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

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

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

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

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


Indian Cannabis Advocacy Group Challenges Federal Prohibition

An Indian cannabis legalization advocacy organization is challenging the nation’s cannabis prohibition as unconstitutional, according to a Bar and Bench report. The Great Legalisation Movement India Trust is not seeking to completely deregulate cannabis, rather arguing that cannabis should be regulated and those rules should have “reasonable” restrictions.

The group argues that cannabis is not on par with other more harmful and lethal chemicals and that its status alongside those prohibited chemicals is arbitrary, unscientific, and unreasonable. The group argues that Parliament did not take into consideration the effects of cannabis on human health when it passed the Narcotic Drugs and Psychotropic Substances Act in 1985 and mounting evidence shows “…medicinal use of Cannabis can help to reduce the acute health crisis, which the country is currently facing.” The petition pointed to the relief cannabis provides for HIV patients – of which India sees about 82,000 reported cases annually – Parkinson’s disease patients, and that “cannabis is an effective analgesic and helps in cases of chronic pain.”

The Legalisation Movement also argues industrial hemp cultivation would “immensely benefit” the nation’s farmers.

The lawsuit also calls it “unfathomable” that the government runs bhang shops while, simultaneously, outlawing cannabis. In 2004, the High Court in Chandigarh ruled that bhang – a milky, sweet drink laced with cannabis – is not, technically, cannabis but is a “cannabis plant,” according to Legally India.

Legally India explains that bhang is allowed due to a loophole in the 1985 drug law that allows consumption of cannabis leaves and only flower and resin (hash and concentrates) fall under the purview of the law.

The court will take up the case in February.

End


Massachusetts College Offers Cannabis Certificate Program

Springfield, Massachusetts-based American International College is now offering a certificate program in legal cannabis, according to a MassLive report. The program has three classes planned but currently just one – Cannabis Entrepreneurship – is set to be offered in the spring 2020 semester.

Additionally, the college has created an undergraduate initiative in the School of Business, Arts and Sciences called Micro-Emerging Markets: Cannabis Certificate Program. The school plans to expand the certificate program with a minor and graduate school program.

“The goal of the program is to dip our toe into this area that is growing by leaps and bounds. There are hundreds of jobs created by it. All sorts of research. Businesses in the field and all sorts of ancillary businesses are growing.” – Mika Nash, AIC executive vice president of academic affairs, to Masslive

The entrepreneurship class will cover customer groups, products, and services in the adult-use market; how price, quality, competition, and other factors can impact a business; the legal background and different business models; and marketing.

For non-matriculated students, each course is $395 with a $30 registration fee, bringing the total for three credits to $1,215. Matriculated students are also eligible to take the classes but all students must be 21 or older since the courses might involve tours of cannabis cultivation facilities, and dispensaries.

Last week Holyoke Community College announced plans to open the state’s first cannabis education center with the first classes being offered this month, according to MassLive.

Colleges and universities throughout the U.S. have begun offering cannabis education programs since states began to legalize cannabis medically and recreationally, including in California, Illinois, Nebraska, Pennsylvania, Maryland, and Connecticut.

End


NYPD Seizes 106 lbs of Legal Hemp After FedEx Tip

A FedEx tip to the New York Police Department led to the seizure of 106 pounds of legal hemp, the New York Post reports. On Sunday, police at the 75th Precinct lauded the bust on Twitter the day after arresting Ronen Levy, whose brother Oren owns GreenAngels CBD, for drug-related crimes.

“My brother was falsely arrested,” Oren wrote on Instagram. “Those bags were all hemp. All documents were in each box. The farm also called them to give them all there (sic) paperwork proving it’s all hemp.”

Paperwork provided to the Post showed the THC content of the plants was 0.14 percent – well below the 0.3 percent federal and state thresholds. Oren told the Post the company is out “up to $30,000” since the confiscation.

Andrew Subin, a lawyer for the Vermont farm that grew and sold the plants, said a detective from the precinct didn’t know the legal THC limits for hemp.

“He was claiming that he didn’t know the legal limit. He said that he needed to do his own test. We have a test by a certified lab, so I don’t understand why they need to do their own test. This is having a real impact on our client and the buyer.” – Subin, to the Post

Ronen was released without bail by a Brooklyn judge on Sunday. The police have not issued any statements about whether they will hold the plants and press charges but told the Post the investigation is active and ongoing.

End


Study Finds Cannabis Could Reduce PTSD Symptoms

Research published in the Journal of Psychopharmacology suggests that “cannabis use may contribute to reducing the association between post-traumatic stress disorder and severe depressive and suicidal states,” according to a Newsweek outline of the study.

The research used data from the 2012 Canadian Community Health Survey on Mental Health which involved 24,089 people aged 15 and older. Of the respondents, 420 of the participants had been diagnosed with PTSD. Of the PTSD patients who took part in the research, 106 – or 28.2 percent – said they had used cannabis in the past year, versus 11.2 percent of participants without the diagnosis.

Respondents with PTSD who didn’t use cannabis were about seven times more likely to have experienced depression and 4.7 times more likely to think about suicide compared to people who didn’t have PTSD or use cannabis.

Stephanie Lake, a research assistant at the British Columbia Centre on Substance Use and PhD candidate at the University of British Columbia who led the study, called the research “the first time that results from a nationally representative survey have shown the potential benefits of treating the disorder with cannabis.”

“We know that with limited treatment options for PTSD, many patients have taken to medicating with cannabis to alleviate their symptoms,” she said in the report.

“We’re only just beginning to understand what the therapeutic potential of cannabis may be for a variety of health conditions. These findings are promising, and merit further study in order to fully understand the benefits of cannabis for people living with PTSD.” – M-J Milloy, UBC professor of cannabis science and study co-author, in a statement, via Newsweek

In June, the Minnesota Department of Health reported that 70 percent of PTSD patients enrolled in the state’s medical cannabis program said their symptoms were reduced when using cannabis, compared to just 4 percent who said they received little benefit from cannabis for their PTSD symptoms. Another study published in June in the American Journal of Drug and Alcohol Abuse found two-thirds of California military veterans were using cannabis to treat chronic pain, anxiety, PTSD, depression, and insomnia instead of prescription medication.

The study found 63 percent of respondents indicated they used cannabis to replace “any substance,” while 47 percent said they had replaced prescription medications with cannabis. Another 30 percent replaced alcohol with cannabis and 24 percent said they had replaced tobacco with cannabis. Another 12 percent of veterans said they used cannabis as a replacement for other illicit drugs.

In all, 23 states include PTSD as a qualifying condition for medical cannabis use.

End


Columbia care acquisition

Columbia Care to Acquire The Green Solution in $140M Deal

Columbia Care, which holds cannabis licenses throughout the U.S. and Europe, has entered an agreement to acquire Colorado-based The Green Solution in a stock and note deal worth $140 million, the company announced on Tuesday. The deal will increase Columbia’s U.S. footprint to 93 total facilities, including 74 dispensaries and 19 cultivation facilities.

The Green Solution currently operates 21 dispensaries, with two under development, three indoor grows totaling more than 225,000 square feet, 16,000 square feet of greenhouse capacity, and a 140-acre outdoor cultivation complex. In 2018, Green Solution generated more than $73 million in revenues.

Kyle Speidell, co-president of The Green Solution, said that the firm had been approached “by nearly every serious operator” in the industry about a potential deal and that Columbia is the “ideal partner to trust with [the] family business.”

“This deal allows us to provide Colorado consumers with Columbia Care’s unique portfolio of pharmaceutical-quality products, and also enables us to quickly expand our TGS brands into 14 new U.S. jurisdictions. Additionally, we can now bring Columbia Care’s market-leading advancements, including its CNC credit card, home-delivery service and e-commerce capabilities, to our customers in Colorado, further improving the concierge experience and the exceptional standards of customer service that we have worked so hard to establish.” – Speidell, in a statement

Nicholas Vita, Columbia Care CEO, indicated it is the “first major acquisition” for the firm, adding that The Green Solution founders “built their company on the core principles of market depth, differentiated products, brands and capabilities, consumer satisfaction, and scalable infrastructure.”

“This transaction further advances Columbia Care’s promise to maximize shareholder return by making us even stronger, both financially and operationally, as we expect to see the majority of our existing markets transition to less regulated, legalized operating environments,” he said in a statement.

The terms of the deal include $110 million in Columbia Care stock, $15 million in secured debt, a $15 million seller’s note with the potential for an additional milestone payment in 2021. It still requires regulatory approval, which the firms expect next year.

Columbia reported $22.1 million in third-quarter revenue this year, which they say represents a 123 percent increase over the same period last year.

End


California Continues Unregulated Cannabis Busts

California law enforcement officials have eradicated 953,000 cannabis plants from 345 grows throughout the state as part of their Campaign Against Marijuana Planting Program, the City News Service reports. State Attorney General Xavier Becerra said the crackdown has also led to the seizure of 168 weapons.

This year, the CAMP teams – which includes federal, state, and local law enforcement agencies – have served more than 120 search warrants. As of July, the California Bureau of Cannabis Control and state law enforcement agencies had seized a combined $30 million in cannabis products, cash, and weapons.

“Illegal cannabis grows are devastating our communities. Criminals who disregard life, poison our waters, damage our public lands and weaponize the illegal cannabis black market will be brought to justice.” – Becerra, during a press conference on Monday, via the City News Service

Becerra’s announcement came the same day as the Kern County Sheriff’s Office said they eradicated more than 10 million cannabis plants in the county valued at $1 million. The sheriff’s office said the plants were “grown under the guise of legitimate hemp production” on 459 acres.

“Preliminary testing showed the levels of THC in these fields were well over the legal limit for industrial hemp production and were in fact cannabis,” the agency said in a Facebook post.

A September United Cannabis Business Association report found that there are about 2,835 unlicensed cannabis companies in California, with just 873 licensed operators and the state’s legalization market has been marred by lower-than-anticipated sales – partly due to high tax rates – all of which has led to officials cracking down on illegal and unlicensed operators.

End


Study: Using ‘Cannabis’ Over ‘Marijuana’ Doesn’t Change Perceptions

Using the term ‘cannabis’ instead of ‘marijuana’ does not influence the public’s perception of or attitude toward the plant, according to research published in the journal PLOS One. The study did find differences in perception when the word ‘medical’ is used in conjunction with ‘marijuana’ or ‘cannabis.’

About 43 percent of respondents said that both ‘marijuana’ and ‘cannabis’ were “morally acceptable” compared to about 26 percent who said ‘marijuana’ was “morally wrong” and about 20 percent who felt the same about ‘cannabis.’ The remaining respondents said they were “not sure.”

Comparatively, near 60 percent of participants said ‘medical marijuana‘ was “morally acceptable” along with about 63 percent who felt the same about ‘medical cannabis.’ About 15 percent said ‘medical marijuana’ was “morally wrong,” and about 12 percent said ‘medical cannabis’ was “morally wrong,” the rest of the field were “not sure.”

“The name frame (‘marijuana’ versus ‘cannabis’) has no impact on opinion toward the drug. Our results thus undermine the notion — widely espoused by policy advocates — that abandoning the word ‘marijuana’ for ‘cannabis’ by itself will boost the prospects for reform or soften public attitudes toward the drug.” – “Has the ‘M’ word been framed? Marijuana, cannabis, and public opinion,” Oct. 31, 2019, PLOS One

The researchers note an increase in news stories using the word ‘cannabis’ since 2013 – which coincides with a spike in stories with ‘marijuana’ to over 25,000 by 2014 – and a sharp decrease over three years in stories using ‘marijuana’ to a little over 20,000, while ‘cannabis’ stories rose from about 3,000 in 2014 to about 6,000 in 2017.

The study also found that 23 of the 33 states with some form of legal cannabis access are using ‘marijuana’ in their legislation over ‘cannabis.’

End


Industrial Hemp Fiber Processing Facility Opening in Virginia

A Virginia firm is opening an industrial hemp processing center in Wythe County estimating to invest $894,000 into the site and purchase more than 6,000 tons of hemp over the next three years for processing, the governor’s office announced last week. The facility will be the first industrial hemp fiber processing center in the state following the passage of the federal Farm Bill last year, which removed hemp from the Controlled Substances Act.

The Appalachian Biomass Processing facility will create 13 jobs and will receive a $25,000 grant from the Governor’s Agriculture and Forestry Industries Development fund which will be matched by the county.

Gov. Ralph Northam (D) said the hemp industry “opens up a wealth of opportunity to bring new jobs and new businesses” into the state. He added that the facility “will play a key role in helping to create a highly-anticipated market for our farmers and industrial hemp growers.”

Susan Moore, owner of Appalachian Biomass Processing and Wythe County native, said in a statement the state and county business development grants will help the company “create an entirely new industry for the region.”

The company will use a specialized stripping machine to process bales of hemp stalks into two raw agricultural products – bast fiber for the textile industry, and the hurd, for use as animal bedding.

Secretary of Agriculture and Forestry Bettina Ring noted that there are more than 1,100 registered hemp growers in the state and said that having the processing infrastructure “and strong markets in which to sell it are critical to seizing its potential.”

Virginia legalized hemp production in 2017 – prior to the federal reforms – and last week the U.S. Department of Agriculture released draft rules for the industry. Once finalized the agency will be able to begin the review and approval process for individual state-approved hemp programs.

End


Professional Sports Slow-Walking Cannabis Reforms

The Pro Golf Association (PGA) recently suspended Matt Every, a two-time tour winner, for 12 weeks for violating their conduct policy after failing a drug test. Although the tour would not say which drug he tested positive for, Every said in a statement that he tested positive for cannabis.

The PGA does not test for cannabis often but does have strict penalties for failing their random drug tests, ranging from shorter suspensions like Every’s to lifelong Tour bans for continued violations.

“I tested positive for cannabis, a drug I do not abuse and a drug I have a legal prescription for in the state of Florida. I have been prescribed cannabis for a mental health condition by my physician whom has managed my medical care for 30 years. It has been determined that I am neither an acceptable candidate to use prescription “Z” class drugs nor benzodiazepines. Additionally, these classes of drugs can be highly addictive and harmful to the human body. For me, cannabis has proven to be, by far, the safest and most effective treatment.” — Matt Every, in a statement 

This is the second time this year that the PGA has suspended a player for cannabis use — in March, Robert Garrigus was suspended for 12 weeks after failing a drug test.

The PGA is not an exception. Unfortunately, most professional sports leagues today have cannabis policies rooted in the last century.

Where the other leagues stand 

Despite cannabis legalization polling at an all-time high, most professional sports leagues have strict anti-cannabis policies. The NFL has announced an effort to study the potential of cannabis for pain treatment, but current players are subjected to at least one random drug test in the offseason and ten players per team are selected for random drug tests each week. Penalties range from drug treatment to a year’s suspension.

The NBA did not test players for cannabis until 2000 and players can expect up to four random drug tests each season. Failing a drug test can get players suspended — suspensions start at one game and go up from there — and fined up to $35,000. Unlike the NFL, the NBA does not test in its offseason. 

Major League Baseball’s drug policies, meanwhile, were sadly brought into the spotlight following the recent death of Angels pitcher Tyler Scaggs, who reportedly had Fentanyl, Oxycodone, and alcohol in his blood at the time of his death. In response, the league is apparently in discussion with the players Union about testing for opiates and loosening its cannabis policies, according to the LA Times. Although the MLB does not test for cannabis often, it does have some of the strictest penalties for a positive drug test, ranging from drug rehab to a complete ban from the league after the fourth positive test.

The Ultimate Fighting Championship, meanwhile, maintains a ban on THC-rich cannabis products, but several high-profile fighters have embraced and even endorsed CBD as part of their recovery process. The league has also partnered with Canada’s Aurora Cannabis to conduct clinical trials studying the efficacy of CBD on wound care, recovery, injury, pain, and inflammation.

The World Anti-Doping Agency removed CBD from its list of prohibited substances in 2017.

A runner participates in the 420 Games, a cannabis-friendly marathon event, in 2015. Photo credit: Richard Haick

Is there a place for cannabis in sports?

Not all sports leagues treat cannabis like it’s 1937 in the height of “Reefer Madness.” The National Hockey League (NHL) is a model for cannabis testing reform, according to Jim McAlpine, a California cannabis entrepreneur who founded the 420 Games.

McAlpine took the time recently to speak with Ganjapreneur despite dealing with California wildfires. “The NHL is doing it right,” he said. “They test for cannabis, but don’t penalize the players. It’s more to keep their finger on the pulse of what’s happening in the league. The other leagues are caught up in the negative stigma attached to cannabis and still base their policies on out of date information. And, we can’t forget many of the leagues have sponsorships with large pharmaceutical companies and big alcohol.”

McAlpine, who has been working with NFL star Ricky Williams to launch a cannabis-focused gym and speaks around the country about cannabis and sports, believes cannabis helps athletes to recover and focus.

“I find a lot of people get how cannabis can help with sports recovery, but many athletes use it to focus. Many people find it helps with concentration and the mind-body connection. Instead of focusing on the negative stigma of the plant, I started the 420 Games to show how cannabis can help athletes up their game,” he said. 

Now known as the “Civilized Games” after being acquired in March by Canadian cannabis media company Civilized, the games continue to bring together canna athletes and sports enthusiasts from across North America. The events are designed to highlight the unique role cannabis can play in a healthy athletic lifestyle.

End


Florida Bill Would Require Public Schools to Allow Medical Cannabis

A bill requiring public schools to allow medical cannabis use has been introduced in Florida, according to a Florida Politics report. Under the measure, counties would designate a caregiver to administer medical cannabis to patients. That caregiver would need to be authorized by the patient’s parents or guardian along with a statement explaining why the student is using medical cannabis during the school day.

The bill includes language exempting the caregiver from civil liability of acting as a “reasonably prudent” person would in discharging the duties of the role.

Education Commissioner Richard Corcoran said schools that do not comply face the withholding of grant money and that superintendents or board members who do not conform could be suspended or removed.

“We could withhold salaries of the superintendent. We can withhold funding to the district. We can withhold and make them ineligible for grants. They risk literally – when the law says, as a school board member or a superintendent, do X, and they’re not doing it, they can risk suspension and removal from office.” – Corcoran, to WTSP

Sen. Bill Montford (D), the bill sponsor, said that the law is necessary because some school board attorneys are “reluctant” to allow medical cannabis use in public schools despite state regulations that require schools to allow it. Those attorneys claim that they cannot support the state policy because cannabis remains illegal federally.

Last month, California Gov. Gavin Newsom (D) signed legislation allowing K-12 students to use medical cannabis at schools. Under that plan, parents must bring the products to the campus but prohibits smoking or vaping.

End


Iowa Board Approves Removal of THC Limits

The Iowa Medical Cannabidiol Board has approved a set of policy recommendations that include a proposal to remove the 3 percent cap on THC in medical cannabis products and replace it with a purchase limit of 4.5 grams of products containing THC over 90 days, the Associated Press reports. The limit would not apply to the terminally ill and could be increased without board approval by a certifying physician.

Gov. Kim Reynolds (R), vetoed legislation earlier this year that would have removed the THC cap and imposed a 25-gram purchase limit over 90 days. In a statement at the time of the veto, Reynolds said that change was “not recommended by the board,” adding that it would “drastically expand Iowa’s medical CBD program far beyond its original scope of CBD-based treatments and could open the door to significant unintended consequences to the health and safety of Iowans.”

The board also voted to add post-traumatic stress disorder and intellectual disability with aggression and/or self-injury to the state’s qualifying conditions list. According to Marijuana Policy Project data, 23 states currently allow PTSD patients to qualify for medical cannabis access.

The addition of qualifying conditions must be approved by the Iowa Board of Medicine who will set an effective date for the change if it is approved. The THC limits’ removal must be approved by the Legislature and signed into law by the governor.

End


Massachusetts Patients Challenge Health Officials’ Right to Regulate Cannabis Vapes

The Massachusetts group representing medical cannabis patients in the legal fight against the state’s vaping ban is arguing that the Department of Public Health has no right to regulate cannabis vaping products, the State House News Service reports. In a memo filed in state Superior Court, the patients’ attorney Will Luzier argues that the 2017 cannabis legalization law transfers “authority to regulate all legal” cannabis from the Health Department to the Cannabis Control Commission.

The patients joined the lawsuit against the state brought by the Vapor Technology Association last month. They argue that the four-month ban – implemented in September by Gov. Charlie Baker (R) – leaves them without a good alternative to ingest their medicine.

“DPH now purports to have the authority to ban the vaporization of all marijuana products based on an alleged public health emergency. With the stroke of its pen, DPH purports to abrogate the Legislative mandate that marijuana vaping oils be legal and regulated by the CCC. This it cannot do.” – Memo to Massachusetts Superior Court

In the initial filing, Luzier, a former state assistant attorney general and advocate who led the 2016 legalization campaign, called the ban “overly broad,” contending that there is “no credible scientific evidence that licensed, regulated medical marijuana has caused vaping problems.”

Prior to the state-wide ban, the CCC announced that the agency would require vape products to include every additive used in the product, including thickening agent and terpenes.

When enacting the ban, Baker declared a public health emergency which gave the DPH commissioner the legal authority to “take such action and incur such liabilities as he may deem necessary to assure the maintenance of public health and the prevention of disease.”

Last week state health officials linked a second death in the state to the vape-related pulmonary illness, according to a Boston Globe report. Public Health Officials have received more than 200 reports of vaping-related illnesses and have reported 61 of them to the Centers for Disease Control.

End


L.A. City Council President Calls for Retail Cannabis Licensing Redo

Los Angeles City Council President Herb Wesson this week called on city regulators to not approve any new retail cannabis licenses, suggesting the latest licensing round — which kicked off in September — has been flawed from the start, the Los Angeles Times reports.

In a letter, Wesson urged the Los Angeles Department of Cannabis Regulation in a letter to stop processing new retail applications and refund the latest round of applicants. Wesson also called for either an independent audit of the city’s cannabis licensing process or for officials to start processing every application they receive (the latest licensing round has operated on a first-come, first-served basis but there were only 100 available licenses and the city reportedly received 300+ applications in the first three minutes).

“These are the only options that will provide the clarity and time we need to ensure that the application process is fair, transparent, and has integrity.” — LA City Council President Herb Wesson, in the letter

The latest licensing round was meant to be an opportunity to bring more social equity operators into the marketplace. However, Adam Spiker, the executive director of the LA-based cannabis trade group Southern California Coalition, told the LA Times that because of the first-come, first-serve nature of the process, things had devolved into a “fastest computer contest” that was ultimately disadvantageous for the entrepreneurs representing communities who were supposed to get a leg up under the social equity rules.

The licensing round also experienced other hiccups, including two applicants who were mistakenly given early access to the system, although officials said those applications were detected and moved to an appropriate place in line.

Business owners who received licenses during the latest round, however, were not pleased with the idea of having to redo the whole process. Several operators who received licenses have said they would sue the city if Wesson’s plan is enacted, Marijuana Business Daily reported.

Others, including Kika Keith of Life Development Group, an organization that advocates for social equity applicants in the city, said that delaying the licensing process any further would be catastrophic for businesses who are maintaining storefront leases without knowing whether or not they would receive a license.

End


CDC Official: Cannabis Regulations Could Help In Vaping Crisis

Anne Schuchat, the Principal Deputy Director for Centers for Disease Control and Prevention (CDC), suggested during a Friday CSPAN appearance that regulations for cannabis vaporizer products, including lab test and labeling requirements, would help to protect consumers from the ongoing and vape-linked pulmonary illness crisis.

First reported by Marijuana Moment, Schuchat’s statements were prompted by questions from people calling in to the program.

“I do think that labeling and information can help people know what they’re getting and then the systems that are there to enforce that the product is what it says it is can also help the consumer.” — Anne Schuchat, Principal Deputy Director of the CDC

Schuchat, however, stopped short of endorsing a federal legalization policy.

“The THC right now — pretty much the marijuana market, cannabis products — are at this point regulated at the state level, and many of those state regulations will talk about what needs to be done in terms of the testing and the quality control,” she said.

The ongoing vape crisis, which as of Thursday had affected 1,888 victims with 37 recorded deaths, appears to have mostly affected people who reported using unregulated THC vaporizer cartridges, not the lab-tested products that are available via state-legal markets. The crisis has sparked multiple statewide bans on flavored vaporizers (for both nicotine and THC) including a four-month ban in Massachusetts, a four-month ban in Washington, and a six-month ban in Oregon.

End


Lawmakers Introduce Decriminalization & Expungement Bill in Wisconsin

Legislation introduced in Wisconsin would decriminalize cannabis possession up to an ounce, expunge criminal records for possessing 28 grams or less, and prohibit police from searching vehicles based on the smell of cannabis, WUWM reports. The legislation is backed by the state’s Democrats, including Lt. Governor Mandela Barnes.

Barnes, who is African-American, said that in his hometown of Milwaukee, 40 percent of the population is African-American but represent 72 percent of all cannabis arrests in the city. Barnes said that research in the state has found “black people are four times more likely than their white counterparts to be arrested for marijuana offense while also being more likely to serve prison time for it.”

“Simple marijuana possession and/or use is not a reason for anyone to serve a prison sentence, lose out on a job, nor lose their voting rights.” — Barnes, on Twitter

Democratic state Rep. David Crowley said that the plan is aimed at social justice, saying that lawmakers “we want to provide a much-needed path for those previously convicted of these crimes to make sure they can get their records cleared.”

A previous decriminalization bill introduced in the state in 2017 included five Republican co-sponsors but that measure did not provide the criminal reforms that the new legislation includes.

Gov. Tony Evers said earlier this year that he would include a decriminalization plan when he unveiled his next state budget. That proposal would remove all state-level criminal penalties for possessing, manufacturing or distributing cannabis in amounts less than 25 grams and allow for expungement.

In 2014, state lawmakers introduced adult-use legalization legislation but it never made it to the floor for a vote.

End


Tectonic9 Dry Herb Grinder Review

The Tectonic9 grinder was introduced by Cloudious9, a vaporizer company focused on elevating dry herb technology. After a quick assessment of the innovations added to the grinder, anyone can see that the design was influenced by vape culture. Features of the Tectonic9 mitigate the issue of using our fingertips to squeeze ground bud into small herb chambers of portable vape pieces. In fact, a small motor does all that work for us.

Using the Tectonic9 dry herb grinder

This aluminum alloy dry herb grinder is a sleek matte black and has some weight to it. As far as the basics go, Tectonic9 is built like most conventional herb grinders. To load the herb just pull off the magnetized lid and push small, stemless nugs between its teeth. Now turn the lid back and forth until the herb is ground and visible in the next chamber of the grinder through the viewing window.

When it’s time to load the vape, slide the bar below the window to the left so that the round hole lines up with the herb chamber. Now flip the spout for dispensing up from the gadget so that it aligns with herb chamber opening. Lean the spout towards the vape or bowl and press the operational button to start vibration mode. That’s right, a small motor vibrates the grinder so that the herb pours itself into the piece. This function works if you move the grinder backward, leaving space for the ground herb.

The vibrating grinder is a cool gadget to show off, but it’s definitely meant for a specific customer. The Tectonic9 would be the perfect gadget or gift for someone who uses dry herb vapes. Anyone who has tried to load an herb chamber in a vape knows the hardship of squeezing and smashing herbs into a small cylinder. Using this small vibrating grinder takes the fingers and smashing out of the equation. It could also be ideal for joint, blunt, and backwoods rollers. Those who don’t want their fingers to reek of skunk will also appreciate the pouring feature of the Tectonic9.

Our final word is that this product is definitely recommended for the niche dry herb vape and joint-rolling markets.

 

End


Atomic9 Vaporizer Review

It’s clear just by looking at the Cloudious9 product line that the company is intent on standing out as individuals in vaporizer technology. A few years ago they launched the Hydrology9, a water-filtered dry herb vape that lights up like a lava lamp when operating in ‘Party Mode’. The Hydrology is revered as an at-home vape because it is a bit heavy and does tend to lose charge quickly. That is why the Cloudious9 team has introduced the Atomic9, a lightweight and low profile dry herb vape.

The Atomic9 fits discreetly in the palm of our hands and easily into a pocket or purse. It vapes at six optimal temperatures, 356°F, 374°F, 392°F, 410°F, 428°F, and 446°F. Each set-up contains a ‘Vapor Guide’ that explains what vape experience will result from each temperature setting. The entire Atomic9 is made up of 11 components and despite the elegant experience it provides, it’s simple to use.

How to use the Atomic9:

  1. Flip the mouthpiece open by following the arrow indicator. 
  2. Use the small silver slide on the body of the vape to slide the shovel up out of the chamber.
  3. Scoop herb into the heating chamber using the shovel and tamp lightly. Wipe away herb from the heating chamber to allow mouthpiece to close properly and close the mouthpiece. 
  4. If the vape is off press small oval button three times quickly to turn it on.
  5. Once the vape turns on it will begin heating to the last temperature it was set to. The screen above the oval ‘On’ button will read the temperature.
  6. Enter the temperature adjustment mode by holding down the oval button for three seconds. Once the mode is achieved the temperature on the screen will blink. Each press of the oval button in this mode will move the setting between each temperature. Once the preferred temp is selected hold down the oval button for 3 seconds and the vape will go back to heating mode.
  7. The LED light indicator with the Cloudious logo will be lit red while the chamber is heating. It will turn green once the desired temperature has been reached. 
  8. Once temps are achieved simply draw from the mouthpiece slowly, inhale and enjoy. 
  9. To turn off the vape, hold the oval button down for 3 minutes. The Cloudious9 cannot be turned off while in temperature adjustment mode.

We had a pleasant experience using the Atomic9 vape. Vaping around 374°F, the second temperature setting, the vape produces a true-to-flower flavor with a super light vapor. It heats to 374°F in less than a minute. At the next highest setting (392°F) there is a more visible vapor without too much sacrifice in the flavor. Even at 410°F setting the Atomic9 didn’t burn the ground Indica flower that we put in the chamber. When we were finished, the chamber easily emptied and all the herb was vaped evenly throughout. 

One full chamber in the Atomic9 would be enough for around 3-4 stoners to sesh with, no problem. But don’t forget to get a full charge before taking the piece out. Easily check the battery level by holding the operational button down for three seconds, then the Cloudious9 LED logo will light green to indicate full, yellow to show that it’s half, and red to indicate a low battery. To get a full charge plug the small, portable dry herb vape into a USB port for about 50 minutes. 

After using the Atomic9 we can safely say that it would be great to take on the trail for a low profile summit toke. It is small and light so it can fit easily in a fanny pack or jacket pocket. But despite the size it still has a chamber large enough for the core group to sesh together. This is a great portable dry herb vape and definitely worth recommending to someone who prefers flower.

End


Binge Drinking Drops 9% Below National Average in Legalized States

Based on research from Cowen & Co, Grand View Research reports that binge drinking in U.S. states with legal recreational cannabis has dropped 9 percent below the national average, according to Financial Buzz.  The researchers found that excessive drinking in states with legalized cannabis is also 11 percent lower than in states where cannabis remains outlawed.

Washington, one of the first states to legalize recreational use, reported last year that about 15.6 percent of adults said they had four or more drinks – the threshold for ‘binge drinking’ – on just one occasion in the past month; the national average of 17.4 percent, according to the United Health Foundation’s America’s Health Rankings.

A February report by IWSR Drinks Market Analysis and BDS Analytics, titled Beverage Alcohol, Cannabis and the Changing US Consumer: What are the Real Risks and Opportunities to Consumption Behaviour?, found, however, that in states with adult-use sales, alcohol consumption “still remains higher” with twice as many adults 21-and-older consuming alcohol compared to cannabis, the Spirits Business reports.

Brandy Rand, IWSR’s U.S. president, told Spirits Business that while cannabis adoption was “not mainstream,” it “does pose a risk to the beverage alcohol industry in the future.”

“It’s important that alcohol brands pay attention to their consumers, recognizing that some occasions may result in a decrease in alcohol consumption in place of, or alongside, legal cannabis.” – Rand, to Spirit Business

Jessica Lukas, vice president of BDS Analytics, said the firm’s research shows that up to 40 percent of legal-age adults consume cannabis in legal states.

“Cannabis presents substantial opportunities across consumer industries, including new occasions that alcohol cannot and will not play,” she said in the report. “Consumers will continue to look to cannabis products over alcohol for occasions when they are feeling creative, need to get motivated, or seeking health, medical or wellness benefits.”

A 2018 Euromonitor International survey of 50,000 young adults and adolescents in the U.S. found that college students who consumed alcohol daily halved in just one year from 4.3 percent in 2016 to 2.2 percent in 2017. In 1980, 6.5 percent of that population used alcohol daily. In 2017, Yahoo! News found that the majority of the 55 million cannabis users in the U.S. are millennials.

A New Frontier Data study in April found that 65 percent of survey respondents said they prefer cannabis to alcohol if given a choice, 45 percent indicated they would likely replace some of their drinking with cannabis in the future, and 47 percent said their drinking habits had not changed.

Some studies and anecdotal evidence suggests cannabis could be useful as an exit drug for alcoholics, and a 2018 study suggests that CBD could be used to reduce the risk of relapse among recovering alcohol and cocaine addicts.

Alcohol company Constellation Brands owns about 38 percent of Canadian licensed cannabis producer Canopy Growth.

End


Illinois Cannabis Workers Unionize Claiming Unfair Labor Practices

Workers at Rock Island, Illinois medical cannabis company Green Thumb Industries have formed a union amid claims of unfair labor practices, harassment, retaliation, and unlawful intimidation, the Quad City Times reports. The workers told city officials on Monday that the company refuses to recognize the union.

Kyle Meyer, who has worked at GTI two years, told the Times that the employees “ran a clean campaign” to form the union and asked for recognition from the company on October 10 but company brass never got back to the employees, despite notices.

“For months, my coworkers and I listened to complaining from managers, supervisors and coworkers about losing benefits, having promised raises unfulfilled and a general lack of organization, and that’s when we decided to form a union.” – Meyer, to the Times

In response, several aldermen are asking the city to stop supporting companies that break the law with tax breaks. In all, GTI is set to receive $835,000 in tax breaks from the city after the City Council unanimously approved a $775,000 incentive package in December and increased the package by $60,000 in August. The incentives will help the company double its Rock Island facility to 66,000 square feet and hire another 100 workers; currently, there are more than 50 employees at the facility.

Since October 10, four complaints have been filed with the National Labor Relations Board against GTI by the Teamsters union on behalf of the workers. The Teamsters represent 1.4 million members. The complaints allege that employees were illegally polled and interrogated about their union organizing, according to documents obtained by the Times through a Freedom of Information Law request.

Ald. Dylan Parker said it infuriated him that a company that was violating the law was also getting tax breaks.

“If you’re going to be harassing employees, if you’re going to be violating labor laws, you’re not getting tax money from Rock Island citizens, so I would request your support on this,” he told his colleagues, the report says.

Mayor Mike Thoms said the council “didn’t hear the other side’s point of view” and that “it’s not the city’s role to intervene in a private businesses like that.”

“It’s a private industry; it’s their business. Not the city’s,” Thoms told the Times. “The business has lived up to its promise on the incentives by adding jobs and adding capital to their building and that’s what the city asked for.”

On October 12, California Gov. Gavin Newsom (D) signed a law requiring cannabis retailers enter into “labor peace agreements” which requires them to make a deal with a formal labor union and prohibiting managers from interfering with union activities. In exchange, organizers won’t encourage labor strikes.

Only New York also has cannabis industry labor peace agreements codified by law. Illinois legalized cannabis for adult use last year. Sales are expected Jan. 1.

End


Report: 80% of Random Denver Flower Samples Fail Mold, Yeast Tests

About 80 percent of cannabis randomly tested by the Denver, Colorado Department of Public Health and Environment failed tests for potential yeast and mold, according to a Westword report. The agency has not yet made the results of the tests public but Westword was able to review reports from the action filed between September 9 and September 11.

City officials announced the assessment in August, explaining that it would conduct the tests in about 25 retail dispensaries and the participants and samples would be randomly selected.

“Each sample will be tested for pesticides and total yeast and mold by a state- and ISO-certified marijuana testing facility,” the agency said in the announcement.

Of the 25 reports filed over the two days, 20 products tested resulted in at least one or more hold and quarantine orders for flower, shake or pre-rolls, an 80 percent failure rate. Each of those holds is tied to plant matter testing above the maximum counts for total yeast and mold, the report says.

Some of the products tested may not have been from the random sample, though, according to DDPHE food and marijuana safety manager Abby Davidson who told Westword some could be from “routine inspections” and that the agency doesn’t “typically” conduct 25 investigations a week.

“All of our enforcement in our work from the beginning of workings with marijuana facilities is public. So maybe some [reports connected to the assessment] went out before, maybe some went out after.” – Davidson, to Westword

One dispensary owner who failed the assessment blamed the result on the state’s tracking system, METRC, which, the owner claims, allowed them to buy the flower which should have been flagged by the tracking software if it failed laboratory testing.

“If we had any inclination that the product would not have passed testing, we would have not received or purchased the product wholesale,” the dispensary owner told Westword. “We are debating whether or not to take legal action against the vendor for this inconvenience and loss of business that we have experienced.”

Davidson admitted that dispensaries might not have had any hand at contaminating the products that failed the assessment.

“Or it could be that there were processes that happened after cultivation that maybe would’ve led to contamination,” Davidson said in the report. “It’s really hard to point any fingers until we’re able to do our investigation and backtrack to how that product got to that dispensary.”

An industry CEO said the agency tests are “based on questionable scientific principles.”

End