Connecticut May Approve Five New MMJ Qualifying Conditions

6/05/2019

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The Connecticut Department of Consumer Protection has approved five new conditions for the state’s medical cannabis program bringing the total to 36, the Hartford Business Journal reports. The conditions must still be approved by the legislature’s Regulations Review Committee.

On Monday, the agency approved interstitial cystitis, a chronic bladder pain syndrome, intractable neuropathic pain that is unresponsive to traditional medical treatments, medial arcuate ligament syndrome, which causes severe abdominal pain, Tourette syndrome, and vulvodynia and vulvar burning, which causes pain in female genitalia. Some of the conditions are only approved for adults, while others are approved for both adults and patients under 18-years-old.

According to the report, the DCP will consider and define chronic pain at a future meeting.

According to state statistics, there are currently 33,206 registered medical cannabis patients in the state with 1,114 recommending physicians. There are nine dispensaries serving patients and four medical cannabis producers.

“Our program relies on the advice and guidance we receive from the medical community including the board. I’m pleased with how our program has grown to support well over 30,000 patients with severe debilitating conditions in the state, all while keeping the integrity of this truly medical program in mind.” – DCP Commissioner Michelle H. Seagull, to the Business Journal

Last month, the legislature’s Finance Committee advanced a recreational cannabis bill but according to a Hartford Courant report, that bill will not be voted on in the General Assembly this session. Medical cannabis was legalized in the state in 2012 and sales began in 2014. The state has updated its medical cannabis qualifying conditions twice before, in 2016 and 2018.

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FDA Holds First-Ever CBD Hearing

6/04/2019

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During the Food and Drug Administration’s first-ever CBD hearing last week, Acting Commissioner Ned Sharpless said that while the agency has seen “an explosion of interest” in the cannabis-derived products, “there is much [they] don’t know,” PBS reports.

The hearing included speakers from the nutritional supplement industry, private citizens, medical cannabis patients, hemp businesses, and Greenwich Biosciences – the company behind FDA-approved CBD pharmaceutical Epidiolox. Alice Mead, the company’s vice president of U.S. professional relations, testified that the agency’s “approval process is the only way to answer important questions about a drug, about the disease it seeks to treat, and safety considerations that are unique to the patient who will take the drug,”

She added that, following 20 years of studying the compound, the company found evidence that the cannabinoid was “potentially toxic to the liver.”

Megan Olsen, assistant general counsel of the dietary supplement lobby the Council For Responsible Nutrition called the CBD industry “out of control” and urged the agency to act quickly.

“FDA does not have the luxury of time,” she warned regulators, according to the report.

At least one CBD proponent, Jonathan Miller, the general counsel for the Hemp Roundtable, an industry association, echoed the “urgent need for an efficient regulatory framework.” He added that the association was willing to help the FDA “establish measures of quality, safety, and transparency” for the emerging industry.

According to the report, it was clear the FDA wanted more data but Sharpless did not indicate what data the agency was seeking or when it anticipated the crafting and release of any federal CBD regulations.  

The U.S. Department of Agriculture is also working on crafting hemp rules following last year’s passage of the Farm Bill, which legalized the crop federally. To date, the USDA has released guidance for importing hemp seeds and a memo clarifying that interstate transport of hemp is legal.

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Canadian Edibles, Topicals Market Estimated At $2.7B Annually

6/04/2019

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Canada’s market for alternative cannabis products, such as edibles and topicals, could be worth about $2.7 billion a year, according to a study by consulting firm Deloitte outlined by Global News. The firm estimates edibles will drive the market — to the tune of $1.6 billion a year.

Deloitte suggests cannabis-infused drinks will comprise $529 million per year with tinctures, topicals, concentrates, and capsules representing $400 million per year in sales.

Edibles, topicals, and concentrates are currently not permitted under the nation’s legal cannabis regulations; however, regulators in the state are crafting rules for the products, eyeing an October 17 rollout. The government has proposed basing the tax rate of edibles and extracts on THC content.

Recently, a Dalhousie University study found that interest in edibles has dropped post-legalization, with 36 percent of survey respondents saying they were interested in trying edible products – down from the 46 percent pre-legalization.  

“The introduction of cannabis-infused edibles will clearly threaten the alcohol industry as consumers are using the product for similar usage occasions.” — Jennifer Lee, Retail & Consumer Analytics Practice Leader for Deloitte, via Global News

Canadian regulators released their draft rules for the alternative products last year, which include THC-per-serving caps, and other standards for packaging, additives, and delivery methods.

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New Jersey Capital

New Jersey Eyes 100-Dispensary Expansion

6/04/2019

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New Jersey Gov. Phil Murphy is proposing adding nearly 100 medical cannabis dispensaries in the state as part of his industry expansion plan after the legislature failed to pass adult-use legislation, according to an Asbury Park Press report. The plan would see a total of 108 dispensaries in the Garden State, up from just the six that are currently active and another six that are licensed but have yet to open.

The expansion is part of a broader bill — the Jake Honig Compassionate Use Medical Marijuana Act — which would make broad changes to the state’s medical cannabis program, including reducing the number of times per year patients need to see their recommending physician; increasing the amount of cannabis that patients are allowed to purchase per visit; phasing out the state sales tax on cannabis by January 1; allowing home delivery; and setting a goal of awarding 15 percent of licenses to minority business owners and 15 percent for veterans, women, and disabled people.

The measure passed both legislative chambers last month but the legislature needs to reconcile some of the amendments before it moves to the governor.

Murphy’s administration is seeking applications for up to 24 cultivators, 30 manufacturers and 54 dispensaries with 38 in northern New Jersey, 38 in the state’s central region, and 32 in the southern part of the state, according to the report.

“It will mean an enormous difference for patients. We have a demand-supply imbalance.” — Gov. Murphy to the Asbury Park Press

The administration has previously expanded the state’s medical cannabis qualifying conditions list and the legislature is considering a bill to expunge low-level cannabis convictions. Senate President Stephen Sweeny, the governor’s Democratic colleague, indicated that the state could put the recreational legalization issue to voters in 2020 after the reforms stalled out in the legislature.

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Sunday Scaries CBD Products Review

6/03/2019

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Sunday Scaries is an all American CBD company that strives to help professionals, students, and literally anyone else overcome the weekly dread of returning to work, school, or whatever other responsibilities Monday can bring. A care package for our review team recently came in from Sunday Scaries sharing some of their top sellers.

The Sunday Scaries CBD Gummies are an all-around very enjoyable experience: not too sweet but still chewy and delicious. Likewise, the gelatin-free Sunday Scaries Vegan AF Sour Gummies live up to their name (great news for any sour candy-lovers out there! And for vegans, obviously) and they match the default gummies in appealing flavor, texture, and consistency. Notably, the default CBD gummies come in the classic gummy bear design while the vegan sour gummies are shaped like gumdrops, so if you get a combo of both products you can easily tell them apart without having to taste them.

I used the gummies as their namesake recommended, starting on a sunny Sunday morning before having to return to work the next day — and continued to scarf the gummies on repeat throughout the rest of the week until they were all gone.

Each of Sunday Scaries’ gummies contain 10 mg of CBD, which was perfect for dosing as you could easily limit yourself to just one or two to start with but if ever you felt particularly anxious about an upcoming project (or if you were just hungry!) you could just as easily chow down four or five for a stronger dose.

We also received a sample product of the Scary Sundays CBD Tincture and, since I’m not typically much of a sweet tooth, this product had excited me the most. It did not disappoint!

The tincture is slightly sweet tasting but is an otherwise completely unobtrusive, herbal concoction. If you would prefer to not taste the herbal sweetness, however, or if you are averse to the tincture’s slightly oily consistency, the tincture works wonderfully as an addition to another beverage such as fruit juice, a smoothie, or milkshake. The flavor is definitely not at all overpowering and blends nicely with pretty much anything.

For myself, however, I followed the recommended instructions of letting the tincture dissolve under your tongue for ten seconds before swallowing. Easy-peasy, and deliciously chill. The tincture’s effect itself was completely laid back — not much more can be said about it, but I’m certainly going to appreciate having the bottle lying around for the next few weeks.

Each dropper full of the tincture contains three doses of 10 mg of CBD, making it quite easy to measure out exactly the right dosage of CBD.

Lastly (but certainly not least), all of the Sunday Scaries CBD products are made from industrial hemp grown legally by U.S. farmers under the 2018 Farm Bill, meaning all the hemp was grown in accordance to rules set out by the states’ Agriculture Departments. The hemp has also been lab-tested to show it’s completely devoid of THC, so you don’t need to worry about experiencing any unwanted psychoactive effects or accidentally failing a drug screening in the near future.

All in all, I’d call the Sunday Scaries CBD experience a great option for CBD beginners and experts alike. Depending on your mood or planned activity — from business conference calls, group brainstorming sessions at the office, or a long backpacking trip to the mountains — you can guarantee yourself a little more chill with some Sunday Scaries.

If you’re interested, visit SundayScaries.com and see how they can help chill you out. There’s even a discount thrown in for Ganjapreneur readers: enter “ganja10” at checkout to save 10 percent!

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Idaho Police to Continue Confiscating Hemp Shipments

6/03/2019

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Last week, the U.S. Department of Agriculture released a memo explicitly allowing interstate transportation of legally cultivated industrial hemp products; however, the Idaho State Police told the Associated Press that it will continue to confiscate the products and arrest drivers if they are found in the state.

While the May 28 USDA memo is not legally binding, the agency says the 2018 Farm Bill removed industrial hemp from the federal Controlled Substances Act and, while the agency doesn’t expect to issue rules for hemp until later this year, transportation of the products is lawful.

An Idaho State Police spokesperson told the AP that the federal rules need to be updated before they will change their policies.

“It is important to recognize that the 2018 Farm Bill preserves the authority of States and Indian tribes to enact and enforce laws regulating the production (eic) of hemp that are more stringent than federal law. Thus, while a State or Indian tribe cannot block the shipment of hemp through the State or Tribal territory, it may continue to enforce State or Tribal laws prohibiting the growing of hemp in that State or Tribal Territory.” — May 28 USDA Executive Summary of New Hemp Authorities

In March, the Idaho House approved an industrial hemp bill but it has not been voted on by the Senate.

At least three men have been arrested in Ada County for transporting hemp in the state. According to the report, two of them have pleaded guilty to lesser felony charges. The third, Denis Palamarchuck, has pleaded not guilty and the company he works for, Big Sky Scientific, have sued Idaho State Police in federal court. That arrest happened prior to the federal law changes but the USDA memo points out that interstate hemp transportation was also permitted under the 2014 Farm Bill. Big Sky argues that the police violated interstate commerce laws and asked for an injunction to get their product back before it’s no longer viable.

The USDA memo says the federal court erred in denying that injunction, which is currently awaiting a hearing in the 9th Circuit Court of Appeals.

Elijah Watkins, a lawyer for Big Sky, told the Ap that the USDA opinion was “welcomed news.”

“Hopefully Idaho takes note and changes course because I think it would save the Idaho taxpayer a lot of dollars on fighting a legal opinion or a legal case that seems all but conclusive at this point,” Watkins said in the report.

Republican Gov. Brad Little has indicated he would sign the hemp legalization legislation if it included amendments sought by law enforcement officials.

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Arkansas Medical Cannabis Sales Top 100 Pounds In First Month

6/03/2019

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Arkansas’ only two functioning medical cannabis dispensaries have sold more than 100 pounds of cannabis since legal sales commenced on May 10, according to Department of Finance and Administration data outlined by the Arkansas Democrat-Gazette.

Doctor’s Orders RX, the Garland County-based dispensary that made the state’s first legal sale on May 10, has sold 37.74 pounds of medical cannabis through 3,408 transactions as of May 31. Green Springs Medical, in Hot Springs, sold 70.09 pounds of medical cannabis over 6,533 transactions from its May 12 opening to May 31.

Both dispensaries are currently getting their products from Bold Team’s Cotton Plant facility as the other four licensed cultivators are still working to get their products ready. According to the report, both dispensaries are charging about $15 per gram.

A spokesman for Doctor’s Orders told the Democrat-Gazette that Natural State Medicinals is expected to bring its strains to market soon.

“Our goal is to provide the highest medical-grade cannabis with purity and consistency that our patients can trust. We are looking forward to our partnerships with other dispensaries opening soon and putting our product in the hands of people who need and rely on it for a number of medical issues.” — Joseph Courtright, chairman for Natural State Medicinals, via Arkansas Business

Two more dispensaries, Clinton-based Arkansas Natural Food products and Greenlight Dispensary in Helena-West, are expected to open later this month.

The state law — a constitutional amendment approved by voters in 2016 — allows patients to purchase up to 2.5 ounces every 14 days.

Officials at the Department of Finance and Administration said the dispensaries’ first monthly sales reports are due this month. 

 

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Ontario Inn Is First to List on Cannabis Tourism Website

6/03/2019

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Canada’s Sir Sam’s Inn and Spa has received a ‘cannabis-friendly’ designation by Cannabis Hotels making it the first in the nation to give cannabis-users the green light, the Toronto Sun reports. The adults-only resort is about 2-and-a-half hours north of Toronto, Ontario.

Jon Massey, the inn’s business development director, told the Sun that the company wasn’t seeking “to become a signature pot smoking hotel,” rather to acknowledge the legality of cannabis.

“Really, it’s a natural progression,” he said of the inn’s inclusion on Cannabis Hotels, a cannabis tourism resource. “We thought it was a unique opportunity. It was simply finding a way to say ‘yes.’”

Wendy Forwell, CEO and founder of Cannabis Hotels, told the Sun that Sir Sam’s is “more of an experience resort” and “boutique hotel” which gives them more autonomy to allow cannabis use on their property.

“(Many hotel owners are) waiting to see what others do. It’s still very early days so they’re all holding back a little bit. Sir Sam’s is fully embracing this.” – Forwell, to the Sun

The Ontario Restaurant Hotel and Motel Association’s website states that cannabis smoking or vaping is only permitted for registered guests, and their guests, in designated smoking rooms that align with the Smoke-Free Ontario Act. Many Canadian indoor hotels and motels no longer allow smoking or have smoking rooms; however, Sir Sam’s — a 25-room resort — is located on the shores of Eagle Lake, making it remote with plenty of outdoor space.

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Illinois Lawmakers Approve Adult-Use Legalization

5/31/2019

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The Illinois House of Representatives has approved the Senate’s legalization bill, sending the plan to the governor’s desk and putting Illinois just one likely signature away from becoming the 11th state to legalize adult-use cannabis, The Chicago Tribune reports.

Gov. J.B. Pritzker — who focused on cannabis legalization as a major part of his election campaign last year — has already promised to sign the legislation.

“The state of Illinois just made history, legalizing adult-use cannabis with the most equity-centric approach in the nation. This will have a transformational impact on our state, creating opportunity in the communities that need it most and giving so many a second chance. … In the interest of equity and criminal justice reform, I look forward to signing this monumental legislation.” — Gov. J.B. Pritzker, in a series of tweets

The bill will take effect on January 1, 2020 and will allow adult Illinois residents who are 21 or older to possess up to 30 grams of cannabis flower, five grams of cannabis concentrate, and 500 milligrams of THC in an infused product, such as an edible or tincture. Nonresident visitors to Illinois, however, will only be allowed to possess 15 grams.

The bill establishes a taxed and regulated plan for a cannabis marketplace that includes licenses for cannabis cultivators and dispensaries. Home grow, however, is not allowed under the plan except for registered medical cannabis patients.

The bill also creates a system for the expungement of prior cannabis convictions.

“Prohibition hasn’t built communities. In fact, it has destroyed them,” said Rep. Kelly Cassidy (D-Chicago), one of the bill’s co-sponsors. “It is time to hit the reset button on the war on drugs.”

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Federal Court: DEA Must Reconsider Cannabis Schedule

5/31/2019

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Last year the Southern District Court of New York threw out a lawsuit challenging the constitutionality of the Schedule I classification of cannabis on the grounds that the plaintiffs had not exhausted the administrative remedies – a petition process through the Drug Enforcement Agency – before filing their suit. However, yesterday a federal appeals court decided that, while they agree with the lower court’s assessment, they will keep the case open so that it can take action against the Drug Enforcement Administration if it fails to change the legal status of cannabis in a reasonable amount of time, Marijuana Moment reports.

“It is conceivable that, in response to a petition from Plaintiffs along the lines advanced before us now, the DEA would reschedule marijuana, rendering the current case moot. And if the DEA did not, the administrative process would generate a comprehensive record that would aid in eventual judicial review.” – U.S. Circuit Court Judge Guido Calabresi, in the majority opinion for the U.S. Court of Appeals for the Second Circuit

In the opinion, Calabresi said the panel was “troubled” by DEA’s “history of dilatory proceedings.”

“Accordingly, while we concur with the District Court’s ruling, we do not dismiss the case, but rather hold it in abeyance and retain jurisdiction in this panel to take whatever action might become appropriate if the DEA does not act with adequate dispatch,” the opinion says.

The judges called the case “unusual” because the plaintiffs – who are predominately medical cannabis patients – “plausibly allege that the current scheduling of marijuana poses a serious, life‐or‐death threat to their health.”

“Taking the facts as alleged, and, accordingly, taking the supposed benefits some Plaintiffs have experienced from marijuana as true as well, we—like the District Court below—are struck by the transformative effects this drug has assertedly had on some Plaintiffs’ lives,” Calabresi said. “As a result, we are troubled by the uncertainty under which Plaintiffs must currently live.”

Michael Hiller of Hiller, PC, the lead counsel for the plaintiffs, said via Twitter that it’s “the first time in history that a lawsuit challenging the constitutionality of the [Controlled Substances Act] has survived dismissal.”

Joseph A. Bondy, an attorney who has worked pro bono on the case, told Marijuana Moment that he and his team will be working to draft a petition for DEA to take action on cannabis scheduling and, while the court didn’t give DEA a timeline for acting, Bondy said 180 days seemed reasonable. Previously, petitions of similar nature have taken an average of nine years to go through the process, and none have been successful.

If DEA fails to comply, Bondy indicated the court could take action including “compelling them to act” or issuing a writ of mandamus – which would sanction the agency.

The court wrote that while it does not “intend to retain jurisdiction indefinitely,” the plaintiffs may return to the court for relief.

“To be clear, we repeat that this case remains in our purview only to the extent that the agency does not respond to Plaintiffs with adequate, if deliberate, speed,” the opinion states. “In other words, we retain jurisdiction exclusively for the purpose of inducing the agency to act promptly.”

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Colorado Gov. Signs Cannabis Lounge & Delivery Bills

5/31/2019

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Gov. Jared Polis (D) of Colorado on Wednesday signed into law two new cannabis bills that will change the face of the industry: one establishes cannabis delivery regulations for the state, the other legalizes commercial cannabis tasting rooms and bring-your-own-cannabis establishments, The Denver Post reports.

Gov. Polis was praised by cannabis advocates for signing the bills; his predecessor, Gov. John Hickenlooper (D), vetoed similar legislation for cannabis tasting rooms — and two other cannabis bills — last year.

“Lawmakers’ approval and the governor’s enthusiasm for signing them into law indicate the state is ready to move forward with fulfilling Amendment 64’s promise to regulate marijuana like alcohol.” — Jordan Wellington of VS Strategies, a Denver cannabis lobbying firm, via The Denver Post

Options for home delivery and the social-use lounges could start appearing throughout the state in January 2020. Both of the new laws, however, will only apply to jurisdictions who opt-in for the changes, and some localities — like the conservative-leaning Colorado Springs — lobbied hard for the ability to opt-out of the new cannabis regulations.

“It’s not just a matter of convenience, but also access for patients, and parents who can’t bring their kids to a shop,” Wellington, who helped craft the legislation, told Westword last month. “I think for cannabis consumers, it’s a step toward equal treatment under the law.”

 

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DEA’s Media Contracts Allow it to Control Narratives

5/31/2019

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As cannabis has become legalized medically and recreationally throughout the U.S., the Drug Enforcement Administration (DEA) is requiring interviews by its personnel to be approved in advance by the agency’s head of congressional and public affairs in an effort to control the narrative, according to a Mint Press News report.

The policy is part of a larger media effort by the agency to control how it’s represented in documentaries, reality shows, and dramas, according to more than 200 documents obtained by Mint Press News through a Freedom of Information Act request. The publication found that DEA supported dozens of media projects, including “Cops and Coyotes,” “Drugs, Inc.,” “Gangsters: America’s Most Evil,” “Lethal Cargo,” “The Notorious Mr. Bout,” “Pure,” and “Declassified: Untold Stories of American Spies.”

Some of those shows include real-time filming of the agency at work but producers are required to give on-scene DEA supervisors “the final say in approving any filming during real-time law enforcement operations,” according to the documents outlined by Mint Press. Senior DEA officials have control over the final edit and the agency has the right to “modify, delete or otherwise change” what ends up being aired in order for the agency to be depicted in a positive light.

The agency also requires that all materials provided by DEA be destroyed as soon as the film or TV show is broadcast and that producers provide them with a non-exclusive license copy of the work for “recruiting, training, professional development, community relations, or demand reduction efforts.”

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Zimbabwe Approves First MMJ Grow Site

5/31/2019

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Zimbabwe officials have approved the nation’s first legal cannabis farm – a 10-hectare cultivation site at a prison, the Independent reports. The license was granted to Ivory Medical nearly a year after the government legalized cannabis cultivation for medical and scientific purposes.

The prison was chosen as a grow site because of its high security and Ivory is reportedly planning to expand the site by an additional 80 hectares. The company is leasing the space from the government. The company is partnering with the Ministry of Health and Child Welfare on the project – which is partly funded by NSK Holdings & International Investors – and Portuguese firm Symtomax, who will provide technical and farming techniques, according to a Caj News report.

Ivory plans to produce extracts from the plants for both domestic and export purposes. Zimbabwe officials expect the nation will see $7 billion by 2023 from cannabis export sales, according to the Caj News report.

Under the 2018 law, cannabis cultivators in Zimbabwe are subject to a $10,000 application fee and can only import and export products out of the Robert Mugabe International Airport. Zimbabwe is the second African nation to legalize cannabis for medical use, following Lesotho, along with South Africa.

Last year, Zimbabwe officials stalled the licensing process after the government received more than 350 applications that offered wildly different estimates with regard to how much money could be made on how much land.

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Peter Vogel: Connecting Cannabis Entrepreneurs and Investors

5/30/2019

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Peter Vogel is the CEO of Leafwire, a cannabis business-focused social media platform known commonly as “the LinkedIn of cannabis.”

Peter recently joined our podcast host TG Branfalt to talk about what separates Leafwire from other social media platforms, the importance of networking in the cannabis industry, how software and technology play an important role in the industry’s success, and more!

Check out this week’s Ganjapreneur.com podcast episode via the player below or scroll further down to read a full transcript of the interview.

Listen to the podcast:

Read the transcript:

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TG Branfalt: Hey, there. I’m your host TG Branfalt. You are 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 Peter Vogel. He’s the founder of Leafwire. He has nearly 20 or more than 20 years of tech industry experience. Leafwire, the LinkedIn of cannabis, is a social network aiming to link cannabusinesses with investors. How’re you doing this afternoon, Peter?

Peter Vogel: Doing great. Thanks for having me on.

TG Branfalt: Delighted to have you on, a lot to discuss. You’re a tech guy, so that’s always a great conversation to have. Before we get into that, tell me about yourself, man. How’d you end up in the cannabis space?

Peter Vogel: As you had said, I’ve been in the tech startup space for 20 years plus, so founded a variety of different online advertising, marketing and loyalty-type programs online. About a decade ago, I was CEO of a company called Plink, P-L-I-N-K, which was a Facebook credits loyalty program, which if you remember FarmVille and all those crazy games, we were basically giving social gamers the currency to play the games more, and ran that company for a while. While I was CEO of that company, I got to be buddies with Marion Mariathasan who is now CEO of Simplifya, a compliance company here in Denver. We got to be good friends and have been networking ever since. About a year and a half ago, we had a lunch, and he told me how he had transitioned into cannabis and how Simplifya was blowing it up. They raised a bunch of rounds and are scaling really big right now. Told me about Leafwire. Said they needed someone to run it and convinced me to jump in head first.

TG Branfalt: Tell me about Leafwire and what convinced you to jump in head first.

Peter Vogel: Well, one, the cannabis industry was very exciting to be in in the sense that, obviously, it still is, but a year and a half ago it was even a little more immature than it is now. Colorado, being one of the mature markets, but still, nationwide or worldwide it’s really an industry in its infancy. I saw an opportunity similar to what I saw in technology 25 years ago that there were very few companies that were mature or that had a lot of experience or growth yet that I just saw an industry that was ready to just blow up. It seemed like the place where I wanted to be five years from now, the cannabis industry is where I wanted to be firmly established versus the same kind of tech industry I’d been in for decades. So one, I saw it as a huge opportunity just because of the stage of the industry.

Two, I love the idea of Leafwire. Initially, we really talked about Leafwire more like an AngelList, connecting investors to cannabis, so we were connecting accredited investors to cannabis companies. We still are doing that, but it’s evolved a lot. As we’ve grown, we keep having more and more cannabis business people joining the platform, telling us what they’re looking for whether it’s jobs, business partners, advice, resources, news. They want to know about events. We realized there’s this huge need to be a business platform for everyone not just investors in cannabis. So that’s really what excited me is the demand that I saw that a solution like this was needed and there was nothing out there like it.

TG Branfalt: How many people are currently using the platform, and what are they doing on it? I mean you mentioned a lot of different things. What’s pushing its growth right now?

Peter Vogel: Some of those things I mentioned exist now, and some we’re in the process of building based on demand. But where we are in terms of members, just this month we’re crossing actually 10,000 members, and those are 10,000 members that are either cannabis professionals or investors. It tends to be about 90/10, so 90% cannabis professionals and then 10% accredited investors. These are all cannabis business people. These are not your typical consumers or stoners. These are people who work in the industry everything from law firms to dispensaries to grow facilities to advertising companies, but it’s all people. It’s all business. It’s 100% devoted to the business of cannabis. There are some other social networks that are more focused on consumers. We’ve tried very hard to stay away from that and be 100% focused on the business side of cannabis.

TG Branfalt: What are people doing most often right now? With everything now you have going on, what’s the more popular purpose?

Peter Vogel: For right now, our platform is really I would call it around news, awareness, and connection. So right now what we have is it’s very similar to a LinkedIn-type platform. You can come on, join, create a professional profile, which means you put your picture up, you put your professional experience, the city you’re in. You could put up your past jobs. You could put up a variety of other things. You could essentially put up as much or as little as you want. Some people create profiles. They can create a profile for their company as well, just like on LinkedIn. Then we have a newsfeed that’s their homepage. The newsfeed is 100% user generated, so our members post articles. They post open jobs. They promote events. A lot of people promote their own companies. People ask questions. There’s a lot of people that just post comments that they’re in Michigan. They just opened up a store and they’re super excited to be in the industry, and they want to know if anyone else is on the platform from Michigan. So it’s a big combination of just business people communicating, sharing news, promoting things, asking for help.

We also have the ability for people to like posts. You can comment on posts. We do get people who have an ongoing communication where they’re communicating about a certain topic. You can also connect with people. So in the top right corner of this site, we have a recommended connections module. That based on an algorithm of who we think you maybe interested in meeting and connecting with, you can hit the connect button, and that individual will get a message email to them saying, “John from The Green Solution wants to connect with you.” That person can accept the connection. Once people are connected, they can send messages back and forth on the platform. So that, right now, is what people are doing on a day-to-day basis. I can jump into, if you want, some of the other things we’re building as well.

TG Branfalt: Yeah, absolutely.

Peter Vogel: Sure. All this is based on demand. We get emails from people all day long asking for XYZ or suggesting we do something. One of them is jobs. Obviously, lots of people in cannabis are looking for jobs. Lots of companies are looking to hire people in cannabis. I always say that getting a job in cannabis is not something that happens by accident. You don’t just all of a sudden start working for a cannabis company. You go look for a job in the industry, and vice versa. If you’re a company, you are trying to find someone who actively wants to work in the cannabis industry not just any random person on a job platform. So we think once we launch this, the nichey aspect of the industry will be a big driver of people wanting to use our platform. It’s 100% safe for cannabis and hemp, and everyone on there is 100% focused on cannabis and hemp, so it makes a ton of sense to have jobs there.

We’re also launching a groups section. Just like LinkedIn has groups where people who want to talk about, say, “How do you advertise on Google with a cannabis company?” we’ll have a group where people can go on and talk, and there’ll be an ongoing thread where people can share information. Then there’s always information there that people can go access, and we can just act as a resource for people.

We’ll also be adding what we call marketplace. It’s kind of a Yellow Pages-type listing. We’re also adding that because of demand. We have people email us every day and ask if we know a lawyer who knows cannabis law in California or if we know an accountant who understands 280E. Multiple times a day people ask us about if we know banks or payment processors who will work with cannabis companies or CBD companies or even just ancillary companies. Even people that don’t touch the plant often have trouble getting companies to accept payments. Because people keep asking for that, we realized we need to have a static place where we can let companies post their offerings, and then other people can go find them. They can go search for what they need, and we can help them connect. All these things that I just mentioned, they’re all around connecting, helping each other and sharing information, and just providing people a platform to connect in whatever way they want whether it’s employment, business partners, or investment. We’re also all about connecting investors to cannabis companies who are fundraising.

TG Branfalt: This whole thing is being built in real time based on feedback. There’s got to be some learning curve there. What’s that been like from the time you’ve taken over until now?

Peter Vogel: I mean there’s definitely a learning curve. We’ve learned things about the user flow and how users are doing things. Some of the things we initially put up were clunky and didn’t work that well, and we found out really fast. Our users told us, “This is confusing. How do I create my company? This doesn’t make any sense.” Or this feature of messaging… For example, we had something up on messaging where anytime you hit return, it would send the message automatically. It was kind of an annoying thing that a lot of people complained about, so we actually just fixed that. I think that’s going to be live tomorrow or the next day. We’re slowly adding in features people want, and then we’re also learning some of the things that people don’t want, or don’t find user friendly we’re fixing, so there is definitely a learning curve. I don’t think that’ll change. I mean the industry’s growing so fast. I think we’re going to keep adapting as we go.

TG Branfalt: What about for you personally? What’s been the learning curve for you entering the space, and how have you adapted in your tenure thus far?

Peter Vogel: It’s been now about a year and a half. I’ll say one of the things that I’ve been pleasantly shocked by is how open and friendly everyone has been in terms of… I’ve done a lot of networking. Almost anyone I’ve reached out to to have lunch, have a phone call with, even CEOs of pretty successful companies, they’re all willing to talk. They’re all willing to answer questions. I think that’s kind of unique in cannabis where everyone still feels like they’re in this together. I think it was just a sense of there were so many years when people had to fight and band together just to get laws passed. Then once they passed, everyone had to work together just to figure out how to implement them. It was very confusing, and no one knew what to do or how it really worked. Everyone’s had to work together for so long; I think there’s still a really amazing sense of camaraderie in the industry. In general, people are much more open and helpful than almost any other industry I’ve been a part of.

TG Branfalt: One of the taglines on your site talks about this community building. It says that you want to help reduce the stigma for industry operators. While that does exist, I teach at a college and there’s definitely a cannabias in the discussions that we’re allowed to have, and I study the media and there’s definitely a cannabias there. How can your website, a specialty website, help reduce the stigma for industry operators?

Peter Vogel: I think that one thing we do is we provide a platform where that stigma doesn’t exist. So we provide a platform where people come on. You mentioned media advertising. Lots of platforms will sensor you. YouTube cancels video channels. Facebook cancels groups. It shuts down pages. We provide a platform where no one has to be afraid that’s going to happen to anything that they’re doing on the platform. They don’t have to be worried about announcing a new product line, a new opening.

I’ve had people tell me… I use LinkedIn every day, so I’m not negative towards LinkedIn. For me, I have a lot of connections I use every day. I post articles daily, just like I do on Leafwire, so I love using LinkedIn also. But a lot of people out there don’t want to necessarily be loud and proud on LinkedIn because they know they live in a state where maybe it’s not legal. They know half their family doesn’t approve. They know half the people they worked at their last banking job will look down on them or think strangely of them if they’re working at a cannabis company. Not everyone wants to go onto LinkedIn and say, “We just launched our third vape pen. Come check it out.” It’s kind of a weird…

There’s just so much on LinkedIn other than cannabis; it’s hard for people to be 100% open about what they’re doing. So one of the ways that we do help remove that stigma is just provide that safe community, that safe platform where people know they can hire people. They can promote events. They can just share news, and they can ask for help with whatever they need and not be judged or worried that they’re in a place where there’s millions of people who will look down on them for that.

TG Branfalt: Now, I don’t use LinkedIn personally. I haven’t since college when I was actually required to as a part of a class. I’m not really social media guy. Have they taken the steps that… You mentioned Facebook who does shut down groups but has recently said that they would be open to cannabusinesses advertising on their platform in legal states. Does LinkedIn have this cannabias that’s built in to some of the other more popular social networks?

Peter Vogel: Not as much. LinkedIn doesn’t do very much censoring. The cannabias that exists is not necessarily from LinkedIn. I think it’s more from the fact that society in general and the number of states where it’s not legal are still not necessarily open to cannabis. So it’s not LinkedIn as a company. I think that makes it a platform that’s not 100% open to cannabis. It’s really more the fact that societal norms are not 100% open to it. I don’t think that’ll even change even when things go 100% federally legal, say, in two or three years. We’re still going to have a condition where I think it’s going to be state by state. States are going legal with recreational or medical. That’s going to be slowed to adopt and slow to happen, so there’s still going to be the same X percent of the public who is not necessarily really approving of cannabis industry and cannabis businesses. So I don’t think that’s going to go away just because things are legal. I think that’s going to be another five or 10 years to get rid of that stigma and bias in general.

TG Branfalt: When it comes to Leafwire and your user population, are you seeing more growers and dispensaries, people who touch the plant, or are you seeing more ancillary businesses?

Peter Vogel: I’m pretty sure what we’ve been seeing pretty consistently is more ancillary businesses than plant-touching. I think that’s very simply a matter of numbers. I’ve been told there are probably… I don’t know what the numbers are this month, but I think there’s around 35,000 to 40,000 licenses in the US. You may have a better number than I do but somewhere in that ballpark. Let’s say 40,000, and those are licensed companies. They’re licensed by the state to either grow, transport, process, or sell in retail. The typical person outside the industry, if you say, “Cannabis company,” that’s what they think of. It’s someone that’s on a farm. It’s someone that’s in a dispensary, or it’s someone that’s extracting the oil.

TG Branfalt: Making candy.

Peter Vogel: Yeah, exactly. So that’s what almost everyone thinks cannabis companies are. There’s actually not a really solid list of these, but there’s probably three to four times as many ancillary companies that are depended upon the cannabis industry than there are plant-touching. So if there’s 40,000, there’s probably 120,000 to 160,000 ancillary companies out there. Those are everyone from security, lighting, fertilizer, PR companies, legal, accounting, real estate. I mean it’s a huge list.

What I usually tell people is think about if you’re a company like a store, you depend on 20 different companies to provide you with services. You depend on your POS system, maybe a loyalty program, maybe a compliance company, maybe HR, maybe advertising, maybe development, a creative company, someone to design your stores, someone to guard your store. So every single one of those companies probably has 15 to 20 service providers they rely on, and so it makes sense. There’s bound to be more of those companies than there are the licensed ones. Simply because of the numbers that there’s three to four times as many ancillary, we do see more ancillary than we do licensed companies, but I think that’s just the nature of the industry. That’s just the reality of what’s out there.

TG Branfalt: You had mentioned quite a variety of ancillary businesses that work with the cannabis industry. One of them I never really even thought of. You need somebody to design the store. Is there any other examples like that that stick out to you? That businesses don’t initially think, “Oh, yeah, we need this person,” that you’re seeing on the site people finding out, “Oh, we need this person.” Whereas they might not have thought about it initially, and then Leafwire helps them find that person.

Peter Vogel: That’s part of the site I talked about called marketplace, which is like Yellow Page listings. I think a lot of people don’t necessarily realize how important PR is in cannabis. Because advertising is so tough on Facebook and Google and some of these other places, PR’s a really big deal. There’s a bunch of companies out there that are really great, and we’ve worked with a bunch of different ones: Nison PR, Rosie Mattio, Powerplant. There’s a lot of these. There’s probably a dozen or more of these PR companies. AxisWire is another one that does PR. Most people don’t necessarily think about it immediately, but if you’re running a brand, it’s pretty important.

Another big part of the industry that people may not ever really think about is packaging. Packaging requirements are really stringent, and there’s a lot of companies that focus on eco-packaging. The biggest one, KushCo, that went public and then there’s companies like Sana Packaging and CRATIV Packaging. You go and buy your cannabis; you don’t necessarily think about what it’s in, but someone’s got to make that, and someone’s got to get it to the people who are processing the cannabis. So it’s all those parts around that people don’t think about.

TG Branfalt: And packaging’s a very highly regulated part of most cannabis programs, so it adds a whole other layer on. You’ve been in the tech industry for more than 20 years. Anytime I have conversations with somebody in the tech industry, I always tell them the same thing. When I talk to a lot of entrepreneurs entering the space, a lot of them make that comparison between the tech industry in the ’90s and the cannabis industry now. Can you compare those two being somebody who’s worked in both in those timeframes where they are really getting the ball rolling?

Peter Vogel: Yeah, for sure. I would describe it as a very similar level of excitement. Leafwire is a company… We’ve hosted a bunch pitch contests, like Shark Tank-type events. We did seven last year from Miami to LA to Denver to San Francisco all the way up to Vancouver. I can tell you that every single one of them we had a bunch of companies, a bunch of judges, 100 to 200 people, and the vibe in all of those people were so excited and jazzed to learn about new companies and to be there and meet each other and talk. The energy is really great right now in the sense of people being excited about growing businesses. That’s how it was back in the beginning of the tech boom.

The big difference, though, is the regulatory environment. Tech did not have that at all really. In tech, it was off to the races. Anyone could do anything they wanted. Whereas here, it can only grow state by state as governments pass laws, and even the things you can do in certain states whether… There are certain states that have medical, but you can only prescribe cannabis for one type of seizure disorder. It’s so limited. It’s almost impossible for companies to exist with such limitations. So the huge difference, I think, is the growth is a little bit slower and controlled, which is not necessarily an awful thing. Because everyone knows in the tech days, companies like pets.com and things like that would go spend $100 million on your Super Bowl ad. They blew everyone’s money, and half the companies went under in a year or two.

One thing I think the slower roll out is doing is it’s helping that slow down a little bit. I mean obviously in Canada right now we still have huge hype and a lot of people think that public companies are overvalued up there — depends who you ask — but you’re still seeing that a little bit in Canada. But in the US, it’s definitely more controlled and regulated. I’d say that’s the biggest difference between tech in the ’90s and cannabis now is just the regulatory environment has slowed things down a bit.

TG Branfalt: While we’re talking about tech, you’re a platform that connects people, but you also bill yourself as a social network. This is sort of broad, but what role do social networks have in protecting data? Are you being extra cautious since you’re dealing with cannabusinesses who operate in a highly regulatory environment and a lot of them operate with extreme caution?

Peter Vogel: Yeah, 100%. We do 100% respect that people’s data is private. It’s their own data. We don’t sell anyone’s data. We don’t give out any information about any members, any companies. The only we do is we communicate with our own members via email, but we never let anyone else have any data about any of our members, and we’re careful. We use top of the line, like Amazon Web Services and a bunch of other products that are designed to safeguard people’s data. So we’re 100% aware of all the stuff that’s going on especially that Facebook has done and other companies. We are not running our business model to have that be a part of anything we do.

TG Branfalt: How are you guys handling advertisements? You had mentioned it’s very hard to advertise, and very cannabis-centric sites such as yours, obviously, are going to allow these advertisements. Do you guys have any regulatory stuff that you have deal with? How are you handling advertisements?

Peter Vogel: We don’t. We’re allowed to post… I mean we’re our own platform. We don’t have rules about cannabis. We don’t ever post anything about selling directly to the consumer. We post things about brands. We post things about ancillary companies. We post things about services and advertisements, whatnot. We don’t ever, obviously, sell anything directly on our platform or promote the direct sale from one individual to another.

TG Branfalt: Interesting.

Peter Vogel: I mean we only work with established licensed companies who are advertising legitimate services.

TG Branfalt: I noticed some things from Cody who linked us up who does the editing on these podcasts. When he mentioned you, he was telling me that you had some CBD investments. You want to talk to me about those?

Peter Vogel: I’m a big believer in the industry in general, but recently I’ve gotten involved with some CBD companies. There’s some CBD companies here in Denver that have a physical location called Canvas Organics. I was approached by some people who wanted to open some more stores, so some friends and myself decided to be a part of it. We’re not operational in any sense. We’re just investors, but we are big supporters. We’re opening a couple actual physical stores, one over in Belmar and one in RiNo. They’re going to be called Canvas Organics. They’re run by this group of people out of New Mexico. They have a bunch of stores in New Mexico as well.

I really believe that just like you have gourmet pet food stores… I know CBD’s is going to be sold in CVS and Walgreens and all over the place. The fact is, though, there’s a lot of people out there who are very interested in CBD. They want to know how it works, what the different applications are, or how much they should take, what are recommended products, and they want to talk to someone educated. I believe that in a small, boutiquey-like store, you can have a much better experience than at Walgreens. That you’re not necessarily going to have every employee in there who’s actually trained to educate people.

Just like a pet food store, you can buy pet food on Amazon or on Chewy, which they just bought. You can go to a huge pet food store, or you can buy it at Walmart. But in almost every nice neighborhood, you still see a nice gourmet pet food store because people who love their pets, they care about them, they want to go ask questions. They want to get unique products. They want to get quality products, and they want to talk with somebody who’s knowledgeable. I believe for CBD that’s the future. Even though you will be able to buy it everywhere, people are going to want to go to stores that have 30 varieties and have the highest quality products and that have the most educated people who are working in the store that can help them.

TG Branfalt: So you bring up pet food store. I have a two-year-old Boxador. I’ve been giving him CBD since he was a tiny pupper. Still to this day, I give him not much. I’ve done a bit of research. I’ve talked to a few people. Had a conversation with my vet, with the person who runs the doggie daycare, and I’ve interviewed people who make CBD products for pets. What’s your take on CBD for pets? You like CBD. Obviously, you like animals, which we’ll get into that a little more in a minute. What’s your take on CBD for animals?

Peter Vogel: Well, so I have a dog who’s about five and who has some achy joints and aches and pains once in a while, and we’ve been giving our dog CBD for the last almost two years I think now. I take CBD every day. We buy a certain kind for pets. It’s essentially the same thing. They occasionally flavor it. Depending on your dog, some dogs don’t care. Some dogs will eat anything. They don’t care. I’m sure if you have a dog, you know.

TG Branfalt: Yes.

Peter Vogel: They flavor some of these. They flavor with them with bacon or salmon or something so they taste good to dogs. Mostly the only difference is it’s the amount of milligrams. If you know what you’re doing, you could give your… It’s CBD is CBD. You could give your dog any type of CBD as long as you give him the right milligrams and see. Obviously, they weigh a lot less than a human, so you give them less. We actually do buy the ones for pet. My wife likes to buy that. I think it’s a flavored kind, so we get that one. Theoretically, one, I think it works for pets. I’ve seen it work, so I believe in it. You can really give any kind. You just have to monitor. You could up online or look on… There’s a lot of resources. You can find out the appropriate dosage for the weight of the dog. That’s really the most important thing.

TG Branfalt: You said that your dog has achy joints. Have you noticed a significant difference?

Peter Vogel: Definitely. We once had her diagnosed as an early onset arthritis for dogs, so it’s just a little bit of aches and pains in the joints at an early age. The way that it displays is the dogs just chew constantly on their joints. They’re trying to alleviate it somehow. We do find that when we give CBD regularly, it minimizes that significantly so she doesn’t do the constant gnawing on her joints and elbows that we see otherwise. Yeah, we have seen a big difference.

TG Branfalt: The other thing that Cody was telling me about is that you have an animal rescue project. Can you tell me about that? Is it linked to the cannabis industry, and if so, how?

Peter Vogel: It’s not my project. It’s a project that I’m joining and throwing in my resources, trying to help as much as I can. It’s actually Davyd Smith over at Vangst. He’s the CTO of Vangst. He runs something called No Kill Colorado. It’s not a shelter. It’s an organization that teaches shelters how to change from being a kill shelter into being a either zero or almost zero kill shelter.

This is based on a book that someone wrote decades ago, and they’ve done this all over the world, in different cities and states. They have 12 different policies. If you enact these 12 policies, you can get your shelter to almost a zero kill shelter. Just to give two examples of this so it makes sense. One, when they go pick up a dog… Say a dog has been found. It’s a stray, and no one knows what to do with it. The shelter will go pick it up. Rather than just take it back to the shelter, they walk around in a three-block radius to every house and ask every single person if they know where the dog is from. I think it was something like 50% of the time they just find the owner of the dog by doing that.

TG Branfalt: Wow.

Peter Vogel: So they eliminate in bringing the dog in, which seems pretty obvious, but most of these shelters or pounds, they’re so busy. They just pick the dog up, take it back, put it in a cage, and forget about it. Another example of that is shelters often have people drive up with their dog and say, “I can’t afford this anymore. I have to give it up.” The shelters all get food donated from dog food companies. So another one of these principles is offer to give them a free month of food and tell them, “Take this. If you need more next month, just come back, and we’ll give you another one.” So rather than have someone give up their dog because of financial reasons, help them in a way that gives them a month at time so that they can, hopefully, get back on their feet and start to feed the dog on their own. Again, make it so you don’t even have to take the dog in. So there’s about 12 principles like that.

So what Davyd’s organization does is they go shelter by shelter in different cities. They go to them, and they pressure them to adopt these principles and work with the city, work with the county to pressure them to do it. They’ve gotten a bunch of shelters in Colorado to get to zero percent. Their goal is to get all of Colorado to zero percent kill shelters. No Kill Colorado, partly because Davyd’s the CTO for Vangst, obviously he’s a big believer in the industry, wants to bring in… That’s part of the reason I’m joining forces with him. We want to start to throw a lot of events, bring in cannabis companies to help support this cause and throw their resources, money behind it. Because one of the things that I didn’t really know that Davyd brought up is there’s a lot of people in the cannabis industry who want to donate money or time, and there’s a lot of charities that won’t take money from cannabis companies strictly because they’re cannabis companies.

TG Branfalt: Really?

Peter Vogel: Yeah. I didn’t realize that. Apparently the more traditional, conservative charities don’t want to be associated with cannabis still and they won’t accept — 

TG Branfalt: Unbelievable.

Peter Vogel: … money from cannabis companies. That’s what Davyd wants to do is really say, “Listen. Let’s show that the cannabis industry can work together and help save these animals.” The goal is to get to zero percent kill in Colorado. There’s other organizations that do the same thing in other states. So this is part of a national organization.

TG Branfalt: Super cool, man. I really appreciate you telling me all about that. Well, I’ve been covering this industry for several years, and there is a lot of charity that goes on. I had no idea that a lot of these traditional organizations won’t take cannabis industry money. You learn something new every single day of this industry. Where can people find out more about you, more about Leafwire?

Peter Vogel: Well first, we encourage everybody, obviously, to come join Leafwire. It’s 100% free. We will be adding some premium features, but right now it’s all free. Just come join. Create a profile. You can connect with me on Leafwire. Anyone that wants to shoot me an email or connect directly, you can also just go to peter@leafwire.com. I’m happy to chat, have coffee, meet with most anyone. I’ve been networking in cannabis very heavily ever since I started.

TG Branfalt: Well, Peter Vogel, thank you so much for coming on the show. Really a breath of fresh air in the industry, I think, especially for being new into it. I think you have a lot of really great ideas, and I’m excited to see how Leafwire grows. Definitely try to keep me updated on this No Kill Colorado campaign. I’m an animal guy, you know.

Peter Vogel: Well, I’ll chat with Davyd too. We should get him to get on with you, and he can tell you. He’s the guy. He started it here, so he can really tell you about it.

TG Branfalt: That’d be great, man. Again, I really appreciate you taking the time to come on the show.

Peter Vogel: All right, thank you 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 Ganjapreneur.com website, you’ll find the latest cannabis news and cannabis jobs updated 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. Thanks for listening. I’ve been your host, TG Branfalt.

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Google Bans Cannabis Apps from Play Store

5/30/2019

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Tech giant Google has announced a ban on cannabis transaction apps from its Google Play store on Wednesday “regardless of legality” according to its recently updated policy section. The change was first reported by Android Police.

The new rules prohibit apps that allow users to order cannabis through “an in-app shopping cart feature,” assist “in arranging delivery or pick up” of cannabis products,” or facilitate the sale of THC-containing products.

Its updated policies include bans on apps that facilitate tobacco sales – including e-cigarettes – and those that “encourage the irresponsible use of alcohol or tobacco.”

In a statement to Android Police, Google indicated that apps like cannabis delivery app Eaze and Weedmaps – which has an online ordering function in addition to the ability to map dispensaries – would have to remove their ordering function within 30 days in order to remain compliant with the platform.

“These apps simply need to move the shopping cart flow outside of the app itself to be compliant with this new policy. We’ve been in contact with many of the developers and are working with them to answer any technical questions and help them implement the changes without customer disruption.” – Google, to Android Police

The changes come on the same day Google announced “additional protections for children and families” on its Play service. The changes now require app developers to declare a target audience and while cannabis sales are limited to individuals 21-and-older, the company’s new policies are renewed efforts to prevent children from seeing inappropriate content.

In an email to Marijuana Moment, Elizabeth Ashford, senior director of corporate communications for Eaze called Google’s decision “a disappointing development that only helps the illegal market thrive” but was “confident” that Google – and Apple – “will eventually do the right thing” and allow cannabis transaction apps to continue doing business on their platforms. Apple had banned some cannabis apps, such as MassRoots, until they backtracked on the policy in 2015.

Google is based in California, which legalized cannabis for recreational use in 2016.

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Illinois Capital

Illinois Senate Advances Adult-Use Cannabis Bill

5/30/2019

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The Illinois Senate has approved the Cannabis Regulation and Tax Act, which would establish a taxed-and-regulated marketplace in the state for adults who are 21 or older.

HB 1438, sponsored by state Sen. Heather Steans and state Rep. Kelly Cassidy, passed the Senate in a 38-17 vote and is supported by Gov. J.B. Pritzker. The proposal would legalize the possession and sale of up to 30 grams of cannabis flower and would allow for some expungement of prior cannabis convictions.

The bill had caught a snag over a proposed cannabis home-grow provision; that provision, however, was replaced by another provision allowing only registered medical cannabis patients to grow their own plants, and the bill advanced.

“One of the reasons we’re going to tax-and-regulate is to make sure you’re not getting product that’s got issues. By limiting that (home grow) significantly, you reduce the problems.” — State Sen. Heather Steans, via the Associated Press

The bill now moves to the House of Representatives for consideration.

“MPP is proud to have worked hand-in-hand with state lawmakers and Gov. Pritzker to develop this historic legislation,” said Steve Hawkins, executive director of the Marijuana Policy Project, in a press release. “This bill helps people remove the stigma and harm caused by prior cannabis possession convictions and creates opportunities for those who want to enter the new, regulated program.”

If the bill becomes law, adults could begin participating in the newly legal cannabis market as early as January 1, 2020 and Illinois would become the 11th state to pass legalization — and the first to approve a taxed-and-regulated marketplace via the state legislature instead of a ballot initiative.

“This is just one step of many in ending cannabis prohibition,” Dan Linn, executive director for NORML Illinois, said in a press release. “Even after this bill passes there will still be work to do to give adults in Illinois access to cannabis without having to purchase it from a limited amount of stores and cultivators.”

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Maryland Receives 160 Applications for MMJ Expansion

5/30/2019

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The Maryland Medical Cannabis Commission has received more than 160 applications for one of the state’s 14 new medical cannabis licenses, the Baltimore Sun reports. The license expansion is aimed at minority- and women-owned businesses and comes more than a year after the legislature and Gov. Larry Hogan approved a law to address the lack of diversity in the state’s cannabis industry.

Commission Chairman Brian Lopez indicated that the agency was aware of some technical problems applicants had with submitting their applications online but that none would be penalized if they missed the deadline due to the difficulties. He added that all of the applicants that submitted their $2,000 application fee would be notified Friday if their application was complete.

Following the rollout of the medical cannabis program in 2014, it immediately came under fire for its lack of diversity despite the original law calling for race and gender to be considered when awarding licenses. In the initial round of licensing, not one was awarded to a minority-owned firm. A state-commissioned “disparity study” confirmed what social-equity advocates had argued, concluding that the state needed to implement “race- and gender-based measures to remediate discrimination” in the space.

The legislative push was led by Del. Cheryl Glenn, the head of the Legislative Black Caucus.

“I’m sure the commission understands the importance of making sure that we have the diversity that we should have in Maryland. I’m hoping most of the licenses will be awarded not only to minorities, but to Maryland minorities. That’s the whole reason we’re doing this.” – Glenn, to the Sun

In March, Maryland licensed producer Curio Wellness filed a lawsuit against the state over the licensing plan claiming that the commission had violated its own rules by soliciting applications without first completing a supply and demand survey. Days later, following backlash, the company dropped the lawsuit. Curio CEO Michael Bronfein said at that time that he stood by the “merits of the lawsuit” but didn’t want to divide the community, noting that 36 percent of the company’s workforce is female, and 38 percent are African American.

Four of the new licenses are for cultivation while 10 are for processing. Medical cannabis sales in Maryland reached $109 million last year. As of last month, there are 15 cultivators, 16 processors, and 75 dispensaries licensed in the state.

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Health Canada Approves 100-Acre Outdoor Grow

5/30/2019

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Health Canada has approved 48North’s 100-acre, 250,000-plant outdoor cannabis cultivation facility in Brant County, Ontario, according to a CTV News report. Once operational, the facility will immediately become the largest, legal, outdoor cannabis site in the nation.

48North already operates two indoor facilities in the province. Jeannette Vandermarel, a co-CEO and director of 48North, told CTV that the new facility could “likely” be the “world’s largest legal cannabis farm.”

Alison Gordon, another company co-CEO and director, called the site – which was once used to grow tobacco – “ideal” for cannabis cultivation.

“When you’re growing outdoor, you have a low-cost input and a quality input that you’re able to extract and turn into the vapes, and edibles, and all these products that both patients and consumers are really for in the Canadian market.” – Gordon, to CTV

The company is planning to install more than 100 cameras on the vast property for security, along with fencing and motion sensors. 48North representatives said they would employ about 200 seasonal workers and 50 full-time staff once the project is underway.

The approval for the site comes as Canadian cannabis regulators mull changes to the three-year-old industry including regulations for edibles, which are currently unavailable; changes to security requirements; and updates for Good Production Practices. Those changes are expected to be announced in the fall.

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thc vs. cbd

Know Your Cannabis: THC vs. CBD

5/29/2019

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It’s safe to assume that because they affect you differently, THC vs. CBD work differently in the brain. Tetrahydrocannabinol, or THC, is the main psychoactive compound in cannabis. The THC content in cannabis has increased drastically over the years — in the ’70s, the supposed “golden age” for drug use, THC content was estimated around 3-5% in cannabis. Now, it’s normal to see percentages of around 20% and even 30% on dispensary shelves.

This means the cannabis being consumed now is more potent than it once was, so knowing how these compounds affect us is increasingly important.

THC and the Endocannabinoid System

THC activates cannabinoid receptors in the brain and body, specifically CB1 and CB2 receptors. These receptors are part of a network called the endocannabinoid system, which was discovered by researchers in 1988.

There are many regions of the brain where cannabinoid receptors exist (they are also present in certain peripheral organs involved in pain responses and immunity). There are CB1 receptors in the hypothalamus (hormone release), frontal cortex (executive decision making/judgment), hippocampus (memory), amygdala (basic physiological processes like heart rate/breathing), and a region of the brain encompassing many structures, called the basal ganglia (movement/cognition). This illustrates why THC has such a multitude of behavioral effects and can vary widely among individuals.

Cannabis growers around the country use highly honed growing practices to produce THC- and CBD-rich cannabis strains. Photo credit: Rory Savatgy

CBD’s Various Mechanisms

CBD, on the other hand, has a low binding affinity for CB1 and CB2 receptors but acts by modulating other non-cannabinoid receptors in the body and brain. One of the receptors it acts on is the 5-HT species, which is involved in serotonin release. This could contribute to CBD’s anxiolytic effects.

CBD also blocks fatty amyloid acid hydrogenase (FAAH). FAAH is an enzyme responsible for the breakdown of anandamide, a cannabinoid our body naturally makes that activates the endocannabinoid system. Interestingly, the word anandamide originates from the Sanskrit word for bliss — CBD blocks FAAH from breaking down anandamide, which could be another reason CBD helps with anxiety.

CBD also stimulates the release of another endocannabinoid, 2-AG, which is responsible for modulating immune responses and activates both CB1 and CB2 receptors. This is how CBD indirectly activates cannabinoid receptors—it doesn’t bind directly to them but sends out signals for other molecules to be released that will stimulate the endocannabinoid system. In addition to these mechanisms, CBD has been seen to act as an antioxidant and contributes to neuroprotection and pain relief (both THC and CBD also modulate opioid receptor expression).

Different Metabolites and Mechanisms

When taken orally, THC is converted into a much more potent metabolite called 11-OH-THC. This is one of the reasons why when you take edibles, it not only takes longer for the high to hit, but you frequently feel the high much more intensely than if you had smoked.

In contrast, CBD allosterically inhibits cytochrome-P450 receptors. The P450 receptors are a specific subset of liver enzymes that break down compounds in the body. When CBD interferes and these enzymes are unable to do their job, you could end up with exceedingly high levels of a compound in your blood (say THC, for example, if you smoked a cannabis strain that had high percentages of both THC and CBD). This is one reason why it is crucial to learn how these compounds act in our body and interact with other substances we may be taking (if you’re on SSRI’s or blood thinners, taking high doses of CBD may not be a good idea because of its ability to block enzymatic breakdown).

A cannabis industry worker plucks the leaves off of a freshly harvested plant. Photo credit: Rory Savatgy

The Entourage Effect and Synergy

Together, THC and CBD work synergistically to create the many benefits cannabis has been shown to offer: reducing anxiety, pain, and nausea — and helping restore sleep and appetite — to name a few of the major ones. The entourage effect is the name of this theory, stating that the compounds in cannabis work together to heighten the plant’s many benefits compared to when any of its individual compounds are consumed alone.

CBD specifically aids in dampening the powerful psychoactive effects of THC by opposing its action at the CB receptor. This blunts some of the potential negative effects of consuming THC, like paranoia and cognitive issues. Also, because THC is a lipid molecule, it binds to fat molecules in our body, which is why it can be seen in drug tests even months after consumption. This phenomenon, called depot binding, may help CBD be even more active when consumed with THC.

THC and CBD activate different receptors in our body and therefore have different effects when consumed. However, it’s in their synergy where they bring out the best in each other.

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Texas Lawmakers Approve MMJ Expansion Bill

5/29/2019

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The Texas House and Senate have reconciled the medical cannabis bill overwhelmingly approved by lawmakers in both chambers earlier this month, the Victoria Advocate reports. The measure expands the state’s 2015 law by adding seven additional conditions to the qualifying conditions list – which previously only included “intractable epilepsy” and removing the requirement for two physicians to approve patients for medical cannabis use.

The measure does not raise the 0.5 percent THC cap on medical cannabis products available in the state; however, it does remove previous restrictions on all other cannabinoids.

Patients diagnosed with 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 would qualify for medical cannabis access in Texas under the law.

Heather Fazio, director of Texans for Responsible Marijuana Policy, called the bill’s passage “a bittersweet moment” for medical cannabis advocates in the state.

“This bill moves the needle, but falls very short of what we need in Texas. Those with other debilitating medical conditions need access to whole plant cannabis, and we will not stop until the Compassionate Use Program is truly made more inclusive and functional, protecting patients and providers.” – Fazio, to the Advocate

The bill moves next to Republican Gov. Greg Abbot – who signed into law the 2015 measure. If he signs it, the new law would take effect Sept. 1.

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Arizona Supreme Court: Medical Cannabis Extracts Are Legal

5/29/2019

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The Arizona Supreme Court has ruled that cannabis extracts meet the definition of medical cannabis under the state’s Medical Marijuana Act, according to a Phoenix New Times report. The unanimous ruling effectively prevents lawmakers and regulators from pulling extracts from dispensary shelves in addition to shielding medical cannabis patients from prosecution for possessing concentrates.

“We hold that [Arizona Medical Marijuana Act’s] definition of marijuana includes both its dried-leaf/flower form and extracted resin, including hashish.” – Arizona Supreme Court ruling in State of Arizona v. Rodney Christopher Jones, via the New Times  

Rodney Christopher Jones was arrested in 2013 for possessing 1.4 grams of hashish and, despite being a medical cannabis patient in the state, he was sentenced to two and a half years in jail in 2014. Last year, the state Appeals Court ruled against Jones, with Judge Jon W. Thompson, writing in the court’s majority opinion that the AMMA “is silent as to hashish.”

The ruling, however, neither stopped patients from extracting cannabis for concentrates nor dispensaries from selling them. Law enforcement officials did not crack down on the dispensaries but some patients were arrested and convicted following the lower court ruling, according to the report.

The high court opined that state law “defines ‘marijuana’ as ‘all parts of [the] plant.’ The word ‘all,’ one of the most comprehensive words in the English language, means exactly that.” The opinion also explicitly protects patients and business owners from prosecution for concentrates.

Jones’ conviction was also vacated by the court.

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North Dakota Lawmakers to Study Legalization

5/29/2019

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Lawmakers in North Dakota have moved to study the implications of recreational cannabis legalization as they expect advocates to move forward with another ballot initiative, the Williston Herald reports. North Dakotans did vote on legalization in 2018; the initiative, however, was soundly defeated 59-41 percent.

The legislative study would examine both sides of legalization and Democratic Rep. Karla Rose Hanson said the study would allow lawmakers to be “proactive” if voters were to approve legalization.

“I think of zoning. I think of tax revenue. We have a human services role and we have law enforcement and the criminal justice system. And then, of course, we already have the medical marijuana program.” — Rep. Karla Rose Hanson, via the Bismarck Tribune

There are at least two potential initiatives seeking to make it to voters in the state next year. One group, led by John Bailey, is proposing a constitutional amendment for the reforms. He has already submitted one version of the initiative to the Secretary of State but rescinded it for language changes, according to the Tribune report.

Legalize ND is also hoping to put their version to voters, which would be similar to the measure rejected last year. In their statement following the failed 2018 bid, the group indicated they would re-try in 2020.

The legislative study will be assigned to a committee on June 10. There is no timeline for a report to be released.

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TSA Allows Some MMJ Products on Flights

5/28/2019

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The Transportation Security Administration has updated its website to clarify that air travelers are permitted to bring some cannabis-derived products aboard airplanes and in their checked luggage. The change allows passengers to possess hemp-derived CBD products and Food and Drug Administration-approved cannabis-derived medical products – namely Epidiolex.

The change was first reported by Marijuana Moment.

In a CNN report, TSA indicated the agency “was made aware of an FDA-approved drug that contains CBD oil for children who experience seizures from pediatric epilepsy” and “immediately updated” its website once they were aware of the issue.

The updated section says that while the agency’s officers “do not search for marijuana and other illegal drugs,” if they find any illegal substances they “will refer the matter to law enforcement” – regardless of whether the products are discovered in a state where the products are legal – because TSA is a federal agency.

In 2017, TSA’s “What can I bring” tool had been briefly updated to show that the agency would allow medical cannabis on flights; however, the agency later said it was “a mistake in the database.”

Last year, California’s LAX airport updated its policies to allow cannabis possession on the property but not necessarily through TSA checkpoints. In Alaska, some licensed cannabis producers are allowed to transport products in-state on commercial airlines since some Alaskan communities are only accessible by air or sea.

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New York Lawmakers Amend Adult-Use Bill In Final Bid

5/28/2019

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New York lawmakers have amended the state’s recreational cannabis bill in an effort to make it more palatable to Gov. Andrew Cuomo, the Buffalo News reports. The amendments include raising taxes, lowering possession limits, and expunging records for low-level cannabis-related crimes.

The original version of the bill would have allowed individuals to possess up to 2 pounds of cannabis, which has been reduced to 3 ounces. If approved, the limits would still be among the highest among legal states.

The tax rate for flower would be raised from 62 cents per gram to $1 per gram, with tax rates for trim and leaves jumping from 10 cents per gram to 25 cents per gram. The amendments make no changes to the sales or excise tax rates in the original measure.

Individuals with low-level cannabis convictions would be able to get those convictions expunged, instead of sealed as initially called for in the introduced legislation, and all records associated with the charges would be destroyed.

Assembly Majority Leader Crystal D. Peoples-Stokes called the economic and social justice parts of the bill “really huge.”

“At the end of the day, the most important piece to me is expunging people’s records, to give people a chance to survive in America.” – Peoples-Stokes, to the Buffalo News

The measure also expands the definition for social-equity applicants from those convicted of cannabis crimes to individuals with “a parent, guardian, child, spouse, or dependent, or was a dependent of an individual” who was convicted of a cannabis-related crime.

Additionally, the new version of the bill includes $3 million over three years to train law enforcement officers to identify people driving while impaired by drugs. The bill would also allow the governor to appoint the head of the Office of Cannabis Management.

Sen. Liz Krueger, the Democratic sponsor of the bill in the Senate, admitted that she still doesn’t have enough votes in the chamber “unless the Assembly passes it first and the governor comes out in full-throated support.”

New York’s legislative session ends June 19.

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