West Virginia House Passes Bill to Increase MMJ Licenses

West Virginia’s House of Delegates has passed a measure that would increase the number of cultivators, processors, and dispensaries allowed to operate under the state’s medical cannabis program, the Charleston Gazette-Mail reports. The bill does not include allowing patients to access raw flower products.

The measure would allow businesses to vertically integrate – allowing them to act as grower, processor, and dispensary – and allow patients to pre-register for the program before it comes online July 2019.

What does the bill do, specifically?

  • Increases the number of permits the Bureau of Public Health can issue from 10 each for growers and processors to 50, and the number of dispensary permits from 30 to 165.
  • Changes patient certification provisions to allow medical professionals to determine whether a past or current medical condition could be a contradiction from medical cannabis use and includes language to determine if a patient is experiencing “serious pathophysiological discomfort, disability or dysfunction that may be attributable to a serious medical condition and may possibly benefit from cannabis treatment.”

West Virginia‘s Medical Cannabis Advisory Board has requested that the bill be amended to include flower access and Republican Delegate Riley Moore indicated the Senate could add that amendment, but it could make for a tighter vote once returned in the House.

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IndicaOnline Streamlines the Marijuana Industry with Powerful Cannabis POS Software

Cannabis is becoming a fast-paced industry. Customers expect to be in and out of a dispensary in a quick and efficient manner. To help streamline new member sign-ups, order processing, new product additions, inventory management and reporting, IndicaOnline POS software can make a world of difference.

How IndicaOnline Simplifies and Helps Dispensary Operations

Marijuana POS software can be used to simplify day to day operations. It will help your business become more efficient and allow staff to focus on customer service. Installing marijuana POS software can significantly streamline operations and provide a high degree of organization for cannabis retailers.

Easy check in – IndicaOnline POS software allows for fast and easy new customer sign-ups and quick purchases. You are able to quickly find a customer’s profile with the simple swipe of a membership ID. When a customer returns, you are able to greet them and complete their order without having to enter any keys to find their account.

Digital signage – Make it easy for customers to see what your offering. IndicaOnline’s Apple TV application syncs to digital displays to display things like YouTube videos, ad campaigns, products for sale, and customer queues.

Online automation – Having up-to-date menus and product quantities is important to any cannabis business — ensuring that your inventory is displayed correctly means that more orders will be fulfilled. POS software integrates your storefront with your online presence.

Pricing and promotions – Bulk price changes and promotions allow you to quickly adapt to changing competitors and take advantage of special promotions. The ability to easily update costs and prices is one of the most important business and marketing practices for any successful company.

Inventory management – New products are introduced to the cannabis industry almost daily. As one of the fastest growing industries, it is important to be able to seamlessly add new products into your line to stay relevant and up to date. Marijuana POS software keeps track of inventory levels and sends notifications when quantities or weights are low.

Cannabis compliance software integration – A time-saving feature that can help dispensaries stay on top of paperwork is the Integrated ‘location/state’ reporting systems. Automated reporting systems will keep track of inventory and sales numbers to help dispensaries remain compliant to local and state laws. IndicaOnline software has the features to connect directly to METRC.

Onboarding employees – Dispensary POS software makes it easy for new employees to get trained and ready to take customers orders. Touch screen tablets and a user friendly interface makes it easy for employees and customers to navigate products and place orders.

Multi location coordination – If you have a chain of dispensary locations, POS software will help to keep everything organized for both your company and your customers. Customers are able to enter into any location and have all their information and orders readily available.

Cannabis POS software is a powerful tool that helps to jump-start a new dispensary and keep it growing in a compliant and organized manner. Security, pricing, and simplicity are all key factors to keep in mind when choosing which POS software to use. IndicaOnline can be used with intuitive iPad software and can be fully integrated with popular online directories such as WeedMaps.

For more information, visit the IndicaOnline website.

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Sheets of printed $100 bills laid out on a flat surface.

Report: Cannabis Industry Investments Hit $1.23B In First Weeks of 2018

According to a Viridian Cannabis Deal Tracker report outlined by Bezinga, investments in the cannabis space have increased 600 percent over the first five weeks of 2018 compared to the first five weeks of 2017.

In the first five weeks of 2017, cannabis industry investments reached $178 million, while this year they have already swelled to $1.23 billion, according to the report. The 65 capital raises so far this year more than double last year’s totals.

  • The average size of the raises was $19 million. In 2017, the average raise over the first five weeks was $5.9 million
  • 75 percent of the raises went to public companies, a 4 percent increase over last year.
  • Private firms raked in $300 million over the first five weeks – a six-fold increase over the first five weeks of last year.
  • 6 percent of these raises were equity-backed, compared to 70 percent from last year
  • Nine raises hit more than $50 million

Viridian Capital Advisors’ Vice President Harrison Phillips indicated that the investments have been largely driven by Canadian companies as the nation moves toward federal cannabis legalization – expected this summer.

“Historically, it was mid-to-high-teens; today we are seeing far lower interest rates, especially for companies with a long operational histories or strong balance sheets. We’ve seen some debt-back raises now done with interest rates in the mid-to-high-single digits. That shows material improvement in the comfort levels of the investors getting into the space.” – Phillips to Bezinga

The largest investments were made in cultivation and retail (about $700 million) followed by investment firms (about $320 million), and real estate (about $90 million). Investments in biotechnology and pharmaceutical companies – which led the way last year – has shrunk by about half.

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New South Wales, Australia Streamlines MMJ Process for Patients

New South Wales Health Minister Greg Hunt has “taken a machete” to the federal medical cannabis regulations in order to allow “direct and immediate access” to the program for patients, the Australian Broadcasting Company reports. The changes will take effect in the coming weeks.

“Where the doctors say it is required, we’ll make sure it is available in a matter of days. New South Wales is now the national leader — we have had tremendous discussions with Tasmania and Victoria, and so I am hopeful that will make progress with them very shortly — but the benchmark has been set here and this is about saving lives and protecting lives, it’s about giving people the capacity to go through their treatments.” – Hunt to ABC

Cannabis is still considered a “medication of last resort” by many NSW physicians, but the Medical Cannabis Council applauded the move to streamline the process.

Minister for Health and Medical Research Brad Hazzard indicated that the government had recently spent AUS$6 million on an advisory service to assist doctors in the prescribing process.

“When people have got that diagnosis of cancer and they are having the treatment, they are having the chemo, they obviously often feel very sick, nauseous, vomiting. This will allow a very fast response to allow them to get access to what can be … certainly a medicine that can assist you with the nausea and the vomiting. It also can assist children who suffer fits from a range of illnesses.” – Hazzard to ABC

Under the rules slashed by Hunt, it could take months for a patient to access the program.

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Brittny Anderson & Brian Farmer: Encouraging Sustainable Cannabis

Brittny Anderson and Brian Farmer are co-founders of the Cannabis Conservancy, a sustainability certification group that helps consumers identify cannabis growers and producers who use responsible agricultural practices.

In this Ganjapreneur.com podcast episode, Brittny and Brian join our host TG Branfalt to talk about the founding and goals of the Cannabis Conservancy, the positive response they’ve seen from both growers and consumers, new markets opening up in Canada and the U.S., how they are expanding cannabis research and education through the Conservancy, and more!

You can listen to the full interview session through the media player below, or scroll down to read a transcript of this week’s Ganjapreneur.com podcast episode.


Listen to the interview:


Read the transcript:

TG Branfalt: Hey there. I’m your host, TG Branfalt, and you are 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 Brian Farmer, co-founder and director of auditing and certification services, and Brittny Anderson, co-founder and director of operations for the Cannabis Conservancy, which provides sustainability certification to legal cannabis organizations that adhere to good agricultural practices free of harmful chemical inputs, utilize waste reduction methods, are energy efficient and conserve water. How are you guys doing this morning?

Brittny Anderson: We’re doing really well. Thank you.

Brian Farmer: Great, Tim.

TG Branfalt: Again, I’m thrilled to have you guys on. There’s a lot to talk about. I don’t think the idea of energy usage and water conservation really comes up enough in the conversation of broad legalization. But before we get into the details, why don’t you guys tell me a little bit about yourself and how you end up founding this organization?

Brittny Anderson: Yeah, absolutely. Thank you. So the Cannabis Conservancy started, Jacob, one of our other co-founders and I, we were down in Portland. So Jacob and I did our master’s together. And I’m up in BC. He was in Florida. And we had the opportunity to meet in Portland. And that was just as Colorado had announced that they were going to legalize adult-use cannabis. So we were talking about it and we could really see these two paths that the industry could follow, and one being the path of industrial agriculture, which is in my opinion, a very unsustainable model. It contributes to climate change. It strips the soil of nutrients. It’s draining aquifers. It’s contributing to biodiversity loss. And we’re also spraying chemicals on our crops.

And so then the other path that we were talking about is this nurturing holistic model where nutrients are cycled, carbon sequestered, soils are rebuilt, biodiversity is enhanced. And we really wanted to encourage the cannabis industry to take that second path, a sustainable path. So what we decided to do is, we wanted to help the industry move in that direction, so we started to develop our sustainability standards. We drew from national and international standards and certification bodies, such as ISO … organics, Canadian organic standards, and then we also included criteria for resource consumption such as energy and water, waste reduction, so taking some principles from the philosophy of zero waste. And then Brian and Jonathan joined the Cannabis Conservancy as co-founders, and then with their input we incorporated a lot of quality management into the standards as well. And so that was sort of version one and now we’re up to version three.

TG Branfalt: And how about you, Brian? How’d you end up linking up with the organization?

Brian Farmer: Well, I linked up through meeting Jacob Policzer, who’s one of the other co-founders. We were briefly involved in another effort to develop some standards, so we met through that. We both left that venture and this was as all of this was coming together, as Brittny described. So what I am bringing to this is a long history as a grower, but also I’ve been doing agricultural auditing at the international level for about 10 years, so I’ve done hundreds and hundreds of audits. So I’m kind of bringing that on the ground background to this standards venture that these guys had already started. So when I came in, we started codifying a lot of the processes, finalizing what the actual document that growers would get as they go through the certification process. So we were just tying up all those loose ends and making it real, so that’s how I got involved. And that was two and a half years ago, so time flies.

TG Branfalt: So tell me about developing these standards. I’ve read through them. They’re incredibly smart, comprehensive. They include a lot of really interesting policies, forward thinking policies, I think is the better word. Sort of walk me through the process of developing these standards and how they’ve evolved since you originally came up with them.

Brian Farmer: Well, as Brittny said, we wanted to use some of the standards that were already out there in a number of different areas in agriculture and sustainability. So we started with what already existed. And then what we are attempting to do, and I think we’ve done a good job at it, is make it cannabis specific. What the standard does is create what we call the seven pillars of sustainable cannabis production. And those are policy and implementation, how you deal with land in your infrastructure, your cultivation practices, how you deal with your harvest, curing, processing details. And then how you’re tracking energy, water, and waste, and how you’re attempting as a part of your operation to decrease the use of those, or at least in the initial stages, track that.

So with policy and implementation, basically what we’re trying to get folks to do is document their process so that as assessors, we can come in and properly see that what folks say they’re doing, they’re actually doing and there’s a record of it, and we can see that on the ground when we come in and do an audit. Land and infrastructure, that deals with how you are dealing with the land that you’re growing on. This applies to both those outdoor, sun grown growers up in Northern California. But it also applies to folks who are doing other kinds of cultivation, including indoor cultivation. The cultivation practices, again, it’s documenting, assessing your risks as a part of your whole cultivation process from seed or clone, to your final product that you’re putting into the market. So that includes basically, as you said, there’s a lot of detail in there. Every step of the process, assessing it, documenting it, and then having those records in place so that we can see that when we come to the farm or a larger grow operation and see that those things that you say you’re doing are actually being implemented.

And then for energy, water, and waste, what we’ve done is enable growers, producers, to use some of the different kinds of materials that we provide them to start learning how to track and dial in their water use, track the waste into and through and out of their system. And then how to track energy use, and this is especially important as so much of the industry is still inside and oriented toward industrial scale inside growing. And Brittny can talk a little bit about that as we move forward.

TG Branfalt: On your website you list bottom line principles. Can you describe what those are?

Brittny Anderson: Yeah. Our bottom line principles are really the seven pillars of sustainable cannabis production, so we have policy and implementation is one. Land and infrastructure is another. Cultivation practices, so that would be including your input, so thinking beyond organic. And then your energy, your water, your waste. And then harvest and processing.

TG Branfalt: You’re in Canada. You guys are on the verge of implementing an adult use federal policy. In the US, we’ve got California just went online. They have their own energy problems. I’ve read that legislation and that includes some language for water conservation and energy use and that sort of thing. But overall, do you think that as these laws are implemented in both Canada and the US, that they’re going far enough in addressing these principles?

Brian Farmer: Well, I think we’ll both answer that, but I’ll start. In short, no. I mean, as you say, there’s so many different contexts. Canada is one. Every state in this country is dealing with it in a little bit different way, so there’s no consistent way of addressing production and the values that people have around production and what those are going to be. You know, in general a lot of the things that exist so far have, in terms of compliance and production have focused on control of the product, traceability, security, issues around diversion, and not so much on the sustainability aspects of production. Some states have by default gone to using organic materials for pesticides and things like that. But there’s really no process of certifying, like through a third party certification system like we have. There’s no way of certifying any of that stuff, so people are scrambling to figure out how to do this in a consistent way. And one of the things that we provide is that consistent way of assessing this in a very broad, comprehensive way.

Brittny Anderson: Yeah. And in Canada, they’re actually … On January 20th is the deadline for Canadians to submit their input for the regulations. So they’ve drawn up a consultation paper, and it was in that consultation paper, sustainability essentially is completely overlooked. So I’m in the process right now of providing some feedback on that consultation paper. I think it’s really important, especially when we’re … The cannabis industry is quite old in some regards, but it’s also very new when we’re considering the legalized cannabis market. And so we really have an opportunity right now that we haven’t in other industries, to create a sustainable industry, really from the beginning. And so I think it’s the role of government to at least have baseline sustainability requirements, in turn further licensing.

So if they require all of the growers to meet certain thresholds, then we’re already going to be leaps and bounds above what other industries have. And then also creating a really even playing field for all producers. And I’m not talking about overregulation, but some basic core things that people can look at. For instance, one of them would be just tracking the amount of energy that’s being used. And then on an annual basis, convert that into kilowatt hours, say, per gram or per kilogram. And then we have an idea of what those baselines are in the industry. Of course, you could do the same thing for water, same thing for waste. And then further, to be benchmarked.

And I think the role of government is not to overregulate, and that those who want to go above and beyond that sustainability. Sustainability prescribed by governments has to be looking ahead to best practices and then being celebrated for really leading the industry in terms of sustainability.

TG Branfalt: Well, I want to talk to you guys about what you’re seeing in this audits, what you’re seeing on the ground. Before we do that, we’ve got to take a break. This is Ganjapreneur.com Podcast. I’m TG Branfalt.


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TG Branfalt: Hey. Welcome back to the Ganjapreneur.com Podcast. I’m TG Branfalt here with Brian Farmer, co-founder and director of auditing and certification and Brittny Anderson, co-founder and director of operations for the Cannabis Conservancy. So before the break we were talking about what you guys want to see in terms of regulations, where you think they should be. What are you guys seeing on the ground when you do these audits in terms of sustainability among current operators?

Brian Farmer: Well, by and large, we’ve really started launching this standard in California with sun grown, outdoor growers, mostly in the Triangle. So the level of sustainability that they, by default, have is quite high often. They’re sun grown, so the whole energy issue, in terms of our standard, they’re much further ahead than somebody who’s growing indoors. Many of the growers are already doing very progressive regenerative practices, companion planting, really going far beyond what most people are … The stereotype of what people have. I’m usually impressed with a lot of the practices. What we’ve had to really work with growers on is documenting what they’re doing because in practice, most of them are doing many of the things that we would like to see them do. What they’re not doing is putting it together in a way that is easy for us to assess. So the first year, we’ve been working with growers on doing that, and they’ve made fantastic progress.

And what they’ve discovered is they can be even more sustainable than they are by putting this together and really understanding how they’re using what they’re using as a part of their process. And they’ve been able to really dial in a lot of things. And bottom line, make a more efficient system for themselves and ultimately make more money because they have a much more consistent product. But they also have a handle on how they’re using their resources. So that is one end of the spectrum for our initial certified growers. But we’re also really reaching out into other areas with different kinds of growers. We particularly want to address the inside growers, and Brittny can speak to that a bit.

Brittny Anderson: Yeah. I think one of the things, also just to point out, is that the growers that have signed up and have gone through the certification process as … Certification in the cannabis industry is a new thing. The growers that are choosing to become certified already have a deep commitment to sustainability. When we look at certification in the agricultural sector, people are hyped to get certified, otherwise they have nowhere to sell their product. Where in the cannabis industry right now, currently those that are getting certified, it’s really because they’re leaders. And how we see the market moving is that the people that are leaders are getting certified now, but in the future the demand for certified product is going to be so high that people that maybe don’t have a sort of intrinsic drive for sustainable production will be looking at it simply from a business perspective. But when we talk about sustainability in the cannabis industry, we’ve heard numbers quoted by Evan Mills, but … and how much energy, for instance, is being used in the cannabis industry.

But what I really want people to realize is that the sustainability of cannabis operations, they exist on a spectrum. So not all cannabis cultivation facilities are created equal. At one end of the spectrum we have an outdoor facility that relies completely on sun energy to fulfill the life cycle of its plants. There’s no power draw from the grid during cultivation. And it’s really just relying on the sun’s energy. So with this, in terms of sustainability, from an energy perspective, it’s a very sustainable model.

And then on the other end of the spectrum we can find facilities that are cultivating cannabis exclusively indoors, and in a poorly designed facility. They’re using inefficient equipment. There’s no scheduling optimization, and in some cases, power from coal. So this type of facility is using a lot of energy and it’s contributing directly to climate change. So when we’re talking about the sustainability of cannabis production, it’s not all created equal. And what we want to do is really highlight and celebrate the growers that have made a commitment to cultivate sustainably, and that’s to say there are indoor growers that are doing great things as well.

They’re looking at different technologies. They’re using scheduling optimization. They’re ensuring that their power sources are renewable. So I think it’s really important that when we are considering sustainability, that we want to move the entire industry forward and we want to make these incremental steps so that we’re not contributing to climate change in terms of energy, that we’re not drawing water out of our aquifers at an unsustainable rate, that the materials that’s produced on sites that’s not being sold, that it’s then maybe being composted or used for other methods. There’s a lot of great things that are happening and we want to celebrate those and try to encourage other people to adopt a sustainability qualities.

TG Branfalt: I want to get into some of the more interesting aspects of the standards that you guys have. But before we do that, we’ve got to take our last break. This is Ganjapreneur.com Podcast with TG Branfalt.


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TG Branfalt: Hey. Welcome back to the Ganjapreneur.com Podcast. I’m TG Branfalt here with Brian Farmer, co-founder and director of auditing and certification services, and Brittny Anderson, co-founder and director of operations for the Cannabis Conservancy. I just want to reiterate. The standards are comprehensive. They’re smart practices. They include a sourced locally policy, maintaining ecosystem health from really, seed to sale. Promotes transparency.

Couple of things I found interesting — the first was research, that you guys include this aspect in your standards. What research are TCC certified operators working on or what have they worked on? And what research are you guys interested in certified farms performing?

Brittny Anderson: I mean, our growers are conducting on the ground research all the time, experimenting with different genetics, looking at different pest management systems, experimenting with how to build nutrients in the soil, different on site nutrient building, compost teas. And so I think just as a farmer, there’s a lot of sort of experimentation and research that’s going on, on a continual basis. And then the Cannabis Conservancy, we’ve been involved. One of our pillars is education and what we want to do is when we’re looking at information that’s available, there’s definitely a paucity of data in terms of cannabis. And so we were contracted from the Colorado Energy Office to do a study. And we looked at patterns of energy and water consumption in the cannabis industry in that state. And part of that included interval energy metering of three different facilities. One was an indoor facility. One was a greenhouse facility. And one was an outdoor cultivation operation.

And so, unfortunately, that study has not been released yet, so we’re not able to go into detail. But it should be released shortly and we’re really excited about the contribution that it’s going to make. I think that it will help to establish a baseline for some of the things that we’re talking about. Because of the past, because of how cannabis is dealt with in the past, there hasn’t been a lot of scientific research and so that’s an area we think that’s really critically important. I am excited in Canada with the regulations they are going to be proposing that anybody can apply for a research license. So I think a lot of wonderful things are going to happen through that. And growers are constantly experimenting. A lot of the time, that information, it’s held quite close to the chest. A lot of people consider that proprietary. But just trying to share information in terms of best practices I think is important as we’re looking specifically at the sustainability, from a sustainability perspective.

If you found a way within your system on something that’s really effective through your IPM, it would be great to be able to share that with people. And there are growers that have a platform and are sharing that information with people. And with our growers, we’ll have discussions, like a round table discussion, so we can bring them together. And that’s when they are sort of able to ask each other questions and share some of the successes or some of the challenges that they’ve had and then really grow together and try to support each other with those endeavors and just try to make their own facilities the best they can be and do bring each other up within that process. It’s really great to see that type of community mentality.

TG Branfalt: And the other thing that’s in your standards, which I think is super cool, is the biodiversity issues in the cannabis space, specifically the issues related to the wild pollinators. I’ve been covering this industry for about five years and I’ve never heard anyone talk about bees. Never heard anyone talk about wild pollinators. As we know, they’re crucial, absolutely crucial to the ecosystem. So tell me. Tell us. How can operators build a bee-friendly cannabis grow?

Brian Farmer: Well, as you said, we have very specific kinds of practices that growers can do in their operation to encourage and support wild pollinators and also domesticated bees, if they want to do that. But particularly wild pollinators, especially in the areas where people are doing outdoor sun grown. So we have specific practices. We require that 6% of the land is vested in bee attractive flowers, perennials, berries, ground covers, mustard, vetch, any kinds of things that are be attractants. Could be fruit trees, that they have insectary gardens, so those are attractant plants specific to different kinds of pollinators. And we have other criteria that requires them to be very conscious of their spraying, even if they’re using organic approved pesticides, pyrethrin or something like that, or something very benign. If they don’t time that properly in their production cycle and they have open greenhouses, they could potentially affect those bees with that material. Even though it’s benign within an organic system, it could affect them.

So those are just a couple of the things. There’s other kinds of practices that we encourage. But we believe that making this as robust as possible and again, highlighting and encouraging and celebrating those growers that are doing all of these practices is really important. And that they can take those practices through the certification to the marketplace with certified product.

TG Branfalt: One of you said earlier that ultimately, the process allows people to maybe make more money. How can businesses leverage the certification in a marketing sense or in an absolute sense to consumers?

Brittny Anderson: Consumers, we’ve seen a growing trend in the demand for third party certified products, specifically in the food industry. We’re looking at coffee and cocoa and vegetables, sustainable seafood. Consumers want to purchase products that are in direct alignment with their values. And we believe that the cannabis industry is going to be no different. So for those people that are already shopping at Whole Foods, shopping at their farmers’ market, spending a little bit more money on their organic, fair trade products, that when they’re going into a dispensary, they’re also going to be looking for products that are in alignment with their values. And so with TCC certified products, it’s not only assured to be free from pesticides, which we know is a major concern for people and we’ve seen that there’s been issues with pesticides within the industry. And it’s also looking at ways to mitigate their energy use, reduce their water consumption, reduce the waste, and really in cases, rebuilding the soil.

And so when a consumer wants to purchase their product, now we’re looking … We’re also seeing in the cannabis industry right now, there’s a lot of green washing that’s happening. A lot of brands are using words or phrases that indicate that they are sustainably cultivating their products, or they’re organic. But without third party certification, there’s no assurance that what the growers are saying they’re doing, is actually what they’re doing. And we’ve seen that throughout different industries, and it is really of concern because it not only hurts the consumers that might be … They think they’re purchasing a product that they’re not. But it also is really … It hurts our environment in the end. And so we really see that consumers, that when they’re going into the cannabis dispensaries, they’re going to be looking for products that are in alignment with our values. And our certification provides that for those growers. And so our producers are able to sell their products for a premium to these dispensaries. The dispensaries are also assured that these products have gone through diligent testing.

And there’s a whole system in place that can track the cannabis back to the grower, so if there’s ever any question, then we are able to do a recall on that product. So I think that it’s good for the consumer. It’s good for the dispensaries. And it’s also really good for the grower because when you’re implementing these practices, you’re minimizing your risk and you’re also decreasing your resource use. So in the end, you’re actually spending less money to produce that product so your margins are larger.

TG Branfalt: And describe to the producers listening, the cultivators, what that certification process looks like.

Brian Farmer: Okay. In a nutshell, we’ve designed it so there’s a self assessment piece upfront. So if you’re interested in and going through the certification process with us, you contact us. We get you set up. We get some basic information on your production system, what you’re doing, what the style is. Are you outdoor or are you indoor? The size of your facility or your production, because our pricing is based on production size. Once we’ve figured all those details out, the producer gets a self assessment, which is a tool that they can use, which is basically our standard, but it’s laid out in a way where they are asked questions, and they can answer those question that relate to their production system. Once they go through that, they get that back to us. We go through that and look at the areas where the grower is in alignment with what we’re doing and can provide documentation to prove that. And then there may be areas where they are doing something, but don’t have documentation.

In other words, it’s a whole process of critiquing what you’re doing and seeing how it’s in alignment with what we’re asking growers to do. Once you’ve done that … Or, we can also come in and do that for growers. And we have done that, and that’s a different kind of process. But basically, we’re trying to get the same information. Once you’ve done that initial assessment, what we come up with is kind of a correction action list, and this is just a list of the things that the grower is going to need to do to get in alignment with what we’re asking as a part of the standard. Once they have done a portion of that, or all of it if they can do it, we then do an on site audit. We do a site visit to the facility or the outdoor grow, whatever it is. And we go through that whole standard, see if they’re doing what they say they’re doing in terms of their self assessment. If we find any other kinds of things that they’re doing that they need to correct, they get another to do list.

Once they’ve done that and we can sign off on all that information or practices, then they are able to be certified. But it is, as you said Tim, it’s quite a detailed, comprehensive standard. And you really have to make a commitment to work fully through a process. And that’s what we tell growers too. This is a very new kind of process for a lot of folks who’ve been not keeping records and trying to fly under the radar sometimes. This is the flip side of that. This is documenting everything and flying above the radar because you want to show how great your operation is based on doing all of these things.

So once a grower becomes certified, they get an individual QR code, which is also their certification mark. And that can go on their products. The cool thing about that is you can scan that QR code and it takes the consumer to a page on our website called My Grow, and each grower can set up their own page, which details in as much detail as the grower wants, their complete operation. They can include pictures, details about all of their cultivation techniques, their philosophies, whatever they want to include there. So it’s a direct connection from the consumer at the consumer level to the grower. So that traceability piece, we really wanted to include because it’s giving a chance for, especially smaller growers, to tell their story.

TG Branfalt: What is, in your opinion, the biggest challenge for cultivators to comply with the certifications to operate with these best practices in mind? And what’s your advice for those operators?

Brian Farmer: I think, well as I already mentioned, a lot of folks, the initial group of growers that we’re working with, in practice are doing a lot of the things that we have in our standard because they are outdoor, sun grown operations. By and large, what we’ve seen are a need to really improve the record keeping, so that an assurer like us can come in and look at that operation kind of through the record keeping lens. So that’s been a struggle for some folks. But the folks that’ve really made a commitment have hugely improved their record keeping to their own amazement sometimes, and to our delight. So I would say that and typically some infrastructure improvements that are going to bring things like a trim operation or an area where people are doing trimming or drying, those kinds of things. So typically, some infrastructure improvements. But it’s very dependent on the farm. It’s all over the map. Some people are right there and pretty much have that stuff together. Other folks have some work to do, but they … What we’ve seen is a good degree of commitment to make all that work.

But as I say, it’s a process. It’s not just a checklist that we come in and do. It really is working with us through this whole certification process to incrementally improve even once you’re certified. So each year we’re asking folks to step up their game as a part of the certification.

TG Branfalt: And what about, Brittny, from a … As you guys in Canada are launching this federally, this is huge. What are some of the challenges that you’re sort of seeing right now in terms of businesses getting involved from a conservation side?

Brittny Anderson: Yeah. Absolutely. Right now the regulations haven’t been written, so we don’t know exactly what the government is going to require in terms of licensing. But we are seeing when the license producers were first granted their licenses in Canada, we were seeing a lot of indoor facilities. And now as things have matured and grown, we’re seeing a lot more greenhouse facilities. And so I think as the industry is going to mature, we’re going to see a lot more people looking directly towards the sun and all of its glorious power and really tapping into that natural, renewable, carbon neutral, abundant resource. And so I think that’s going to be one of the key things in terms of energy. And I also hope to see not just large growers.

I was listening to the radio this morning and they were proposing a $100 million facility here in Southern British Columbia for cannabis cultivation. And so that’s wonderful. That’s going to bring a lot of jobs to the area, but we’re hoping that we’re going to be also seeing the small growers. A lot of the small growers, they’re the reason why legalization on a recreational level is about to happen. And so we want to see that small growers are going to be incorporated in this model and the government has proposed there to be micro licenses. And so we really want to support those growers that are more … That they are in rural areas and they have a small … They’re going to be just dedicating a part of that property to cannabis cultivation. And it’s potentially part of a larger agricultural system that they have on that property. That’s really when we’re going to be able to see those regenerative practices and people really taking time to build their soil and increase their nutrients. And I think that’s going to be a really beautiful part that comes out of legalization, is the space for the small growers to really legally flourish.

And then of course, there are going to be large growers that flourish as well. But as long as people are continuing to keep the environment in mind and that a requirement so that those that are wanting to go above and beyond, they seek that third party assurance, and consumers continue to demand it. I think that it’s an exciting time for us and I’m looking forward to all the changes that are going to be happening here shortly.

TG Branfalt: Well, I want to thank you guys for taking the time to come on the show. I think that this is really eye-opening, maybe for not as many people as I’d like to think. But for me, to hear this issue discussed and to hear that people are concerned about this is very heartening for me, somebody who does care a whole lot about pollinators and the overall ecosystem that … It does worry me from time to time. I think about the proliferation of the industry, and that’s one of the first things that comes to mind. I’m like, “What are we going to do about this energy problem?” California’s in a drought and they’re rolling it out there. So I want to commend you for taking the time and the effort. And just looking at the process you can tell a lot of work went into this, a lot of thoughtfulness went into this. And so thank you for being on the show and developing this really great system.

Brian Farmer: Yes. Our pleasure.

Brittny Anderson: Thank you for having us.

TG Branfalt: Where can people go to find out more about the TCC?

Brittny Anderson: So of course we have a website, which is www.cannabisconservancy.com. And we are all over social media, Twitter, Instagram, Facebook, and those all have those links to our website. And we encourage you to give us a call or to send us an email. We’d love to hear your thoughts. Yeah, we just want to be able to support this industry, go and continue to go in a more sustainability direction.

Brian Farmer: Yeah. We are going to be at some events coming up, so if you have some listeners that are at any of these events, we’ll be there either speaking or present. We’ll be at Indo Expo in Denver. Jacob’s going to be there. We’ll be at the NCEIA Seed to Sale Show in Denver, and a number of different events. I’m hoping to make it up to the Vermont Cannabis and Hemp Convention in May, so I might be up in Vermont there as well. But I think we’ll put our entire list of appearances up on the website so people can see that.

TG Branfalt: If you make it to Vermont, I’ll definitely see you in May. Again, I really appreciate you guys coming on the show. I wish we had more time to really sink our teeth into this a little bit more, but thanks again. I appreciate it.

You can find more episodes of the Ganjapreneur.com Podcast in the podcast section of Ganjapreneur.com and in the Apple iTunes. 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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A greenhouse full of CBD-rich cannabis plants located in Oregon.

Arkansas Approves Five MMJ Cultivators

Arkansas has approved five companies to cultivate medical cannabis under the state’s voter-approved measure, including one which counts former state Attorney General Dustin McDaniel among its investors, according to a WREG report. The state received a total of 95 applications.

Who’s in?

  • Natural State Medicinals Cultivation in Jefferson County
  • Bold Team LLC in Woodruff County
  • Natural State Wellness Enterprises in Jefferson or Jackson counties
  • Osage Creek Cultivation in Carroll County
  • Delta Medical Cannabis Company in Jackson County

McDaniel, who serves as an attorney and lobbyist for Natural State Wellness, said the company, which had two approved applications in the top five but can only open one site, plans on deciding which county it would operate in within the next day or two.

“We appreciate that it is a public trust that has been placed upon our company to produce quality, safe, and legal medicine to Arkansas patients. We will make a location decision shortly and will promptly begin construction.” – McDaniel to WREG

The regulators have received 227 dispensary applications and are expected to award those licenses to 32 companies later this year. According to the report, more than 4,100 Arkansans have already applied to qualify for the program and identification cards are expected to be issued one month before the dispensaries open.

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Sunset photograph taken in the New Hampshire countryside.

New Hampshire Poll: Majority of Residents Support Cannabis Legalization Bill as Written

According to the University of New Hampshire’s Granite State Poll, the majority of state residents – 56 percent – would support the legislation to legalize possession of less than three-quarters of an ounce and allow adults to grow up to six cannabis plants in their home.

The survey found 37 percent of respondents would “strongly” support the measure while 18 percent said they would “somewhat” support it. Twenty-five percent indicated they would oppose the reforms, with 17 percent of respondents saying they would “strongly” oppose the changes, while 8 percent would “somewhat” oppose it. Another 7 percent indicated they were “neutral” and 13 percent didn’t know or were unsure.

The legalization plan, which does not include retail sales, garnered the most support among Democrats (61 percent) and independents (56 percent). A slight majority of Republicans (51 percent) would oppose such a measure.

Last year, the state legislature decriminalized possession of up to three-quarters of an ounce and the bill currently in the House Ways and Means Committee would completely legalize possession at those limits, along with 5 grams of “hashish” and the cultivation of up to six plants for adults 21-and-older. The legislation is due out of committee on Mar. 15.

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Canadian MMJ Company Listed on U.S. NASDAQ

Toronto-based medical cannabis company Cronos Group is the first Canadian cannabis company to be listed on the U.S. NASDAQ, according to a Forbes report. The company holds 100 percent of two Canadian medical cannabis companies: Ontario’s Peace Naturals and British Columbia’s Original BC. The company also holds a 21.5 percent stake in Whistler Medical Marijuana Company.

Cronos previous traded as an American Depository Receipt on the Over-the-Counter markets under the PRMCF symbol. On the NASDAQ, it’s trading under the CRON symbol and opened on the 27th at $8.24 and closed at $7.62. It closed yesterday at $9.17.

“This up listing to NASDAQ is a major corporate milestone and reflects the significant progress we have made in strengthening our corporate governance and expanding our global footprint. We believe this will increase long term shareholder value by improving awareness, liquidity, and appeal to institutional investors.” – Mike Gorenstein, Cronos Group CEO, in a press release

Cronos is part of the first cannabis-related exchange-traded fund, Alternative Harvest ETF, comprising the top holding of the fund at 9.18 percent.

Other firms included in the ETF:

  • Aurora Cannabis Inc.
  • Canopy Growth Corp.
  • CanniMed Therapeutics
  • MedReleaf Corp.
  • CannTrust Holdings
  • GW Pharmaceuticals
  • Huabao Intl. Hldg.
  • Arena Pharmaceuticals
  • Turning Point Brands Inc.

Alternative Harvest began trading on the New York Stock Exchange Jan. 2.

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A young cannabis plant rests under the LED grow light of a cannabis patient's grow closet.

Washington Home Grow Bill Fails, Again

The decision to not include home grows in Washington’s 2012 cannabis legalization initiative continues to haunt the state, which again this year has failed to pass a cannabis home grow bill. With Democrats holding both chambers of the legislature and the Governor’s office this year, cannabis supporters thought there might be progress on that front — however, despite the House version passing overwhelmingly out of its first committee and both Senate and House bills having bipartisan support, each bill failed to pass out of committee before a key cut off date.

Washington remains the only state that has successfully legalized adult-use cannabis but does not allow individuals to grow or possess cannabis plants.

The Republican sponsor of the House version, Rep. Cary Condotta said, “The bill failed again because there are not enough votes on the House floor to get it passed. Part of that has to do with opposition from law enforcement. There’s no reason Washington should not have home grows like other states.”

“Each year we get closer, but next year there will be the same opposition,” said Rep. Condotta. “People should keep writing and calling their representatives if they want this passed.”

Adding further insight, Rep. Steve Kirby (D) told his constituents on Saturday at the 29th legislative district monthly meeting, he chalks up some of the opposition in Olympia to old-fashioned “reefer madness.” He says there are many Democrats from areas of the state that have cannabis bans, admitting these would be hard votes to sway.

But John Kingsbury, an activist and home grow supporter who worked on both the House and Senate bills, sees things differently:

“We started working on this in August to try and knock down the two most common arguments against home grows. Federal intervention and lack of industry support. We were able to combat those arguments, but always received stock answers to why the bill wasn’t getting a hearing. The bill failed two years in a row in the same committee. That tells me orders are coming from higher up in Washington government to not pass a home grow bill. In my opinion, there are powerful forces in the I-502 system and Washington government who don’t want this to pass. It seems they’re not willing to give up that 4 to 6 percent market share they think home grows will take from tax and corporate revenues.”

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Two individuals walking on a cobblestone street.

Two Maricann Directors, Including Board Chairman, Resign Amid CSE Investigation

Canadian medical cannabis company Maricann Group Inc.’s chairman along with a board member have stepped down amidst a review by the Canadian Securities Exchange of its planned $70 million financing, the Canadian Press reports. The review has put the financing on hold – but it has not been terminated. The company has been advised orally by the underwriters not to proceed with the deal.

The resignations of Chairman Neil Tabatznik and Director Raymond Stone, come as regulators investigate the timing and reporting of certain trades owned or controlled by the pair, along with director Eric Silver. Paul Pathak has been named interim chairman of the board.

The Ontario Securities Commission is also investigating CEO Ben Ward’s activities as CEO of Canadian Cannabis Corp., a wholly unrelated company. In a press release, Maricann indicated it is “unaware of any facts that could reasonably lead it to conclude that this investigation has had, or will have, any impact” on Ward’s ability “to properly and effectively carry out his duties as CEO or director of the company.” The company said Ward is fully cooperating with the investigation. Maricann has convened a special committee to investigate the trades.

“We have heard from many significant shareholders of the company about their concerns with these matters, and we share them. In these circumstances, we appreciate Messrs. Stone and Tabatznik having resigned. The special committee’s review is ongoing, but we are committed to providing the stakeholders of the Company with a further update on its review shortly.” – Pathak, in a statement

Maricann’s shares were down as much as 30 percent on Wednesday following the report.

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Cannabis plants inside of an indoor, commercial grow operation.

Study: 96% of Cancer Patients Find Relief with MMJ

A study published in the European Journal of Internal Medicine conducted medical cannabis producer Tikun Olam found 96 percent of cancer patient respondents reported an improvement of their condition through the use of medical cannabis. The study encompassed 2,970 cancer patients with an average age of 60 who reported sleep problems, pain, nausea, and decreased appetite. The patients were prescribed one or more of Tikun Olam’s proprietary strains.

The research also found that within six months, 36 percent of study participants had stopped taking opioid prescription drugs entirely and another 10 percent had decreased their dosage. The study’s authors concluded that “cannabis as a palliative treatment for cancer patients is a well-tolerated, effective and safe option.”

“The data establishes that cannabis is effective treatment for the most acute symptoms of cancer, such as pain, which often requires the use of opioids.” – Lihi Bar-Lev Schleider of Tikun Olam and lead author of the article, in a press release.

The study found “sparse and minor” side effects, including; dry mouth (7.3 percent), increased appetite (3.6 percent), sleepiness (3.3 percent), and psychoactive effect (2.8 percent).

Tikun Olam, which is based in Israel and has a U.S. arm, partnered with Canadian firm Jay Pharma, Israel’s Soroka University Medical Center, Ben-Gurion University of the Negev, and the University of Jerusalem.    

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Official campaign photo for Benjamin Wolf, a candidate for Illinois' Senate who is campaigning as the "Cannabis Candidate."

Illinois U.S. Congressional Candidate Smokes Joint in Campaign Photo

A former Federal Bureau of Investigation officer and current human rights professor at Roosevelt University, Benjamin Thomas Wolf, is running for the 5th Congressional District of Illinois – and he’s smoking a joint in a campaign photo.

He’s calling himself the “Cannabis Candidate” and is advocating for “the immediate legalization of marijuana and hemp for both medicinal and recreational uses in all U.S. states, cities, and territories.”

“Cannabis can provide a much-needed tax base for our city. As a former federal law enforcement agent, I understand the manner in which legalizing cannabis can transform the criminal justice system in regard to high rates of incarceration for drug crimes as well as the unfair targeting of marginalized communities.” – Wolf, in a press release, via Patch.com

Wolf is challenging incumbent Democratic Rep. Mike Quigley for the district, which includes Chicago’s North and Northwest communities. According to a Chicago Sun-Times report, Wolf supports using revenues from a taxed-and-regulated cannabis industry on public education and drug rehabilitation centers. He also supports pardoning all citizens jailed for cannabis-related offenses.

The progressive policy could appeal to voters in a district with an average age of 33. In November, Illinois voters might also have a chance to vote on legalizing cannabis for adult use.

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The front steps of the New Jersey Statehouse.

Survey Finds Scant Support for Cannabis Legalization Among New Jersey Lawmakers

A survey by NJ Cannabis Insider of the state’s 40-member Senate found just five members who indicated they would vote for a bill to legalize cannabis use for adults. NJ Cannabis Insider is a new publication by NJ Advance Media.

The survey, conducted over three weeks via telephone, in-person, and by email, found 20 members who said they would vote no, while 15 more said they were undecided or did not respond to the inquiry.

The survey also found low support among New Jersey Assembly members, with just five members indicating they would vote yes, six firm no votes, and another 68 members who are undecided or did not respond. In the Senate, 21 votes are required to pass legislation, while 41 are required in the Assembly.

Supporters in the Senate are all Democrats, including Sen. Nicholas Scutari – the sponsor of the legalization measure – Sen. M. Teresa Ruiz, Sen. Vin Gopal, and Sen. Nia Hill. In the Senate, legalization is backed by Democrats Asm. Jamel Holley, Asm. Reed Gusciora, Asm. Timothy Eustace, and Asm. John Burzichelli. Asm. Michael Carroll is the lone Republican offering support for the reforms.

Democratic Gov. Phil Murphy included cannabis legalization as one of the planks of his campaign platform. The legalization measure has not yet been scheduled for a hearing in the Senate Judiciary Committee, which is chaired by Scutari.

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Sunset photo of the bay behind Valletta — Malta's capital city.

Canadian MMJ Company Acquires Malta-based Lab to Produce and Distribute Cannabis Oils

Canadian medical cannabis producer Nuuvera has acquired Malta-based laboratory ASG Pharma, one of few Maltese Good Manufacturing Practice labs. ASG Pharma is expected to be one of Nuuvera’s hubs for medical cannabis oil production and distribution.

“It is clear that Malta specifically and the European Union generally intend to make consumer protection a priority, and this approach aligns perfectly with our vision to create a center of excellence in Malta for the production and distribution of pharmaceutical grade cannabis products. To that end, ASG Pharma will adhere to the highest international standards for processing and extraction, distribution and security protocols.” – Nuuvera CEO Lorne Abony, in a press release

Nuuvera is the only standalone medical cannabis company GMP-approved by Health Canada.

Last month, Aphria Inc. announced it would acquire Nuuvera for $826 million as part of its expansion efforts into Europe, Africa, and the Middle East. The deal still needs final approval from Canada’s Superior Court, two-thirds vote from Nuuvera shareholders, and approval from the Toronto Stock Exchange.

In addition to its footprint in Malta, Nuuvera has relationships in Germany, Italy, the United Kingdom, Spain, Israel, Lesotho, and Uruguay.

According to a Malta Today report, ASG Pharma has just four shareholders who each own a 25 percent stake in the firm.

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Denver Regulators Approve First Social-Use Business License

While lawmakers in Massachusetts are blocking the state’s voter-approved plans for social cannabis use, regulators in Denver, Colorado have finally moved forward on the successful 2016 voter initiative that enables certain businesses — such as bars, restaurants, cafes and yoga studios — to seek licenses allowing the use of cannabis in their establishment. On Monday, officials awarded the city’s first social-use cannabis license to The Coffee Joint, according to a Denver Post report.

Soon, The Coffee Joint patrons who are at least 21-years-old will be allowed to bring their own vaporizers and/or infused edibles to consume in the shop (though store owners will not allow smoking anywhere on the premises). The business is not licensed to sell or dispense cannabis products, though it is located next door to a licensed dispensary named 1136 Yuma which shares the same co-owners.

Rita Tsalyuk, who co-owns The Coffee Shop and 1136 Yuma with Kirill Merkulov (Tsalyuk’s husband also co-owns the dispensary), said that they plan to charge a $5 entrance fee but will not make the coffee shop into a members-only destination.

“Tons of people already came in. We’re offering free coffee and sneak previews [of the shop].” — Rita Tsalyuk, co-owner of The Coffee Shop and 1136 Yuma, to the Denver Post

According to the report, several other companies in Denver may also be receiving a social-use cannabis license soon, including a cannabis-inspired wellness spa.

This appears to be the first case of a non-cannabis related company receiving a license to allow cannabis use in the U.S. — social clubs have appeared previously in California, Oregon, and Alaska but were either operating without a license or were located inside of an already-licensed dispensary.

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Review: Scarlet Fire Farms Flower

More and more, the standard for what is top-shelf, premium cannabis keeps rising — and it is amazing how that standard changes depending on where you live in the country. Nowhere is that standard for extraordinary quality higher than in the Emerald Triangle of Northern California. I was fortunate to sample an incredibly wide range of top California producers this year while judging the Golden Tarp Awards and attending Emerald Cup and this review is of one of those farms.

A clear favorite of everyone on the review team who sampled it was Scarlet Fire Farms of Humboldt County. Owner, breeder and lead gardener Bryan Sayre not only puts incredible effort into growing his individual plants, but his efforts start far before planting as he is also the breeding mastermind behind Dragon with Matches, an incredibly well-respected genetics provider. Bryan has developed a line of cultivars and growing practices that sets his flowers apart from the rest.

  • Mecca Cup 2014 – Best Flower
  • Golden Tarp Awards Best in Fuel Category September 2015
  • Casual Crop Exchange Best Flower March 2017
  • Hempcon 420 Best Hybrid 2017
  • Hempcon 420 Connoisseur’s Choice 2017
  • Oil Spill 2016 Best Sativa Concentrate July 2017
  • Humboldt County Cup 1st place Sativa January 2017
  • Humboldt County Cup 1st place Indica January 2017
  • Humboldt County Cup 2nd place Sativa November 2017
  • Humboldt County Cup 3rd Place Best Outdoor Sativa 2017

Scarlet Fire Farms is a family owned and operated farm tucked in the lush, water rich mountains of Six Rivers National Forest in Northeast Humboldt County, California. They have been producing cannabis since 2007.

One of the aspects of Scarlet Fire’s growing system that impacts the flower most is Bryan’s incorporation of Korean Natural Farming (KNF) techniques. Bryan says, “KNF and probiotic farming practices has helped us get a better sense of the cannabis plant’s needs. The increased number of overall cannabinoids and terpenes has proven that this is the best management practice I could use for my style of cannabis farming.”

KNF is known for working intimately in partnership with nature instead of against it. So much of the cannabis industry still incorporates synthetic nutrients and petroleum based fertilizers but not Scarlet Fire. Bryan continues, “I admire KNF not only because of the quality and effect of the product but also for decreasing our footprint on the environment. The production of homemade nutrients and the harvesting of indigenous organisms allows us to eliminate a large portion of store bought bottles.”

The proof is certainly in the flowers. Each of the four strains we sample burst with terpenes out of the jar. So often when sampling an entire farm’s line, we will find a couple standouts and the rest just show up. Not this time. Each of the four we tasted were huge experiences that left the review team playfully negotiating for who got to keep which extras.

Scarlet Fire

  • Smell: Cheese, taffy, hummus, vanilla, coffee grounds and just a touch of that skunk
  • Taste: Pinene, persimmon, woodsy, fruit and slightly chem reminding me of pools and bikinis

We all agreed that the flagship strain of the farm, Scarlet Fire, was deserving of the attention it receives. We found ourselves functional and engaged and yet very high and a bit forgetful. Not only fun but great pain and PTSD medication, as well.

Cherry Chem

  • Smell: Birthday cake frosting, fruit and tang.
  • Taste: Sweet and chem-y and the smoke never tasted smokey.

Tangimal Cookies

  • Smell: Bright tangie, no doubt. And blended with woodsy and mossy smells as well.
  • Taste: Again with the bright tangerine taste and a pronounced earthen skunk providing a lot of backbone.

Scarlet Black

  • Smell: Pine. Black Licorice. Sweet champagne.
  • Taste: The crazy thing is that this smokes just like it smells. Very uncommon. Smokes pine, black licorice and a touch of cantaloupe.

(Note: review continues below.)

Four packaged Scarlet Fire strains sit in a row on a beach in northern California.

The Scarlet Black was my personal favorite of the review but it was hard to choose because they were all so good. The Scarlet Black won Third Place Best Outdoor Sativa at The Humboldt County Cup in 2017.

For those of you with a keen eye, you may have noticed the Grateful Dead influence to their name. I asked Bryan about that and he told me:

“In ’93, when I started following the Grateful Dead around, the thrill may have been gone for some but Jerry was still wailing away on stage and the parking lot scene was larger than ever. I stumbled upon Humboldt County in 1994 while driving from the Seattle shows to Vegas. Of course, I loved weed then too. Humboldt County is every east coast stoner’s Mecca. When I actually got there I never wanted to leave. After summer tour that year, we headed back to California and straight to Arcata. It took a couple years of living at the local beaches like Clam Beach and Mad River Beach before I had an opportunity to try to grow cannabis. Best decision of my life!”

We are excited to see what else Bryan and the Scarlet Fire team have in store now that they have received their California rec license. Be sure to subscribe to their Instagram for great photos. And check out their website at ScarletFireFarms.org.

 

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Nevada Cannabis Sales on $1M-per-day Pace

Adult-use cannabis sales in Nevada since the market launched last July have reached $195,467,170, with tax revenues of $30,376,795, according to state Department of Taxation figures outlined by Patch. The figures represent sales of $1 million per day.  

Wholesale taxes comprise $10.8 million of those revenue totals, while retail taxes make up $19.5 million. The totals indicate that the total cannabis sales in the state could exceed $400 million through the first full year.

Medical cannabis taxes – 15 percent from grower to dispensary – reached $2,189,794 last month, while the 10 percent recreational retail tax raised $3,576,900. Total sales in December reached nearly $36 million. December marked the second highest sales totals in the state in the 184 days since the program’s launch. October, with nearly $38 million in sales, is second followed by August ($33.5 million), November ($33.4 million), September ($27.7 million), and July ($27.1 million). First-month sales in Nevada outpaced first-month sales in Colorado, Oregon, and Washington, even though the launch was marred by distribution problems.

Nevada officials had estimated $63.5 million in cannabis tax revenues derived from the legal cannabis industry over the first two years – although July sales were not included in that estimate.

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Judge Tosses Case to Deschedule Cannabis; Appeal Likely

U.S. Southern District of New York Judge Alvin Hellerstein has dismissed the lawsuit challenging the constitutionality of the Schedule I classification of cannabis on the grounds that the plaintiffs had not exhausted the administrative remedies – a petition process through the Drug Enforcement Agency – before filing their suit.

Michael Hiller of Hiller, PC, the lead counsel for the plaintiffs, said the legal team will likely appeal the ruling.

“Resigning the plaintiffs to the petitioning administrative process is tantamount to a death sentence for those patients who need cannabis to live. The time has come for the courts to abandon decades-old precedent, notched with obsolete legal technicalities, and catch up with modern science and contemporary principles of constitutional law.” – Hiller, in a statement.

Three of the plaintiffs named in the case are medical cannabis patients and, during a Valentine’s Day in court, Hellerstein admitted that cannabis had saved the lives of those plaintiffs but had foreshadowed his ultimate ruling, saying that the “right thing to do” was to defer to the DEA with regard to cannabis policy. Co-counsel Joseph Body said the court had declined to hear oral arguments on some of their points and “didn’t consider a number” of arguments.

“The plaintiffs weren’t the only ones who experienced a setback today. States and principles of federalism took a black-eye as well, and under the false premise that the courts are constrained by prior decisions to take actions, which the overwhelming majority of Americans, including members of Congress and the President, know are wrong.” – Lauren Rudick, Hiller, PC, co-counsel, in a statement

The team pointed out in their original complaint that it takes an average of nine years for the DEA to make any ruling on rescheduling or descheduling cannabis and all but one – for synthetic THC medication Marinol – have been denied.

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A large CBD-rich cannabis plant at an outdoor farm in Oregon.

Report: Global Cannabis Spending Could Reach $57B by 2027

According to a report from Arcview Market Research and BDS Analytics, global spending on legal cannabis is expected to reach $57 billion by 2027, with adult-use sales driving the industry to the tune of $38.3 billion. Medical sales are estimated to comprise $19.1 billion.

The U.S. and Canada are expected to lead the way – from $9.2 billion last year to $47.3 billion by 2027, the research suggests, with an annual compound growth rate of 18 percent. The CAGR for the rest of the world is estimated at 47 percent, representing a jump from $52 million in 2017 to $2.5 billion by 2027. The report notes that Europe and its $1.5 trillion in healthcare spending, has the potential to be the largest medical cannabis market on the planet. South America’s medical cannabis market is expected to grow from $125 million this year to $776 million by 2027, the report says. In Australia, the report estimates a CAGR of 53 percent, representing an increase from $52 million this year to $1.2 billion in 2027 – the fifth largest market in the world.

“Outside the United States and Canada, it will be almost wholly a medical-only business until the United Nations revamps the 1961 Single Convention on Narcotic Drugs, which will likely only come after the United States’ Federal Government ends prohibition, which we don’t expect until 2021.” Troy Dayton, Arcview Group CEO, in a press release

Presently, just one nation, Uruguay, has federally legalized cannabis for adult use and from July to December 2017 the number of registered buyers in the South American country increased from 5,000 to 16,000. Canada is expected to move forward with its own recreational cannabis regime this summer. A Statistics Canada report estimated that in 2015 the nation’s medical cannabis industry was worth between C$5 billion and C$6.2 billion.

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A woman uses a vape pen to consume CBD-rich cannabis oil in conjunction with hot cup of tea.

Massachusetts Cannabis Regulators Reject Social-Use Proposal

Massachusetts will not be the first state to allow social cannabis use as the Cannabis Control Commission voted 4-1 against the proposals, according to a MassLive.com report. The board also voted against allowing home delivery services. Medical cannabis home delivery is still permitted.

The panel did indicate they would re-start the social-use conversation in October, possibly allowing exclusive licenses, and issue draft rules in February 2019. Those exclusive licenses would be available to individuals with convictions for past drug convictions, the Boston Globe reports.

Jim Borghesani, a spokesman for the legalization campaign, said that the “pressure campaign” against social use conducted by Gov. Charlie Baker and Attorney General Maura Healey “proved difficult to overcome.”

“The larger issue is getting the application process up and running for the July sales start date. Additional delays would be an embarrassment for the state and a gift to black market dealers.” – Borghesani to MassLive

In a statement to the Globe, Baker said he was “pleased” with the decision.

In August, Alaska regulators unveiled a proposal to allow retail cannabis dispensaries to obtain on-site consumption endorsement to their licenses; however, that measure has not become law. Last week, Maine’s cannabis implementation committee voted 10-4 to remove all references from social-use licensing from the regulations for the forthcoming program.

On Monday, regulators in Denver, Colorado approved a social-use license to the Coffee Joint, which will allow patrons 21-and-older to vape of consumer edibles on-site. The establishment is the first-in-the-nation to receive such a license; although Colorado’s state law does not permit social use, Denver voters approved such a measure in 2016.

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Several cows graze in a Vermont pasture on an Autumn afternoon.

Vermont’s Cannabis Market Will Be Gray and We’re OK With That

We’re not expecting the Wild West in Vermont – think pre-legalization California with its semi-legal dispensaries and quasi-legal delivery services – but, as you might expect, we are expecting the law’s “loopholes” to be exploited by savvy industry enthusiasts.

Coming from a New York native (more or less), Vermont has been a green beacon for a decade – and not just for its lush Green Mountains. Growing up, we puffed on a lot of Vermont-grown cannabis; it wasn’t a secret that the state’s growers cultivated some of the best product you could get your hands on. The tiny state was our California – it had decriminalized cannabis possession before anyone in New England — yet, somehow, Vermont managed to fall behind Massachusetts and Maine with legalization and the new law does not create a taxed-and-regulated industry.

Come July 1, however, it will set in motion a thriving gray market.

What is a gray market?

On July 1, Vermonters can grow two mature and four immature plants-per-household – but we can’t sell it and we can’t publicly consume. The state’s licensed dispensaries will still only be allowed to sell cannabis to registered patients but a “gifting” culture is certain to emerge, as we’re seeing in Massachusetts and Maine as they move toward their own legalization dates. Gifting is nothing new. In California, shortly after the legalization vote, I gave a “donation” for a vape pen and cartridges after finding an ad on Craigslist. In Michigan, I acquired a “temporary” medical cannabis card to attend – and make purchases at – the 2016 Michigan cannabis cup.

An amateur cannabis grower’s seedling, bathed in the purple light of an LED-based grow closet. Photo credit: Cannabis Pictures

Kris Smith*, a Vermont native who owns an industrial hemp-related business in Vermont, temporarily moved to Maine following the legalization vote, hoping to cash in on the Green Rush. (*His name has been changed so he could speak openly about his experiences without fear of reprisal in either Maine or Vermont).

In Maine, Smith explained, a Craigslist culture emerged quickly where, for a donation, you could purchase flower, concentrates, vape pens, and infused-edibles.

“But another thing that immediately happened is people were growing more,” he explained. “People were like, ‘Well now I can grow my six rec and six medical and boom I have a fat basement grow with 12 plants in it growing at any time.’ That’s a money-maker.”

When voters passed the recreational cannabis initiative, Smith explained, there was nothing in the law that prevented people from doubling up on their plant counts and people started growing plants for people who didn’t even live with them or even smoke, such as relatives.

“Gifting was instantly a thing,” he said. “I’ve seen stuff as blatant as a delivery service with ‘donations.’ We’d find people through social media and you’d say ‘I’m a medical patient’ and you’d never show a card or anything. That’s not even allowed under the medical program but once rec was voted on it started happening all the time.”

While there were no “blatant” social-use clubs in Maine that Smith knew about, he said that, after hours, some bars would allow people to come in and consume cannabis on-site on an outdoor patio. However, he explained that because Maine is such a small market compared to other states such as California and Colorado – and the state’s “wide-open” medical cannabis program – that people didn’t necessarily need these gimmicks to operate in the state’s gray market. He said he was unaware of anyone who was arrested for gifting.

What does this mean, legally, come July 1 in Vermont?

Tim Fair, president of Vermont Cannabis Solutions and a lawyer specializing in cannabis law, explained that “as the law is written right now, it is not gray – it is black and white, clear letter law – it is legal to gift anything under 1 ounce to another adult 21-and-older.”

“The best example is the $100 Snickers bar,” he said. “You call up the delivery service, they deliver you a $100 Snickers bar and you get a free quarter-ounce of cannabis. As the law is written, that would be legal because the purchase you are making is for another object.”

The only way to close this loophole, Fair said, is by a legislative act. And if the Legislature is going to try and reign in the gray market, they would likely just pass tax-and-regulate legislation.

The personal stash harvested from a medical cannabis patient’s homegrown marijuana plant. Photo credit: Cannabis Pictures

Fair said that while the law allows for two mature and four immature plants, the policy makes it ripe for individuals to skirt the law and grow six mature plants at a time because there is no enforcement mechanism for law enforcement to ensure the plants meet those standards. Police would need probable cause to enter a citizen’s home and the only real way they could get such permission is if they were invited in, they were called to the residence for an unrelated crime, or someone were to tell them more than two mature plants were being cultivated at the residence – and even if law enforcement were to discover a six-plant grow, it would be hard for them to determine, in some cases, whether a plant is mature or immature.

Fair said that the new law has the potential to create a lot more legal questions that would need to be addressed, most likely, by the state Supreme Court; such as, whether the smell of cannabis emitting from someone’s home is probable cause.

“It’s legal – but, if you have quantities higher than the law allows, it could be a felony, right? As far as telling people what they can or can’t do is going to be a nightmare because we just don’t know yet,” he said. “We just don’t know what the courts are going to do.

At least one organization is planning a July 1 legalization party, which could raise the social-use question on the day the law takes effect. However, the party is being held on private property, which makes it near impossible that law enforcement could crack down on the event, so long as there are no cannabis sales or consumption by minors.

However, in a hypothetical, Fair said the proprietors of the property could be held liable if someone driving from that party gets into an accident – because they were allowing cannabis consumption at the party; but legally, Fair said, he believes the courts would have to hold cannabis to the same standard as alcohol in cases like this.

Neither Fair nor Smith expects local businesses to operate as “cannabis speakeasies,” as their livelihoods would most certainly be at risk.

The more things change, the more they stay the same

Look, as a New York transplant to Vermont, I can tell you that Vermont has always been viewed as the Northeast’s most liberal state when it comes to cannabis. I can tell you that I see people consuming cannabis in public parks. I can tell you that I puff on my vape pen while walking down Burlington’s Church Street and have consumed cannabis on statehouse property in Montpelier.

There is currently a bill to create a taxed-and-regulated industry in the Legislature, but lawmakers simply have no appetite to take up any more cannabis-related legislation this session – which was enough of a fight.

The legalization measure allows a gray market to exist and most advocates and stakeholders are happy with being able to operate without expensive and onerous licensing – it’s sorta the Vermont way.

At the end of the day, this might be the best form of legalization as other emerging state-sponsored markets, such as Maine and Massachusetts, are in limbo due to pushback from lawmakers and fear of federal interference. To some, this might seem like broad decriminalization rather than legalization, but now Vermonters can grow their own – or, if they can’t, they can buy an overpriced candy bar and possess up to an ounce without fear of penalty.

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The Alabama state capitol building.

Alabama Republicans Kill Cannabis Possession Reform Bill

The legislative push to reduce cannabis possession penalties in Alabama is dead as the state’s powerful Republicans ensured it would not make it to the House floor for a vote, AL.com reports. According to the report, Rep. Paul Beckman demanded the measure get a voice vote, which ensured the bill would not make it to the floor.

The House Judiciary Committee ended up voting 7-5 against the measure.

Rep. Jim Hill, chairman of the committee, said he thought the bill was too far-reaching because possession of an ounce or less would only be a violation even after repeat offenses under the reforms.

“I think we’re probably headed toward either some type of either decriminalization or lesser emphasis being placed on marijuana. But it’s illegal. And to say that no matter how many times you use it, how many times it’s personal use, it never rises to the level of a misdemeanor, I just think that’s a mistake.” – Hill, during the committee hearing, via AL.com

The bill’s sponsor, Democratic Rep. Patricia Todd, told the Associated Press he was “sad” about the bill’s demise.

“But it’s an election year. And a lot of people who voted no told me to my face that they were going to vote yes. And I think the roll-call vote scared a lot of people (who) don’t want to look like they’re soft on drugs. But most people sitting there have no concept or understanding of marijuana.” – Todd to the AP, via AL.com

A similar measure introduced by Republican Sen. Dick Brewbaker did pass the Senate Judiciary Committee 6-4. However, even if it passes the Senate, it would need to be approved by the House, which would include moving through their Judiciary Committee – where it is likely dead on arrival.

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Pam Marrone: Creating Bio-Based Pest Management for Cannabis Growers

Pam Marrone is the CEO and founder of Marrone Bio Innovations, a company offering bio-based pest management and plant health solutions that are effective, efficient, and environmentally responsible.

As the cannabis industry takes off, we’re seeing a continual and deliberate push away from the stigmatized days of old and towards the general acceptance of cannabis as just a plant — not a drug, but an agricultural commodity. We recently invited Pam for a Q&A session to talk about her company’s organic, non-toxic pesticide options, why these biopesticides are especially useful for cannabis growers, and more!


Ganjapreneur: What is your background and what prompted your pivot to the cannabis space?

Pam Marrone: I am a PhD entomologist and serial entrepreneur, having started and run three biopesticide companies (after starting my career at Monsanto discovering new ways to control pests). We were inundated with request for information and technical support for our products to control powdery mildew and mites on Cannabis. Our customer service line and our sales people’s cell phones were deluged with calls. The growers discovered by themselves that our product, Regalia is very good for Cannabis powdery mildew and that Grandevo and Venerate are good for mite control.

We did some background research and found out that pesticide residues can be a serious problem in Cannabis products. Because the EPA does not regulate Cannabis, it is left up to the states and so there is a patchwork of rules for pesticide use. We also found that many Cannabis growers do not have backgrounds in pest management so do not know how to choose and use pesticides. All of these things prompted us to start supporting the growers:

  • Providing technical support for our products
  • Setting up distribution
  • Re-deploying a sales rep to become the Cannabis Support Specialist (to take all the calls going to our ag sales team)
  • Getting our relevant products listed by all the medical and recreational states (in progress)
  • Developing smaller package sizes (1 quart and 1 gallon down from 2.5 gallons)
  • Listing on Amazon

How long did it take from the inception of Marrone Bio Innovations to the company’s final launch, and what kind of team did it take to get off the ground?

I left my previous company AgraQuest on March 31 and started MBI on April 1, 2006. In May I rented a lab, in late June, found a CFO and founding investors, in August raised seed financing, and the following March closed on more than $3 million Series A. We licensed in technology while our own discovery R&D was screening for microbes and extracts of plants we could turn into biopesticide products. We launched the first version of our first product, an extract of knotweed, Regalia, in 2009. In 2016/17 we were overwhelmed with the inquiries from Cannabis growers so that is when we started focusing on it.

How many employees work at MBI and what kind of traits do you look for when hiring new team members?

We have 100 employees. This is a very good question because hiring people who ultimately are counter to the values and culture we want can be very harmful and disruptive to the company. We need employees who truly believe in biologicals as mainstream products for sustainable ag systems. Employees need to be creative/innovative, agile, resilient, of high integrity and hard-working “hunters.”

What are the biggest advantages of using your products vs. more mainstream insecticides, fungicides, etc?

Our products leave no chemical residues and they can be used right up until harvest with shorter re-entry times after spraying, due to their safety. Our products can work as well as/or better than chemicals, when applied correctly with an understanding of their unique modes of action compared to chemicals.

What is the most challenging experience and the most rewarding experience you have had in the cannabis space, so far?

The tremendous feedback we get from growers about the performance of our products for powdery mildew (Regalia) and for mites (Grandevo and Venerate). Making the crop safer for consumers, without any chemical residues. Challenging: there are many growers who are new to growing plants and controlling pests and diseases so their level of technical knowledge can be quite low. So, they try bizarre cocktails of snake oils that would never be allowed in EPA-regulated agriculture.

What sort of product training/technical support do you offer growers who might not be familiar with biopesticides, and how much training would be required for someone with zero experience?

We have a technical support team (1 MS and 2 PhD specialists) who provide the education and training for growers and their advisors for both food crops and Cannabis. For someone with no experience the key is to emphasize to read and follow the label instructions. There is a lot of information on the label and it needs to be followed.  Biopesticides are easier to learn in some sense if you are starting from scratch because they have a high degree of safety to the applicator. Our team spends time helping them understand the mode of action of our products so they get the best results. For example, Grandevo and Venerate are not “knockdown” products – they don’t kill quickly (but they stop pest feeding right away) so it is important to understand it may take 7 days to see the full effect of the product on the mites.

What’s the feedback from cannabis growers been like? Could you share a particularly favorite reaction by a grower?

We hear that Regalia has become their standard for powdery mildew control. Used preventively before the mildew symptoms show up, growers say they have “clean plants.”

As for a favorite reaction, I love the one who told me he injects Regalia into the hydroponic system every week and he found that Regalia increased the root mass considerably and he has much healthier plants. We knew that Regalia had this effect on root growth but applied to Cannabis in hydroponics was new to us.

As an ancillary company to the cannabis space, which other agricultural or similarly niche industries do you deserve?

We focus on high value fruit, nut and vegetable crops and we just launched our first product into turf. We also note that our products are popular with tobacco growers, especially the fast growing organic tobacco segment.

Where do you see Marrone Bio Innovations in 5 years — and how about 10 years from now?

Our goal is to become the largest biopesticide company (in revenues) and continue to be the innovation leader with effective science-based products across the full range of grower needs. We are expanding internationally so in 5 years we will be more diversified than we are now where 90% of our revenues are in the USA. We expect to enter the herbicide segment in a couple of years, which is the largest pesticide market (40% of the $50 billion pesticide market). Organic growers have few effective solutions for weed control and conventional growers are faced with ever increasing weed resistance to popular chemicals like Roundup/glyphosate.

What kind of advice could you offer to someone who is eyeing the ancillary cannabis space?

It is an area for growth but it is evolving as new states enter and come up with new rules, so stay nimble.


Thank you, Pam, for taking the time to answer our questions! To learn more about Marrone Bio Innovations, visit the company website at MarroneBioInnovations.com.

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An indoor cannabis crop in a licensed cannabis cultivation site in Washington state.

Arizona Senate Passes MMJ Testing Bill, Moves to House

Arizona’s Senate has approved a measure to test medical cannabis products in the state 27-3. The testing regime, which is required in all other states with medical cannabis laws, would require testing for both impurities and THC content.

The legislation would also require that medical cannabis products sold in the state are labeled correctly and that cultivators disclose all pesticides and chemicals used in the growing process on product labels along with the registered patient’s name and ID card number.

If approved, the law would require state Department of Health Services officials to begin inspecting dispensaries for “sanitary conditions for storing and processing” medical cannabis products and mold “in any building operated by the dispensary” beginning June 1, 2019.

The bill would also begin treating medical cannabis products as an agricultural commodity on June 1, 2019, which would make the products subject to agricultural rules and regulations and permit the Department of Agriculture director to “enter at reasonable times into or on a private property where medical marijuana is cultivated to determine compliance or noncompliance with any rules or orders.” The bill sets aside $2 million to the Agriculture Department “for the purpose of regulating marijuana as an agricultural commodity.”

The bill has been moved to the House but has not been assigned yet to a committee.

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