Johnnie Rush: Designing Innovative Cannabis Retail Locations

4/24/2018

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Johnnie Rush is the Chief Business Innovation Officer for The McBride Company, a creative concept and design firm that specializes in creating spaces imbued with a specific experience, emotion, or attitude.

The McBride Company’s first cannabis project — the Pineapple Express dispensary in Los Angeles, California — attracted media attention and helped generate a lot of hype around the industry’s new retail locations. We recently caught up with Johnnie, who is a 30-year veteran of the retail, commercial, and entertainment industries, to talk about the work and strategies that go into designing a retail cannabis location.

We hope you enjoy this interview, which contains tips for dispensary owners, words of advice for aspiring designers, and more!

Ganjapreneur: When did The McBride Company decide to turn its attention to cannabis retail, and what was that decision/conversation like?

Johnnie Rush: We were hired by a client several years ago (Pineapple Express) to design one of the first truly-branded cannabis retail dispensaries. Our task was to “convert” a mysterious and taboo product into a branded retail destination through engagement, education and environmental design. The McBride Company has received a tremendous amount of media attention over the unique design approach and the final Pineapple Express concept. Since then, we’ve been approached by many clients desiring the same “brand creation” for a dispensary concept – both medicinal and recreational. The decision to pursue this emerging market was an easy decision for us – bringing our unique services and design methodology to a new industry.

If you were contracted to help boost a dispensary’s retail image, could you explain briefly how that would work/what the overall process would look like?

Our process begins with a thorough understanding of the client’s needs, goals and vision. Defining “what success looks like” is different for every business, and we have a track-record of delivering not only great designs, but financially successful projects. We focus on a “total” brand package to enable our clients to create, maintain and expand their dispensary image and brand presence, including store design, graphics, visual identity, packaging concepts and the total consumer “experience.” Through brainstorming and collaboration with our Clients, we go through an APA (Advanced Preliminary Analysis) process including sketches, materials, logo/branding concepts and floor plans representing the programmatic requirements and specific needs of dispensary facilities. Once the client approves the final concept package, we move the project into the additional design stages needed to physically build a store – architectural, interior design and specialty features.

For a cannabis company, what are the biggest advantages of having a professionally designed atmosphere?

The emotional bonds that a consumer creates with any retailer are based on experiences – digital, social and environmental. For the cannabis industry, the biggest advantage is the creation of a educational and engaging shopping environment that reinforces safety, professionalism, dependability, education and creativity. This is the highest priority in creating a consumer “relationship,” not just a sale, that promotes and encourages loyalty, intent-to-return and social credibility.

What is the most interesting dispensary atmosphere that you’ve worked on so far with the McBride Company?

Definitely a design project created by our Alpha Think team – “The East Indica Company.”

The East Indica Company harkens back to the time of the Revolutionary war. The brand is inspired by the spirit of the Boston Tea Party, the Founding Fathers and above all else, freedom. The brand identity and design spans everything from the shop theming through the product packaging. The dispensary’s interior design is reminiscent of a period tea merchant shop.

Instilling a sense of freedom, revolution, camaraderie and kindred spirits, the East Indica Company encourages a new breed of consumer to “join the cause.” This storyline is reinforced through clever manipulation of historical artworks that depict the cannabis revolution from a “Colonial” perspective. Technological innovations include touch-screen browsing, a virtual POS system, automated product dispensing, and the first “Declaration Station” – an automated petitioning themed kiosk.

It’s a clever dispensary brand that combines history, political savviness and camaraderie into an exciting cannabis experience!

How might a dispensary’s theme or style help break the longstanding cannabis stigma?

The cannabis “stigma” is directly associated with several important issues:

  • Consumer uncertainty about legalization
  • Lack of education about the products available, applicability and medicinal use vs educational
  • Past experiences (either good or bad)
  • Confusion about the purchasing, prescription and safety of the shopping environment.

A professionally-designed dispensary addresses all of these issues through education, information, brand identity, and exceptional and knowledgeable guest service. A well-displayed selection of products, their applicability to the guest’s needs and the logic of the environmental “experience” help guide and encourage consumers to browse and experiment with confidence.

Could you share any tips that would help a dispensary owner design or improve their own cannabis retail experience?

Absolutely. Whenever we’re speaking at a cannabis industry event, we always recap the session with the four key things every retailer needs to focus on:

  1. Build your brand with emotion and a story-driven experience to create consumer affinity
  2. Define your brand guidelines with passion (and stick to them!)
  3. Place equal effort on the development of “locations” – physical, digital and social
  4. Leverage your social media “toolbox” to make your storytelling contagious

What are the biggest differences in terms of retail design that you see between cannabis and other, more mainstream industries?

Without a doubt, the biggest differences are consumer safety, product control and money handling. You could almost say that a dispensary concept is very similar to designing a bank – it’s brand-centric, tightly controlled, monitors and dispenses the “product,” and has strict regulatory oversight and accountability.

Regardless of their state, cannabis companies face a heap of restrictions — do any of these regulatory concerns affect or influence your design plans? If yes, how so — and how have you overcome those issues?

It’s a short-term issue. The voice of the cannabis consumer gets stronger and more influential every day. Deregulation is in the foreseeable future, but that has little influence on the design process. Other than strict regulatory mandates that impact program elements, the design process is identical to any other project.

Do you have any tips or advice for aspiring designers?

Absolutely! The cannabis industry is a new opportunity for designers to influence the direction of a new business category that is heavily impacted by creativity, innovation and social credibility. My advice is simple: Design for the future, not the present. Don’t let the confusion and political flux of inevitable product legalization hamper your design and creativity!

We want to give a big thank you to Johnnie for taking the time to answer our questions here. To learn more about Johnnie Rush and The McBride Company, visit McBrideDesign.com.

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Legally Operating Michigan MMJ Dispensaries Receive Fake Cease-and-Desist Letters

4/24/2018

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Fake cease-and-desist notices are being posted to some Michigan medical cannabis dispensaries that are legally operating under the state’s emergency rules. The fake notices come nearly a month after the Department of Licensing and Regulatory Affairs sent more than 200 to shops that had not received temporary permits.

The state stopped issuing cease-and-deists letter on Apr. 18, according to LARA and Michigan State Police.

“LARA reminds applicants and potential licensees that [Bureau of Medical Marihuana Regulation] Enforcement Officers carry a form of identification that makes it clear that they work for the bureau. … Please ask the enforcement personnel to show this identification at any time. Also, it should be noted that, moving forward, official communication from the State of Michigan will be delivered either via US Postal mail or in-person hand delivery.” – LARA in a press release

David Harns, a spokesman for LARA, told the Detroit Free Press that the department wouldn’t speculate on the motive behind the fraudulent letters or how many businesses had received them.

Last week, the Marihuana Licensing Board approved initial applications for nine businesses under the new regime, according to the Associated Press. Those applications still require physical locations and community approval to proceed.

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Detroit skyline pictured from a boat on the river.

Michigan Election Officials Approve Legalization Petition Signatures; Moves to Board of Canvassers

4/24/2018

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The Michigan State Bureau of Elections has recommended that the state Board of Canvassers approve the recreational cannabis use petition by the Coalition to Regulate Marijuana Like Alcohol and put the issue on November ballots.

According to the recommendation, the agency determined that the petition contains 277,370 valid signatures. The advocates needed to collect 252,523 for the measure to move forward.

“We’re one more step along the path to ending the failure of marijuana prohibition in Michigan and stopping the massive waste of law enforcement resources. Regulation and taxation will bring much needed jobs and revenue for Michigan schools, roads and local governments.” – The Coalition to Regulate Marijuana Like Alcohol, in an Apr. 23 Facebook post.

The Bureau of Elections notes that the period to file a challenge against the petition closed on Feb. 9 “without an opponent having filed a challenge against this petition.”

According to a March poll, 61 percent of voters indicated they would support the reforms if they were to make the ballot.

In 2016, the Board of Canvassers ruled that 137,000 signatures on a similar petition were “stale.” The ruling prevented the measure from being considered by voters in that election. The Board of Canvassers still needs to approve this year’s petition. The body is expected to rule on the measure on Thursday.

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A licensed, indoor cannabis grow operation in Washington state.

Missouri House Approves Medical Cannabis Expansions

4/24/2018

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The Missouri House has approved amendments to a proposed medical cannabis bill which would expand the program beyond those who are terminally ill, the St. Louis Post-Dispatch reports. The bill, advanced to third reading by lawmakers, now includes access for patients suffering from post-traumatic-stress-disorder, epilepsy, Alzheimer’s disease, Parkinson’s disease, multiple sclerosis, and other non-terminal illnesses.

The expanded bill was approved by the chamber 99-44. The measure would create a comprehensive program, allowing flower access through state-approved dispensaries. The law would also expand the state’s limited CBD program and allow hemp production for low-THC products.

Rep. Shamed Dogan, a Republican who offered the amendment to include Alzheimer’s, Parkinson’s and MS, said her amendment “is in the spirit of what [the] voters think when they think of medical marijuana.”

The fiscal note attached to the bill suggests that the program would cost the state general fund money in each of its first three years. The note also assumes that the program would “result in an increase in violations of possession and production/distribution of controlled substances” because it creates a new Class D felony for illegally distributing medical cannabis products.

The House considered a similar proposal in 2016 but it was rejected by the chamber. Activists have also attempted to legalize medical cannabis use through the ballot initiative process but have not been successful. The measure still needs to be approved by the Senate.

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Pittsburgh downtown from the Duquesne Incline overlook

Pittsburgh MMJ Patient Jailed for Violating Bond after Testing Positive for THC

4/24/2018

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A Pittsburgh, Pennsylvania medical cannabis patient was jailed for 10 days last week after an Allegheny County judge ruled that the THC in his system was a violation of his bond, which prohibits criminal activity, according to a Pittsburgh Post-Gazette report. Samson L. Bailey was later released after his physician provided proof of his medical cannabis certification to the court. Bailey was charged with credit card fraud last year. He reached a deal to pay the falsified charges and have the charges dropped.

“When they put me in handcuffs I was really confused, I didn’t understand what was going on. That was the hardest 10 days of my life.” – Bailey to the Post-Gazette

In Pennsylvania, law enforcement officers cannot access the state’s medical cannabis registry. So officers must rely on the patient having their identification card to verify they are patients in the program. Bailey said he had never received a copy of his ID card, and suggested that it might have been sent to the wrong address.

Pennsylvania Department of Health spokeswoman April Hutchinson said officers could call the department to verify a patient’s status, but noted there is no dedicated line to do so.

“I don’t know that it’s been an issue. This is a new program and there will be things that come up that are unique.” – Hutchinson to the Post-Gazette

Bailey said he was not using THC products at the time of the arrest. Rather, he was using CBD oil, which is legally available to everyone in the state.

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A young cannabis plant soaking up the output of an LED grow light in a legal California medical grow operation.

Survey: 90% of Cannabis Consumers Would Vote to Legalize in their Home State

4/23/2018

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According to a Civilized and PSB survey of 1,000 Americans and 600 Canadians, 61 percent of Americans said they plan to use the same amount of cannabis in the future as they do now, along with 61 percent of their Canadian counterparts.

Another 58 percent of American respondents indicated they would vote for cannabis legalization in their home state, while 19 percent said they wouldn’t vote, 22 percent said they wouldn’t vote (11 percent) or didn’t know (11 percent) whether they would support the reforms. Those figures jump to 90 percent, 5 percent, and 4 percent, respectively among cannabis consumers.

What did cannabis consumers say they like to do in their free time: 53 percent of American and 52 percent of Canadian cannabis consumers said they have done some reading over the last month, while 59 percent of Americans and 68 percent of Canadians said they played some sort of video, mobile, or computer game in the last month.  Sixty-four percent of Americans and Canadian respondents said they had streamed a video over the last month, while 72 percent of Americans and 71 percent of Canadians said they watched non-news television over the last month. Another 83 percent of Canadian respondents and 80 percent of Americans said they saw a movie over the last month.

Cannabis consumers are also quite social: 76 percent of American and 79 percent of Canadian respondents said they use a social networking site. Seventy-two percent of Canadians said they had visited friends and family compared to 66 percent of Americans, while 64 percent of Americans called a friend over the past month along with 65 percent of Canadians.

The survey also found that 54 percent of American cannabis consumers and 58 percent of Canadian consumers had some alcoholic beverage on the last month, while another 61 percent of Canadians and 56 percent of Americans had done some type of exercise.

The results are from Civilized’s 2018 Cannabis Culture Poll.

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Kansas Gov. Signs Industrial Hemp Bill

4/23/2018

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Kansas Gov. Jeff Colyer has signed the bill to create an industrial hemp pilot program in the state which passed the Senate in February and the House earlier this month. The final version of the measure allows the State Department of Agriculture, either alone or with an institution of higher education, to grow the crop and promote the research and development of hemp in accordance with federal laws.

“Research and development of industrial hemp, under the provisions of the bill, means such things as analysis of industrial hemp growth, including required soils, growing conditions, and harvest methods; research on seeds most suitable for Kansas; and market analysis to determine the potential for an industrial hemp market in Kansas.” – SB.263 enrolled summary document

The measure creates an industrial hemp advisory board and implements a schedule of licensure and fees. The costs of the fees for licenses, renewals “and other necessary expenses” still need to be determined by agriculture officials. All licensees will need to undergo a criminal background check, including fingerprints. Individuals with felony controlled substance convictions will not be allowed to obtain an industrial hemp license.

Under the law, the Department of Agriculture must promulgate the rules and regulations for the program by Dec. 31 and submit a progress report to legislative committees by Jan. 14, 2019.

Kansas is the 36th state to legalize hemp for industrial purposes.

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Australian Green Party Proposes Cannabis Legalization

4/23/2018

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The Australian Parliamentary Budget Office has found that legalizing cannabis throughout the nation would be worth nearly $2 billion a year for the government, according to a Guardian report. The Green Party has proposed a plan to tax-and-regulate cannabis for adults, which, according to the PBO, would raise $3.6 billion over the first four years beginning in July 2019, based on a 25 percent excise tax.

Under the plan, Australia‘s government would act as a wholesaler but citizens would be allowed to grow up to six plants in their home. The PBO bases their estimates on production license fees of $3,500 and annual fees for producers of $2,300. They estimated that recreational users would purchase 3 grams per week.

Greens leader Richard Di Natale said the proposal “would fully fund drug education and treatment programs and provide a much needed funding boost” for hospitals and Medicare.

“We need to get real about cannabis. Almost 7 million Australians have used cannabis despite currently risking a criminal record for doing so. As a drug and alcohol doctor, I’ve seen the ‘tough on drugs’ approach causes enormous harm. It drives people away from getting help when they need it and exposes them to a dangerous black market.” – Di Natale to the Guardian

According to one 2016 survey, less than half (47 percent) of Australians supported legalizing cannabis; however, that figure is pushed to 55 percent when legalization includes a taxed and regulated regime like alcohol and tobacco.

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The city skyline of Saskatoon, Saskatchewan silhouetted by a setting sun.

Saskatchewan Canada Opens Cannabis Wholesale Permits

4/23/2018

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The Saskatchewan Liquor and Gaming Authority is now accepting applications for wholesale cannabis permits and licensed producers. There is no limit in the province on the number of wholesale permits, but those permittees can only sell to retailers and not to the general public.

Wholesale permit fees run $5,000, including a $2,000 non-refundable application fee and a $3,000 annual fee. The registration fee for federally-licensed producers is $2,000, including a $500 non-refundable application fee and a $1,500 annual permit fee.

Gene Makowsky, the Minister Responsible for SLGA, said interest in the retail cannabis sector is “very strong” and explained that submissions that meet the requirements will be “randomly selected” for permits “in the coming weeks prior to federal legalization.”

“Our government is committed to ensuring that the legalization of cannabis is focused on protecting the public. Having SLGA permitted wholesalers and federally-licensed producers will help ensure that the supply of cannabis in our province is safe.” – Makowsky in a press release

The province has already closed the application process for retail permits. There are 52 retail permits available in 32 communities. Saskatchewan is one of just three provinces allowing private entities to run retail cannabis sales, rather than government-run stores.

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Marijuana Companies & Investors from U.S. and Canada Plot Next Moves In Vancouver April 30 – May 2

4/23/2018

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1st NASDAQ-traded company CEO Mike Gorenstein of Cronos Group and most pro-cannabis Republican, Congressman Dana Rohrabacher to address group; Dozens of Promising Cannabis Companies Pitch Investors in ‘Shark-Tank’ Style Format

Vancouver, BC – On the heels of Trump backing states’ rights on marijuana and former Speaker of the House John Boehner joining the cannabis industry, more than 200 high-net-worth investors from around the world will gather at The Westin Bayshore for a two-day forum on Tuesday, May 1st and Wednesday, May 2nd, hosted for members of The Arcview Investor Network. High net worth accredited investors will be reviewing pitches from companies who competed fiercely for a slot out of a field of hundreds of applicants. In 2017 alone, Arcview’s members placed more than $50 million in 60+ Arcview-curated companies, making them the top source of capital for the cannabis industry.

Mike Gorenstein, CEO of the Cronos Group, will deliver a keynote speech. Cronos, owner of numerous licensed cannabis producers in Canada, recently became the sector’s first company listed on a major U.S. exchange, and promptly raised $100 million. Congressman Dana Rohrabacher, the most pro-cannabis Republican in Congress and co-sponsor of the Rohrabacher–Farr amendment prohibiting the Justice Department from spending funds to interfere with the implementation of state medical cannabis laws, will also be addressing this group of industry leaders.

“In a few months, Canada will become the first G7 country to legalize cannabis. Investors have responded, pouring money into the sector and sending the stock prices of Canadian companies into the stratosphere. Now flush with cash, Canadian-listed companies are looking beyond the modestly-sized Canadian market for global opportunities, and turning their attention to the capital-constrained U.S. market. News of the President and top Republicans changing their tune on cannabis is adding to the excitement around the possibility of a rapid change in U.S. federal law,” said Troy Dayton, CEO and co-Founder of The Arcview Group.

Learn more about the growth of the cannabis industry via this short video. For a sense of what to expect at Arcview, see this short video.

  • Who: Members of The Arcview Investor Network plus cannabis-related companies chosen to present.
  • What: Select media representatives will be invited to witness presentations from companies that have been successful at raising capital from this group and those who are hoping to attract investors at this meeting. Throughout the day, select reporters will be able to interview high net worth investors who have recently invested in the sector or are considering it, companies that have recently been funded, and elected officials that support legalization.
  • When: Tuesday, May 1st and Wednesday, May 2nd between 9:30AM – 4:00PM.
  • Where: The Westin Bayshore, 1601 Bayshore Drive, Vancouver, BC, Canada.
  • How: Members of the media must apply for press credentials by emailing abbybenjamin@arcviewgroup.com.

About The Arcview Group

Founded in 2010, The Arcview Group is responsible for a number of groundbreaking ventures in the cannabis industry. The Arcview Investor Network includes more than 600 accredited investors who have put more than $160 million behind 170+ companies. Arcview Market Research publishes the State of Legal Marijuana Markets report, which is the most oft-cited market data report. In 2015 Arcview became a partner in Canopy, the first seed-stage mentor-driven business accelerator. Arcview is also co-founder of Cannasure Insurance Services, the leading provider of business insurance to the cannabis industry.

Some of the people expected to attend and available for interviews include:

Mike Gorenstein, CEO of Cronos Group, a globally-diversified and vertically-integrated cannabis company with a presence across four continents.

Congressman Dana Rohrabacher (R-CA), co-sponsor of the Rohrabacher–Farr amendment, which prohibits the Justice Department from spending funds to interfere with the implementation of state medical cannabis laws.

Steve DeAngelo, Executive Director of Harborside Health Centers, star of Discovery Channel’s hit show Weed Wars, author of the book The Cannabis Manifesto, co-Founder and President of The Arcview Group, and co-Founder of the first cannabis testing lab, Steep Hill.

Troy Dayton, co-Founder and CEO of The Arcview Group, Board Member of the Marijuana Policy Project and the National Cannabis Industry Association, and co-Founder of Students for Sensible Drug Policy. Named by Fortune Magazine, International Business Times, and Details Magazine in their lists of most influential people in the cannabis industry.

Cassandra Farrington, CEO of Marijuana Business Daily, the top media and trade show company in the cannabis sector. Named to the Inc. 5000 and named in the top 5 fastest growing trade shows in North America.

Alan Gertner, CEO of Hiku Brands, a company whose valuation grew from $4M two years ago to a current market cap in excess of CAD $350 million.  Alan is a former Google executive.

Sturges Karban, CEO of MJIC, a California infrastructure network to move cannabis state-wide, legally. He has expertise across cannabis, investment banking, real estate and entertainment, and is regularly featured in major media outlets.

Neil Closner, CEO of MedReleaf, co-founded and organically grew the company into the country’s second largest Licensed Producer with just under a 20% share of the medical cannabis market. Neil is also Chairman of the Board of the Cannabis Canada Association, representing the majority of Licensed Producers.

Greg Engel, CEO of Organigram Holdings Inc., a licensed Canadian producer of medical cannabis. Greg has more than 30 years of experience in pharma, biotech, and CPG and has overseen Organigram’s 50% share price gain in his two-year tenure.

Michael Ray, Founder/CEO of Bloom Farms, a California-based cannabis lifestyle brand and distribution company with products sold in hundreds of retail locations throughout California and Nevada.

Michael Elkin, Vice President of Cannabis Compliance Inc., a global cannabis-focused compliance consulting firm representing over 125 active applications for cannabis production with the Canadian government.

Jeanne Sullivan, co-Founder of StarVest Partners, a venture capital firm in NYC, and long time tech investor. Cited by Forbes as “one of the women venture capitalists changing the world – grooming the next generation of female entrepreneurs.”

Anthony Dutton, CEO of CannEx Capital Holdings, a Vancouver, BC-based firm providing real estate, management, financial, branding, and IP services to licensed cannabis businesses. CannEx recently acquired Jetty Extracts, a California-based cannabis extraction and processing facility.

Vahan Ajamian, Equity Analyst at Beacon Securities. Positioned at the intersection of institutional capital, IPOs, M&A, and industry-wide policy, Vahan deeply understands the Canadian cannabis market.

Myrna Gillis, CEO of Aqualitas, a licensed Canadian cultivator that raised millions from Arcview members.

Lindsay Robinson, Executive Director of the California Cannabis Industry Association. Most recently, CCIA was instrumental in passing the Governor’s trailer bill, which reconciled the state medical marijuana and adult-use frameworks.

John Brecker and Rod Stephan, Partners at Altitude Investment Management, a cannabis-focused venture capital firm overseeing investments in ancillary businesses as well as enterprises which touch the plant.

Patrick Rea, Managing Director of Canopy, a seed-stage, mentor-driven business accelerator partnered with Arcview, and serving the cannabis industry since 2014.

Tom Adams, Editor-In-Chief of Arcview Market Research, and lead researcher for the soon to be released 6th edition of The State of Legal Marijuana Markets co-produced with BDS Analytics. Tom has projected the growth curves for a number of business booms over the last few decades.

Event sponsors include: MJIC, Electrum Partners, MassRoots, Marijuana Business Daily, MedPharm Holdings, Choom, Electrum Partners, Inner Spirit Holdings, Deepwater, Cannabis Compliance Inc., TenX Ventures Inc., Steep Hill, Marijuana Policy Project, New Frontier Data, I-nvention, CannEx Capital, Organigram, Ravenquest Biomed Inc., Beacon Securities, Austin Legal Group, Glorietta Management Group, Thai Cannabis Corp., Phylos Biosciences, Province Brands, Convectium, Altopa, Aqualitas, Canopy Boulder, BDS Analytics

Contact:

Abby Benjamin, Media Relations
abbybenjamin@arcviewgroup.com
720-518-7611

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Senate Minority Leader Chuck Schumer Announces Bill to De-Schedule Cannabis

4/20/2018

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The Senate’s top Democrat, Sen. Chuck Schumer of New York, has announced legislation that would de-schedule cannabis from the Controlled Substances Act. The announcement — which fell symbolically on April 20, the international cannabis celebration known colloquially as 4/20 — represents a major shift for Democrats, according to a CNBC report.

Schumer’s bill would reportedly remove cannabis from the CSA’s list of controlled substances, giving states a clear path for moving forward from federal prohibition at their own discretion. The bill would nix punishments for the plant at the federal level and encourage more efforts toward legalization and normalization. If passed, Schumer said the bill would also boost funding for women- and minority-owned cannabis companies.

“The time has come to decriminalize marijuana. My thinking – as well as the general population’s views – on the issue has evolved, and so I believe there’s no better time than the present to get this done. It’s simply the right thing to do.” — Schumer, in a statement

The bill will likely see some bipartisan support in the GOP-controlled Senate but is expected to face heavier opposition in the more conservative House of Representatives. And — despite the nation’s top cop Jeff Sessions‘ personal vendetta against cannabis — even President Trump may be prepared for major cannabis reforms, having recently struck an agreement with Colorado Sen. Cory Gardener (R) supporting states rights and a federalism-based solution for the disconnect between state and federal cannabis laws.

Meanwhile, a former congressional leader has also announced a change of heart. John Boehner, the former Republican House Speaker, announced earlier this month that he was joining the board of directors for a New York-based cannabis corporation. 

During that announcement, Boehner also said that “my thinking on cannabis has evolved” — the same phrase used by Schumer this week in announcing his pivotal legislation. Whether or not this sentiment will become more prevalent in the months to come remains to be seen, but it appears that politicians are beginning to grasp the fact that cannabis reforms are more popular among voters than they are.

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McConnell’s Bill Would Normalize the Hemp Industry

4/20/2018

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Last week, Senate Majority Leader Mitch McConnell (R-KY) took to the chamber floor and laid out his case for the Hemp Farming Act of 2018, calling hemp a cash crop for the nation’s struggling farmers, a modernization of federal law, a “new spark” for the U.S. economy.

McConnell was also the driving force securing the language in the 2014 Farm Bill that has allowed states to create their own hemp pilot programs – of which 34 states have taken advantage, according to the National Conference of State Legislatures.

The new bi-partisan legislation would effectively codify the language in the Farm Bill while allowing hemp farmers to access federal funding for research and protecting farms under the Federal Crop Insurance Act.

“The results of [the pilot programs] have been extraordinary,” McConnell said during his remarks introducing the legislation, explaining that in his home state hemp is being used for hempcrete and home insulation, its extracts researched for health benefits, and it’s become an ingredient in beer. The industry, McConnell said, created 87 jobs in Kentucky last year and more than $16 million in revenues.

Sen. Ron Wyden (OR), the Democratic co-sponsor, called McConnell’s support for the reforms “a milestone.” He said the measure lifts a federal restriction that is “anti-farmer,” “anti-consumer” and “anti-common sense.”

“This industrial hemp restriction really, in my view, is working needless hardship from sea-to-shining-sea,” Wyden said on the Senate floor, noting that hemp products can be purchased in major U.S. supermarkets but they are cultivated and processed outside of the country. “… Our farmers ought to be able to grow it.”

The current policy, Wyden contended, is “somehow based on the idea that hemp is a dangerous drug” and has led to handcuffed farmers and diminished consumer options.

“The only thing you are going to accomplish [by smoking hemp] is wasting your breath, wasting your time and wasting lighter fluid,” he explained. “This misguided policy of treating hemp like it is some kind of perilous, imminent threat to the American people is, I think, a mistake.”

McConnell noted that there is a burgeoning community of young farmers in his state “with genuine enthusiasm about what [hemp] could mean to help reinvigorate a rural economy in Kentucky that is not what it used to be.”

On Monday, the Senate invoked Rule 14 – a procedural move allowing the measure to skip the committee process – effectively fast-tracking the bill, according to a Hill report. Using the move doesn’t always guarantee that a bill will make it to the floor to a vote and McConnell’s office told the Hill that they didn’t have guidance or an announcement about when, or if, the measure would get a vote.

A field of young hemp plants photographed on a sunny day. Photo credit: Lesley L.

In a statement, Hemp Industries Association Executive Director Colleen Keahey said the reforms are “critical to the advancement of hundreds of farmers and stakeholders that the HIA represents.”

The group said the measure would allow U.S.-grown hemp to gain organic certification from the Department of Agriculture’s National Organic Program (which already recognizes certified organic Canadian hemp products); protect interstate commerce; normalize financial services; ensure water rights for hemp farmers; and advance research opportunities.

Moreover, the organization says the bill would protect “the legality of production and consumption of the diverse array of hemp products,” including CBD.

The HIA is currently locked in litigation with the Drug Enforcement Agency over their move to classify CBD under the federal definition of “marijuana,” therefore a Schedule I drug.

Paul Armentano, deputy director for the National Organization to Reform Marijuana Laws, disagrees with the position of the HIA, pointing to the policies of the DEA, Food and Drug Administration, and National Institutes for Drug Abuse that treat CBD as Schedule I substances.

“The McConnell legislation does not change this fact,” Armentano wrote in an email, noting the HIA lawsuit. “The DEA further contends that it possesses regulatory authority of CBD extracts, including in instances where CBD was ostensibly derived from hemp.”

The bill defines hemp as “the plant Cannabis sativa L. and any part of that plant, including the seeds thereof and all derivatives, extracts, cannabinoids, isomers, acids, salts, and salts of isomers, whether growing or not, with a [THC] concentration of not more than 0.3 percent on a dry weight basis.” Products that meet this definition would be removed from the Controlled Substances Act, according to the bill.

None of the bill sponsors – McConnell, Wyden, Sen. Rand Paul (R-KY), or Sen. Jeff Merkley (D-OR) returned requests for clarification on the CBD issue. However, in 2014, McConnell told the Lexington Herald-Leader that he was frustrated the DEA was using “its finite resources to stymie plainly lawful hemp pilot projects” while the state deals with an opioid epidemic.

In an interview with FoodNavigator-USA, Eric Steenstra, president of Vote Hemp, said the Majority Leader is “making it very clear that CBD is included in the definition and will be part of the industry.” Vote Hemp and the Hemp Business Journal estimate the total retail value of hemp products sold in the U.S. in 2016 was $688 million. The analysts projected the market would grow at a 22 percent compound annual growth rate through 2020. The analysis found personal care products comprised 24 percent of the market in 2016 ($163 million), followed by CBD, food (19 percent, about $130 million each), industrial applications (18 percent, $125.5 million), consumer textiles (14 percent, $99.5 million), supplements (4 percent, $26 million), and $14.4 million (2 percent) in other consumer products, such as paper and construction materials.

The report suggests that CBD will grow at a 53 percent annual rate.

McConnell told McClatchy he would give the bill “everything we’ve got.”

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Epidiolex Receives Initial Recommendation from FDA Committee

4/20/2018

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Epidiolex, a CBD-based pharmaceutical medication created by GW Pharmaceuticals in the United Kingdom, has received a unanimous recommendation from an FDA advisory committee. The committee’s recommendation sets Epidiolex up to potentially receive FDA approval for U.S. distribution by June, CNN reports.

According to GW’s website, Epidiolex is a “proprietary oral solution of pure plant-derived cannabidiol.” It was developed to treat epilepsy syndromes including Dravet syndrome, Lennox-Gastaut syndrome, Tuberous Sclerosis Complex, and Infantile Spasms. If approved, it will be the first cannabidiol-based medication available for prescription use in the U.S.

“We’re obviously very pleased by the unanimous recommendation in support of the approval of Epidiolex. It’s a very important milestone in the approval process.” — Justin Gover, CEO of GW Pharmaceuticals

Pharmacist Shauna Garris told CNN that she’s not sure whether Epidiolex will live up to the “publicity” and “hype” surrounding the product, but that the medication is working somewhere between “fairly” and “very well.” In the report, Garris warned that “There have been side effects associated with it, and it appears a lot of the side effects were in conjunction with other medications.”

Philip Gattone, president and CEO of the Epilepsy Foundation, told NBC News, “Epidiolex represents hope for the many individuals living with intractable seizures and rare epilepsies, who every day face incredible challenges and disabling seizures, and live with the continual risk of serious injury and death.”

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Top Dry Herb Vaporizers of 2018

4/19/2018

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April 20th is a great day for high-elevation adventures, couch-surfing, and other fun activities. Whether you’re medicating, avoiding carcinogens or simply looking to add a little variety to your cannabis consumption repertoire, nowadays there are plenty of great dry herb vaporizers that can help you get into the right mindset. Here are some of the top dry herb vaporizers we recommend checking out:

Storz & Bickel Volcano

Volcano Dry Herb Vaporizer

Storz & Bickel’s Volcano is one of the best-known vaporizers in existence. In the 15 years since its introduction to the American market, the Volcano has become a modern classic. Many cannabis consumers have fond memories of the Volcano and having one in the home can make for excellent conversation and cannabis storytelling.

The Volcano is a desktop model, designed for precision and reliability rather than portability. The Volcano vaporizes through a convection process, moving filtered temperature-controlled air through a mesh screen and over the ground cannabis instead of by direct contact with a heated surface or chamber. The convection process has many advantages, including full and even extraction of the cannabis and no burning of plant material due to contact with hot metal. Users of the Volcano can even tune the temperature to within degrees to extract specific cannabis compounds from every bowl of ground herb.

The Volcano collects the vapor cloud in a surgical-grade silicone balloon bag. A carefully designed one-way valve prevents waste between multiple users or inhales. The bag method of vapor collection makes the Volcano uniquely suited to group use. Each bag is good for 50 to 100 uses and is easily replaced.

Vapeworld.com offers the Volcano among its many vaporizers, start browsing or buy it here.

Pax 3

Pax 3 Dry Herb Vaporizer

The Pax 3 is a simple and sleek vaporizer. The well-designed body of the vape is the perfect balance between portability and power. Cannabis consumers looking for a one-stop purchase to handle precision vaporizing of both plant matter and concentrates in a slim, fashionable package would be very happy with the Pax 3.

The Pax 3 heats from cold to ready faster than any comparable vaporizer, in just 22 seconds. The Pax will even vibrate when it’s ready, allowing you to focus on your activity instead of your vaporizer during a session. The operation is simple and easy to learn, loading either ground plant or concentrate into the bottom and pushing on the top mouthpiece to start vaping.

A mobile app offered by Pax allows you to precisely control the operation of the vape, including 60+ temperature settings. All of these features are also backed by a 10-year limited warranty, allowing users of the Pax 3 to feel secure in their purchase. The Pax 3 is truly worthy of its best-selling reputation.

Purchase the Pax 3 at Vapeworld.com or browse through comparable offerings here.

Vapium Summit+

Vapium Summit+ Dry Herb Vaporizer

The Vapium Summit+ brings to mind a backcountry GPS. This rugged, splash and dustproof vaporizer is made for users who don’t want to baby their vaporizer as they go about their day. Whether you’re a backpacker, a cyclist, a skateboarder or just less than careful, you can have peace of mind in your pocket with the durable Summit+.

The Summit+ doesn’t skimp on features, either. On top of its IP54 rating for a splash and dust-proofing, the Summit is rated to be used from zero to 176 degrees Fahrenheit, allowing you to vape in the Mojave or in a snow cave. The Summit also has a specially designed and laser-welded vaporizing chamber and air path, allowing for very even vaporization of plant matter. The 3300 mAh battery allows for extended usage between charges and the vibration notification lets you focus on your surroundings instead of staring at an LED screen while you wait for the vaporizer to heat.

If durability and ease of use are your primary concerns, consider the Summit+ on your list. Read more or purchase at vapium.com.

Cloudious9 Hydrology9

Cloudious9 Hydrology9 Dry Herb Vaporizer

There are very few liquid-filtered vaporizers on the market. The few that offer water filtration offer it as a kludged-on addition. Cloudious9 set out to solve that problem by designing the Hydrology9 from the ground up to be a water-filtered vaporizer. Not only is the Cloudious9 well-designed to be functional, but it’s also beautiful.

The Hydrology9 is made from high-grade aluminum and borosilicate glass. It feels heavy like quality equipment should. The glass mouthpiece and body is specifically designed to be easy to clean. The Hydrology9 is also portable–a specially designed ball valve prevents the water from leaking out, even when rotated through 360 degrees. This vaporizer has 5 levels of temperature control and a plant material stirrer built into the bottom cap, where cannabis or other vape-ables are loaded. Several different colors of light from LEDs enhance the beauty of the piece and light the water to indicate status.

Hydrology9’s attention to usability and design as well as the cool and refreshing water-filtered vapors make this vaporizer a standout. Read and see more or purchase now at cloudious9.com.

Arizer Solo II

Arizer Solo II Dry Herb Vaporizer

Arizer’s Solo II is an updated design inspired by the original, the Arizer Solo. The Solo II boasts improved heat-up times, a larger battery charge and improved airflow design. The Solo II also has a backlit LED display that allows you to fine-tune the temperature of the vaporizer for precision extraction.

The glass tube system is one of the Solo II’s primary selling points. Plant matter loads directly into the bottom of the mouthpiece, which slots into the top of the dry herb vaporizer. Once heated, the vapor only ever contacts glass, making for a clean taste that contains only cannabis and no plastics. This also makes the piece easy to clean as the only part that becomes dirty is the glass tube, which can be quickly soaked in alcohol. Best of all, the 14mm glass tubes will fit onto many water pipes, making for a quick conversation to water filtration with a cheap and simple glass adapter.

If you’re seeking a vaporizer that meets and exceeds the bar for battery life and heating times while also playing well with water pipes, check out Arizer’s Solo II on Vapeworld.com.

Davinci IQ

dry herb vaporizers

The Davinci IQ is a smart, well designed dry herb vaporizer. It offers several different vaping modes, including both precision temperature mode and a “smart” temperature range mode. It has the feel of a quality vaporizer. Like the Pax, it offers a mobile app to help you personalize and control the vaporizer.

The battery of the Davinci IQ is removable and replaceable, which is ideal in any electronic device you plan to use for years. This feature, as well as many of the design decisions made by Davinci, speaks to the vaporizer’s quality. The vape heats up rapidly and functions smoothly. The plant matter chamber is a good size for sharing in a small group and the Davinci looks easy to clean.

If you like the idea of a Pax 3 but you want a vaporizer with a built-in numerical display so you don’t need to take our your phone on the fly, check out the Davinci IQ.

Product photography by Patrick Beggan

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Photograph of a sunset view of Seattle, Washington with Mount Rainier in the background.

Washington State Updates List of Allowed Pesticides

4/19/2018

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The Washington State Department of Agriculture has updated their list of pesticides allowed for cannabis production. Two products — AzaMax and Evergreen Pyrethrum Concentrate — were removed based on advice from the Oregon Department of Agriculture, who said the products contained ingredients not listed on their labels.

24 pesticides were removed from the list because their labels did not meet WSDA regulations or because product registrations for distribution were voluntarily withdrawn. Growers can finish using their supply of the 24 removed pesticides but are not allowed to buy more.

43 options were added to the list of allowed pesticides. For the first time, products with the active ingredients Acetic acid, D-Limonene, Isaria fumosorosea strain FE 9901 and Linseed oil can be found on the list, but most additions contain active ingredients already being used across the state.

Pesticides continue to be a topic at the forefront of discussions in the cannabis industry. Just this week, Ziggy Marley penned an article in Rolling Stone that calls on consumers to hold growers accountable and suggests that cannabis cultivation should be entirely pesticide free.

“As marijuana becomes industrialized, we need to stay vigilant about the way companies use harmful pesticides to maximize and safeguard their financial investments,” wrote Marley. “We have seen this story before: as industries get larger and larger, and profits grow and grow, the welfare of consumers becomes secondary to the profits of those industries. If this were to happen to cannabis, it would defeat the spirit of the plant itself.”

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Looking up the walls of a glass office building.

SEC Filing: MassRoots in the Red, ‘Need to Raise Additional Funds to Continue Operations’

4/19/2018

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Cannabis tech company MassRoots reported a $44 million net loss on revenues under $320,000 in 2017, according to its annual U.S. Securities and Exchange Commission filing outlined by The Cannabist. More than $22 million of the losses equaled the value of stock-based compensation to former employees, board members, and business consultants.

The company has also missed Internal Revenue Service payments and SEC reporting deadlines.

“We do not believe MassRoots has sufficient capital to become cash-flow positive from operations. We expect to need to raise additional funds to continue to fund operations.” – MassRoots officials in the Apr. 16 filing

The filing also shows it added a blockchain subsidiary called MassRoots Blockchain Technologies. According to a Coindesk report, the company has moved to sell Simple Agreements for Future Tokens and collected more than $900,000 between September and January for that purpose. Of those funds, $25,000 was invested toward the development of “blockchain-powered features and utilities.” The filing shows that MassRoots users would be able to earn their tokens through writing reviews and those tokens would be initially used to purchase products and services within the MassRoots system.

As of Dec. 31, 2017, the company’s accumulated deficit was about $74.3 million with a stockholder deficit of $11.4 million. MassRoots also owes the federal government $1.6 million in payroll tax liabilities, which officials said should be settled by June 30.

Last year, the company was embroiled in a power struggle which saw founder Isaac Dietrich ousted, then reinstalled, as CEO. The scandal killed a deal the company had to acquire CannaRegs, which reportedly played a role in Dietrich’s initial removal.

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Study: Negative Cognitive Effects of Cannabis on Young Brains Diminish After 72 Hours

4/19/2018

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According to a new study published in JAMA Psychiatry, “continued cannabis use may be associated with small reductions in cognitive functioning” on young brains but those deficits “are substantially diminished with abstinence.”

The study was a meta-analysis of 69 cross-sectional studies of 2,152 cannabis users and 6,575 comparison participants. The researchers found “a small but significant overall effect size for reduced cognitive functioning in adolescents and young adults who reported frequent cannabis use. However, studies requiring abstinence from cannabis for longer than 72 hours had a very small, nonsignificant effect size.”

“… Results indicate that previous studies of cannabis in youth may have overstated the magnitude and persistence of cognitive deficits associated with use. Reported deficits may reflect residual effects from acute use or withdrawal.” – Association of Cannabis With Cognitive Functioning in Adolescents and Young Adults: A Systematic Review and Meta-analysis, Apr. 18, 2018, JAMA Psychiatry

The research concluded that, overall, the cognitive functioning of frequent cannabis users was reduced by one-third of a standard deviation compared with non-frequent marijuana users, which according to Cobb Scott, the lead author of the study, is a relatively small effect size

Scott, an assistant professor of psychiatry at the Perelman School of Medicine at the University of Pennsylvania admitted to CNN that the team was “surprised … that the effects were not bigger” than the analysis found, adding that the “clinical significance of a quarter of a standard deviation is somewhat questionable.”

“As attitudes change about cannabis use and cannabis use becomes a little bit more accepted in terms of policy and government regulation and medical cannabis use increases, I think we need to have a real understanding of the potential risks and benefits of cannabis use.” – Scott to CNN

The research could help dispel the prohibitionist arguments that long-term cannabis use will have lasting detrimental effects on cognitive functioning.

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Belfast has a very attractive shopping street which leads down to the harbor.

Maine Legislature Approves MMJ Expansion; Gov. Veto Expected

4/19/2018

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The Maine Senate has joined the House in passing legislation to expand the state’s medical cannabis program by increasing the number of dispensaries; allowing caregivers to serve more patients, hire employees, and run storefronts without fear of legal crackdown; and allowing more people to qualify for a medical cannabis card, the Portland Press Herald reports.

Who would be able to access the program under the new regime: Just about anyone, as medical providers would be allowed to certify a patient for any medical reason; eliminating the strict qualifying condition list. Parents with children who could benefit from medical cannabis treatment would only have to obtain one doctor recommendation instead of two under the current law.

Caregivers could use their 30-plant limits to serve as many patients as their harvest allows. Currently, registered caregivers can serve just five qualified patients at one time. They would also be allowed to set up storefronts and hire as many workers as they need – instead of just one. Those storefronts would need to employ the same security features as dispensaries.

Under the bill, caregivers would be required to submit to unannounced inspections and would allow municipalities to ban cannabis operations.

The state would license six more dispensaries; bringing the total to 14. The dispensaries would be allowed to operate as for-profit companies instead of their current non-profit status. Dispensaries and caregivers would also have to implement a seed-to-sale tracking system.

Gov. Paul LePage will likely veto the legislation. LePage, who currently has the recreational cannabis implementation bill on his desk, wants the recreational and medical systems to be merged and has promised to veto the recreational measure until he gets his wish. The medical cannabis bill approved by the Legislature neither merges the two programs nor increases the program tax rate.

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Canada’s CannaRoyalty Continues California Push, Reaches Agreement to Acquire FloraCal

4/19/2018

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Canadian cannabis product and brands company CannaRoyalty is continuing its expansion into California, announcing that it has entered an agreement to acquire 100 percent of Sonoma County’s FloraCal Farms for $1 million in cash and 3,508,772 CannaRoyalty shares on close of the deal, with an additional $3 million in cash and the same number of additional shares over three years.

FloraCal was founded three years ago, generating $6.4 million in fiscal year 2017, amounting to $3.2 million of earnings before interest, taxes, depreciation, and amortization. The flower products command $17 per gram. The deal, once finalized, will allow CannaRoyalty to license the strains worldwide.

“FloraCal is truly unique. The rare combination of product consistency, premium pricing, authentic brand, and resoundingly positive feedback from our dispensary partners and California consumers, positions it well to be a future global cannabis brand. We see its success in the discerning California market as evidence that branded flower that is truly differentiated occupies an important place in the cannabis industry.” – Marc Lustig, CannaRoyalty CEO in a press release

Drew Duval, FloraCal CEO, said the merger will allow the brand to develop to a size the company couldn’t achieve on their own.

This is the fourth California cannabis company acquired by the Canadian firm in the last calendar year. In 2017, CannaRoyalty acquired distributor Alta Supply and Kaya Management Inc., the exclusive manufacturer and license holder for Bhang brand vaporizer products. Just last month, the Ottawa-based firm acquired River Distribution which holds both medical and recreational distribution licenses in California.

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Bi-Partisan Bill Would Make Clear Veterans Affairs can Study MMJ

4/18/2018

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A bi-partisan bill has been introduced in the House to make clear that the Department of Veterans Affairs has the authority to study medical cannabis. The measure was introduced by the House Veterans’ Affairs Committee ranking Democrat, Rep. Tim Walz, and Republican committee chairman Rep. Phil Roe.

In a press release, Walz notes that “22 percent of veterans report using cannabis as a safer and more effective alternative to opioids and drug cocktails currently prescribed by the VA for medical conditions such as [post-traumatic stress disorder] and chronic pain.” Another 92 percent of veterans support medical cannabis research, he added.

“While we know cannabis can have life-saving effects on veterans suffering from chronic pain or PTSD, there has been a severe lack of research studying the full effect of medicinal cannabis on these veterans. That is why I am so proud to introduce this legislation. Simply put, there is no department or organization better suited to conduct this critically important research than VA, and there will never be a better time to act.” – Walz in a statement

Roe, a physician, said he is “keenly aware of the need to look for opioid alternatives to treat patients’ chronic pain” but stopped short of supporting the ability for VA doctors to recommend medical cannabis until there is “sound science behind whether or not medical cannabis is an effective treatment.”

“Since serving as Chairman of the House Committee on Veterans’ Affairs, I’ve heard from many veterans, both with physical and invisible wounds, who believe medical cannabis could benefit them. This is why I support the department researching cannabis just like any other drug to see if this alternative therapy would truly benefit patients.” – Roe in a statement

The bill comes months after former VA Secretary David Shulkin wrote a letter to Walz informing him that “federal law restricts VA’s ability to conduct research involving medical marijuana or refer veterans to such research projects.”

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MMJ Fails to Make South Dakota Ballot

4/18/2018

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South Dakota voters will not have the opportunity to vote on legalizing medical cannabis in the state after Secretary of State Shantel Krebs said the petition failed to gain enough valid signatures. The petition submitted had 15,157 signatures total but a random sampling found just 62.48 percent were valid.

The office determined that just 9,470 signatures were valid – short of the 13,871 required to put the issue to voters in November.

According to a press release from Krebs’ office, a rejected petition cannot be challenged to the Secretary of State’s Office; however, the denial could be challenged in circuit court.

This is the second election cycle that South Dakota cannabis activists have been pushed from the ballot. In 2016, a notary error forced an adult-use question from the ballot.

The medical cannabis law would have provided access to the program to patients with 13 specific qualifying conditions, allowed home grow and possession up to 3 ounces with a physician recommendation.

According to the Secretary of State’s Office, there were two adult-use petitions circulated in the state but neither was submitted by the deadline. One would have legalized cannabis possession without a tax-and-regulated system, while the other would have created a broad recreational cannabis industry.      

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A man stands in front of car headlights while holding a crowbar.

Washington Break-Ins Reinforce Cannabis Banking Concerns

4/18/2018

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With a surplus of cash and cannabis products always on hand, dispensary locations are prime targets for robbery. Washington state saw a number of cannabis shop break-ins in 2017 and the trend has continued in 2018, reinforcing concerns about having a cash-only industry and the lack of banking options for cannabis companies.

On April 5, the front door of retail shop The Highway Seven in Tacoma was smashed, but owners believe that security bars and the activated alarm scared away potential thieves. In late March, four thieves rammed a stolen Ford Taurus into the front of Have a Heart’s Greenwood location, pillaging shelves and making off with an unknown quantity of products. In September 2017, armed robbers entered THC Connections in Everett, WA, rattling employees and making off with cash. Just five days earlier, at a retail cannabis shop in White Center, an employee was shot and injured during a robbery. Three shops were broken into in Kitsap County in August 2017, but thieves were caught after a police chase.

Few banks risk working with cannabis

The Washington Department of Financial Institutions (DFI) regulates state-chartered banks in Washington. According to Roberta Hollinshead, Director of Banks at the DFI, there are only six state-chartered financial institutions — three banks and three credit unions — that will open cannabis accounts in the entire state.

“Cash-only businesses are high risk,” said Hollinshead. “Banks have to add additional resources to their compliance departments for monitoring cash-intensive and high-risk businesses. This is likely a deterrent for some financial institutions.”

Hollinshead says the DFI is open to solutions from banks or the Washington State Liquor and Cannabis Board, but uncertainty at the federal level will continue to be a problem.

Salal Credit Union in Seattle announced in 2014 they would open accounts for cannabis businesses. Today, they have three hundred accounts and are still accepting applications for new accounts in spite of the recent federal policy changes.

Carmella Houston, Vice President of Business Services at Salal, said, “We have fairly conservative requirements to open accounts; businesses must be professionally managed and above board in their business practices as well as have good credit. There is also an extra cost when you are a cash-only business, so this may be an extra expense some don’t want to incur in addition to the on-going monitoring that is part of our compliance program.”

Numerica Credit Union in Spokane County is another banking institution working with the cannabis industry. However, they also charge large fees due to the labor-intensive nature of cash-only businesses and accounts are limited to five million dollars. Numerica does not allow accounts for retail cannabis shops and is only serving producers/processors where their branches are located. Additionally, services like credit and debit cards, online bill pay, mobile banking, and access to Numerica financial products are still restricted for cannabis accounts.

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Antigua and Barbuda Legalizes Medical Cannabis

4/18/2018

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Antigua and Barbuda’s Prime Minister Gaston Browne has announced that the Caribbean nation will legalize medical cannabis use, the Daily Mail reports. Browne said that prohibition was not for the health and well-being of users, rather to serve the “racist, political, and economic interests of the global powers at that time.”

Antigua and Barbuda made moves to decriminalize cannabis last February.

“The prohibition and demonization have led to Rastafari being brutalized and castigated by police and other Government authorities, because of the utilization of the plant Cannabis Sativa. It is in this context, and now that my Government has liberalized the legislation regarding cannabis, and is moving towards the medicinal and other uses of this natural substance, that I have issued a ‘genuine’ apology to the Rastafarian Community.” – Browne, in a statement, via the Daily Mail

Under the decriminalization plan, citizens can possess up to 15 grams for personal use and grow up to four plants.

“Now the Government is going one step further, arranging for this agricultural product to be grown under certain conditions and eventually turned into useful pharmaceuticals. … We would strongly encourage other Commonwealth Heads of Government to follow the lead of Antigua and Barbuda and Canada which are both placing people’s health before politics and profit by legalizing and regulating the drug market.” – Browne, in a statement

Antigua and Barbuda joins Jamaica among Caribbean nations to have legalized cannabis for medical use.

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A single droplet of water hangs suspended from the underside of a grass blade.

ScottsMiracle-Gro Purchases U.S.’s Largest Hydroponic Distributor

4/18/2018

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ScottsMiracle-Gro is set to acquire Sunlight Supply Inc., the nation’s largest hydroponic distributor, which would see annualized sales of about $600 million and directly serve more than 1,800 hydroponic retail stores in North America.

In 2016, Scotts acquired a 75 percent stake in Dutch hydroponics firm Gavita Holland BV in a $136 million deal.

According to a press release, the transaction will “greatly enhance” the ability of Scotts wholly-owned subsidiary Hawthorne Gardening Company “to meet the needs of the rapidly evolving hydroponics products marketplace.”

Hawthorne owns Gavita, Botanicare, Can-Filters, and General Hydroponics. In 2017, Hawthorne’s sales were about $290 million.

Jim Hagedorn, Scotts chairman and CEO, called the transaction “game-changing.”

“Combining Hawthorne’s industry-leading product portfolio with Sunlight’s unparalleled distribution capabilities and complementary portfolio will benefit consumers and all stakeholders in the hydroponic marketplace. It reinforces our confidence in the future of this industry and takes Hawthorne to a new level as a business with unique competitive advantages.” – Hagedorn in a statement

In fiscal year 2017, Sunlight recorded sales of $460 million and earnings before interest, taxes, depreciation and amortization (EBITDA) of approximately $55 million.

“The pending acquisition of Sunlight Supply now gives us the green light to aggressively optimize the businesses we’ve acquired and create a more efficient business that better serves the needs of consumers and our customers and drives value for our shareholders.” – Hagedorn in a statement

The deal, which is expected to close June 1, is worth $425 million in cash and $25 million in Scotts equity.

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