The national flag of Uruguay flying on a windy, cloudless day.

Uruguay’s Legal Cannabis Program has 16,000 Registered Buyers

Uruguayans registered to buy legal cannabis has increased more than three-fold since July from 5,000 to 16,000, according to an Independent report based on figures from the Institute for Regulation and Control of Cannabis. The government has also raised the allowable THC content from 2 to 9 percent. In August, the government indicated more than 11,500 citizens had registered with the program.

Despite the liberal cannabis policy in the nation, there is still no medical cannabis system in Uruguay and tourists are not permitted to buy cannabis products.

In September, officials moved sales from pharmacies to shops and to a cash-only system after banks closed the accounts of pharmacies participating in the program due to international anti-money laundering laws. Jorge Polgar, president of the state-run Banco Republica, indicated at the time that keeping the accounts open would prevent the institution “from carrying out any kind of operation with an international counterpart” and “cause [the bank] and its clients to be financially isolated.”

There are still 11 Uruguayan provinces that do not sell cannabis; however, according to the Independent, the government plans on opening kiosks in those areas which will sell 5-gram packages of cannabis. The state has set the price of cannabis – sold in two varieties known as Alpha I and Beta I – at $1.30 per gram.

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Commercial-grown cannabis, grown legally under the Washington state cannabis business infrastructure.

Canadian Cannabis Firm Finalizes Acquisition of Nevada Licensed Producer

Canada-based MPX Bioceutical Corporation has received final approval from both state and municipal regulators to acquire GreenMart of Nevada in a deal worth $17.81 million. GreenMart, based in Las Vegas, holds cultivation, production, and wholesaler licenses.

The GreenMart North Las Vegas facility is expected to produce approximately 1.6 million grams of flower and 85,000 grams of MPX concentrates in 2018. The business intends to apply for two Las Vegas-area dispensary licenses which will operate under the “Health for Life” brand.

“Acquiring GreenMart gives us a meaningful head start towards establishing market share in the new adult use market in Nevada which is estimated to grow to $630 million by 2020. We are encouraged by the strong demand we are seeing in the Nevada market, and we anticipate that the addition of this Las Vegas enterprise will be materially accretive to MPX revenues and earnings in 2018.” – MPX Chairman and CEO Scott Boyes in a press release.

Brightfield Group ranks Nevada as the fourth best state to make cannabis investments. ArcView Market Research projects the state market is expected to grow at a compound annual growth rate of 51 percent.

This is the second Canadian firm to enter the U.S. market in the last month as CannaRoyalty announced in late November that they agreed to acquire California cannabis companies Kaya Management Inc. and Alta Supply Inc.

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AG Sessions Cites Drugged Driving as Reason Cannabis is Dangerous in Leaked Video

In a leaked video obtained by ABC News of a question-and-answer session between Department of Justice interns and Attorney General Jeff Sessions from an event last summer, the former Alabama senator claimed that drugged-driving was responsible for more vehicular deaths than alcohol last year and did not directly answer a policy question about why his stance on guns is more lax than his cannabis stance.

“You support pretty harsh policies for marijuana and pretty lax gun control laws – I’m not even sure where you stand on the assault weapons ban – so I’d like to know since guns kill more people than marijuana, why lax laws on one and harsh laws on the other?” an unnamed female intern asked the attorney general.

“Well, that’s an apples and oranges question,” Sessions says, chuckling, before defending his gun stance by citing the Second Amendment.

“The Second Amendment – you are aware of that?” he begins as the audience laughs, “guarantees the right to the American people to keep and bare arms and I intend to defend that Second Amendment – it’s as valid as the First Amendment. … Look there is this view that marijuana is harmless, and it does no damage. I believe last year was the first year that automobile accidents that occurred were found to have been caused more by drugs than by alcohol.”

Sessions is citing the Governors Highway Safety Association report which found that 43 percent of motorists who died in traffic accidents had drugs in their system, compared to 37 percent who tested positive for alcohol; however. experts argued that the report should be taken with some caution because only 57 percent of drivers killed in car accidents were tested for drugs.

Russ Rader, spokesman for the Insurance Institute for Highway Safety told CNN that there also “isn’t very consistent testing for drivers who are killed in crashes with regard to drugs.”4

“We don’t have a good handle on what to do about it, but we do know how to address alcohol impairment, which remains a major problem,” he said in the report. “Another problem, particularly with marijuana, is that people often combine the two, so how do you separate them?”

Sessions went on to say that “marijuana is not a healthy substance” and the American Medical Association’s opinion is “crystal clear” and aligned with his own. He asked the intern whether she agreed with him and the AMA, to which she responded, “I don’t.”

“Okay, so, Doctor whatever-your-name-is, so you can write to the AMA and see why they think otherwise,” Sessions remarked.

Although the video is from the summer, Sessions has not budged on his prohibitionist view and has urged Congress to restore funding to the Justice Department for federal enforcement of state-legal cannabis programs.

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Medical Cannabis Firm INDIVA Ltd. Entering Toronto Stock Exchange, Plans Major Expansions

Following a string of internal successes and in keeping with the rapid expansion of Canada’s national medical and adult-use cannabis markets, Canadian cannabis firm INDIVA has carried out a reverse takeover with the publicly listed company Rainmaker Resources Limited. The RTO is closing this Friday, December 8 and the new publicly listed company — which will be dubbed INDIVA Limited — could list on the Toronto Stock Exchange as early as next Monday, December 11.

In two separate offerings that culminated last month, Rainmaker and INDIVA earned just over $15,000,000 in subscription shares — money that the company has earmarked for a major expansion of its London, Ontario growing facility. The RTO has positioned INDIVA as a new entrant to the Toronto Stock Exchange without the hassle or costs of an actual IPO and will allow the company to focus on maintaining smooth operations and growth during its transition to the public sphere.

“We are very pleased to have exceeded our goal of raising $15,000,000 with these two concurrent financings and to now be in a position to move forward with the expansion of our London facility to 40,000 square feet,” said Niel Marotta, Chief Executive Officer of INDIVA. “I would like to thank our team at INDIVA and our partners for their hard work to get this financing completed.”

The planned expansions will be a 500% increase in production square-footage for INDIVA. This, coupled with its 8,000 square feet of already ACMPR-approved indoor production space, will help INDIVA strengthen its presence in the cannabis space as a company that prides itself on high-quality strain selection, cultivation practices, and client care processes.

Moving forward (and with Canada’s adult-use regime set to launch next July), INDIVA has also been scouting additional grow sites, including a 7-acre site that has been identified near Cornwall, Ontario and a potentially massive grow site (50-100+ acres) outside of London, Ontario. Additionally, the company has promised to release infused edibles and other client-friendly cannabis products as Canada’s fully legal industry comes online.

To learn more about INDIVA, their impending listing on the TSX, or the future of cannabis in Canada, visit the company’s website at INDIVA.ca or send an email to contact@indiva.ca.

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A close-up shot of a cannabis plant grown under Washington's I-502 market regulations.

Prince Edward Island, Canada Release Cannabis Rules & Public Opinion Survey Results

Prince Edward Island, Canada has released its provincial cannabis industry regulations and the results of a public survey used to craft the rules. The purchasing age is set at 19 – in line with the survey results which found 47 percent support for aligning it with the drinking age in the province. Eighteen percent favored setting the age at 18-years-old and another eighteen percent preferred 21, while just 10 percent favored 25.

The government will control distribution and sales – including online – through the PEI Liquor Control Commission. The decision diverges from the survey results, which found 61 percent supported privately-owned retailers, and just 19 percent supported a government-run regime. Fourteen percent each favored stores where alcohol and tobacco are sold, respectively.

Interestingly, 34 percent of the survey respondents supported “providing funding and other supports to businesses involved in production and retail of cannabis products.”

In line with federal guidelines, Prince Edward Island will allow four home-cultivated plants per-household. The majority of survey respondents, 61 percent, indicated that while adults should be allowed to grow their own cannabis it should ultimately be the decision of the private property owner whether cannabis can be grown at the residence. Only Quebec has moved toward prohibiting home grows.

Manitoba, Nova Scotia, and Alberta have also unveiled their provincial rules, while Saskatchewan officials released public survey results last month that they said would be used to devise the provincial rules.

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Eugene, Oregon Cannabis Lab For Sale Following Allegations Owner has Neo-Nazi Ties

OG Analytical, a cannabis testing laboratory in Eugene, Oregon has seen a “100 percent decline” in business according to its lab director, who called the brand “dead” after Eugene Antifa offered evidence that the owner participated in neo-Nazi activities, according to a report from The Oregonian/Oregon Live. Bethany Sherman, CEO of OG, indicated she plans to sell the company following the report.

The activists discovered that Sherman operated a Twitter handle, @14th_Word, which, according to the Anti-Defamation League, refers to the fourteen-word statement: “We must secure the existence of our people and a future for white children.” It is alleged she also supplied food to neo-Nazi meetings and gatherings. The co-owner of the lab, Matthew Combs, was also accused by the activists of organizing events for the American Patriots Brigade, which serves as a support group for American Front, a white nationalist group.

Lab Director Rodger Voelker called the situation and the allegations “horrific” and “disgusting,” adding that Sherman accused her employees of “not supporting her” when the allegations came to light.

“It blindsided all of us,” he said in the report. “It’s unbelievable that you can work with people – our relationship is purely professional. We don’t share personal beliefs, religious, political or anything else. This is just unbelievable.”

Sherman wrote to the Oregonian/Oregon Live refuting the claims, arguing that her “only crime is a thought crime.”

“I believe that the world is tapestry of beautiful colors, each one full of a wealth of cultural heritage, and that each culture has a right to be proud of their heritage, and an obligation to protect and preserve that culture. I believe that this tapestry is not exclusive of European Americans, and I find it extremely disconcerting that it is admired and revered to have ‘Gay Pride,’ ‘Black Pride,’ ‘Asian Pride,’ or pride in any other cultural heritage, but if you have ‘White Pride,’ it automatically makes you a Nazi, and you are ostracized, attacked, and lynched by your community. I admit, I am proud that I am white, and I’m not ashamed of my heritage. And I admit that I have been so conditioned to feel shame about this pride that I discreetly sought community where I could. Knowing the potential ramifications of my actions, I did my best to keep them incredibly discreet. … I am the victim of a hate crime, perpetrated by an anonymous organization whose primary aim is to ruin other peoples’ lives. I have never made any such attempts at hurting any other human being, in any way (including via defamatory articles or social media posts) for any reason, nor have I EVER made any discriminatory overtures. Let’s be clear about this: Neither myself, nor my company, have ever, EVER practiced, preached, or recruited anyone to practice or preach hate or hateful rhetoric in ANY way.”

Voelker said he plans on finishing the samples the company agreed to test and is meeting with attorneys to discuss options.

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Two cannabis colas about to be harvested inside a Washington cultivation site.

Nova Scotia, Canada Releases Provincial Cannabis Industry Regulations

The legal purchasing age for cannabis Nova Scotia, Canada will be set at 19 and the provincial Liquor Corporation (NSLC) will sell the product through its liquor stores, according to regulations unveiled by the Nova Scotia Department of Justice. The NSLC will also oversee distribution and online sales.

The number of retail locations cannabis will be available has not yet been determined; the 19-year-old purchase and possession age is in line with regulations in New Brunswick, and Newfoundland and Labrador. The province will establish penalties for youth possession up to five grams.

Minister of Justice Mark Furey said officials chose the NSLC due to their “experience and expertise” distrusting and selling “restricted products.”

“As we prepare for the legalization of cannabis, our top priority has been the health and safety of Nova Scotians, especially children and youth. The policy decisions announced today, and those yet to come, have been greatly informed by the feedback we received through our extensive consultation, as well as the experience of other jurisdictions.” – Attorney General Furey

Under the regulations, consumers will be able to grow up to four plants per household and possess up to 30 grams in public. The possession limit is in line with federal regulations.

So far, Quebec, Manitoba, Prince Edward Island, and Alberta have each unveiled their provincial rules. Saskatchewan officials released public survey results last month that they indicated would be used to promulgate the provincial regulations.   

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Dr. Perry Solomon: Cannabis Education for the Mainstream Medical Industry

Dr. Perry Solomon is the Chief Medical Officer of HelloMD, a telemedicine firm that connects would-be medical cannabis patients with canna-friendly doctors in California and New York.

In this episode of the Ganjapreneur.com podcast, Dr. Solomon joins our podcast host TG Branfalt for a discussion about the results of HelloMD’s recent patient surveys (which have led to some revolutionary findings regarding the plant’s effectiveness as an opioid exit drug), what continues to hold the medical cannabis movement back from consolidating with the mainstream medical industry, why and how telehealth is important for increasing patient access to the plant, and more!

Tune in via the player below or scroll down to read a full transcript of the interview.


Listen to the podcast:


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 really delighted. I’ve got Dr. Perry Solomon, Chief Medical Officer of HelloMD. They’ve done a lot of really good research, really good reports coming out of there. How are you doing this morning?

Perry Solomon: Great. Great, Tim. Thanks for inviting me to come and talk about cannabis and medicinal uses, and a little bit about HelloMD itself.

TG Branfalt: I’m super-thrilled, like I said. Before we get into the meat of this interview, tell me about yourself. What are your credentials? How did you end up in this space?

Dr. Perry Solomon: Well, I graduated from Columbia College of Physicians and Surgeons in New York. I’m a board-certified anesthesiologist. About two and a half, three years ago, I was introduced to one of the founders of HelloMD, and we were just starting out in terms of providing telehealth evaluations to patients in California. We were introduced and met, and we talked about the need of having a medical officer, a chief medical officer, sort of overseeing the physicians.

I did research on cannabis, its uses, and gave a little talk on cannabis at a senior facility that takes care of people 55 and older, and surprisingly, they had a cannabis club already … this was almost three years ago … and used everything for pain, used cannabis for pain instead of opioids, and it worked. They were all amazed that it worked, and I was quite frankly amazed as well and did more research, and found that in fact it really has a lot of beneficial uses for medical conditions, something that as a physician and graduating a number of years ago, still hadn’t been taught or talked about at all, and even currently very few physicians know about it.

I got involved in the company to educate physicians, and be in charge of a lot of content that’s created on HelloMD and to interface with the general public and physicians, informing them about what cannabis is essentially, and how it can help people with various medical conditions.

TG Branfalt: You said that the telehealth aspect of HelloMD was your introduction to them. Tell me a bit more about HelloMD, what you guys do, now that you’re releasing all these reports and this research. Give me a little broader idea of what HelloMD does.

Dr. Perry Solomon: Sure. Well, basically what we’ve been doing for two and a half years are the telehealth evaluations, which essentially … you know, as a matter of fact, we just started doing it in New York as well, over about a month, probably six weeks ago. Started telehealth in New York, because New York and California are the two major states that allow these types of evaluations, therefore enabling access to people who couldn’t see physicians for whatever reason, mobility, et cetera. Mobility, privacy, areas of town they don’t want to go, privacy issues, and just the ability to open access to people that can’t get to a physician.

What we found was after we started seeing more and more patients … we have now about 75,000 recommendations out in California in the past two and a half years … we were able to see and do surveys of these patients, because we have the largest number of patients in one space, in one database, and we’re able to see patterns and types of uses of cannabis and want to be able to mine this data and ask our patients, who are very cooperative and willing to share their information and the experiences they’ve had with cannabis with other people, to educate them as well.

The first study that we did, essentially, looking at the time at 17,000 patients, was in January of 2016, where we just did a general survey of broadly what patients use cannabis for, their age, their demographics, male/female, how they use it, and the types of education, age brackets, et cetera. We found very interesting facts in terms of pain being the number one issue, insomnia, depression, anxiety being the top tiers of what people use cannabis for.

The next study that we did, again using the patient base that we had, was looking at pain and opioids and cannabis, and we did that with the University of California at Berkeley and we just published that in “Cannabis and Cannabinoid Research” as an official IRB … Institutional Review Board … study through Berkeley, that we asked people, well, what were they able to do with opioids versus cannabis. Not surprisingly, except that, for the vast number of people that reacted to the survey, which was over 3,000 patients, 97 percent were able to get off and decrease their opioid use, and 95 percent of the 3,000 who answered were able to and preferred cannabis over opioids for use.

What we want to be able to do is to educate people and to poll our patients and the general public who are interested in cannabis to see how it is that they them and what medical conditions they’re able to use it for. The latest one that we did was with the Brightfield Group in Chicago, looking at specifically just CBD, and found that 80 percent of the people were able to get off their current medication and use CBD products, whether it be from hemp or from cannabis, to get off medication that they traditionally use, and able to use CBD, which is far safer than whatever it is they had been using previously. We want to try and use the data that we have to help patients understand, to help manufacturers understand what products they can manufacture that help people with specific medical conditions.

TG Branfalt: Let’s talk a little bit more about this idea of cannabis being a therapy for pain patients and opioids and this whole thing. On top of your studies, a National Institute on Drug Abuse study with the Rand Corporation found a decrease in opioid prescriptions in medical cannabis states. Paired with your studies, we’ve got a lot of ground to cover here, but let’s start with this. As a physician, what does all of this indicate to you, and what’s your opinion on cannabis being referred to as a, quote, exit drug?

Dr. Perry Solomon: Well, I think we’ve shown it is an exit drug for opioids, just in terms of 95 percent preferred it over opioids. What it means as a physician to me, and what I try to impart to other physicians when I speak with them, is that, yes, I understand, because obviously I was in the same boat in terms of never being educated about cannabis. The endocannabinoid system was not even taught when I went to medical school in the, whatever, ’70s, ’80s, et cetera, and is still … to this day, only one medical school teaches a course on the endocannabinoid system, and 13 percent of the other 143 mention it in some way, shape or form, but there’s still a reluctance in medical schools to teach anything about this.

Therefore, doctors are coming out of medical school really ignorant about it and essentially being introduced to it by their patients, quite frankly. A physician will sit there and talk to a patient and some of them will say, “Yeah, I want to use this instead of opioids. I want to use this type of medication instead of whatever, for my … for my menstrual pains, what do you think,” and they’re looking at them with a blank look on their face because they have no idea what they’re talking about. Over the past year or so, it seems more physicians are more curious about wanting to learn more about cannabis, to see what it is that’s out there and to see how it affects their patients.

I try to educate the physicians that this is a legitimate type of medication, and specifically talking about opioids, it’s an option that perhaps they can’t recommend their patient to do personally themselves … I’ll go into why that happens in a few minutes … but at least to be open to say, “Yes, cannabis would be something that you could try instead of opioids, and perhaps you should get a recommendation from a physician who is able do this for you.”

That goes back to why they’re not able to do it themselves, and it still is, quite frankly, a Schedule I drug according to the DEA, and so some physicians are reluctant to write a recommendation for cannabis, for something that’s a Schedule I substance, and whether it’s the fear of that or they’re in, for example, the VA system, and because it’s a Schedule I and the VA is a federal organization, they can’t talk about it. They definitely can’t recommend it. That’s changed recently where they can, in some instances, discuss it, but they won’t be able to write a recommendation for it.

Physicians, though, are getting more aware. They’re getting to the point where, yes, it’s something that they can suggest to their patient to do, and we’d be happy to educate them more about it … the physicians, that is … to be able to say, “Yes, this is an option to look at, and you should learn about it as best you can.”

TG Branfalt: In your opinion as a physician, what’s it going to take to get more of these doctors and other medical professionals that are able to recommend cannabis in legal states on board with getting involved in the program, or openly having these discussions?

Dr. Perry Solomon: Well, we hope these types of studies that we’re doing at HelloMD, with the Brightfield Group, with Berkeley and other major institutions across the country, to be able to say, “Listen, we can’t do … ” and like I said, I went to Columbia, a very traditional school, like a lot of physicians, and really not just Columbia. Most medical schools and the professors who teach there, you want double-blind studies. You want this type of study, that type of study, and quite frankly there’s been over 8,000 studies published about the endocannabinoid system, cannabis, what works, what doesn’t work.

The fact is most of them were published overseas, and quite frankly, medical schools and U.S. physicians can be a little snobbish in terms of where the studies come from, how they’re done, and with the FDA having a Schedule I license on cannabis, the studies based in the U.S. are very difficult to do. They’re very time-consuming, very costly, and the studies will take several years with that type of outlook in terms of the results that they want to see, to be able to come out so people actually see the results perhaps one, two, three years later.

They are starting to look at studies from Israel, from Great Britain, from Germany, where these types of studies have been going on for years. Yes, they are overseas, but they’re legitimate studies. Hopefully at least the surveys that we do with the patients is enough to convince the physicians to start looking at those studies as legitimate ones and to perhaps incorporate it into their base knowledge of cannabis does function, does work for certain medical conditions.

It doesn’t work for everything. It’s not a panacea for every disease in mankind, but there are conditions for which it definitely has been shown to work. The National Academy of Sciences, a government agency, in January came out that there was enough documentation that they went over that cannabis is an alternative for chronic pain. It helps chronic pain, and therefore is an alternative to opioids.

TG Branfalt: In these studies that you’ve conducted, that you’ve been a part of, what’s been the most surprising thing to you to come out of these?

Dr. Perry Solomon: Well, honestly the 95 and 97 percent was stunning to me, personally, in terms of that’s almost everyone was able to get off and decrease the use of their opioids from what they had been taking previously. Now, with 91 deaths a day and three-quarters of them due to prescription drugs, you’re talking about 60 people a day perhaps not dying because they’ve been taking cannabis, which you can’t overdose from, instead of opioids. That number just blows me away in terms of the number of lives that can be saved if patients, one, and two, physicians, try and suggest it to their patients.

Now, you know I’m an anesthesiologist. I’ve written pain medication, and there is an issue for physicians to be willing to do that. For example, Tim, the patient that stands in front of me and says, “I have chronic back pain,” for example, and they have a prescription pad that says Percocet. You can take one Percocet every three or four hours, PRN for pain, and it’s very predictable and you know that pill has this many milligrams of Percoset, Percodan, in it, OxyContin. You know, it has a specific, measured dose of narcotic.

Then you have the other prescription pad and it’s for cannabis. Well, at this point in time, what’s the physician supposed to write? One puff? Take a bite of this brownie? Take a throat … a lozenge, take this hit out of a vape pen? It’s all very nebulous, and so without rigid controls as to what’s in specific doses of a cannabis puff or a cannabis metered dose, what’s in this edible that’s nationally standardized across at least maybe even individual states, so a physician can actually write something.

The other problem is that it’s unfortunately unlike medication the way it’s been traditionally prescribed, in that the medication itself reacts differently with the people. What works for one person may not in fact work for the other, so the patient may need to take a little bit less and this patient may take a little bit more, and the physician doesn’t really understand that or know in advance how much to give the patient. A lot of this … and we tell our patients, and everyone quite frankly does this … you start low and slow. In other words, you start with a low dose, start building it up to see the effect it has individually on you, and then that’s the dose that you stick with.

Again, it’s going to be different per person, so the physician needs to be educated about this as well, which is one of the reasons, quite frankly, that instead of the reschedulization of cannabis perhaps from a I to a II, which is Percocet, or a III, to Vicodin, the physician’s always going to have that trouble. Quite frankly, I think it should be deschedulized altogether and just have it in a pharmacy or wherever, where the patient proves they’re of age and ingredients that have been documented are on the label, and it’s used to effect. In other words, the patient again needs to start themselves and see what it is that works for them, sort of like what alcohol is. You know, you take one drink, this cocktail works for you. Many people are not going to have to have two or three, but if that person has a high tolerance, they may in fact need more. The same with cannabis.

TG Branfalt: We’ve got a lot of ground to cover, and this is all just so fascinating to me, getting the insight of a physician on these issues, these very, very serious issues. Before we keep digging, we’ve got to take a short break. This is the Ganjapreneur.com podcast. I’m TG Branfalt.


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TG Branfalt: Hey, welcome back to the Ganjapreneur.com podcast. I’m your host, TG Branfalt, here with Dr. Perry Solomon, Chief Medical Officer for HelloMD. Before the break, we were talking a bit about the stigma that exists within the medical community. I want to talk to you a bit about dispelling the stigma for would-be patients. How do you get some of those pain patients on board who have been taking the opioids for years, or are not … they’re just not ready to take the cannabis plunge? How do you work with them? How do you get them on board?

Dr. Perry Solomon: Well, you know, it’s a process. Well, how would a patient approach it? We would see the patient, quite frankly, when they were already ready to use cannabis for that, because they’re coming to us for their recommendation. For example, when we give lectures at various communities, senior care facilities or senior communities, we try and say … listen, the effects of the opioids that they’re taking are huge in terms of … obviously the first one that comes up is constipation, and we ask if people are constipated from taking opioids. You know, that’s a huge issue, and obviously … I don’t know if you saw the Super Bowl, I think it was two or three years ago. A company came out with a medication to cure the constipation that the medication caused, and so they’re actually making money both ways in taking the medication for the opioids and giving you a medication … Movantik is what it’s called … to get rid of your constipation, so the side effects of that.

They stoop, or some people get nauseated from opioids. Some people just get dizzy and dysphoric and can’t drive because they’re just dizzy all the time from taking opioids, or nauseated. We try and educate them and say, “Listen, these are side effects. You have pain, you may have chronic pain, you may be on OxyContin,” so the education of the patients to say, “Here, here’s a medication. Yes, you may have been a child of the ’60s and ’70s, you told your kids say no to drugs, which is all well and good,” and no children, I don’t feel, unless they have a medical condition to take it for, should be using cannabis, because there are effects that it has on their mental abilities, et cetera.

For these people who were trained to say no on drugs, the Nancy Reagan mantra, the times have really changed in terms of the ability of the cannabis community and manufacturers to make more targeted types of medication for certain medical conditions, for pain for example, or for sexual dysfunction for women, for different types of products that have different concentrations of THC and CBD. Someone might say, “Listen, I just want something for inflammation, I have Crohn’s or whatever, I don’t want to get high, I don’t want to have that dysphoric, psychoactive effect.”

Well, there are types of cannabis now, whether it be a plant, whether it be a vape, whether it be a tincture, that’s able to concentrate a CBD, which doesn’t have the psychoactive effects, versus the THC, which does have it. Someone would take something with a very low THC level and a high CBD level, and wouldn’t get the effect that perhaps they’re afraid of getting. It’s the ability to tell these patients and people, consumers, to say, “Yes, there’s an option. You don’t always have to use cannabis.” They might say, “if I’m using pot, I’m going to get high.” That’s just not true.

TG Branfalt: We have this just crazy death toll from opioids. It’s a national health crisis. They call it the opioid epidemic, I’m sure you know that. In your opinion, in this fight, why haven’t states fully embraced medical cannabis as a tool, given the various studies, reports and anecdotal evidence?

Dr. Perry Solomon: Well, I mean, there are only 30 states now, or 29 and D.C., that allow medical cannabis, and it is a fight from state to state even in those. Some of them haven’t even had pain, chronic pain, as an indication for being able to use cannabis instead of opioids. I just gave testimony to the California Medical Board in terms of using our medical board, having them help promote the California model of, one, using telehealth to increase access, and two, therefore not requiring a physical exam, so more patients can actually obtain cannabis to be able to use instead of opioids.

The states like West Virginia, New Hampshire, Vermont, all these states that have horrific death tolls due to opioid overdoses, it would be beneficial to have telehelp so that patients who can’t get to a doctor … because quite frankly, there’s not that many doctors that are doing recommendations in states where they need to have a storefront, because of the reasons I’ve mentioned previously. They don’t want to get involved in the DEA, they don’t want to have to be known as the pot doctor, and so other physicians don’t refer patients to them because they don’t understand exactly what it is they’re doing in terms of using cannabis to try and exit out of opioids.

The legislatures need to be aware of this. I think, again, with more and more studies like what we’re doing, with more and more surveys, with more and more pressure, and hopefully programs such as yours, we’ll be able to help these people understand that there is a way, there is an alternative other than opioids, to be able to treat their chronic pain and hopefully decrease the amount of opioid deaths.

TG Branfalt: About six months ago the New Mexico governor actually vetoed a bill that would have added opioid use dependence to their medical cannabis regime. I’m wondering if, in your opinion, this is something that should be added to these regimes, and whether or not just adding the chronic pain is enough, or should the state boards who make these recommendations go the step further and add that disorder?

Dr. Perry Solomon: You know, there’s a clinic in California, down by Los Angeles, that actually is using cannabis to exit out of opioid abuse, so there is precedent for that to be done. Again, whether or not it’s education for this gentleman, or what it would take for them do it, but I think that it’s an option that should be on the able for everyone treating opioid dependency to be able to try, especially in states where it’s legal in the first place. I think it would definitely be an option that should be out there for treatment centers to be able to use it for that.

TG Branfalt: Then are there any underreported conditions for medical cannabis that it may be useful in, that you’ve discovered in your conversations with patients, other health professionals and in your research?

Dr. Perry Solomon: No. I mean, the top four that I had mentioned before, pain, anorexia, migraines, depression, anxiety, are really the top ones. I mean, it goes all the way down to a few patients find it useful for this, so many medical conditions, innumerable medical conditions, like I said, whether it works for all of them, I don’t know. We try and concentrate essentially the surveys and the studies on the ones that really affect the most people.

Quite frankly, for example, there’s a cannabis drug called Foria from a company, Foria, that’s been treating menstrual cramps. It’s something that’s a suppository that’s put into the vagina. Just think of all the medical conditions and the delivery systems that’s able to be used for this. There’s many medical conditions where, well, let me try cannabis, maybe a different way to administer it, whether a different concentration, a different type of THC/CBD mixture, a terpene composition.

In other words, eventually what’ll happen at some point in time … and there are companies, medical genomics, who are looking into the genetics of the plant and the genetics of people … and hopefully at some point in time have targeted cannabis. In other words, someone has a specific medical condition with this gene sequence. Let’s see if we can develop a specific compound for that person and that specific medical condition. If it’s not specific to the person, then perhaps the type of medical condition that they have, we can create a specific medication, cannabis medication, specifically for that condition.

That’s really the gold ring that everyone’s trying to do, that they can have an oil or a tincture or a plant that specifically works for depression, specifically works for anxiety, specifically works for Crohn’s disease and autoimmune disease. That’s the hope, that in some point in time that will happen, and then beyond that, it’ll be targeted to an individual person and their genes, because each person in the medical condition itself has a different reaction to the medication based on their genetic components. Eventually it’ll get like that. We’re far away from that happening, but that’s the hope that will happen at some point in time in the future.

TG Branfalt: That’s a really incredible thing to think about, that we could eventually come to a place where you can breed cannabis for individuals, for them to use as a therapy. That’s really cool to think about. I want to talk to you a bit more about telehealth. Before we do that, we’ve got to take a short break. This is the Ganjapreneur.com podcast. I’m TG Branfalt.


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TG Branfalt: Hey, welcome back to the Ganjapreneur.com podcast. I’m your host, TG Branfalt, here with Dr. Perry Solomon, Chief Medical Officer for HelloMD. I want to talk to you a bit about telehealth. How has telehealth impacted the medical cannabis space?

Dr. Perry Solomon: Well, I mean, I can talk about California, obviously, because I’m most familiar with it, and it started in October of 2014 when the Medical Board of California realized that telehealth was essentially something that’s been sweeping the country and that’s a viable means of evaluating patients for various medical conditions, from various physicians. They changed the regulations in October of ’14 to say that telehealth evaluations for cannabis specifically was acceptable, as long as you meet the standards of care with the history of the patient, what’s going on, and you speak with them using remote capabilities.

When we started in March of the following year, 2015, the people were flocking to us in terms of saying, “Thank goodness there’s a facility, there’s a way to talk to somebody like this, using my laptop, using my cell phone, using my iPad or whatever, to talk to someone, because there’s no doctor near me. There’s no one near me to be able to speak with, go into their office, to do an evaluation” Or the physician is in an area of the town where they can’t park, it’s a seedy area of town, they worry about privacy issues, “Who’s going to see me in essentially a pot doctor’s office? I have mobility issues, I have a wheelchair, it takes me hours to get anyplace,” and it just went on and on and on.

The way we looked at it, and I continue to look at it, is that it increases access to people that normally can’t get to a physician, where they can’t see a physician face-to-face. We’re able to take care of and service this population across California. My hope is, because telehealth is used in 49 states in the country, almost 50 now, in some way, shape or form, to be evaluated for a myriad of specialties, not just people looking for cannabis, of course, but for everything. Teledoctors, all these companies that are doing millions and millions of evaluations across the country.

Yes, they’re treating conditions, otitis media, ear problems with a kid, or a sore throat or creams or ointments, et cetera, which is great, and they better to be able to do that. Well, here we’re using telehealth. If we can do it in other states across the country other than California and New York, just think of the number of people, as I think I mentioned previously, that would be able to be evaluated for their pain, for example, and to say, “Yes, now you can take cannabis instead of taking the opioids,” and again decrease the opioid epidemic by being able to increase the access to the maximum number of people, to be able to access the ability to get cannabis.

TG Branfalt: If there’s 49 states that allow telehealth and then there’s 26 states plus D.C. that have medical cannabis regimes, what prevents these regimes from allowing telehealth? It seems sort of nonsensical.

Dr. Perry Solomon: Yes. Well, they do. They specifically … in other states, they specifically exclude cannabis because when they had the telehealth laws in the first place, they just said that. They just made them as evaluations, and then separately just several years ago when it started, in terms of the ability of the laws across the country sweeping to legalize medical cannabis, they make these medical cannabis regulations, the legislature does, and specifically say, “Examinations need to be made in person.” That’s where hopefully the push from our Medical Board of California, for example, or us at HelloMD or other interested parties, would be able to lobby the legislature to be able to do telehealth evaluations.

Of course, there’s going to be arguments and fights, perhaps even and probably from physicians, saying that, “Well, it’s a Schedule I drug, we don’t know anything about it, there’s been no studies, why are you doing this, a physical exam is vital for being able to do this, I don’t care what the telehealth laws say.” There’s arguments from physicians and possibly ignorance from legislatures as well, to be able to want to use tele-evaluations for helping people to get access to cannabis.

TG Branfalt: It sounds incredibly frustrating from your point of view, but move me on a little bit. How do you stay up to date with the newest products and therapies that are available?

Dr. Perry Solomon: Well, we have on our site, you know, manufacturers who present their products, and we introduce them, we interview them and talk about them. When someone says, “I have a vape pen that vibrates when you’ve done with your metered dose,” like hmbldt, for example, that’s unusual, that’s different. I mean, if someone says, “We have a different cartridge and it’s a different color or something,” that’s okay, but manufacturers come to us to introduce their products because they know that if it’s really unique, if it’s really special or it’s something that’s different than what’s been in the market previously, that we’ll put it out and say, “Hey, look at this new product.”

We have hundreds of thousands of members across the country that look to us for information. We do obviously the reading in medical journals, whatever comes up from my perspective, but we have a very actively engaged member base who also introduce products to us and say, “Hey, Perry,” or Pamela or Mark or whomever, “I ran across this product in this state,” for example, “and what do you think about it, and let me introduce this to you.”

We get feedback from our patients as well, and our members as well, introducing us to products, because we can’t be everywhere. Obviously we’re based in California and also now New York, but there are also all the other states where different products are available or not available, because something that’s manufactured here can’t be shipped over to a different state, just because of the interstate transport laws, and what’s available and what medical conditions.

Like for example, in New York State, you can’t smoke flower, but obviously you can here in California. Different states have different types of products that are available. Even though something’s a whiz-bang thing here in California, perhaps no one else in the country can get it, so we have to try and differentiate what products are available in what areas of the country.

TG Branfalt: Finally, I’ve got to ask. As a physician, what’s the most medically fascinating thing to you about cannabis?

Dr. Perry Solomon: Well, here’s essentially a weed that has unbelievable medical potential. You know, yes, a lot of plants, obviously the opioids come from a plant as well, but it’s the many different types of strains and derivatives that we’re going to be able to get from a single plant, from the 100 or so compounds that make up the plant. Eventually and hopefully there’ll be, like I said before, more specific products made from a single plant to help multiple medical conditions.

Instead of the mold on bread for penicillin — that’s great, it treats what penicillin treats. Here, for example, the plant can treat a range of medical problems and medical conditions from one single plant. I think it’s been around for thousands and thousands of years. In Asia, they’ve used it forever, and South America. I think Western medicine needs to open their eyes and to say, “Yes, there are options out there. Let’s look at this plant and not make it so difficult to do research, not make it a stigma for people to use, because it does work in so many areas.”

TG Branfalt: Finally, what advice would you have for other medical professionals that are exploring, maybe dipping their toes into becoming recommenders, or those medical professionals that aren’t yet in the space but might be considering it, who are listening?

Dr. Perry Solomon: There are courses that are given around the country. There’s online courses. The Society of Cannabis Clinicians has a CME-approved course that we make all of our physicians take in California. Different states now have different regulations for taking courses. In New York, our physicians and nurse practitioners take the TheAnswerPage course, which is given out of Boston, which is mandated to be done in multiple states. In Florida it’s mandated, in New York it’s mandated that they need to take these courses.

It’s really the first step, to take courses that are CME, Continuing Medical Education-approved courses, to be able to take these to get a basic knowledge, a background of cannabis, the history, how it grows, what it’s used for, et cetera. I’ve encouraged physicians and nurse practitioners and anyone interested in getting further depth of knowledge to take these types of organized courses. There are courses given all over the country about it, but of course you have to travel. These are online courses that make it easier for a physician and just the general public to be able to take, to be able to educate themselves about cannabis in an organized manner.

TG Branfalt: Well, Dr. Solomon, I really want to thank you … I know you’re a busy guy, I know you have a lot going on … for taking the time to come on the show. This has really been an enlightening conversation for me and I’m sure for the listeners. Where can people find out more about the services that you offer at HelloMD?

Dr. Perry Solomon: Well, it’s right on our website, www.hellomd.com, and patients and members or anyone could really register your name. That’s all you do, and you’re able to ask questions. The first page is just “Ask a question here,” and as you type in your question, there have been thousands and thousands of questions answered and asked, and people may have asked the same question. You can see the responses from our physicians, from manufacturers, from patients in different areas of the country, trying to find out what works best in their area and what works best for their medical condition. If you need a cannabis recommendation in California, we’d be happy to take care of you, or in New York as well.

TG Branfalt: Well, thanks again for coming on the show. I appreciate everything that you’re doing to raise awareness and really being on the forefront of these studies, because everyone knows that we need a lot more of those in order to change the public’s perception, so godspeed to you. Thank you so much.

Dr. Perry Solomon: Well, thank you for having me, Tim. I appreciate the opportunity to talk.

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

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Los Angeles, California Releases Adult-Use Regulations

The Los Angeles, California City Council has approved regulations for the adult-use cannabis industry which include social equity provisions, rules for operating a retail shop without a license and restrictions on where cannabis businesses can be located, the Los Angeles Daily News reports. The social equity rules require regulators to process two social-equity applications for retail dispensaries for every general operator; the ratio for cultivators and manufacturers is one-for-one.

Councilman Marqueece Harris-Dawson, called the city’s equity program “the most aggressive and the most progressive and most just” anywhere in the U.S. The provisions require business owners to meet certain criteria, such as low-income status, or being located in an area with a disproportionate number of cannabis-related arrests.

A city analysis found that those most affected communities include south, central, and downtown Los Angeles; Watts; and East Hollywood.

“It is 84 years and one day since the United States instituted prohibition on alcohol, cannabis and a host of other drugs. The express purpose of those policies was to control unruly negro men in the South. In 1970, Richard Nixon expanded and instituted what we referred to as the War on Drugs to control the Black Panther party, activists, blacks and anti-war hippies. And cities and states across the country have been doing that, carrying out that policy, sometimes knowingly and sometimes unknowingly.” – Councilman Harris-Dawson

Under the rules, current operators would be given first crack at licenses in the first 60 days of licensing, so long as they apply for “provisional licenses” which will be available at the start of 2018, according to the report. The regulations also call for $20,000-per-day fines for retail non-licensed operators and call for misdemeanor penalties carrying a $1,000 fine, and/or six months in jail. Dispensaries are also required to have a 700-foot buffer from parks, libraries, schools, and daycares, while the “sensitive-use” buffer for cultivators, manufacturers, and delivery services is set at 600-feet.

Other major California cities, including San Francisco, Oakland, and San Jose, have also released their municipal regulations.

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Two enthusiasts enjoy a cannabis vape pen and cups of tea at a wood-carved table.

‘Cannabis Clubs’ Being Considered in Massachusetts

A Massachusetts Cannabis Advisory Board subcommittee has recommended that state regulators allow public use – or so-called cannabis clubs – under the state’s adult-use regime, which they suggest could keep cannabis products away from children but also limit how much product is illegally diverted out-of-state, according to a State House News Service report.

The measure, presented by the Cannabis Industry Subcommittee, would allow consumers to purchase cannabis products and use them at the same location. Michael Latulippe, member of the CAB and official with the Massachusetts Patient Advocacy Alliance, said the facilities would “potentially alleviate the need for some parents to go home with cannabis.”

“It also alleviates the issue of interstate trafficking with tourists and people who are going to be coming to the state,” he said in the report. “Requiring them to buy large quantities of cannabis could cause for some problems.”

The proposal, which will likely be incorporated into draft regulations for the legal cannabis industry, includes recommendations for on-site “serving size” and a cut-off recommendation for budtenders to stop serving a consumer. The subcommittee suggests that licenses for on-site consumption be available to businesses for which cannabis sales represent 51 percent of overall sales, but would like to see exceptions for hotels and restaurants who would like to allow cannabis use or use cannabis as an ingredient. The subcommittee also recommended that the regulations include air quality regulations at on-site consumption facilities.

The Market Participation Subcommittee recommended the Cannabis Control Commission include equity provisions into the industry’s licensing and employment processes to “promote and encourage full participation” by communities and individuals disproportionately affected by cannabis prohibition.

The CCC is expected to submit their draft regulations to the secretary of state by Dec. 29.

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DOJ Reminds Cannabis Companies They Cannot Make Bankruptcy Claims

In an article in the American Bankruptcy Institute print journal, the Justice Department has clarified their position on cannabis businesses declaring bankruptcy. Written by Clifford J. White III, director of the Justice Department’s Executive Office for U.S. Trustees, and John Sheahan, an attorney for the DOJ, the article is in addition to an April 2017 memo in which the DOJ reminds bankruptcy trustees to report all cannabis bankruptcy claims and states unequivocally that trustees should not administer bankruptcy claims involving cannabis.

The article was crafted in response to a piece which appeared in the same journal in September and contradicted the April DOJ memo. The authors of that piece pointed out that bankruptcy courts often settle bankruptcy claims involving illegal activity and criminal conspiracies. They cited cases like Enron, Drier LLP, and Madoff Securities, and suggested the DOJ may be tipping the scales in a process that should remain neutral.

The two long-time DOJ officials wrote in their recent rebuttal,

“First, the bankruptcy system may not be used as an instrument in the ongoing commission of a crime and reorganization plans that permit or require continued illegal activity may not be confirmed. Second, bankruptcy trustees and other estate fiduciaries should not be required to administer assets if doing so would cause them to violate federal criminal law. … Rather than make its own marijuana policy, the USTP will continue to enforce the legislative judgment of Congress by preventing the bankruptcy system from being used for purposes that Congress has determined are illegal.”

They go on to clarify that cannabis business suppliers, investors in cannabis businesses, or landlords who rent space to cannabis businesses may not use bankruptcy as a way to correct their balance sheets, and should not expect protection under the bankruptcy code.

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Report: North American Legal Cannabis Sales Expected to Reach $10B This Year

According to an Arcview Market Research analysis, North American cannabis sales are expected to reach $10 billion this year – a 33 percent increase over 2016 totals. Troy Dayton, Arcview Group CEO, compared the industry’s growth to cryptocurrency.

“Aside from cryptocurrency, there is simply no other industry changing as rapidly or as unevenly as the cannabis sector. That makes capturing the data, predicting consumer behavior, and forecasting political developments both extraordinarily difficult and complicated, and one of the most vital tools for investors, entrepreneurs, and regulators trying to make sense of it all.” – Dayton.

The report indicates that the new figures are due in part to Nevada launching adult-use sales earlier than anticipated and Germany rolling out its medical cannabis program.

“Our data shows positive indicators across the board for the legal cannabis industry, in North America and around the globe. The passage of the 2016 ballot initiatives and continued maturation of the existing adult-use markets are the primary drivers of the growth this year.” – Tom Adams, editor-in-chief at Arcview Market Research and principal analyst at BDS Analytics.

The analysts suggest that next year’s figures will exceed the firm’s previous estimates due to Canada’s expected move to a legalized regime, California’s implementation of Prop. 64 and Nevada regulators considering allowing cannabis-related tourism.

Arcview projects that by 2021 the legal cannabis industry will reach $24.5 billion, representing a 28 percent compound annual growth rate.

Editor’s note: This article has been updated for accuracy — a previous version indicated that the $10 billion industry was in North American retail cannabis sales only and not its industry as a whole.

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The fat cola of a tall, outdoor cannabis plant.

Canada’s First Nation Leaders Considering Cannabis Legalization on Their Own Terms

Canada’s First Nation leaders are seeking the right to govern the sale and distribution of cannabis in their communities and are working toward adapting their own tribal rules for the industry that would be unique from federal or provincial rules, according to a Globe and Mail report. During the annual Assembly of First Nations conference, First Nation leaders both supported and opposed the regime, but were united in their desire to self-regulate.

Randall Phillips, chief of the Oneida Nation of the Thames, indicated that his community plans to apply to cultivate cannabis under the legalized regime, noting that there is already a dispensary in his community and the owners don’t believe that they need a license due to treaty rights.

“We will decide who gets it. We will decide how it gets distributed. We will decide how it gets protected and we are going to look at all those things,” he said in the report. “But I don’t need a regulatory framework.”

Ignace Gull, chief of the Attawapiskat Tribe, opposed allowing cannabis for adults, calling it “another drug that people will take advantage of.”

“It will affect the community because we don’t have the resources to deal with this,” she said. “There is no funding to educate or make people aware of what cannabis is all about.”

Ontario Regional Chief Isadore Day suggested that the nations could even decide to raise the legal purchase age “to 23 or 24” because studies have shown that brain development is not complete until a person is in their twenties.

Day said that First Nations should not feel bound to provincial rules and that whatever the nations decide they need to adapt to the changing tide and document health, social, and economic issues.

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The U.S. Capitol Building in Washington D.C. — the seat of the U.S. House and Senate.

Conservative Groups Urge Feds to Protect MMJ Programs

A coalition of conservative groups has sent a letter to federal legislative leaders urging them to preserve the Rohrabacher-Blumenauer Amendment, which protects state-approved medical cannabis programs from federal interference.

The letter’s signatories include the Competitive Enterprise Institute, the American Enterprise Institute, Campaign for Liberty, Center for Freedom and Prosperity, Institute for Liberty, and Taxpayer’s Protection Alliance.

“On behalf of the thousands of Americans whose views and values our organizations represent, we respectfully request that as you consider an end-of-the-year omnibus [fiscal year] 2018 appropriations bill, you preserve a provision that has had long-standing support in Congress and among the nation’s voters which modestly protects those states with legal medical marijuana from federal interference.” – CEI-led letter to Congressional leaders.

The groups argue that “at its heart,” the amendments “guard for our nation’s fragile principle of federalism – the right of states to govern matters within their borders as constituents see fit.”

“Our Constitution wisely limits federal power and leaves most issues of law enforcement to the individual states. As a nation of diverse populations and opinions, state legislatures and local law enforcement must be free to decide how best to use their limited resources to protect public safety, raise funds, and fight crime within their borders. What works for the state of New York may not be appropriate for the people of Texas. Rohrabacher-Blumenauer/Leahy would not prevent the federal government from enforcing federal laws criminalizing the sale or use of marijuana. It merely requires the federal government to enforce those laws in a way that respects states’ authority to legislate in this area.”

The amendment, originally referred to as “Rohrabacher-Farr,” has been approved in every federal budget since 2014.

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Alaska’s Cannabis-Derived Tax Revenues Set Single-Month Record at One-Year Mark

At the one-year mark, recreational cannabis sales taxes in Alaska reached $953,591 in the month of October, setting a new single-month record in the state, according to a Juneau Empire report. The revenues come on 1,004 pounds of flower sold by cultivators to retailers, and another 62 pounds of other plant parts.

Regulators also approved three new licenses for Norvin Perez, who owns Green Valley Enterprises, a farm; Southeast Essentials, a manufacturer; and Glacier Valley Shop, a retail dispensary. According to the report, two farms, two retail stores, and a testing laboratory have also been approved but have not yet passed the final inspections.

The Alaska Alcohol and Marijuana Control Office also issued its first consumer alert last week for edibles produced at Frozen Budz. The alert indicates that the edibles were not tested before being sent to retailers for sale. The manufacturing facility has been suspended while regulators investigate.

“The products are labeled as having 5 mg of THC per serving, but in reality, each serving may have a great deal more THC,” said Erika McConnell, director of the AMCO, in a statement. “Additionally, the products have not been tested for contaminants such as bacteria, fungus, or mold. Consumers who have purchased products made by Frozen Budz should be aware.”

Alaska has, during its program’s first year, collected $4.7 million in cannabis tax revenues.

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Inside of a licensed cannabis grow site near Bellingham, Washington.

Paraguay Legalizes State-Sponsored MMJ Cultivation

Paraguay’s Congress has voted to allow cannabis for medical purposes to be grown in the nation after approving state-sponsored importation of oils in May, according to a report from Reuters. President Horacio Cartes is expected to sign the measure which, if approved, will see the health ministry import seeds for the program. La Vanguardia reports that the Paraguay-derived oils will be made available to patients who qualify for the program for free.

Roberto Cabanas, vice president of Paraguay’s medical cannabis organization, told Reuters that under the current regime his family pays up to $300 a month for imported cannabis oil to treat his daughter’s Dravet syndrome.

According to Prensa Latina, the move amends the nation’s narcotics law to exclude cannabis, its resins, extracts, and tinctures from the dangerous drugs list as well as establishing a national program for the scientific and medical research of cannabis.

The Anti-Drug Secretary will assist the Ministry of Public Health and Social Welfare in administering the program.

Land-locked Paraguay is one of the largest cannabis producers in Latin America, and now joins Argentina, Chile, Colombia, and Peru in legalizing medical cannabis in Latin America. Uruguay remains the only nation in the region to legalize cannabis for adult-use.

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A small boat sails into the harbor of Vancouver, British Columbia, Canada.

British Columbia, Canada Uses Survey to Devise Adult-Use Cannabis Rules

The British Columbia, Canada government has laid out some of the details for how it will regulate adult-use cannabis sales in the province, setting the legal purchasing age at 19 and, like other provinces, leaving distribution to the government via BC Liquor Distribution Branch.

Private companies will be able to run the retail side; however, officials indicated that the details of the retail operation model will be shared “in early 2018.”

Government officials received input from 48,951 British Columbians and 141 local and Indigenous governments as part of their effort to develop the rules. The government surveyed citizens in addition to asking for input. Their telephone survey found that 75 percent of respondents did not actively use cannabis, compared to 44 percent who responded via feedback form; 51 percent of feedback form respondents said they partake. Sixty-seven percent of telephone survey participants indicated they either “strongly” or “somewhat” support legalization, compared to 25 percent who “strongly” or “somewhat” oppose the measure. The feedback form found 77 percent supporting the reforms, compared to 18 percent opposed.

The majority of feedback form respondents, 55 percent, said they don’t anticipate increased cannabis-related driving issues and the same percentage indicated the current criminal code for drug-impaired driving is sufficient; although 90 percent of telephone respondents and 78 percent of feedback form respondents said there should be a “zero tolerance” policy for new drivers convicted of driving under the influence of drugs.

British Columbia joins Quebec, New Brunswick, Manitoba, Newfoundland and Labrador, and Alberta in announcing their provincial rules for the forthcoming adult-use cannabis industry.    

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A camera looks out into a store's aisle from behind a shelf full of 40 oz. bottles of malt liquor.

Study: Alcohol Sales Decreased 15% in Counties with Legal Cannabis

A new study suggests that monthly alcohol sales in U.S. counties where cannabis is legal for recreational use cumulatively dropped 15 percent. The researchers, from the University of Connecticut, Georgia State University, and Universidad del Pacifico in Lima, measured alcohol sales in states with legal cannabis access and compared them to alcohol sales in states without such programs.

“When disaggregating by beer and wine we find that legalization of medical marijuana had a negative effect on corresponding sales by as much as 13.8 and 16.2 percent, respectively.” – Helping Settle the Marijuana and Alcohol Debate: Evidence from Scanner Data.

The study considers a number of factors; controlling for “county economic conditions such as unemployment rate and median household income…total population, percentage of male and Hispanic population, and the share of population by age groups.”

While using scanner data doesn’t paint the whole picture – it doesn’t account for alcohol purchased at bars or otherwise outside of the retail industry and does “not strictly reflect the drinking behavior of the population” – the authors conclude that the study “does not suffer from underreporting issues of self-reported drinking behavior, commonly presented with surveys” and retail scanner data “offers a wider coverage as it contains sales for all products across U.S. counties.”

The authors note that the trend does not seem to be short-lived either, as reductions continued two years after the passage of adult-use laws.

At least one major alcohol distributor has taken notice. In October, Constellation Brands, which distributes Corona beer and Svedka vodka in the U.S., purchased a 9.9 percent stake in Canadian medical cannabis producer Canopy Growth Corp. for $191 million.

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How to Use (or Lose) a Cannabis Trademark

In a nascent industry like cannabis, becoming familiar to customers is essential to sales growth. Marketing experts will tell you that capturing market share begins with awareness. If customers don’t know who you are or what you make, if they don’t notice your products on the shelf or what shops you distribute to, then there is very little chance they’ll buy your widget or goodie. Consumer awareness is fundamental and a trademark is perhaps the most fundamental tool to create it.

At its heart, a trademark is a source identifier. It is the words, images, sounds, smells, or appearance that creates a bridge in consumer’s mind between your products or services and you. Famous trademarks invoke instant recognition. The MGM roar, McDonald’s golden arches, Porsche’s crest, and Google’s rainbow lettering each lead consumers to specific and distinct ideas of products, experiences, and the people or companies that are responsible for creating them.

A trademark is also a corporate asset. For many companies, their trademarks are their most valuable assets. Every dollar spent on marketing, design, networking, and branding directly add to the value of a mark. Valuation is often complicated and can depend on current consumer opinion of the company and its products. It often takes years to build an effective brand, but if carefully cared for it could last forever.

Photo(s) credit: Terry JohnstonStephen Tyler PJsMike Mozart

Legal protections for trademarks benefit society as a whole by creating a bridge between consumers and producers. Consumers form expectations and judgements about products and quality each time they buy or consume a thing. Identifying its source helps them decide whether they want to buy or consume it again, or whom to contact if there is a problem with the product. If two manufacturers use the same trademark the consumer may not know which one actually made the product that they have in their hands.

Trademark infringement depends on consumer confusion. Unauthorized use of a trademark, or even a similar trademark, is most likely illegal under state, federal, and international law if it is likely to cause consumer confusion. Which laws apply depends on your situation and if your trademark is registered.

Trademark registration helps protect the mark by creating an official record that the trademark is valid and that it is owned by an individual or company. Unregistered marks may use the TM symbol anytime to signify claim of ownership, but federally registered marks gain the right to use the stronger ® symbol.

Fighting Infringement

Registration is useful evidence, but it is only a piece of paper and cannot alone protect your trademark rights. Only the trademark owner can defend their exclusive right to use the mark. The government won’t interfere until you ask them to. To maintain your rights, you must continue using the mark as a trademark and prevent unauthorized use.

Think of a trademark registration certificate like a deed to a house with no door. If no one is watching the door, then anyone walking by could come in and stay as long as long as they like. The longer the squatter stays, the harder it will be to get them to leave.  If you notice them soon enough then you may simply be able to tell them to leave; but, if you allow them to stay too long, they might end up gaining squatters rights or even owning the house. If you do not protect your trademark rights, then you risk losing them.

Trademarks are similar. Long-term infringement, if unchecked by the trademark owner, erases the legal protections that the owner once had. Remember, a trademark is primarily a source identifier. If more than one source uses the same trademark, or uses a trademark as a generic term, then it ceases to function as a trademark.

Photo credit: Camilo Rueda López 

One of the most significant business risks of trademark infringement is that you have no control over the product. The infringer might make an inferior product, sloppy advertising, or worse they might negligently sell tainted product that could harm consumers. The shopper won’t always know the difference and will associate your brand with their dangerous or substandard product. Combating negative word of mouth or correcting a few bad headlines can be nearly impossible. The damage is already done.

Keeping watch for a would-be infringer can be very difficult. Each year there are over 20,000 new food and beverage products and over 40,000 new trademark registrations submitted to the U.S. Patent and Trademark Office. It can be incredibly difficult to find and fight each instance of infringement. A Google® search or keyword search of a government trademark database might turn up results, but could just as easily miss an alternate spelling or the confusingly similar look of another logo.

Many companies include the cost of professional infringement tracking services in their marketing budget on a monthly or quarterly basis to ensure national protection. Those services vary in cost and quality; many are nothing more than a cleaver set of algorithms that can easily miss things if they aren’t set up perfectly.

If you learn of another company using a confusing or identical trademark, contact your attorney as soon as you can. Most infringement lawsuits are resolved through negotiations long before they ever make it to court. Starting early makes friendly negotiation easier because ownership rights are clearer and the parties are less entrenched in their minds and marketing budgets.

Genericide

Another common death for a trademark is “genericide.” Genericide refers to the linguistic change over time of a trademark into a generic word. Once a word is the generic term for a thing it is no longer protectable as a trademark. Some famous examples of now dead trademarks include aspirin, cellophane, escalator, laundromat, thermos, and trampoline. Each of those words were once valuable corporate assets that lost all value because executives failed to protect them. Kleenex® has famously spent millions fighting against genericide of its facial tissues trademark for years.

To protect against genericide of your trademark, you should employ multiple tactics to cover every angle within your marketing plan.

First, consider pairing your trademark with a generic descriptor, such as “Kleenex® Facial Tissue” or “Delta® Airlines.” In each of these examples, only the first word is the trademark, the words that follow merely describe what product or service the trademark is used with. Promoting general terms will differentiate your mark from your competitors, help consumers identify your brand, and decrease colloquial generic use.

Photo credit: Shango Los

Second, establish internal policies on how your employees and marketing team should use the trademark. Generally, you should only ever use your trademark as a trademark, i.e. as a capitalized proper noun with the proper trademark symbol: TM, ®, or SM. Maintaining strict usage guidelines will keep your team from slipping into bad habits that could harm the brand over time.

Third, product diversification will help add meaning to your mark. Generic terms merely describe a thing. Offering different product types bearing your trademark will fight genericide by associating the trademark with diversified products that could not possibly be described with a single generic term. For instance, if Kleenex® had sold facial tissues, toilet paper, and paper towels then they would never have needed to defend their brand from generic usage.

The Takeaway

Companies go to incredible efforts to build and promote their trademarked brands. Protecting and defending those trademarks is a necessary but invisible part of that effort. Putting a little time and effort into preventing unauthorized or confusing use of your trademark could save you hundreds of thousands in legal fees and lost revenues down the road. Always use your trademark “as a trademark,” and never accept unauthorized use that could confuse consumers. Proactively protecting your brand builds trademark value and will keep your mark healthy for generations.

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A green and leafy cannabis plant lilted slightly to the right.

U.S. Surgeon General Wants More FDA MMJ Studies

At an appearance at the National Black Caucus of State Legislators annual conference, U.S. Surgeon General Jerome Adams, the former Indiana health commissioner, said that while he believes medical cannabis “should be like any other [pharmaceutical] drug” he does not support recreational legalization, according to a News and Tribune report.

Adams suggests the Food and Drug Administration should “vet it” and “study it,” noting that the agency has approved some cannabis derivatives, including CBD oil. Adams’ primary opposition to recreational use seems to be the act of smoking and he said he doesn’t want to see an “epidemic of lung cancer” 10 years down the road from people smoking cannabis for either medical or recreational purposes.

“So while I want to make sure we can get the ingredients of medical marijuana appropriately derived so that folks can access treatment, I also have concerns about us encouraging folks to go out and smoke because there’s unintended consequences.” – Surgeon General Adams

Adams pointed out that the two top health issues among Americans is obesity and smoking and he couldn’t tell people not to smoke cigarettes but say that smoking a joint isn’t harmful.

The Surgeon General also indicated he had recently met with FDA Commissioner Scott Gottlieb to discuss non-opioid treatments for pain; however, he did not indicate whether those discussions included medical cannabis access.

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A woman walks into a Shoppers Drug Mart pharmacy, a department store chain in Canada.

Canadian MMJ Company Strikes Deal with Nation’s Largest Pharmacy Firm to Sell Cannabis Products

Canadian medical cannabis company Aphria Inc. and the nation’s largest provider of pharmacy products and services, Shoppers Drug Mart, have entered into an agreement that will see the drug store chain sell Aphria-branded products through their online portal.

“We have an impeccable record cultivating and producing high-quality, medical-grade cannabis,” said Vic Neufeld, CEO of Aphria, in a press release. “These traits make us a strong partner for an organization looking to serve and support Canadian patients.”

According to a Canadian Press report, the five-year deal will see Shoppers Drug Mart sell four strains of flower in two different quantities and four cannabis-derived oils.

Shoppers Drug Mart Spokeswoman Catherine Thomas said the agreement solidifies the company’s view that pharmacies and pharmacists should play a role in medical cannabis distribution.

“As the federal and provincial governments finalize their respective cannabis frameworks, we remain optimistic that they will allow pharmacists in stores, in communities to apply their professional care to medical cannabis patients,” she said in the report.

The deal still needs to be approved by Health Canada and relies on the agency licensing Shoppers Drug Mart parent company Loblaw Companies Ltd. to distribute medical cannabis products.

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The leafy ceiling of a large, commercial cannabis grow in Washington state.

Michigan MMJ Operators Allowed to Continue Business While Licensing Proceeds

Michigan Gov. Rick Snyder has approved the state’s emergency medical cannabis rules which allow current dispensaries approved by their municipality to stay open after Dec. 15 without risk of being shut down. The rules will allow them to stay open until they are either approved or denied a license by the state.

According to the measure text, the emergency rules are necessary to “preserve the public health, safety, or welfare for access to safe sources of marihuana for medical use.” Current operators will have to apply with the state, along with potential new market hopefuls.

Under the rules, those hopefuls must be flush with start-up capital. Depending on grow site size, cultivators will have to prove they have between $150,000 and $500,000 in capital, while dispensaries must show $300,000 in capital, and testing and transporters must prove $200,000 in capital.

Application fees run $6,000 and applicants must have $100,000 in insurance.

The rules also place limits on maximum THC allowed in infused products, setting the per-serving bar for edibles, such as baked goods, candies, and beverages at 50 milligrams and 500 milligrams per-container. THC concentration for topicals is capped at 6 percent by volume, and other high-potency products, such as transdermal patches, capsules, and suppositories, are capped at 1,000 milligrams of THC per container.

Snyder signed the industry reform package in Sept. 2016 in an effort to move the state’s industry from a “gray market” to a more comprehensive and regulated regime.

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Review: HBK Genetics Flower Products

East of Santa Cruz in the Central California inland area you will find the garden of HBK Genetics. Eric Minor has been growing cannabis medicine as long as he can remember. He is a second generation grower who picked up his dad’s craft in his late teens and has continued his family’s strong tradition. Insiders always get a chuckle knowing that HBK stands for Half Baked Kids. Not only does HBK focus on clean, exceptional flower, but because Eric Minor’s motivations have always been towards healing, they also produce an award winning pain cream and lip balm.

As HBK Genetics, Eric and his team have brought home several awards including the 2015 Cali Dep Fest 1st Place award for their Chem/OG, Best CBD Product at the 2015 HempCon Cup, and 2nd and 3rd place in CBD topicals at Emerald Cup in 2014.

Eric grew up on the San Diego border and, in addition to being a successful and respected grower, has played Division 1 competitive paintball.

Unlike many breeders who discover their perfect uber-male and cross those genetics across their whole range of females, HBK selects new males and mothers for each line they develop. For this review, we obtained an array of their flowers but we will focus on HBK’s Black Columbian, Diamond Master, Cheddar Jack and Dawg Walker.

One of the first things the review team noticed was the major differences between each of the strains’ terpene profiles. So often, when breeders use an uber-male or rely on bottled nutrients, flowers within a line can smell and taste similar. Not here. Each of the strains were distinct both in intensity and variety of terpenes.

The Black Columbian had one of the most serene pinene smells we have come across. While we could not determine which terpenes were backing the pinene, it was clearly an array of lesser terpenes backing up and helping set the stage for the full-chest bravado of a solid pinene cannabis hit. The flower opens the lungs and offers an immediate sense of hopefulness and calm, along with an ever-evolving, body-centered stone. Everyone involved with the review was surprised to find so much pinene in an equatorial strain and the backing of apple and vanilla left everyone with a fresh pallet and a happy, ready-to-go-hiking vibe.

The HBK Dawg Walker was also a fresh-tasting hit but, instead of pinene, the profile was primarily the lemon of the Albert Walker line and the skunk of the various Dawg lines. The funky, sweet humus smell alerted most everyone that this was going to be a heavy hitter, but the lemon counterpart kept the terpene profile from going too far into pure skunk. The high was certainly of the joyful dopiness of old-school skunks but with a motivating and pleasant-mindedness of the prevalent limonene.

The whole review crew was surprised that the HBK Cheddar Jack wasn’t really a cheesy hitter. It had far more in common with the Black Columbian, actually, in that the pinene was all forward. The Black Columbian had a really complex terpene profile behind the pinene whereas the Cheddar Jack was pretty much all pinene. That said, we all love pinene because it makes humans feel elated and safe and that was a great feeling from the smoke. The Cheddar Jack is also a 1:1, so the CBD component was there to moderate the intense pinene euphoria.

One of the pleasant surprises we noticed is that the HBK samples we tried were not inundated with myrcene like much of the industry’s commercial cultivars are. Not only were we all able to stay functional and upbeat, but it was really enjoyable to experience some cannabis that was so unlike what is on most dispensary shelves.

When asked about his motivations for dedicating his life’s work to growing cannabis, Eric says, “I grow because it is what I’m meant to do. I love the job every single day, day in and day out, no matter what. No other plant has such a diverse array of smell, structure, size, color and effect as cannabis does, in my opinion. It’s just a pleasure to have the opportunity to work with the plant every day.” If you want to hear more from Eric, you can watch his great interview with Kevin Jodrey as part of the Wonderland Nursery Seed Series here.

You can find HBK Genetics flowers at Wonderland Nursery, Healing Harvest Farms and at cannabis events throughout California. You can score HBK seeds at GetSeedsRightHere.com or through the Get Seeds Instagram. If you’d like to learn more about HBK Genetics, follow them on Instagram.

Would you like more attention for your own cannabis product? You can email Shango Los at HotSpot@ShapingFire.com to find out about current opportunities.

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The inner harbor of Baltimore, Maryland.

Maryland Dispensaries Begin Selling to Patients

Maryland’s first medical cannabis dispensaries opened Friday in Rockville and Cumberland – after nearly five years of bureaucracy and delays, the Washington Post reports. Five more dispensaries told the Post they expect to open shortly.

Prices are sky-high. Allegany Medical Marijuana Dispensary, which opened in Cumberland, has indicated the price for an ounce is set at $680, but manager Sajal Roy said he expects the price to be reduced to about $560 next month. Wellness Institute of Maryland Manager Michael Klein said the Frederick dispensary would sell ounces between $440 and $520. The dispensary plans to open today. Charlie Mattingly, manager of Southern Maryland Relief in Mechanicsville, said they plan to start pricing at $400 per ounce but expect to be “on par” with the illicit market within six months.

“I just need my foot in the door; I’m not trying to gouge anybody in the first year . . . Every new market and new state starts a little bit high.” – Mattingly to the Post.

According to the report, Mattingly expected to open Southern Maryland Relief on Sunday; however, phone calls to the number listed on their Facebook page went unanswered. Peninsula Alternative Health on the Eastern Shore told the Post they planned on opening today; however, that could not be confirmed by Ganjapreneur.

The nascent state market could also be subject to more changes before current operators are stabilized as members of the Legislative Black Caucus announced last month they were drafting a bill to award 10 new medical cannabis cultivator and processor licenses for African-American entrepreneurs after they were shut out of the companies awarded licenses. Two would-be medical cannabis companies are also suing the state, accusing officials of arbitrarily denying them licenses.

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