysayers at the selectmen level, but overall, Western Massachusetts is a fairly friendly cannabis area. The Department of Health did a survey a few months back, and over 30% of adults in Western Massachusetts, use recreational cannabis on a regular basis. I mean, that’s a huge number. I think what happened was, in the Commonwealth of Massachusetts, there’s a lot of respect for what the voters have voted for, and I think I heard that multiple times in select board meetings, and that, “Hey, I’m not exactly for this, but our constituents have voted to support it, and so we need to implement it.” And I think as they saw a few open, and they saw the potential for revenue, they saw the potential to bring more people into the town, just as tourists or visitors, people warmed up, and I think once we had the police department on our side, as far as, “This is great. They’ve got a great plan. They’re going to be safe. This is not a concern.” We had the fire department on our side. We had local businesses cheering us on, obviously because there’s an opportunity to drive a lot more individuals into the town of Lee to go to restaurants, and bars, and shops, and all of that, and I think that was what happened.

It started with, “This is what our constituents want, and so let’s try to put this into a thoughtful play here.” And then we came to the table, and I think our commitment to the town, our commitment to building a strong Lee through cannabis, really won everyone over. And it wasn’t just lip service, I mean, we are in Lee, neck deep, and I say that in lots of different ways. I mean, we bought a house here. We live here now. We have over 600 volunteer hours in local nonprofits, like the Humane Society, like cleaning up the streets, like trash pickup and that kind of thing, all around at various lakes and rivers, and I think overall the town has just seen that we are here to stay, and we want to be the best stewards that we can possibly be from a business aspect, as well as a community aspect.

TG Branfalt: I always find the commentary from CEOs and business owners about their experience with select boards, because the public doesn’t necessarily always see that side of it, and I mean, you took this a step further, where they were developing regulations in Colorado, which then needs these sort of meetings, are very interesting to me. When I read about them, I’m like, “What was that like in there?” Can you tell me about some of that work? What were some of the unanimous decisions? Which ones were a bit more controversial to the members of the panel?

Meg Sanders: Are you asking me about Colorado’s specifically?

TG Branfalt: Yes. Yeah.

Meg Sanders: Yeah. First of all, that was a really interesting timeframe, I have to say. I wish I had a little more time under my belt in the industry before taking that one on, but at the time, I was the one that they picked, and I was really honored to do so. I learned so much, so quickly. Just listening to different stakeholders from law enforcement, who was really against this, a lot of mental health and addiction specialists that were also on the panel that were pushing back really hard, and for the most part, I was the only one on the panel, as far as the actual taskforce, that represented the businesses, and I felt like, I’m glad that I was there to remind them, in as thoughtful way as I could, that we are touching and discussing existing businesses that have employees, and payroll, and inventory costs, and rents, and loans, and all kinds of things, so we can’t be flippant about it. We need to be very thoughtful, to make sure that whatever legislation we push forward, or recommended legislation that we push forward as a taskforce, has to be thoughtful about the businesses too. It just can’t be all about the fear-based, it has to also focus on the reality of businesses, and Colorado being a thoughtful state about small business, and that’s really what all the cannabis businesses were.

There’s this thought process, and I remember one of the contentious things that came up was an activist that was calling me out in particular about, “I’m this big corporation, and we’re just doing this for the money.” And yada yada. Which we hear often, and it was so interesting, because my response was, “So, by definition, I’m a small business. I have a 107 employees, so right there, by definition, that’s who we are, and by the way, about 60% of the people we employed at the time, were cannabis patients. Like how much more of a supporter of patients, and what’s important to them, could I possibly be, than providing a great place for them to work where they could actually work and feel safe about being a patient?” So, that was some of the contention it was that we were more focused on money instead of the actual plant, or the actual patient, and it was fun to kind of be able to go, “It’s just not who we are, and I appreciate that that’s what you think we are, but we’re not.”

The other thing that was fascinating, and this is something that I truly, you know, where I am now in this life, as opposed to where I was then, and where the industry was then, especially the Governor, and especially, I would say, a lot of the legislators, is the hard push to make sure that drug felons could not participate in the industry. Colorado started that way, and we maintain that thought through Amendment 64 Taskforce, to regulate adult use, and that’s a huge regret I have, because it wasn’t the right thing to do. But from the lobbyist standpoint, from all the business associations, definitely from top down, from the Governor down, it was clear just that was not a negotiation. That was not a point that we could negotiate. And fast forward now to Massachusetts, and other great states have done phenomenal work. Illinois, for example, they’re going to expunge almost 800,000 drug violations. I mean, that’s what should happen, and Massachusetts has made a massive commitment, even though it’s really painfully slow rolling out. There’s probably a million reason why that is, but they have made a massive commitment to people who have non-violent drug offenses, making sure that they get a first bite at the apple, making sure that equity is a top priority, and making sure that people that live in areas of disproportionate impact, so in economically challenged zones, are the ones that are put first through the system.

The challenge is that the regulations weren’t really written for that, and so we’re finding that it’s not happening as fast or as furious as we thought it would, and hopefully that changes after some more legislation, and rules and regs, that I know we’re all working on right now.

TG Branfalt: To that point, I believe Boston just gave their first Social Equity license. So, the Boston area, which the guy was from Dorchester, which was one of the places that were affected most by the war on drugs.

I do want to sort of go back, you were talking about your employees, how a lot of them are medical cannabis patients, and I was just doing some research for this, and I read about the training program that you implement at Canna Provisions, so could you briefly describe that program, and how your experience in Colorado led you to utilize such a thorough sort of process?

Meg Sanders: I’m more than happy to go through that, and honestly, if you look back at what we were trying to do in Colorado, honestly, we were lucky to arrive and turn the lights on, and get money in the draw, and cannabis to sell. We were running so hard there with literally no time to plan, or even think about employee training programs, especially in the beginning, and we kind of grew into that as we got our feet under us, and as we had a stabilized business plan, and our grow was fully built out, we were finally able to go, “What’s missing here?” And it’s what’s missing is, a documented, and thoughtful and thorough training program, and MiNDFUL was very, very good at implementing all kinds of training, from OSHA training, all the way to intimate cannabis training, and like really understanding the science of the plant, and it was just nice to have a bit of a base of that to bring to Massachusetts, and to be able to outline what is most important from a retail establishment, and how do we be as thoughtfully forward facing to the customer as we possibly can be.

Through that, I was able to rely on some previous groups that I had worked with. One is ZingTrain, which comes out of a Zingerman’s Deli, which is in Ann Arbor, Michigan. They’re a remarkable firm, which you definitely should research at some point. I highly recommend people learn all about them. But they have a phenomenal training program, and we were able to bring them out, actually twice, to train our team here, just on customer service. It’s a full-day’s training, with several days of follow up, and quizzing, and practice, and role playing, and all of that. That has been the backbone of this company, in that, if we’re known for anything, we want to be known for our customer service, because at the end of the day, we’re selling cannabis just like any of our other competitors.

For the most part, the quality is fairly standard throughout the state right now in Massachusetts. I mean, there’s some high standards, and there’s some not great standards yet, but for the most part, any of our competitors you go to, you’re going to see comparable types of products, and so where can you differentiate the experience? Well, you can differentiate with the look and feel of your store, which is one aspect that we definitely embraced, and we can talk about that in a minute, but where we knew that we could make a major impact, and really change a cannabis consumer’s experience at the dispensary, by creating a very thoughtful, and on-purpose attitude of, we want to meet each and every customer exactly where they are on their cannabis journey, and that was the backbone of how we built this. And so far the reviews are supporting the business model, and our employees are loving being able to be so customer service focused, and by the amount that we’re growing every single day, day over day, week over week, it looks like it’s a successful plan, so we’re very excited about that.

The other thing that we’ve been able to implement is very traditional training, and experienced training from Colorado. Cannabis Trainers are run by Maureen MacNamara, has written specific responsible vendor training for the state of Massachusetts, and she’s been out to train our team twice. That’s been an awesome experience as well, because she’s a phenomenal trainer. She’s very thorough, and she actually gets you excited about compliance and ID checking, so that’s a big plus and a feather in her cap. And then, on top of all of that, we have brought in plant experts and vendors to train on their products. It’s just we want to always be learning, and really, for the most part, every single day, we can get better, and that’s our focus, how do we do it better today? And that’s what we do.

TG Branfalt: Full disclosure to the listeners, I’m actually going to be going to Canna Provisions in Lee, in about a month, so this is very exciting. I’m getting excited more and more to check this place out. The employees, the customer service employees, I mean, these are the ones that the customer sees, but what about an executive team? What do you look for in those members of the company?

Meg Sanders: I think the top piece that we look for is authenticity as just a human being. What I mean by that is, we spend a lot of time together, and we’re building something really special, and what we’ve looked for, and found successfully, are people that are as committed as we are, that believe in operating in an ethical nature, that believe that all of us are customers of each other, and what that means is that it’s not just our customer that we focus on, the actual customer that comes to the door, but each of us serves each other in one way or the other. You can be not so great and professional in doing that, or you can be top of your game at every request, and really pushing yourself to make sure you’re serving those around you.

So, I think that was really the biggest part is, commitment, knowing that starting a retail store, starting any business is an up-at-dawn, pride-swallowing siege, but especially in cannabis, it really is. It’s 80 hours, 100 hours a week that we’re putting in, to make sure that we put on a phenomenal experience for our customers, and that executive level is critical to making sure that everybody below, walks the walk, right? If we’re not walking the walk, then they have every excuse on the planet not to walk the walk. So, we hold ourselves to high standards. Whether that be from business experience, or other retail experience, which is one of the people that we’ve hired. We hired somebody who’s working on his Masters, and he is really, really talented in the tech area, as well as inventory area, and so he’s part of our management team. What our general manager is is a two-tour Afghanistan veteran, who remarkably interviewed a ton, and for whatever reason, and this isn’t the first time I’ve heard this, but for whatever reason, people that were interviewing him kind of discounted his military experience, and the people that he was responsible for, and so basically his management, which is the military, and so we were really fortunate that no one snapped him up, because we were able to, and he has been, hands down, the heart and soul of this company.

Another executive who is very passionate about cannabis is just a phenomenal human being, and kind of took a big leap after being in corporate marketing, and said, “I want to do this.” And I’m like, “Whoa. You’re leaving some really big positions.” Positions with like national brands, running their marketing. We are so thrilled to have him as part of it. The common denominator of all of these people is they’re also very passionate about cannabis. Cannabis has been a solution for them in their health, or in their mental health, or just in their general wellness routine, so I think we share this love for the plant. We share this love for legally being able to consume cannabis in our homes, and we also are committed a thousand percent to building a business that we can all be proud of.

TG Branfalt: We’re talking about higher-level employees, a little earlier we talked about the social equity, but what I want to ask is about gender equity in high levels of cannabis businesses. In the industry, female CEOs, women CEOs represent 27%, which is better than the 5% of the ranks of the S&P 500 firms. Is there a way the industry can work toward more gender equity in this high-level role?

Meg Sanders: That’s a great question, and I actually get asked that quite a bit. One of the hardest parts about this business, and I would say probably any business where you have to raise a significant amount of capital in order to get a business off the ground, and for the most part, the people that we’ve been speaking to, or have been able to find that are interested in investing in the cannabis industry, it’s mostly men, and often what happens is, people hire people that look like them, or came from the same background from them, or that have similar interests. What I’m finding is, even though we may have a higher percentage of women CEOs, and maybe women executives than the national average, I’m still finding that, nine times out of ten, I’m the only woman at the table when I’m speaking with investors, or when I’m speaking with various other business people out there. I think that’s part of the issue, is that there’s just this lack of clear path, in my opinion, on how women can just grab an industry, full-heartedly, and jump in with both feet, and it’s really hard to do if you don’t have capital, if you don’t have that security of some money in the bank to actually build the business. So, from my perspective, it starts with that.

I think I’ve had a much harder time than my counterparts that are also CEOs raising money. I think it’s a much different conversation, and I think overall we’ve found some very thoughtful investors that believe in what we’re building, and bought into my pedigree, so to speak. But I can tell you that, even those conversations are really, really tough. It’s been really hard. How do we change that? I think from a lot of studies that I’ve read about this particular issue, is really being an example, and that’s what I try to model for my employees here, not just women, not just minorities, but all of our employees, in that, you know what? There’s a lot of things we don’t know, and there’s a lot of things we have to figure out. And women in particular, just based on some studies, I’m not saying it’s a thousand percent, but just some studies, are more prone to accept a job of which they know they can do, as opposed to accept a job that they have no idea what is going on, but they’re going to give it a shot. Whereas, men are much more, well, much more quickly raise their hand to take on a job that they have no idea what it is, but they’ll just do it. That’s just one fascinating aspect of it.

I took a huge risk doing this business. I mean, in 2010, no one knew how to do it. I’m just like, “Well, I guess we’ll figure it out together.” But I also had a really unique thing of starting a football league, which by the way, never run a sports league before, and I had 40 coaches and 300 kids the first year.

TG Branfalt: Wow.

Meg Sanders: So, I really had to figure it out as I went along. I guess my point is is that, if there’s any message I could tell women in particular is, you don’t have to know it, you can figure it out as you go. Believe me, you’re plenty resourceful, and brilliant, and talented, and creative to figure it out, so just jump in. If you fail, you fail, and if you don’t, then great, but even failure is often one of the best things that can happen to you.

TG Branfalt: I really appreciate that your insight, I mean, as you said, it’s fascinating. I mean, several of the studies that you cited, and you don’t think about those things, right? When you sort of think of it as like this boys club, but there is this sort of underlying, sort of trend that’s been going on, so I really appreciate you talking to me about that.

I want to switch gears a little bit. I want to talk about what’s happening right now in Massachusetts. There’s some good and some bad. The potential for social use clubs, and then there’s also a large number of municipalities opting out, so what else is going on? Where do you see both of these issues sort of going? What’s going on in Massachusetts?

Meg Sanders: Well, I think overall, Massachusetts has succeeded in what their goal was, which was being basically the most highly regulated state. I think that was really the goal. They really wanted to be the best at making sure this was a tight industry, meaning there wasn’t all the things that people are concerned about with this industry, which is product going out the back door, or money not being accounted for, those kinds of things, and I think overall, Massachusetts did a phenomenal job as far as creating regulations and sticking to those regulations. But the challenge with a lot of this, especially when you’re looking at social consumption, and delivery, and wanting to make sure that equity still has the first take of this, is that we’ve said we want equity, and we want people from disproportionate impact communities, and non-violent drug offenders to be able to participate, but the way it’s set up right now, which is, you have to have local approval first, and the only way you can get local approval is to have a location that you’re probably paying rent on, and the process for this entire licensure is a year, minimum.

TG Branfalt: Wow.

Meg Sanders: So, if I’m a non-violent drug offender, which bank do I call for my small business loan to fund me for a year on, “Maybe I might get a license.”? So, right there, we didn’t set the table right. And that’s okay, because we need to reset it, and I’m a big proponent of that, and I think there’s a lot of conversations going on about that. The same thing is going to happen with social equity. You’re still going to have to get local approval. You’re going to have to find the location, and then you’re going to have to go through the state process, and that means you have to have funding available to you, day one, not day 101. Does that make sense?

TG Branfalt: Yeah.

Meg Sanders: I think that that’s where the biggest hiccup is, and I’ve thought of lots of ways to fix it. The number one thing being, the value that investors want to see is that you have a license, and maybe there’s a way that the state could license someone provisionally, or contingent upon getting local approval. If you have a state license it’s a lot easier to go to a landlord and say, “Hey, so this is what I want to do, and this is who I am, and here’s my state license. See, the states already said that I can do this.” And be able to negotiate, in good faith, a reasonable lease, and do it that way, than this kind of backasswards way that it’s being done now. The way it’s set up, especially on the plant touching side, as far as cultivation, retail, manufacturing, that kind of thing, and I’m kind of seeing, I’m hoping that’s not how that’s going to be in delivery and social consumption clubs, and we’re kind of watching that regulation as we go, but overall, we have to be able to put people that we want to promote in this industry to a level playing field of power when they’re negotiating stuff that’s going to stick with them for a really long time.

The greening of the industry already happens. We already see, soon as somebody knows you’re in cannabis, they immediately think, because you have a cannabis grow, or cannabis store, you have ATMs just spitting money out at everywhere, and we’re all just running around with money falling out of our pocket, and the truth is, it’s a very expensive industry to operate. It’s very expensive. I think, what we see is increased lease rates, we see exorbitant requirements, deposits in second and third months, and horrible outs, and I mean it can be really challenging. So, what I think needs to happen if we want to see this progression, this important, important step that the state is so focused on, we want to see the playing field leveled, and it isn’t just by going, “Well, we just need to give them $10 million, or $5 million, or $1 million.” That’s part of the equation, absolutely, we need to make that equity applicants and disproportionate impact applicants, they have to have access to funding, but what’s even more important is that they actually have a place of power to go to landlords, and go to all the different vendors that we have to work with to negotiate that thoughtful rate, and being able to move through the system much more quickly than a year.

I know people right now that are in the licensing process that have been paying rent for over a year and a half, at a location that they don’t know if they’re going to get local approval.

TG Branfalt: That’s unbelievably risky.

Meg Sanders: It is and when you talk about, just like get the trash can, put your money in it, and light it on fire, right? I mean, it is pretty much that risky. Unfortunately, this is how it was set up, and like I said, there’s some good to that, because we’re certainly benefiting from a limited licensing, you know, there’s only 22, or 21 licensed entities right now, so of course, we’re benefiting from that, and I don’t think at the end of the day, especially with all the bans that have happened, or long-term moratoriums that exist, I don’t think we’re going to see thousands of stores in Massachusetts. I just don’t think that was ever going to happen. But overall, how do we fix what’s broken is, we have to level the playing field as much as possible.

TG Branfalt: It’s incredibly interesting, sort of your response, meanwhile, you’re talking about your experience in Colorado, where people accuse you of being money-hungry, and corporate cannabis, and then you’re like, “No, we actually want more people to enter this space.”

Finally, what advice do you have for entrepreneurs looking to enter the space. I mean you talked about sort of your advice for women to jump in feet first, what about sort of the general, would-be cannabis’s operator?

Meg Sanders: My biggest advice for any entrepreneur, whether you’re getting into cannabis or not, is to do what you love. I know that sounds, I don’t know, a bit cliché maybe, but it’s very, very true. What I mean by that is, when you’re starting a business, whether it be cannabis, or otherwise, you are going to be working your tail off, for a really long time. Sometimes it’s years. Sometimes it’s a few years, who knows? But it’s a really long time that you sacrifice, your family sacrifices, in order to build this. I would just say, the starting point is, are you passionate about what you’re doing? Because you only live once, and I say this as a 50-something-year-old women looking back, and it’s easy to chase the easy money, or it seems easy, but is it rewarding and is it fulfilling, because ultimately, you’re going to spend a ton of your time. You spend more time at work than you do with your family, for the most part, and if you’re not doing what you love, what is the point? I mean, life is so much bigger than that, and that would be my first advice.

The second piece, is go into business with people that you adore. It is really, really important that you are working with people that you want to be with, because again, you’re with them, more than you’re with your family. My partner, Eric and I, are tied at the hip. I mean, we are personally involved. We’re also business partners, so we really are embracing that whole mentality of we do what we love with people that we love, and so far it’s working out great for us. But I would just say, those are the big keys to me.

And then my third piece of advice is make sure that your family is really onboard with what you’re doing. It’s hard enough to start a business. It’s hard enough to start a cannabis business, and what happens if you don’t have phenomenal family networking, and everybody’s on the same page, you’re all in together, is a lot of upset in one part of your life, and you just don’t want that. So regardless whether you’re going into cannabis, or just looking for a business altogether, I would just say, those are the big three that I would focus on.

TG Branfalt: I really, really appreciate you coming on the show, sharing your insight. Where can people find out more about Canna Provisions, find out more about you?

Meg Sanders: Cannaprovisionsgroup.com is our website. You can also find fantastic reviews about us on Google, and on Weedmaps, and Leafly. You can hear what customers are saying for themselves about their experience here. You can find me on Facebook, and I don’t know, probably a lot of other platforms, just Meg Sanders, just find me. And then, like I said, if anybody has any questions at all about what we’re doing here in Lee, Massachusetts, and why Canna Provisions is such a unique space, we invite you to come. We’ve set up a store that is completely different than any dispensary you’ve ever been in, and we look forward to loving you up when you come.

TG Branfalt: I’m very excited to be there in about a month. My guest has been Meg Sanders, she’s the CEO of Canna Provisions. She’s also the co-founder of consulting firm, Will & Way, which we actually didn’t get that much into, so I might have to have you back, which I would love to do. Thank you so much for being on The Ganjapreneur Podcast, I appreciate it.

Meg Sanders: Thank you for having me. It’s been a pleasure.

TG Branfalt: You can find more episodes of the Ganjapreneur.com podcast in the podcast section of Ganjapreneur.com, and in the Apple iTunes store, on the Ganjapreneur.com website you’ll find the latest cannabis news and cannabis jobs updated daily, along with transcripts of this podcast.

You can also download the Ganjapreneur.com app in iTunes, and Google Play. This episode was engineered by Trim Media House. I’ve been your host TG Branfalt.

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Pennsylvania Gov. Calls for Adult-Use Cannabis Legalization

9/26/2019

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Pennsylvania Gov. Tom Wolf (D) is calling for cannabis legalization in the state after Lt. Gov John Fetterman toured the state’s 67 counties and found “the majority” of citizens “supported legalization,” Wolf said, according to a WJAC report.  

Last year, Wolf said it was “time to take a serious and honest look” at legalization during a Twitter Q&A. 

Wolf also wants lawmakers to pass legislation to allow expunging low level and nonviolent cannabis-related offenses, he said via Twitter. During the tour, criminal justice reform was the number one reason respondents supported legalization. 

In February, legalization legislation was introduced by Democratic Rep. Jake Wheatley that includes expungement and would immediately release anyone incarcerated in the state for a cannabis-related crime that would be allowed under the legalization law.   

According to Fetterman’s report, 60-70 percent of the residents he spoke to on his listening tour supported the reforms and expressed “near unanimous support” for mass expungement, “universal support” for the state’s medical cannabis program, “near-unanimous” support for removing cannabis as a Schedule I substance federally. The support “does not appear to be contained to certain demographics or party affiliations,” the report says.

“People see economic potential, saying the state would save money on prosecution and incarceration of cannabis-related offenses. Residents who commented said regulated sales could create jobs. They specified that income generated should be used for infrastructure, education, and property tax relief.” – Lieutenant Governor Fetterman Statewide Cannabis Listening Tour Report, July 2019 

House Bill 50 would use some of the cannabis-derived profits for student debt relief.

The report did find that citizens have concerns about an uptick in driving under the influence post-legalization, and cannabis’ role as a “gateway” drug, and that most were opposed to “candy-like edibles” due to their potential appeal to children.

In all, Fetterman received 10,275 comments from participants during the tour and 44,407 total responses from all tour comments, webform submissions, emails, phone calls, and faxes.

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Medical Cannabis Patient Fees Removed in Massachusetts

9/26/2019

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The Massachusetts Cannabis Control Commission has eliminated the $50 annual fee for medical cannabis patients, MassLive reports. The new rules were approved unanimously by the body and will take effect as soon as they are promulgated by the Secretary of State.

Nichole Snow, executive director of the Massachusetts Patient Advocacy Alliance, called the fee an “obstruction to health care,” adding that “no other medicine requires a $50 fee.”

In order to make up the budget shortfall from eliminating the fee, the cost of licensing fees will increase for large cultivators and retailers, according to a report from Grizzle.

The change was included in a round of reforms that will eventually allow for home delivery and social-use establishments. Those licenses will only be available to social equity and economic empowerment applicants for the first two years. Cannabis board chairman Steven Hoffman said the changes provide a “good balance” in the state’s cannabis regime.

“The new regulations bring expansions and improvements to the adult and medical use of marijuana programs that will bolster public health and safety, promote access to and participation in the industry, and support small businesses in our state.” – Hoffman, in a statement, via Grizzle 

The cannabis industry reforms approved by the CCC do not include the recent four-month banning of vape devices; that action was initiated by Gov. Charlie Baker.

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Chicago CBD Shop Sues Landlord for Rejecting Hemp Leaf Signage

9/26/2019

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A Chicago, Illinois CBD Kratom store is suing its landlord for breach of contract after being unable to display their logo, which contains a hemp leaf, on signage, the St. Louis Post-Dispatch reports. MNG 2005, the parent company based in St. Louis, Missouri, alleges the landlords claim the sign promotes “marijuana usage.”

MNG claims that they weren’t told they wouldn’t be able to use the sign until after signing the lease and shortly before they opened last week.

“Without the use of the sign, which is the trademark of the plaintiff’s brand, plaintiff will suffer economic harm in the form of lost revenue as a result of not being able to use its brand, which is current in existence across several states.” — MNG 2005, in the lawsuit, via St. Louis Post Dispatch

Barry Mortge, an attorney for one of the defendants 4 Garages, called the allegations “baseless.”

According to the report, CBD Kratom operates 27 stores and all of the stores have the same logo on its signage. The Chicago store currently has the logo on the door of the store.

Chicago Mayor Lori Lightfoot has proposed there be “exclusion zones” for cannabis businesses in downtown Chicago once recreational sales are allowed, according to the Chicago Sun Times. Currently, none of the city’s 11 medical cannabis dispensaries are in this zone.     

CBD Kratom does not have a medical cannabis license or sell medical cannabis products.

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U.S. House Approves Cannabis Banking Bill

9/25/2019

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H.R. 1595, better known as the SAFE Banking Act, received a full House floor vote this afternoon, passing the chamber in a bipartisan 321-103 vote. It was the first time that stand-alone cannabis legislation was considered by the full U.S. House of Representatives.

The bill aims to remove the cash-only element from state-legal cannabis industries by explicitly giving banking rights to cannabis businesses and related companies. The bill’s primary sponsor Colorado Rep. Ed Perlmutter (D) said during his opening remarks that the Act’s main purpose is to support “public safety, accountability, and states rights.”

Some activists have criticized the effort for not going far enough to reform federal cannabis laws, but many cannabis advocates have applauded the SAFE Banking Act as a logical first step toward repealing the federal prohibition of cannabis.

“For the first time ever, a supermajority of the House voted affirmatively to recognize that the legalization and regulation of marijuana is a superior public policy to prohibition and criminalization.” — NORML Political Director Justin Strekal, in a statement

Lawmakers from both major political parties rose in support of the bill.

“The Financial Services Committee heard testimony in February that these cash-only businesses and their employees have become targets for violent criminals,” said Rep. Maxine Waters (D-CA), who chairs the Financial Services Committee, during the floor’s 40-minute debate. “The SAFE Banking Act addresses this serious problem by providing safe harbor to financial institutions that choose to serve state-regulated cannabis businesses.”

H.R. 1595 — which enjoyed more than 200 cosponsors in the House — now moves to the Senate for consideration.

The bill is supported by numerous law enforcement and banking organizations, including the National Association of Attorneys General, the American Bankers Association, and the Credit Union National Association.

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Massachusetts Approves Cannabis Social-Use, Home Delivery

9/25/2019

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The Massachusetts Cannabis Control Commission voted 4-1 to allow cannabis home delivery and social consumption with just Commissioner Jennifer Flanagan dissenting, MassLive reports. Flanagan said she was concerned about the potential public health implications, including the rise in vaping-related illness. The state has just issued a 4-month ban on sales and distribution of vaping products after 61 people in the state have fallen ill with the pulmonary illness related to vaping.

Flanagan also said regulators “need to stand up” the cannabis industry, “making sure the retail and cultivation and microbusinesses all get priority” before rolling out social-use and home delivery.

“We feel like we have got a good balance between trying to meet the will of the voters but recognizing that there are concerns from a public health and a public safety standpoint.” — Cannabis Control Commission Chairman Steven Hoffman, to MassLive

For the first two years, both license types will be reserved for social equity and economic empowerment applicants.

Both licenses will still require the host community agreements – which have come under fire recently after the arrest of Fall River Mayor Jasiel Correia for allegedly extorting cannabis businesses under the guise of the host agreements. The Springfield City Council is also investigating a $200,000 donation by a cannabis company for a school environmental program and park in the city to ensure it was not a bribe in exchange for an operator license.

Hoffman said recently that those host agreements give “a disproportionate advantage to bigger companies” since they “can afford to throw in a fire truck” on top of the 3 percent given to the community from gross receipts as allowed under the state’s cannabis law. He does expect home delivery licenses to start being considered in “a couple of months” after the agency posts its application for the sector.

Social-use licenses will start with a pilot program of a dozen municipalities that need to opt-in. The Legislature still needs to approve a process to allow those communities to adopt social-use rules.

Applying for the licenses will cost $1,500 with a $10,000 annual renewal fee – both fees can be reduced or waived for social equity and economic empowerment applicants.

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Australian Capital Territory Legalizes Cannabis Use & Cultivation

9/25/2019

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The Australian Capital Territory legislature has approved a measure to allow residents 18-and-older to grow up to two plants and possess up to 50 grams of cannabis beginning Jan. 31, the Guardian reports. It’s the first time an Australian jurisdiction has approved cannabis legalization, although cannabis is not allowed to be sold or given away under the law.

Under Australian federal law, cannabis use and cultivation are illegal.

ACT Attorney General Gordon Ramsay said the risk of federal prosecution for use and cultivation are “not entirely removed” under the bill but the laws would not apply “in practice.”

ACT shadow Attorney General Jeremy Hanson said the bill would have “perverse outcomes,” encourage people to drive under the influence, increase cannabis use, and would be confusing for police.

“This puts not only individuals at a greater level of risk but our police will be out there on the beat working in this unclear legal framework.” – Hanson, via the Guardian

Labor Party member Michael Pettersson, who introduced the bill, said Commonwealth law provides a defense for cannabis use if it is justified by a state or territory law and was written, “with the express understanding that there are differences.” Pettersson said he didn’t believe the federal government would try and fight the reforms.

Federal Health Minister Greg Hunt said the federal government does not support cannabis legalization.

In 2013, the ACT legalized same-sex marriage but the federal government challenged the law in court and the law was ultimately revoked.

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Seattle Dispensary Tests Vapes for Vitamin E Acetate, Finds 100% Pass Rate

9/25/2019

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In response to the vaporizer-linked pulmonary disease sweeping the nation, Uncle Ike’s cannabis dispensary in Seattle recently submitted vaporizer cartridges from its store shelves for lab testing. 100 percent of the tested cartridges came back clean of vitamin E acetate, the compound found to be responsible for the recent hospitalizations.

“A lot of customers have come in questioning is this dangerous or is this okay?” owner Ian Eisenberg told Q13 FOX.

“We are thrilled to announce upon the receipt of all test results that all products which were randomly pulled have tested OK! We commend all the vendors involved for their integrity and dedication to consumer safety as well as the participating retailers for their transparency. This project is a great example of the collaboration and accountability necessary to ensure that we keep Washington cannabis clean and safe for all!” — Statement from Uncle Ike’s

The vape-linked lung disease has resulted in at least nine deaths and more than 600 hospitalizations nationwide. Statements from the CDC suggest that counterfeit vape products may be to blame, but the agency is not yet ready to definitively link illicit market cannabis cartridges to the hospitalizations.

“At this point I think caution in all products is recommended. It may not even be the THC or the nicotine. It may be the additives or substances that may be common. It may be the material is not labeled appropriately,” CDC Principal Deputy Director Dr. Anne Schuchat told lawmakers of the House Oversight and Reform Committee, CNBC reports.

Amazon, meanwhile, has pulled vaporizer cartridge materials from its offerings, while Massachusetts just passed a four-month ban on vaporizer sales in the state.

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Massachusetts Issues 4-Month Ban on Vape Products

9/25/2019

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Massachusetts Gov. Charlie Baker (R) has ordered a four-month ban on the sale of both cannabis and nicotine vaping products in the state, the Associated Press reports. The order was approved by the state Public Health Council and comes after 61 reports of lung illness in the state linked to vaping products.

“The use of e-cigarettes and marijuana vaping products is exploding, and we are seeing reports of serious lung illnesses, particularly in our young people.” – Baker at a press conference, via the AP

Baker said that during the ban officials will work with medical experts and state and federal health officials to work on additional steps – including legislation and regulations – to address the crisis. Earlier this month the Cannabis Control Commission said they would require more detailed labeling of all cannabis vape cartridges.

Jon Hurst, president of the Retailers Association of Massachusetts, told the AP that there are “clearly” issues with some vaping products but questions whether the products that are potentially making people sick are from legitimate retailers.

“Is it the product being sold on the shelves by companies like Juul, or is it the off-brand stuff coming from other countries and sold on the internet?” he said.

The House is considering a bill to ban the sale and distribution of any flavored tobacco or vape customer. The bill would include an exemption for establishments that allow smoking – and state cannabis regulators just approved plans for social cannabis use in the state, which includes vaping where approved.

Earlier this month, the Centers for Disease Control and Prevention did not link the pulmonary illness to cannabis cartridges as 60 percent of the affected patients used both THC and nicotine vape devices. Health officials in New York have linked cases in the state to vape products containing Vitamin E acetate, including knockoff cannabis cartridges.

In all, there have been nine deaths throughout the U.S. related to the illness.

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