Texas Shuts Down Dispensary Application Website

The Texas Department of Pubic Safety has abruptly suspended the medical cannabis application process without an explanation just one week after it had opened it up, the Texas Tribune reports. The agency had indicated it would accept applications from Oct. 1 through Nov. 1.

“The Department’s Compassionate Use Program is not accepting applications at this time,” the department’s website says.

“The department will continue to assess dispensing capacity requirements, along with the need for any additional licenses, as we work through recent legislative changes to the program.” – A DPS spokesperson, in an email to the Tribune

In 2017, just three companies were approved to dispense medical cannabis in the state out of 43 that applied. Only Surterra Texas, Cansortium Texas, and Compassionate Cultivation were approved by DPS in the first application round two years ago.

Jax Finkel, executive director of Texas NORML, said it was a “concerning” move by the agency, and that doctors, patients, and the general public were given “no notice and no clear communication.”

State Rep. Stephanie Klick (R), who sponsored the measure to expand the state’s medical cannabis law last session, said the delay was “temporary.”

“Hang tight for now,” Klick told the Tribune. “This is likely just a temporary delay until we know which of the incurable neurodegenerative conditions are appropriate to be included on the list.”

Klick said that officials are trying to determine new patient count estimates after the state added incurable neurodegenerative diseases to the qualifying condition list, which she said could take months.

In May, lawmakers added seizure disorders, multiple sclerosis, spasticity, amyotrophic lateral sclerosis (Lou Gehrig’s Disease), autism, terminal cancer, and incurable neurodegenerative diseases such as Alzheimer’s, Parkinson’s, and Huntington’s diseases to the state’s medical cannabis program.

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Quebec to Appeal Home Grown Cannabis Ruling

The Quebec government will appeal a September court decision that ruled the province’s ban on home cannabis cultivation is unconstitutional, the Canadian Press reports. Last month, Superior Court Justice Manon Lavoie ruled that the ban equals criminal legislation, which is under federal jurisdiction.

Under Canadian federal law, citizens are allowed to grow up to four plants in their home but Quebec ultimately banned home cultivation under provincial regulations.

Following the ruling, Julien Fortier, the attorney who brought the case, called it a “very technical” decision and warned that the government could bring an appeal or try to rewrite the law in a constitutional way.

Quebec Premier Francois Legault told Airdrie Today that the government “will go right to the limit in the courts to do what we think is good for Quebecers.” He added that both major provincial parties – Coalition Avenir Quebec and Liberals – agree on the ban.

Lionel Carmant, Quebec’s junior health minister, said the province’s stance is different than the rest of the nation and officials support a public health approach to cannabis use and avoid trivializing cannabis use. He added that property owners “think it would be bad for their apartment rentals to permit the growing of cannabis in the home.”

Manitoba has also banned home cannabis cultivation.

Among Canadian provinces, Quebec has taken a conservative approach to cannabis policy and legalization. In July, the government announced a ban on THC-infused candies and confections and capped edible potency at 5 milligrams of THC per unit and 10 milligrams of THC per package; drinkable products are capped at 5 milligrams per container and cannabis-infused topicals will also be banned temporarily. The government is also planning on raising the legal age to purchase and consume cannabis from 18 to 21-years-old.

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American Trucking Associations Propose Policies for Legal Cannabis

The American Trucking Associations is endorsing policies to help the industry operate while states legalize cannabis for medical and recreational purposes. The trade association is calling on the government to continue allowing for cannabis testing for employees and roadside tests for drivers, in addition to lifting federal restrictions on cannabis research, and the creation of a “marijuana victim’s compensation fund.”

The ATA says that loosening federal restrictions on research would allow for studies that focus on the impact of cannabis-impaired driving.

“ATA has long been an advocate for reducing impaired driving – in all its forms – so it only makes sense that we would call upon state and federal governments to consider the impact of increased use of marijuana on our roadways.” — ATA President and CEO Chris Spear, in a press release

The compensation fund would be paid for by cannabis industry operators, such as dispensaries, cultivators, and manufacturers. 

According to a Transport Topics report, the policies were developed by the ATA’s Controlled Substances, Driver Health and Wellness Subcommittee. The ATA has previously called on the government to allow alternative drug testing methods, backing the creation of a national database for positive alcohol and drug test results, and strengthened anti-impaired driving laws.

“This policy allows us to, while recognizing that the modern world is changing, advocate for strong, safety-oriented policies backed by sound science and data,” Spear said in a statement.

According to the ATA, more than 93 million Americans live in a place with legal adult-use cannabis.

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Oklahoma Approves 200,000 Medical Cannabis Applications

Oklahoma officials have approved medical cannabis applications for at least 200,000 patients, according to a KFOR report. It’s an average of 3,500 approved applications per week since the Oklahoma Medical Marijuana Authority began accepting applications last year.

Under state law, patients must pay $100 to obtain the license once their application is approved.

Last month, new rules for medical cannabis took effect in the state including seed-to-sale tracking requirements, rules prohibiting physicians from making recommendations in a dispensary, preventing municipalities from barring medical cannabis businesses, and language explicitly allowing medical cannabis patients to possess firearms.

The firearm provision was included due to federal law prohibiting those who buy firearms from using “illegal drugs” — a question asked on federal gun background check forms.

The law also allows employers to consider a patient’s status if they work in “safety sensitive” positions such as firefighting, heavy machinery operation, or handling hazardous materials.   

The rules also require product testing; however, the state has yet to open up applications for testing laboratories. 

Last year, police in Adair County arrested a registered medical cannabis patient. According to a News9 report, that charge was ultimately dismissed.

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ACLU Sues Pennsylvania County for Blocking Parolee Patient Access

The Pennsylvania American Civil Liberties Union is suing Lebanon County over its decision to prohibit people on parole and probation from using medical cannabis, the PA Post reports. The county announced earlier this month they would no longer allow registered patients to use cannabis if they were on probation or supervised release.  

The ACLU says at least seven other counties in the state have policies barring people on parole and probation from using medical cannabis and they hope the Lebanon County case has statewide implications. The group says county officials are not immediately detaining people but could put them in violation proceedings if they test positive for cannabis during their mandated check-ins. 

State ACLU Legal Director Vic Walczak said that the state’s medical cannabis law “makes no exception for people on probation.” He estimates that there are about 60 medical cannabis patients in the county that could be impacted by the lawsuit. The group filed the lawsuit as a class-action and is seeking a preliminary injunction which would prevent the county from implementing the new rules. 

“Judges may not agree with the medical marijuana law. They may not support anybody using marijuana. But they must follow the law.” – Walczak, to the PA Post

Lycoming, Indiana, Jefferson, Forest, Elk, Potter, and Northampton counties are also accused of prohibiting medical cannabis patients who are on parole or probation but the ACLU has not filed any lawsuits against those counties.

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MedMen Terminates PharmaCann Acquisition Deal

MedMen Enterprises Inc., which operates cannabis companies throughout the U.S., has terminated a deal to acquire PharmaCann, LLC, who will pay termination fees to the firm via the transfer of three entity licenses in Illinois and Virginia.

Adam Bierman, MedMen co-founder and chief executive officer, said the termination of the deal is “in the best interest” of the company’s shareholders “to deepen, rather than widen, our Company’s reach.”

“Looking at the PharmaCann portfolio today, Illinois has emerged as the most attractive opportunity for our longer-term, strategic growth plan. The addition of those assets, without dilution, is a win for MedMen and our shareholders.” – Bierman, in a statement

PharmaCann still holds licenses for 26 retail stores and 5 cultivation and processing facilities in New York, Illinois, Massachusetts, Pennsylvania, Ohio, and Maryland.

In a press release, PharmaCann described the termination of the agreement as “mutual” and Executive Officer Brett Novey indicated that the company had tripled its revenues over the last year.

The deal was announced last year as the largest U.S. cannabis industry acquisition to date at $682 million in stock.

MedMen also announced that it had terminated Chief Financial Officer Michael Kramer and appointed Chief Corporate Development Officer Zeeshan Hyder to the role. The company credited Hyder with working with the CEO to take the firm public on The Canadian Securities Exchange and raising $500 million in capital for direct investment into the business. MedMen stock was down 13.54 percent at the end of trading yesterday following the announcements.

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Maryland Firm Harvests East Coast’s First Outdoor Cannabis Crop

The East Coast’s first outdoor commercial cannabis crop cultivated by Culta is being harvested in Maryland, the Baltimore Sun reports. It’s a 1-acre multimillion-dollar “experiment” in a part of the country ill-suited for outdoor cultivation where licensed producers usually grow indoors and in greenhouses.

The plants from the harvest will be used for concentrates, tinctures, and vape cartridges, rather than raw flower. The crop was grown on a site contaminated by the 1989 Cambridge Butter Fire and Culta had to clear four inches of contaminated soil from the site that was scarred by a multiday grease fire.

Mackie Barch, the owner of Culta, said the harvest was “a race against the clock” as the weather begins to turn on the East Coast. If the company sees profits with the crop it could perfect its process and corner the market in “sun-grown” cannabis on the East Coast. Sun-grown cannabis is often marketed as more sustainable than its indoor-grown counterparts.

In Maryland, many municipalities have banned outdoor cultivation over odor concerns and other states have their own restrictions due to safety concerns.

Brian Vicente, a Colorado-based cannabis attorney and industry consultant, told the Sun that most states don’t allow outdoor cultivation when their cannabis programs go online.

“There’s a sort of rule of thumb that when marijuana first becomes legal, it gets regulated like plutonium.” – Vincente, to the Sun

Culta had to employ 12 seasonal workers to help harvest the crop and the buds were flash-frozen or cured depending on how they would be used. The company’s experiment involves “pheno-hunting” in an effort to see what plants grow well in the climate. They estimate that about 90 percent of the variants planted in the plot will not be used again because they are not hardy or distinct enough. The other 10 percent will be cloned and replanted alongside the next experimental crop.

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Australian Government Investing $3M for Medical Cannabis Studies

The Australian government is investing AU$3 million to study the benefits of medical cannabis for pain, symptom, and side effect management for cancer patients, according to a Health Europa report. The funds come from the federal Medical Research Future Fund.

“There have only been a limited number of well-designed clinical studies on medicinal cannabis, and we need to increase the evidence base to support medical professionals to make their decisions.” – Minister for Health Greg Hunt, via Health Europa

Hunt indicated that there are more than 11,000 registered medical cannabis patients in the country, the majority of which had been approved this year. The nation’s first medical cannabis cultivation license was approved in March 2017; there are now 78 total licensees in Australia, the report says.

Hunt credited Australian actress Olivia Newton-John with helping to “shine a light on the benefits associated with medical cannabis.” Newton-John, 71, has been diagnosed with breast cancer three times since 1992. She told a crowd during Melbourne’s annual Wellness Walk and Research Run on Oct. 6 that she is “feeling fantastic” through a combination of cancer treatment and medical cannabis use, according to an Independent report.

Recreational cannabis use remains illegal throughout most of Australia; however, last month the Australian Capital Territory approved reforms allowing residents 18-and-older to grow two plants and possess up to 50 grams of cannabis. Hunt has said that the federal government does not support recreational cannabis legalization.

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WeedClub, a Division of Farmhouse Inc., Announces Oct. 15 Cannabis Networking Event in San Francisco

Farmhouse CEO to Deliver Cannabis Fundraising 101, Host VC Lightning Talks and @420 Pitches (Speed Round) on Oct 15 at WeedClub® in the Twitter Building in San Francisco, California.

SAN FRANCISCO, CA, Oct. 3, 2019 — WeedClub®, a division of Farmhouse Inc., is pleased to invite cannabis and hemp industry stakeholders to its office at Runway in the Twitter Building on October 15 for an evening of growth stage and investor-related content.

Event Registration Link:

https://www.eventbrite.com/e/weedclub-presents-fundraising-101-vc-lightning-talks-420-pitch-speed-round-at-runway-tickets-74025958635

The evening will begin with freestyle networking so that the previously fractured cannabis supply chain can be united together, along with other stakeholders such as: Investors, Service Providers, Startups and Growth Stage companies.

After participants have met key influencers during the networking segment of the event, Farmhouse, WeedClub and Extract Co-Founder Evan Horowitz will deliver a live Presentation: Cannabis Fundraising 101.

Then, currently active investors on the WeedClub Platform will deliver from-the-heart overviews of what they are looking for as they evaluate Founders and Companies.

Evan Horowitz said, “All attendees are welcome to ask questions and participate in a deeper conversation as we work together as one industry to solve critical problems. Founders will learn more ways to find investor alignment, and Investors will discover new businesses to add to their portfolios.”

To Register for the October 15, 2019 WeedClub® Event at Runway in the Twitter Building, WeedClub® Presents: Fundraising 101, VC Lightning Talks, @420 Pitch Speed Round please visit Eventbrite at:

https://www.eventbrite.com/e/weedclub-presents-fundraising-101-vc-lightning-talks-420-pitch-speed-round-at-runway-tickets-74025958635

Interested in Pitching? Submit your company at https://www.weedclub.com/pitch

WeedClub® Friends in High Places! is a Division of public company Farmhouse Inc. $FMHS

Follow us for regular updates at https://twitter.com/420

Join WeedClub® @ https://weedclub.com


Disclaimer: Ganjapreneur’s CEO and Cofounder is a shareholder of Farmhouse Inc.

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Report: Hemp-Derived CBD Could Reach $23 Billion by 2023

The hemp-derived CBD market could be worth $23 billion by 2023, which works out to about $40,000 per acre at the farm level, according to a Brightfield Group report outlined by Successful Farming. In the Hemp Cultivation Landscape study, analysts estimate that 285,000 acres of industrial hemp was cultivated in the U.S. this year — an increase of 72 percent from last year.

The report suggests that about 87 percent of hemp acreage will be used for CBD processing this year, while they expect that share to drop to 82 percent by 2023. In all, the researchers anticipate 2.7 million planted acres of hemp by 2023.  

Researchers found that Colorado is growing the most hemp in the U.S. with an estimated 42,500 acres. Colorado is followed followed by Oregon (29,859), Montana (29,400), Tennessee (20,000), and Arizona (18,000). By 2023, the report maintains Colorado and Oregon in the top spots, with an estimated 313,059 acres and 275,357 acres, respectively. California would rank third (252,487), followed by Arizona (243,786) and Tennessee (243,786). 

The report also found that farmers are spending, on average, $300 to $350 per acre for fertilizer but that some farmers are spending as little as $85 while others spent up to $1,000. The report notes that some farmers do not believe fertilizer is necessary for hemp cultivation. 

The analysis points to four risks for hemp cultivation: difficulty finding clones or feminized seeds, the lack of processing equipment causing it to be a labor intensive crop, lack of traditional markets, and cross-pollination and pollen drift issues.

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Maine Adult-Use Cannabis Sales Expected by March

Maine is on track to commence adult-use cannabis sales by March 2020, the Associated Press reports. The adult-use market was approved by voters in 2016 but regulations were vetoed by then-Gov. Paul LePage twice until his second veto was overridden by lawmakers.

State cannabis regulators released their industry rules in late April and the Maine Office of Marijuana Policy is expected to adopt final rules for the industry within two months.

David Heidrich, an OMP spokesman, told the AP that the state is expecting revenue from cannabis sales beginning March 15 but the agency will only be able to act quickly on complete applications from municipalities that have opted into adult-use cannabis sales; so far, just 15 of Maine’s 455 municipalities have opted in. 

Under a law signed by Gov. Janet Mills (D) in June, Maine has among the strictest residency requirements for cannabis businesses in the nation. Owners or those who own a majority interest in the company must have lived in the state for four years in order to get a license; although, the rules do allow out-of-state companies to control Maine cannabusinesses.

Analysts suggest that Maine’s market will be larger than its New England counterpart, Massachusetts, with a customer base of about 173,000 and projected revenues of $107 million by 2020. Massachusetts budget officials expect $84 million in cannabis sales in the state by 2020. 

Heidrich said his office expects to begin accepting applications by the end of the year.

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Canadian Cannabis Company Targeted By U.S. Class-Action Lawsuit

Canadian licensed cannabis company Sundial Growers Inc. is being sued in the U.S. for allegedly failing to disclose that a customer returned $1.9 million — about a half-ton — worth of cannabis, according to a MarketWatch report. Zenabis Global, the company that reportedly sent the cannabis back to Sundial and terminated its agreement with the firm, claims that the cannabis was of poor quality and contained bits of rubber gloves and visible mold.

The lawsuit is a class action and alleged that Sundial “made false and misleading statements” about its product. The lawsuit claims that Sundial “failed to supply saleable cannabis in line with contractual obligations to Zenabis Global Inc,” and that the company’s statements about its “businesses, operations, and prospects were materially false and misleading and/or lacked a reasonable basis at all relevant times.”

The transaction occurred around the time that Sundial went public on the Nasdaq on Aug. 1 with a $1 billion valuation and after raising $143 million, MarketWatch reported on August 20. The Initial Public Offering did not disclose that Sundial had a half-ton of product returned and did not mention the issue during a presentation in Toronto, Ontario, the report says. It had disclosed to the Securities and Exchange Commission that it had received C$3.3 million in penalties for not delivering cannabis to partners as promised in 2018. Shares had sold for $13 in the IPO. 

In a statement to the CBC, Sundial said they “are aware of the complaints” but do not comment on active litigation.

“… We believe that the claims are without merit and the company intends to vigorously defend itself. Sundial remains focused on what has made us successful: the growth of our business through a commitment to producing safe, innovative and high-quality products.” – Sundial, in a statement to the CBC

Philip King, an attorney with New York-based Rosen Law Firm, said in the U.S. these lawsuits are rare but are taken seriously by market regulators.

“In a claim like this, it’ll be the defendant’s obligation to demonstrate that the price declines were caused by something other than the misstatement in the offering,” Kim told the CBC.

Zenabis has declined to comment due to “disclosure rules” but indicated they had included “all material information” about the return in their second-quarter results. 

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Kushy Punch Raided; Authorities Allege Unregulated Market Dealings

A licensed California cannabis company is accused of manufacturing products for the illicit market after the Department of Consumer Affairs served a search warrant last week at Kushy Punch’s Los Angeles facility, according to a Leafly report. Authorities seized gummies and disposable vapes in the company’s packaging in the enforcement action.

Bureau of Cannabis Control spokesperson Alex Traverso told Leafly that the agency confiscated “thousands of illegal vape carts worth millions of dollars.” The seizure comes amid a nationwide breakout in pulmonary illnesses that have been linked to cannabis and nicotine vape products.

A source told Leafly that the company had two manufacturing facilities – one for legal, and one for illegal products. The source claims that the illicit market products are manufactured using “untested black market oil that is heavy in pesticide.” The BCC was informed of the illegal facility based on a tip that “checked out 100 percent.”

“Based on the tip, there is a legal side of things and an illegal side of things. We’re still investigating both sides of the equation. If this is something we’re seeing linked back to someone who has a license I would be surprised if they had a license much longer.” – Traverso, to Leafly

Ruben Cross, CEO for Kushy Punch, said that the allegations are “completely false” in an email to Ganjapreneur. “BCC went into an old storage warehouse and found two-year-old disposable vapes with dead batteries than have been off the market even before regulations came around and they assumed we are selling vapes to the black market,” Cross said.

Kushy Punch provides products in both the medical and recreational markets.

NORML co-director Ellen Komp told Leafly that the trend of companies selling products illegally “started happening … when California’s pesticide regulations kicked in.”

“It stands to reason that not everyone might have destroyed all their expensive products [that wouldn’t have passed testing],” she told Leafly.

There has been a long-standing rumor in California about licensed operators who deal in the state’s unregulated cannabis industry. The investigation is ongoing.

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Washington Cannabis Regulators Extend MJ Freeway Contract

The Washington State Liquor and Cannabis Board (WSLCB) has granted MJ Freeway a two-month contract extension to maintain the state’s traceability system, Leaf Data Systems (LDS). There will be no more updates to the system for the foreseeable future, according to an email sent by Deputy Director and Executive Sponsor  Megan Duffy.

The WSLCB will use the two-month extensions to negotiate a contract with MJ Freeway to maintain the troubled Leaf Data Systems only. This latest development comes on the heels of a complete Leaf Data Systems shut down in mid-July 2019 and scraps the timeline for LDS completion released by the LCB in April earlier this year.

Additionally, in the email, Deputy Director Duffy acknowledges the uncertain future of Leaf Data Systems.

“…LCB is looking to take stock of developments in public policy and other factors that will affect cannabis activities over the next three to five years. As more states enter this arena, Cannabis 2.0 is the LCB’s effort to look ahead to anticipate how that and other developments may affect us. As part of the effort, the LCB is currently working internally to strategically envision what that future of traceability looks like. We are engaging with a small group of industry stakeholders to gain some initial insight and, later, we’ll be engaging our broad stakeholder base.” — LCB email excerpt

MJ Freeway was first granted the contract to complete Leaf Data Systems in 2017 after BioTrack THC and the LCB were unable to negotiate a new contract. Since then, LDS has been plagued by multiple issues, leaving Washington without a reliable, state-run traceability system for nearly two years. 

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Virginia Attorney General Calls for Cannabis Legalization

Virginia Attorney General Mark Herring tweeted last week that it is time for the state “to move toward legal, regulated adult use” of cannabis. Herring’s tweet included a link to a University of Mary Washington poll that found 61 percent of Virginians supported legalizing cannabis.

In 2017, a poll by the university found just 31 percent favored cannabis legalization.

It’s the second time this year Virginia’s top cop has come out in favor of cannabis law reforms – in a June op-ed in the Daily Press, Herring said prohibition “is needlessly creating criminals and burdening Virginians with convictions” and called for broad decriminalization.

Herring pointed to state crime data that shows low-level cannabis arrests in the state rose dramatically from 2003 to 2017, from 13,000 to 28,000. The number of first-time cannabis convictions also spiked from 6,500 in 2008 to 10,000 in 2017, Herring said, adding that prosecutions and incarcerations associated with cannabis criminalization cost the state $81 million annually “in addition to the staggering human and social costs.”

Gov. Ralph Northam, a Democrat who included cannabis law reforms in his campaign platform, has maintained his position on decriminalization. There are at least two cannabis legalization bills in the Legislature; last year, however, lawmakers defeated two bills that would have decriminalized cannabis in the state.

Del. Steve Heretick (D), a former federal prosecutor and former president of the Virginia Board of Medicine who introduced the failed decriminalization bill last year, told the Virginian-Pilot that he plans on introducing a tax-and-regulate measure next session. Heretick did tell the Virginian-Pilot that he doesn’t think that the state is ready for legalization “today” but that “it’s coming,” which is why he filed the bill. Heretick said he also plans on introducing a decriminalization measure – which has already been defeated four times in the state.

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USDA Awards Grant to Hemp Pollen Migration Researchers

The U.S. Department of Agriculture has awarded a $500,000 grant to Virginia Tech and University of Tennessee, Knoxville researchers studying the transport of pollen from genetically modified hemp and switchgrass, the Augusta Free Press reports. The team will use mathematical models and drones to study how the plants’ pollen travels.

David Schmale, a professor in the School of Plant and Environmental Sciences at Virginia Tech’s College of Agriculture and Life Sciences, said the models are “critical to establishing appropriate isolation distances for GE crops and making informed regulatory decisions.”

Shane Ross, professor in the Kevin T. Crofton Department of Aerospace and Ocean Engineering in Virginia Tech’s College of Engineering, said understanding how pollen travels is important for the future of the hemp industry.

“Long-distance pollination is of concern due to the possibility of unintended cross-contamination between different hemp varieties, such as those used for fiber and for CBD (cannabidiol).” – Ross, to the Free Press

Ross said the team’s main goal is to understand exactly how far the pollen travels.

“Using sensors onboard drones, we can collect pollen and forecast its movement at different altitudes and distances from source fields,” Ross said. “Our models take input like the size of the pollen grains, the wind conditions for that day, humidity, temperature, and things like that. Then they can forecast the trajectories of the pollen grains and where they’ll get deposited.”

Schmale indicated that the researchers were initially only going to focus on switchgrass but added hemp to the project due to the rise in interest in the crop, specifically for CBD. He added that this type of research has never been conducted on hemp.

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Using Mergers and Acquisitions to Grow Your Cannabis Company

Mergers and acquisitions are happening fast in the cannabis industry. In 2018, Forbes predicted there would be an explosion of M&A throughout the medical marijuana industry. It turns out their predictions were right: 2019 has seen the biggest mergers in history within the cannabis sector, and the trend isn’t slowing down.

In order to understand how companies grow through M&A, let’s start with today’s biggest cannabis players.

Cannabis M&A 101: Here’s How Major Players Have Merged and Acquired 

If you want to understand how to successfully leverage M&A to grow your own cannabusiness, take some lessons from today’s top players.  

Tilray Merges with Its Largest Shareholder 

Tilray has completed multiple successful mergers, such as their recent merge with High Park. This merger allowed them to obtain a 662,000 square foot greenhouse facility. 

However, Tilray’s most notable merger was their recent merge with Privateer, which allowed Tilray to take back control of their stock prices. Before the merger, Privateer held the majority of Tilray’s stock. Vivien Azer, an analyst with Cowen and Company, told CBC News that the transaction effectively flips the control of a stock sale from Privateer to Tilray and provides Tilray more control. Specifically, the deal allows Tilray to increase its ability to manage the shares within the hands of public investors.

Aurora Buys Up The Competition 

“If you can’t beat ’em, join ’em.” That’s exactly what Aurora did during a round of mergers in 2018. 

In the past, marijuana producers were smaller, independent companies. As you can imagine, being a smaller company in a growing field of giants has its struggles. Access to capital is a huge barrier to expansion, but so are more complex issues such as the infrastructure required to distribute cannabis in different states and provinces. If a small, independent-type business hopes to expand, they face an uphill battle and often don’t have the team, expertise, and capital required to expand to the level that giants such as Aurora already play at.

Not only did Aurora merge with smaller producers such as H2Biopharma, they also merged with their main competitor, CanniMed.

Canopy Preparing for the Future 

Canopy’s biggest merger yet was with the U.S. company Acreage, but the deal going through is contingent on the end of cannabis prohibition in the U.S. Even still, the merger allows Acreage shareholders to rake in about $300 million, with the rest of the money contingent on legalization at the U.S. federal level. This is a bold move by Canopy because it’s a complicated deal with lots of red tape — if the deal is completed, however, it would position Canopy as a global player to be reckoned with.

Interested in growing your own company through M&A?

Wondering where to go from here? Good news! You can acquire what you lack. M&A can help solve a variety of problems faced by growing companies.

Here’s what you can focus on: 

1) Keep an eye on top players 

It helps to know what’s going on in the big leagues, even if you’re in the little leagues at the moment. Keep an eye on new trends, big mergers, and other top stories. These can help you predict trends in the future, avoid making the same mistakes, and start to learn patterns within the industry.  

2) Understand your strengths and weaknesses   

Successful M&A is a result of each party leveraging their strengths and weaknesses to create something greater together than what existed when they were apart. 

For example, Tilray’s merger with Natura Naturals Holdings allowed Tilray to supply more cannabis products across Canada to a customer list they previously didn’t have access to. Tilray’s ability to widely distribute matched with Natural Naturals Holdings customer list combined to create something bigger than they were before.  

Be sure to analyze your strengths and weaknesses in a variety of verticals, such as: technology, talent, infrastructure, geography, product lines, and proprietary information.

3) Think outside the box  

As legal adult-use cannabis becomes more widespread, the plant’s uses and applications will grow accordingly. That’s why we’ve seen players like Budweiser enter the market

It also means successful organizations are always looking to innovate and grow. Just because something isn’t available yet to the public doesn’t mean it’s off the table. If your cannabis company has the ability to do its own unique take on something, use this to your advantage. For example, there’s a strong chance there will be greater demand for food, beverage, and cosmetic cannabis products in the future. What can your company do to stay ahead of the curve?

Before you go, take some advice from Kevin Murphy, CEO of Acreage: “One important investment principle I learned early on: Do what everyone else is not doing and be right.”

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hemp flower for veterans

Jason Ambrosino: CBD Hemp Flower for Veterans

Jason Ambrosino recently joined our podcast host TG Branfalt to talk about the New York hemp and cannabis markets, how CBD’s influence has benefited countless military veterans (including Jason, himself), and more. The interview covers the public perception of hemp and cannabis and what the Veterans Hemp Market does — and what other industry operators can do — to help educate the masses and break the ongoing stigma around cannabis use.

Tune in to the interview below, or scroll further down to check out 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 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 Jason Ambrosino. He’s a former army officer. He’s the owner of Cohoes, New York-based Veterans Hemp Market. Cohoes is notably a former manufacturing town outside of Albany. He’s a vocal cannabis advocate who this year launched his company hoping to provide CBD for the everyday hero. I’ve been fortunate enough to have some of his pre-rolls that I’ve found at a local market up here in the Adirondacks. So, I’m looking forward to this. How are you doing this morning, Jason?

Jason Ambrosino: Good, Tim. Thanks for having me.

TG Branfalt: I’m super stoked. It’s not really every day that I actually get to talk to somebody whose product I’ve actually used because I don’t live in a legal state and I talk to a lot of THC entrepreneurs. But this is about you, man. Tell me about yourself. How’d you end up in the cannabis space? I’m sure it’s a real interesting story judging by your background.

Jason Ambrosino: Well, it really is. I got out of the army, retired out of the army in 2014, medically retired actually. Years prior had gotten blown up and I had a variety of health problems, PTSD, the normal charade of problems that most veterans face. And when the army was done with me, when the army is done with anybody, they kind of say, “Okay, go find a new life.” And that’s pretty much how it feels because that’s your family, that’s … everything you know is tied to that organization.

So, when you’re given seven months and say go figure it out, well can you start figuring things out? And what you find out is, it’s tough when you get out and there’s a lot of stuff you have to deal with and cope with. And jobs get a little bit more difficult because people in the civilian world aren’t necessarily understanding of what veterans go through.

And I said, there’s got to be a better way here. And I started doing a lot of reading and I read this book. I’m trying to remember what the name of it is here. I’ll have to give it to you at the end of the program because it’s not coming to me at minute. But I read this book and it had a lot to do with the use of cannabis, the use of different types of psychedelics for treating these types of problems, PTSD related issues, psychological things that you deal with as a veteran. And in this book I started reading about cannabis and opened my mind to it, of which at the time was kind of back and forth. I didn’t mind people doing what they did, but I certainly didn’t have the knowledge base that I have now. And for years I … for about a year and a half, I just filled my mind up with this information and said, well, you know, it’s time. It’s time to try this and see how it helps me.

And I didn’t know where to turn. I’m in the same state as you. It’s not a legal state. And honestly, the medical program in New York state is … it needs work. It needs a lot of work. So, I did what anybody did … would do. I went out and found someone and I got product for myself and I started medicating. And the results were immediate. I said, this is … I feel better. I’m getting … the more and more I use it, the more I’m dialing in … the more I’m dialing in my dosage. And Oh, by the way, now I’m starting to notice that sensory stress is going down since the anxiety’s going down. Oh, well the pain is starting to go down as well.

And it all just kind of clicked at the same time. Like, whoa, we’re missing the picture here. So, I was already a cannabis supporter. And then I was … had issues with regards to always having to be in that stoned state. And anyone who depends on cannabis for medical reasons, they understand what I’m talking about. And it’s a constant battle of building a tolerance up so that you can increase the amount of THC enough to get to the pain threshold that you’re trying to deal with. And it’s a constant battle.

And I started looking into this side of it and said, well, what was actually going on with these components or these cannabinoids that are inside this product? And how is that affecting me inside my body? And it was just at the time where we were really starting to dig into the CB1, the CB2, and now just recently they believe there’s a CB3 receptor. And it just made sense to me that well, CBD should accomplish all these other things and all I got to do is treat it exactly like cannabis so that I’m getting the full range effect of the cannabinoid profiles, your entourage affects, your terpene profiles, which is … our slogan is, we’re about the flower.

And over the next couple of years I started researching the CBD space and then everything just kind of came to a head in 2018 with the farm bill. And I was already treating myself. I had already had pretty much all the contacts I needed to have and I saw where the market was going. And we knew in 2014, with some of these other companies like Hemp Works that were popping up and they just weren’t doing the right thing. They were in it to make money and take advantage of the situation. They weren’t there to help people and provide them with good medicine. Because the idea that hemp and cannabis and marijuana, it’s all the same thing, it’s just the difference of something being sour or sweet. It’s a profile inside that plant but it’s the same plant. That was like earth shattering to a lot of the people we spoke to.

And that’s how we get to 2018 and saying we need to expand this because it’s helping me, it’s helping my friends and more veterans need access to this. And if they don’t have to get bogged down by the worry of being constantly stoned and they can engage in this and it can help them, then there’s … not only is there a huge market here, there’s a huge amount of people that need to be helped.

TG Branfalt: So, how do you go from, an officer in the army … I mean, that’s just a massive undertaking and I mean, anyone that I’ve spoken to about it, they talk about how impressive the person has to be to get to that point. How does that experience drive your mission and what skills translate from that role to the cannabis space?

Jason Ambrosino: It’s always difficult to figure out what skills transfer to any space out of the military because it’s such a niche thing that we do. But I would say … let me answer this by saying how that has helped me. Because being in the military, particularly being an officer and having a successful career when I was in the military, has helped me gain clout, I should say, with a lot of people that would otherwise dismiss the idea of cannabis as something that we should have in our everyday lives.

And I hope I don’t confuse your listening audience too much because I’ll refer a lot of times to cannabis rather than just CBD because at the end of the day it’s the same plant. And I would say that the willingness to drive on regardless of anything else that’s going on around, you’ve got to kind of drown out the noise and keep pushing forward. But the respect that I had received when I was in the military and I received as a veteran, and because I was an officer has just allowed a lot of people who would otherwise have dismissed this to come in and say, “Hey, maybe there’s more something to this. Maybe I should sit down and listen. Maybe I can open my heart and my mind and learn something that I didn’t know.” And that’s what we’ve seen lately, in the past six months.

It’s been overwhelming to see, you know, the Baptist minister coming up to the table at one of these events we do and saying, “Well, you know what? I want to just forget everything that I’ve ever been taught. Because for 70 years I was taught that this is wrong and bad. And I want to hear what you have to say because clearly you guys are doing something right where …” It goes back to the veteran suicides, right? Obviously we’ve got a problem. We’re doing something wrong when 22 veterans are killing themselves every day. So, I think people are finally looking for solutions to that. And the military has given us a mouthpiece or a window or a doorway to to bring this information to these folks.

TG Branfalt: I mean, that’s super interesting. And I’ve spoken to several other veterans who have launched companies, NEVA comes to mind, that have said the same thing. So, it’s interesting to hear you echo sort of that … what I heard from them a few months ago.

And you mentioned the suicides and I mean, we have to sort of partly attribute that at least to federal policy, the VA, you cannot get medical cannabis if you are in the care of the VA. And there’s obviously a prohibition if you are active duty military, you can’t consume cannabis. What do you think of all of the sort of federal policies that have been launched and introduced and kicked back, right? Defeated. Which one do you think might help veterans most as it relates to cannabis, CBD, THC, especially dealing with PTSD?

Jason Ambrosino: It’s a tough question because it’s almost like we’re so far away from a solution with regards to the VA and how they handle veterans with cannabis that it’s hard to even start the conversation. Because federal prohibition essentially precludes them from doing anything with it. Because the minute that they say, okay, well it’s okay for veterans, now, federally, we still have this thing sitting on schedule one. It doesn’t work like that in the federal government. You can’t have it one way and have it the other. It has to be consistent policy across the board.

So, really we got to back up and say, okay, what do veterans need? What’s going to help them? And then the answer is going to be, well, really it’s a self determining thing where you’ve got to take the time to dial in what’s going to work for you. And it’s not necessarily going to work for everyone. And doctors and psychiatrists, they hate to hear that. They hate that. They hate the fact that they can have two patients that have the exact same conditions and they can use cannabis and one succeeds with it and one doesn’t. But one still succeeded with it. So, rather than dismissing it all together we say, okay, well this is an option and if it works it works. Rather than saying, okay, well these are the 47 different psychotherapeutic drugs that we’re going to put you on. And, oh, by the way, you’re going to feel like a zombie for the rest of your life.

There’s a lot of bad information out there with regards to veterans and cannabis. I recently had a gentleman come up to me. He wanted to believe he knew what he was talking about right now in the team, and the reason he couldn’t use cannabis was because he would lose his VA benefits. That’s just simply not true. The VA is not going to strip your VA benefits away from you if you have decided that you’re going to use cannabis. They’re not going to pay for it but they’re not going to strip your VA benefits away from you. If they’ve got you on a whole lot of painkillers, a lot of opiates, yes, you’re going to be under a larger microscope because they want to make sure that one’s not potentiating the other because we know that there’s things that can happen when these things are mixed. So there’s a reason for it. But they’re never going to come up to you and say, “You know what, this is working for you but we’re going to take away all your benefits.” It’s just not the way it works.

That’s where costs comes into it. And you made a comment, well, what’s going to work for you? Is it CBD? THC? What’s it going to be? And I think the answer is always, it depends. We may find that we can get a one-to-one strain, which … one part THC to one part CBD and that’s going to work amazingly well for anxiety but to handle your night pain at night, to handle it so you can sleep through the night, you might need something that’s ten parts THC and one part CBD. All of these kinds of change depending on what we need.

So whatever the solution is and wherever we go with it … And this is nationwide, state by state, the CBD market and the THC market, and they need to grow together. They need to be dealt with policy together at the same time. And we also have to go back and we have to wipe our minds of the way that we’ve been taught to think about medicine because, yeah, this is a medicine, but at the same time it’s also a plant. It’s an herb, and we have to go back and we have to look at, we’ve got all these other herbs that are in existence and we know they have far-reaching effects, and they’re not treated like cannabis because they’re not mainstream. I mean, that’s the only reason. It’s simply doesn’t make much sense. I don’t think it makes much sense to anyone.

But you have all of these little craft markets, all these little craft niche industries, that are popping up. Then you’ve got big states, like New York, for example, that wants to hold everything consolidated and essentially … don’t want you to grow your own. They don’t want you to do any of that. Well that’s the old pharmaceutical industry mind, because the idea is: well, if we have all of our plants that are grown all the same way, they’re all the same strain, then we know exactly what the product is that we’re going to get going in from the beginning and out to the end. But we know that cannabinoids don’t work that way, and that variety is basically the spice of life because a Trainwreck strain that’s working for you one day might not work for you three weeks down the road. You might have to switch to a Pineapple Express.

And those varieties have to be out there and they have to be available to you. And you have to know that at a certain point in time you’re going to have to bring in some different variety in order to help you. The craft marketing attributes to that. They quality’s there, everything’s there. But unfortunately in places like New York, we’re kind of dismissing that. And it’s important to, again, talk about it in, “Hey, here’s CBD, here’s THC. At the end of the day, they’re grown the same way, which means that they’re going to have that same characteristic with regards to building tolerance, and things like that.”

And I have people come to me all the time and they say, “This tincture oil, this CBD tincture oil right here, this is the one that I had. It started working, then it just stopped working.” And they get the idea that, well, it worked for me and then it stopped; it must be in my head. No, that’s not necessarily what happened. What probably happened is that your body got used to those cannabinoid profiles, and you needed to take a tolerance break, or you needed to go to a different company and get their oil because their biomass is made from hemp that was harvested in Vermont and the one that you’re using is hemp that was harvested in Kentucky. Obviously, if it’s a full spectrum, they’re not going to have the same cannabinoid profile or the same terpene profile. It’s like we’re forgetting all these things.

And I’m getting a little bit off topic, but I think it’s all related because it’s almost like too much regulation could cause more harm than good, which means that ending prohibition could possibly cause more harm than good when we’re talking about people having access to their medicine.

TG Branfalt: It’s very sort of upstate New York philosophy, though, that more regulation might not be good for the industry. And I want to talk to you about New York’s hemp industry. We’ve had the pilot program for a couple of years now. I think it’s a thing that’s going on four or five years. And with the passage of the farm bill, obviously it sort of blew up. Two years ago, you could not find any hemp flower in New York state. Impossible. Now you can buy hemp-derived product literally at a mall. I’ve had products … Your products, I’ve had … my friend owns a CBD dispensary. I’ve had his products. I’ve lived in Vermont and I noticed a great disparity between the CBD products that I had in Vermont and New York.

I mean, most of the ones I had sort of over the counter in New York weren’t very good, right? And then compared to the stuff I would get that was grown in Vermont, even in New York. So sort of tell me about the state of New York’s hemp industry. Why do you think that they’ve sort of lagged behind on the overall quality of the products that enter the space? And tell me a bit about your products. I’ve had, like I said, one of your pre-rolls, it was a diesel. It was great, to be honest with you. I smoked some and I felt a little sleepy, which is what I like CBD for. It always calms me down pretty good. So it was a good experience for me. But tell me about the New York industry, what you’re experiencing and why we are seeing those disparities from, say, New York to Vermont.

Jason Ambrosino: In New York state, everything is about money, and-

TG Branfalt: Ain’t that the damn truth.

Jason Ambrosino: In New York state, everything is about money and it revolves around politics. And a lot’s changed since 2014. The entire program has gotten rewritten since 2008, since the farm bill came out, or at least they’re attempting to rewrite it. But what New York did was just kind of what we already mentioned: they limited the number of permits that were out there and they basically gave them to friends and allies and buddies and campaign donators. And they said, “Okay, well here’s your permit for CBD hemp.”

Now a lot of these people they gave permits to, they don’t know anything about it. They didn’t know how to grow with, they didn’t know what it was used for. Heck, most of them probably didn’t even know what equipment they were going to need to grow it, but they took the permits. And what we saw with one of them, which was a permit that was given to the Falone brothers, who had made a a nice fat $40,000 campaign donation. Oh, and on top of that they got a $200,000-plus grant for building a facility through a grant program that was never supposed to award more than $100,000 per entry.

TG Branfalt: No shit.

Jason Ambrosino: So they get this grant, they buy this land just south of Binghamton, right on the Pennsylvania border, and they say, “Okay, we’re going to build the largest processing facility in the country,” because that’s what every single processor says. Every processor will tell you that they’re the largest vertically integrated processor. It’s kind of a joke in the industry. So they put all this public information out, they never even break the ground. Their shovels never break the ground, and they sell off the license. They sell off the land … And actually two licenses, processing and growing; and they sell off their entire business model to Canopy Growth.

And that is pretty much where New York wants its CBD industry to go, if you talk to the regulators. They want one big company to come in here who basically can control the products. They don’t want any smokable product in the state. That’s why you didn’t see the development of flower. That’s why right from the get-go when we went to … I consult at a number of farms, and I will go to these farms and I would tell them, “I don’t know what you’re doing. This is not how you grow this, because basically all you’re doing is harvesting it and turning it in … taking that, what we call biomass, when it’s all harvested and chopped up, washing it with ethanol and selling off the oil, or the crude, or what have you.”

And that’s what I used to tell these guys was, “Look, the money is in the flower, because people want what they’re familiar with and the benefits of smoking or vaporizing, they’re undeniable.”

But New York doubled down, and I’m sure you heard the decriminalization bill that went through, which you know … but what they didn’t see was the little bit of language that they decided to throw in at the end of that with regards to the CBD industry. And it kind of goes like this … And mind you, this is a law now that’s supposed to take effect in 90 days. So what I’m about to tell you, I would highly recommend your listeners, they contact their elected officials, because this is pretty much outrageous and it puts companies like me pretty much out of business in 90 days.

So New York passed the law that said if you grow hemp in New York state, you have to be licensed. We know that. Now if you want to grow CBD hemp in New York state, you can only sell your CBD hemp to a New York state processor. And if you’re a New York state processor, you can only sell it to a New York state formulator or manufacturer, which is what we do, we formulate and manufacture. And that did not exist. There is no license for that. It doesn’t exist, the framework was never there. We never needed a license for it. So they said, “You can only sell that processed hemp to a New York state licensed manufacturer or formulator, and then that manufacturer or formulator can only sell it to a store that’s licensed, like a liquor license, to sell CBD and hemp products.” And it also outlaws smokable hemp. It also … vape cartridges, edibles. It’s all gone.

In 90 days, technically, based on how the law is written right now, those products will no longer be able to be sold in New York state stores. And to take it one step further, if you order offline as a consumer and you buy CBD products from out of state, you’re breaking the law, and the company that sells it to you and sends it to you is technically breaking the law because the 2018 farm bill basically made it an agricultural product, but it was still secondary to whatever those state’s laws were.

Now there’s not a lot of people out there that even know that this is happening, and that’s why a lot of those folks like me are getting pushed over to Vermont because we’re not here to make a mass quantity product for everyone. We’re not here to sell you a bottle of tincture that’s 300 milligrams of CBD and isn’t going to do a dang thing for you. That’s not what we’re here for. We’re here to help people. If we want to help people, we’ve got to do things a certain way. New York state wants to just commercialize it and market it because, I don’t know, it must be they think that there’s a recreational market for it, but there’s not. People that are buying it, need it. And that’s the worst part about it. We are making it more difficult for the consumers … get medicines that they need simply because, well, we do things a little backwards in this state, I guess.

TG Branfalt: So I mean, backwards sounds like exactly it. So if what I’m hearing and telling it correctly is that they would need to pass some sort of regulations in order to license people to sell CBD and manufacture this in 90 days, which anyone who lives in New York knows abso-fucking-lutely nothing happens in 90 days.

Jason Ambrosino: Yeah. [ They don’t need to pass anything. They’ve already passed the law.

TG Branfalt: Well I mean, they’d have to issue regulations, right, like the Department of Ag, or-

Jason Ambrosino: All of that regulatory guidance, it doesn’t need to be passed. It’s something that can be added after. But what their intentions are, and this is coming from Albany, coming from the contacts I have in there, their intentions are to roll the CBD industry into the recreational marijuana bill. And that’s why they did not include regulatory language because all the regulations of the CBD market are going to be conducted by the marijuana regulators.

TG Branfalt: So potentially, if they were to pass legislation next year recreational, which everybody expects to happen, they would include CBD in that legislation in order to regulate it and get rid of the gray market now with that decriminalization, that amendment probably added the decriminalization bill?

Jason Ambrosino: Right, and they recognize that, and this is why they want to create a state-run monopoly because they recognize that the gray market has got a better quality. The gray market is cheaper. The gray market’s coming from people that other people trust. Now granted, there is a big market out there, gray market, that is manipulating and taking advantage of people. I would argue that the fee structures that they’ve created and for violations of those laws, which is $1,000 for the first offense, $5,000 for the second offense … I can’t remember what the third offense is, but for six grand, I can get slapped twice.

Now if I’m a gray market company and the only thing I care about is making money and making it as fast as I can, I’m just going to continuously change the name of my product. I would put crappy product out there and I’m going to make as much money as possible until I get slapped with a $1,000 fine. What’s $1,000 if you’ve made $100,000? So they want to stop the gray market, but at the same time, the structure that they put in place, the mechanisms to do so, really aren’t robust enough to do that. All it’s going to do is affect companies like us, where a $1,000 or a $5,000 fine is going to be enough to make us stop.

We’re not.  What we’re going to do is we’re just going to move out of the state, which is going to hurt. It’s going to hurt people in the state because they’re no longer going to be able to get those products. So going back to the smokeable, there’s a question of whether or not smokeable is even going to be legal in New York State, in the rec market. Nevermind the CBD market. So it all ties together. The governor is huge on not allowing smokeables in the state. He’s dead set against it. But that’s because that’s somebody who doesn’t necessarily understand the plant, or why the different methods of intake are important for the patient.

TG Branfalt: Well, and he was anti-tobacco, I mean-

Jason Ambrosino: He’s whatever the public wants him to be at the time.

TG Branfalt: So fucking true. So, moving away from state policy a little bit, we don’t have a ton of time, and I want to discuss this issue with you briefly. I know that you’re talking about, might having to move your company to Vermont. A buddy of mine, as I said, open up a CBD dispensary right near you in Schenectady. And they had a ribbon cutting ceremony for his business. He’d been at several chamber events. Have Cohoes’s official, local officials in the community, how has your company been received by them?

Jason Ambrosino: We operate kind of under the radar. We don’t have a big sign on the door. Kind of the shows and the festivals and the things that we do, and how we engage the public in response or public events, that’s how we ended up getting received. Cohoes has been great. We haven’t really had too many experiences. Clifton Park was awful. We were supposed to open the store in Clifton Park, and Stephen Barrow I think is his name. He’s the supervisor. He was a belligerent… It was ridiculous, enough to where Kirsten Gillibrand’s office got involved. But you don’t want to go where you’re not wanted. So we ended up going to Cohoes.

But let me talk about how we’re received by the places that we’re going. We’re going to Cracked Bears. We’re going to New York State sanctioned events. We’re going to regular fairs. These are family events. And these people couldn’t be happier to have us there because, when we go to these places, we go there with the intent of selling enough product to cover our sponsorship costs. We go there with the intent of educating. And there’s this huge lack of education and knowledge right now in the general public. Because going back to the very first things we talked about, is that for 70 years they were told that they can do things a certain way. And now they’re coming to the realization, we were wrong. And you would not believe how many elderly folks, between the ages of 60, 70, and 80. They come by the booth. They’re so happy to finally have an opportunity for someone to tell them, the reality of what they’re taking. There’s so much confusion when they go to the store.

They know their buddy. He got some CBD and it seems to be helping him. So he wants to try it out, but we’re too scared. So these places really have been supportive of us, just because of the education that we’re giving alone. We are really excited to get invited to the Blues Festival, which is a New York State sanctioned event. I have to thank Syracuse and the police department in Syracuse because the very first thing we did when we got there was we handed out 150 CBD joints. Which for anybody who smokes them knows that they smell, they look just like marijuana. But part of what we do when we go to these things is we put flower out on the table. We will sit there and we’ll fan the smell all over the place. To desensitize people to the smell and the sight.

And that’s kind of what we were doing with the 150 joints. We were trying to get people to relax a little bit, so that they weren’t so concerned about having something that looked like something that was illegal in their hands. And I can say that not once, not a single time, over three days, did the police bother us, or bother any one of our customers. We’re a sponsor of the event, so I’m sure they knew what was going on. But a lot of times, we don’t think in terms of how law enforcement is viewing all of this. And they’re put in a really difficult situation because, no matter what you think of law enforcement, they’re just doing their job. They’re just doing what we hired them to do. And what we wrote down on paper and told them was the law. Regardless of the fact if it’s a bad law or not.

So hemp most certainly makes their jobs more difficult. But just because something makes somebody’s job more difficult, doesn’t mean that you ban it or you go after it. You figure out ways that it doesn’t make their job more difficult. And luckily that’s kind of the direction it seems we’re going. Syracuse most certainly seems to be going in that direction. Yeah local communities have been great. And I think…

TG Branfalt: I met you guys at the Saranac Lake Street Festival. And as I said, I bought some flower, pre-rolls. And I mean it’s got to be a really interesting experience to be in rural upstate New York like that, because you have both people who are very conservative and don’t understand and don’t want to understand. But also you have the libertarian minded. You’ve got a lot of local sheriffs out here, very libertarian minded. So tell me about doing that in upstate, in a rural community.

Jason Ambrosino: I think rural communities are the best places for it. And it’s because at least when… My wife does a very good job as well because she listens to me talk all the time. But I’ve written a few papers about the dairy industry, and one of them was called Death oo the Dairy Farmer. When I go to these rural communities, it’s like being home because I know what they’ve gone through. I know that they’ve gone through dilapidated infrastructure coming from the leather and the paper mills. I know that they’ve had their dairy farms ripped out from under them because of the milk co-ops that were supposed to help them. So when I am able to engage these folks, I target that audience and I start talking to them about the opportunities of hemp. The opportunities for the farmers, the opportunities for the business owners in the area. And what I’ve found more than anything is people have never been… They’ve never had a problem with marijuana. They’ve never had a problem with cannabis. They’ve had a problem with breaking the law.

And it almost seems like it’s been universally accepted now that cannabis is an okay thing, but for whatever reason, our laws haven’t caught up for them. And there’s some people who just don’t want to break the law. They don’t want to do anything wrong that’s going to get them in trouble. And it’s valid for them to understand that. But, they see it everywhere now. So you either going to accept it, or you’re going to have to avoid it. And we’re finding that more and more are accepting. They want to come up, they want to ask questions, and they want to learn. And that’s a positive force.

TG Branfalt: So what about the local farmers that you’ve spoken to about cultivating hemp? What’s the most common question you get? Tell me about those interactions.

Jason Ambrosino: Generally it starts with a few off color jokes about some kid in their high school years planting marijuana in the middle of their corn fields. But when we were seriously getting into the conversation, and I start talking dollars to them. And I’d say, okay, well if you grew this CBD hemp, and you grew it the way that I tell you to grow it. You’re talking $67,000 per acre. And we didn’t even get into talking about fiber, and we didn’t talk about seed. If you grow fiber, that’s 12 to $15,000 an acre. If you want to grow seed, that’s 15 to $18,000 an acre. All of those numbers are vastly more than they’re making, doing whatever they’re doing now. I can’t remember what soy is, but it’s way less than that.

And these guys are businessmen. These farmers are businessmen. And if they can do something that doesn’t go against their morals, and doesn’t go against their ethics, and it’s not illegal, they’re on board. But we can’t protect the farmers right now, because what’s happening is we’re having these big companies come in, like Canopy. And Canopy is going around the state, and they’re going to farmers and they’re telling these farmers, look. I’m going to lease X amount of acres. I’m going to pay for the seed, everything else to come in. And they’re tying up all this New York State farm land. And these farmers are getting the short end of the stick, because at the end of the day, Canopy’s making the final decision of what that harvest is worth. And that’s why this New York State monopoly is so, so dangerous because if they’re focused on just a couple processing facilities, and Canopy happens to have this gigantic processing facility. And they’re the ones that are going to handle all the hemp coming in from the state. Guess who’s going to set the price and what they’re paying for that?

So now a New York State farmer could possibly go down to Pennsylvania or Massachusetts, and they could get $3 and 50 cents per pound, per percent of CBD on their biomass. Whereas they’re stuck in New York State only selling to Canopy, who says, we’re only going to pay you $2 and 50 cents. And it’s the exact same thing that happened with our milk co-ops. So when I’m talking to farmers, that’s what we’re talking about. Staying independent. Avoiding these contracts, which look good on paper. But at the end of the day, you end up cutting your own throat, because six years down the road, these guys are setting your prices. And now all of a sudden you’re growing products for, you’re selling it to them for less than it cost you to grow. It’s literally milk all over again. So we have to be very, very vigilant and watch that.

TG Branfalt: So, you’re in a very interesting position. You’re a veteran. People listen when you speak. And you’re very well spoken. Your product does speak for itself. It is very good. And I’m not a guy who really like those glowing reviews ever on this thing, but I was very happy. The price was great. You have a very unique sort of outlook on this industry just given your history. What advice would you have for entrepreneurs who might be looking to enter the hemp and CBD space?

Jason Ambrosino: Call me. Honestly, I consult. Consulting is one of the things that I do. I own another company called American Veteran Enterprise Team. And no, it’s a company that’s growing 2700% in just the past three years. So I like to build companies, and I like to build companies that grow fast. And I like to help people be successful in the businesses that they grow. So when I say call me, I’m not even kidding. You need someone to help guide you in this industry, because you will get taken advantage of. You will. The bad players are out there. If you don’t know who the bad players are, then you’re being taken advantage of. So find someone who knows what they’re talking about. Be very, very careful. Be conservative, and don’t take no for an answer. I think those are probably the best three pieces of advice I can give someone.

TG Branfalt: I like the cut of your jib man. Where can people, tell them to get in touch with you. How do people get in touch with you? Where can they find out more about your various enterprises?

Jason Ambrosino: Sure, they can check us out at www.veteranshempmarket.com. It’s www.veteranshempmarket.com. And we’re also on Facebook. We’re also on Instagram. Veterans hemp market will pull us up. And of course you can always just go back to www.veteranshempmarket.com and find all the information right there. We’ve got a fantastic wholesale program. Our wholesale program, you put $500 worth of stuff in your cart, set up for the wholesale program, you’re going to get a promo code sent to you, and you’re getting a 50% off your order. $250 worth of stuff for $500. So let us know what you think.

TG Branfalt: He’s Jason Ambrosino. He’s the owner of Veterans Hemp Market. He’s a former Army officer. I can’t thank you enough for coming on the show. And I can’t wait to see you at more upstate New York fairs, man.

Jason Ambrosino: Great. Thanks for having us.

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 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.

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Nevada’s First Cannabis Tasting Room Opening on Tribal Land

Nevada’s first cannabis tasting lounge is opening Saturday on sovereign Paiute Tribal land, according to a 3 News report. Cannabis company NuWu did not require permission from the state as the land is subject to tribal authority. 

Alfreda Mitre, a Paiute Tribe Councilwoman, said the lounge will mirror a craft brewery, but with cannabis flights. Patrons will be allowed to smoke, vape, and consume edibles.

“There is a time limit that will be in place. We do have bud tenders to do that that expertise and will be able to gently nudge the customer when they think their needs will be met.” — Mitre, to 3 News

She added that NuWu would be working with ride-heralding and taxi companies to ensure that people are not driving under the influence. 

Last year, Gov. Steve Sisolak (D) signed a measure that imposed a two-year hold on cannabis lounges in the state so the Cannabis Control Board could conduct a study on the potential social and health impacts of social cannabis use.

“The cannabis control board… will strictly regulate the cannabis industry to protect public health and safety, as well as create a stable, predictable business environment to promote economic growth,” Sisolak’s office said in a statement to 3 News.

Only Alaska permits state-wide social cannabis use, while social consumption was approved by Denver, Colorado voters in 2018 and regulators approved permanent rules in February. In California, localities can approve social cannabis use; the state’s first cannabis cafe and restaurant opened on October 1 in West Hollywood. 

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75% of Canadians Say Legalization Had No Impact on Workplace Safety

According to an ADP Canada study, three out of four Canadians believe cannabis legalization has not had an impact on health and safety incidents at the workplace. A strong majority of respondents said that legalization has also had no impact on productivity (74 percent), absenteeism (71 percent) or work quality (70 percent).    

A survey in 2018 found 46 percent of Canadians expected legalization would lead to a drop in productivity, while 43 percent said it would lead to a decline in work quality, 40 percent expected an increase in absenteeism, and 55 percent believed it would lead to a spike in health and safety incidents.  

Hendrik Steenkamp, director for HR Advisory, ADP Canada, said after “a lot of uncertainty” prior to legalization the reforms have “not had a noticeable impact on the workplace or on workplace performance.”

“Although only a fraction of Canadian workplaces allow cannabis during the workday, it’s important for every organization to develop proper workplace guidelines and policies, as well as provide training to identify and manage impairment.” — Steenkamp, in a statement  

In all, 86 percent of respondents indicated that their employer doesn’t permit cannabis use before, during, or after work — 8 percent said cannabis use was allowed during the workday. In the 2018 survey, just 6 percent of respondents thought they would be allowed to use cannabis at work.  

Of those 8 percent whose employer allows cannabis use, 67 percent are using it before work, 47 percent are using it during work, and 72 percent are consuming it after work. Among the working Canadian public, just 4 percent are using it during work, with 5 percent using it before work and 6 percent after work.

Fifty-five percent of those surveyed said that they did not believe their workplace policies would change following the impending legalization of edibles and other “alternative” cannabis products, such as concentrates and topicals. 

The survey also found a 22 percent increase among respondents who said legalization has led them to have a more positive perception of cannabis. 

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CartHook Announces Square Partnership, Enabling Shopify for CBD Brands

The checkout optimization platform becomes the bridge between Shopify and Square

Portland, Ore. (October 4, 2019)CartHook, the leading checkout optimization platform for ecommerce merchants on Shopify, announced a partnership with payment processor Square, which makes it possible for CBD merchants to sell their products online with confidence and peace of mind.

CartHook helps ecommerce merchants optimize their checkout journey with a customizable one-page checkout to boost conversion rate and post-purchase upsells to maximize average order value.

Square helps millions of sellers run their business, from secure card processing to point of sale solutions. Yesterday, the company announced it would support payment processing for CBD merchants for the first time.

“CartHook is proud to be the bridge between Square, which is now a leading payment processor for CBD merchants, and Shopify, the world’s best ecommerce platform. As a result, our partnership with Square makes selling CBD online an easy, secure process. We’re proud to bring relief and peace of mind to thousands of online merchants, who’ve lived in fear of not being able to securely sell their products online and process payments from their customers,” said Jordan Gal, founder and CEO of CartHook.

“Square believes partners like CartHook are important to building innovative commerce solutions for sellers,” said Pankaj Bengani, Square Global Partnerships Lead. We are excited for CartHook to provide CBD sellers with an ecommerce solution powered by Square payments.”

To get started with CartHook, please visit CartHook.com/CBD, where you can apply to work with us.

About CartHook
CartHook helps Shopify ecommerce merchants optimize their checkout journey with a customizable one-page checkout to boost conversion rate and post-purchase upsells to maximize average order value. Merchants process over $500 million annually through CartHook using the world’s leading payment providers, and they can integrate with apps for subscriptions, tracking, email marketing, abandoned cart recovery, and more. To learn more, visit CartHook.com.

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Nebraska Sherriff’s Office Finds Method of Differentiating Hemp from Cannabis

The Douglas County Sheriff’s Office in Nebraska has reportedly developed a test to differentiate hemp from THC-rich cannabis. The sheriff’s office said the test can determine whether “plant material is marijuana if it contains more than approximately 1 [percent] THC.” 

According to a release, the procedure is based on a method developed by the federal Drug Enforcement Agency and was validated by the sheriff’s laboratory. The method was “developed in accordance with ANSI National Accreditation Board (ANAB) Forensic Accreditation requirements and falls under the lab’s current scope of accreditation,” the agency said. The lab conducts drug analysis for more than 20 local, state, and federal law enforcement agencies. 

While some law enforcement agencies in Nebraska indicated they would cease low-level cannabis prosecutions following the legalization of hemp because they were unable to tell the difference between the two, Douglas County Attorney Don Kleine said in August that he would continue trying the cases using the previous state law that only allowed University of Nebraska-Lincoln researchers to possess hemp.  

Other law enforcement agencies throughout the U.S. where cannabis remains outlawed have indicated they would stop making arrests for low-level possession due to hemp legalization, with some saying they do not have access to labs that can test the THC content of a product.

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Hemp & Farming Advocates Call on EPA to Approve Hemp Pesticides

The National Industrial Hemp Council and American Farm Bureau Federation is asking the Environmental Protection Agency to approve 10 submitted pesticide applications for hemp production. In comments to the agency – which is considering which pesticides will be approved for use on hemp – the groups said they also “fully support EPA’s stated position that public notification is unnecessary for ‘future pesticide registration applications that are similar to these applications and that are expected to be submitted with more regularity.’”

“It is our hope that EPA can similarly approve additional applications that hopefully will be presented to expand the range of approved pesticides and provide our members with lawful options for pest control.” – NIHC, AFBF, public comments to EPA, Sept. 23, 2019

The environmental agency has received applications from companies seeking approval to use their pesticide products on hemp from:

  • Argo Logistic Systems (four products)
  • Marrone Bio Innovations (two products)
  • Hawthorne Hydroponics (four products)

The EPA indicated that the agency had called for comments as hemp applications “may be of significant interest to the public.” The agency did not have to seek public comments since the products being considered are already legal for use on outdoor crops and “contain active ingredients for which EPA previously determined the residues will be safe under any reasonably foreseeable circumstances.”

In their comments, the hemp and farm groups called EPA’s approach to the issue “encouraging.”

“The NIHC therefore encourages EPA to approve all ten applications to add hemp uses to the label promptly,” the groups said in their remarks. “It is essential to the industry that key crop protection tools for hemp production are in place for the 2020 growing season and beyond.”

The groups said they expect the industry to experience “billion-dollar growth … over the next few years” which would “lead to a demand for effective pesticides.”

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Many pounds of cured and trimmed cannabis bagged up inside of a large plastic bin.

10th Circuit Agrees: FLSA Applies to Cannabis Workers

The 10th Circuit Court of Appeals has upheld a lower court’s decision, saying employers in the Colorado cannabis industry must adhere to the Fair Labor Standards Act (FLSA), despite cannabis’ federally prohibited status under the Controlled Substances Act (CSA).

The case involved Robert Kenney — a former security guard for Helix Inc, a cannabis security company — who claimed Helix refused to pay him, and other guards,  overtime. Helix sought to dismiss the case, claiming the FLSA did not cover cannabis due to its illegality. The court disagreed on the grounds not complying with the FLSA would give the cannabis industry an unfair advantage over other employers, thereby encouraging employers to ignore regulations to compete. They also noted courts have long held the view that illegal activities such as gambling or employing undocumented immigrants are still covered under the FLSA.

Senior Judge Stephanie Seymour wrote, “The district court correctly reasoned and case law has repeatedly confirmed that employers are not excused from complying with federal laws just because their business practices are federally prohibited.” 

Additionally, the court pointed out the FLSA has been amended since the CSA was passed to exclude various labor practices, but working in the cannabis industry has not been one of them. 

“Congress has actually amended the FLSA many times since the enactment of the CSA without excluding employees working in the marijuana industry, despite specifically exempting other categories of workers.” — Excerpt from the 10th Circuit Court brief

The ruling covers other labor standards like minimum wage and is applicable nationwide. 

 

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