New Jersey Gov. Expands MMJ Program

With broad legalization not likely to reach New Jersey this year, Gov. Phil Murphy is moving forward with plans to expand the state’s medical cannabis program via executive order. The new rules, announced by the Department of Health, include changes to fee and permitting structures and the addition of new products.

The changes codify some rules that were already in effect but were temporary, including: halving the registration fees for patients and caregivers from $200 to $100; reducing the registration fees for military veterans and seniors to $20; allowing physicians to opt-out of the public list of medical cannabis providers and allowing the sale of vape pens.

The order also keeps post-traumatic stress disorder anxiety, chronic pain of visceral origin, chronic pain related to musculoskeletal disorders, migraines, Tourette syndrome, and Opioid Use Disorder on the list of qualifying conditions.

The new rules remove previous requirements for qualifying condition petitions to be first approved by the Medicinal Marijuana Review Panel, and for children to undergo a psychiatric evaluation before being registered with the program.

“These rules solidify key program reforms to ensure greater patient access to this effective therapy. With these changes, the Department will be able to add conditions more rapidly, remove barriers for minors and increase supply of product available.” — Health Commissioner Dr. Shereef Elnahal, in a statement

Notably, the order creates separate permit systems for cultivation, manufacturing, and dispensing, in an effort to increase the available supply of cannabis for qualified patients and allow “specialization in the market.”

Murphy included recreational legalization in his campaign platform; however, Democratic-led Senate President Stephen Sweeney tabled the measure after not finding the 21 votes needed to pass the chamber. Murphy said in April that he would expand the medical cannabis program in the event that lawmakers could not come to an agreement.

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Iowa Gov. Signs Hemp Bill

Iowa Gov. Kim Reynolds has signed the hemp legalization measure passed by the legislature late last month but noted that the measure “does not legalize the sale or manufacturing of…CBD.”

In a statement, the Republican governor noted that the federal Food and Drug Administration has not yet approved the cannabinoid for human or animal consumption.

“The FDA has also declared that CBD is not a dietary supplement. State law cannot preempt the federal law, and Iowans engaging in the manufacture, sale, or purchase of hemp-derived products should carefully consider the legality of their actions under Iowa and federal law.” – Reynolds, in a press release

The measure, which passed the House 95-3 and the Senate 49-1, does allow licensees to cultivate up to 40 acres; however, hemp farming isn’t expected to begin in the state until next year.

Under the federal hemp law changes approved last year, states must submit their proposed hemp regulations to the Department of Agriculture for approval prior to farmers putting seeds into the ground. The USDA released guidance for importing hemp seeds last month which requires imported seeds to include documentation that the strains will produce less than 0.3 percent THC and are free of pests.

In her statement, Reynolds said the hemp industry is still evolving and “it is imperative” that state agencies and the legislature “remain vigilant in evaluating the effects of this legislation and the need for additional changes to ensure that our laws protect the health and safety of all Iowans.”

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Washington Gov. Signs Expungement Bill Into Law

After years of lobbying efforts by citizens, activist groups and legislators in Washington State, Gov. Jay Inslee (D) has signed SB 5605, “Concerning misdemeanor marijuana offense convictions.”

The new law allows Washingtonians who were previously arrested for misdemeanor or gross misdemeanor cannabis possession to request a court vacancy for that conviction. This would allow said individuals to answer “No” when asked, “Have you ever been convicted of a crime?” on job and/or housing applications.

The new law, however, does have some hoops to jump through. To be eligible for the program, a person must:

  • Have been twenty-one or older when convicted.
  • Have been convicted under Washington state law.
  • Have been sentenced between January 1, 1998, and December 5, 2012.
  • And only been convicted of the one cannabis possession charge.

The court reserves the right to not vacate a sentence for various other administrative reasons, but it’s estimated the new law will help roughly 69,000 Washingtonians. The “Act” must be funded in the Omnibus Appropriations budget by June 30, 2019.

In an email, Danielle Rosellison — president of the Cannabis Alliance, a Washington State trade organization who lobbied heavily for the bill — said, “Cannabis Alliance is proud that our members voted expungement of non-violent cannabis convictions as one of the priorities they wanted to address this session and we could not be more excited about the passage of this bill!”

“This is one small step to righting the wrongs of the War on Drugs. The work is not done, but this will help about 69,000 Washingtonians,” Rosellison said. 

The legislation comes on the heels of the governor’s “Marijuana Justice Initiative,” a program which allows applicants to ask the governor for a pardon for their misdemeanor cannabis convictions. Pardoning, however, does not completely erase the crime from a person’s record, so the legislature opted for conviction “vacancy” to go one step further in erasing some damage the drug war has caused. 

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CBD 101: What is CBD? Benefits and Side Effects

Most of us have heard a lot about cannabis and its many components, yet there is always someone who needs that extra bit of explanation. So, today’s CBD 101 guide is for all those people who are looking to learn all about this miraculous (too much? We’ll get back to that) cannabinoid.

Starting from the beginning:

What is CBD?

CBD is many things, but to be precise: CBD is a cannabinoid, which is a type of chemical compound found in cannabis. There are more than a hundred cannabinoids in cannabis and CBD is one of them.

CBD has gained immense popularity in recent times because it is credited with being able to help in treating several mental and physical conditions without giving the psychedelic ride which is usually associated with the other popular cannabinoid, THC. CBD is not psychoactive and has that benefit over THC.

The cannabidiol products that are available and being used throughout the entire nation are currently made using CBD extracts from industrial hemp. While some states are allowing the amalgamation of the primary cannabinoids — both CBD and THC — others have not made THC legal yet and, for the people of those states, hemp-derived CBD is the only natural alternative for health enhancement.

Other than CBD’s affinity to our CB receptors (We have CBD receptors that react to both, endocannabinoids that our body produces and phytocannabinoids like CBD and THC) which affects almost all the human functions, CBD is also a great source of nutrition. Primary vitamins, fatty acids, and more importantly, all 20 amino acids including the essential ones which the human body needs to source externally, CBD has it all.

Thus, CBD is not just another part of cannabis but is one of the most effective components for improving mental and physical health.

3 Health Benefits of CBD That Made It So Popular

1) CBD oil is hugely accepted by users as a pain reliever

Chronic pain is an emerging health issue in the US, and people are sick of using painkillers, which carry the risk of opioid addiction as a side-effect. Although people started trying out CBD-derived products to manage their pain because of their curiosity, the cannabinoid seems to have proved its worth as a healer because of its ever-increasing sales.

Several clinical trials have been conducted to study CBD’s effects on various pains including cancer pain, and CBD has proved its efficacy by lowering the pain levels in the patients seeking chemotherapy. According to a comprehensively published report, various CBD-infused drugs showed considerable improvement in managing different pains. Thus, maybe not entirely, but CBD has been shown to be a positive influence in healing chronic pain.

2) CBD oil has gained popularity with its capacity of decreasing epileptic seizures

You might be living under a rock if you haven’t heard about the Figi family, who chose to treat their daughter Charlotte’s for Dravet syndrome symptoms using CBD oil. The results were so amazing that the news became an eye and ear opener for the entire nation.

From 300 seizures per week to just one episode per week, Charlotte Figi lived the benefits of CBD oil. Although this CBD oil was an amalgamation of CBD and THC, it gave hope to hundreds of parents looking for something that would work for their epileptic children as well.

Hundreds of surveys, online and offline, are pointing towards the cannabinoid’s ability to decrease epileptic seizures irrespective of their cause. In a particular online survey targeting a Facebook group of parents in the US who supported the use of CBD for epilepsy. These were the key findings of the survey:

  • There were 117 respondents
  • 85% reported a decrease in the frequency of seizures
  • 14% reported complete freedom from seizures
  • Children showed improved sleep, alertness, and mood

3) Addiction treatment has become easier with CBD’s inclusion

According to the World Drug Report published in 2014, approximately 183,000 deaths are believed to be drug related in a year. Yes, deaths caused just by drugs, we haven’t talked about alcohol, tobacco, and other substances yet. So, addiction is a real problem, and we are amidst an opioid crisis where people are not able to let go of their painkillers due to their addictive properties.

CBD, the non-psychoactive cannabinoid, is a subject of research for various institutions, who are studying its capacity to manage addictive behavior in animals and humans. In a study focused on CBD and tobacco addiction that involved a CBD inhaler and a placebo, the participants observed a significant decrease in the urge to smoke post two weeks.

The same could be said for alcoholism. CBD has also shown its effectiveness in reducing cannabis addiction in a study involving 134 participants. A simple inclusion of CBD oil may help you get off the hook successfully.

Apart from these three CBD benefits that played a significant role in popularizing CBD, the cannabinoid is also known for inducing sleep and a feeling of relaxation. Anxiety and depression are other major health hazards which are convincing people to try natural alternatives such as CBD which have better tendency to work. However, most of the users still have a fear of its risk.

So, let’s talk if CBD has any side-effects!

Side-Effects of CBD — does it have any?

Unlike some modern medicine, CBD doesn’t have the symptom as its side-effect — like headaches as a potential side-effect of a pill that’s supposed to treat headache! Thankfully, CBD doesn’t work that way.

No major CBD side-effects have been registered yet which could change the dynamics of the cannabinoid. However, people have experienced dry-mouth, psychomotor slowing, a little sedation, and lightheadedness after bigger CBD dosages. The only thing that should concern any user is to not mingle CBD with pharmaceutical drugs without consulting your physician as the same enzyme is responsible for its metabolism.

Wrapping up!

The things that generate the most curiosity about CBD are questions of its makeup, its uses, and its side effects. As we discussed, CBD is a chemical compound found in a wide variety of cannabis species. It has amazing health benefits as it interacts with our endocannabinoid system that pretty much affects all our systems including sleep, appetite, pain, etc.

And, as for CBD side-effects, we can say that they are bare-minimum. In all, CBD oil is rightfully popular today as people really want to use this cannabinoid to its maximum extent. Stay tuned to Marijuana Span to know more about cannabis, CBD benefits, and everything related!

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Ohio Medical Cannabis Sales Top $5.8M

Medical cannabis sales in Ohio have topped $5.8 million for the first five months since sales began in January, according to state data outlined by the Associated Press.

Dispensaries have sold more than 750 pounds of flower to the state’s patients, which now exceed 30,000.

The program has signed up 484 physicians to recommend qualifying patients but many of the industry operators have yet to come online and even fewer producers and processors have their operations up and running.

Of the 29 provisional licenses for cultivation, 17 licensees have received their operating certificates for their facilities. Just 15 of 56 dispensaries are selling products and only two of the state’s 39 producers have received certification to begin manufacturing edibles, tinctures, and salves.

According to Board of Pharmacy figures, there are 2,386 military veterans signed up with the medical cannabis program, and 1,216 patients with indignant status; additionally, there are 2,109 registered caregivers to serve some of the state’s patients while regulators continue issuing licenses – caregivers have a two-patient cap. In April, dispensaries served more than 15,330 patients.

Last week, the Medical Board of Ohio recommended that the agency add anxiety and autism spectrum disorder to the state’s current list of 21 qualifying conditions for medical cannabis. Adding anxiety could greatly increase the number of patients registered under the state regime. The board is expected to approve or deny the conditions on June 12.

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The state capitol building of Connecticut.

Connecticut Gov. Signs Industrial Hemp Bill

Connecticut Gov. Ned Lamont, a Democrat, has signed legislation creating a pilot program for hemp cultivation in the state. Lamont said the program will strengthen officials’ efforts to grow the agriculture economy and create jobs “in a responsible manner.”

“With this program, farmers will have the opportunity to bolster their profits with hemp, and veteran and first-time farmers alike will be attracted to a new and growing market that will offer crop diversification, increased revenue, and expertise in an expanding field.” — Lamont, in a press release

According to the bill text, the Connecticut Department of Agriculture will use Kentucky’s industrial hemp program as a policy guide for the state’s hemp regulations. The pilot program aims to study the growth, cultivation, and marketing of industrial hemp in Connecticut “in a manner that ensures that only such department grows or cultivates such industrial hemp through the use of sites that are certified by, and registered with, the Department of Agriculture.”

The measure received unanimous support in both chambers of the state General Assembly.

Connecticut Agriculture Commissioner Brian Hurlburt said that while the measure doesn’t outright legalize hemp – as many other states have done following the passage of the federal farm Bill last year – it is a “giant step closer” to broad reforms.

“Hemp has the potential to stabilize the agricultural economy and attract new farmers to the industry while providing consumers with a locally grown product that is in high demand,” he said in a statement. “This ties in with the governor’s budget to support a hemp program and the desire to create new market opportunities for the small business men and women in Connecticut.”

Interested farmers will pay a $50 annual application fee and a cultivation fee of $50 per planned acre of hemp; processors will pay a $250 licensing fee.

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Asian Potential MMJ Market Worth $5.8B by 2024

Asia’s medical cannabis market could reach $5.8 billion by 2024 if it were legalized throughout the region, according to a new study from Prohibition Partners. Although, it’s unlikely that broad reforms will occur in more conservative nations such as Hong Kong and China, where legalization is improbable in the next five to 10 years.

“In our view, while Asian investors and startups continue to keep an eye on legal developments in Europe and North America, western-based cannabis companies are getting ready to explore new opportunities in the Asian market.” – Prohibition Partners’ Asian Medical Cannabis report, via the South China Morning Post

In Asia, Thailand, Pakistan, and Uzbekistan have medical cannabis regimes while South Korea has legalized the use of CBD-rich products for medical use.

According to the report, China and Japan represent the region’s two largest-value medicinal cannabis markets – worth almost $4.4 billion and $800 million by 2024, respectively – accounting for an estimated 90 percent share of the market.

India has an estimated 38 million cannabis consumers, the most in Asia. Meanwhile, China accounts for nearly half of the world’s hemp supply with an industry estimated at $1.2 billion. Daragh Anglim, Managing Director at Prohibition Partners, said that China’s existing hemp industry provides the nation with a “huge opportunity to capitalize on this emerging market and help to shift opinions in favor of the therapeutic effects of different cannabinoids.”

A Reports and Data study published last week estimated the global hemp market could hit $13.03 billion by 2026 and the Asia-Pacific market would grow faster than anywhere else in the world – at a rate of 14.2 percent.

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Blissiva: Bridging Cannabis and Women’s Medicine

Dr. Leslie Apgar and career entrepreneur/investor Gina Dubbé are co-founders of Blissiva, a Maryland-based dispensary with a scientific approach to cannabis medicine and an emphasis on providing women with cannabis-based relief; Blissiva is perhaps best known, however, for designing and manufacturing particularly approachable vape pen products.

The two recently joined TG Branfalt on the Ganjapreneur.com podcast to discuss how, as business partners, Gina and Dr. Apgar made the leap from mainstream business and medicine into the medical cannabis industry. They also share stories of overcoming industry obstacles and finding success as women entrepreneurs in cannabis, their thoughts about Maryland’s medical cannabis regulations, and more!

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


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TG Branfalt: Hey there, I’m your host TG Branfalt, and thank you for listening to the Ganjapreneur.com podcast, where we try to bring you actionable information and normalize cannabis through the stories of ganjapreneurs, activists, and industry stakeholders.

Today I want to start by wishing everybody out there a happy Women’s History Month, and I’m delighted to be joined by two women on the front lines at Maryland, it’s Dr. Leslie Apgar, she’s an OB/GYN, along with her partner, serial entrepreneur, Gina Dubbé. They’re the co-founders of Maryland based Blissiva, a cannabis company focused on women’s health. Their first product, the Blissiva Balance pen, sold out in just three weeks after it’s launch. How are you ladies doing today?

Gina Dubbé: We’re doing terrific. Thank you so much for having us.

TG Branfalt: I’m absolutely stoked. Before we get into the success with the Balance pen and talk about that story, tell me about you guys, how did you both end up in the cannabis space, and tell me about how you guys linked up and established this partnership.

Leslie Apgar: All right. So hi, this is Leslie Apgar. Gina is actually, was my backdoor neighbor, and so I moved into her neighborhood and she brought a freshly baked pie across the backyard to me, and I just looked at her with raised eyebrows, saying like, “Who is this woman who is like… Is it Betty Crocker?” Because as a physician, as a single mom and a physician, I really never had time to hardly cook let along bake a pie, but she certainly made an impression on me, and we quickly became fast friends. So that’s how we met.

Gina Dubbé: Tell them a little bit about your background, Les.

Leslie Apgar: So I grew up in the Pacific Northwest, in a small island outside of Seattle, and I went to medical school at Penn State, and stayed for residency. And then when I was done I moved to Baltimore and I joined a female OB/GYN practice, and Gina was in the neighborhood that I’d moved into, in fact she was my backdoor neighbor, and so I met her in that way.

TG Branfalt: And how about you Gina, how did you come about to the cannabis space?

Gina Dubbé: A long and checkered past. I was actually an engineer by trade-

TG Branfalt: Oh, wow.

Gina Dubbé: … and ran a venture fund for a while, and I sold my last company which was a company called Therapro, which was an ice pack company to Biofreeze, and I had retired, and I was approached to invest in a lot of small businesses, and Leslie had a colleague in this field that approached us to invest in a cannabis grow.

So here we are driving back from tennis, right, in the car, hot summer day, and we have the guy on speaker, and he’s telling us all about why he’s going to win, and he’s going to bid for a dispensary, and a grower, and a processor, and would we like to invest with him, and I said, “Well, what’s your return profile?” And he said, “Oh, honey, you would never understand that.”

TG Branfalt: Oh, no.

Leslie Apgar: Mm-hmm (affirmative). Oh, yes.

Gina Dubbé: We got mansplained. So we decided that we would bid it ourselves, and that is what we did. And it was an interesting place from which to come because I had never smoked marijuana, knew nothing about it. We laughingly say it was our greatest writing of fiction-

Leslie Apgar: Mm-hmm (affirmative).

Gina Dubbé: … the proposal, and we opened, December of last year. So we’ve been in business just a little over a year. It’s going fabulous. Our dispensary is called Greenhouse Wellness. It’s a departure from many dispensaries, we’re staffed with doctors, nurses, as well as other people who are very smart in the industry. It is a beautiful med spa like environment, and we see the sickest of patients here, and because of that, and because of our knowledge with patients, that’s really what launched us into Blissiva.

Leslie Apgar: Yeah, we noticed really early that women were underrepresented in the industry, and given that women had been complaining to me for 20-something years about what hurts and what ails them, and given my knowledge of the female anatomy, and the physiology, cannabis really seemed to be a perfect fit. And so we decided to put our heads together and we said, “Hey, there’s a real need here. We could really do something cool.” And so we did. We had watched our patients complaining of sleep and anxiety, and obviously that’s pretty common in the general population, but certainly in the female population, and that’s why we decided to tackle those symptoms with our first pen, which was the Balance pen.

It was designed intentionally to have CBD and THC in it, and also to have just the perfect terpene mix to address those issues It’s soft, it’s not like what’s available in the recreational market, it’s just enough to take the edge off. We really specifically approached it so that it would be attractive from every angle, not only did it look nice, but it felt nice, it tasted nice, it had pretty graphics, and we knew exactly what we wanted it to be because we’re women ourselves, and again, I’d been taking care of women for so many years, but it was really well received, I mean, patients were delighted that they were being, sort of celebrated.

Gina Dubbé: The result of an inhale Blissiva is like an overdue massage, or glass of wine, or a deep breath. There’s no real psychoactive effect other than to just take a deep breath and allow you to relax a bit.

Leslie Apgar: We really, sort of tongue in cheek, were thinking about the soccer mum who’s on the side of the soccer field with a to go cup in her hand, and while like you think that it’s coffee, or something, it’s really vodka. And so it was really sort of in place of that to go cup. It was, she’ll have a Blissiva in her hand, and she’ll be able to sort of concentrate on her kids soccer game, and get rid of the stress of the traffic she was just sitting in, or her marriage that’s crumbling, or her problems at work, and just take the edge off, because we had heard those stories again, and again, and again.

TG Branfalt: So since you both come from outside of the space, can you tell me a bit about the development process? You know, who did you talk to? What were you looking for?

Leslie Apgar: You know, it’s funny, Gina and I have approached this the same way we approach kind of everything, which is, what would we want. If we were sick and we needed medicine in the cannabis space, what would we want the experience to feel like for us? And because of the way that the system is in place medically, meaning that you don’t get a doctor’s prescription to come in and be told what to do, we felt that it was super-important to educate our staff out of the gate, so that we were going to be a resource for patients to get educated, and we were going to be the people to help educate then the state, and the other providers. So we really spent a lot of energy on education, education, education, and that meant that I had to get educated myself, obviously, because none of this was taught in medical school, so I did that. And we set it up kind of like a residency program, so I’m the medical director, and then we have nurses, and sort of chief residents that are under us, and honestly, they’re smarter than I am at this point, which is fantastic.

And as far as the actual space, we wanted it to be comfortable. We actually went to the West Coast and visited dispensaries, so we could say that we’d been there, done that, because we really started from square one, and one of the things we noticed was the security guard standing outside, and maybe metal detectors or things, and it was really very off-putting, so we wanted to create an environment that was just welcoming, and friendly, and clean, and so when we decided to focus on Blissiva, again, what would we want? What effect would we want, and what did we want it to look like, smell like? Et cetera, et cetera.

Gina Dubbé: So we went through a long vetting process. We looked at all the research, primarily that was done in Israel, and then met with chemists here, selected the terpene profile that we knew would work the best, because interestingly, women are more than twice as likely to develop an anxiety disorder as men are, and there are so many different biological and psychological factors that impact mental health treatments in women versus men, that we wanted a special, kind of recipe for Blissiva, because the brain is involved in the fight or flight response, and in women, that’s more readily activated and stays longer.

Leslie Apgar: Mm-hmm (affirmative). And it’s funny because our bodies as women are really wired for cannabis very differently than men, and I think it was high time that we started to address that, no pun intended.

Gina Dubbé: And the interesting thing with Blissiva is, it tastes and smells exactly the same. We started out with two different flavors, Cool as a Cucumber, which is a cucumber lime, and Vanilla Chilla, which is a straight vanilla. It smells exactly like it tastes, which is lovely, light, and not cannabis like, and so it’s very discreet. It took us about six months to develop, we had some prototypes done. We are on the precipice of announcing a major relationship and roll out here shortly.

TG Branfalt: So Dr. Apgar, I’ve got to ask you, you know, you had mentioned that, that cannabis isn’t really something that’s taught in medical school, and I have spoken to many physicians who say this as well. Was there any hesitation on your part entering the space because cannabis is still not really a mainstream therapy in the medical community at large?

Leslie Apgar: Yes, absolutely. Yeah. Honestly, it’s a combination of factors as to why I decided to take the plunge. Number one, very early on in my career as a practicing OB/GYN, it was very clear to me that traditional medicine was never going to pay off my med school loans, and I knew that I had to own my own business, or do something alternative, or outside of traditional medicine that’s going to pay off my debt. I actually opened up a medical spa in 2008, and that is actually how I paid off my medical school debt, and I dabbled between OB/GYN, and the med spa for years, and Gina was a big part of the courage that I had to do that in the first place. She has always said that you should re-pot, hah-hah, yourself, every 10 years or so, and that’s not something that doctors ever do. You spend so many years training to be your specialty, and then you really learn how to do it while you’re in practice, that’s when you really get good at it, so to leave and to do something else is really sort of unheard of.

So because I had had success in running my medical spa, and because of my sort of dissatisfaction with the way that traditional medicine was going, it was an easier decision to take on. I had already been on the receiving end of some fellow colleagues who were turning up their noses at me, and you know, “Why is she doing this? Who does she think she is?” And also, I just sort of felt like I was ready to take on the fight, the national fight. I think that obviously the options that we had to treat patients are so limited, and traditional western medicine tends to put Band-aids on things, instead of actually go to the root of the problem, and cannabis is more of a medical modality that can create balance and health in the body so that the body can then run at its best, and that was an idea that was very attractive to me.

TG Branfalt: And Gina, you had said that you had retired? What-

Leslie Apgar: Yeah, for like 10 minutes.

TG Branfalt: Why did you decide to un-retire and focus on this industry?

Gina Dubbé: Well, I truly believe you have to re-pot yourself, right?

Leslie Apgar: Mm-hmm (affirmative).

Gina Dubbé: So I had my first 10 years in my career as a hardcore engineer. I’m a licensed professional engineer in a couple of disciplines, and I designed avionic warfare gear, it was an interesting career, and then I took a company public and went into the venture world. Once we sold that, absolutely loved being a venture capitalist, when that fund was done, I retired, started a little ice pack company, mainly to teach my children the entrepreneurial process. When we sold that, I retired again, and then when we were approached with cannabis, I thought, “This is like the internet was in the early 2000s. We have got a fundamental change in how we live and do business. It’s the green rush.” And so I decided it was time to step in and do something different. Now bidding this and winning was a shock to both Leslie and I-

Leslie Apgar: Oh, my gosh.

Gina Dubbé: No one was more surprised than we were.

Leslie Apgar: Yeah. Mm-hmm (affirmative).

Gina Dubbé: That being said, it is one of the hardest things I’ve ever done in my career. We won. The first thing that happened was my bank called and invited me to leave the bank. This is the bank that my children’s little savings accounts are in, my mortgage is in, and they said, “You won a medical marijuana dispensary, we don’t want you as a banking client.”

TG Branfalt: Unbelievable.

Gina Dubbé: Because it’s federally illegal.

TG Branfalt: Yeah, yeah.

Gina Dubbé: And you know, I quickly told them, when they asked all the men who won to leave the bank, I would leave too, until then, they had my business. And they backed off.

TG Branfalt: Wow.

Gina Dubbé: Even like finding real estate, no one wanted us.

Leslie Apgar: Uh-uh (negative).

Gina Dubbé: The hardest thing of opening the dispensary was finding real estate.

Leslie Apgar: You know, TG it’s been such an interesting thing for both me and Gina to negotiate this space. I mean, as a physician, usually people call you back, usually you’re not a pariah, but we really felt like pariah’s of society. It was very strange that nobody wanted our money, nobody wanted our business, they didn’t want to be associated with this. It’s been a very interesting test for our egos, you know, don’t take things personally, et cetera, et cetera, but it’s certainly, we ran into troubles that we wouldn’t have foreseen.

Gina Dubbé: For example, I have a friend that’s been a friend for 20 years, 30 years, who just can’t conscion this particular industry, and I asked her, “Can’t we agree to disagree?” And the answer was no. And so I think that people think that this is easy, and it’s a panacea, when its really very difficult.

TG Branfalt: That is really, absolutely outrageous. I just want to note that. I want to take a step back for a quick second and talk more about the women’s health aspect of what you guys are doing, and there’s sort of three questions that I’m going to ask you, and you can sort of answer all of them, or some of them in part, however you’d like. What are the conditions and ailments that predominantly affect women could be targeted by cannabis? I know the Blissiva pen is focused on anxiety. And are members of the women’s health community taking cannabis seriously as a potential therapy? And then finally, are there more effective dosing methods for women’s health products that target women’s health issues better?

Leslie Apgar: Great questions. So the conditions that we are targeting right now, that patients have been talking to me about for years, and years, are in large part a lot of hormonal disturbances. We have the PMS, and the post-menopausal symptoms, which can present with a bunch of anxiety. So we also have chronic pain, chronic pelvic pain, endometriosis, we also have difficulty with sleep, so we have some definite conditions that affect women intensely, and as you are exposed to more studies, and we see more data coming out, we’re understanding the role that hormones, especially estrogen, play within our own endocannabinoid system, so that some of the dysfunction seen in my OB/GYN history, say with, with recurrent losses, or pre-term labor, or unexplained infertility, as well as the change in patient’s moods associated with different stages in their life, might have something to do with the deficiency in the endocannabinoid system and the relationship of the endocannabinoids to estrogen. So it’s really interesting to see how that might get applied in the future.

As far as how to take the medicine, most of our patients are really only familiar with vaping or smoking, because that’s all they’ve ever had access to, but the educational opportunities are so plentiful, and I don’t necessarily know that it matters men versus women as far as how to take the medicine. I think oral absorption is so much more important, and we can get into why that is, you know, the role of the liver, et cetera, et cetera, but most patients are not taking their medicine in a way that’s going to actually supplement their endocannabinoid system, I mean to vapor, to smoke is not going to necessarily do it. So we spend a lot of time educating patients on how important it is to ingest the medicine.

Now specifically for women, obviously we have a lot of sexual dysfunction, and as a gynecologist, that’s all I’d talked about for, I mean there would be days where that was all that anybody wanted to talk about is pain during sex, or lack of libido, et cetera, and certainly there are vaginal suppositories and vaginal applications of cannabis that are very exciting that we’re working on with our Blissiva line.

Gina Dubbé: The interesting thing though is only 80% of our patients are women for Blissiva. We have men who’ve tried it, and love it.

Leslie Apgar: Love it. Right? In fact, I’ll do consults with guys, and they’ll talk to me about their anxiety and their problems sleeping, and I just kind of say, “Hey, would your testosterone levels be bothered by the fact that I’m going to offer you this really pretty, purple, exposable pen?” And they’re like, “No, if it works, I’ll take it. I don’t care what color it is. I don’t care that it’s marketed towards women.” And so, and they love it, and they come back and they want it as well. So that’s been entertaining, because it’s not exclusive for women, we’re just, you know-

Gina Dubbé: It’s just oriented toward them.

Leslie Apgar: Yeah.

TG Branfalt: So it’s been reported that women are among the fastest growing segments of cannabis users of virtually any side-by-side survey that you see from various medical cannabis companies, it’s consistently women are up several percentage points, why do you guys think that that’s happening?

Leslie Apgar: Well, number one, there’s no calories in it, like there is in wine. Okay, so that’s huge. Number two, I think that women are very interested in health, and because of the way that cannabis works, and because of the balance that it creates in your body, women are very receptive to that, I mean they’re all about wanting to lead a healthier lifestyle.

TG Branfalt: And I mean, why do you think, it’s not like the fact that cannabis has less calories has changed, right, compared to wine? So why do you guys think that women were not as robust a customer base in the earlier stages of the market?

Leslie Apgar: Well, because they weren’t marketed to. I mean nobody’s been having the conversation. I mean it seems like the taboo of this is just not as severe anymore and that people are asking questions, and obviously as more and more states become legal, and cannabis exposure becomes greater, the conversations are happening more and more.

Gina Dubbé: I also think that you must appeal to a woman at a different point in her life cycle. You do not want a pregnant woman-

Leslie Apgar: Right.

Gina Dubbé: … to be using cannabis and/or CBD, you just don’t, so you lose that many years in a woman’s fertility and cycle. We do find that a lot of our patients, our average patients, shockingly is 60 years old. It’s not the 20-year-old stoner that people think about when they think about cannabis, it’s a 60-year-old person who typically is now suffering from anxiety, or localized pain, or has Parkinson’s, or cancer. I mean, sadly, much of our practice is cancer and Parkinson.

TG Branfalt: Was that surprising to you that that its turned out to be sort of your average customer?

Leslie Apgar: Well, you would not believe, our mouths have fallen open so many times. I mean every time we think we know what we’re doing, and we think we know what’s going happen, yeah, not so much. It’s been crazy how much sicker, and how much older our patients have been, and I think that that speaks to our significant medical approach, that we’re known in the community as being the ones that you go to if you’re sick, or you’re older, whatever. A lot of patients will have gone somewhere else first, and then maybe not had the greatest of educational opportunities, and so they’ll come to us for education, but I mean, don’t you think that’s the thing you were most surprised on?

Gina Dubbé: I was surprised. I figure we would have the 23-year-old male, on a skateboard, with a black hoodie.

Leslie Apgar: Right.

Gina Dubbé: And we don’t have any of those.

Leslie Apgar: Mm-mm (negative). And you know, even the ones we do get, when you actually talk to them, funny enough they’re treating a medical problem. Nobody’s ever taken the time to investigate it, and potentially they never have taken the time to investigate it, but if you ask the questions, there’s a lot of anxiety and PTSD in there that patients have just been using recreational cannabis to treat.

TG Branfalt: So I know that the answer to this question’s going to be yes, so you know, do cannabis co companies focus on women need to market their products differently? How do you have to market it differently aside from sort of the purple packaging? What do you have to do differently?

Gina Dubbé: Well, there’s a number of things. The first one of which is figuring how to reach that demographic, right? Because, typically, if I have a Sour Diesel, most men have heard of that, understand it, resonate it, but let’s talk about customer acquisition for a moment, how do you reach a 50 to 60-year-old woman that’s not on a cannabis list serve? It’s very difficult. We have to do outreach in the market. We talk to the pain physicians. We talk to OB/GYNs. We do marketing sessions. We do cannabis insight round tables at our place. It is a very different place to market, and when you add the federal regulations, and the illegality of the product, it’s just difficult, we can’t boost on Facebook.

Leslie Apgar: We also are trying to take barriers away. So touching on what Gina had just said, you know, the name Sour Diesel, while a lot of people may know what that means, to somebody who’s never tried cannabis or has not really been exposed to the cannabis world, they don’t know what that means, and it’s fairly off-putting, these names, I mean these, you know, AK-47, I mean, are you kidding me? That’s a barrier. If you’ve already got something that people are a little nervous about trying, and they know that it’s federally illegal, and they’re a little hesitant, we’re trying to decrease the barriers to them actually trying the product. So we want to create names that actually mean something, so that patients can expect to know how they’re going to feel when they choose a certain strain name, and we want to have a very easy way in which they can use the medication, especially our older patients who have never rolled a joint, smoked, have no idea what we’re talking about. So we do try and approach this from a sort of user-friendly perspective, especially as we are appealing to women specifically.

TG Branfalt: You guys have mentioned several times terpenes, and there’s still a lot of research to be done on what they do, what they are. With sort of your individual backgrounds, and your patient base, what is your approach, I guess, to explaining what these are?

Leslie Apgar: So terpenes are the magic, right? I really feel like terpenes are the most important part of the plant, funny enough. If I could be Queen, and I could redo this industry from the beginning, I would focus on CBD as being the most important molecule, then THC, and then the terpenes. The terpenes are, like you said, we have only just scratched the surface, and there’s so much more that needs to be done with terpenes and flavonoids, and all of the other components, I mean there’s something like 400 to 500 different components in the plant. But one thing that also surprised me, specifically, is that Gina and I really didn’t want to focus on the flower at all, we thought it was dirty and tawdry, and not a great way to delivery the medicine, and we thought, “Oh, we’re going to move toward 80% concentrates, and 20% flower.” And the doctor in me has been astonished at how the plant knows how to do things better than we do. Mother Nature has created something that is very, very delightful and smart. It’s very intelligent. So for us to try and replicate that is a little difficult.

So I think I have certainly had a realization that my goal to be 80% concentrate and 20% flower is maybe not entirely correct. So when you talk about terpenes, we have to look at the actual flower, and how the plant is put together to try and learn some of that magic that happens with terpenes.

TG Branfalt: So you guys are my first guests actually from Maryland, so I sort of want to switch gears a little bit, and talk to you about Maryland, which had some issues rolling out their program initially, I know that you guys were sort of shocked to get your licenses and that whole thing, but what has been your experience entering the cannabis space, specifically in Maryland, and what is the current state of Maryland’s market? Have they sort of worked out some of the kinks that initially hampered the program?

Gina Dubbé: Well, I think that Maryland has worked out some of the kinks, not all of the kinks. And that’s true with an evolving program pretty much wherever you are. Maryland licensed 102 dispensaries of which 70 are now open 16 months after the licenses were granted. Everyone was supposed to be opened within one year, that didn’t happen. Zoning, getting property was much harder than people expected. Getting funding, getting banking, getting all of the ancillary support services, harder, and I also think that many of the dispensary owners weren’t perhaps as business savvy as we might have hoped.

Leslie Apgar: Oh, yeah.

Gina Dubbé: And so that was a problem. So the program is rolling out. It has not been without its ups and downs. Tough market to be in, because highly regulated, everything’s tracked seed to sale, and they’re still putting the programs into place to track it. That being said, it’s getting better, day to day, but it wasn’t for the faint to heart.

Leslie Apgar: You know, one of the weird things about Maryland is that they required real time limit updates, which none of the software platforms could handle, so the volume of traffic coming into Metrc was so intense that it kept crashing the system. I don’t know if you had heard about that?

TG Branfalt: I did. I did.

Leslie Apgar: Yeah. It was, while I think, well intentioned, it was just not… What did you say? You used to say, it wasn’t fully baked, the system.

Gina Dubbé: It was just not fully baked.

Leslie Apgar: Yeah, it wasn’t fully baked when they rolled that out. Yeah. Do you want to touch on the environment as it is today with what Maryland had intended, and what it’s turned into?

Gina Dubbé: Well, that’s another hard one. When we were awarded, we bid for five dispensaries, in Maryland you could only be awarded one dispensary, so we got to choose from the five regions we bid in, which one we wanted to stay in. However, we found out that people aren’t following those rules now. Many of the large growers, or large national consortiums, are coming in, buying up dispensaries after the fact, or putting them under management agreements so that they don’t violate the rules, which means now you’re becoming a more vertically integrated environment, and it has become, “If I grow, and I have five dispensaries, I’m going to give my five dispensaries a better price,” which was not what Maryland intended, but what is happening in the industry.

TG Branfalt: Wow. Do you know if there’s any sort of effort by the legislature, or by the regulators to address this issue?

Gina Dubbé: Well, it’s on the floor of the House right now for decision. The growers, of course, want to be able to own six dispensaries, and if I do the math, there are 15 growers times 6 dispensaries each, that’s 90 dispensaries that will be vertically integrated, which will make it very hard for the independents. So we are hoping that Maryland will continue to embrace the independent operators like ourselves, who aren’t vertically integrated, and how the program was designed for. But it’s unclear right now. Big business is coming in under the covers. They want to own multiple dispensaries. So we’ll see, we’ll see what the small guy gets to do from here on out.

TG Branfalt: And what are you guys preparing for? You know, DC is supposed to have legal cannabis access, but because of federal regulation that basically controls DC, that’s not allowed. Are you guys preparing yourselves for an eventual rollout of legalized recreational cannabis in the capital?

Gina Dubbé: We fully anticipate that. We think that the dispensaries that are close to the boundary, the DC boundary will be affected by that. We believe that it’s also going to be on the ballot for legalization here in Maryland probably in the 2020 timeframe.

Leslie Apgar: Mm-hmm (affirmative).

Gina Dubbé: Who knows if it will pass, but we think that the tipping point has happened in the nation, as more and more states decide to legalize, or put their toe in the water with medical, eventually this is going to be a nationwide change.

TG Branfalt: So I want to ask you guys, what is your advice for women who may be skeptical about cannabis, and your advice for other female entrepreneurs who are looking to enter the space?

Leslie Apgar: Well, number one, get educated. Okay, like we had touched on it a little bit before, but I think only eight to 10% of medical schools have this in their curriculum, so the providers that are out in the world, who are giving advice to the patients, who are having a hard time with traditional medicine, and having their disease states not respond, you really have to do the research yourself because your physicians were never educated, so there’s plenty of really good research available, there’s really good resources available to read and get yourself educated. Women should absolutely jump at the opportunity to enter the space. I think that there’s a ton of opportunity, and what Gina and I tell each other, and tell our kids, and tell our friends is just do it. I mean just do it, don’t say no, just jump.

Gina Dubbé: Well, the other thing is, there is a wide ancillary market attached to cannabis that’s virtually untouched. And so while cannabis is illegal, if I’m selling other adjuncts, vape pen, or a case, there’s all kinds of products that we sell here in the dispensary that aren’t federally illegal and make for a great business, either part-time or full-time.

So we encourage men and women alike to really look at the industry, it’s burgeoning, it’s like the internet, we’re right at the beginning and there’s opportunity. Mm-hmm (affirmative).

TG Branfalt: And can you tell us where we can find more about your story and more about your products?

Gina Dubbé: You can go to www.blissiva.com, which is B-L-I-S-S-I-V-A. And Blissiva was named by a combination of the words bliss and sativa, because we think that that’s what women want.

Leslie Apgar: It was also a nod to anandamide which was the first endocannabinoid discovered, which is Sanskrit for bliss, the bliss hormone, so it was a really sort of mindful name, because we really wanted it to bring the bliss back into our own lives, and to our patients lives. And then we’re also at www.greenhousewellness.com.

TG Branfalt: Well, ladies, this has been a really enlightening conversation, maddening at times knowing what you had to go through to get the license and everything else, so I really appreciate your insight, and look forward to seeing how you guys do as the market matures over there in Maryland. Thank you so much.

You can find more episodes of the Ganjapreneur.com podcast in the podcast section of Ganjapreneur.com, and in the Apple iTunes store on the Ganjapreneur.com website you will find the latest cannabis news and cannabis jobs updated daily, along with transcripts of this podcast. You can also download the Ganjapreneur.com app in iTunes and Google Play. This episode was engineered by Trim Media House. I’ve been your host, TG Branfalt.

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USDA Issues First Organic Hemp Flower Certification

The U.S. Department of Agriculture has given South Carolina-based CBD brand Palmetto Harmony organic certification, marking the first time the agency has given the designation to a hemp flower product, according to a Bezinga report.

Company CEO Janel Ralph called it “one of the most important certifications” they could obtain.

“Many of the people that purchase CBD products are usually medically fragile, which is why it is very important for these people to have a level of security to know that there are no chemicals that could harm them going into their products.” – Ralph, to Bezinga

According to the report, organic status is among the more challenging USDA certifications to receive as crops must be grown in soil free of synthetic chemicals for at least three consecutive years. Farmers must provide the agency with a detailed list of items used in the cultivation process, including tools, containers, and the labels they use.

According to the USDA, certified organic product sales reached $7.28 billion in 2017 up from $3.12 billion in 2012. The Organic Trade Association says organic food accounts for 5.5 percent of total retail food sales.

Prior to last year’s federal de-scheduling of hemp by the Farm Bill, the USDA was unable to certify hemp-derived products as organic. Some hemp and cannabis companies did seek organic certification from private companies and non-profits in lieu of state or federal programs. In Maine, for example, the Maine Organic Farmers and Gardeners Association provided their certification for medical cannabis products grown in the state.

Editor’s note: The certification described above marks the first organic certification for hemp flower specifically, but it is not the first organic certification for any hemp product. This article was updated for clarification.

Haleigh’s Hope was officially certified in March 2019, making that the first organic certification for a hemp product since hemp was federally legalized in late 2018. The first-ever hemp product certification, however, was issued in 2016 but was rapidly rescinded by the USDA.

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California’s Expected Cannabis Tax Revenue Drops $223M

California officials are scaling back the state’s estimated cannabis tax revenues by $223 million through June 2020 amid slower-than-expected sales, the Long Beach Post reports. The state taxes both medical and recreational cannabis products at 15 percent but total taxes can be as high as 50 percent in some communities.

In Long Beach, city leaders cited slow cannabis sales as the reason for a projected $9 million budget gap. In the city, the overall tax on cannabis products is 33.25 percent, which includes the 15 percent state tax, an 8 percent city excise tax, and a 10.25 percent sales tax. Long Beach officials have discussed giving medical cannabis businesses a tax break and provide incentives for other businesses to reduce prices and bring in more operators.

In 2018, California raised just $345.2 million in cannabis tax revenues, which represented about half of what lawmakers originally expected. The lower-than-expected revenues are likely the result of the high taxes and the persistence of the illicit market.

California lawmakers are considering a measure that would reduce the cannabis tax rate from 15 percent to 11 percent – that bill was referred to the Appropriations Committee on May 1. A previous version of the bill passed that committee 16-1 on Aprrl 24.

In their report on the legislation, the committee said state taxes are not the only reason why legal cannabis businesses are at a disadvantage, citing local tax policies, licensing requirements, banking restrictions, and laboratory requirements.

“Absent cannabis taxes, legal businesses still would be at a significant disadvantage relative to illicit market operators,” the report says.

The committee also noted that if the tax-reduction law passes it would likely face a court challenge because, since it was a voter-approved initiative, it’s unclear whether the legislature can amend the law’s tax structure.

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Survey: Canadians Less Interested in Edibles Post-Legalization

Interest in edible cannabis products among Canadians appears to have waned with just 36 percent of participants in a Dalhousie University survey indicating they are interested in trying edibles – down from 46 percent pre-legalization, according to a Global News report.

Sylvain Charlebois, senior director of the university’s Agrifood Analytics Lab, said that despite edible sales set for October, the demand for “cannabis-infused food products” has dropped.

“What we are getting out of the survey is that people aren’t quite as excited or enthusiastic about cannabis in general,” he said.

“By seeing cannabis on the street and with many people consuming cannabis freely, we thought people would say once cannabis edibles become legal, it would be an opportunity for anybody to try cannabis.” – Charlebois, to Global News

Dr. Robert Strang, Nova Scotia’s chief medical officer of health, noted that under the current laws individuals can make their own edible products for personal use.

Additionally, the survey of 1,050 Canadians found that 37 percent of respondents consume cannabis in one form or another and 70 percent of consumers have already tried edibles. However, despite last October’s legalization of cannabis, 60 percent of the survey respondents still purchase their cannabis outside of the taxed-and-regulated system – which isn’t entirely surprising considering the nation saw a 17 percent price-per-gram spike following legalization.

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Denver Votes to Decriminalize Mushrooms

Voters in Denver, Colorado have taken the historic step of passing a city initiative to decriminalize mushrooms containing psilocybin, known most commonly as psychedelic mushrooms, according to a Harvest Public Media report.

During initial returns on Tuesday night, it appeared at first that the initiative would fail; election officials announced late on Wednesday, however, that Ordinance 301 had passed with just 50.56 percent of voter support.

The initiative does not legalize the federally prohibited mushrooms but does prevent city police and prosecutors from arresting and/or prosecuting adults aged 21 or older for the possession or use of psilocybin mushrooms. The grassroots initiative also states that adults who grow the fungus for personal use will be considered a low priority for city law enforcement.

“Our victory today is a clear signal to the rest of the country that Americans are ready for a conversation around psilocybin.” — Kevin Matthews, director of the Denver campaign, via Harvest Public Media

Supporters of the initiative pointed to research indicating the mushroom’s huge medical potential for the treatment of depression, addiction, and potentially PTSD. Other research has shown that the fungus is not addictive, contrary to the substance’s Schedule 1 status under the federal Controlled Substances Act.

Advocates of psilocybin mushrooms have announced plans to push for similar ballot initiatives in California and Oregon for the 2020 elections.

Colorado — of which Denver is the capital and largest city — made history in 2012 when voters there decided to legalize adult-use cannabis, which set the state down the path to creating the first state-wide taxed and regulated cannabis marketplace.

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Most California Cannabis Companies Don’t Use Tracking Software

Sixteen months after legalization, just nine of California’s 627 retail cannabis dispensaries are actively using a seed-to-sale tracking system – along with only 93 of more than 1,000 manufacturers and 254 of the nearly 4,000 licensed cultivators, according to an Associated Press review of state data.

Rebecca Foree, spokesperson for the state Department of Food and Agriculture, told the AP that the lack of tracking compliance is due to the state’s initial issuance of temporary licenses, which she said made it harder to train license holders on the software “without causing significant disruption” to the industry.

Regulators are currently relying on a paper-based honor system using hard copy invoices and shipping manifests. A Bureau of Cannabis Control spokesperson told the AP that he was unaware of any enforcement cases prompted by fraudulent or altered paper records. According to the report, it’s unclear how often those records are reviewed by regulators.

“Track-and-trace was definitely supposed to be one of those tools to define who is operating in the legal market and who is not. We clearly are not getting the results we were hoping for.” — Josh Drayton of the California Cannabis Industry Association, via the AP

California officially launched Franwell Inc.-supplied track-and-trace software Metrc on January 2, 2018 – the day after legalization took effect. Only annual license-holders were required to use the software and the first annual license wasn’t issued until November 2018. Many of the industry’s temporary licenses have expired, the report says; all new licensees are required to use the software.

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Health Canada: Cannabusinesses Need Full Grow Site Before Applying

Would-be cannabis industry operators in Canada will have to show that they have a fully built cultivation site that meets the nation’s cannabis production regulations before they can even apply for a license, Health Canada announced on Wednesday. The agency said the changes are an opportunity “to better allocate resources.”

Health Canada indicated that 70 percent of applicants who pass the initial paper-based review over the past three years for both medical and recreational licenses “have not yet submitted their evidence package to demonstrate to the Department that they have a built facility that meets the regulatory requirements.” The agency said they are using “a significant amount of resources” to review these applications, which is causing longer wait times for “more mature applicants.”

Currently, there are more than 600,000 square meters (1,968,504 square feet) of cannabis being cultivated for both the medical and recreational markets in the Great White North, which could yield 1,000,000 kilograms (2,204,623 pounds) of cannabis per year. The agency said those figures are “roughly equivalent to independent estimates of the total cannabis (legal and illegal) consumed in Canada.”

Since May 2017, Health Canada has licensed more than 129 new sites, which is nearly triple the number of licensees in the four years prior.

Last month, Statistics Canada reported that prices for both legal and illegal cannabis prices had jumped 17 percent since legalization, from C$6.85 pre-legalization to C$8.04 post-legalization.

Regulators are expected to make changes to the industry this fall including regulations for edibles, which are not currently available; changes to the physical security requirements; and updates for Good Production Practices.

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A small hemp plant that only recently sprouted from the soil.

Pittsburg, California Enacts 45-Day Hemp Business Moratorium

Lawmakers in Pittsburg, California have enacted a 45-day moratorium on hemp businesses, the East Bay Times reports. The City Council approved the ban after Assistant to the City Manager Jordan Davis cautioned that the city’s current cannabis rules do not address hemp and the city needs an opportunity to draft industry regulations.

Davis said that hemp carries “similar concerns” to THC-rich products because it’s “basically indistinguishable from other types of cannabis” and has potential odor issues. The moratorium includes personal cultivation, but Davis said under the city’s rules “it’s probably something that would be allowed.”

“This would prevent any use of the biomass in the city of Pittsburg. You could not cultivate or extract from it (hemp) or do anything with the plant biomass.” – Davis, during remarks to the Pittsburg City Council, via the East Bay Times

The ban would not stop sales of CBD products in the city from already approved products, he said.

Editor’s note: A previous version of this article incorrectly stated that the 45-day hemp business moratorium described above was established in Pittsburgh, Pennsylvania but the moratorium was actually passed by the City Council for Pittsburg, California.

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Texas House Approves Second MMJ Expansion Bill

The Texas House has given preliminary approval to a measure that would expand the state’s medical cannabis qualifying conditions list and increase the number of dispensaries throughout the state but it does not increase the THC content from 0.3 percent, the Texas Tribune reports.

The voice vote on state Rep. Stephanie Klick’s bill came a day after lawmakers in the chamber approved 128-20 a similar measure introduced by Democratic state Rep. Eddie Lucio III. Lucio’s bill would add Alzheimer’s disease, Crohn’s disease, post-traumatic stress disorder, muscular dystrophy, and autism to the list and raise the number of dispensaries from three to 12. Klick’s bill would only allow more dispensaries to open in the state if the Department of Public Safety determines there is a patient need. Her bill also does not add autism to the qualifying conditions list because, Klick said, “the data is not really there.”

Both bills face an uphill battle in the state Senate despite the Republican Party of Texas approving a plank last year supporting the expansion of the state’s 2015 Compassionate Use Act.

This is the third cannabis-related bill passed by the House this session. Last month, the chamber approved a decriminalization measure 98-43 but Lt. Gov. Dan Patrick and Criminal Justice Committee Chairman Sen. John Whitmire, a Democrat, indicated the bill was dead on arrival in the upper chamber – which could signal the fate of the medical cannabis bills.

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Jimmy Buffett Launches New Cannabis Brand

Jimmy Buffett is joining the list of celebrities with a cannabis brand by partnering with Surterra Wellness on a brand called Coral Reefer.

The line will include concentrates and vape pens and cartridges with names like Surfin’ in a Hurricane, Cabana Daydreamin’, and Seas the Day. The TideRider pen reportedly looks like a mini surfboard.

“It never dawned on me that Coral Reefer would be anything other than a cool name for a tropical band born out of the Key West lifestyle in the mid-70s. But life is supposed to be about having fun and staying healthy enough to enjoy it.  I think Coral Reefer will help a lot of folks do that.” – Buffett, in a press release

The products will be distributed exclusively at Surterra dispensaries throughout Florida with plans to hit shelves in California and Nevada by the Summer. Surterra Chairman and CEO William “Beau” Wrigley, Jr. said the partnership comes at a time when the “perceptions of cannabis continue to evolve.”

“Coral Reefer provides a new platform to expand the conversation around cannabis use and change the misconceptions of this truly beneficial plant that can improve the health of millions of Americans,” Wrigley said in a statement.

Buffet joins actor Seth Rogen, lifestyle celebrity Martha Stewart, director Francis Ford Coppola, former boxer Mike Tyson, former National Football League running back Ricky Williams, country star Willie Nelson, rapper Master P, Canadian comedians the Trailer Park Boys, comedian Tommy Chong, actress Whoopi Goldberg, rappers the Wu-Tang Clan and Snoop Dogg, and others in launching cannabis brands or partnerships.

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Family Video to Sell CBD Products In 250 Stores

Family Video is joining other national chains in selling CBD products, according to an MLive report. The video rental chain is carrying Natural Native CBD products at its more than 250 stores throughout the U.S.

Levi Dinkla, president of enterprise development for Highland Ventures Ltd., the parent company of Family Video, told MLive that “a lot of people use CBD to relax” – the same thing that “a lot of people use movies for.” Dinkla indicated the move came directly from company owner Keith Hoogland, who found relief from his tendonitis using CBD products.

Dinkla said Family Video stores are usually located in smaller communities that tend to be the last places for new trends and the company sees their role “as an educational resource for communities.”

The company is offering sprays, oils, lip balms, gummies, salves, water, and pet products, according to Jason Yuhasz, regional director of operations for Highland Ventures. Currently, they require purchasers to be 18-or-older, despite there being no laws on age restrictions for CBD products.

“They came in here to rent the Avengers; they didn’t come in here to get pain relief. But when they return their movie, in five days – ‘Oh. I’m going to give that a shot now.’ And that’s how most of our sales turn out.” – Yuhasz to MLive

Dinkla said the CBD products are bringing in new customers who end up opening video rental accounts.

In March, national pharmacy chains CVS and Walgreens announced they would start selling CBD topical products.

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Katherine Long: Creating Impactful Cannabis Brands

We recently caught up with Katherine for a Q&A session about how cannabis brands can stay true to their identity while appealing to mainstream consumers, the current state of branding in the cannabis industry, how Illustria approaches the branding process for their clients, and more!


Ganjapreneur: A lot of businesses in the cannabis industry arise from close-knit communities, founded on idealism and a strongly-held belief in the positive impact of what they are doing. With this in mind, how should a business owner in the cannabis industry think about their brand? How can they remain true to the spiritual core of their identity while still focusing on appealing to customers and being competitive in a market that is increasingly going mainstream?

Katherine Long: Own it. Recognize why you’re doing what you’re doing, and don’t lose it. That core belief in your “why” is critical to developing a strong brand. It’s a common misperception that you have to radically change who you are or “sell out” in order to broaden your appeal. A lot of brands feel like they have to change who they are to go mainstream, but end up appearing inauthentic and tone deaf.

A brand’s “why” should not change. That being said, the “how” to tell that story should be flexible and adapted to the needs of the audience. Different audiences have different needs and concerns, and they’ll want to be spoken to in different ways, but they can still be aligned with your core mission.

I’ll give you a recent example with one of our industry clients, Bluebird Botanicals. Bluebird is strongly mission-driven, and they see hemp as a gift from nature with many healing properties. Their entire company is built around the idea that everyone deserves access to hemp, in order to live happy and healthy lives. They have never deviated from that position and back it up with their pricing and commitment to low-income and veterans programs.

They worked with us to keep that spiritual core, while tailoring it to a growing mainstream audience. Bluebird’s initial audience cared a lot about CBD’s health benefits and enjoyed hearing about it through the product’s technical details, such as the potency and number of cannabinoids per milligram. We found that their new mainstream audience also cared about CBD’s impact on their health. However, because they lack a technical background, they resonated with a message focused on CBD’s lifestyle benefits. This allowed Bluebird to stay true to their core mission of helping people live happy and healthy lives, while communicating with a different audience.

 

Bluebird Botanicals Brand Example

With your recent rebrand for Bluebird Botanicals, what were the goals at the outset, and what were the results after you launched?

When we first started working with Bluebird, we realized that they had a really powerful story that just wasn’t being told. Their commitment to care, altruism, and transparency is second to none.

Our goal with the rebrand was to tell their story in a way that was authentic and also resonated with the mass market. We wanted to move away from the stigma associated with cannabis, and show consumers that they are a trusted, legitimate brand. Finally, we wanted to provide clarity around the product. They had a bunch of SKUs, but no system for the retailers or the customer to understand them.   

We rolled out the rebrand at the end of January, and the results were fantastic. It also generated strong interest from national retailers. We’re definitely staying tuned to see how Bluebird’s brand evolves!

Speaking of stigma, what role does branding play in breaking the stigma associated with cannabis? What are some ways that cannabis companies can actively work to counteract decades of misinformation and anti-cannabis propaganda with their marketing? What should they avoid?

Branding plays a large part in breaking the stigma associated with cannabis. Branding can shift the audience perception away from stigma and toward legitimacy by conveying a sense of trust, safety, and professionalism.

To actively counteract the misinformation, companies can associate their product with categories that people are already comfortable with and stay away from cannabis-heavy imagery.

For example, when we rebranded New Frontier Data, we made a conscious choice to stay away from the marijuana leaf and counterculture references. We made the decision to associate them with traditional market research and analytics firms. Their mission is to bring transparency into the industry and provide objective data to operators, investors, and researchers. They saw Wall Street as a big growth opportunity, and Wall Street is traditionally very conservative, so the brand had to communicate legitimacy through professionalism and trustworthiness. This worked well, as they picked up Bloomberg and Boston Consulting Group as clients shortly afterward.

Many adult-use cannabis markets, as well as the national CBD landscape, are awash in competition, making it extremely difficult for smaller brands to establish a foothold. When it comes to packaging and retail presentation, what are some ways that cannabis brands can stand out from the crowd?

The trick to getting your brand into retail stores is to have people know who you are before they go to the store, and to have them asking the retailers for you.

Retailers look at a variety of different metrics when they consider taking on new brands. Packaging is part of their equation, but you won’t be able to sway a decision based on packaging alone. Retailers are evaluating you based on the overall strength of your brand. All of the basic needs need to be met: your packaging is professional and looks legitimate, it’s clear what you’re about and who you serve, and you have lots of loyal customers who are willing to go to bat for you.

For any brand wanting to establish a foothold, we’d recommend trying to strengthen your overall brand by developing a clear point of view that resonates with customers. Packaging is part of that, but without a crystal clear brand position, it won’t generate the full benefits. Focus on being the best you can be, not on what the competition is doing, and you’ll naturally stand out both in the crowd and on the shelf.

As a cannabis startup, what are the benefits of working with an agency who specializes in branding, as opposed to working with a trusted friend or family member who has some graphic design experience?  How should one go about selecting a branding partner to work with?

I’ll start off by saying that branding is not the same as graphic design. A brand is not a logo. Building a brand is about communicating what differentiates you from others in the market and why customers should choose you. So in this case, it depends on the company’s goals. If the startup is looking for pure design, they may very well be better served by finding a friend who can create a logo for them. But if they are looking to create a brand that will resonate with customers and win the market, it would make more sense to work with a branding agency. They’ll be more expensive, but the business results are worth it.

As far as choosing a partner, you should find a group that has a clear process that emphasizes talking to customers and looking at the brand objectively. Look for substance, and don’t be fooled by beautiful graphics and aesthetic. While great design is part of it, it’s not all of it. And most of all, find a partner who shares your values and is the right fit for you. After all, you are trusting them with your brand!

When Illustria works on a branding project for a new client, what does the process entail? How long does it take, and what does the final result look like in terms of deliverables?

Every engagement starts with Discovery, which is centered around understanding you and your audience objectively. We interview you and your leadership to understand your vision. We talk to your customers to understand how they experience your brand and the value you provide. We look at your consumer and order data to find behavioral insights. From this research, we develop findings and a recommended brand strategy.

This strategy is then used to create your brand positioning and messaging, which is how you sound, as well as your visual identity, which is how you look. This ensures that both how you sound and how you look align with the overall brand strategy of how you’re positioned in the market. After you know how you sound and how you look, it’s a matter of applying it and rolling it out to the world, for example in your website and packaging.

All said, the process typically takes around three months to complete.

When should an established company think about investing in a rebrand?

The short answer is, whenever they have a goal in mind and are ready to commit to change.

Businesses often come to us when they reach an inflection point and are ready to think about their next chapter. Within that context, a rebrand addresses specific business challenges. Perhaps they’re experiencing a market shift and need to communicate to new audiences. Perhaps they have been trying to get into more retail stores, but feel that their existing branding does not accurately reflect themselves. Perhaps the competition is heating up and they’re losing market share and want to reverse that trend.

When you know what you want, and you’re committed to doing whatever it takes, that’s the perfect time to think about rebranding.

What is the most common mistake that new companies make when it comes to their brand?

The most common mistake is thinking that brand is for big companies, and something that you can worry about later. Brand is the sum total of all that you do. This goes beyond the design of your logo and the look and the feel of your packaging. Brand is how others perceive you and your actions. It is your differentiator, it is your why, and it is the reason customers choose you. It’s something that you have to start investing in from day 1. Even if you cannot yet engage an agency, you can still think about your brand and customer experience at every touchpoint. Even something simple like choosing to invest in a customer care line, thinking about how you talk to your customers, that all affects your brand. Own your brand before others start defining your brand for you.

Where do you see the state of cannabis marketing in 5 years?

In the last five years, cannabis marketing has gotten more sophisticated. Five years from now, cannabis marketing will be even more sophisticated. At that point in time, cannabis will be well into the mainstream market.

Right now, the cannabis market is very fragmented with many brands and competitors. But five years from now, we will probably see 2-3 leading brands in each cannabis category (vapes, CBD, flower, etc.) who have managed to “own” that category and will have the majority of the market share. Through mergers and acquisitions, we will see a lot of consolidation, with a few big winners.


Thank you for taking the time to answer our questions, Katherine!

To learn more about Illustria, you can visit their website.

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Report Projects $13B Hemp Market by 2026

The global industrial hemp market could reach $13.03 billion by 2026, representing a growth rate of 13.7 percent, according to a new report from analytics firm Reports and Data.

The researchers suggest there will be increased demand for high-quality cosmetics, health food products, and protein supplements following “an increase in the level of disposable income” and population growth – much of which can be produced by hemp.

According to the report published this month, hemp seeds used in foods and beverages comprised 45 percent of hemp’s market in 2018, while textiles made up 20 percent of the market share. Reports and Data anticipates hemp seeds will experience a 13.4 percent compound annual growth rate through 2026 and expect textiles will grow at almost the same pace, 13.2 percent.

The Asia-Pacific market will grow at 14.2 percent through 2026 – a higher rate than the rest of the world, the report says.

The researchers note all of the industrial applications for hemp, including biofuels and building materials, will help drive the industry and credits the passage of the Farm Bill in the U.S. last year which removed cannabis from the federal drug schedule.

In February, New Frontier Data released their Global State of Hemp report that found global retail hemp sales reached $3.74 billion last year – a compound annual growth rate of 15 percent – and project it will be worth $5.73 billion by 2020.

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Adult-Use Bill Introduced in Illinois with Governor’s Support

Illinois lawmakers and Gov. J.B. Pritzker unveiled adult-use legalization legislation on Monday, eyeing to begin issuing industry licenses by May 2020, WQAD reports.

Pritzker said the measure “starts right some historic wrongs” of cannabis prohibition against minorities and includes a $20 million low-interest loan program for social equity applicants.

Pritzker included legalization in his campaign platform and plans to deposit 35 percent of the tax revenues in the state’s general fund, 25 percent to the Restoring Out Communities fund, and 10 percent to pay overdue bills. His office did not announce the proposed tax rates and fee schedules and it is not included in the bill text.

Pritzker did include $170 million from industry licensing fees in his 2020 budget, which begins July, 1.

State Sen. Heather Steans, the bill sponsor, said the plan balances the three goals for legalization – social justice, safety, and state revenue.

Having the governor’s support, though, doesn’t necessarily mean legalization is guaranteed. In March, New Jersey lawmakers tabled a legalization measure – which Gov. Phil Murphy campaigned on and made “dozens of calls” in support of – due to a lack of legislative support.

New York Gov. Andrew Cuomo included legalization in his initial 2020 budget; but by March he had pulled it from his fiscal plans after fellow Democratic legislative leaders demanded it follow the traditional legislative path.

The Illinois measure has moved to the Assignments committee, which is chaired by bill co-sponsor Sen. Kimberly Lightford.

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Washington Gov. Signs Two MMJ Improvements Into Law

Washington Gov. Jay Inslee (D) has signed two important improvements to medical cannabis in the state.

The first bill, known commonly as “Ducky’s Law,” places Washington in a select group of only a handful of states who allow the administration of medical cannabis at schools, on buses, and at school events. Not differentiating between high-THC and high-CBD medical cannabis, the bill allows for “marijuana-infused products” to be administered to students who qualify for medical cannabis and who are registered on the Marijuana Authorization Database.

The bill also expands protections for school employees, students, and parents — but only a parent or guardian registered as a designated provider can administer the cannabis to students in order to avoid prosecutorial conflicts between federal and state law. A fail-safe section was added to the final bill that will stop the implementation of the law if the Federal Government, who still considers cannabis a Schedule I narcotic and therefore may cut funding to state schools.

The second bill, HB 1094, allows medical cannabis patients to renew their annual qualification using telemedicine technology if a medical professional determines an in person physical examination would be harmful. Additionally, these same patients are now exempt from registering in person and taking photographs at retail cannabis shops when registering for the “Marijuana Authorization database”. The bill also eliminates expired provisions requiring health care providers to report the number of authorizations issued throughout the state.

“Ducky’s” law is named after 9-year-old River “Ducky” Barclay, who suffers from a rare genetic disorder. The family discovered CBD helped with her seizures when Ducky was in 2nd grade and started coming to Olympia with her father three years ago to lobby for this bill.

“These two bills really go hand in hand. There are fifty kids on the MAD. Twenty we know of are like Ducky and are practically immobile due to mental and physical trauma caused by traveling. These will help families have better lives, but there is still more to do. Colorado allows nurses to give medical cannabis at schools and that is what we need here in Washington.” — John Barclay, in a phone interview

Father John Barclay said Ducky was too sick to come to the signing but was ecstatic the bill had passed when he told her. Commenting on the bill’s passage, Barclay told KING 5, “it’s humbling and overwhelming.”

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The Connecticut Capitol Building during a pink-toned sunset.

Connecticut Legalization Bill Passes Finance Committee

Connecticut lawmakers have amended the state’s adult-use cannabis proposal to include an undisclosed amount of industry-derived revenue be used for mental health and addiction services, according to a CT News Junkie report. The amendment was proposed by Democratic state Sen. Sean Scanlon who said he has “serious reservations about legalization from a public health perspective.

Under the previous version of the bill approved by the General Law Committee in March, all revenues from the recreational cannabis industry would have been sent to cities and communities most impacted by the drug war.

“I wholeheartedly agree that we should be building up communities disproportionately impacted by decades of misguided criminal justice policy but I also have serious reservations about legalization from a public health perspective and I offered this amendment to ensure that, should we legalize, a portion of the revenue will now go towards mental health and substance use disorder treatment.” – Scanlon, during remarks introducing the amendment, via CT News Junkie

The measure includes a 6.35 percent tax on gross receipts of retail sales, transfer taxes of $35-per-ounce of flower and $13.50-per-ounce of trim on growers, and a 3 percent local sales tax. Previously, Connecticut lawmakers had eyed an overall tax rate of 20 percent.

Last month, Democratic House Speaker Joe Aresimowicz came out in opposition of earmarking any of the new tax funds, because of ever-evolving budget needs. Under the measure, local tax funds would go back to where the sales occurred.

The amendment was approved by the Finance Committee 29-21.

Democratic Gov. Ned Lamont is supportive of legalization but did not include tax revenues from legal sales in his 2020 budget proposal. The bill is expected to move next to the floor for full consideration.

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Florida Legislature Approves Hemp Legalization

Florida lawmakers have approved a measure to legalize industrial hemp cultivation in the state, moving it to Gov. Ron DeSantis for his signature, the Associated Press reports.

The bipartisan bill passed the Senate unanimously and Republican State Sen. Rob Bradley called its passage an “exciting and historic day for the state’s struggling agriculture community.”

“There has been a lot of struggles in our agriculture community over the last several years, from citrus greening to the hurricanes, and they’ve had a devastating effect on many of our farmers. This is a lifeline. This is an emerging agricultural crop that can make all the difference.” – Bradley to the Associated Press

Agricultural Commissioner Nikki Fried was present on the Senate floor for the vote. She said the state has the “right environment” and “right conditions” for hemp production.

“We are known for citrus, so we’re definitely going to continue encouraging our citrus industry,” Fried told the AP. “If they need to utilize some of their property for hemp production, this gives them another option as we’re figuring out and finding a solution to citrus greening.”

Florida is the latest state to legalize hemp following the crop’s federal legalization last year via the Farm Bill. Last month, lawmakers in Hawaii, Iowa, and Oklahoma each sent hemp legalization measure to their respective governors, while the Texas House passed its hemp legislation to the Senate. Under the Farm Bill, state programs must be approved by the U.S. Department of Agriculture before they can be rolled out.

DeSantis’ office has not signaled whether he will sign the bill.

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