Washington Gov. to Issue Cannabis Pardons

1/07/2019

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At the Washington Cannabis Summit on Friday, January 4, Gov. Jay Inslee (D) announced he would exercise his constitutional clemency authority to pardon state misdemeanor cannabis convictions.

Known as the Marijuana Justice Initiative, applicants must have been over 21 at the time of their arrest. Also, only arrests that occurred between January 1, 1998 and December 5, 2012 will qualify.

Estimated to affect some 3,500 individuals statewide, the pardons will only be available for those with a clean record with just one misdemeanor cannabis conviction. In his presentation, however, Gov. Inslee said people with more than one misdemeanor cannabis conviction could still go through the regular clemency process to have those convictions pardoned.

Qualified individuals need only fill out an online form to begin the process of receiving the governor’s pardon. The initiative does not affect local or federal cannabis crimes.

“For decades, people have faced criminal prosecution for behavior that is no longer considered a crime in Washington. Inslee believes that forgiving these convictions will allow people to move on with their lives without these convictions causing additional burdens on people, their families, their employers and their communities. This is a small step, but one that moves us in the direction of correcting injustices that disproportionately affected communities of color.” Excerpt from the Marijuana Justice Initiative

Washington voted to legalize adult-use cannabis in 2012 but the state’s initiative did not address the expungement of any previous cannabis convictions.

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Drug Testing

Report: National Cannabis Use Up, Opiate Use Down

1/07/2019

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Positive drug test results are at their highest level in a decade, according to a report by Quest Diagnostics.

The report also shows that cannabis use has increased to record levels. Year over year, positive cannabis testing has climbed to 2.6 percent of the general workforce. In the “safety-sensitive” workforce, which includes pilots, commercial vehicle drivers, and workers in nuclear power plants, 0.84% of workers tested positive in 2017.

Also striking was the percentage of positive cannabis tests in the latest states to legalize cannabis. Nevada‘s positive drug testing rate climbed to 43%, Massachusetts was at 14% and California‘s was 11% in 2017. Those rates are significantly higher than before the states passed legalization in 2016.

“These increases are similar to the increases we observed after recreational marijuana use statues were passed in Washington and Colorado,” said Dr. Barry Sample of Quest Diagnostics.

Alongside the workforce’s cannabis use increase was a 17 percent decrease in the rates of positive urine tests for opiates.

“The depth of our large-scale analysis supports the possibility that efforts by policymakers, employers, and the medical community to decrease the availability of opioid prescriptions and curtail the opioid crisis is working to reduce their use, at least among the working public.” — Kim Samano, Scientific director, Quest Diagnostics, via the report

The results of the study can be seen in an interactive map on dtidrugmap.com.

While the increase in positive cannabis tests is concerning to some — especially the increased rates among safety-sensitive workforces — ultimately, more research needs to be done on the effects of cannabis on coordination and perception before a true judgement can be made.

Until then, it’s hard not to see cannabis as a potential tool for lowering the rate of deadly opiate use in the U.S.

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The purple glow of LED lights inside of a licensed Washington cannabis cultivation site.

New Jersey Towns Already Banning Adult-Use Industry

1/07/2019

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More than 45 towns in New Jersey have already moved to ban cannabis dispensaries as state lawmakers position to legalize adult-use cannabis later this year, according to a WNYC report.

The movement is led by a coalition of mayors, city councils, and law enforcement officials who argue that cannabis legalization will lead to an uptick in stoned driving and that cannabis dispensaries will attract unwanted visitors to their towns.

Meanwhile, state lawmakers in New Jersey are preparing to pass major cannabis reforms in the 2019 legislative session. Expansions to the state’s limited medical cannabis program and the full legalization of adult-use cannabis are both expected. A recent spat between Gov. Phil Murphy and state Sen. Steve Sweeney, however, has highlighted major differences between top members of the state’s Democratic party, which currently controls the government.

The anti-cannabis coalition is supported by prohibitionist group New Jersey Responsible Approaches to Marijuana Policy, a group that cites questionable data from post-legalization Colorado and other states — mainly traffic incidents — as reasons to continue the disastrous policies of cannabis prohibition.

Voter support remains in favor of adult-use legalization, with 60 percent of New Jersey adults expressing support for ending the plant’s prohibition in a recent poll.

Currently, 10 U.S. states plus Washington D.C. have legalized adult-use cannabis, with several more states — particularly in New England — poised to legalize in 2019.

 

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South Carolina Capital

South Carolina May Legalize Medical Cannabis In 2019

1/07/2019

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A new poll from Benchmark Research shows a strong majority of South Carolinians support legalizing medical cannabis, The Herald reports.

The new results show 72 percent of polled South Carolinians support medical cannabis legalization. This follows two other high-profile polls since 2016 that showed similar results.

Medical cannabis advocate Bill Nettles, previously the state’s U.S. Attorney under President Obama, was happy with the results. “Government officials need to get out of the way of the will of the people,” said Nettles.

Janel Ralph, executive director of Compassionate South Carolina patient advocacy group, said, “This is the third poll that shows that the people of South Carolina are in favor of medical marijuana. Legislators are going to have to start looking at it seriously now.”

In the state legislature, two separate “compassionate care” medical cannabis legalization bills have been approved. They were not, however, considered for reconciliation before the end of last year’s session.

While Democrats in South Carolina are strongly behind cannabis reforms, some law enforcement interests are still against legalization and claim it would lead immediately to full adult-use legalization.

Ralph, at least, is confident that the upcoming legislative session will result in a medical cannabis law in South Carolina. “It’s just time,” she said.

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Cannabis Retail

The High Road to Revolutionizing Cannabis Retail

1/04/2019

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Experiential retail is on the rise in every industry. Traditional brick-and-mortar stores now have to provide services and experiences that customers are unable to replicate at home. Whether it be the flashy set up of The Apple Store or the upscale feel of the Nespresso boutiques, we see experiential retail all around us in shopping centres. This immersive experience versus a traditional retail outlook coincides with the younger generations’ (led by Millennials) desire to own less “stuff” and to, instead, spend their money on experiences in general.

For the emerging cannabis industry, the timing of this retail shift is fortuitous. In most North American regions, cannabis cannot legally be purchased online anyway, but cannabis retailers have the opportunity to create experiential retail from the start, instead of trying to retrofit their business models.

Recently, JLL Retail issued a report outlining the six dimensions of experiential retail: intuitive layouts, positive human interactions, meaningful brand values, immersive brand experience, and accessible and personalized experiences. It might sound overwhelming, but some cannabis companies are embracing this new way of doing retail business.

One such cannabis company leaning into the experiential cannabis retail model is Chalice Farms in Oregon. Their mission is clear: provide the best products and retail experiences to the consumer, backed by research and science. They are upping the experiential retail ante and becoming an industry leader in the process.

Stepping into a Chalice store is a unique experience compared to traditional dispensaries. Customers are no longer presented with tie-dye motifs and an onslaught of products. Instead, they’re met with clean, easy-to-understand counter-top displays and select quality product lines. This intuitive approach to cannabis retail puts new users at ease and allows more seasoned ones to streamline their experiences. And because Chalice’s parent company, Golden Leaf Holdings, also has access to the entire process from the farms to the stores, the products are always guaranteed to be safe, well researched, and high quality. As the retail cannabis market matures, those companies with expertise in winning over, nurturing, and retaining customers in a competitive marketplace will prevail.

The strategy is to create a brand that embraces localization and uniqueness, not a national brand with clones across the country. These are brands that go full tilt with interactive experiences in brick-and-mortar locations and online, engaging and nurturing millennial customers who are poised to be 35% of total spending by 2030, according to Forbes. On top of that, 52% of America’s 55 million cannabis consumers are millennials, according to a 2017 survey by Yahoo News and Marist College.

The challenge is building a successful retail network, which takes more than having a great idea or even one great store. The retail market is quickly changing and ensuring success across multiple markets and locations while still maintaining quality products and brand awareness takes certain skill sets, knowledge, and willingness to push boundaries.

When thinking about key trademarks of a successful retail network, here are some best practices to consider:

  1. Balance = Key

    Stores must offer consumers something they cannot get either at a competitor’s shop or online: a holistic experience. This new wave of experiential retailing has come on strong over the last few years and is here to stay. Cannabis companies have specialized in serving these niche markets that cultivate their customers’ sense of buying into something larger than themselves. And, while these retail experiences can – and should – be tweaked to favor local markets, the branding and overarching feeling while in the shop must be consistent across retail locations.

  2. Knowledge = Power

    Customer and location data, consumer insights, and spending habits are all important, but the real key is knowing what to do with the data once you have it. This is especially true in an emerging retail market such as cannabis. Because the market is still new, market insights need to be interpreted and implemented correctly. Cannabis companies such as GGB have brought in a leadership team that has experience in large-scale, multinational, data-driven retail growth that can break into new markets intelligently.

  3. Differentiate Your Customer Experience

    Successful retail brands thrive on creating differentiated customer experiences while still associating with the brand at large. This often comes from sales associates moving into a more of a concierge role giving personalized recommendations with an expert eye, or integrating user data into future needs or community-building. These customized, differentiated experiences help the customer feel like they can associate with a brand without becoming “just a number.”

Plenty of international research shows how millennials more than most appreciate this kind of engagement, which they can then share on Instagram and in turn bring more followers into the tribe. These digital natives research and know how much things cost, so they demand extra special attention if they are going to be convinced to actually buy.

While the cannabis industry is still somewhat emergent, there will soon be a time when cannabis retail is no longer a novelty. When that point comes, the cannabis companies who have taken the time to consider and invest in the holistic customer experience will be the ones poised for long-term success.

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Cannabis and Millenials

What Do Millennials Want from Cannabis Brands?

1/04/2019

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The Millennial generation, those born between 1980 and the early 2000s, has been pivotal in shaping today’s economy. In fact, the influence of millennials will continue to impact how companies market their products for years to come. Companies who aren’t currently on board with this demographic should be moving quickly to adjust their business plan to be more inclusive. This is especially true for the cannabis industry, as millennials make up the largest demographic for cannabis use.

Cannabis market research company Brightfield Group surveyed 1,200 cannabis users and found that 39% of millennials use some form of the product daily. Additionally, millennials currently make up about half of all medical cannabis users, with the majority of users spending up to $100 a week on cannabis products.

With such a large demographic willing to spend, this generation has the power to shape how brands market their products. But, just what are the elusive millennials looking for when it comes to cannabis brands and products?

High Quality, Top Shelf Products

The Brightfield study indicated that millennials spend more on cannabis products than they do on groceries. Therefore, quality over quantity is incredibly important to millennials, and they expect the brands they buy from to be able to prove – and stand behind – the quality of their products.

Dispensaries and any maker of cannabis products would do well to establish a sense of loyalty with their customers, and stellar quality assurance is one way to do that.

Establish an Online Presence

Millennials use their smartphones for just about everything. This is especially true when looking for product and business reviews. For dispensaries, millennials turn to Leafly – the Yelp of the cannabis industry. They can check reviews and ratings, view dispensary menus, check hours and locations, and get information about strains.

However, Leafly isn’t the only place this audience looks for an online presence. Social media accounts on Facebook, Twitter, and Instagram are imperative for companies to keep in touch with, and track, their consumer demographic. Good social media interaction establishes trust and loyalty, which is what millennials are looking for.

Ensure Product Variety

Cannabis can now be found in a variety of products from flowers and concentrates to edibles, topicals, and health and beauty products.

Dispensaries that carry a variety of products from local, reputable brands are likely to have better engagement with their customers. 40% of the study’s participants indicated that edibles were their product of choice. So in addition to a diverse category choice, millennials want variety in the brands they utilize. One day they want gummies; the next day they want brownies. The solution? Have both on hand.

Develop a Unique Retail Dispensary Experience

The retail cannabis sector is booming with opportunity – especially in states where both medical and recreational use is legal. Consumers come from all walks of life from retirees to CEOs and college students, and possess a certain attitude about the retail experience.

In fact, it’s the millennial audience that is changing the direction of the retail industry – they don’t just want a product, they want memories – and this is why it is imperative that companies bring their most innovative cannabis retail experiences to the forefront.

But how?

Design a Retail Space that Customers Love

In most states where cannabis is legal, dispensary owners have to work with existing real estate. Whether you’re in a warehouse or a former bank, you can design your dispensary in a way that is inviting and memorable for customers, which makes them more likely to come back.

In Oregon, TJ’s Gardens, which was recently acquired by Stem Holdings, has made great use of the space in their locations. Each location is different, and therefore has a different vibe suitable for the needs of the local customers. Additionally, the staff is well-trained, knowledgeable, and friendly, making customers who are new to the world of cannabis feel comfortable and well-informed.

TJ’s only stocks high quality, locally sourced, and often organic products and presents them in a way that is aesthetically pleasing to customers. The work that goes into making the products they sell warrants top-shelf prices, and guarantees that everyone who walks through the door leaves with exactly what they wanted when they came in.

For companies looking to make an impression on customers, the key to doing so is with a unique, positive retail experience that gives them memories. While customers initially go into a dispensary looking for a product, it’s the experience that will have them coming back in the future.

Tips for a Red Carpet Dispensary Experience

It takes about 60 seconds for a customer to decide if a dispensary is in line with their expectations. Some ways to ensure your customer stays for the long haul include:

  • Meet and greet customers at the door
  • Build trust by ensuring the prices on your website match the prices in-store
  • Display products in a way that showcases your best products first

In the cannabis industry, there is always an opportunity to positively impact a customer, and in the dispensary, it starts with the experience. As the retail market continues to change, it’s your company’s job to keep up with the trends and with consumer expectations. Millennials are the driving force behind cannabis products and brands. By understanding the consumer, cannabis companies can develop better strategies for bigger profit, and speak to their customer base in a way that generates loyalty.

 

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Kristi Knoblich Palmer: Building a Beloved Cannabis Edibles Brand

1/04/2019

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Kristi Knoblich Palmer is the co-founder of Kiva Confections, one of California’s most successful and recognizable cannabis edibles brands.

We recently caught up with Kristi to talk about Kiva’s progress and successful expansion into a multi-state enterprise. Check out the interview below to hear her opinions on developing new products for the cannabis marketplace, why innovation is so important for edibles manufacturers, the explosive popularity of microdosing, and a whole lot more!

If you like the written interview below, be sure to also check out Kristi’s appearance on the Ganjapreneur.com Podcast!

Ganjapreneur: Over the eight years since its launch, Kiva Confections has grown into one of the cannabis industry’s most recognized edibles brands — what are the biggest factors to which you attribute that success?

Kristi Knoblich Palmer: We have always been extremely passionate about making high quality and delicious cannabis edibles for people to consume. We absolutely love to develop cool, new products that will solve a new problem for our existing consumers, and attract new ones. We strive to create products that people will fall in love with. Kiva’s CEO and my husband Scott Palmer is our secret weapon; at his core he is a genius engineer, always thinking up the next big idea. We have one cardinal rule — don’t release a product until its perfect. We pour our heart and soul into everything we make.

Edibles are often flaunted as the industry’s biggest untapped potential — does that sentiment still ring true to you, and why or why not?

There is an incredible opportunity for innovation, which is one of our favorite things about cannabis. There is no shortage of great ideas, which means many more exciting new things to come from Kiva. With regulation comes investment in the industry, and we’re seeing companies sink resources into innovation like never before. We are at the very beginning stages of significant cannabis innovation. There is no shortage of great ideas, which means many more exciting new things to come from Kiva and edibles in general.

In the year since adult-use launched in California, there have been some hiccups. How has the market matured under the new regulations and how has Kiva reacted to maintain sales?

2018 was action-packed, no one would argue against that! For the very first time, newly licensed operators are running businesses in compliance with strict regulation. The market is adapting at an astonishing pace to meet demand. Its fascinating how quickly companies can pivot to capture the opportunity.

To maintain sales this year, we worked tirelessly to launch a new brand, Camino Gummies. Coming out with what we feel is our best product ever during one of the most difficult years in cannabis has really helped reinvigorate our team internally, our retail customers, and our fans. When your business is your baby, you everything in your power to protect it. You get the most passionate, brightest minds together and you come up with solutions. Get it done. That is one of the Kiva core values, and we practice it every day.

Kiva is based in California but, since its launch, you have expanded into several other state markets. What has that process been like and do you plan to pursue more markets outside of California?

Moving into other states requires participation from just about every department at Kiva, as well as the operating partner — its a group effort with significant resources required. With goals to be a national brand, we will continue to launch in key, strategic markets with a measured approach.

Edibles are a huge contributing factor to the popularity of cannabis microdosing — could you speak to the trend’s importance and what it could mean for the industry as it becomes increasingly mainstream?

Edibles and microdosing make the perfect couple. Microdosing requires precision dosing to deliver a consistent experience time and time again. It is imperative that people who are new or returning to cannabis can control their dose and not overdo it on their first try; otherwise we’ll scare them out of the category and probably out of cannabis altogether.

Edibles offer that unique ability to deliver a small amount of THC to the consumer. This makes edibles increasingly approachable to new audiences.

How has Kiva’s business model changed during the transition from a wellness-minded medical market to California’s new adult-use regulations?

In a medical or recreational market, Kiva’s mission remains the same. It has always been our goal to create the highest quality, most consistent and best-tasting cannabis products for the most discerning people. We’re seeing wellness as a major trend in consumer goods and people are turning to cannabis for sleep, relaxation, as a replacement for alcohol — all as part of a healthy lifestyle.

Kiva will always make quality products that are appropriate for those looking for relief from chronic pain, or to help loosen up them up at a social gathering. Its up to the consumer to choose their use-case knowing they can always rely on our products.

Have there been projects you wished you could pursue but couldn’t due to regulatory restrictions or another obstacle? If so, what were they, and what would you suggest to someone who is facing such issues?

A difficult thing to let go of was our most effective marketing strategy: free sampling to consumers. It worked great as a way to help introduce people to Kiva. In 2018, that’s no longer possible so we have to think outside the box and come up with fresh, new, equally-as-effective strategies to bring people in to edibles. We love to be creative and we’re up for the challenge.

What was the biggest obstacle you have overcome, and what has been your biggest success or proudest moment?

The year 2018 offered a new surprise around every corner. I think the biggest obstacle was the July 1st transition. It was absolute chaos while the industry phased in new testing requirements and phased out old product that wouldn’t meet the regulations. As an industry, we were way out of our comfort zone. That was a true test of character; we were under immense pressure to keep business moving forward while the landscape was changing hour by hour right under our feet.

Yet, even with so many hurdles, this year has still produced some incredibly huge wins. We were able to seed our new Camino Gummies into nearly half the retail stores in our network in the first 4 weeks of the launch. This proves that people really believe in the Kiva brand, and demonstrates the reach and relationships with retailers that our distribution organization possesses. We are really proud about that and have to give credit to the entire Kiva team for making it happen.

Where do you hope to see Kiva Confections in the next 5-10 years?

In 10 years? We have only been around for eight! When that day comes, I hope that when we survey consumers around the world, they say Kiva is the cannabis brand they love most. That to me, aside from all other metrics, would mean that we truly accomplished what we set out to do.

Lastly, what advice would you give to somebody who is looking at founding or developing a cannabis edibles company?

I would tell them to get super excited about their products. If they aren’t so excited they can’t sleep yet, then its probably not ready to launch.

Thank you, Kristi, for taking the time to answer our questions and for sharing your experiences as a cannabis entrepreneur and edibles pioneer!

You can learn more about Kristi Knoblich Palmer and Kiva Confections at KivaConfections.com.

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California

California Grace Period for Unlicensed Cannabis Co-ops Expires Jan. 9

1/04/2019

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The period within which unlicensed medical co-operatives are allowed to operate in California is coming to an end on January 9th, according to a Marijuana Business Daily report.

Previously, many collectives and cooperatives had been grandfathered into the current regulatory structures. A legal defense provided through 2018 protected them due to their status as medical cannabis collectives. However, laws have shifted and the legal protection ends after January 9.

“It’s significant because, at this point, if you don’t have a license, whatever legal protection you have goes away. And the stark reality is that for many places in California, licenses are not available.” — Michael Chernis, Los Angeles-based cannabis attorney, via MJBizDaily

Many municipalities in California have banned cannabis operations, while other places have lagged in the licensing process. Additionally, California cannabis licenses already carry a hefty price tag.

Its unclear what level of enforcement will face collectives who continue to operate without licenses. Some speculate that there may not be enough money available in the budgets of smaller cities to fund large-scale enforcement efforts. Others believe that, while there may not be money for raids, municipalities may seek to shut down the unlicensed dispensaries by issuing code enforcement violations.

Once the grace period ends, medical cannabis operators must either have a license, go out of business, or take their chances with law enforcement. There isn’t much firm data on exactly how many unlicensed collectives or co-ops may be operating in California, though many estimate their numbers in the hundreds.

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Michigan Capital

At Least 60 Michigan Towns Opt Out of Cannabis Sales

1/04/2019

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Michigan’s Department of Licensing and Regulatory Affairs has released a list of 60 cities that have notified the Department that they will be opting out of legal cannabis sales, according to the Detroit Metro Times.

Michigan voters legalized adult-use cannabis via Proposition 1 in the 2018 midterms. However, the structure of the proposition allows for any municipality to opt out. While the list released by Michigan regulators is not finalized, it is indicative that many towns and cities will indeed be opting out out of at least parts of the program.

The list contains 60 municipalities, though it’s expected that there will be even more who choose to reject legal cannabis as the current list contains only municipalities that informed Michigan regulators as a courtesy.

The cities currently opting out are allowed to eventually opt back in, so there’s no guarantee that legalized cannabis sales and operations will be forever banned in these towns. Possession is also not affected by the opt-out and will be legal statewide. This list only applies to those forbidding retail outlets and other businesses.

The list so far includes:

  • Cheshire Township (Allegan)
  • Overisel Township (Allegan)
  • Three Oaks Township (Berrien)
  • Coldwater Township (Branch)
  • Newberg Township (Cass)
  • Volinia Township (Cass)
  • Sault Ste Marie (Chippewa)
  • Dallas Township (Clinton)
  • Greenbush Township (Clinton)
  • Ironwood (Gogebic)
  • Ingham Township (Ingham)
  • Williamston (Ingham)
  • Caspian (Iron)
  • Nottawa Township (Isabella)
  • Brady Township (Kalamazoo)
  • Charleston Township (Kalamazoo)
  • Portage (Kalamazoo)
  • Prairie Ronde Township (Kalamazoo)
  • Ada Township (Kent)
  • Cleveland Township (Leelanau)
  • Fairfield Township (Lenawee)
  • Oceola Township (Livingston)
  • Pentland Township (Luce)
  • Village of Armada (Macomb)
  • Frenchtown Charter Township (Monroe)
  • Monroe (Monroe)
  • Ashland Township (Newaygo)
  • Village of Milford (Oakland)
  • Northville (Oakland)
  • Grant Township (Oceana)
  • Bridgehampton Township (Sanilac)
  • Brown City (Sanilac)
  • Village of Carsonville (Sanilac)
  • Elmer Township (Sanilac)
  • Flynn Township (Sanilac)
  • Lamotte Township (Sanilac)
  • Maple Valley Township (Sanilac)
  • Marlette (Sanilac)
  • Village of Melvin (Sanilac)
  • Minden Township (Sanilac)
  • Village of Port Sanilac (Sanilac)
  • Sandusky (Sanilac)
  • Speaker Township (Sanilac)
  • Washington Township (Sanilac)
  • Watertown Township (Sanilac)
  • Algonac (St. Clair)
  • Burtchville Township (St. Clair)
  • Casco Township (St. Clair)
  • Columbus Township (St. Clair)
  • Kenockee Township (St. Clair)
  • Richmond (St. Clair)
  • St. Clair (St. Clair)
  • Mottville Township (St. Joseph)
  • Sherman Township (St. Joseph)
  • Sturgis Township (St. Joseph)
  • Tuscola Township (Tuscola)
  • Geneva Township (Van Buren)
  • Allen Park (Wayne)
  • Grosse Pointe (Wayne)
  • Plymouth (Wayne)

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U.S. Supreme Court

Supreme Court Report: Cannabis Prosecutions Down 19% in 2018

1/04/2019

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An end-of-year report by U.S. Supreme Court Chief Justice John Roberts indicates that federal prosecution for cannabis crimes declined 19 percent in 2018, Marijuana Moment reports.

Chief Justice Robert’s report covers fiscal year 2018. During that period, several new states launched cannabis sales or continued the roll out of their new cannabis programs.

“Drug crime defendants, who accounted for 28 percent of total filings, grew two percent, although defendants accused of crimes associated with marijuana decreased 19 percent.” — Excerpt from Chief Justice Roberts’ report

States factoring into the report that launched legal cannabis programs during this time period include California, Nevada, Massachusetts, and Maine.

The news from the Supreme Court follows last week’s report that cannabis smuggling has declined significantly since the start of the cannabis legalization movement in the U.S.

It seems that there are many indicators — as cannabis advocates have argued for decades — that ending cannabis prohibition does indeed produce positive outcomes, not the least of which is a reduction in law enforcement costs and freeing up valuable police time for investigating and preventing more serious crimes.

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New Jersey Capital

Political Spat Delays New Jersey Medical Cannabis Expansions

1/03/2019

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Delays continue in the roll-out of New Jersey’s medical cannabis program expansions, now thanks in part to conflict between Gov. Phil Murphy (D) and state Sen. Steve Sweeney (D), Leafly reports.

Delays are nothing new for New Jersey, who has already seen its medical cannabis infrastructure stalled by political action, primarily by anti-cannabis crusader Chris Christie, who was the sitting governor when New Jersey legalized medical cannabis.

Now, Bill S10 — the medical cannabis expansion bill that awaits further consideration — is being delayed yet again due to conflict between state Sen. Steve Sweeney and Gov. Phil Murphy, both of whom are Democrats. Gov. Murphy has taken issue with the tax rate set by Bill S10 and it’s speculated that Sen. Sweeney is refusing to cooperate as part of a strategic push for full adult-use legalization, which is expected to be addressed sometime this legislative session.

Notably, despite their disagreements, Gov. Murphy has called for lawmakers to legalize adult-use cannabis since he took office in early 2018.

The roll-out of New Jersey’s medical cannabis expansions has been riddled with issues. Cannabis advocates say the six new dispensary licenses issued in late 2018 all went to well-financed, out-of-state companies and accuse the legislature of not supporting attempts by local communities to participate in the space. Advocates also argue that none of the companies who were awarded licenses have selected retail or production sites yet, indicating further delays.

Action is needed. Medical cannabis is currently retailing for $500 per ounce in New Jersey — way beyond the national average. Additionally, some patients are stuck driving for nearly two hours just to get their medicine. Patients are also still required to re-certify their medical cannabis status every 30-90 days.

The next session of the New Jersey legislature begins January 15. Advocates hope for some sort of progress but, for now, the state’s high prices and difficult access will continue.

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Boise, Idaho

Idaho Advocates Plan Legalization Voter Initiative for 2020

1/03/2019

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Advocacy groups Legalize Idaho and Idaho Moms for Marijuana held a rally at the Idaho State Capitol Building on New Year’s Day in support of a cannabis legalization bid for the 2020 ballot, according to KTVB.com.

To help make their point, legalization advocates collected items like alcohol, tobacco, and donuts to demonstrate products that are more harmful to public health than cannabis but are still legal in Idaho.

Legalize Idaho plans to launch a campaign in February to collect signatures for putting an initiative to legalize cannabis on the 2020 ballot. Idaho is one of the few remaining holdouts on any sort of cannabis reform — nearly every single state surrounding Idaho has some form of legal cannabis, whether adult-use or medical, including Canada.

“The rest of the country is passing us by and we are completely surrounded on our little island of prohibition.” — Serra Frank, cannabis advocate, in a KTVB interview

Opponent groups like Drug Free Idaho will put up a fight, however. Countering the statement by advocate Serra Frank, the director of Drug Free Idaho told KTVB that Idaho was rather, “an island of sanity in a sea of insanity. We have a narrative right now of, there is zero bad things that happen when you have more marijuana, and we just don’t think that’s the case.”

Ultimately, advocates support leaving the question for voters via their petition and future ballot initiative.

Said Frank, “The people of Idaho want it, the politicians might not, we don’t care what they say. We are the people, this is our Capitol building, we are going to make this happen.”

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Car Interior

Massachusetts Plans “Open Container” Laws for Cannabis

1/03/2019

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Massachusett’s Special Commission on Operating Under the Influence and Impaired Driving — formed after cannabis was legalized — is considering a law that would limit “open containers” of cannabis in vehicles, MassLive reports.

The move aims to align rules for operating a vehicle under the influence of cannabis with alcohol’s open container laws. Unlike in Canada, for instance, having cannabis within reach of a driver in Massachusetts currently does not constitute an open container.

According to Massachusetts’ liquor laws, an open alcohol container has had its seal broken and contents partially consumed. While the exact definition of what constitutes an open cannabis container remains debatable, many council members expressed opinions on the matter.

“We’ve all seen people smoking a joint at the red light next to us, and clearly that’s open container, but then the question gets what about the edibles, what about some of the oils?” —Massachusetts Undersecretary for Law Enforcement Jennifer Queally, via MassLive

Some argued that simply having the cannabis out and visible isn’t grounds to assume they’re intoxicated. Cannabis does not require refrigeration and there is no absolute chemical marker for intoxication. Opponents pointed out that cannabis can easily be kept in the glove box or trunk, where it would be out of sight yet still in the vehicle.

The strongest recommendation in the commission’s report calls for anyone refusing a roadside test by a police officer for cannabis intoxication to have their driver’s license suspended for six months. This would match the current penalty for refusing to submit to a roadside test for alcohol intoxication.

Other recommendations to the Legislature include providing police with information about the proper tests for signs of cannabis intoxication and training on how to administer those tests.

The commission also recommended public education about the dangers of intoxicated driving, establishing rules for how hospitals can test the blood of someone arrested under suspicion of intoxicated driving, and a transition from paper warrants to electronic warrants when seeking permission to conduct a vehicle search.

All recommendations from the commission must be approved by Massachusetts lawmakers before becoming law.

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Times Square

First Cannabis Advertisements Appear In Times Square NYE Celebration

1/02/2019

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This week marked the first time cannabis and CBD companies were allowed to advertise on the electronic billboards that light up the Times Square New Year’s Eve party, the Denver Business Journal reports.

Elixinol — a Broomfield, Colorado-based CBD company that distributes to 40 countries and is traded on the Canadian Securities Exchange — led the pack of cannabis and cannabis-adjacent companies who appeared on the historic billboards Monday night.

“A year ago, we were denied advertising in Times Square. What a difference a year makes — we join the entire hemp community in celebrating what’s to come in 2019.” — Chris Husong, Director of Sales and Marketing for Elixinol, in a statement

Elixinol was joined by other cannabis industry players Cannabis Network Media, Curved Papers, My Bud Vase, MTracTech, and Restorative Botanicals in securing the coveted advertising placement, according to a press release.

https://www.instagram.com/p/BsEVVupgvpP/

In 2014, an effort by Weedmaps to be the first cannabis company to advertise at the Times Square New Year’s Eve party was shut down by the event’s anchor tenant, CBS Broadcast.

President Donald Trump signed the 2018 Farm Bill into law last month, which officially legalized industrial hemp and its derivatives — including CBD products.

Meanwhile, New York Gov. Andrew Cuomo has committed to passing a cannabis legalization law during the 2019 legislative session; New York City Mayor Bill de Blasio said he supports the move.

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Cannabis

Study: European Cannabis Has Doubled Its THC Content

1/02/2019

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European cannabis extracts and flower have doubled in potency since 2006, according to a report by The Guardian.

Researchers from the University of Bath and King’s College London published a study in the scientific journal Addiction shows that both cannabis flower and resin concentrates in Europe have seen dramatic increases in average THC content.

Flower’s average THC content went from 5% in 2006 to 10% in 2016. For resin products, average THC content rose from 8% in 2006 to 17% in 2016. These increases were not shown for CBD content, however, which was shown to have declined or remained consistent with earlier results.

The change is believed to be attributed to the advancement of cannabis cultivation techniques, particularly in Morocco.

Researchers also noted an increase in prices. In 2006, cannabis flower was sold for an average of €7.36 per gram. In 2016, that same gram cost on average €12.22. Cannabis resin went from €8.21 to €12.27 per gram in that same time period.

While some say the increase in THC content means a better value for consumers, others wonder at the risk of declining CBD contents.

Said one of the study authors, “CBD has the potential to make cannabis safer, without limiting the positive effects users seek. What we are seeing in Europe is an increase in THC and either stable or decreasing levels of CBD, potentially making cannabis more harmful.”

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Stock Exchange

American Cannabis Operators Index Down 18%

1/02/2019

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The American Cannabis Operator Index recorded a fall of 18% in value for cannabis companies in December, according to New Cannabis Ventures.

The Index tracks 17 companies as of December. Five of the companies are solely CBD companies, which in general performed better than other companies on the Index, most likely because of the 2018 Farm Bill‘s passage. The other 12 businesses are multi-state cannabis operators.

All companies tracked by the Index except for CBD company Elixinol Global lost money in December. United Cannabis stock declined so much that it will no longer be listed on the Index in January as trading volume fell below the Index’s minimum criteria. Operator Terra Tech had the worst month of those still listed after having been sued for fraud, though the company has contested the accusations.

The Index was launched on October 31, 2018. It contains a list, updated monthly, of the leading cannabis growers, processors, and retailers across the U.S.

To appear in the Index, stocks require a daily trading volume of at least $100,000 and must trade at a minimum price of $0.10 per share. Cannabis revenue must account for at least 50% of any listed companies’ revenue.

A decline in the Index’s value as a whole means that many cannabis producers in the U.S. aren’t making money.

The Index will be updated in January to remove United Cannabis’ listing and to add 1933 Industries and Green Growth Brands, which will bring the number of listed companies up to 18.

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Large plastic bags of trimmed cannabis product.

Oregon Bill Would Legalize Interstate Cannabis Exports

1/02/2019

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Oregon lawmakers are expected to consider legislation this year that would allow the state to export cannabis products into other state-legal cannabis markets, according to a Statesman Journal report.

The bill would be a cooperative effort between Oregon state Sen. Floyd Prozanski (D) and The Craft Cannabis Alliance, which defines itself as a member association of cannabis and allied businesses.

Draft language of the proposal would allow cannabis wholesalers to ship across state lines provided that Oregon’s governor reaches an agreement with the receiving state. Products would not be allowed to cross through states where cannabis remains prohibited, and product transport via airplanes would be prohibited.

Sen. Prozanski introduced similar legislation in 2017 but his proposal died in the statehouse.

“There are plenty of markets that would be thrilled to have world-class cannabis. But prohibition keeps us from sending it into those markets.” — Adam Smith, founder and director of The Craft Cannabis Alliance, via The Statesman Journal

The Oregon cannabis market suffers from an over-saturation of cannabis products, which has resulted in some product diversion to the black market. Meanwhile, wholesale and retail cannabis prices have plummeted.

According to Beau Whitney, a senior economist for New Frontier Data, allowing interstate exports “would either slow or stop the price declines, because there wouldn’t be any more excess.”

“It would create more of a market in which quality and branding and other things would come into play more so than just pure price,” Whitney told The Statesman Journal.

However, the proposal would be a risky step in light of the plant’s ongoing federal prohibition. Since the first state-legal markets launched in 2014, cannabis businesses have operated in accordance with the since-rescinded Cole Memo, which specifically forbade state-legal cannabis products from crossing state borders.

 

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Colorado Has Earned Nearly $1 Billion In Cannabis Taxes

1/01/2019

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In 2012, voters in Colorado and Washington passed the states’ landmark adult-use cannabis legalization initiatives; Colorado’s marketplace launched first — to nationwide fanfare — on January 1, 2014.

As of October 2018, legal cannabis retailers had distributed nearly $6 billion worth of cannabis and the state collected $883,885,907 in cannabis tax revenues.

In Denver alone, cannabis taxes have created $12.8 million in education funding, The Denver Channel reports. This has led to eight different youth diversion programs, training programs in 15 different Denver public schools, and the “High Costs” youth education and prevention campaign that encourages educated decisions and accurate, peer-to-peer conversations.

Beyond the tax revenue, however, Colorado’s cannabis industry has also created a wealth of new jobs and employment opportunities, including ancillary marketplaces that are rich with innovation, technological advances, and entrepreneurship.

Colorado has also served as a proving ground for cannabis research and other states looking at legalizing or decriminalizing the plant. Lawmakers from New Jersey, Utah, and other states have visited the state as they consider their own cannabis legislation.

We have not, however, witnessed the doomsday-type scenarios that were touted by prohibitionists leading up to Colorado and Washington’s historic legalization votes.

Underage cannabis use is not rising and, in fact, some studies have shown that legalization actually helps reduce the rate of teenage use. Additionally, car accident deaths have not seen any significant increase in Colorado when compared to eight other states that have not legalized, according to a Global News report.

Moreover, marijuana arrests have obviously plummeted in Colorado, opening up valuable police time for investigating and preventing other, more serious crimes.

Since Colorado and Washington established their legal cannabis markets, eight other states, one U.S. territory, and Washington D.C. have opted to end cannabis prohibition, with many more states — particularly on the Eastern seaboard — set to legalize sometime in 2019.

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Pressure Grows to Reform Texas Cannabis Laws

12/31/2018

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Texas is one of the last U.S. bastions of outright cannabis prohibition, but pressure is mounting from citizens and lawmakers alike to bring progressive reforms to the Lone Star State’s cannabis laws, The Houston Chronicle reports.

Cannabis remains heavily restricted in Texas. Currently, the state’s only reforms are incredibly strict, allowing only for CBD-rich oils that are prescribed for epilepsy patients who have been failed by other, traditional treatments. There is not a comprehensive medical cannabis program and even minor possession remains a class B misdemeanor punishable by a six-month jail term and up to $2,000 in fines.

“Even in Texas, public opinion seems to have shifted from criminalization to at least decriminalization, with strengthening support for legalization. … All in all, Texans of all stripes may be closer than ever to move toward legalization, especially as everyone around them is going along with this major change.” Nora Demleitner, professor at Washington and Lee University School of Law in Virginia, via The Houston Chronicle

Meanwhile, lawmakers have already filed or pre-filed a dozen bills relating to cannabis reforms, including a full decriminalization bill in November by state Rep. Joe Moody (D).

Texas Gov. Greg Abbott (R), meanwhile, said he would support decriminalizing cannabis by reducing the charges for possession of small quantities of the plant from a class B to a class C misdemeanor, which would carry no threat of jail time and a maximum fine of $500.

In July, the Republican Party of Texas updated its platform to include planks for the decriminalization of cannabis, rescheduling the plant to Schedule II under the federal Controlled Substances Act (CSA), and the statewide legalization of industrial hemp.

Note: hemp was officially removed from the CSA earlier this month with the successful passage of the 2018 Farm Bill.

The Texas GOP also endorsed expanding the state’s limited medical cannabis law to allow for a more comprehensive program, but no further progress was made during the close out of 2018.

On Texas’ southern border, Mexico has also taken huge strides in the fight for cannabis freedom, with adult-use legislation expected to come in 2019.

There are currently 10 states with adult-use legalization on the books, and 33 states with rules to allow for the medicinal use of cannabis.

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Indiana Gov. Remains Strongly Anti-Legalization

12/31/2018

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Despite a growing number of U.S. states moving away from cannabis prohibition — and the two-thirds majority of American voters who now support legalizing adult-use cannabis — Indiana Gov. Eric Holcomb (R) says he is “just not willing to look at that,” The Associated Press reports.

Several state lawmakers, meanwhile, are attempting to organize legislation to relax the state’s cannabis restrictions, including bills for both medical and adult-use legalization.

“I’m just not willing to look at that, especially since it is illegal right now according to the federal government. … Right now, it’s a crime. I’m just simply not willing to look the other way.” — Indiana Gov. Eric Holcomb, to reporters

Gov. Holcomb did sign legislation earlier this year to allow hemp-derived CBD to be sold in the state. According to Holcomb, however, he’s not even tempted by the boost in state tax revenues that would be wrought from adult-use or even medical cannabis legislation.

“Fortunately, we’re in a state that’s in a strong position, fiscally speaking, so we’re not maybe looking to every potential source without addressing all the adverse effects that come with it,” he said.

Currently, there are 10 U.S. states that have ended cannabis prohibition entirely and more than 30 with established medical cannabis laws.

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Cannabis Tech

Cannabis Innovation and Tech: What’s New in the Industry

12/28/2018

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No industry has undergone rapid evolution quite like the cannabis industry. Although the substance has been around for a very long time (it was included in the Chinese book of pharmacopeia some 2,000 years ago), the cannabis plant has only recently re-emerged in modern medicine. In the latter part of the 19th century, cannabis was widely available in pharmacies. You might have even found the “Schedule 1” drug stocked on grocery shelves once upon a time!

History is starting to repeat itself, as today’s cannabis entrepreneurs experiment with innovative extraction methods for the creation of potent distillate oils and controlled-dose edible products. If science is anything to go by (and it should be), then these products should be a welcome addition to any pharmaceutical cabinet.

Demand for Cannabis Innovation is Booming

As cannabis reform blossoms around the U.S. and most recently Canada, demand for high-tech innovations are sprouting. Cannabis’ negative stigma is lifting. By 2025, the global legal cannabis market is predicted to yield $146.4 billion, growing at a CAGR of 34.6%.

There are plenty of new things happening in the cannabis industry. Clinical trials are set to begin on cannabis for cancer, solar cannabis cultivation practices are being carried out, and scientists have even discovered how to make cannabinoids water-soluble. This only scratches the surface of all of the technology currently flooding the market.

Here are some other exciting tech advancements to keep on your radar:

  • Seedo is a fully automated, app-controlled home-growing kit built in a self-contained ecosystem with LED lighting, internal HD cameras for monitoring, and more, all in one easy-to-use DIY package.
  • PotBotics is a cross between Leafly and WebMD for cannabis connoisseurs. The startup’s PotBot app helps recommend marijuana strains for patients by using the scientific and medical research data on different strains and bodily effects in its database.
  • Ehave is a mental health data company using their Ehave Connect platform to track medical cannabis patients in order to advance the therapeutic use of medical cannabis by monitoring treatment plans to prove or disprove medical cannabis’ effectiveness for different ailments, and ultimately help establish treatment guidelines for cannabis therapies.

If the industry continues to perform just as it has been, companies will continue to indulge their consumer audience with market-leading products. Moreover, 420 investors can make a confident investment when they seek out the pioneers in cannabis innovation and technology. Why? Because the more advanced a cannabis company’s techniques, the more appealing they become to consumers.

Technology’s Importance in the Cannabis Industry

It’s not just consumers that benefit from the use of technology but also, investors and anyone else connected with use of the plant in its extracted form. Companies who continuously practice innovation by means of product acquisition and development can effectively serve the demand that is being felt from the edibles and oil extracts segment of the market.

Using technology demonstrates a company’s ability to keep up with the times (demand for cannabis products is outpacing supply in Canada) and maximize the potential of cannabis’ primary cannabinoids, THC (tetrahydrocannabinol) and CBD (cannabidiol).

Take Nutritional High, for example. The company uses technology not only to create first of it’s kind products like the FLÏ™ Chocolate shot (a one-of-a-kind micro-dose chocolate paste that won’t melt in the heat or freeze in the cold), but also to create radical new customer experiences. The Mile High FLÏ™ Club app drives customers to dispensaries with the FLÏ™ Nearby function, and rewards customers for repeated purchases with discounts and swag. The cutting edge program shows consumers and dispensaries alike that Nutritional High is a leader in the market space.

Adapting to Changing Consumer Preferences

As millennials continue to dominate the cannabis market with their desires for clean, organic, and healthy cannabis, cannabis companies will increasingly focus on non-carcinogenic methods of delivery like distillate oils and controlled-dose edible products that match those desires.

Cannabis ‘dabbing,’ for example, has become more popular among heavy cannabis users in recent years as a clear alternative to smoking. Dabbing is the process of inhaling cannabis from a refined extract which provides a healthier form of smoking with the same quick onset effect.

With an equally health-focused demographic Generation Z slowly entering the marketplace, the demand for healthy alternatives to smoking will continue to grow, and will, in all likelihood, become the norm.

Pushing the Industry Forward

Companies that are capable of creating market-leading products that can appeal to a diverse audience are most certainly the ones to watch. Brands that have and continue to meet the demands of the swelling cannabis consumer target market can effectively promote other brands to do the same. With more innovations in cannabis-related technology, companies that can adapt to change within the ever-evolving realm of legal cannabis will pave the way for industry expansion.

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Border Fence

Study: Cannabis Legalization Better Than Wall For Border Security

12/28/2018

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An analysis of Border Patrol cannabis seizures reveals that legalization reduces cannabis smuggling significantly more than the construction of border fencing, Tom Angell reports for Forbes.

The analysis was conducted by the Cato Institute. Cannabis seizures were compared over the years  2003-2018 in relation to the construction of border fencing along the U.S. southern border.

While miles of border fencing have increased over that time, there’s little correlation between those increases and the number of cannabis seizures. Seizures were largely consistent from 2003 to 2013.

When Colorado and Washington began selling legal cannabis products in 2014, however, seizures started to fall sharply, a trend that continued through 2018 as more and more state-legal markets launched.

“Given these trends, a border wall or more Border Patrol agents to stop drugs between ports of entry makes little sense. State marijuana legalization starting in 2014 did more to reduce marijuana smuggling than the doubling of Border Patrol agents or the construction of hundreds of miles of border fencing did from 2003 to 2009.” — David Bier, immigration policy analyst at the Cato Institute, in the analysis

For decades, legalization advocates have predicted this outcome. With additional states choosing to end cannabis prohibition each year, it’s become clear that Americans prefer locally grown cannabis with consistent quality and purity assured by a regulated market over smuggled — and possibly contaminated — cannabis from outside the country.

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Business

U.S. Company Plans Hostile Takeover of Canadian LP Aphria

12/28/2018

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U.S.-based cannabis grower Green Growth Brands is considering a hostile takeover of Canadian licensed producer Aphria, according to Bloomberg.

Aphria’s stock had previously been on the decline due to both general market sentiment following 2018’s record gains as well as accusations by known short-seller Quintessential Capital Management, who claimed that Aphria paid artificially high prices for certain international assets in order to line the pockets of company insiders at shareholder expense. Aphria fired back immediately, however, claiming that the accusations were “false and defamatory.”

Following Thursday’s reports of the possible takeover, Aphria stock rose more than 30 percent in late trading.

“They’re currently at an attractive value in the market. … We were looking for the most positive and friendly way to do this, but I think ultimately, we felt like a delay would be unnecessary. We wanted to be proactive and reach out directly to the shareholders.” — Peter Horvath, CEO of Green Growth Brands

Irwin Simon, Aphria’s Independent Chair of Board of Directors, said in a press release issued Friday morning that, “While we appreciate GGB’s interest in the value we have created at Aphria and our significant growth prospects, their proposal falls short of rewarding our shareholders for participating in such a transaction.”

“The Board has determined that the GGB proposal, as it currently stands, significantly undervalues the company,” Simon said. “Aphria has a tremendous market opportunity as a leader in the sector and a strategic vision to meet those opportunities. Our focus is to realize that value for the benefit of all our shareholders.”

The company has since established an independent committee of directors to consider the proposal and any future formal offers.

The proposed hostile takeover would nonetheless create a higher market cap for Aphria, as Green Growth Brands would value the company at CA$2.8 billion. At close of business on Thursday, Aphria’s market cap was just CA$1.39 billion.

While ongoing federal prohibition in the U.S. won’t allow cannabis produced in Canada to be shipped to Green Growth’s current operations, Horvath said the deal was based on, “taking the talent from both organizations and leveraging it across the different geographies.

“You can’t move product but you can certainly transport intellectual property and capability,” Horvath said. “It’s about combining our consumer expertise with their grow expertise.”

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Saint Vincent

St. Vincent and the Grenadines Is Latest Caribbean Nation to Decriminalize

12/28/2018

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The small Caribbean island nation of St. Vincent and the Grenadines (SVG) recently passed legislation to decriminalize cannabis, Forbes reports.

St. Vincent is the largest island in the Grenadines, a chain of tiny islands in the Caribbean. SVG will be the first member of the Organization of Eastern Caribbean States to decriminalize cannabis, though other nation members of the alliance seek to decriminalize in the near future.

The island nation aims to become a global leader in medical cannabis research and production. The Caribbean climate is well suited to cultivation and, with the ending of outright prohibition, SVG is ready to begin developing a new cannabis economy, according to Minister of Agriculture Saboto Ceaser.

“The planning of this innovative industry has been carefully conducted over a long period in close consultation with the agricultural sector and many different stakeholders to reach the level of maturity we see today. There is broad recognition and buy-in of the economic benefits this tightly controlled and regulated industry is expected to bring regarding direct employment, the creation of support industries and foreign investment.” — Saboto Ceaser, Minister of Agriculture for St. Vincent and the Grenadines, via Forbes

Ceaser went on to say that SVG has already seen an increase in both regional and international “investor sentiment and inquiries.”

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