Amazon Pulls Products Used for Counterfeit Vape Carts

Online retailer Amazon has pulled products that could be used to make counterfeit cannabis products, including packaging connected to products used by people in New York who fell ill with a vape-linked pulmonary disease, according to an MPR News report.

Packaging for Chronic Carts and Dank Vape has been removed from the Amazon website – vape cartridges sold illegally in New York were purchased in those companies’ packaging and contained Vitamin E acetate, which the state Health Department linked to cases of the illness. Amazon also pulled counterfeit packages for Exotic Carts and “Cali Plug Carts,” along with fake “California Compliant” stickers.

The company did not remove empty cartridges.

“We require all sellers to follow our selling guidelines and have dedicated teams that use sophisticated tools, including machine learning, to keep prohibited products out of our store. We take action on those who violate our policies, including removal of selling privileges and withholding of funds.” – Amazon, in a statement to MPR News.

So far, six people have died from the vape-linked disease and those who have fallen ill have used both cannabis- and nicotine-filled cartridges. Last week, the Centers for Disease Control and Prevention said that 60 percent of the patients affected by the illness used both THC and nicotine vape devices, while 20 percent only used nicotine. Officials were not ready to definitively link the illness to cannabis cartridges.

The CDC – and Leafly – is recommending people stop using vaping devices entirely until the cause can be determined.

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New Study Shows Crime Reduction Near Colorado Dispensaries

A new study published in The Journal of Regional Science and Urban Economics shows a substantial reduction in crime rates near cannabis dispensaries in Colorado. The study uses data collected in Denver, Colorado between 2013 and 2016 and the results mirror those of other, similar studies that have been conducted in the past.

“The results imply that an additional dispensary in a neighborhood leads to a reduction of 17 crimes per month per 10,000 residents, which corresponds to roughly a 19 percent decline relative to the average crime rate over the sample period.” — Excerpt from the study’s abstract

The researchers point out the reduction in crime is highly localized and goes counter to the overall crime rate in Denver, which increased by 1.7% between 2013 and 2014. They found the majority of the decrease in crime was for mostly nonviolent offenses, with a 2.3% decrease in drug offense per ten thousand residents.  

“Our results are consistent with theories that predict that marijuana legalization will displace illicit criminal organizations and decrease crime through changes in security behaviors or substitution toward more harmful substances,” the study authors wrote.

Over the years since adult-use cannabis was first legalized in Colorado and then Washington, multiple studies have suggested that legalization — and the subsequent proliferation of legal cannabis shops — does not cause an overall uptick in crime rates, which is a prohibitionist claim often made by those who oppose legalization.

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Springfield, Massachusetts City Council to Investigate Cannabis Company’s Donation

The Springfield, Massachusetts City Council are investigating why a cannabis business is planning to spend $200,000 over a five-year period on a school environmental program and park in the city, hoping to determine whether the company made a deal with the mayor’s office in exchange for an operator’s license, according to a WGBH report.

The inquiry comes less than two weeks after Fall River Mayor Jasiel Correia was arrested for attempting to extort at least four cannabusinesses for $250,000 each in exchange for “non-opposition letters” to operate in the city. Correia is alleged to have generated about $600,000 in the scheme.

Springfield City Council President Justin Hurst said the council was doing its “due diligence” to make sure the local government is “transparent.”

“Springfield residents want to believe their government is doing the right thing, and that the government is not doing the wrong thing just to get a few extra dollars.” – Hurst, to WGBH

Mark Zatyrka, CEO for the cannabis company, I.N.S.A, told WGBH that the donations were “strictly voluntary” and the company is “happy to provide as much back to the community” as they can.

Melinda Phelps, an attorney for I.N.S.A., said three of the four owners of the company participated in the Environmental Center for Our Schools program – to which the company plans to give $20,000 per year for five years. The company promised another $20,000 per year over five years to renovate the city’s Forest Park, which is adjacent to the site of the company’s proposed dispensary. I.N.S.A. already operates a dispensary in the city and none of the other three companies seeking a host agreement are offering any similar donations.

Hurst said that some citizens “might feel as though [the] money could be better spent.”

In their agreement with Easthampton, I.N.S.A paid the city $10,000 – which exceeds the 3 percent cap – with no justification.

Peter Bernard, executive director of the Massachusetts Growers Advocacy Council, said that the donations sometimes turn big companies against smaller ones in a “bidding war.”

“But it shouldn’t be a bidding war, it’s a licensing process,” he said in the report. “[Municipalities] are not supposed to be looking for the highest bidder.”

The city council will vote this week on whether to approve the agreement or send it back to the committee.

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Plus Products Offers Hemp CBD Edibles Nationwide In Partnership with John Legend, Casper

San Mateo, CA – September 17, 2019 – Plus Products Inc. (CSE: PLUS) (OTCQX: PLPRF) (the “Company” or “PLUS”), the company behind the #1 & #2 best-selling THC edibles in California1, today announced the nationwide launch of its first-ever 100% hemp CBD product line.

John Legend Partnership

The launch is being supported by a newly established brand partnership between PLUS and American superstar and philanthropist John Legend, who will advocate on behalf of the Company’s new nationwide hemp CBD product offering.

“I have been a believer in the benefits of CBD for some time,” stated Legend. “I was drawn to the PLUS team because they’re an innovative, family-run company, and they use science to deliver a consistent, high-quality product. I appreciate that they’re committed to setting a high standard within an industry that has to date been fairly unregulated.”

Casper Partnership

PLUS is also partnering with global sleep company Casper Sleep Inc. (“Casper”) to introduce its melatonin- and CBD-infused SLEEP product. Casper is the award-winning sleep company on a mission to bring better sleep to more people around the world.

“We’re always exploring new ways to improve sleep across the entire sleep arc — from sunset to sunrise,” said Neil Parikh, co-founder and chief strategy officer at Casper. “Like PLUS, we believe sleep is a key part of the wellness equation. Partnering with their team of experts to introduce CBD sleep gummies brings a new way to relax and rest to those who need it.”

Product Offering & New Nationwide E-Commerce Platform

The new CBD line will include three distinct products, developed by PLUS’s team of scientists, entrepreneurs and chefs: BALANCE in Blueberry flavor, UPLIFT in Grapefruit flavor, and SLEEP in Blackberry Tea flavor. All three products are available for purchase through the Company’s newly launched e-commerce platform at www.plusproducts.com.

“We established our reputation in edibles by offering customers a consistent and precisely-dosed gummy using high-quality extracts,” stated Jake Heimark, CEO and co-founder of PLUS. “Our CBD line will build off that expertise, and the earned trust we’ve established, while offering a new experience for consumers designed to help them find their just right.”

“Giving the world a simple way to achieve balance has always been our mission, and the PLUS CBD line allows us to expand from California to nearly all fifty states overnight. We are thrilled that John Legend and Casper have partnered with our team to support this exciting new initiative.”

(1) Over the last twelve months by dollars of retail sales according to BDS Analytics GreenEdgetm Platform.

Availability
PLUS 100% Hemp CBD infused Edibles with no THC are available for purchase at plusproducts.com

About PLUS
PLUS Products is a California-based edibles company focused on using nature to bring balance to consumers’ lives. PLUS is headquartered in San Mateo, CA with 80 employees.

The CSE does not accept responsibility for the adequacy or accuracy of this release.

For further information contact:
Jake Heimark
CEO & Co-founder
ir@plusproducts.com

Investors:
Blake Brennan
Head of Investor Relations
Tel +1 213.282.6987
ir@plusproducts.com

Media:
Bill Harrison
Third Street Media Group
Tel +1 323.651.3200  or 1 213.712.8811
bill@thirdstreetmediagroup.com

Forward-Looking Statements:
This press release includes statements containing certain “forward-looking information” within the meaning of applicable securities law (each, a “forward-looking statement”). Forward-looking statements are frequently characterized by words such as “plan”, “continue”, “expect”, “project”, “intend”, “believe”, “anticipate”, “estimate”, “may”, “will”, “potential”, “proposed” and other similar words, or statements that certain events or conditions “may” or “will” occur.

These forward-looking statements are only predictions. Various assumptions were used in drawing the conclusions or making the projections contained in the forward-looking statements throughout this press release. Forward-looking statements are based on the opinions and estimates of management at the date the statements are made and are subject to a variety of risks and uncertainties and other factors that could cause actual events or results to differ materially from those projected in the forward-looking statements. These risks include, but are not limited to, the success of the Company’s investments, the ability to retain key personnel, the ability to continue investing in infrastructure to support growth, the ability to obtain financing on acceptable terms, the continued quality of the Company’s products, customer experience and retention, the continued development of adult-use sales channels, managements estimation of consumer demand in in jurisdictions where the Company exports, expectations of future results and expenses, the availability of additional capital to complete capital projects and facilities improvements, the ability to expand and maintain distribution capabilities, the impact of competition, the ability of the Company to implement initiatives and the possibility for changes in laws, rules, and regulations in the industry. The Company is under no obligation, and expressly disclaims any intention or obligation, to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise, except as expressly required by applicable law. 

 

 

 

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Hemp & CBD: How Science Is Surpassing The Snake Oil Stereotype

Promising hope of relieving all of life’s ailments, from physical to mental health, consumers are constantly challenged to seek out and understand the latest industry standards. Not to mention the hype and distraction of the latest health and wellness scams.

The truth is, put simply, some formulas fraud the long list of benefits derived from hemp and CBD use, making the safety and efficiency of public CBD and hemp use major topics of today. 

Being behind the scenes of the industry, identifying these fraudulent formulas seems simple. Unfortunately, with the power of PR and marketing pushing consumers to purchase “the best on the market” it’s actually quite easy for prospect users to fall victim to manipulation.

In order to truly legitimize, or discredit CBD and hemp products we have executed significant clinical hemp research. Recent safety, absorption, and diabetes research conducted provided some very interesting results. 

Currently, we are conducting studies surrounding the correlation between how a person’s DNA is expressed and how their body interacts with hemp. We have papers being published on absorption and safety of liposomal CBD. All of which are vital to fully understanding and harnessing the plethora of benefits from CBD and hemp formulas. If any. 

Our research shows how natural products, when properly delivered, are critical to maximizing health. I find it more important now than ever before, to focus on how these formulas work and bring new perspectives, innovative ideas and health concepts to the forefront. 

How to get holistic about hemp and CBD use

One of the most important aspects of nutrition is not necessarily what we eat, but what our bodies actually absorb. When we ingest dietary supplements, high doses of them can be absorbed into the body via the intestinal tract. 

However, significant amounts of the supplements get destroyed by the digestive system before it has a chance to be absorbed. This is why liposomal technology is so important in our studies. 

Why does this matter?

Liposomes are nano-sized bubbles with an external shell comprised of healthy lipids (fats) and a hollow liquid center. Liposomes can be loaded with supplemental substances. Fundamentally, this is the way that your body wants to absorb nutrients.

In recent years, we worked to invent a whole new way of making liposomes as a copy to how they are produced naturally. This next generation technology has developed a way for liposomes, or these fat globules, to wrap around nutrients the same way that this occurs naturally helping the body to recognize nutrients and resulting in better delivery. 

Since the liposome is all-natural and consists of the healthy fats that are good for you, your body uses the entire thing, and nothing goes to waste.

With this in mind, we developed the CELLg8™ technology to combat the issue of reduced bioavailability by using naturally-occurring lipids as a sheath to preserve actives during digestion. This method of delivery is incredibly important in regard to the bioavailability and benefits of CBD and hemp formulas. These statements are backed by human clinical studies of CELLg8.

The verdict:

When deciding to incorporate any lifestyle supplement into your routine, it is recommended to research the background studies supporting that formula to avoid confusions and misconceptions that come with mass-market products.

The CELLg8 technology, for example, has a lot of science behind it. The promise of lifestyle supplements such as CBD and hemp products is finally being fulfilled by liposomes because it has increased the bioavailability of nutrients. 

So instead of taking multiple doses in one sitting, you can take a small amount of liposomal formula with nearly complete absorption, thanks to science.

 

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House Plans SAFE Banking Act Vote by Month’s End

House Majority Leader Steny Hoyer (D-Maryland) is planning to put the SAFE Banking Act up for a full floor vote this month, Politico reports. The bill would allow state-legal cannabis businesses to access financial services.

According to the report, Hoyer shared the plan with his colleagues at a whip meeting on Sunday and, while he has not scheduled a vote, House Democratic aides told Politico that they expect it to hit the floor the week of Sept. 23.

In May, Senate Banking Committee Chairman Sen. Mike Crapo (R-Idaho), indicated he would block the bill from making it to the Senate floor for a vote but told Politico last week that he hoped the Republican-led chamber would hold a vote on the issue before year’s end; however, he left the door open as to which bill would be voted on. Crapo suggested that Senate Republicans could write their own bill to replace the bipartisan measure introduced by Sens. Jeff Merkley (D-Oregon) and Cory Gardner (R-Colorado) or amend the House version, which passed the House Financial Services Committee in March.

“We’re working to try to get a bill ready. I’m looking to see whether we can thread the needle.” – Crapo, to Politico

The American Bankers Association supports the measure and in an update last week called on their members to contact their members of Congress and urge them to pass the measure.

If approved, the SAFE Banking Act would be a huge boon to cannabis companies, who would no longer need to rely heavily on cash. It would also mark the first time that Congress has given approval to a measure protecting state-approved cannabis companies. Previously, protections have been included omnibus packages but not voted on individually.

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Report: Edibles Legalization Could Grow Canadian Market by 65%

Canada’s cannabis market is estimated to grow about 65 percent – or by about 3 million consumers – following the legalization of edibles and “alternative” cannabis products, according to a survey by Lift & Co. and Ernst and Young outlined by the Calgary Herald. The survey suggests there are currently about 4.6 million cannabis users in the nation.

Jon Kamin, Lift & Co. chief revenue officer, said the addition of the new products will be “transformative” for the industry and would add “a significant cohort of consumers who were not consuming due to stigmatization or the consumption delivery.”

Kamin added that since its easier to develop premium brands with edibles and distillates the profit margins for those products are higher than flower. The survey found that current users are most interested in cannabis-infused food additives, confections, and baked goods.

According to a Deloitte study from June, the alternative cannabis market in Canada could be worth $2.7 billion annually, with edibles representing $1.6 billion of that market. In July, Quebec officials announced a ban on sweetened edibles along with a temporary ban on topicals.

“The race to win legalization 2.0 is on,” he told the Herald.

The survey also found that, unsurprisingly, many consumers are still purchasing cannabis in the illicit market as the cost of legal cannabis remains higher than its illegal counterpart and consumers find the products found in retail stores to be of lower quality.

“The ability of the legal market to match illicit prices will be a challenge that may never be achieved. If prices are higher, the value add of quality must match such premiums.” – Lift & Co/Ernst and Young, cannabis legalization report, via the Calgary Herald

In August, Statistics Canada found that 42 percent of cannabis consuming adults still purchased cannabis illegally.

Edibles are expected to be legalized in Canada Oct. 17 but products are not expected to hit shelves until December.

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Imperial College London Studying Entourage Effect of Cannabis

The United Kingdom’s Imperial College London and European medical cannabis company EMMAC are partnering on a study to evaluate the entourage effect of cannabis as a pain reliever, the company announced last week. The study would allow the publication of the results with hopes to support future clinical trials focused on patients with acute or chronic pain.

Under the collaboration, EMMAC will fund a post-doctoral research fellow for a minimum one year period and the researchers will explore the efficacy of EMMAC products for patients with neuropathic pain, nausea, and vomiting.

Imperial College London Professor Praveen Anand said the study’s results “may support the rational design of future clinical trials to enhance pain relief and minimize adverse effects” related to cannabis.

“This is a very exciting area of pain research, which aims to characterize the entourage effect and related mechanisms of cannabis-based medicine combinations at a molecular level.” – Anand, in a statement

EMMAC indicated that the study could be just the beginning of their work with Imperial and expect to partner on other studies focused on different therapeutic areas of cannabis. Reuters has named Imperial as Europe’s third most innovative university – top in the UK – because of its ties to industry and its entrepreneurial culture.

The UK allows sales of CBD products and cannabis-derived seizure medication Epidiolex but there is no medical cannabis access or adult-use legalization.

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Killer Mike to Keynote New West Summit

San Francisco, Calif. (September 11, 2019)New West Summit 2019 (NWS5) THE Cannabis Tech Conference (October 10-11, 2019) is pleased to announce keynote speaker Michael Render, p.k.a. Killer Mike. Killer Mike joins Alicia Silverstone as part of an impressive roster of NWS alumni keynotes including Sir Richard Branson, George Clinton, and Ricki Lake.

Michael Render, publicly known as Killer Mike, is a husband, father, activist, businessman and GRAMMY Award-winning artist. He is as synonymous with Atlanta as the iconic brands, Coca-Cola and The Varsity. Render, who is deeply connected to his community, made a name for himself as an activist well before he ever recorded a single song. For the past two years, he’s held back-to-school events offering free haircuts, braids, and school supplies for Atlanta children. His 2018 back-to-school event was held over multiple weekends in July and August and served over 250 children and youth.

“We couldn’t be more thrilled to welcome Killer Mike as a keynote for this year’s Summit,” said Jim McAlpine, founder of New West Summit. “Mike is an all-around awesome human being, and serves as an example of what we should all strive to be. He is a successful businessman, activist, philanthropist and a hero to many, including myself.”

NWS Platinum Sponsors include MediaJel and Wes Martin Cannabis. MediaJel is this year’s NWS exclusive media partner and host of the official VIP Kickoff Party, to be held the evening of Thursday, October 10, 2019.

“The MediaJel and New West Summit teams have been collaborating throughout the year to bring attendees a highly curated and memorable experience,” said Aaron Silverman, President and co-founder of MediaJel. “We are so excited to partner with this team and to be engaging with advocates like Killer Mike and Alicia Silverstone.”

Silverman continued, “This year’s VIP party is themed ‘Mediatropolis: Adventures in Jeltopia’. Together we are building a world that moves beyond prohibition, and Mediatropolis is that world. We can’t wait to welcome you.”

NWS5 San Francisco will be held on October 10 – 11, 2019 at Bespoke Event Center and Under the Dome – Level 4 – Westfield Mall. Tickets for the Summit and VIP party are available here. VIP Party sponsorship opportunities are available through MediaJel at mediatropolis@mediajel.com. Members of the press can request a media pass here.

About New West Summit

New West Summit focuses exclusively on technological advancements in the cannabis space and the disruptive forces at play in science, investment and media for this evolving industry. The October 10-11 event at Bespoke Event Center in San Francisco, California, will feature highly vetted & curated activations and participants with 60+ exhibitors, 40+ panels, 100+ speakers, an investment round tables, showcase retail pop-ups, VIP afterparties and more. Learn more at www.NewWestSummit.com.

About MediaJel

Founded in 2017, MediaJel provides advertising and marketing solutions for the cannabis industry built with proprietary technology and driven by data. Our team has vast experience from the food and beverage and consumer packaged goods industries matched with deep heritage in cannabis, hemp and ancillary space. MediaJel activates comprehensive strategies fueled by a keen understanding of our clients’ unique audiences. By utilizing proprietary technology and multiple data sets, we help brands build valued personal relationships with their target consumers during their consideration and purchase journey. MediaJel creates more than just trust and brand loyalty, we build communities one advocate at a time. For more information, visit www.MediaJel.com or follow us on Instagram, LinkedIn, Twitter or Facebook.

Contact:

Jennifer Price
VP of Communications
jen@mediajel.com
609-638-2558

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Canadian Cannabis Cruise Canceled by Health Officials

The cannabis cruise from Windsor, Ontario, Canada along the Detroit River has been canceled after officials said it violated the Smoke-Free Ontario Act, according to a CTV Windsor report. The cruise was being planned by Windsor River Cruises and Border City Entertainment.

The maiden voyage was planned for Sept. 20 and tickets had sold out in two days. A second cruise was planned for Sept. 26; both are canceled indefinitely and those who bought tickets will be refunded.

Patrons would have brought their own cannabis on board and smoking was to occur on the lower deck. The 2017 smoking regulations, however, prohibit smoking or vaping in enclosed workspaces, public places, and at bar and restaurant patios. Under the cannabis law, cannabis consumption is not allowed on vehicles that are in motion.

Jessilin Deschamp, the office manager for Windsor River Cruises told Blackburn News that health officials made the announcement before the company could address the issue with their customers. She said that they’ve allowed smoking on open decks during their cruises for a decade.

“However, we are going to be looking into the laws in the legislature that they are using to shut down our event because it’s not as black and white as they’re making out to be.” – Deschamp, to the Windsor Star

Medical Officer of Health Dr. Wajid Ahmed said the Smoke-Free Act is clear.

“The province is aware that this is what we are enforcing and obviously with many of these things it is a local decision and interpretation of the law which we are pretty clear,” Ahmed said to the Star.

In all, the company had sold 160 tickets for the Sept. 20 cruise.

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Hemp Company Says They’ll Drop Idaho Lawsuit if Hemp Is Returned

Big Sky Scientific, the Colorado-based hemp company suing the Idaho State Police to get its impounded hemp shipment back, said they will drop the lawsuit if their hemp is returned and the state allows future hemp shipments to pass through, the Neighbor reports.

The case dates back to January when Idaho State Police discovered the company’s 6,700-pound shipment during an inspection of the truck while it was making its way through the state from Oregon. On Tuesday, the driver, Denis Palamarchuk — who works for IYI Trucking, not Big Sky — pleaded guilty to a lesser misdemeanor charge of carrying an improperly permitted load including faulty bill of lading, CBS 2 reports. He was initially charged with felony drug trafficking charges.

In a statement to the Neighbor, Big Sky said it would settle the case “including claims for money damages, against the State if it will just give back Big Sky’s industrial hemp and allow it to continue to do its business by shipping its lawful product through Idaho in interstate commerce.” The shipment is valued at $1.3 million. Following Palamarchuk’s plea deal, the hemp is no longer needed as evidence in a criminal case.

Ryan Shore, president of Big Sky, said that he’s not even sure the hemp would still be usable. He said that if Idaho officials don’t agree to allow hemp shipments through the state, the trip from Oregon to Colorado would take more than double the time, which he called “an unfeasible kind of commerce.”

Officials have not yet responded to Big Sky’s proposition.

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Massachusetts Cannabis Regulators Require More Vape Ingredient Details

The Massachusetts Cannabis Commission will soon require more detailed labeling of all cannabis vape cartridges, extracts, and concentrates amid the outbreak of a vape-linked pulmonary illness that has killed at least six people throughout the U.S., the Boston Herald reports. The illness has been linked to vape cartridges.

Cannabis Control Commission member Jen Flanagan said the move gives an added layer of protection to both regulators and consumers.

“Given what’s happening with the issue surrounding vaping, there’s a lot of concern and while I stand by the statement that while the industry says that vaping is safer than smoking, it never said it is safe. People really need to be aware of what’s in that product.” — Flanagan, to the Herald

Under the new requirements, extract and concentrate manufacturers must include on their ingredient list every additive used in the product, including thickening agents and specific terpenes.

Earlier this week, the Centers for Disease Control and Prevention said that while they found a link between people who fell ill and use of both cannabis and nicotine vape products, they were not ready to blame the illness on cannabis cartridges. Last week the New York Health Department identified two counterfeit cannabis products that were used by individuals who fell ill. Those products contained vitamin E acetate – which health officials believe to be the cause of the illness.

At least 450 people have reported cases of lung illness associated with the use of vape devices.

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How to Scale a Hemp CBD Business

Starting a business is difficult enough in an industry that is long-established, but it’s entirely different when it comes to an industry that’s in its infancy like CBD hemp. When my partner and I started our business, we had no real examples to follow, no roadmap to show us how to scale, and no forewarning of the challenges to expect and how to overcome them. We had to hold our breath, blaze our own trail, and take our own risks in unchartered territory. We made a lot of mistakes and did a lot of things right that would have helped to know from others in advance as a blueprint on how to scale a hemp CBD business. This is our journey and advice that I hope will help others who find themselves where we were a few years ago.

Be Flexible

When we started, our intention was to be a hemp farm selling hemp. That was when hemp in the U.S. was in its infancy and there wasn’t a direct market for it. Unfortunately, we found ourselves with a surplus of hemp and nowhere to sell it. Instead, we were finding a lot of companies that wanted their own line of CBD products.

Because I previously worked in the cannabis dispensary business, I was able to take what I had learned there to team with a lab in order to extract the hemp to a CBD oil that we could white label and sell to other companies. Demand grew and so did our revenue. White labeling was never our intention, but because we have stayed flexible since the beginning, we were able to jump on the opportunity and have never looked back.

Sometimes, all it takes is a little brainstorming session to find the next big idea for bringing your company forward. Photo credit: Thomas Drouault

Be Your Own Bank

While the hemp industry is becoming more accepted, most banks or credit card processing companies won’t work with hemp businesses because they don’t understand hemp is not marijuana and is not illegal. When we started, we each invested our own funds, had no investors or bank financing, and reinvested profits from the company to sustain growth. This is why it’s important: some competitors took on debt and investors they had to answer to and as a result became less flexible. We’ve remained independent and can make decisions immediately, which enables us to take risks and with risks come great rewards. In fact, we recently received a substantial order for feminized seed product and had to make an immediate decision to expand our greenhouse to accommodate the contract. If we had a board of directors, a decision like that would take time, which could jeopardize the company’s ability to take on big contracts. Scaling is all about being nimble.

Focus on Your Strengths

If you have a great idea and you’re doing the right things, you should be able to scale by reinvesting your profits. Create an initial investment into one thing you know is going to start generating income and profit and then pick something strategic into which you’ll reinvest the company’s cash flow. If you’re doing the right things, the company is going to grow.

Be Prepared

Have a business plan, but as in the white labeling example, be willing to change it because the industry is always changing and you have to be ready to change with it. Have a backup plan because things do go wrong. We’ve had at least one unexpected challenge each year and have had to think fast in order to overcome and continue growing, from storms that nearly wrecked our crop, to shipping and transportation issues, credit card processing issues, and learning the difficulty of finding good staff.

You’re Never Finished

The most important advice I can offer is to never settle. Human tendency is to set a goal and think you’re going to be finished when you hit that goal. To be successful in the hemp CBD industry, it’s crucial to understand that you’re never finished and are always going to add new equipment, entering into new partnerships with vendors, creating new products and expanding your farm. You’re never going to be done and will always be in a place of growth and reinvestment. If you’re not, then in many ways your business is dead.

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Curaleaf Chairman Reportedly First Cannabis Billionaire

Curaleaf chairman Boris Jordan is the first and only person so far to make $1 billion from the legal cannabis industry, according to a report from Forbes. Jordan owns a 31 percent in Curaleaf — the sixth-largest cannabis company in the world and the largest by market cap in the U.S. — and is worth $1.1 billion.

Curaleaf owns and operates 48 medical cannabis dispensaries in 12 states. In May, Curaleaf announced it acquired Cura Partners, owners of cannabis brand Select, in an all-stock, $1 billion deal. Select is sold at more than 900 retailers in the U.S. In July, the company said it had a deal in place to bring Grassroots into the fold for $875 million in cash and stock. Once finalized, the company will become the largest cannabis company in the world by revenue.

Jordan also founded cannabis industry investment firm Measure 8 Venture Partners, who announced in May that they were aiming to raise $100 million for the fund, according to Bloomberg. Measure 8 owned about 12 percent of Cura Partners which made them a “multiple bagger” on the deal, according to the report.

Jordan is best known for privatizing Russian state-owned assets as the head of Credit Suisse’s investment banking division First Boston after the fall of the Soviet Union in the 1990s.

Curaleaf Holdings Inc. spent $200,000 on federal lobbying efforts during the last quarter — more than any other cannabis firm that spent on lobbying efforts.

Jordan is also the chairman of both private equity firm Sputnik Group and Russian company Renaissance Insurance.

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Illinois Regulators Name 26 ‘Responsible Vendors’ to Train Retailers

The Illinois Department of Financial and Professional Regulation has unveiled their list of companies that will provide health and safety training to the state’s cannabis dispensary operators, the Associated Press reports. According to the agency, “at least half” of the 26 providers are minority-owned.  

The Chicago-based division of longtime cannabis advocacy organization NORML is one of the approved trainers; as is Oakton Community College, which this semester began offering a cannabis-focused certificate program.

“They’re looking for people who know how to work with chronically ill patients and understand what they need. They’re not looking for enthusiasts who love to use the product.” — Ileo Lott, vice president for academic affairs at Oakton Community College, via the Chicago Tribune

Companies representing Illinois come from Cook, Lake, Kane, DuPage, Will, and Sangamon counties; other companies come from Iowa, Texas, and Florida — none of which have legalized cannabis for adult use

The announcement comes as officials are rolling out the recreational-use program. Last month, the agency released FAQs for current medical cannabis operators who are seeking an adult-use license for a second site and, earlier this month, rules for businesses seeking to operate in Chicago.

Would-be retailers must receive the training — focused on dispensing, checking identification, and identifying whether someone is impaired — by November 30. After that, newly hired dispensary agents will be required to receive training within 90 days of their hiring date.

Illinois lawmakers approved legislation in June to legalize and regulate the adult-use cannabis industry. The law will take effect starting January 1, 2020, making Illinois the first state to legalize and regulate adult-use cannabis sales.

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Cannabis plants inside of an indoor, commercial grow operation.

Head of Maryland’s Medical Cannabis Commission Resigns

Joy A. Strand, the executive director of the Maryland Medical Cannabis Commission, has resigned, the Baltimore Sun reports. Strand is a former healthcare executive who joined the commission in December 2017.

“Thanks to her leadership, the Maryland medical cannabis program is among the nation’s leaders in safety and equity.” — Commission chair Brian Lopez, via the Baltimore Sun

Strand’s resignation comes as the commission is in the process of awarding 14 new cultivation and processing licenses in an effort to expand the participation of minority- and women-owned businesses; the state received more than 160 applications by the May deadline. 

The General Assembly is also considering bringing adult-use legalization up for a vote during the next session. That task force met for the first time in June. 

Will Tilburg, the agency’s director of policy and government affairs, will serve as acting executive director. Strand’s resignation takes effect on Oct. 1. 

The terms of all 16 commissioners are set to expire at the end of the month and the number of members will be reduced to 13 under a bill passed last year. Gov. Larry Hogan, however, could potentially re-appoint current members.

Maryland medical cannabis sales topped $128 million through July.

End


cannabis industry

Steve DeAngelo: Evolution of the Cannabis Industry

Steve DeAngelo — who is is nothing short of a cannabis industry icon, having co-founded Harborside, Steep Hill Labs, Arcview Group, and the NCIA — recently returned to the Ganjapreneur.com Podcast for an interview with our host TG Branfalt.

In this interview, Steve shares the experiences that led to his entry to the cannabis movement and eventually the professional cannabis space. From his earliest advocacy efforts, toking up in front of the White House at the annual 4th of July smoke-in, to the modern industry’s launch following California’s historic medical cannabis legalization, Steve shares the inspiration behind Harborside and explains how the birth of that now-iconic business led also to the founding of Steep Hill Labs (the nation’s first cannabis testing lab), the National Cannabis Industry Association (the industry’s first trade association), and eventually the Arcview Group. He also shares stories of grappling with the reality of doing business in a post-prohibition landscape despite the thousands of individuals still locked away for cannabis crimes, and explains his plan for ending cannabis imprisonment on a global scale.

You can tune in to the interview below or scroll further down to read along with 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 4:20 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 am joined by a man that probably doesn’t need my introduction. He is Steve DeAngelo, often called the ‘Father of the Cannabis Industry.’ He’s the Chairman of Emeritus of Harborside, Inc., a pioneering cannabis entrepreneur, activist, and author. In addition to Harborside, he co-founded several iconic cannabis businesses and organizations, including Steep Hill Laboratory, the first dedicated cannabis lab; the Arcview Group, the first cannabis investment firm; and the National Cannabis Industry Association, the industry’s first trade association.

Thank you so much, Steve, for coming on the show. I can’t wait to get into the weeds, so to speak, with you. We have a lot to talk about. How you doing this afternoon?

Steve DeAngelo: I’m doing very well, Tim. Thanks for having me.

TG Branfalt: As I said, you deserve more introduction than I could give you. But for those out there who don’t know you, give me a little bit of background. How did you end up in the cannabis space?

Steve DeAngelo: Well I was a precocious kid. I encountered cannabis for the first time at age 13 and had a transformational experience with it. Came out of that experience knowing that cannabis was going to be a part of my life forever, and also, knowing that I wasn’t prepared to be a criminal forever. Legalizing cannabis was just a basic prerequisite of my personal happiness at first.

As time went on, and I learned more about how and why cannabis had been made illegal, and the incredible benefits of the plant, then I started getting really, really angry and determined to make this plant legal.

TG Branfalt: You were one, again, you’re often called the ‘Father of the Industry’, and you got your start — ’90s California. Tell me about those early days, man.

Steve DeAngelo: I got my start on the East Coast actually, around the Washington, D.C. area. My earliest days of cannabis activism were putting on the annual Fourth of July smoke-in, in front of the White House.

TG Branfalt: No shit.

Steve DeAngelo: That lasted for about a good decade. I focused on doing that work and then started working on hemp and Hemp Tour.

Those years were basically just being an activist and doing what activists do, traveling around the country, talking to people, organizing demonstrations, disseminating information. But over time, I developed a niche in socially conscious businesses, cannabis businesses that would allow me to make a living, but also spread my message about cannabis.

The first of those was a hemp company called Ecolution, and that company basically lasted from 1990 to 2000, when I moved to California.

TG Branfalt: I want to just step back before we get into the push for medical legalization in California. Can you tell me about who is president when you were the smoke-ins? Can you describe to me the climate in the country as it was towards activism during that period in history?

Steve DeAngelo: Yeah, sure I can. Let me roll it back to 1971 for you. This is the height of the Vietnam War and height of the anti-Vietnam War protests. It’s Fourth of July in Washington, D.C., I am 13 years old, the president is President Richard Nixon, who was a complete enemy of the anti-war movement. On this day, the pro-Nixon forces held a rally called Honor America Day, which was organized by the Reverend Carl McIntire, and all of these right-wing, pro-war folks came and gathered at the Washington Monument.

It was very personal for us in those days. We had the draft then. We had friends, we had brothers who had just been plucked out of our communities, and sent to Vietnam and come back home in body bags. So it was very personal to us when we saw all these right-wingers down at the monument calling for even more people to die.

That was the first Yippie smoke-in. I didn’t help organize it, but I was there. If anybody really wants to see what a wild crazed demonstration looks like, just Google Honor America Day or the first smoke-in. It was a angry time in our country, as angry as it is now. It was confrontational. People on both sides were raised voices and profanity. We even threw a few things around to make our point.

That was the early, early days, and it was where my, I guess my style of activism was forged in that milieu.

TG Branfalt: At that time, we know now that Nixon’s administration had really clamped down on the war on drugs to keep the blacks and the hippies down. That’s what the documents that are now released showed. Was there any indication back then that that was the impetus behind the crackdown by the government?

Steve DeAngelo: Oh we knew exactly that that was the impetus. There was zero doubt in our mind. By that time, we knew enough about cannabis to know that this was not a well intentioned effort of the government to keep us from something that was dangerous. It was very, very clear.

At that time, the federal government under Nixon was really in a state of domestic warfare with the anti-war movement. They were sending FBI agents into anti-war groups trying to convince people to set bombs and they would put informers in. Then if people agreed to do these crazy things that the informers always proposed, then people would be arrested on these conspiracy charges, what we would call terrorism charges today.

There was no doubt in our mind that the campaign against cannabis was intended to hurt us, the hippies, the anti-war forces, black people and brown people.

TG Branfalt: It’s unbelievable. Let’s move ahead to the ’90s and the legalization of medical cannabis in California. Tell me about what was your role in that and the early days of that industry.

Steve DeAngelo: Well I was still living in Washington, D.C. in 1996 when Prop 215 passed. I did travel out here. I did make donations and I did do some volunteer work. But that effort was led by my dear friend, Dennis Peron. I can safely say this now, that Dennis and I were engaged in underground trafficking activities with each other before it was possible to have a license, and so I was tracking what he was doing pretty carefully.

We really have Dennis Peron to thank for the birth of the modern medical cannabis industry and movement. This was the time of the AIDS crisis. The AIDS crisis was hitting San Francisco especially, especially hard. The gay community in San Francisco was having funerals every weekend, instead of having parties. You didn’t know anybody who wasn’t either sick or didn’t have friends that were sick.

Dennis was a weed dealer. He was a gay man, he was a Vietnam vet. This strange thing started happening. Dennis was always very generous with his cannabis and gave it to OAs as much as he would sold it. He noticed that his friends who had AIDS, who were consuming cannabis were living longer and having a higher quality of life than people who didn’t.

As soon as he noticed this, he started spreading the news, and started giving away as much cannabis as he could to AIDS patients and forming alliances with people like Brownie Mary. Brownie Mary was in her 70s when she started this work with Dennis Peron. Dennis would get cannabis for Brownie Mary, Brownie Mary would make it up into brownies, and then she would distribute those brownies to AIDS patients on the ward at San Francisco General Hospital where she was a volunteer. She’d been a volunteer there for years, and years, and years.

This was all taking place in the late ’80s, 1990 and 1991. Dennis was the lead organizer for I believe it was called Proposition 91 in San Francisco. That was the very first … Oh, no. It was Proposition P in San Francisco and it won in 1991. That made San Francisco the first legal jurisdiction for medical cannabis. Then five years after that, Dennis, another good of mine Jack Herer, and a lot of other folks were the prime movers behind Prop 215, which passed in 1996 and made California the first medical cannabis state.

TG Branfalt: What was it set up like? Was there licenses like there is now? What was that early industry … How was it regulated at all?

Steve DeAngelo: Well it basically wasn’t regulated in the early days. Prop 215 called on the legislature to license and regulate the cultivation and distribution of cannabis, but law enforcement agencies, and the League of Cities, and the Association of Rural Counties all got together and put political pressure on the legislature, and prevented them from doing that, because the law enforcement organizations did not want cannabis to be legitimized.

You had this crazy situation where it was legal for people to possess and use cannabis legally at the state level, but there was absolutely no mechanism by which they could get that legal cannabis. The whole intention of the law was being frustrated by the failure of the legislature.

Activists took matters into their own hands. People who had zero interest in being business people, who had never thought about profit, or net profit, or a spreadsheet in their whole lives opened up little stores. They were very raw in the beginning. You’d walk into a store front that had been started by activists who were just frustrated that people couldn’t get medicine, and there would be a couch, there would be a widescreen TV, there would be a little cabinet, there would be a cigar box that was your cash register, and there would be some bags of weed that look very much like the same bags of weed that you would buy at a dealer’s house.

That was the earliest version and that was a problematic version because what happened is the activist dispensaries started doing huge business. Nobody really expected it, but it was the only place that people could legally get cannabis. People who had never run a business before, suddenly they’re seeing millions and millions of dollars coming in through the doors, and all kinds of traffic and volume.

Well all of that volume and money attracted another sort of dispensary operator. These were folks who really liked the gray area. They were people who … Well, their backgrounds say a lot about them. One of the guys who jumped into that space was a guy whose previous gig was selling “organic Kona coffee.” But the coffee was neither organic, nor from Kona. It was poppy we believed. There was another guy whose previous gig was running an underground gambling casino in Anchorage. These were folks who were really not motivated by desire to serve medical cannabis patients, but motivated by a desire to make as much as money as they could, as quickly as they could.

The places they put up were really problematic. You’d go and there’d be a whole bunch of security, barbed wires, bulletproof glass, these great big thuggish gooney guards. There was no real effort to treat people like patients, to educate them about cannabis, to do anything other than get them in and out as quickly as possible, and take as much money from them along the way.

These operations started getting a lot of publicity. They started appearing on news stories. The image of medical cannabis started shifting from one of service, to one of criminality and exploitation. There were some raids up in Northern California around this time where I remember one story where somebody was raided and they had $600,000 in a garbage bag, and had owned several luxury cars, and 200 pairs of sunglasses or something.

It became clear to me that we needed a gold standard of cannabis retailing to show that this was an activity, when done with good intention, could bring benefits to communities, rather than harms. That’s what led to the starting of Harborside.

TG Branfalt: Since then, you’ve founded a lot of several other businesses that are not dispensaries, not retailers. Steep Hill, as I mentioned, laboratories, Arcview for investment. Obviously you realized at that time when the [inaudible 00:16:04] players started to coming into California, that you needed a gold standard. When was it apparent to you that the industry needed these types of businesses and resources?

Steve DeAngelo: What happened is Oakland became the first jurisdiction anywhere in the United States to license medical cannabis retailing. That happened in 2006 because some of the problematic dispensaries that I’ve been talking about opened in Oakland, they were clustered in one area. The city council responded by passing this licensing program and forcing all of the dispensaries in the city to get licenses.

Harborside got one of those licenses. Our intention from the beginning was just to create a really top-flight retail store experience for cannabis consumers, that would be the equivalent of any other top-shelf retail experience. The market really responded to that. I think that by the end of our third year, we were up to $20 million a year in sales, we were serving hundreds and hundreds of patients every day.

With that success, came some attention, some media attention. A few things grew out of it. First was Steep Hill Laboratory. Before I opened Harborside, I had contacted every single commercial analytical laboratory in the Bay Area, and I asked them to test our cannabis because I didn’t want to call it medicine unless I 100% knew that it was safe, and I knew what its potency was, what cannabinoids were in it. But they all refused because of federal law.

I got together with my two co-founders, Addison DeMoura and Dave Lampach. We formed the world’s first dedicated cannabis analytics laboratory, Steep Hill Laboratory. We did that in 2010, which allowed Harborside to become the first dispensary anywhere that sold cannabis that had been tested, that sold CBD rich cannabis. That was an outgrowth. It was just a need that was there.

Then another need became apparent as we got a lot of media attention. I started seeing and hearing from two kinds of people. The first were folks who had successes in the cannabis industry, but wanted to grow and needed some investment capital in order to reach their full potential. The other, and this was mostly through my partner Troy Dayton, who had previously been a fundraiser for Marijuana Policy Project. He was having conversations with people who were very generous donors to the cannabis reform movement, high net worth individuals.

After he started talking to them about donations frequently, the conversation would turn to the new legal industry. Troy was asked, “Where are the deals? How do we understand what’s going on there? Who are the players? How do you assess the risk?” They wanted to put money into the industry, so it was obvious that you have these groups of people and they just really needed a meeting place. They needed to learn each other’s language, they needed to understand each other’s concerns. That’s what led to the starting of the Arcview Group, that was just an effort to introduce cannabis entrepreneurs to cannabis investors.

TG Branfalt: Incredible. It’s incredible to me just how these things are grown out of necessity and then the laboratory is not regulated. You guys are like, “Well we want this,” and you create.

Now you’ve been in the dispensary business, the laboratory business, the investing business. Then you found the NCIA, the National Cannabis Industry Association. Tell me about the mission of the NCIA and what in your opinion the organization does to normalize the cannabis industry.

Steve DeAngelo: It’s interesting when we first started talking about the National Cannabis Industry Association, which I think was also 2010, people would laugh at us. Even friends of mine, I’d go to and say, “Hey, I’m starting the National Cannabis Industry Association,” they’d laugh at me. They’d think that I was joking, that was trying to be humorous because it seemed so improbable to people.

But the folks who started the NCIA, people like myself, like my partner Troy Dayton, like our executive director Aaron Smith, we were amongst the earliest cannabis industry entrance and we all came from a movement background, from a social justice background. We wanted to make sure of two things. First of all, that California wasn’t the first and the last state to have legal cannabis. We wanted to make sure that there was a mechanism to defend against federal attack.

Remember that this time, you had feds coming into California and raiding dispensaries, taking people off to prison. We had people who, in that period of time, were sentenced to sentences so long that they’re still serving them now. There’s a young man who was a young man then, who’s in his middle age now, Luke Scarmazzo, who did much the same thing that I did. He was in, I think Modesto, I was in Oakland, he was sixth months before I did it. He caught, I believe it was a 20 year federal conspiracy charge.

TG Branfalt: What a shame.

Steve DeAngelo: We very much were aware of the need to have a defense mechanism to make sure that this nascent industry wasn’t strangled in its grave. That was part of the impulse I’d say, probably the main impulse behind the found of NCIA.

The second impulse was to make sure that the industry that grew up was an industry that was cognizant of its social justice roots, that did not just become a organization to help people make more money, but that remained an organization that was dedicated to bringing about cannabis freedom and cannabis justice.

TG Branfalt: On the same justice thing, you said in a recent interview that you want every single cannabis prisoner in the world out of prison. You’ve launched the Last Prisoner Project in an effort to do just that. Tell me about this project and how it will work toward that goal of getting every single cannabis prisoner in the world out of prison.

Steve DeAngelo: Yeah, I’d be happy to do that. Thanks for asking. The inspiration for the Last Prisoner Project really came from a personal experience that I had after California had voted to legalize cannabis, but before it was completely 100% the law had been implemented. During this period, I like a lot of cannabis entrepreneurs and business people in California, was meeting with investment bankers, was meeting with people who can help you get onto the stock exchanges, can help you raise capital because we were gearing up for this new adult-use market.

I was in one of these meetings, in a really big fancy skyscraper, huge conference table, amazing view. I’d been talking to a lot of folks who were really, really excited. We were looking at numbers, we were adding them up, it was looking really good. There was excitement in the room because everybody knew that we were going to be making money doing this and making significant amounts of money doing this.

Towards the end of the meeting, right at the end of the meeting actually, I get a phone call and it’s my friend Chuck. Chuck has been imprisoned in the state of Pennsylvania for four years, for 14 pounds of cannabis. We, in that conference room had been talking about magnitudes more. We had been talking about tons and tons of cannabis.

TG Branfalt: Literal tons.

Steve DeAngelo: None of us had to worry about going to prison.

I excused myself, I took the call, I talked to Chuck. He’s a tough guy, so he wasn’t whining or anything, but I could tell that he was miserable, he was lonely, he was really upset because his elderly mother didn’t have anyone to shovel the snow from her walk.

I hung up the phone and it just struck me. I was like, “God, we’re sitting here talking about creating intergenerational wealth, millions, and millions, and millions of dollars, creating a whole new industry that’s going to be on stock exchanges, and my friend Chuck and thousands of people like him are sitting there in cells.” Imagine, how would you feel if you were sitting in a cell, looking out your windows or watching TV, and seeing this huge new legal industry, and all these people talking excitedly about all the investments, and the conferences, and the money, and you’re sitting there in that cell for doing exactly the same thing.

I know how I would feel and I don’t want anyone to feel that way. That was the genesis for the Last Prisoner project.

TG Branfalt: What are you doing over there with the Last Prisoner Project? What are you guys working towards, I guess?

Steve DeAngelo: Well the first thing that we’re doing is really just assessing the problem. It turns out that it’s not easy to determine how many people are locked up in the United States on cannabis charges. Lots of jurisdictions don’t even really track charges by particular drugs. Lots of times people end up with the crime of violating probation or violating parole, but the underlying cause of that violation is a bad cannabis urine test. It can be difficult to assess, and the first thing that we’re doing is really just trying to figure out where all of our people are and what situations that they’re in, an assessment, and figuring out what it’s going to take to free them.

Where we’re headed is towards a formal launch in September. It will be a really exciting launch. I’ll you know about it as it happens.

TG Branfalt: Please do.

Steve DeAngelo: I can’t talk too much about it right now, but the centerpiece of our program in the earliest days is going to be clemency petitions. Right now, there are a number of states that have passed cannabis laws and some of those laws have provisions for clemency in them, some of them do not. But in all cases, the governor of a state has the power to give clemency to any prisoner, to let them out of prison immediately. Governors in some of the new reformed states, like Michigan and Illinois, have indicated in public statements that they’re willing to do this.

The problem is that the technical effort of actually filing out these thousands and thousands of clemency petitions, submitting them, reviewing them, getting them cleared and actually releasing prisoners is a huge task. That task usually just goes through the governor’s office. It doesn’t have a huge staff.

What we’re going to be doing is working with governor’s offices around the country to help develop streamlined clemency procedures, and then we are recruiting and training a small army of lawyers who will work with all of the prisoners to file their individual clemency petitions. We think this is the fastest way to get the most people out for the least amount of money, so we want to do that as quickly as we can.

But moving on, there will be cannabis prisoners who don’t qualify for clemency. I’ll give you one example. One of the prisoners that we’re in touch with is facing a 42 to 60-year sentence, a de facto life sentence. It was his third cannabis sale, but he lived on a farm. If it was just the cannabis sale, he would have gone to prison for a long time, but not that long. But because they were guns in another part of the farm that were unrelated to the sale, but were on the legal property, he was given gun charges as well. This person who had never committed a violent crime, nobody was ever hurt, he wasn’t carrying guns, is now looking at a 42 to 60-year sentence.

In these kinds of cases, we are going to have to move towards petitions for resentencing, and petitions for retrial in some cases. They will be more expensive, they will take longer, but we’re not going to stop until we get the last one out.

TG Branfalt: I really can’t wait to see some of the headlines that pop up as a result of this project. Thanks for filling me in a little bit before the launch.

Talking about the money that can be made in the industry, and a lot of states, townships, cities have launched social equity programs whereby some licenses are given to people usually most affected by the war on drugs. In your opinion, do these programs do enough to provide those so-called reparations?

Steve DeAngelo: Well I think they’re a start, but they’re not sufficient in themselves. What’s really important to remember in this whole conversation is that the racial disparity in cannabis enforcement was not just some unintended consequence that just happened. The original animating purpose of cannabis prohibition in the United States was to control black and brown communities. That is why the laws were passed in the first place, that was their intention, and the disparity was planned from the beginning.

If we do not do something to make sure that this is a diverse industry, that people of color have an opportunity, a real opportunity to participate in, then we are piling injustice on top of injustice. But we have this amazing opportunity to fix it.

I think that that operates at several levels. Yes, we need some preferential licensing provisions to make sure that we get folks from communities of color licensed in the first place, but getting a license is just the beginning of it. After you get a license you have to get a location, you have to recruit a team, you have to write a plan, you have to raise money, you have to set up all of your compliance, all of your security, all of your bookkeeping. That’s a big task for somebody that hasn’t had an opportunity to participate in a business before. It takes a lot of money to do it.

What we’re finding in too many cases is that people from communities of color who have received licenses are unable to actually put those licenses into effect and create businesses. In cases where they have been able to do that frequently, they are unable to keep the business open or sometimes, and in other cases, just not able to grow it to its full potential.

I think that we really need a network of support around people who have been awarded equity licenses and I think that takes a number of different forms. I think there needs to be training, and you have some private companies who are stepping into that gap now, and acting as brokers between investors and equity licensees. That’s one way of tackling that.

I would really like to see a world class training center for cannabis equity licensees. Some place that would be in a beautiful prestigious location where equity licensees from all over the country could come and get the very best, I’m talking like Harvard level cannabis training, both workers who are in the workforce and entrepreneurs.

Then I’d like to see a dedicated showcase mall attached to that university, to that training center where the graduates of those programs would be able to move right into locations that would be licensed, so that they have an opportunity to really take the skills that they learned, and take the license and execute on it, and make it something that happens. That’s not something that can happen by the government by itself, but I think that could happen.

I’d like to see a fund. I think that the cannabis investors should get together and put together a fund with the understanding that the money that came out of this fund would be supplied to entrepreneurs from communities of color, and would be supplied at a very advantageous rate that would give them a little bit of competitive edge in the marketplace.

I think that there’s things that can and should be done to supplement the licensing regulations. The licensing regulations are just a starting point that give us the ability to start building, but we have a lot of building to do after that.

TG Branfalt: It’s a very, very interesting idea that you have. There are, to be fair, quite a few angel investors in this space that I’ve actually had on the show that do what you outlined there, where they do offer these social equity applicants better rates and training programs for the space.

I want to switch gears a little bit while we still have some time and talk to you briefly about going public on the CSE, the Canadian Securities Exchange. How important is such a move as the industry gets more competitive? You’ve told us from the ’70s to now, you go from a little shop in Oakland to now being publicly traded. Tell me about your opinion too on the evolution of the industry?

Steve DeAngelo: The evolution of the industry has been massively accelerated by the opening of the Canadian public stock exchanges to cannabis companies. What you’ve seen, certainly in California and really around the country, is companies that have raised hundreds of millions of dollars on the Canadian stock exchanges are now coming into the United States and either acquiring U.S. cannabis companies, or merging with U.S. cannabis companies, or forming some type of strategic alliance with cannabis companies.

If you really want to be in the top tiers of cannabis companies in the United States, you almost must have some type of public market strategy in order to continue growing at the pace that your competitors are growing.

TG Branfalt: Is it a little bit crazy to you going from where you started, with the gray market, to launching that same company on a national exchange?

Steve DeAngelo: It’s incredibly validating. Harborside, it was just a little over three years ago, no excuse me, just a little under three years ago that the federal government of the United States finally rested the civil forfeiture cases that they were prosecuting against us trying to seize all of the locations, the real estate that we operated in and close us down.

Now to have successfully resisted the federal government’s effort to close us and close the whole industry, to have gone through the 2018 regulations in California, which were intense, and successfully enter the Canadian Securities Exchange through one of the most demanding, due diligence processes that exists on planet Earth, that’s exhilarating and validating for me.

TG Branfalt: I remember when I was younger, my friends I would talk about legalization. We were like, “We won’t see it in our lifetime.” Here we are. I’m in New York, so it’s still not legal, but I am seeing legalization in my lifetime. Can you speak to that as somebody who’s been an activist for as long as you have and seeing as much as you have?

Steve DeAngelo: Yeah. I get this question all the time and my basic answer is I always knew that this plant would be legal. I thought that we would actually get it done in a much shorter period of time that has taken us.

There was a period of time in the 1970s when we had about 15 states that decriminalized cannabis. In 1978, President Jimmy Carter endorsed the nationwide decriminalization of cannabis. But then Ronald Reagan was elected and he rejuvenated Nixon’s whole war on drugs thing, and a lot of the decriminalization states recriminalized cannabis. That’s taken us all of these years since then to claw our way back to the point that we are now.

I don’t think I answered your question though, Tim. Do you want to … ?

TG Branfalt: You did answer my question. In the last minute here, so what advice would you have for entrepreneurs looking to enter the cannabis space?

Steve DeAngelo: My advice to entrepreneurs who want to enter the cannabis space is to take a look at whatever it is that you already know how to do. Chances are, you’ll be able to take that skillset and apply it in the world of cannabis. The reality is that cannabis has been illegal, and cut off from most modern business technology, or practices or ideas ever since the beginning of modern business.

Whether you’re a software engineer, or you’re a compliance specialist, or you’re a marketing person, or you’re in HR, the cannabis industry is going to need all of these skillsets and all sorts of ideas. Use the knowledge that you have, take a look at the world of cannabis, and you will probably see gaps, you will probably see places where you’ll say, “Gee, I know how we can fix that problem.” That of course is, in my mind, the essence of all successful entrepreneurship is spotting a problem and figuring out a solution to it.

TG Branfalt: Steve DeAngelo, this has been absolutely fascinating. I could sit here literally and talk to you for another three hours. Where can people find out more about you, your story and what you have going on?

Steve DeAngelo: Sure. You can go to my website, stevedeangelo.com. That’s probably the best way to get me. You can also track me on IG, it’s @stevedeangelo. I will be speaking widely. You can go into Green Flower Media. I have a little show on Green Flower Media that’s called Ask Steve. My brother and I are working on a podcast, which we expect to launch sometime in the next coming weeks.

TG Branfalt: That is all very super exciting stuff. I’m going to send you so many questions on Ask Steve. Steve DeAngelo, he’s an OG, he’s the ‘Father of the Cannabis Industry’, he’s the Chairman of Emeritus of Harborside, he’s the co-founder of Steep Hill, he’s basically done it all. I really, really appreciate you taking the time to be on the show, Steve.

Steve DeAngelo: Thanks so much for having me, Tim.

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, and this outro was botched by TG Branfalt.

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CannaCon South Returns to Oklahoma City September 27-28

CannaCon South, Oklahoma’s largest B2B cannabis expo, is returning to Oklahoma City this September 27-28 for another weekend of cannabis business networking, education, technology demonstrations, and more. After a hugely successful flagship event last year — and in light of the Oklahoma medical cannabis industry’s successful launch — CannaCon South is fully prepared in 2019 to put on another successful weekend.

This year’s event will kick off at 10:00 am at the Cox Convention Center in Oklahoma City, Oklahoma.

CannaCon South’s seminars include an Infused Cooking Demo with Chef Shaun O’Neale, who was named America’s best chef during September 2016 and crowned Season 7 Champion on FOX’s MasterChef. Chef O’Neale has won the favor of multiple world-famous chefs, including Gordon Ramsay, Christina Tosi, Daniel Boulud, and Wolfgang Puck; his seminar will explain in detail what chefs need to know about the cannabis decarboxylation process and how to dose properly when cooking with cannabis.

Meanwhile, cultivation-centered seminars will include:

  • Crop Optimization and High Tech Irrigation with Doug Jacobs, the technical advisor for Grodan, a sustainable agriculture tech firm.
  • So You Wanna Get Into the Cannabis Industry? with Blake Johnson, an attorney at Crowe & Dunlevy who represents more than 100 cannabis companies.
  • Solventless Extraction & The Entourage Effect with Chet Tucker, the executive director of Arcadia Brands.

CannaCon South is also set to feature more than 200 booths on a fully fledged exhibition floor, where the next generation of cannabis technology and consumer products will be on display; more than a dozen seed vendors will also be present, many of whom are expected to be dropping exclusive cannabis strains for the event.

In total, a diverse group of entrepreneurs, investors, industry experts, and ancillary service representatives will be mingling in a unique opportunity to drive Oklahoma’s cannabis industry forward.

Visit CannaCon.org to learn more about the event, or click here to buy tickets now.

About CannaCon

CannaCon is the leading business-to-business cannabis networking event of the year. With annual expos scattered throughout the United States, CannaCon has helped bridge the gap between cannabis entrepreneurs, investors, and ancillary services for years and is dedicated to advancing the cannabis movement through education and professionalism.

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Report: Hemp Production Quadruples from 2018

Hemp production in the U.S. has quadrupled since last year, according to Vote Hemp’s 2019 License Report, which estimates 230,000 acres of hemp will be planted this year. The group says that 50 percent to 60 percent of that acreage will be harvested, resulting in 115,000 to 138,000 acres of harvested hemp.

In all, 511,442 acres of hemp has been licensed throughout the U.S. and 16,877 grower licenses have been issued. The licensed acreage increase represents a 455 percent increase over last year, which Vote Hemp says shows “intent.”

“Intent is a useful indicator but we know from previous years that significantly less hemp is planted than what is licensed due to a variety of factors including access to seed and/or clones as well as experience.” – Vote Hemp, 2019 U.S. Hemp License Report

Following the federal legalization of hemp via the Farm Bill, 13 states passed legislation to enact a hemp program, meaning 46 states total now allow hemp cultivation. Idaho, South Dakota, Mississippi, and New Hampshire are the only U.S. states without a hemp program.

Eric Steenstra, president of Vote Hemp, said that with federal prohibition lifted, “it’s time to build the infrastructure and expand hemp cultivation.”

The Congressional action last year removed hemp from the federal drug schedule but it left enacting regulations to individual states. Those rules – which are referred to as pilot programs – must be approved by the U.S. Department of Agriculture before becoming permanent. So far, the USDA has not approved a program under the law.

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Illinois Community College Offering Certificate Course in Cannabis

Des Plaines, Illinois’ Oakton Community College has launched its certificate course in cannabis, according to a Herald & Review report. The program focuses on molecular biology, drug laws, treating terminal illness, and other technical and practical knowledge to help students get a job in the burgeoning industry.

The seven-course cannabis-focused program is the first by a community college in Illinois – which legalized cannabis via the legislature earlier this year – and counts among 100 students taking part in the first semester’s offering. It consists of 12 credit hours, including classes dispensary operations, and carries tuition of $1,635 for Illinois residents.

Ileo Lott, vice president for academic affairs, said “the curriculum is driven by what the industry needs, what they’re looking for in an employee.”

“They’re looking for people who know how to work with chronically ill patients and understand what they need. They’re not looking for enthusiasts who love to use the product.” – Lott, to the Herald & Review

The Cannabis Business Association of Illinois plans to hold its first job fair on the Oakton campus next month. Pam Althoff, head of the association, said cannabis industry employers are looking into potentially offering internships or workshops and licensed cultivation centers so students can also have hand-on experience with the plant.

Southern Illinois University is also reportedly considering offering a 30-hour certificate program on indoor plant products that would include cannabis. Federal law prohibits the school from cultivating cannabis on campus but the program could use hemp plants, which are already being cultivated by the university

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CDC Not Ready to Blame Illicit Market Cartridges for Vape-Linked Lung Disease

The U.S. Centers for Disease Control and Prevention are not ready to definitively link the vape-linked pulmonary illness to illicit cannabis cartridges as a “large number” in the agency’s data report using both THC and nicotine vape cartridges, Reuters reports.

Dr. Dana Meaney-Delman, who is leading the CDC efforts to find the cause of the illness, said that 60 percent of the patients affected by the illness used both THC and nicotine vape devices, while 20 percent only used nicotine.

“There is no one product, device or substance that we can point to that is common among all these different patients.” – Meaney-Delman, to Reuters

Last week, the Food and Drug Administration warned against using cannabis vaping devices bought on the illicit market or adding THC oil to vape cartridges bought in stores. The CDC is recommending people stop using vaping devices entirely until the cause can be determined.

On Friday, the New York Health Department said they had found vitamin E acetate – which has been linked to the pulmonary illness – in nearly all of the illegal vape cartridges they tested. IN New York, at least one vitamin E acetate product has been linked to each patient who fell ill. Many of the affected products in the state were based on counterfeit cannabis vape products from states with legalized sales.

In all, there have been five confirmed deaths across the U.S. related to the illness and 450 reported cases of lung illness associated with the use of vape devices.

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Federal Judge Allows Cannabis Racketeering Lawsuit to Move Forward

An Oregon U.S. District Court judge is allowing a racketeering lawsuit by a wine vineyard against a neighboring cannabis company to move forward, ruling that there is enough evidence that the vineyard suffered a financial loss due to its neighbors’ operations, the Associated Press reports.  

Momtazi Vineyard, located in Yamhill County, opposed the cannabis farm’s business license in 2017 saying that the “skunk” stench is “not acceptable in wine” and the farm would “put the vines and wine at great risk.” They sued Yamhill Natural in April claiming they had lost six tons of grapes, said Jessie Mondry, an Oregon cannabis attorney with Harris Bricken who is not involved in the case. The court had ordered the plaintiffs to show a specific loss in order to proceed. 

Mondry said that at least two other racketeering lawsuits against cannabusinesses had been filed in the state but had been dismissed. In those cases, plaintiffs argued that cannabis legalization had caused “diminished use or enjoyment” of their property or increased security costs.

“It changes the playing field in that the court has shown a pathway to bring racketeering claims against marijuana farms. I don’t know that this is going to open the floodgates. At least they know now what they need to do so survive a motion to dismiss.” — Mondry, to the AP

The defendants argue that the vineyard can not actually prove any financial losses and that the lawsuit’s primary claim — that there is a commercial grow on the property — is a lie and the grow is a small, personal, medical cannabis crop. They have asked the judge to dismiss the lawsuit on those grounds is pending.

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World’s Largest Psilocybin Research Center Launches at Johns Hopkins

Psilocybin researcher Roland Griffiths formally announced the new Center for Psychedelic and Consciousness Research at Johns Hopkins University last week, VICE reports.

According to Griffiths, it will be “completely new and more of the same,” meaning he and his research team will continue to lead investigations into the potential benefits of psychedelics like psilocybin in the treatment of many conditions such as addiction, including alcoholism and nicotine dependence; post-traumatic stress disorder; anorexia; Alzheimer’s; Lyme disease; and more. What’s new, however, is that the FDA is beginning to warm up to the idea of psychedelics having medicinal potential, despite being categorized as Schedule 1 substances with supposedly zero medicinal value.

Psilocybin, in particular, has undergone something of a political transformation over the last year. Last October, the FDA granted psilocybin “breakthrough therapy” status. Denver voters, meanwhile, opted to decriminalize the substance in May, while activists in Oregon are gearing up for a 2020 initiative that could potentially legalize the banned mushrooms for medical purposes.

“This is clearly becoming more mainstream. There are many inadequate mental-health and addiction treatments today, and we need new medications to come down the pipe. This is how it’s done. It’s a well overdue initiative.” — Mark Haden, executive director of the Multidisciplinary Association for Psychedelic Studies (MAPS) Canada, via VICE

Because of its Schedule 1 categorization, funding for psilocybin research has been historically sparse — the new Center for Psychedelic and Consciousness Research, however, is born out of $17 million worth of private donations to Johns Hopkins.

“The center’s establishment reflects a new era of research in therapeutics and the mind through studying this unique and remarkable class of pharmacological compounds,” said Griffiths in a press release. “In addition to studies on new therapeutics, [they] plan to investigate creativity and the well-being in healthy volunteers that [they] hope will open up new ways to support human thriving.”

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Just 44 Canadians Have Had Cannabis Records Expunged Since Legalization

Only 77 people have applied to have their cannabis charges expunged in Canada and just 44 have been successfully pardoned, according to a Global News report. Some 250,000 Canadians are believed to have a low-level possession charge in the nation but some were charged under a generic drug possession charge and it’s unknown whether the offense is specific to cannabis.

The government has launched a website to help people streamline the expungement process which outlines four or five steps to getting rid of a record; military veterans have the added step of obtaining their conduct sheet. Everyone who applies must also get a copy of the record, which often must be obtained in person and might be hard to find if the case is several years old. Applicants must also have their fingerprints taken and send them to Ottawa, which Toronto lawyer Caryma Sa’d said could cost “at least a couple hundred dollars.”

“Assuming their situation transpired before records are as digitized as they are now, it’s possible that a pardon could actually put them on the electronic map so when they’re crossing the border, this thing that otherwise would have been buried in the back of a file cabinet somewhere is now present, and it’s evident that there was a pardon for something, where otherwise it may not have had consequences.” – Sa’d, to Global News

Parole Board spokesperson Iulia Pescarus Popa indicated that the rest of the applications “are either under investigation” or were filed “incomplete or ineligible.” Individuals with a criminal record for other offenses are not eligible under the program. 

Canada’s federal legalization of cannabis did not include broad expungement provisions.

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