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Bipartisan Cannabis Finance Legislation Supported By Banks

11/28/2018

New legislation being crafted by Rep. Ed Perlmutter (D-CO), co-sponsored by 82 Democrats and 13 Republicans, is expected to pass the House Financial Services Committee and has good odds for being approved by the full House, according to Politico.

The “blue wave” that took back the House of Representatives in the midterms not only ousted long-time opponent of cannabis Pete Sessions, but also chairman of the House Financial Services Committee Jeb Hensarling (R-TX). Former Rep. Hensarling’s will be replaced by Rep. Maxine Waters (D-CA), who said she will not continue the practice of suppressing the discussion around cannabis reform bills.

Rep. Perlmutter, who is also a member of the House Financial Services Committee, said that the American Bankers Association has assisted with developing the bill. Other banking associations, including The Independent Community Bankers of America and the Credit Union National Association, had previously stated support for recent cannabis banking reforms, which is expected to carry over to the latest legislative attempt.

Former Attorney General Jeff Sessions’ removal will also bolster the reforms attempt, depending on whom Trump appoints as his permanent replacement. Other Trump-administration appointees are far more supportive of reforms than AG Sessions, including top banking regulator Joseph Otting, Comptroller of the Currency. Otting told reporters last month that a legislative solution for cannabis banking was needed and he was “hopeful there’s enough momentum in that direction.”

An analyst with Compass Point, a financial sector investment and research firm, said that while his organization puts the likelihood of full cannabis legalization in the next congressional session at only 25 percent, research indicates the odds of cannabis banking reform passing are at 75 percent.

The next session of Congress — which is when Rep. Perlmutter’s banking legislation is likely to enter its final stages — begins January 3, 2019.

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Massachusetts Cannabis Sales Thrive Following Market Launch

11/28/2018

by Graham Abbott

Massachusetts’ two licensed cannabis retailers grossed $2.2 million in sales over just five days, MassLive reports.

The information was released by the state Cannabis Control Commission, which compiled sales data from the state’s two retailers: Cultivate, in Leicester; and New England Treatment Access (NETA), in Northampton. During the market’s first five days, Cultivate and NETA collectively sold 56,380 “units” of cannabis, with products ranging from just flower to edibles and hand lotion.

Sales on Tuesday, the market’s opening day, reached just over $440,000. Wednesday’s numbers were slightly higher and, while both stores were closed for the Thanksgiving holiday, sales continued to surge later during the holiday weekend.

The market launch has been so successful in part due to the draw of so-called “cannabis tourists” from nearby states, including New York City. Some community members in Leicester were incensed by the uptick in local traffic caused by long lines at Cultivate.

Resident Kim Miczek complained of people urinating on her front lawn while waiting in line, according to another report. “My road has become a long parking lot. I don’t like it,” she said during a Leicester Town Hall emergency meeting on Monday night.

However, another Leicester resident John Shocik said that though he didn’t originally vote for legalization, he was pleased by the extra attention and business it has brought to the town. “I didn’t vote for it but people did. We want more businesses … here there is a business,” he said.

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Michigan state Capitol building in Lansing, Michigan.

Michigan Legalization Takes Effect December 6

11/28/2018

by Graham Abbott

Michigan’s voter-approved cannabis legalization initiative takes effect on December 6, 2018, exactly ten days after the election results were certified by the state Board of Canvassers, The Detroit Free Press reports.

Michigan voters delivered on a successful cannabis legalization bid during the 2018 midterms — the state’s legalization plan will allow for adults 21+ to possess up to up to two and a half ounces of cannabis, allow the home cultivation of up to 12 plants, and will establish a taxed-and-regulated cannabis marketplace.

Michigan prosecutors have already quietly begun dismissing low-level criminal cannabis charges. Last week, Macomb County Prosecutor Eric Smith issued a memo to his staff instructing them to begin the process of dismissing all charges that would have been allowed under the new law — according to the report, Oakland County’s prosecutors and have done likewise.

“Now that Proposal 1 has passed, the Wayne County Prosecutor’s Office is committed to following the law regarding the prosecution of marijuana cases. … Although the law is not retroactive, in the coming weeks we will assess the tickets that have already been charged, as well as those pending review, taking the new law into consideration.” — Wayne County Prosecutor Kym Worthy, in a statement.

“It’s a huge relief, it was a two-year process for this campaign, but there are people who have been working on this issue their entire adult lives,” said Josh Hovey spokesperson for the Coalition to Regulate Marijuana Like Alcohol.

According to Sally Williams, director of elections for the Secretary of State, Michigan voter turnout this year broke records with more than 4.3 million ballots cast. “For a gubernatorial year, we smashed the record for turnout,” Williams said. “It looked more like a presidential year.”

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Medical Psilocybin Initiative Planned for Oregon 2020 Ballot

11/28/2018

by Pat Beggan

The Oregon Attorney General has approved the wording of a medical psilocybin ballot initiative, which is the final step before supporters can collect signatures to place the issue on the 2020 ballot, Marijuana Moment reports.

No U.S. state has attempted yet to reclassify psilocybin, one of the mind-altering chemicals in “magic” mushrooms, as medicine. If the Oregon Psilocybin Society (OPS) is able to collect the 140,000 signatures necessary to get the measure on the ballot, Oregon will be the first.

“We’re excited to gather signatures in support of establishing a community-based service framework, in which licensed providers, along with licensed producers of psilocybin mushrooms, can blaze new trails in Oregon in accordance with evolving practice standards.” — Tom Eckert, OPS co-founder, via a press release

There is a fair and growing body of evidence that supports the use of psilocybin in the fight against depression, addiction, and other conditions. Research shows that psilocybin encourages the formation of new brain cells in a process known as “neurogenesis,” among other effects.

Psilocybin is classified, like cannabis, as Schedule I by the federal government, which means that research into the therapeutic benefits of mushrooms containing the chemical is decades behind where it should be.

Describing a battle familiar to cannabis advocates, the OPS said that it had to, “fight for neutral and accurate wording,” during the approval process for the potential ballot measure. However, the organization was able to talk the Attorney General’s office down to a wording that the organization was “generally satisfied” with.

The final ballot measure wording can be seen on the OPS website.

OPS is now tasked with collecting the 140,000 signatures necessary for participation in the 2020 elections. OPS has contracted a marketing research company to help reach that goal.

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South Korea Legalizes Medical Cannabis

11/27/2018

by Graham Abbott

South Korea became the first East Asian country to legalize medical cannabis following a pivotal vote this week by the country’s National Assembly, MJBizDaily reports.

Lawmakers voted to revise South Korea’s Act on the Management of Narcotic Drugs to allow for the prescription of low-THC, CBD-rich medical cannabis products. The plant will be regulated by the Korea Orphan Drug Center and patients will be given access on a strictly case-by-case basis.

“South Korea legalizing medical cannabis, even if it will be tightly controlled with limited product selection, represents a significant breakthrough for the global cannabis industry. The importance of Korea being the first country in East Asia to allow medical cannabis at a federal level should not be understated. Now it’s a matter of when other Asian countries follow South Korea, not if.” — Vijay Sappani, CEO of Ela Capital in Toronto, via MJBizDaily

The move was surprising for a culture and country that — following Canada’s landmark legalization efforts — has distanced itself from cannabis reforms and suggested to its citizens they could be prosecuted if they were discovered to have used cannabis while living, traveling, or studying overseas.

Nearby, Thailand and Malaysia have also considered medical cannabis reforms but, for now, South Korea joins Sri Lanka in being the only countries in Asia that have taken steps to reform the absolute prohibition of cannabis.

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Ancient Virus Created CBD and THC, Genome Map Reveals

11/27/2018

by Pat Beggan

Researchers at the University of Toronto have completed the first total chromosome map for cannabis sativa, discovering that ancient viruses changed the plant’s DNA to cause the evolution of CBD and THC, according to ScienceDaily.

The map reveals the genes that control the creation of THC and CBD are surrounded by garbled DNA that is associated with long-ago viral infection. Viruses will change the DNA of a host in order to continue making copies of themselves, which is exactly what happened to the cannabis plant millions of years ago. That “junk DNA” spread into areas of the gene that were responsible for creating cannabinoids and altered which chemicals it was creating.

The mutation was beneficial, so it stuck around. Human selection of the cannabis plant further reinforced and tuned the changes.

Tim Hughes and his team at the University of Toronto, Jonathan Page of the University of British Columbia and Aurora Cannabis, and Harm van Bakel of the Icahn School of Medicine at Mt Sinai collaborated to write the paper describing the chromosome map and its associated discoveries. The co-authors published their report’s first draft in 2011 but did not reach the more interesting conclusions until this year.

Other discoveries from the complete genome map include confirmation of separate genes for CBD and THC — meaning it should be possible to produce a cannabis plant that does not make any THC, though attempts so far have been unsuccessful.

The team also discovered the gene for a little-known cannabinoid called cannabichromene (CBC). There are hundreds of cannabinoids known to be produced by the cannabis plant, many of which remain unidentified and unstudied.

Researchers point to cannabis prohibition and the associated lack of research to explain the delay in completing a total genome map for cannabis.

“Mainstream science has still not done enough because of research restrictions. Legalization and looming ease of research regulation really provide for opportunities for more research to be done. And Canada is leading the way.” — Jonathan Page, co-author of the study, to ScienceDaily

The study was published in the journal Genome Research. Researchers hope the map will allow easier study of the cannabis plant now that federally-funded research is possible in Canada.

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Aurora Completes First Shipment of Cannabis to Czech Republic

11/27/2018

by Pat Beggan

Canadian licensed producer Aurora Cannabis has completed its first shipment of medical cannabis products to the Czech Republic, MarketWatch reports.

The Czech Republic is the 21st country to have its medical cannabis needs met by Aurora Cannabis. The Czech Republic started its medical cannabis program in 2013. Patients in the country are allowed 180 grams of dry flower a month, which must be prescribed by an approved doctor.

“This supply arrangement demonstrates our ability to enter into new jurisdictions as the partner of choice in new markets with strong barriers to entry, and is testament to the strength and business execution of our European business development team.” — Neil Belot, Chief Global Business Development Officer for Aurora Cannabis, in a press release

Aurora Cannabis is one of the largest producers of cannabis in Canada. The company was recently approved to list on the New York Stock Exchange, making them only the third cannabis company to trade publicly in the U.S.

Despite an influx of good news stories for Aurora — including the Czech delivery — the company’s share prices continue to fall. Most other publicly-traded cannabis companies are seeing the same, having previously enjoyed a boom from investor speculation on the newly-legalized industry, but initial excitement for the industry is starting to wear off.

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New Jersey Lawmakers Advance Legalization Plan

11/26/2018

by Graham Abbott

New Jersey lawmakers have started to consider legislation that would legalize adult-use cannabis throughout the state, the Associated Press reports.

UPDATED: The New Jersey budget committee voted in favor of advancing the legalization legislation. The proposal now moves toward full floor votes in the Assembly and Senate.

Lawmakers convened Monday for a joint Democrat-led Assembly and Senate budget committee to discuss the state’s latest cannabis legalization legislation package. The proposal has been championed by Sen. Nicholas Scutari (D-Union), who opened today’s discussion with nods toward the potential economic benefits of legalization.

“It’s going to stimulate the economy of New Jersey like nothing ever has before — an entire new industry that people can actually start from the ground level up,” Scutari said. “We’re on the precipice of a historic event here, starting something and creating jobs like not other Legislature has done before. We have that opportunity.

The proposed legislation package includes several amendments to New Jersey cannabis laws:

One bill, S2703, would legalize adult-use cannabis and impose a 12 percent state tax with options for local municipalities to levy another 2 percent tax on the industry. The bill would allow possession of up to one ounce of cannabis flower.
Two other bills, S10 and S2426, would raise medical cannabis patients’ possession rates and mandate the issuing of 34 new medical cannabis licenses, respectively.
A fourth cannabis bill, S3205, would “revise certain procedures for expungement of records of conviction” — S3205, however, has not yet been introduced.

“We stand on the verge of a major change here in New Jersey. It’s been a long road but today we’re on the verge of something very significant, and it’s not something that’s been done haplessly or recklessly. As we go through this bill, there’s a great deal of thought reflected.” — New Jersey Assembly Budget Committee Chair John Burzichelli (D-Salem)

New Jersey Gov. Phil Murphy (D) supports the end of cannabis prohibition but has not weighed in yet on this specific legalization plan. On the campaign trail, then-candidate Murphy said he would call for cannabis legalization within the first 100 days of his administration. Failing that, however, the governor and his party adjusted their goal to legalizing by year’s end.

“We have to take our head out of the sand. We have to realize that what we tried to do simply isn’t working,” Sen. Scutari said on Monday.

Deliberations were still ongoing at the time of this article’s publishing.

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Oregon Inspectors: One-Quarter of Growers Not Compliant

11/26/2018

by Pat Beggan

The Oregon Liquor Control Commission (OLCC) inspected more than half of the state’s outdoor grow operations this season and found 27 percent to have regulatory compliance shortcomings, according to a Canna Law Blog report.

Inspectors looked at grows across the state during the fall growing season in “Operation Good Harvest.” They inspected 354 of Oregon’s 628 licensed operators — of those 354 licensees, 27 percent had “deficiencies,” or issues with compliance. In total, inspectors found 41 violations that were serious enough to give cause for the state to revoke a licensee’s business license, pending reviews.

The OLCC reported a wide variety of violations, though the majority were issues with cameras and security surveillance equipment. Other issues included:

Entries in the Cannabis Tracking System (METRC) not matching plants or product
Cannabis not tagged and entered into the Cannabis Tracking System
Failure to provide the OLCC with harvest information
Using unapproved scales to weigh product
Making unapproved alterations to licensed grow area

The state executed Operation Good Harvest as a part of a program aimed at reducing diversion of legal cannabis into the illicit market.

“The inspections reflect our agency’s effort to prevent diversion from Oregon’s legal cannabis market, and we’ll continue compliance activity across all license categories to maintain the well-regulated market that Oregonians expect.” — OLCC Executive Director Steve Marks, in the report

Overproduction is considered a big part of the problem when it comes to Oregon’s cannabis diversion, in part because it keeps prices too low to fully cover the costs of licensed grows. To help the industry survive this wave of bad business tidings, the OLCC has promised to pause the approval of new cannabis licenses — this is expected to help address falling prices.

The OLCC notified growers of upcoming compliance checks in June. The agency has tightened up enforcement over the last year after the U.S. District Attorney for Oregon Billy J. Williams called Oregon‘s cannabis program “out of control.”

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North Carolina Lawmakers Meet to Discuss Cannabis Reform

11/26/2018

by Pat Beggan

North Carolina state Representative Kelly Alexander (D-107) said he is meeting with other lawmakers to discuss legalizing cannabis this week, CBS 17 reports.

Rep. Alexander said that he’s hoping to push the idea of legalizing with plenty of local control, much the same way North Carolina currently regulates alcohol.

“We have dry counties. We have wet counties. We have portions of counties that may be wet, and the rest of them are dry. All of those are driven by local option decisions. Either by the decisions of local-elected boards, or by votes of the people.” — North Carolina Rep. Kelly Alexander (D) to CBS

The North Carolina chapter of the National Organization for the Reform of Marijuana Laws (NORML) backs Rep. Alexander’s move. Abner Brown, a NORML representative, said the organization is organizing supporters for a rally in January at the state capitol in Raleigh.

“We’ve sent letters out and have contacted all of our elected officials in North Carolina to get their responses about how they felt about cannabis reform,” Brown said.

Though both Rep. Alexander and NORML are looking to advance the state towards legalization, resistance to pro-cannabis reforms remains throughout North Carolina.

“It’s time now for the legislators in North Carolina to catch up with the people,” Rep. Alexander told CBS.

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Ganjapreneur 2018 Holiday Gift Guide

11/26/2018

by Pat Beggan

If you’re looking for great cannabis gifts for the ganjapreneur or cannabis aficionado in your life, look no further. We’ve compiled a comprehensive list of the most interesting, useful and entertaining gifts available.

Storage

Anyone who takes their cannabis seriously will undoubtedly have all kinds of equipment they need to keep track of. Why not grab a unique storage solution for all those loose pieces?

Black Rock Originals Smell-Proof Carryall

This smell-proof bag from Black Rock OG is perfect for the cannabis professional in your life. The carry-all is discreet and its smooth style doesn’t clash with business attire.

The Black Rock Carryall is the size of a Dopp kit, or toiletry bag. It will hold a few jars of flower or concentrate and all of your accessories, pipes, papers, and other cannabis accoutrement. It truly is smell-proof, too, making sure that your medicine keeps its scent to itself. Best of all it comes with a combination lock that will keep your kids, pets or co-workers out of your stash.

Black Rock also offers other sizes of smell-proof stash organization, like the smaller safety case or the larger backpack.

AnnaBis Aroma-Bloc Handbag

For the stylish ganjapreneur that might tote a purse, there’s another smell-proof solution. The AnnaBis line of Aroma-Block handbags fuse beauty and functionality for the cannabis professional with a more feminine appeal.

The bags feature multiple style choices. There are two separate smell-proof compartments inside each bag — one that’s in plain sight and a larger one that lives under a concealed flap of fabric. The bags also contain details like cell-phone pouches and sleeves for pens, lip gloss, or lighters.

Hakuna Supply Locking Book Boxes

Hakuna Supply is known for their amazing stash boxes. Those can make great gifts on their own, but we wanted to include a gift for the future ganjapreneurs who live in places where cannabis prohibition is still in effect.

The book boxes are real metal safes concealed within a faux-leather book exterior. The inside is lined with soft felt to keep your glass pipes and jars safe from jostling. The books lock with a metal hinge, concealed beneath the cover. It’s a perfect way to corral your stash and keep things discreet in your office or home.

Smoking Supplies

Love the ritual of rolling a joint or loading a new smoking piece? Give these standout smoking-gear gifts to help a colleague or loved-one imbibe in style!

Luxe Luxury Rolling Papers

Exotic rolling papers are one of the best ways to stand out at the holiday party or win that round of white elephant without breaking the bank.

Luxe makes a fantastic line of beautiful, unique rolling papers in a variety of patterns. All the patterns are inspected by master paper-makers at printing and produced using only organic ingredients and vegan glue. Some of the patterns were even created by famous brands like Versace and Louis Vuitton.

Shine 24K Gold Rolling Papers

While some rolling papers might make a great gift for the under-$10 crowd, for those who want to let the world know their cannabis startup just got acquired we recommend the Shine 24K gold rolling papers.

The papers are made with hemp and a layer of real 24K gold on the outside. As they burn — nice and slow to savor the cannabis — the gold becomes mixed into the ashes, letting everyone at the acquisition party know who the high-roller is. They even make blunt wraps!

Zong Glass No-Spill Waterpipes

For the ganjapreneur who prefers using a classic waterpipe to consume their cannabis — but who deserves something unique, nonetheless — we recommend Zong Glass.

Zong has been making custom glass pipes since the early 1990s in San Diego. They’re a piece of cannabis history, originally crafted in a time when you really needed to pretend that your pipe was for tobacco. Their trademark kink keeps the bongwater inside the piece if tipped over. The classic zong can be laid entirely on its side without spilling, in fact.

Danglebong Titanium Water Pipe

Some people like to go light and fast in life and in cannabis. Made from titanium, the Danglebong is light-hearted in name and light in weight too, perfect for the outdoors enthusiast in your life.

The titanium water pipe is unbreakable and has a small handle that clips perfectly to the outside of a backpack, under the seat of your bike or to the belt-loop of your jeans while you pop out on that mind-expanding hike. Danglebong also makes a variety of other ultralight titanium pipes for those that want something even more compact.

Tools

Help someone on your cannabis Christmas list get that joint rolled or that pipe packed with these awesome cannabis pocket tools!

Nugtool Alox Collection

The Nuggy Hybrid and Nuggy Vape are both great multitools for the serious cannabis consumer. Anyone who regularly uses a vape or pipe knows how often you need some sort of tool to help with loading or cleaning.

The Nugtool has a scraper, cutter, tamper, a roach clip, and more. It’s encased in an aluminum shell and comes shipped in a white gift box. It folds down and stores easily in your stash box or bag so you never have to be without your multitool.

The Lighterbro

Lighter cases are a common piece of swag and personalization for the cannabis enthusiast — but what if there were tools like scissors, a knife, or a stir stick built-right in? That’s exactly what the Lighterbro is.

Not only does it function great for your smoke sesh, it also works great in everyday life. There’s a micro-Phillips screwdriver for working on those tiny screws in your eyeglasses or electronics and a bottle-opener built into the bottom of the case so you don’t have to damage your lighter just to get that bottle of beer or cannabis-infused soda open. Available in a variety of finishes and colors!

Banana Bros. Automatic Grinder & Cone Roller

For those among us obsessed with gadgets or just plain lazy like I am, there’s the unique Banana Bros. Automatic Grinder and Roller. This handy device will not only grind your cannabis — it’ll also pack it into a filter cone.

It’s almost unbelievable but you can go straight from bud out of the stash jar to joint without any work on your part. Not only is it easy, but it packs it the same way every time to prevent canoeing, waste, or uneven dosing. It’s battery-powered, too, so it travels as well as you do!

Cannabis Books

Fill your business partner’s heart with joy and head with facts from these informative and entertaining cannabis books.

Heart of Dankness: Underground Botanists, Outlaw Farmers and the Race for the Cannabis Cup

Mark Haskell Smith’s narrative non-fiction foray into cannabis culture is a must-gift to anyone who appreciates old-school cannabis culture or new-school cannabis research. Smith goes around the world from California to Amsterdam chasing down exactly what a perfect strain is and the people who make it happen, written in a page-turning-novel format.

Hailed as “an insightful and fascinating story” by the Los Angeles Review, Heart of Dankness is the perfect gift for a business major who’s just stepping into the cannabis industry or for that passionate cannabis advocate in your life.

The Leafly Guide to Cannabis: Handbook for the Modern Consumer

This guidebook is an amazing resource for all aspects of the cannabis experience. Leafly has collected information on the history, chemistry, and methods of consumption of the cannabis plant. They’ve even got a “troubleshooting” section to help talk you down from being too high.

This guide is a great gift for the cannabis beginner who wants to learn how to roll a joint or the old-school smoker looking to catch up on terminology and modern strains. Leafly is a known authority on cannabis, possessing one of the largest databases of strains and their effects currently available on the internet, and the Leafly team’s book is a great way to get some of that knowledge for yourself.

Green: A Field Guide to Marijuana

This beautiful, photographic field guide to cannabis strains is perfect for the reception area of your cannabis startup or the coffee table in your home. Green is filled with hundreds of pages of large, high-resolution photos of cannabis buds and the effects, taste, and lineage of those strains.

If you have a cannabis aficionado in your life whose coffee table is empty or if a cannabis entrepreneur in your life needs a little more flash in their waiting room, pick them up a copy of Green. There is no other cannabis book on the market that can compete with this one’s quality of photography.

CBD

Cannabis is medicine. Because they’re THC free, these CBD gifts can even be given to loved-ones in states that still prohibit cannabis.

Club Hemp CBD Hemp Oil Products

Club Hemp has a number of Hemp oil and CBD-rich products that may appeal to gift-buyers this season. Club Hemp likes to say they sell unique experiences, and the three different formulas of hemp oil extracts in their Power Pack — each designed to produce a specific feeling — certainly indicate that. They also make other wellness products, like pain-relieving sprays and beauty products like hemp body butter. Club Hemp’s offerings don’t stop at gifts for other people, either — they also offer a variety of CBD products for your fur baby.

Nothing is as important for an entrepreneur as maintaining a focused and relaxed mind. Club Hemp’s offerings are made from trustworthy, pure hemp oil from plants grown in Colorado. Use coupon code “thanksgiving” to receive 25 percent off if buying on Cyber Monday!

Bluebird Botanicals Hemp CBD Extract and Hempseed Oil Capsules

Bluebird Botanicals produces a number of hemp extract, CBD-rich supplements. Our favorite in the Ganjapreneur offices, however, are the hemp oil capsules. Containing 15mg of CBD per dose, these capsules are a quick and easy way to kill pain or take the jittery edge off that tenth cup of coffee.

Bluebird Botanicals prides themselves on the purity of their products. They also use a full-spectrum hemp extract that includes other phytochemicals and cannabinoids for true healing. If there’s someone in your life that has a need for medicine without the altered state of mind from THC, we recommend Bluebird Botanicals.

Innovetpet CBD Hemp Dog Treats

Your dog deserves a gift this holiday season just as much as anyone else — and maybe more. These crunchy CBD dog treats will help your old dog feel young again or take the edge off their anxiety.

The Innovetpet treats come in several flavors, including steak & cheese, salmon & sweet potato, and maple bacon & berries. If your dog is anxious or has painful joint inflammation, these treats just might bring back them back to puppy shape!

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California Cannabis Sales Back On Track With 3rd Quarter Growth

11/21/2018

by Pat Beggan

According to state reporting, adult-use sales in California grew significantly in the third quarter, totaling $350 million, according to The Motley Fool.

Matt Karnes of GreenWave Advisors said the numbers represent a 24 percent increase over the previous quarter. This is good news for California, as the state has struggled to meet sales expectations since cannabis became legal in January 2018. Many towns have outright banned adult-use dispensaries, resulting in lower-than-expected sales as many people have remained with their illicit sources due to a lack of retail locations.

The state increased the number of dispensary licenses by 10 percent in the third quarter which, combined with increased dispensary sales, accounts for the 24 percent increase. From the $350 million in adult-use sales in Q3, California collected $52 million in taxes, surpassing last quarter’s $42 million and blowing the first quarter’s $34 million out of the water.

Several large, publicly-traded cannabis companies are expected to see the benefits of California’s improved sales rates. Both KushCo Holdings and MedMen Enterprises, two over-the-counter cannabis stocks, do a majority of their business in the California market.

California’s adult-use market is quickly catching up in revenue to its medical cannabis market, which completed $3 billion in sales last year. California’s medical market alone is almost twice as large as Colorado’s medical and adult-use markets, combined.

As more dispensaries open and supply chain issues are solved, California‘s growth should not slow any time soon.

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One-Third of Canadian Cannabis Consumers Still Use Illicit Market

11/21/2018

by Pat Beggan

An Ipsos poll surveyed Canadians who have bought cannabis since October 17 and found that 35 percent used their pre-legalization sources, Global News reports.

One of Canada’s biggest reasons for legalizing was to combat the illicit market. Vancouver and other places in Canada have struggled to shrink their illicit markets, largely because the Canadian government takes a more reasonable approach and refuses to rely on “guns and head-bashing.”

The poll, which surveyed 2,402 Canadians and was statistically adjusted to reflect the demographics of Canada, was structured to figure out where Canadians are currently getting their cannabis. The exact results, accurate to within 2.3 percent, were:

28 percent used government websites
28 percent used government stores
22 percent visited licensed private stores
16 percent shopped at a licensed private website
35 percent stuck with their previous non-government dealers

It’s still too early to tell exactly what the poll data means, but supply shortages, pricing complaints, and uncertainty over changing regulations have kept the new legal market on rocky footing — but those issues are expected to be resolved with time.

Allan Rewak, the Cannabis Council of Canada’s executive director, said that legalization a process, not an act.

“We are competing against very well established, very robust and very wealthy illicit market places serving Canadians for almost a hundred years.” — Allan Rewak, Executive Director of the Cannabis Council of Canada, in a statement

Rewak, who expects the number of consumers accessing the legal market to climb, said he was heartened by the survey results. Others are not so sure and argue that it’s more than just growing pains.

Some experts indicate the current price is too high while others point out that, until edibles are made legal, some people can’t get the product they need from legal sources, anyway. Other consumers are stymied by the requirement of some provinces of having a permanent address and credit card.

The only thing that’s clear is that the entire world is watching Canada as it both discovers and attempts to solve problems associated with legalizing cannabis in an industrialized nation.

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Elon Musk Weed-Smoking Video Prompts NASA Investigation

11/21/2018

by Graham Abbott

NASA has announced an investigation into the culture of SpaceX after a video of Elon Musk smoking a blunt with Joe Rogan went viral, The Washington Post reports.

Three officials with knowledge of the issue told The Washington Post the incident was related to Musk’s appearance on Rogan’s podcast, which was live-streamed on YouTube and featured the business mogul take one hit off a blunt and have several sips of whiskey.

“If I see something that’s inappropriate, the key concern to me is what is the culture that led to that inappropriateness and is NASA involved in that. As an agency we’re not just leading ourselves, but our contractors, as well. We need to show the American public that when we put an astronaut on a rocket, they’ll be safe.” — NASA Administrator Jim Bridenstine, in a statement

The review will begin next year and will investigate SpaceX and Boeing, both companies that NASA relies on to fly their astronauts.

NASA will examine “everything and anything that could impact safety,” said William Gerstenmaier, NASA’s associate administrator for human exploration.

SpaceX — which was founded by Elon Musk with the goal of reducing space travel costs and enabling the human colonization of Mars — released a statement saying it, “actively promotes workplace safety, and we are confident that our comprehensive drug-free workforce and workplace programs exceed all applicable contractual requirements.”

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Dean Ween Pitches Canna-Friendly Denver Music Venue

11/21/2018

by Graham Abbott

Guitarist and songwriter Dean Ween, best known as guitar player for the alt-rock band Ween, wants to open a cannabis-friendly music venue in Denver, The Denver Post reports.

The venue would be named Dean Ween’s Honeypot Lounge and, according to chief operating officer Michael Polansky, organizers hope to have the venue licensed and open for business by April 20, 2019.

“I think cannabis and music make total, total sense together. … We think that we can offer a unique kind of musical experience for Denver and the world.” — Michael Polansky, via The Denver Post

Polansky said the business would serve as a social use venue and would offer daytime education and wellness programs. Organizers have not yet announced an intended location for the venue but said they plan to apply for the license within the next few weeks.

Dean Ween, whose legal name is Michael Melchiondo Jr., confirmed his involvement to The Denver Post.

Denver is one of the only U.S. cities that has laws allowing for social cannabis use venues but, so far, only one business has successfully completed the process. The rules for such licenses are stringent: businesses must secure the approval of their surrounding neighborhood before opening, and Colorado state law prevents any cannabis venue from serving alcohol. State law also prevents social-use venues from allowing people to smoke indoors — venue attendees would likely have to get high via edibles or by vaping.

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FDA Chief: Federal Cannabis Action Is An ‘Inevitability’

11/20/2018

by Graham Abbott

U.S. Food and Drugs Administration (FDA) Commissioner Scott Gottlieb said in a CNBC interview on Friday that a federal cannabis “policy reckoning” is “an inevitability.”

First noted by Marijuana Moment, the statement made up just part of a larger interview but, for cannabis professionals, it’s an optimistic signal of validation for the industry, which exists despite the constant risk of a federal crackdown.

“I think there’s probably going to be a policy reckoning around this at some point in the future. Obviously, it’s happening at the state level and I think it’s an inevitability that it’s going to happen at the federal level at some point soon.” — FDA Commissioner Scott Gottlieb, in a televised CNBC interview

The statement was made in response to inquiries from CNBC’s ‘Squawk Box’ co-anchor Joe Kernen, who asked if the country would be “OK” if cannabis becomes as readily available as alcohol.

Gottlieb did not elaborate further on his sentiment, though the FDA commissioner smiled at first when the cannabis question was broached, acknowledging that his staff had predicted the line of questioning.

Earlier this year, the FDA approved the nation’s first cannabis plant-based medication: Epidiolex, a drug for children with rare and severe cases of epilepsy. While investigating Epidiolex, the FDA also determined that CBD should be descheduled entirely.

With Democrats having secured the House during the midterm elections, federal cannabis reforms could become a key issue on the docket for the 2019 legislative session.

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Massachusetts Adult-Use Sales Launch Today

11/20/2018

by Pat Beggan

The first two adult-use retail outlets are finally open in Massachusetts, more than two years after voters decided to legalize cannabis in the state, Fortune reports.

Two stores open today: Cultivate, in Leicester; and New England Treatment Access (NETA), in Northampton. They’re the first commercial cannabis retail outlets open to the general public on the East Coast. Customers need cash — though they can reportedly use a debit card at NETA — and ID showing that they’re over 21. Massachusetts law allows for purchase of up to one ounce of flower.

The cannabis licensing and approval process in Massachusetts has been fraught with delays. The state has been slow and careful in approving businesses for each stage of the supply and testing chain. Hopefully, today will signal a flood of new license approvals and “commence operations” notices from the state government for the remaining applicants.

Both retail outlets selected symbolic first customers. At Cultivate, the first customer was disabled Iraq War veteran Stephen Mandile and at NETA it was Northampton’s Mayor David Narkewicz, also a veteran.

“I’m proud to go to new businesses that create new tax revenue for the city and be there for their opening. I’m not going to act any differently because the new business happens to be adult-use marijuana.” — Mayor David Narkewicz, to the Boston Globe

There is a slight complication, however, as Massachusetts is in the middle of a snowstorm. Crowds are expected nonetheless. At Cultivate, CEO Sam Barber said they will have heated tents, music, and food despite the snow. Police details will also be on hand to help monitor the crowd during the snowstorm and to dissuade any potential impaired driving.

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Industrial Hemp Could Help Save the Bees

11/20/2018

by Pat Beggan

A researcher investigating industrial hemp fields in Colorado has discovered that the plant is extremely popular with many different bee species, according to Science News.

Though hemp flowers don’t produce nectar, they do produce large quantities of pollen which bees use for food. Bees are also known to use pollen to feed their larval young. More importantly, hemp plants flower later than many other plants, providing a valuable late-season food source for bee populations that have struggled in recent years.

Colton O’Brien was the etymology student who conducted the survey, which revealed that bees from 23 out of the 66 genera known to inhabit Colorado were found in the two hemp fields. “You walk through fields and you hear buzzing everywhere,” said O’Brien, who spent an entire month surveying two different hemp plots in Colorado.

The 2014 Farm Bill allowed states to develop industrial hemp pilot programs, but the addition of industrial hemp’s legalization to the pending 2018 Farm Bill makes it clear that hemp farming is on the rise. For bees, the only real danger will be what happens as hemp scales up to be a major industrial crop — agricultural pests drive many large farming operations to use pesticides, which is a major contributor to the current decline in bee populations.

Further study is needed to determine exactly how nourishing hemp pollen is for the bees but, as a late-season food source for already-stressed bees, any help is valuable.

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Cova Raises $8 Million in Initial Funding Round with Golden Opportunities Fund

11/20/2018

by Featured Announcement

Denver, CO – November 19, 2018 — Cova, the company behind the cannabis industry’s most robust point-of-sale (POS) solution, has raised $8 million in an initial fundraising round with Golden Opportunities Fund (“Golden”), managed by Westcap Mgt. Ltd. (“Westcap”).

Founded in 2016, Cova has designed and built purpose-driven POS and retail management solutions that power a complete end-to-end customer experience for cannabis retailers.

“All of Cova is excited about the opportunity to accelerate our growth with this investment from Golden Opportunities Fund, who have been great to work with,” says Gary Cohen, CEO of Cova. “We’ll leverage these funds to continue building the industry’s leading cannabis retail software platform while selectively expanding our North American footprint.”

The new funding will be used to accelerate further product development and enhancements to build upon Cova’s current industry-leading capabilities ranging from pioneering offline transaction handling, express self-service checkout, looping prevention, dashboard-based reporting and analytics, 99.98% uptime, and more.

“Cova exemplifies the type of investment that we target in a company with a proven track record of success, significant business opportunities in an emerging market and a highly experienced management team that we have a strong history with,” comments Grant Kook, President and CEO of Golden. “This investment also complements the strategic positioning of Golden’s portfolio to focus on innovation.”

Discover Cova’s full product suite by visiting www.covasoftware.com.

About Cova
Cova is the leading POS solution in the cannabis industry. The Cova team’s relentless pursuit of creating the industry’s first lovable POS has led to solutions that help retailers simplify compliance, reduce operational costs, and increase revenue through automated compliance, inventory management, mobile reporting dashboards, and Cova’s Express Checkout app. With a growing network of cannabis industry partners including Baker, I Heart Jane, greenRush, springbig, Bud Bytes, and Budvue, Cova’s seamless tech ecosystem gives retailers access to the best tools available to run their business. Cova’s offices are located in Denver, CO, Vancouver, BC, and Regina, SK.

Learn more at www.covasoftware.com.

About Golden Opportunities Fund Inc.
Golden is the first and longest-standing Provincial Retail Venture Capital Fund in Saskatchewan founded 20 years ago. The Fund is managed by Westcap, a leading private equity and venture capital fund manager for over 25 years that has completed over $1 billion in transactions in more than 200 growth companies.

Learn more at GoldenOpportunities.ca or WestcapMgt.ca.

For further information, please contact:
Faai Steuer
Director of Marketing | Cova
Phone: 888.888.8170 ext 1808
Email: Faai@covasoftware.com

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Except in California, Falling Cannabis Prices Mean Falling Tax Revenue

11/19/2018

by Pat Beggan

Legal cannabis prices continue to fall and the states that base their taxes on price are seeing similar drops in tax revenue despite rising sales, The Washington Post reports.

Only states that tax cannabis by weight, like California and now Maine, are seeing benefits from increased sales.

Across the board, states with legalization have seen cannabis prices fall. In Oregon, the price per pound can go as low as $100. In Colorado, the cannabis tax rate was increased last year from 10 percent to 15 percent — any additional revenue that might have been generated, however, was eliminated by falling prices.

Though most economists predicted the price would drop, many were far from the mark when guessing the bottom. Economist Jeffrey Miron, who was in favor of legalization, predicted that the price of cannabis wouldn’t fall more than 50 percent once cannabis was legalized, but that milestone has come and gone.

Jonathan Caulkins, a drug policy analyst, may have made the best prediction. He said that cannabis would behave like many other agricultural products and that the price would fall to a level comparable to wheat. If the price continues to decline as more states legalize, existing tax structures based on a percentage of price might not even be able to fund the regulatory body that oversees the market, much less fund things like education.

The simplest way regulators could solve this problem is to switch to a system similar to California’s: tax the plant by weight. The obvious downside to that strategy is that it incentivizes cannabis producers to make their product more potent, a problem lawmakers could potentially solve by establishing potency limits.

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Michigan Communities Begin Banning Cannabis Production After Legalization

11/19/2018

by Pat Beggan

Many Michigan communities are opting out of allowing cannabis facilities after this month’s legalization vote, according to The Detroit News.

Michigan towns like Monroe and Portage as well as Detroit-area communities like Pinckney and Troy have told their residents they will opt out of allowing commercial cannabis production there. Monroe has already passed an ordinance forbidding the industry — the day before the vote, in fact.

Plenty more are expected to follow — notably, when Colorado legalized in 2014, 75 percent of communities opted out of allowing commercial production.

Some have debated how long the Michigan communities have to opt out and what recourse voters may have to organize a response to a local government’s decision. Michigan’s adult-use cannabis law indicates, for instance, voters can collect signatures to get the matter on the ballot of the “next regular election.” Differing opinions about when exactly the “next regular election,” however, began almost immediately to crop up.

“There’s definitely been a lot of questions and some of the answer is ‘Well, we think this is what it meant, but until it’s litigated, we won’t know for sure.’” —Jennifer Rigertink of the Michigan Municipal League, via The Detroit News

Josh Hovey, spokesperson for the Coalition to Regulate Marijuana like Alcohol, said any communities that wish to opt out should do so before the state begins issuing licenses, expected within the next year.

While the law allows communities to completely opt out, it also allows them to permit commercial operations with restrictions, as long as they don’t conflict with state law and aren’t “unreasonably impractical.” With that in mind, some officials from towns that are moving to opt-out indicate they may opt back in at a future time when Michigan’s legal market is more established.

Michigan is asking communities that opt out to inform the state’s cannabis licensing body so that application processing is not slowed.

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Ontario Cannabis Retailers Race to Satisfy Security, Insurance Requirements

11/19/2018

by Graham Abbott

Hopeful future cannabis retailers of Ontario are racing to make sure they have the necessary security and insurance protections for operating a cannabis retailer in the province, The Growth Op reports.

The process is made more complicated, however, because many of the retailers’ requirements are not yet fully laid out. Thomas Gerstenecker — CEO of 3|Sixty Secure based out of Almonte, Ontario — said in the report that hopeful operators “should be setting up their security protocols now,” though the province’s retail security requirements are still “in a state of flux, although we don’t believe they will be as stringent as they were for the licensed producers.”

“Security considerations will likely be a component of the application process. … We don’t know how specific the requirements will be … [but in] any event, it would be prudent to partner with someone expert in security practices.” — Harrison Jordan, a Toronto-based cannabis lawyer, via The Growth Op

Insurers, meanwhile, are still trying to assess the new industry’s risks and many providers will be stuck guessing at appropriate insurance coverage rates — at least until several claims have been made and the industry average becomes more apparent.

Ontario cannabis retailers are slated to open as early as April 1, 2019.

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California Proposed Rule Changes Would End Cannabis White Labeling

11/16/2018

by Pat Beggan

California’s newest set of proposed cannabis business regulations contain several controversial changes, including a potential end to cannabis white-labeling, Marijuana Business Daily reports.

The new rules, of which drafts have been released, have not been finalized. The public comment period, however, has ended and regulators must now decide on the final rules.

In the newest draft rules, there is broad language that forbids licensed cannabis companies from doing business with any unlicensed company. This would include, for instance, celebrity brands or previously licensed cannabis businesses that are in flux.

Pamela Epstein, founder and CEO of Green Wise Consulting, said it is an end to white-labeling, also known as contract manufacturing or co-packaging.

Previously, established brands without cannabis licenses but with a pro-cannabis customer base would contract with licensed producers to have them make products on their behalf. Also, long-established cannabis businesses in the process of moving operations could temporarily contract another licensed producer to continue manufacturing their products.

The proposed changes would also lower the amount of cannabis products that delivery drivers are allowed to carry from $10,000 worth to just $5,000. The draft regulations also require that $2,000 of that $5,000 must already be ordered before a driver can leave a delivery hub. Previously, a driver would have needed just one order. The change would reduce delivery services’ efficiency and speed, as they would be required to return to a central hub more often to collect product instead of being able to dynamically adjust while on the road.

The definition of ownership in a cannabis company would also become more broad. Under the new definition, any employee or company executive that has say over what that company should cultivate, manufacture, or sell will be considered an “owner.” This will require more financial disclosures to the state, which some say will slow down the entire regulatory process.

The period for public comment officially ended Nov 5 for the proposed rules. However, California regulators have yet to finalize the current draft. It is unknown if they will make any further changes.

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Ohio Court: Cannabis Licensing Racial Quota Is Unconstitutional

11/16/2018

by Graham Abbott

An Ohio court has ruled that the state’s “racial quota” for medical cannabis business licenses is unconstitutional, according to The Cincinnati Enquirer.

Ohio law requires that 15 percent of medical cannabis cultivation licenses be awarded to businesses owned by a racial minority — a provision included to help address damage done by prohibition to minority communities.

Two of the state’s 12 cultivation licenses were awarded to minority-owned companies, but businesses who were passed over despite receiving higher scores on their application felt slighted and filed suit against the provision in December.

The company who first filed suit, PharmaCann Ohio LLC, was eventually awarded a 13th cultivation license after a scoring error was discovered. The suit was then picked up by Greenleaf Gardens LLC, another applicant who was passed over due to the racial quota provision.

Franklin County Common Pleas Judge Charles A. Schneider sided with the plaintiffs in an opinion written on Thursday.

“The court finds the 15 percent set aside is not insignificant and the burden to be excessive for a newly created industry with limited participants.” — Judge Charles A. Schneider, in his written judgment, via The Cincinnati Enquirer

Ohio’s Department of Commerce spokesperson Kerry Francis told The Enquirer that the department hasn’t decided whether it would appeal the judge’s ruling or just issue additional licenses.

Ohio’s medical cannabis program was expected to launch in September but has experienced numerous delays. Products are expected to finally hit dispensary shelves within the next month.

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