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

11/20/2018

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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

End

Buying Cannabis

Except in California, Falling Cannabis Prices Mean Falling Tax Revenue

11/19/2018

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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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Commercial Cannabis Operation

Michigan Communities Begin Banning Cannabis Production After Legalization

11/19/2018

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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

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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

California Proposed Rule Changes Would End Cannabis White Labeling

11/16/2018

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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

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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.

End

Toronto Stock Exchange

Acreage Holdings Begins Trading in Canada

11/16/2018

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The U.S. cannabis holding company Acreage Holdings has completed a reverse-takeover and begun trading on the Canadian Securities Exchange (CSE), according to Bloomberg.

Acreage Holdings joins many other U.S. cannabis companies trading in Canada. Though some companies have been able to list on the NYSE, complicated money-laundering laws and U.S. cannabis prohibition have pushed the majority of large cannabis companies operating in states with legal cannabis to Canada for fundraising and public trading.

Acreage Holdings raised $314 million privately to complete the reverse takeover of Applied Inventions Management Corp. The company currently has a valuation of $2.8 billion. This valuation is based on uncertain fundamentals, however, as the company opted not to release internal financials during the reverse-takeover.

Acreage has maintained a high profile by appointing well-known conservative politicians to advisory positions. Former Republican Speaker of the House John Boehner endorsed the company and accepted an adviser position last spring; Boehner started selling cannabis stock tips last month.

The company’s Board of Directors also includes conservative former Canadian prime minister Brian Mulroney, who accepted the position last month.

Acreage Holdings trades under the stock ticker ACRG.U on the CSE.

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IRS Struggles With Cannabis Cash Payments, Hires Help

11/15/2018

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The Internal Revenue Service (IRS) paid a consulting company $1.7 million for help processing the large cash tax payments coming from legal cannabis businesses, Quartz reports.

The cannabis industry continues to struggle with a lack of banking services. And now, with ten states having legalized adult-use cannabis and 32 with some kind of medical cannabis allowances, even the IRS is struggling to handle the industry’s cash flow. Cannabis companies paid $4.7 billion in tax payments last year alone, mostly in cash.

Notably, the IRS has not only done little to help — but it was also charging cannabis companies an extra 10 percent on their taxes for paying in cash until a successful lawsuit forced a change in 2015.

The current system is inefficient. Cannabis companies are required to schedule an appointment with a local IRS office, tote their stacks of cash down, and have them counted in a secure space while at least two IRS employees watch the entire process. This is, of course, after having paid all employees and other debts in cash as well.

The IRS hired The Mitre Corporation to help with the cash problem. A government spending report shows that the IRS has paid $1.7 million to the company for help with “large cash payments for processing cannabis federal taxes.” Denver accountant Jordan Cornelius speculates the payment is for streamlining the current process of accepting cash payments and not for physical accounting services.

Cornelius said that, while many in the cannabis industry expecting banking services to be “right around the corner,” the IRS contract casts doubt on that. Though he also wondered whether it was wise to be paying millions to a consulting company as a band-aid instead of spending that money on creating banking services for the cannabis industry.

Others, like Henry Wykowski who represents California dispensaries, agree that the cash system is irrational.

“The stupidest thing these guys could do is keep cannabis out of banking. If anything, they should be wanting to monitor the cannabis industry instead of forcing it to become further entrenched in the underground where it’s been, and that makes it much more difficult to regulate and control.” — Henry Wykowski, a cannabis industry attorney, via Quartz

The recent Democrat takeover of the House of Representatives and the removal of cannabis opponents like Pete and Jeff Sessions do cast a hopeful light on potential near-term solutions for the cannabis industry’s banking woes, even if the IRS is not optimistic.

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DEA Scolded for Cannabis Eradication Program Inadequacies

11/15/2018

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Federal watchdogs at the U.S. Government Accountability Office (GAO) issued a report this week outlining how the Drug Enforcement Administration (DEA) has mismanaged the distribution of federal funds to local law enforcement meant for aiding the eradication of illegal cannabis grows.

First noted by Marijuana Moment, the report investigates the about $17 million given annually to DEA to help with local eradication efforts. Specifically, GAO found that DEA does not consistently track where the cannabis eradication funding actually goes — meaning any mismanagement would be easily missed.

“DEA oversees participating agencies’ compliance with program expenditure requirements in various ways, but does not consistently collect supporting documentation for expenditure reports. … DEA officials said they are now working to address this issue, but they have not developed a plan with specific actions and time frames for completion. By developing and implementing such a plan, DEA could have greater assurance that funds are being expended appropriately.” — Excerpt from GAO report

GAO’s four-part recommendation: “…that DEA develop a plan to ensure the collection of consistent documentation of expenditures, clarify its guidance for reporting program activities, document all of its program goals, and develop performance measures.”

The DEA previewed GAO’s report in October and officials said the agency agrees with all of GAO’s recommendations.

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GreenCart Solutions Offers Insured Cash Transport Services for Cannabis Companies

11/15/2018

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GreenCart Solutions this month launched a new cannabis asset transportation service that includes comprehensive professional security while simultaneously offering insurance and covering liability throughout the transportation process.

Security — and in particular secure transport — has become an integral part of the cannabis industry as entrepreneurs move wholesale cannabis shipments, packaged products, cash tax payments, and even employee payrolls around their state. GreenCart Solutions takes a new approach to cannabis transportation services by offering insurance with up to $2,000,000 in liability coverage for each ride.

“With the large separation between money security and cannabis companies, it was clear to my partners and I there was a significant gap in the market,” said Ben Allen, CEO of GreenCart Solutions. “We saw an opportunity to make a difference.”

GreenCart services also include constant GPS tracking and camera coverage — including cameras installed inside of each vehicle and its custom-fit mobile vault — so ease-of-mind is guaranteed. Each vault is also designed for the maximum potential storage space, which results in 487.3 square feet of vault storage inside each of GreenCart’s discreetly armored vans, heightening the efficiency of every delivery.

“Building trust with clients is our number one priority at GreenCart. We truly believe we do that with all of the detail and effort that is put into every single ride. BJ Grill, our Chief of Operations, is an absolute wizard when it comes to creating the perfect routes and understanding what we need to ease our clients’ minds,” Allen said.

With federal lawmakers moving sluggishly at best on federal cannabis reforms — particularly in regards to the ongoing banking issue — GreenCart Solutions has customized its business model to provide ease-of-mind for the entrepreneurs who must face the many risks of working in the cannabis industry.

To learn more about GreenCart Solutions and their services, visit GreenCartSolutions.com or contact BJ Grill, the company’s Chief of Operations, at bj@greencartsolutions.com.

 

End

Mormon Church

Cannabis Advocates Threaten Lawsuit in Utah for Church Meddling

11/15/2018

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The Utah cannabis advocacy group Together for Responsible Use and Cannabis Education (TRUCE) is threatening to sue lawmakers and the Mormon Church if Utah’s recently-passed medical cannabis initiative is not implemented as written, according to FOX 13 Salt Lake City.

Utah voters overwhelmingly approved Proposition 2, the ballot initiative that legalized medical cannabis, in this month’s general election.

Before ballots were cast, however, the initiative’s primary sponsors, the Utah Patient’s Coalition and the Libertas Institute, entered talks with the Church of Jesus Christ of the Latter-Day Saints and Utah lawmakers about a compromise bill to ensure medical cannabis would be legalized no matter the election’s outcome.The compromise bill would reportedly remove or change some of the initiative’s language to better satisfy lawmakers and the Mormon Church.

TRUCE, however, took issue with the power that the LDS Church has over the matter. The organization’s attorney served everyone involved a “preservation letter” indicating they should keep records in case of a future lawsuit.

“We are investigating a legal challenge to (1) the calling of a special session of the Utah Legislature at the behest of The Church of Jesus Christ; (2) any effort, in collusion with or at the behest of The Church of Jesus Christ, to materially alter the initiative statute supported by a majority of voters who passed Proposition 2 in the recent election; and (3) the long-term pattern of domination of the Utah Legislature and the interference in the functions of Utah government by The Church of Jesus Christ.” — Excerpt from the preservation letter

TRUCE said they’re deciding if it would be feasible to file suit should lawmakers replace voter-approved Prop. 2 with the compromise bill. TRUCE demands that Prop. 2 be implemented as originally written.

The President of the Libertas Institute, Connor Boyack, defended the compromise bill. He said 90 percent of Prop. 2’s original provisions would remain in the bill and claimed the compromise prevented lawmakers from otherwise gutting the voter initiative.

The Utah legislature is expected to enter into a special session on December 3 to address the medical cannabis initiative and possibly pass the compromise bill.

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Lawmakers Propose Three Bills Addressing Veterans and Medical Cannabis

11/14/2018

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Just days after Veterans Day, a bipartisan group of lawmakers announced three new bills aimed at studying and reforming the Department of Veterans Affairs’ medical cannabis policies, NORML reports.

Rep. Seth Moulton, a Massachusetts Democrat, announced today he was partnering with Florida Rep. Matt Gaetz (R) to propose the legislation package, which includes the following measures:

  • The Department of Veterans Affairs Policy for Medicinal Cannabis Use Act of 2018, which seeks to clarify and codify how veteran patients and their healthcare providers can discuss potential cannabis use. The bill would further protect veterans from losing VA coverage or experiencing other repercussions for being open and honest about their medical cannabis use.
  • The Department of Veterans Affairs Survey of Medicinal Cannabis Use Act of 2018, which would result in a nationwide survey of U.S. veterans and VA healthcare providers to better understand the effects and usefulness of medical cannabis.
  • The Department of Veterans Affairs Medicinal Cannabis Education Act of 2018, which would establish partnerships between the VA and medical universities on programs covering medical cannabis. These partnerships would be designed to someday result in continuing education programs for healthcare providers.

“Our veterans are seeking alternative options to opioids and we should be supporting their desires not to be addicted to painkillers. Let’s not kid ourselves, people are using marijuana — including our veterans. We have an obligation to regulate it and make it as safe as possible. … These bills are an important first step towards finding out what can be most successful as treatment options evolve and change.” — Rep. Seth Moulton (D-MA), in a press release

Current laws make medical cannabis access complicated for veterans because VA doctors, due to the ongoing federal prohibition of marijuana, are unable to write recommendations for state-legal cannabis programs.

“While commendable advances if passed, [Moulton’s] bills fail to include the fix needed most swiftly of VA policy, which would be to allow VA doctors to fill out the necessary state-legal medical marijuana recommendation form in the 33 states that now have laws governing the therapeutic use of cannabis,” NORML Executive Director Justin Strekal wrote in the report.

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Jim Mcgovern

Pete Sessions’ Replacement Won’t Block Cannabis Reform

11/14/2018

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Next year’s House Rules Committee Chairman Jim McGovern, the replacement for cannabis opponent Pete Sessions, has promised to allow open debate of cannabis reform on the floor of the House, the Boston Globe reports.

Pete Sessions was a longtime opponent to cannabis reform and he personally blocked dozens of amendments and bills, including purely medical ones designed to fight the opioid crisis. Sessions, however, lost his seat in the midterms to former NFL player Colin Allred and the Democratic Party took control of the House of Representatives, appointing Rep. Jim McGovern (D-Massachusetts) to replace Sessions. He’ll preside over the House Rules Committee in the next session of Congress.

McGovern has promised to stop using the Rules Committee as a way to control Congressional debate.

“I don’t want to be known as the chairman of the Rules Committee who presided over the most closed Congress in history — that’s what we have right now. I want to be more accommodating and basically empower rank-and-file members. I don’t like this idea where it’s ‘my way or the highway.’ We need a more deliberative process.” — Rep. Jim McGovern, to the Boston Globe

McGovern also said, “Unlike my predecessor, I’m not going to block amendments for marijuana. Citizens are passing ballot initiatives, legislatures are passing laws, and we need to respect that. Federal laws and statutes are way behind.”

Whether or not federal legalization is pushed in the next session, there is strong evidence and support backing medical reforms. Removing cannabis from Schedule I is a no-brainer. As shown by a variety of recent polls, nearly all Americans believe that cannabis should be allowed for medical uses and more than two-thirds think it should be made completely legal for adults.

McGovern also mentioned making several other changes which appear to have bipartisan support: solving cannabis businesses’ banking woes, allowing the VA to prescribe medical cannabis for veterans, and establishing explicit federal allowances for the states’ rights approach to cannabis reform.

“This just seems like common-sense stuff,” said McGovern.

End

Cannabis

Study Explores Why Fewer Women Support Cannabis Reform

11/14/2018

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Researchers have studied Pew Research Center cannabis survey data in an effort to understand why women are less likely than men to support cannabis reforms, Marijuana Moment reports.

The study, published in the Social Science Quarterly journal, found some possible explanations. It is unusual that women, who are largely more liberal than men, are on the conservative side of the cannabis issue. Pew Research Center data, weighted for a variety of phrasings of that question, showed that 67% of men support cannabis legalization while only 61% of women do.

It was immediately clear that parenthood was not the cause. “Being a parent is not a predictor of attitudes on the marijuana support scale,” researchers wrote. “Indicating that being a parent does not account for any of the gender gap.”

Instead, researchers found there were two clear predictors: religion and previous cannabis experience.

Women, according to the national survey data, were more likely to identify as born-again Christians and reported attending church services more often than men. Said researchers, “Greater religiosity substantially explains the gender gap in marijuana policy.”

The strongest factor, however, was familiarity with cannabis overall. Only 42 percent of women reporting had ever tried cannabis, compared to 55 percent of men. The same percentages were seen when survey participants were asked if they felt comfortable around the plant.

Researchers believe that, due to their findings, it seems the current gender gap in support for cannabis reform is temporary.

“Though it is challenging to accurately predict the future contours of the gender gap in marijuana, we do think our findings here are instructive. As marijuana use becomes more common and seen as less risky or deviant behavior, and as marijuana use is framed less as a moral issue (which will presumably be the case as it grows more common and legalized), there is reason to expect the gender gap to shrink,” the researchers wrote.

The study authors were clear that more study is needed to reinforce their own findings as well as understand the finer points of the issue.

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Lucid Green Launches Industry’s First “Direct to Consumer” Education and Loyalty Platform for Cannabis

11/14/2018

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Founded by Data Veterans, Lucid Green Announces the Successful Closure of its Seed Round of Funding to Deliver a Platform that Sets the Standard in Driving Trust and Transparency in the Cannabis Industry.

NEW YORK, Nov. 8, 2018 — Lucid Green Inc., a technology platform, is solving the cannabis industry’s direct-to-consumer issues by delivering a data platform that connects consumers and budtenders to brands. Lucid Green’s seed funding round of slightly more than $1 million dollars was oversubscribed and has been closed. The monies will be used to develop a platform that enables a highly relevant digital experience by seamlessly interacting with physical products.

“Leveraging IoT, blockchain and token technologies, Lucid Green’s innovative platform creates an information, education and rewards ecosystem that drives transparency across the cannabis industry,” stated Co-Founder & CEO Larry Levy.

“We’re creating a standard that addresses a huge need in the cannabis industry – solving how brands connect directly with consumers and budtenders alike, to deliver a better consumer experience,” continued Paul Botto, Co-Founder and President.

Lucid Green’s seed round was funded by a group of technology and cannabis veterans that include XDL Ventures and Phyto Partners.

Lucid Green has launched in Colorado and Washington State, through partnership with the industry leading product brands incredibles, 14’er and Ionic. “incredibles’ top-of-the-line products truly offer a premium option for consumers because we control every aspect of production. We’re excited to partner with Lucid Green to deliver transparency of our production practices to customers through the platform,” said Co-Founder & CEO Rick Scarpello. “We know Lucid Green will be sought out by consumers who demand the best and want to be rewarded for seeking our product quality and education.”

14er’s Founder and CEO Evan Anderson said, “Lucid Green’s platform provides a glimpse into the future of consumer engagement in cannabis.”

About Lucid Green
Lucid Green was founded in early 2018 by data veterans, Paul Botto and Larry Levy to create a standard that drives trust, transparency and guidance in the cannabis retail environment. Lucid Green is a revolutionary data platform that gives brands a direct-to-consumer/bud-tender communication channel while incentivizing brands and their suppliers to provide accurate and timely product information. Lucid Green’s complete transparency gives consumers full disclosure into all aspects of the product’s quality and authenticity, testing results, professional and peer reviews, along with usage recommendations and dosage tracking; all in one place.

Visit lucidgreen.io for more information.

Media Contacts:

Paul Botto
Lucid Green Co-Founder & President
paul@lucidgreen.io

Lily Colley
incredibles National Marketing Director
Lily@medicallycorrect.com

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Feds Call for Professional Joint Rollers, Cannabis Growers

11/13/2018

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The National Institute on Drug Abuse (NIDA) is seeking to hire professional joint rollers, according to a notice posted last week by the agency.

First reported by Marijuana Moment, the move is the latest effort in a push for more federal cannabis researchers. Notably, NIDA is not looking for proposals or to hire anyone, yet. Instead, the agency is looking for capability statements from small businesses so it can gauge the size and requirements of a future program.

The rolling of joints would be just one aspect of the job — according to the posting, “NIDA seeks qualified organizations having capability to analyze and characterize various drugs of abuse including cannabinoids and other research chemicals.”

NIDA says applicants must be able to “acquire hard-to-find controlled and uncontrolled drug compounds” and “analyze purity, authenticity, and stability of these compounds,” among many more responsibilities.

Here are the joint-rolling specifics:

“Manufacture standardized marijuana cigarettes within a range of varying concentrations of delta-9-THC and analyze strength and stability of them at various intervals while having the capability to maintain a secure shipping facility and to ship marijuana cigarettes to research investigators.” — Excerpt of NIDA statement

The posting also requires applicants who can manufacture and analyze nicotine cigarettes for research purposes.

End

Northampton, MA

Massachusetts Prepares for Adult-Use Sales By End of November

11/13/2018

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After nearly a year of delays, Massachusetts has made the final approvals necessary for a complete regulated supply chain and sales are expected soon, MassLive reports.

The original launch date for the industry was January 1, 2018. That date was quickly adjusted to July 1, 2018, which also passed without the launch of sales. Frustration among industry hopefuls has been growing for quite some time.

When “commence operations” notices were delivered to two of the state’s future testing labs, CDX Analytics and MCR Labs, the last piece of Massachusetts’ adult-use program has fallen into place. As all cannabis sold in the state must be tested for a variety of issues before going to retailers, the launch of these labs should signal the very near launch of retail sales.

While dispensaries have already received licenses and have signaled they are also ready to start sales, the state has yet to send a final “commence operations” notice to those businesses. That will be the final step.

“[W]e’re going to have these certificates of ‘commence operations’ done in the next week or two.” — Steve Hoffman, Chairman of the Cannabis Control Commission, in the report

Two dispensaries, New England Treatment Access in Northampton and Cultivate in Leicester, have announced they are set to begin once that notice comes down from state regulators. Pharmacannis Massachusetts in Wareham has also received a license, but that business is not as far along in the process as the others.

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Cannabis

Aurora Cannabis Reports 260% Year-Over-Year Revenue Increase

11/13/2018

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Aurora Cannabis told investors today during its earnings report that revenue had increased 260% since this time last year, CNBC reports.

The Canadian licensed producer also reported that production rose more than 400%. Last year, Aurora reported 1,010 kilograms of cannabis produced. This year, the company grew 4,996kg. The opening of Canada’s adult-use market on October 17, of course, helped drive the increased production.

The rising quantity of production is accompanied by a falling cost-per-gram of production, which is down 22.5% since last year. That cost has actually dropped 14.7% over just the last quarter. The company attributed the lower production costs to upgraded workflows at one of the company’s subsidiaries in the last quarter, as well as the increased volume.

The reporting period also contains the full initial stock for Canada’s provincial cannabis wholesalers. Aurora sold CA$600,000 in adult-use cannabis by the end of the last quarter.

“Given the strong unmet consumer demand evident across Canada, we are confident that our rapidly increasing production capacity will result in continued acceleration of revenue growth.” — Terry Booth, CEO of Aurora, in the report

Aurora also highlighted recent acquisitions and new products. Aurora Cloud, the company’s CBD oil vape cartridge manufacturer, is beginning operations. It’s the vape-ready CBD cartridge sold by a Canadian licensed producer. Aurora also recently acquired MedReleaf, a company dedicated to cannabis strain R&D.

Aurora needs to continue growing, however, in order to justify the company’s current $9 billion market cap. Company executives and investment advisors both say they are optimistic.

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Canna Cribs Visits Humboldt’s First Licensed Recreational Farm

11/13/2018

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Canna Cribs Episode 5 is out this morning on YouTube and the GrowersNetwork.org website.

In its fifth episode, the online mini-documentary series features Humboldt County’s Honeydew Farms, one of the first large-scale cannabis cultivators in California. Honeydew operates on a 600-acre agricultural preserve nestled in the California North Coast’s Kings Range foothills. The mountainous region affords Honeydew a variety of growing microclimates that can range in altitudes of 200 to up to 900 feet, which helps create very distinctive batches of cannabis crops.

In this episode, Canna Cribs host Nate Lipton joins co-owner Alex Moore to witness Honeydew Farm’s unique location and talk about being a family-owned and family-run farm in the rapidly commercialized California industry.

In the interview, Moore talks about co-owning the farm with his wife Miranda, discusses his experience as one of Humboldt’s legacy growers during the 1990s, and offers an in-depth explanation of Honeydew’s in-house propagation process and their strategies and go-to products for the vegetation stage — which includes organic soil custom-made by local company TeaLAB.

The Canna Cribs team briefly meets up with TeaLAB owner Luke Besmer, who says that a combination of factors — cost, ease of use, and quality — explain why his compost teas are so popular among Humboldt’s many outdoor and greenhouse cannabis cultivators.

Beyond Honeydew’s unique location and dedication to organic, reusable soil, this Canna Cribs tour also investigates the farm’s drying and curing processes, trimming decisions (all flower is hand-trimmed by professionals), branding and packaging strategies, and intense dedication to preserving the final product for consumers.

Check out Canna Cribs Episode 5, featuring Honeydew Farms, via the player below:

About Canna Cribs
Canna Cribs is an ongoing mini-documentary series produced by Growers Network that covers entrepreneurs and pioneers in the burgeoning cannabis industry. Catch up on the rest of the episodes in Canna Cribs Season 1 to see more in-depth tours of some of the world’s largest and most advanced cannabis grow sites.

About Growers Network
Growers Network is a private online community for cannabis cultivators and entrepreneurs to share their experiences, discuss the industry, and work together to overcome the many obstacles facing modern cannabis professionals.

To learn more about Canna Cribs or the Growers Network platform, visit GrowersNetwork.org.

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Mitch McConnell

Mitch McConnell Guarantees Industrial Hemp in Farm Bill

11/12/2018

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On Friday, Sen. Mitch McConnell (R-KY) promised that the Farm Bill will be passed in an upcoming lame duck session of Congress, the Murray Ledger & Times reports.

McConnell said finishing the unified 2018 Farm Bill was one of his top priorities. While legislators are debating work requirements for food stamps, McConnell said the industrial hemp legalization clause is not in question.

“It will be in there, I guarantee you that.” — Sen. Mitch McConnell (R-KY), in the report

The 2014 Farm Bill lapsed on September 30. Lawmakers could not agree on several provisions for its replacement before going into recess for the midterm elections, though existing programs remain funded through December. Congressional leaders promised to reconvene in a lame duck session later this year to continue work on the Farm Bill.

The main disagreement has resulted over a Republican push to add work requirements to the federal food stamp program, SNAP. Industrial hemp seems secure in the bill’s current draft, though some advocates have worried that lawmakers might decide not to approve the new bill in favor of extending the 2014 Farm Bill for three more years.

McConnell’s re-commitment to passing the 2018 Farm Bill — instead of abandoning it in favor of other options for funding farm programs — shows promise for the historic legalization of industrial hemp.

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Decriminalization Bill Filed In Texas

11/12/2018

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At least one Texas lawmaker is eyeing 2019 as the year to decriminalize cannabis in the Lone Star State.

First reported by Marijuana Moment‘s Tom Angell, Rep. Joe Moody (D) pre-filed a decriminalization bill early Monday for the 2019 legislative session.

The Texas Republican Party officially endorsed cannabis decriminalization in June — the party’s platform now says it supports changing the law “to make (cannabis possession) a civil, and not a criminal, offense.”

Moody’s decriminalization bill would mirror that sentiment, ending arrests for cannabis possession and replacing the risk of jail time or a criminal record for offenders with a simple fine.

“Civil penalty legislation is the first thing I’ve filed on the first day of filing for the 86th Session. There’s been an incredible swell of bipartisan support since last session, and the official Texas Republican and Democratic platforms both approve of this kind of reform now. I’m optimistic that this will be the session we finally see smarter, fairer marijuana laws in Texas.” — Rep. Joe Moody, in a press release

Cannabis reforms are becoming increasingly popular throughout the U.S. and politicians are learning to either jump on board or get left behind.

During last week’s midterms, Texas voters rejected incumbent Rep. Pete Sessions (R) — who chaired the House Rules Committee — due in part to his horrendous track record of categorically blocking any and all attempts at cannabis reform.

Texas Gov. Greg Abbott (R) said in October he favored reducing cannabis possession penalties.

According to Gallup, two-thirds of Americans now support federally legalizing cannabis.

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Science Lab

Washington Issues First Cannabis Research License

11/12/2018

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Washington state has issued its first-ever research-specific cannabis license to Verda Bio, a Seattle pharmaceutical company, according to a story in The Stranger.

The more common producer license does not technically allow breeding of cannabis in the interests of developing new strains or doing research. If a producer were to grow plants just to study them, or attempt to keep the seeds, it would be illegal — anything that is not sold must be destroyed.

Verda Bio aims to develop new strains of cannabis that contain uncommon and largely unstudied cannabinoids. Recent research revealed that there are 21 or more cannabinoids that have not been formally identified, even in commercial cannabis strains.

“The first year of the project is going to focus on breeding plants that produce chemicals outside of THC. … We don’t believe that the plants that we want to do research on exist yet.” — Jessica Tonani, CEO of Verda Bio

Washington created the new research-class license in 2016. A written review of projects and scope of future research must be done for any company applying for the license. Verda Bio is the first company to navigate that process, having spent the last two years working through the approval process.

No one else has applied yet for the license.

“I think universities are still pretty scared about federal repercussion about partnering with people in what is perceived to be a federally illegal system. But we are hoping that changes,” Tonani said.

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Los Angeles, California

California Has New Cannabis-Friendly Officials, Taxes

11/09/2018

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California’s midterm elections demonstrated voter support for a variety of cannabis issues and resulted in new taxes and a new governor, Leafly reports.

Elected officials

Pro-cannabis stances helped a variety of political candidates retain their seats or become elected in California.

Pro-cannabis candidate for Governor Gavin Newsom won the office over Republican candidate John Cox. Governor-elect Newsom is a former mayor of San Francisco and campaigned on behalf of Proposition 64, which legalized cannabis in California in 2016.

In the congressional races, cannabis convert Diane Feinstein retained her Senate seat after changing her stance on cannabis to support a state’s rights approach in the last few years. Cannabis opponent Rep. Steven Knight was given the boot by voters, to be replaced by Democrat Katie Hill. Republican Rep. Duncan Hunter, who is pro-cannabis, took the seat for District 50 as well.

Taxes

Taxes were also at issue on California’s state ballot. San Francisco, Fresno, Santa Ana, Santa Clara, and dozens of other cities and municipalities across California passed new local cannabis industry taxes. Many industry advocates say cannabis is already over-taxed but costs continue to rise.

Oakland was one of the few cities to pass an initiative that may actually lower taxes. Oakland’s “Measure V” restructuring of taxes is the first of its kind and is lauded by industry supporters, who hope to see more legislation of its type.

Notably, the Los Angeles public bank initiative, Measure B, failed with 61 percent of voters rejecting the plan. The initiative would’ve created a municipal bank to enable full banking services for cannabis businesses. The bank would also have helped fund affordable housing and entrepreneurship and was backed by City Council President Herb Wesson.

California is expected to continue as a model for cannabis regulation — the state has been on the forefront of cannabis legalization for decades and there’s no end in sight.

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Michigan U.S. Attorneys Lay Out Cannabis Enforcement Policies

11/09/2018

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U.S. Attorneys in Michigan have laid out their policies for enforcing federal cannabis laws in the newly legalized state, the Detroit Free Press reports.

Matthew Schneider and Andrew Birge — who serve as U.S. Attorneys for Eastern and Western Michigan — announced in a statement on Thursday that “we will not unilaterally immunize anyone from prosecution for violating federal laws simply because of the passage of Proposal One.”

Their enforcement efforts, however, will be weighed against both offices’ priorities, and neither office expects to focus on low-level cannabis crimes like simple possession.

“Our offices have never focused on the prosecution of marijuana users or low-level offenders, unless aggravating factors are present. That will not change.” — U.S. Attorneys Matthew Schneider and Andrew Birge, in a statement

According to Schneider and Birge, their offices will be more inclined to prosecute for cannabis-related crimes when there are other issues at play, such as:

  • Interstate trafficking
  • Involvement of other illegal drugs/activities
  • Organized crime
  • Bypassing local laws/regulations
  • Environmental contamination
  • Risks to minors

“We will continue to approach the investigation and prosecution of marijuana crimes as we do with any other crime,” Schneider and Birge wrote.

“We will consider the federal law enforcement priorities set by the United States Department of Justice, the seriousness of the crime, the deterrent effect of prosecution, and the cumulative impact of the crime on a community.”

 

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