California Senate Advances Bill Establishing Statewide Cannabis Banking Services

6/01/2018

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The California Senate has advanced Senate Bill 930 — a.k.a. the Cannabis Limited Charter Banking and Credit Union Law — which seeks to establish new rules allowing California banks to serve businesses who are denied banking services due to their involvement in the still federally prohibited cannabis industry.

According to an Associated Press report, the bill passed through California’s Senate with a bipartisan, 29-6 majority.

If signed into law, SB 930 would permit banking institutions regulated by California’s Department of Business Oversight — including both charter banks and credit unions — to provide limited banking services to the currently cash-only industry. Cannabis companies could use those services to pay rent, to pay state and local taxes (but not federal taxes), or to pay other California companies for goods and services related to the cannabis space.

The limited banking services would not allow for any out-of-state payments.

“We’re not using the federal system, we’re not using the federal wire. This is a short-term creative approach to deal with this extraordinary problem.” — Democratic Sen. Bob Hertzberg to the AP

Lawmakers reportedly consider this move to be just a temporary strategy under the assumption that cannabis will someday be legalized at the federal level.

The bill now moves to the California state Assembly for consideration.

California’s adult-use cannabis industry kicked off in January and is expected to grow into a $7 billion marketplace — it is the world’s largest legal cannabis market, by far.

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Georgia Parents Treating Son’s Epilepsy with Cannabis Lose Custody of Child

6/01/2018

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Georgia couple Matthew and Suzeanna Brill have been charged with reckless conduct and have lost the custody rights to their 15-year-old son, David, for giving him cannabis as an alternative treatment for the youth’s epileptic seizures, according to a NY Times report.

According to the Brills, once he started using medical cannabis, their son went seizure-free for 71 days — the longest stretch of relief any medication had ever afforded him.

But when someone alerted the Georgia Division of Family and Children Services, officials came on April 20 and drug tested the whole family. Mr. Brill and David tested positive for cannabis, Ms. Brill did not. The parents then admitted to giving cannabis to their son and authorities demanded that they stop.

“We complied, and within 14 hours of complying we were rushing our son to the hospital. And it was one of the most horrific seizures I’ve ever seen.” — Suzeanna Brill to the NY Times

The Brills spent six days in jail, costing Matthew his job and complicating the family’s financial situation. After his seizure, David spent a week in the hospital before he was moved to a group home 60 miles from where his parents live.

“Even with the ramifications with the law, I don’t care. For 71 days he was able to ride a bike, go play, lift weights. We were able to achieve that with David medicated not from Big Pharma, but David medicated with marijuana.” — Matthew Brill to the NY Times

The Brills have set up a crowdfunding campaign to pay for lawyer expenses in the upcoming battle to regain custody of their son, which they say could take a year or more.

Medical cannabis is technically legal in Georgia, but only for a few specific conditions and only in oil form — also, it remains illegal to grow or process cannabis in the state, so there is no legal method of obtaining the medicine.

Federally, cannabis remains a Schedule 1 “drug” with “no medical use.”

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The Four Pillars of Quality Cannabis Processing

6/01/2018

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Cannabis extraction has been used as a blanket term for what is best described as cannabis processing. A well-designed cannabis process goes far beyond just extraction, overlapping heavily with cultivation on the front-end and product development on the back-end [1]. With this mindset, four pillars emerge as critical capabilities for developing the ideal cannabis process: Cultivation, Analytics, Extraction, and Biochemistry.

Taken alone, the purpose and value of each pillar are quite clear, but it is only when combined that each pillar can be optimized to provide their full capacities in a well-designed process. Because of this, it is best to define the goals of each pillar alone, and then determine how they can be further augmented.

Cultivation

Cultivation is the soul of any horticultural process, including cannabis production. Whether the goal is to convert flavors, pigments, or bioactive compounds into a usable form, a natural process should only harness what is provided by the raw material, in this case, the cannabis flower. That means cultivation provides a molecular feedstock for our process and, depending on our end goals, there are many requirements we may have in mind. These requirements start as simply as mass yield. Different metrics that can be used here include mass yield per square foot or per light. Taken further, this yield may be expressed based not only on mass, but the cannabinoid content of the plants grown. This could give rise to a metric like CBD or THC yield per square foot and may be more representative of a successful grow. Additionally, as scientists race to learn more about the ways individual cannabinoids and their combinations interact with the human body, cultivators will be more focused on identifying cultivars that provide unique ratios of cannabinoids and other bioactive compounds consistently. Further, research into the synergistic effect of terpenes with cannabinoids suggests that terpene content should be another goal of cultivation [2]. Lastly, and most importantly, it is critical that cultivation provides clean and safe materials downstream. This means cannabis flower free of microbial growth, heavy metals, pesticides, and other contaminants.

Analytics

Analytics provide a feedback loop at every step of cannabis production. Analytics may include Liquid Chromatography methods for cannabinoids [3], [4], [5] or Gas Chromatography methods for terpene content [3]. Analytical methods should be precise, accurate, and specific. Ideally, they can identify the compounds and their concentrations in a cannabis product. Analytics is a pillar of its own due simply to the efforts required to ensure the quality and reliability of results provided as well as ongoing optimization of methods to provide more sensitive and useful results. That said, analytics are only truly harnessed when paired with the other 3 pillars.

Extraction

Extraction is best thought of as the conversion of target molecules in cannabis raw material to a usable form. Which molecules those are is up to the goals of your product. The spectrum runs from an extract containing only a pure, isolated cannabinoid-like CBD, to an extract containing over 100 cannabinoids and terpenes in a predictable ratio. There are nearly limitless approaches to take in terms of equipment and process optimization in this space so it is critical to identify which is the best fit for the end-product [1].

Biochemistry

Biochemistry can be split into two main concepts. Plant biochemistry focuses back towards cultivation and allows a cannabis scientist to understand the complex pathways that give rise to unique ratios of bioactive molecules in the plant. Human biochemistry focuses on how those bioactive molecules interact with the human endocannabinoid system, as well as how different routes of administration may impact the pharmacokinetic delivery of those active molecules.

Figure 1: When harnessed in tandem the pillars of cannabis processing provide platforms of research and investigation that drive the development of world-class products.

Each of the pillars require technical know-how and resources to build, but once established they can be a source of constant innovation. Fig. 1 above shows how thoroughly each of these pillars are connected. At the intersection of each pillar, unique technology platforms exist capable of driving an innovation and discovery cycle towards the development of ideal products.

For example, instead of blindly processing cannabis based on cultivar name, I could apply analytics to determine the terpene and cannabinoid content of the incoming raw materials and form specifications to ensure the ongoing quality and consistency of my products. Also, analytics can provide feedback as I tweak variables in my extraction process resulting in optimized methods. By applying plant biochemistry to my cultivation with the assistance of analytics I could begin hunting for specific phenotypes within cultivars that provide elevated levels of specific cannabinoids like CBGA or THCV. By understanding human biochemistry tied with well-characterized extracts, I can begin harnessing the overwhelmingly complex polypharmacology associated with multidrug, multitarget plant cannabinoid therapies [6]. When these pillars are harnessed effectively, we can fully characterize our unique cannabis raw material with targeted cannabinoid and terpene ratios, optimize an extraction process to ensure no loss of desirable bioactive compounds, compare our extracted product back to its source, and ensure we are delivering a safe, consistent “nature identical” extract for use in products.

With these tools in hand, we can confidently set about the task of processing safe, reliable, and well-characterized cannabis extracts for the development of world-class products.

[1] Sweeney, C. “Goal-Oriented Extraction Processes.” Cannabis Science and Technology, vol 1, 2018, pp 54-57.
[2] Russo, E. B. “Taming THC: potential cannabis synergy and phytocannabinoid-terpenoid entourage effects.” British Journal of Pharmacology, vol. 163, no. 7, 2011, pp. 1344–1364.
[3] Giese, Matthew W., et al. “Method for the Analysis of Cannabinoids and Terpenes in Cannabis.” Journal of AOAC International, vol. 98, no. 6, 2015, pp. 1503–1522.
[4] Gul W., et al. “Determination of 11 Cannabinoids in Biomass and Extracts of Different Varieties of Cannabis Using High-Performance Liquid Chromatography.” Journal of AOAC International, vol. 98, 2015, pp. 1523-1528.
[5] Mudge, E. M., et al. “Leaner and Greener Analysis of Cannabinoids.” Analytical and Bioanalytical Chemistry, vol. 409, 2017, pp. 3153-3163.
[6] Brodie, James S., et al. “Polypharmacology Shakes Hands with Complex Aetiopathology.” Trends in Pharmacological Sciences, vol. 36, no. 12, 2015, pp. 802–821.

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Beth Stavola: Operating a Multi-State Cannabis Company

5/31/2018

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Beth Stavola is a serial cannabis industry entrepreneur who owns dispensaries in Arizona and Nevada; she is also the founder and CEO of Stavola Medical Marijuana Holdings and CBD For Life, and is a member of the New Jersey Cannabis Industry Association‘s Board of Trustees.

Beth recently joined our podcast host TG Branfalt to talk about her experience six years ago transitioning from a career in the upper echelons of Wall Street to the “wild west” of the burgeoning cannabis industry. They discuss the differences among state markets, how to work with politicians who still need to learn the benefits of legalization (and the countless drawbacks of prohibition), the ongoing reform progress in Beth’s home state of New Jersey, how she balances the workload of being a mother with six children and multi-state cannabis entrepreneur, and more.

Listen to the interview via the player below, or scroll down for a full transcript of this week’s Ganjapreneur.com podcast episode!

Listen to the podcast:

Read the transcript:

TG Branfalt: Hey there. I’m your host, TG Branfalt, and you’re listening to the Ganjapreneur.com podcast where we try to bring you actionable information and normalize cannabis through the stories of ganjapreneurs, activists, and industry stakeholders. Today I’m joined by Beth Stavola, a cannabis industry entrepreneur who wears a lot of hats, is an owner of multiple dispensaries throughout the U.S., COO and Director of MPX Bioceutical Corporation and a member of the Board of Trustees of the New Jersey Cannabis Industry Association in addition to being a mother of six children. Pretty crazy. How you doing, Beth?

Beth Stavola: I’m doing good, Tim. How are you?

TG Branfalt: I’m all right. Waiting for the thaw here in Vermont, but we’ll get there. Man, I’m having trouble right now.

Beth Stavola: That’s okay. We’re about to get a lot of snow here in New Jersey, too.

TG Branfalt: Let’s hope that we all survive until March, April. Who knows what’s going on. Anyway, I want to talk about you, I want to get to know you, I want to get a bit about your background. How’d you end up in this cannabis space?

Beth Stavola: Well, my background is on Wall Street. I worked, for most of my career, at Jefferies and Company in Institutional Equity Sales. Mostly selling IPOs and secondaries. After children number four and five, twins, I went back to work for about six months. My husband said, “This 7:00 a.m. meeting is probably not working in Manhattan anymore for you.” I started just really doing one-off investments for my family. A deal broker brought me an opportunity to invest $1 million in medical marijuana in Arizona.

I found that it was intriguing and, Tim, better lucky than smart. I’m not going to tell you that I was some incredible visionary. I flew out to Arizona, I came back, and I told my husband I was going to invest $1 million in medical marijuana. He said, “You’ve completely lost your …” Can I say it?

TG Branfalt: Yeah.

Beth Stavola: “You’ve completely lost your shit now.” I bought my first license and it was a pretty crazy story. The first license was on the border of Mexico in Douglas, Arizona. I really planned on investing mostly and not really operating the business. Six and a half years ago, it was the wild, wild west a lot more than it really is now. I ended up having to take over and operate the business. Then I started really enjoying it. I bought two other licenses in Mesa, Arizona. I got super passionate about it. I saw what it was doing to help people and that’s my story.

I remember laying in a bed in a Holiday Inn, staring at the ceiling, and waiting for the Department of Health Services to come down to Douglas, Arizona and give me my first Approval to Operate. I remember just staring at the ceiling all night and saying, “What the hell are you doing?” It’s all worked out. It’s a really exciting business. It’s incredibly challenging with, obviously, the federal illegality. Hopefully, things will be changing there.

TG Branfalt: Can you tell me what the biggest challenge was going from Wall Street to this industry? That’s a night and day sort of jump.

Beth Stavola: You know what? It’s unchartered territory. Because it was in the black market for so long, there’s no playbook and there still is no playbook. When you’re a multi-state operator, like we are, the states change the rules all the time. Sometimes I have to back up and I say, “Okay, which state are talking about now? Is it Maryland, or Arizona, or Massachusetts, or New Jersey?” That’s certainly a challenge.

TG Branfalt: When you were developing the businesses, how’d you end up being so successful? What do you think that you did differently than other people were doing that allowed you to expand and allowed you to get into multiple states?

Beth Stavola: Well, definitely a lot of perseverance. Throwing a lot of stuff against the wall to see what sticks. Learning from my mistakes and the mistakes in this industry are very, very expensive, especially on the cultivation side. Just really taking every meeting. My sister, Julie, works with me amongst a bunch of other fabulous ladies in my office. She would almost make fun of me a little for taking every meeting, but one out of 10 meetings, generally, is going to result in something really great. I really try to leave no stone unturned.

TG Branfalt: You mention your sister. How do you find the right talent? You’re a COO and Director. How do you find the right talent for this space, especially you admittedly didn’t have that experience coming in? Also, what non-cannabis sectors are you finding talent?

Beth Stavola: That’s an interesting question and I talk about it a lot with my counterparts that are multi-state operators. One thing that I joke about is I say it’s like dog years. If you’re in the business six and a half years, it’s like 55 years in any other business. I also joke that I love that sometimes they use five-year-old glamor shots of me because I feel like I’ve aged a lot in the business. It’s really a challenge because the experiences that we’ve had to deal with, whether it’s figuring out what to do with the cash and how to deal with the lack of banking, having your own bank accounts shut down. At a multi-national bank one of my daughter’s communion money accounts shut down because I’m the trustee.

TG Branfalt: Oh, no.

Beth Stavola: Yeah. The banking is one of the most challenging things and that’s one of the things that I really feel like, as a federal government, as one of the things that we have to change quickly, because it really puts people in danger. I sleep with a phone in my bed, certainly, because I have teenagers, right? Also, because I get text messages at night. I know that the stores are closed, all my people have been walked by security to their vehicles, everything has been secured, and that’s really important to me. We’re one of the lucky ones that generally has banking across the board, but it’s a real challenge for the industry.

TG Branfalt: Where are you finding your people? Where are you finding the upper echelon of your executive team and the people who are on the ground in your dispensaries?

Beth Stavola: Former Wall Street, somewhat on the executive team. I feel like if you could survive there, especially during the time period where I was there, you could pretty much wade through anything. My sister, her name is Julie Winters, she was in operations for credit derivative swaps at Barclays. Finding people that come from very highly regulated businesses, gaming, things of that nature.

TG Branfalt: You mentioned the high regulation. How do you decide which markets to enter? Are there specific things that you look for with regard to the states?

Beth Stavola: Yes. We will never be in an unlimited licensing state. You’ll never see us make an acquisition or try to move into, say, a Colorado, an Oregon, a Washington state. Limited licensing states, highly regulated. If it’s a medical state, chronic pain being on the list. It’s generally about 70% of what the medical cards are written. It really depends on how well the state has written the rules. One of the states we’re opening in the next 60 days is Maryland. I’ve been really impressed with Maryland’s program.

TG Branfalt: When it comes to Maryland, I know that there’s a lot going on in terms of the rules being challenged by some minority lawmakers with the social equity rules. Is that something that’s still going on and something that you’re having to deal with?

Beth Stavola: You know what? It is still going on and, frankly, it should be going on, because I’m very, very behind this social justice reform. We cannot be giving these licenses out to only rich, white males when we have men and women of color that are sitting in jail for doing the same exact thing that these licenses are being given out for now.

TG Branfalt: Of the states that you’re operating in, is one more challenging than the other? Do you have a little more trouble in one state versus another? I’m just trying to get a sense of, for multi-state operators, what they might have to deal with if they choose to take that route.

Beth Stavola: Sure. One of the things that I did with the NJCIA is I think the state of Nevada did it right. Now, that said, it is the highest regulated state that we operate in at this very moment. Nevada knows how to do it right, right? They’ve bene regulating highly regulated businesses for years. One of the suggestions that I had for the NJCIA was, you know what? Our new Governor, Phil Murphy, yay Phil, he wants to do so much for this state and changing the medical program here in New Jersey is first and foremost a way that we will head to adult use here, but there’s no state that has switched to adult use better than the state of Nevada.

Senator Tick Segerblom, I’m going to pat him on the back for that. He has done an incredible job pushing that agenda forward there. He and I were able to, along with Dara Servis and Hugh O’Beirne, with the NJCIA, really put together a nice program for state and local officials of New Jersey, to go and see how Nevada did it. They had a really well thought out medical program and, if you think about it, in November of 2016, Massachusetts and Nevada both voted in adult use marijuana. By July 1st of 2017, Nevada had it implemented. That’s an absolute record.

Massachusetts, we’re still waiting for the recreational licenses and we’re looking at about July of 2018. I really wanted some of these lawmakers in New Jersey, as it’s my home state, to see a state that I believe does it right. What we do is we operate all the states to the highest standard of the most regulated state that we operate in, which would be Nevada.

TG Branfalt: I want to talk to you a lot more about New Jersey. I’m on the east coast. I’ve covered New York a whole lot and they’re sort of intertwined; but before we do that, we’ve got to take a break. This is Ganjapreneur.com podcast and TG Branfalt.

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TG Branfalt: Hey, welcome back to the Ganjapreneur.com Podcast. I’m your host, TG Branfalt, here with Beth Stavola, cannabis industry entrepreneur, COO and Director MPX Bioceutical Corporation, member of the Board of Trustees of the New Jersey Cannabis Industry Association. That’s what I want to talk to you about. I want to talk to you about Jersey. You had said before that the first order of business was to strengthen New Jersey’s medical cannabis program. What is happening in New Jersey? You mentioned that Murphy, he’s a proponent of recreational cannabis, there’s bills that have been introduced. What is going on in New Jersey?

Beth Stavola: Right now, Governor Murphy, last week, in his budget speech, he basically is assuming approximately $80 million on revenue coming into the state in 2019, so we really have to get it going. Right now, I believe there’s about $2 million in current medical program; which is, what I will call, an abysmal program which was under Governor Chris Christie who-

TG Branfalt: Boo.

Beth Stavola: Yeah, he inherited it, and didn’t want it, and made it extremely difficult for the current six operators. There’s a lot of politicking going on in New Jersey right now. As you might imagine, the current six operators have suffered through a very difficult program. I have tremendous respect for them, but what we have to do is we have to increase the program. Six operators cannot handle a medical program and, certainly, not an adult use program in the state of New Jersey.

My personal thought is that there should be 100 dispensaries, 25 cultivations, and 25 production facilities. That goes with experience. That is what I’ve seen work and not work for both the patients and for the businesses. We have to have it be healthy for the businesses, but we can’t have it be monopolistic either, right? There’s certainly some politicking going on and quite a bit of pushback from the current operators. We’ll certainly figure that out as we go along.

I was just at a meeting today with regard to this and there were some state and local officials that were able to go on this trip that the NJCIA, we had all put together, to go to Nevada and actually listen to the Nevada politicians talk about how they did it and I believe that they did it right. Then this morning, we had a meeting in New Brunswick for any state and local politicians that could not end up taking that trip. Just to go over all of the issues and allow for them to ask industry experts questions. It was actually a really great meeting.

TG Branfalt: What sort of questions are lawmakers in New Jersey asking? We have reports from Colorado, we have reports from legal states, so what else can they be curious about at this point?

Beth Stavola: Well, one of the questions could be, “What do I tell my constituents when they say marijuana is a gateway drug?” My answer to that is I’ll tell you the flip side. I think marijuana is an exit drug and it’s an exit drug for a lot of people. We have an opioid crisis in this country. It’s an epidemic. We consume, as Americans, 85% of the opioids in the world. Yeah, unbelievable. It’s a major, major problem. I watch people get off of opioids and they’re smoking a vape pen.

Do you know the satisfaction that it gives you to watch a veteran who’s been just handed pill, after pill, after pill, prescription, after prescription from the VA, and have them just smoking a vape pen that’s not going to hurt them? I call it an exit drug and I think that really helps some of these local politicians to be able to go and talk to their constituents about it. All on my executive team, we’ve suggested, bring us to your local meetings. I’m a mom of six kids. I want to protect the kids, I want to make sure that we have childproof packaging, we’re not making things that are attractive to children. There’s a lot of things that go into it and I think it’s new territory. The politicians are really learning it as they go hand-in-hand with us.

TG Branfalt: In your opinion, what do you think legalization in New Jersey would mean for other east coast states, especially New York? You have Governor Andrew Cuomo of New York who has no interest in legalizing recreational cannabis use, but it’s hard for a lot of New Yorkers, people who are plugged in, to say that Cuomo’s going to let New Jersey reap all of the rewards from that industry. In your opinion, you operate in a variety of states, you live in New Jersey, which is very close to legalization, what does it mean for the east coast states if Jersey goes green?

Beth Stavola: Well, you know what? I think it’s really going to force Cuomo to go green, frankly, and I have heard some interviews that he is actually softening up to that. I think that the proof will be in the pudding when you’re actually seeing … I heard a statistic today that Colorado, which is, from a population standpoint, I think 3 million less residents than New Jersey, took $45 million worth of marijuana money and put it into the school system. New Jersey is so desperate for tax money and I’ve heard this joke, and it’s kind of scary, but people say, “Last one out of New Jersey, shut the lights out.” I know. It’s my hometown and it’s been so frustrating for me to see these marijuana programs that are very successful in these other states and see people helped, and come home, and see the same exact diseases, and not be able to help people here.

TG Branfalt: What exactly is holding the reforms back? You have a governor who is supportive of this. That’s not enough to push these lawmakers into supporting common sense recreational cannabis legislation?

Beth Stavola: Politics, politics, politics. There was, I will call him, an agitator, Assemblyman Joe Danielsen, who was at the meeting that I was at this morning and introduced himself as a firefighter. He was fighting back on the social reform piece as a wonderful, wonderful man, Leo Bridgewater, was speaking. Who was a decorated war vet with PTSD, who he’s just wonderful and a member of the NJCIA. Pushing back and it seemed like there was an agenda there. It could’ve been, in my opinion, to protect the six current operators and not allow for additional operators to come in.

TG Branfalt: It’s stunning to me, it really is. I want to talk to you about being a mother of six in this industry. Before we do that, we’ve got to take a break. This is the Ganjapreneur.com Podcast. I’m TG Branfalt.

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TG Branfalt: Hey, welcome back to the Ganjapreneur.com Podcast. I’m your host, TG Branfalt, here with Beth Stavola. She’s the COO and Director of MPX Bioceutical Corporation and a member of the Board of Trustee of the New Jersey Cannabis Industry Association. She’s also a member of six, which is something I want to talk to you about. What is the reaction when … I don’t have any children. I tell people I work in the cannabis space and they’re like, “Oh, that’s cool.” What the reaction when you tell other parents what you do?

Beth Stavola: Six years ago, I didn’t. It was not popular, it was not cool, I was telling … Why are you flying to Arizona so much? Why are you flying to Nevada? I was buying commercial real estate. It was not a lie, I was buying commercial real estate, but I was also operating a medical marijuana business. I was concerned that other parents would do things like not let their children play with my children because, “You can’t play with Elle Stavola because her mom’s the pot mom.” Now, it’s very, very different. It’s like I get texts from all the kid’s parents. Like, “Happy 420…” It’s very different now, but what a difference six years makes. It’s still federally illegal and I’m not seeing a huge amount of movement in Congress. I’m hoping that’s going to change. I think that the kid’s parents are extremely supportive.

TG Branfalt: Can I ask? What the process was with your own children? I’m sure they know what you do, so do you mind telling me what that was like?

Beth Stavola: Whoa, that was interesting to say the least. My oldest two are 21 and 18 now. They were young teens and I walked them through the process. I actually took them out there. I explained to them what I was doing and it was kind of like a pharmacy. We were helping people that couldn’t be helped with other things, that didn’t want to take pills, that wanted to treat themselves naturally. Explaining to them that no one has ever died in the history of the world of a marijuana overdose, but people die of opioid overdoses all the time.

Their cousin died five years ago, my nephew, God rest his soul, of a heroin overdose. That was very painful for our family. The statistics speak for themselves, Tim. With a good medical program, you immediately see a reduction in opioid deaths of approximately 30%. I don’t know how anybody argues with these numbers. “The numbers don’t lie,” I say all the time.

TG Branfalt: How do you react to this fear mongering about legalization and the alleged negative effects it has on youth? A lot of parents with six children aren’t really as enlightened as you. I’m not trying to disparage anybody, but people who say, “Well, I have children, so we can’t legalize cannabis.” Right?

Beth Stavola: Well, it’s funny. There’s a lot of people that are reaching out to us in New Jersey that are saying, “Oh, we want to try to operate in New Jersey.” My husband’s best friend said to me that he’s had people come up to him and say, “I can’t believe what Beth Stavola’s doing. She’s really pushing this in our state and she should be ashamed of herself as a mother of six kids.” It runs the whole spectrum of people wanting to have me help them in the industry to telling me that I’m selling the Devil’s lettuce.

I think it’s really all about education and I think this fear mongering is because people just don’t know. They don’t know the statistics, they call it a gateway drug all the time, it is not. Talk to any teenage child right now. It is so much easier to get marijuana than it is to get alcohol. MPP slogan, it’s regulated adult use marijuana like alcohol. Tax it, regulate it, 21 and over.

TG Branfalt: You’re obviously very passionate, you’re very successful. I applaud your activism. You’re an activist on a daily level. You have to be, given the position that you’re in as a mother of a large family. What advice do you have for other entrepreneurs looking to either enter this space or those entrepreneurs who may want to get into the space in some capacity, but are worried about the effect that it could have on their family?

Beth Stavola: First off, the effect on your family is if you educate your family, they will get it. I know my parents had a really difficult time. I come from an extremely conservative background and, now, I have my mom running around her country club like, “Guess what Beth and Julie do.” Yeah. Like sending me articles about us. She’s so proud. She wants to be interviewed by you. Advice for entrepreneurs: check your ego at the door, don’t ask any of your employees to do anything that you wouldn’t do, share the wealth, there’s plenty to go around, and that’s important to me.

When I did the public deal, the most important thing to me was that every single one of my employees became an owner of this company. Each year they get stock options and, I have to say, everybody treats this company as an owner. Every cultivator, every janitor, every bud tender. You know what? I’ve given away a lot of my own money and my own stock. I would just say there’s a lot to go around, and pay it forward, and take care of the people that actually make the business successful. Greed is a very bad thing.

TG Branfalt: It’s a really incredible story. I really, really appreciate you taking the time, especially some of the personal stuff. Again, I don’t have any children, I don’t have that experience. Both of my parents used cannabis my entire childhood. I grew up it was fine, it was totally cool.

Beth Stavola: I love it.

TG Branfalt: Where can people find out more about you? Where can they find out more about your dispensaries, about MPX Bioceutical? Tell me where we’re going.

Beth Stavola: Yeah. [inaudible 00:33:12]. MPX Bioceutical.com. You could go on our website. We are traded on both OTC and the Canadian Stock Exchange. OTC is MPX, like Mary, Paul, Xavier, EF, like Elizabeth Frank. MPXEF. Then on the Canadian Stock Exchange it’s MPX.CN.

TG Branfalt: Again, I want to thank you for taking the time to come on the show. I know that you’re super busy. I really look forward to seeing just how you develop, how the company develops, and where you go from here. It’s a really, really incredible story and I thank you for sharing it.

Beth Stavola: Thank you so much. If anybody wants to follow us on Instagram, it’s @MPX_AZ. We have a lot of cool pictures and information-

TG Branfalt: I’ll check that out as well.

Beth Stavola: … On there.

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

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Los Angeles, California Cracks Down on Unlicensed Cannabis Operators; 160 Arrested

5/31/2018

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A crackdown on unlicensed commercial cannabis locations in Los Angeles, California yesterday resulted in 160 arrests and 36 criminal cases against 142 people, according to a KTLA report. Los Angeles Police Department Officer Stacy Spell said, since January, the department has served 54 search warrants on illegal shops, seizing more than 6,200 pounds of cannabis and 29 guns. Wednesday’s operation netted more than $300,000.

Under Prop. 64, the violations are misdemeanors. Those convicted face up to six months in jail and $1,000 in fines per violation. City Attorney Mike Feuer told KTLA that he believed every day they were operating would count as a violation.

“If you’re operating an illegal cannabis shop selling medical marijuana then you’re going to be subject to criminal prosecution.” – Feuer to KTLA

In April, the California Bureau of Cannabis Control sent more than 1,000 cease-and-desist letters to unlicensed operators. Regulators have used advertising platforms, such as Weedmaps, to find illegal shops. Weedmaps has argued that many of the unlicensed businesses advertising with the platform are protected under the state law until January because they are cannabis cooperatives and the state’s old medical cannabis laws allow such non-profits to operate until the new law’s sunset clause takes effect.

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Montana Hemp Farmer Wins Contract to Use Fed-Controlled Water for Irrigation

5/31/2018

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A Montana hemp farmer has secured a contract to use federally-controlled water to irrigate her plants, the Associated Press reports. Kim Phillips had battled the Helena Valley Irrigation District and the U.S. Bureau of Reclamation for more than a year to use water from the Canyon Ferry Reservoir to water her 12-acre hemp crop.

“It really is an extraordinary day for hemp and the hemp industry. It shouldn’t take this long to get water for your hemp, it just shouldn’t.” – Phillips to the AP

Phillips’ crop is legal under the state’s Industrial Hemp Pilot Program but the Bureau of Reclamation bans the use of water from federally-controlled reservoirs on controlled substances, including hemp – despite the fact that the 2014 Farm Bill allows states to implement industrial hemp research programs. Steve Davies, area manager for the Bureau of Reclamation, said the agency is “satisfied with the decision.”

“It’s important that we took the time and got the decision right. We had to make sure that the program she is operating under fits the exemption in the federal Farm Bill. Going forward, we will continue to evaluate these on a case-by-case basis.” – Davies to the AP

Last year, federal lawmakers blocked a proposed budget amendment explicitly allowing hemp cultivators use of federally-controlled water. That amendment, the Industrial Hemp Water Rights Act, was approved by the Senate Appropriations Committee but was removed from the final version of the budget bill.

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names for weed

Michigan Extends Deadline for Unlicensed Canna-businesses to Remain Operational

5/31/2018

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The Michigan Department of Licensing and Regulatory Affairs is allowing unlicensed medical cannabis dispensaries to remain open until Sept. 15 without risking future licensing eligibility. Operators had faced a June 15 deadline; however, regulators have been slow in issuing licenses under the new regime approved by lawmakers in 2016.

According to LARA, the extension allows the Medical Marihuana Licensing Board “enough time to investigate and authorize facility operator licenses in order to make sure that access to medical marihuana is maintained.”

“Extending the deadline to September 15th will make sure that this law is implemented correctly and assure that potential licensees are thoroughly reviewed. It is important that we ensure that medical marihuana patients have continued access to their medicine.” – LARA Director Shelly Edgerton, in a press release

Potential operators were required to turn in their state application by Feb 15. The licensing board said they had received more than 500 applications by the deadline and 141 of those were complete, while 411 still required municipality approval. In March, LARA sent more than 200 cease-and-desist letters to medical cannabis operators – 159 of them to businesses in Detroit.

The extension was included in emergency rules for the medical cannabis program approved by Gov. Rick Snyder yesterday. Those rules will remain in effect for six months.

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Canadian Licensed Producer INDIVA Ltd. Seeks An Edge with Cannabis Edibles

5/31/2018

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Ontario-based licensed cannabis producer INDIVA Ltd. has been busy preparing for recreational cannabis legalization in Canada later this year.  INDIVA Ltd. is a small to mid-cap licensed cannabis producer with production and processing facilities in London, Ontario. The company is publicly traded on the TSXv under the symbol NDVA.

INDIVA Ltd. believes in providing clients with high-quality products and customer service.  The company has invested heavily in refining production methods to develop a resource efficient process that delivers repeatability and a standardized product.  INDIVA Ltd. is also focused on conducting business in an environmentally and financially sustainable manner. From state-of-the-art production facilities, to the growing list of valuable partnerships and licensing agreements which are an integral part of a business framework designed to provide INDIVA Ltd. with multiple avenues to profit.

The INDIVA Ltd. advantage

A big problem with many smaller licensed producers in the cannabis sector is that they are in a state of “pre-production” and “pre-sale,” meaning that once legalization occurs, they may be left scrambling for ways to turn their investment into profits.  Many cannabis licensed producers are also neglecting to diversify or find a market niche they can compete in, which may mean that they can be easily overwhelmed by larger companies as they attempt to enter the market.

INDIVA Ltd. has been watching the developing cannabis sector closely, so instead of expanding rapidly in an effort to become one of the industry’s “big players,” they have focused on creating an effective, sustainable business.

INDIVA Ltd. owns its means of production at its 40,000 sq ft. facilities and is completing the expansion to full capacity in 2018. INDIVA’s Master Grower, Pete Young, is already providing cannabis products to over one thousand medical patients through a compassion program.  The company knows how to grow, how to package, and how to deliver. All that’s missing is for recreational cannabis to be legalized in the country so that full production can get underway.

“We focus our efforts on making sure that we are sustainable as a company, and are always able to stand on our own.  This has driven us to control all aspects of our business, from production, to branding and sales. We are cannabis producers, and that means flowers, but we’ve also been working hard to establish ourselves in some often-overlooked markets (such as edibles), to ensure we have the necessary revenue sources to achieve profits.  I think this approach makes us unique and gives us the opportunity to grow and become massively successful.” — Niel Marotta, CEO of INDIVA Ltd.

Recently, INDIVA Ltd. has made two important agreements, helping solidify access to revenue streams that are susceptible to rapid growth. First, a 15% stake in DeepCell Industries was acquired, then days later, a 50/50 joint venture with edibles licensor Bhang Corporation appeared in the news. INDIVA Ltd. is establishing itself in the edibles and derivative product market, and gaining several competitive advantages over many of its competitors.

The DeepCell Industries license gives INDIVA Ltd. exclusive rights to manufacture, market and sell the complete line of DeepCell products in Canada.  This includes the company’s innovative cannabis infused “Ruby™” sugar products and DeepCell’s patented Crystal Fusion™ technology.  This technology is unique in that it mechanically fuses cannabinoids, instead of using additives for chemical fusion. The process of chemical fusion is a main reason that cannabis edibles always taste like cannabis, and has been a major hurdle in creating edibles for the mass consumer market.  With Crystal Fusion™ and Ruby™ sugars, there is a huge variety of possible product applications. Everything from coffee or tea, to pancake mixes to energy drinks can become viable cannabis infused consumer products. Even salt can become a “flexible edible”, infused with cannabinoids. This technology is going to be a gamechanger for cannabis edibles.

The Bhang Corporation joint venture is similarly innovative and important.  INDIVA Ltd. has invested $1 million USD to purchase a 4.9% equity interest in Bhang Corp. on a fully diluted basis.   The joint venture gives INDIVA Ltd. exclusive Canadian rights of sale and manufacture, as well as rights to export the branded products internationally.  Created by a master chocolatier, Bhang licences cannabis edibles such as chocolate bars, mouth sprays, gums and vapes, as well as distillates and beverages in the United States.

With these two agreements in place, INDIVA Ltd. is establishing itself as a front runner in the cannabis edibles market.  INDIVA Ltd. has the tools to create and sell a superior cannabis edible product, and this is a very important thing to pay attention too.  Cannabis edibles offer a separate market for cannabis producers, especially when considering that edibles are the future for a large portion of cannabis users who do not “smoke” their cannabis.  This includes those looking for THC or CBD in pill form, or those who wish to remain discreet about their cannabis use.

A recent report published by Arcview Market Research and BDS Analytics, has placed a $57 billion USD valuation on global consumer cannabis spending.  Cannabis edibles will make up a large portion, if not the majority of that valuation, something INDIVA Ltd. plans to take full advantage of.

For now, the legalization of edibles is on hold due to regulations and the government focusing on rolling out recreational legalization first.  However, once the government understands and figures out how to regulate a cannabis edibles market, the race will be on to join in.

 

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The Sprinkles of Cannabis Offers Consumers a New Kind of Edible: Cupcakes

5/30/2018

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DENVER, CO, May. 23, 2018 — Cannabis cupcake company Jade & Jane broadens consumer’s choices in the edibles market with the recent introduction of single serving, recreational, 10mg THC-infused cupcakes. Jade & Jane’s products are available to retail customers through licensed Colorado recreational dispensaries. Wholesale dispensary customers may contact Jade & Jane to place orders. Ordering through LeafLink is coming soon.

Started in 2016, Jade & Jane offers cannasseurs a delicious, handmade alternative to typical, “herbal tasting” edibles. Attractive visual appeal makes Jade & Jane products highly desirable. “We want consumers to feel excited when opening our cupcakes for an anniversary, birthday, or treat,” said Jade & Jane CEO Stephanie Silva.

“Our products are genuinely unique in the Colorado cannabis industry. Jade and Jane cupcakes provide a high quality, reliable, and steady experience because they contain tasteless THC powder. To begin we’re offering traditional flavors like chocolate and vanilla bean, but more interesting options are coming soon. Cupcake edibles offer convenient cannabis consumption with familiarity and nostalgia. It’s my hope we can help remove the stigma from cannabis use by offering the first mainstream edible that’s as American as apple pie and as classic as a hostess cupcake,” said Mrs. Silva.

Jade & Jane plans to release a 90mg recreational cupcake multi-serving product in the near future. Notably, Jade & Jane’s cupcakes are allergen friendly and vegan/dairy free. Additionally, their packaging is child resistant and C.F.R. Title 16, Part 1700.15 & 1700.20 compliant. In an event on May 30th, 8 AM EST Jade & Jane will be doing a Reddit AMA on r/GlitterBongs.

About Jade & Jane: Jade & Jane is a female owned, licensed Denver, Colorado MIP (Marijuana Infused Products) manufacturer of recreational cannabis-infused cupcakes. Learn more at jadeandjane.com or call (720) 441-3209. Email Questions@JadeandJane.com, or follow Jade & Jane on Instagram, Facebook, Twitter, Pinterest, and LinkedIn.

If you would like more information please contact Stephanie Silva at (720) 441-3209 or email Questions@JadeandJane.com.

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California Lawmakers Kill Cannabis Bills as Session Winds Down; 7 Remain

5/30/2018

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Editor’s update: A previous version of this article indicated incorrectly that the delivery-focused bill outlined below had already been rejected by lawmakers. At the time of this update (12:05 pm PST), the bill is currently on the California Senate floor.

Several cannabis-related bills have failed in California just days before the deadline for them to pass the chamber in which they were introduced, East Bay Express reports. One would have cut the excise tax on retail cannabis sales and suspended the cultivation tax; another would have given medical cannabis patients the same rights as those prescribed opioids.

A third bill, currently on the Senate floor, would prohibit municipalities from banning delivery services.

The tax-reduction bill would have reduced retail excise rates from 15 percent to 11 percent and suspended the cultivation tax until June 1, 2021. The excise tax, paired with state sales taxes and local taxes, push total taxes in some localities to as much as 40 percent at the point-of-sale. Amy Jenkins, a lobbyist for the California Cannabis Industry Association, said “killing that bill is a big win for the black market.”

The medical cannabis patients’ rights bill would have allowed the population the same “reasonable accommodation” as other prescription medication takers under the Fair Employment and Housing Act. The measure was opposed by the Chamber of Commerce and Department of Justice.

The bill to prevent towns and cities from banning cannabis deliveries is opposed by two powerful lobbies. The League of California Cities and California State Association of Counties oppose the measure because it would prevent municipalities from self-direction. More than two-thirds of California counties have banned cannabis commerce, including deliveries.

Several other bills can still be considered by the Legislature, including measures allowing cannabis events at any venue in any city that allows them; cannabis farmers markets; the creation of an equity program; an expungement bill; allowing children to take their cannabis medications at school; the creation of a state-run cannabis bank; and allowing laboratories to test home-grown products.

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Federal Alcohol Regulators: No CBD in Beer

5/30/2018

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The Alcohol and Tobacco Tax and Trade Bureau has made it official: the agency will not approve any alcohol formulations containing CBD or THC. The announcement coincides with a report last week that the agency ordered a California brewery to cease production of its CBD infused brews.

But isn’t CBD legal in all 50 states? No, it’s not.

“The Controlled Substances Act (CSA) … defines marijuana as all parts of the Cannabis sativa L. plant (and its derivatives) with certain specific exclusions. Substances (such as tetrahydrocannabinols [THC], cannabidiols [CBD], or terpenes) that are derived from any part of the cannabis plant that is not excluded from the CSA definition of marijuana are controlled substances, regardless of whether such substances are lawful under State law.” – May 25 TTB directive

Yes, this is due to the Drug Enforcement Agency’s move last year to classify CBD as a Schedule I substance. Earlier this month, a court upheld the DEA reclassification – which was initially thought to be a tracking mechanism, rather than a reclassification of CBD; although, the DEA has long maintained that they have always classified CBD as “marijuana.”

The TTB directive indicates that some industrial hemp products can be added to alcoholic beverages. This includes hemp seed oil, sterilized hemp seeds, and non-resinous, mature hemp stalks, which are not considered “marijuana” under the CSA.  

Massachusetts regulators already blocked a brewery from adding CBD to a beer saying it would be a violation of Food and Drug Administration Rules. Brewers in other cannabis-legal states, such as Vermont and Colorado, have unveiled CBD-infused beer.

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Oklahoma State University Not Participating in Inaugural Hemp Pilot Program

5/30/2018

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Oklahoma State University, the state’s largest agricultural college, will not participate in the inaugural hemp pilot program because the law was passed too late in the year for school officials to develop a plan for the program, News9 reports. The bill was signed into law in late April and required 30-day notice in an application for universities to participate which, according to OSU Plant and Soil Sciences Director Dr. Jeff Edwards, didn’t provide enough time to get seed into the ground.

Edwards said the university plans to participate in the program next year and officials would spend the next six months deciding which aspects of the crop they would research.

“Do we need to devote our time to end markets, end uses, the agronomic production, all of the above? And we also need to look for funding opportunities as well.” – Edwards to News9

The university is currently accepting applications from potential subcontractors for the 2019 program. According to the form, the school is seeking research collaborators, cultivators, harvesters, processors, research dollars, and industrial partners.

So far, Pawnee Nation College and Langton University have confirmed that they will participate in the program this year. Pawnee Nation College is working with Oklahoma-based CBD producer Can-Tek Labs to transport its strains from Colorado.

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Indoor cannabis plants that belong to a medical cannabis patient in California.

Canopy Growth Acquires Lesotho MMJ Firm

5/30/2018

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Canadian medical cannabis firm Canopy Growth has acquired Kingdom of Lesotho-based Daddy Cann Lesotho PTY Ltd, trading as Highlands, which holds licenses to cultivate, manufacture, supply, hold, import, export, and transport cannabis and its resin in the African nation. The $29 million acquisition gives Canopy its first foothold in Africa. Canopy now has operations on five continents.

“Lesotho is Canopy Growth’s first step into Africa and we look forward to working with the strong local team at Highlands to establish production and distribution capabilities consistent with Canopy’s global standard for high-quality, regulated medical cannabis products.” — Canopy Growth President Mark Zekulin in a press release

Members of Highland’s management team will remain with Canopy Growth.

“We’re excited to join the Canopy Growth family and bring together our strong entrepreneurial experience and local knowledge in the region with Canopy Growth’s track record and quality standards in the global medical cannabis industry. Lesotho and Southern Africa have enormous potential and we look forward to building a responsible medical cannabis business across the region.” – Highlands Founder Jody Aufrichtig in a statement

Canopy now operates in North and South America, Europe, Oceania, and Africa. Last week, Canopy Growth began trading on the New York Stock Exchange under the “CGC” symbol.

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A homegrown, backyard cannabis plant a few weeks before harvest.

Florida Judge Rules MMJ Smoking Ban Unconstitutional; Stay Ordered as State Appeals

5/29/2018

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A Florida judge has ruled the state’s ban on smoking medical cannabis unconstitutional, calling the Legislature-approved ban “invalid and unenforceable.”

“Qualifying patients have the right to use the form of medical marijuana for [the] treatment of their debilitating medical condition as recommended by their certified physicians, including the use of smokable marijuana in private places.” – Leon County Circuit Court Judge Karen Gievers in the May 25 ruling

However patients will not be able to access smokable products immediately as the state Department of Health has appealed the ruling which imposes an automatic stay, the Associated Press reports.

The lawsuit was filed by attorney John Morgan who was also a key financial backer in the Amendment 2 campaign, which expanded the state’s limited medical cannabis program and added it to the state constitution. The Legislature was responsible for creating rules and implementing the regime.

This is the second blow to the Legislature-approved limits placed on the program in as many months. Last month, Gievers ruled that Count Joe Redner, a stage 4 lung cancer survivor and medical cannabis patient, could legally grow his own cannabis “solely for the purpose of his emulsifying the biomass he needs for the juicing protocol recommended by his physician.” The Legislature had banned patients from growing their own cannabis plants. That decision was also appealed by the Health Department and a stay ordered.   

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NCAA Won’t Allow Player to Use Low-THC Oil to Treat Seizures

5/29/2018

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A high school football player from Georgia has been barred from playing NCAA football due to his use of CBD oil to treat his seizures, according to a WGXA report. C.J. Harris, a senior at Warner Robins High School, received a preferred walk-on offer from Auburn University – his “dream school” – but the offer was later rescinded due to his CBD use.

He wouldn’t be able to pass a drug test because of his CBD oil use. The oil, which is legal to possess and use for medical purposes including seizures in Georgia, contains 0.3 percent THC; NCAA athletes are not allowed to have any THC in their systems.

His father Curtis said telling his son he couldn’t play college football was the hardest thing he’s had to do.

“You’re taking something away from a kid who’s worked so hard in his life to get there. And you’re just taking it away because he’s taking a medication that’s helping with his disability.” – Curtis Harris to WGXA

Harris is considering playing collegiate football at a lower level. He’s also considering replacing the cannabis oil – the only medicine that has stopped his seizures – with another medicine that would allow him to pass the NCAA drug test.

Update (5/29, 10:55 a.m.):

In a follow-up interview, an unnamed individual said to be familiar with this event told SEC Country that Harris was actually deemed ineligible due to his epilepsy diagnosis and the risk of having a seizure during a high-contact sport — not because of his use of low-THC, CBD-rich cannabis oils.

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MedMen Heads to Canadian Securities Exchange

5/29/2018

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MedMen, a U.S.-based medical cannabis company, is set to begin trading on the Canadian Securities Exchange today after acquiring Ladera Ventures Corp., an oil and gas shell company, the Financial Post reports. The company completed a $143 million raise before heading to the exchange and has an implied value of $2 billion, according to the report.

“The Canadian Securities Exchange … gives us the fastest access to liquid capital that we can get at this point. We’re already in three states and we have a lot of projects that are in the pipeline. Our ability to raise capital fast is what will also allow us to grow and build faster,” — Daniel Yi, MedMen senior vice-president of corporate communications, to the Post

In March, MedMen announced a joint venture with Canadian medical cannabis producer Cronos Group Inc. That venture, called MedMen Canada Inc. intends to bring MedMen-branded dispensaries to provinces where private retailers will be permitted under recreational cannabis regulations, such as Alberta and British Columbia. Currently, the company boasts 12 medical cannabis dispensaries throughout the U.S. in New York, Nevada, and California.

The financing round was led by Cormark Securities Inc. and Canaccord Genuity Corp. It saw MedMen shares sell for $5.25.

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Canopy Growth Reaches New York Stock Exchange

5/25/2018

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Canadian medical cannabis company Canopy Growth began trading on the New York Stock Exchange under the “CGC” symbol yesterday, but after opening as high as $32.00 in pre-market trading, shares dropped 6.66 percent to $28.20 by the market’s close.

It’s the first cannabis company to list on the NYSE and Midas Letter notes that their first day on the American exchange was similar to that of Canadian producer Cronos Group, who was listed on the Nasdaq in February – the first cannabis company to reach American markets. Cronos ended its first day down 1.80 percent after trading as high as $8.38 a share – 10.99 percent above its open. Both companies are also publicly traded in Canada.

Canopy CEO Bruce Linton said he planned on listing on the Nasdaq but pulled back to finalize the Constellation Brands deal. He added that listing on the NYSE instead of the Nasdaq adds more credibility to the company.

“Five years ago, as a small Smiths Falls based start-up in the cannabis sector, we could have never imagined this historic moment. I am exceptionally proud of our team for what they have built and what we will continue to build by continuing our focus on research, product innovation, and intellectual property to drive the industry forward around the world.” – Linton in a press release

Canopy Growth has signed deals with Quebec and Manitoba to supply the provinces with recreational cannabis.

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Arizona Supreme Court Tosses Law Criminalizing MMJ Possession on College Campuses

5/25/2018

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The Arizona Supreme Court has ruled that the state cannot criminally charge public college students for possessing and using cannabis on campus if they have a medical cannabis card, according to an AZCentral report. The court ruled that the 2012 Legislature-approved law violated the state constitution’s protections for voter-approved laws.

The court also tossed the conviction of the plaintiff. Andre Maestas was arrested in 2014 for obstructing traffic after he was found sitting in an intersection. During a search of his wallet, police found his medical cannabis card and Maestas admitted to having a small amount of cannabis in his dorm room. The police search yielded 0.4 grams – far less than the 2.5 ounces medical cannabis cardholders are allowed by law to possess.

The voter-approved 2010 medical cannabis law included language that barred medical cannabis use and possession from Pre-K through high school, and on school buses, but it did not include college campuses.

Colleges have their own rules and most of them, even in legal states, ban cannabis use and possession. The high court ruling effectively expunges the 2012 Legislature-passed law but does not shield medical cannabis patients – or adults 21-and-older in states with recreational-use laws – from disciplinary actions by a college for violating their rules.

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State Regulators, Canna Operators and Testing Experts Gather to Evaluate the Cannabis Industry at the Canna West Summit

5/24/2018

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After three successful Cannabis Compliance Summits on the east and west coasts, Infocast is proud to announce the return of the Canna West: Compliance, Testing & Product Safety Summit, taking place June 5-7, 2018 in Redondo Beach, CA. The Summit will bring regulators, policymakers and testing experts together with cannabis operators to share industry best practices.

Estimates suggest that the combined medical and adult-use market may be worth $5 billion by 2019 in California alone, while the forecasts for national and global canna markets are revised, upward, on a daily basis. To take advantage of these new opportunities, industry players must learn how to navigate through the evolving regulatory framework. The Summit will provide attendees with the opportunity to hear from regulators and learn best practices from their peers and industry experts.

Critical topics to be discussed revolve around navigating local, county, state and national regulations for all steps in the cannabis chain – from growing to extraction, infused products to retail, track & trace implementation to contaminant thresholds,  packaging, labelling, and so much more, all just in advance of California’s mandatory July 1 testing launch. State regulators and health officials will be sharing notes and driving operators toward uniform testing, labeling, operational standards, protocols and best practices.

High profile brands and growers participating at the Canna West Compliance Summit include MedMen, OutCo, Meadow, Big Moon Sky, Bud and Bloom, Chemistry, Constance Therapeutics, Berkeley Patients Group, Love’s Oven, LLC, and many more.

Additionally, Alexis Podesta, Secretary, California Business Consumer Services and Housing Agency, Reginald Byron Jones-Sawyer, Sr. of the California State Assembly, Alice Mead of GW Pharmaceuticals and Lindsay Robinson of the California Cannabis Industry Association are the featured keynote speakers.

“A most informative conference with lots of serious, important information for an emerging industry. The panelists were extremely prepared, articulate and transparent.” – Senator Eleanor Sobel, Consultant, ELEANOR SOBEL CONSULTANTS

To register or learn more information regarding the agenda, speakers, and sessions: visit http://infocastinc.com/event/cannabis-compliance-west/ or contact Infocast at 818-888-4444.

About Infocast:

For over 30 years, Infocast has produced the highest quality events, tailored to the needs of the industries we serve. We intensively research the marketplace, pulling from an extensive network of experts to give you the information and connections to succeed.

 

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7-Eleven Denies They Have Any Partnership with CBD Company

5/24/2018

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Convenience store chain 7-Eleven has rebuked the news that they will sell CBD products by the end of the year, calling Tuesday’s announcement false, Huffington Post reports. Denver, Colorado-based CBD company Phoenix Tears made the announcement in a press release earlier this week – and while it notes that the company’s agreement was made with MarketHub Retail Services, which according to the release works with 7-Eleven franchises, 7-Eleven Director of Communications Stephanie Shaw said she had no knowledge of the deal.

“We have made no agreement or partnership with this company and do not know why they said that.” — Shaw to Huffington Post

The Phoenix Tears press release stated that the partnership would see CBD products in 7-Eleven stores in Nevada, Colorado, Massachusetts, Illinois, Maryland, Florida, California and Washington, D.C. by year’s end. 

Suzanna Mattaboni, a spokeswoman for Phoenix Tears from the public relations firm Parallel Communications, Inc., told Huffington Post that the press release may have misstated some of the details and she was trying “to get to the bottom” of the issue. The release includes a statement from the president of MarketHub Retail Services and founder of Phoenix Tears but does not include a statement from any 7-Eleven officials.

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Feds Tell California Brewer to Cease CBD Beer Production

5/24/2018

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The federal Alcohol and Tobacco Tax and Trade Bureau have ordered a California brewery to cease production of their CBD-infused beer because hemp is a non-standard beer ingredient, the San Francisco Chronicle reports. Black Hammer Brewing unveiled Toke Back Mountain on Apr. 20 and released eight more CBD-infused beers, which owner Jim Furman said became the brewer’s most popular line.

The recipe also includes hemp-derived terpenes, and Furman said he will apply for special approval to use both the CBD and terpenes. They have already started the application process with the agency to get approval to use hemp in their beers. The brewery can continue to sell the beers they have already produced at their tap room.

It’s not just the feds. The Massachusetts Alcoholic Beverage Control Commission killed a plan by Down the Road Beer Co. to produce a CBD-infused beer, saying the recipe would violate the Food & Drug Administration’s Food, Drug, and Cosmetic Act.

Other brewers have had success with CBD infusions. Last August Lagunitas Brewing Company, also based in California, produced 120 kegs of its own CBD-infused beer; and Vermont’s Long Trail Brewing Company announced they would create their own beer using CBD-infused honey. Green Empire Brewing, a much smaller Vermont brewer, unveiled their own CBD-infused beer at September’s Hemp Fest.    

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The Toronto Stock Exchange Tower in Toronto, Ontario photographed at night.

Medical Cannabis Company with Colombian Operations Begins Trading on Canada’s TSX Venture Exchange

5/24/2018

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Canada-based medical cannabis company Khiron Life Sciences Corp begins trading on the TSX Venture Exchange today under the “KHRN” symbol. While the company is based in Canada, its core operations are in Colombia, where they were one of the first companies to receive a medical cannabis license in the Latin American nation.

“We are pleased to be able to offer investors the opportunity to participate in the realization of our strategic and operational objectives. With the completion of this listing, our team will continue to focus on executing on our goal to expand across Latin America, a region with over 640 million people with unmet medical needs. Our patient-centric business model supported by world-class cultivation and extraction processes, brand loyalty development and a doctor education platform, positions us to become a dominant company in this region.” – Khiron President and CEO Alvaro Torres, in a press release

It’s the latest in a series of firsts for Khiron as they are the first medical cannabis producer with core operations in Colombia to list on any securities exchange globally. The firm struck a partnership with the Colombian Neurological Association to host two medical cannabis conferences and was one of the first companies to receive cultivation quotas for high-THC plants in Colombia. It has raised $17 million of equity capital over three financing rounds.

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A young cannabis plant showing signs of growth under an LED grow light.

Pennsylvania Judge Stalls Health Department Plan to Issue Additional MMJ Licenses for Research

5/24/2018

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A Pennsylvania judge has issued a preliminary junction against the Health Department’s plan to hand out additional licenses to cannabis growers and dispensaries that would partner for research with medical schools, the Associated Press reports. The case against the agency was brought by other licensed dispensaries in the state.

The judge ruled that the research provisions go beyond the scope of the law. In the ruling, Commonwealth Court Judge Patricia McCullough said the “regulations appear to be inconsistent with the legislative intent of Chapter 20, which was to permit distribution of medical marijuana for purposes of and in conjunction with research studies conducted jointly” with medical schools.

The Health Department is considering its options to challenge the ruling.

“Research is a vital component of Pennsylvania’s medical marijuana program to improve treatment options for patients suffering from serious medical conditions, including opioid-use disorder. The research program was rolled out in consultation with the sponsors of the original legislation and our approach was meant to ensure lower costs, more accessibility and ground-breaking treatments.” – Department of Health spokeswoman April Hutcheson, to the AP

The plaintiffs’ attorney, Judith Cassel, says that her clients are not opposed to the research but the “clinical registrants” should be doing research exclusively.

“We are happy that the court saw fit to provide a preliminary injunction so that a careful review could be done on the regulations. And hopefully, in the end, the regulations will better reflect the act.” – Cassel to the AP

McCullough said that the Legislature did intend for clinical registrants “to exist exclusively for research purposes.”

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North Carolina Tire Retailer Transitions Into CBD Sales; Offering Product Trial Bundles

5/23/2018

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Pure Relief is a North Carolina-based CBD dispensary founded by entrepreneur and former tire retailer Mike Melton. The company, having transitioned from Melton’s former tire business into a holistic CBD center, may have a curious history but it has made big waves both online and in its local community via CBD product trial bundles.

The acceptance of CBD oils and products as a health alternative has spiked over the past few years, but, due to its origin in the cannabis plant, it has had a hard time growing in states that are less accepting of cannabis. Mike Melton made it his mission to bridge the gap between CBD and the people in his area through Pure Relief.

In 2001, Melton privately opened up a tire superstore. After over a decade of successful tire sales, he explains why he made the leap into the CBD industry:

“The magnitude of the national opioid epidemic, and its effect on people close to me battling drug addiction, really opened my eyes to CBD. Although the industry is growing, and from a business point of view it only makes sense to jump in now, my true reasoning is personally trying to change as many lives as I can for the positive; for the better.”

In January 2018, Melton officially launched Pure Relief online as an all natural product marketplace and changed the signage of the tire shop to reflect his new business. In order to boost interest and get CBD into people’s hands, he decided to keep prices low because he knew the CBD would ultimately sell itself to people who need it, once they’ve tried it.

When asked about his end goal in the CBD space, Melton said, “We obviously want to offer the highest-quality CBD to people around the world online, and we want to have hundreds of CBD dispensaries across the nation. But these are just steps leading to my ultimate goal, which is to cause a meaningful shift in the opioid crisis and save actual lives, one tincture at a time.”

Visit PureRelief.com to learn more.

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